Silvaco (SVCO, Financial) has embarked on a four-year strategic partnership with Professor Jin Jang and the Advanced Display Research Center at Kyung Hee University, South Korea, starting February 1. This collaboration aims to revolutionize display technology by integrating FTCO with AI-driven Digital Twin modeling.
Silvaco plans to invest in Ph.D. students at the university while closely working with Prof. Jang's research team. The focus is on enhancing emerging display technologies like Micro-LED and OLED through advanced measurement data gathering. This data, combined with Silvaco’s simulation expertise and FTCO solution platform, will form a comprehensive digital representation of display processes, devices, and circuits.
The company's role involves executing TCAD simulations and constructing a complete FTCO flow using Victory TCAD simulators, along with Victory DoE and Victory Analytics. These efforts, in tandem with their EDA tools such as SmartSpice and UTMOST IV, aim to develop an FTCO-based Digital Twin. This model will allow fab engineers to accurately simulate process variations' effects on device and circuit performance, significantly speeding up optimization cycles in manufacturing.
SVCO Key Business Developments
Release Date: March 05, 2025
- Gross Bookings (FY 2024): $65.8 million, a 13% increase from 2023.
- Revenue (FY 2024): $59.7 million, a 10% increase from 2023.
- Non-GAAP Gross Margin (FY 2024): 86%, up from 83% in 2023.
- Non-GAAP Operating Income (FY 2024): $5.5 million, compared to $4.4 million in 2023.
- Non-GAAP Net Income Per Share (FY 2024): $0.25, compared to $0.17 in 2023.
- Gross Bookings (Q4 2024): $20.3 million, a 30% increase year-over-year.
- Revenue (Q4 2024): $17.9 million, a 43% increase year-over-year.
- Non-GAAP Operating Expenses (Q4 2024): $12.8 million, up from $11.1 million in Q4 2023.
- Non-GAAP Operating Income (Q4 2024): $3.1 million, up from a loss of $1.3 million in Q4 2023.
- Non-GAAP Net Income (Q4 2024): $4.3 million, compared to a non-GAAP net loss of $1.6 million in Q4 2023.
- Diluted Non-GAAP Net Income Per Share (Q4 2024): $0.15, an improvement from a non-GAAP net loss of $0.08 in Q4 2023.
- Cash, Cash Equivalents, and Marketable Securities (End of Q4 2024): $87.5 million.
- TCAD Bookings (Q4 2024): $14.3 million, up 68% year-over-year.
- EDA Bookings (Q4 2024): $5.5 million, up 31% year-over-year.
- SIP Bookings (Q4 2024): $0.6 million, down 79% year-over-year.
- Non-GAAP Gross Margin (Q4 2024): 89%, up from 79% in Q4 2023.
- Revenue Guidance (FY 2025): $66 million to $72 million, representing an 11% to 21% increase from 2024.
- Non-GAAP Gross Margin Guidance (FY 2025): 84% to 89%.
- Non-GAAP Operating Income Guidance (FY 2025): $2 million to $7 million.
- Non-GAAP Net Income Per Share Guidance (FY 2025): $0.07 to $0.19.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Silvaco Group Inc (SVCO, Financial) reported a 13% increase in gross bookings for fiscal year 2024, reaching $65.8 million.
- Revenue for 2024 increased by 10% to $59.7 million, with a non-GAAP gross margin improvement from 83% to 86%.
- The company achieved a record quarterly revenue of $17.9 million in Q4 2024, marking a 43% year-over-year increase.
- Silvaco expanded its AI-based digital-twin modeling platform and announced a strategic partnership with Micron Global to enhance its market reach.
- The acquisition of Cadence's OPC product line is expected to expand Silvaco's SAM by $357 million, strengthening its position in advanced memory manufacturing and foundry operations.
Negative Points
- Non-GAAP operating income for 2025 is projected to decrease, with a range of $2 million to $7 million compared to $6.7 million in 2024.
- The acquisition of Cadence's OPC product line is expected to have a modest revenue impact in 2025 due to ASC 606 timing complexities.
- SIP bookings decreased by 79% in Q4 2024, reflecting challenges in renewing a key strategic resale agreement and order slowdowns in APAC.
- Operating expenses increased due to higher G&A costs related to being a public company and continued investment in R&D and sales.
- Revenue contribution from the China region is expected to remain flat or slightly decrease in 2025, maintaining the 15% to 20% range.
