Silvaco Group (NASDAQ:SVCO) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Silvaco Group (NASDAQ:SVCO) posted its earnings results on Thursday. The company reported ($0.02) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.05) by $0.03, FiscalAI reports. Silvaco Group had a negative net margin of 41.65% and a negative return on equity of 21.85%. The firm had revenue of $17.76 million during the quarter, compared to analysts’ expectations of $17.04 million.

Here are the key takeaways from Silvaco Group’s conference call:

• Company expects non-GAAP operating profitability in Q2 (first time since Q4 2024) with guidance of roughly $18M revenue, ~88% non-GAAP gross margin, and non-GAAP OpEx around $15.5M ±5%.
• FTCO (AI-driven manufacturing) momentum — secured a second new FTCO customer in consecutive quarters, received an upsell from an existing customer, and sees a pipeline across governments, equipment makers, and power customers with another close expected in Q2.
• Improving financials and liquidity — Q1 revenue and bookings grew 26% YoY, non-GAAP operating loss fell to $0.47M, unrestricted cash increased sequentially (cash & equivalents $10.9M), and management expects positive operating cash flow by Q3 after adjusting for a one-time $8.3M litigation payment and severance.
• Product-line strength — TCAD and IP — TCAD bookings were $10.5M (+49% YoY) driven by FTCO; IP grew strongly year-over-year due to the Mixel acquisition, pipeline has roughly doubled year-over-year and is expected to accelerate sequentially into Q2.
• EDA softness and restructuring — EDA bookings/revenue declined in Q1; management is reallocating resources to core EDA products (Jivaro, Utmost) and rolling out AI-driven improvements (Utmost ~10x runtime gains) with the expectation of short-term stability then a return to growth.

Silvaco Group Stock Down 4.7%

Shares of Silvaco Group stock traded down $0.57 during trading hours on Friday, reaching $11.49. 530,699 shares of the company’s stock were exchanged, compared to its average volume of 363,815. Silvaco Group has a 1 year low of $3.07 and a 1 year high of $12.81. The company has a market capitalization of $361.25 million, a P/E ratio of -12.35 and a beta of 0.88. The business has a fifty day moving average of $6.90 and a two-hundred day moving average of $5.34.

Institutional Investors Weigh In On Silvaco Group

Hedge funds have recently modified their holdings of the company. Raymond James Financial Inc. purchased a new stake in shares of Silvaco Group in the second quarter valued at about $38,000. Wells Fargo & Company MN grew its holdings in shares of Silvaco Group by 51.2% in the fourth quarter. Wells Fargo & Company MN now owns 9,093 shares of the company’s stock valued at $37,000 after purchasing an additional 3,079 shares during the period. HighTower Advisors LLC purchased a new stake in shares of Silvaco Group in the fourth quarter valued at about $41,000. Strs Ohio purchased a new stake in shares of Silvaco Group in the first quarter valued at about $50,000. Finally, JPMorgan Chase & Co. grew its holdings in shares of Silvaco Group by 27.3% in the second quarter. JPMorgan Chase & Co. now owns 13,483 shares of the company’s stock valued at $64,000 after purchasing an additional 2,895 shares during the period.

Analyst Ratings Changes

Several equities analysts recently issued reports on the stock. Needham & Company LLC reiterated a “buy” rating and issued a $10.00 target price on shares of Silvaco Group in a research note on Monday, March 16th. Weiss Ratings upgraded shares of Silvaco Group from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Friday, April 24th. Rosenblatt Securities upped their price objective on shares of Silvaco Group from $9.00 to $14.00 and gave the stock a “buy” rating in a research report on Friday. Wall Street Zen upgraded shares of Silvaco Group from a “sell” rating to a “hold” rating in a research report on Saturday, March 14th. Finally, TD Cowen dropped their target price on shares of Silvaco Group from $8.00 to $6.00 and set a “buy” rating for the company in a report on Friday, March 13th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $10.00.

Silvaco Group Company Profile

Silvaco Group, Inc is a provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) solutions. Founded in 1984 and headquartered in Santa Clara, California, the company offers a suite of tools for process and device simulation, circuit design, verification, and physical implementation. Silvaco’s core product lines include technology computer-aided design (TCAD) for process modeling, SPICE circuit simulators for analog and digital analysis, and layout and parasitic extraction tools for physical verification.

In addition to its EDA software, Silvaco delivers semiconductor IP in areas such as memory compilers, interface IP (including USB, PCI Express and DDR), and embedded analog/mixed-signal cores.