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

Silvaco Group (NASDAQ:SVCO) released its quarterly earnings data on Thursday. The company reported ($0.02) EPS for the quarter, topping the consensus estimate of ($0.05) by $0.03, FiscalAI reports. The business had revenue of $17.76 million for the quarter, compared to analyst estimates of $17.04 million. Silvaco Group had a negative net margin of 41.65% and a negative return on equity of 21.85%.

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 Trading Down 4.7%

Shares of Silvaco Group stock traded down $0.57 during mid-day trading on Friday, hitting $11.49. 530,699 shares of the stock were exchanged, compared to its average volume of 363,815. Silvaco Group has a twelve month low of $3.07 and a twelve month high of $12.81. The stock has a market capitalization of $361.25 million, a price-to-earnings ratio of -12.35 and a beta of 0.88. The company has a 50-day simple moving average of $6.90 and a 200 day simple moving average of $5.34.

Analysts Set New Price Targets

A number of brokerages have issued reports on SVCO. 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. Wall Street Zen upgraded shares of Silvaco Group from a “sell” rating to a “hold” rating in a research report on Saturday, March 14th. Needham & Company LLC restated a “buy” rating and set a $10.00 target price on shares of Silvaco Group in a research report on Monday, March 16th. TD Cowen cut their target price on shares of Silvaco Group from $8.00 to $6.00 and set a “buy” rating for the company in a research report on Friday, March 13th. Finally, Rosenblatt Securities lifted their target price on shares of Silvaco Group from $9.00 to $14.00 and gave the stock a “buy” rating in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $10.00.

Institutional Investors Weigh In On Silvaco Group

Several hedge funds have recently modified their holdings of SVCO. Raymond James Financial Inc. purchased a new position in Silvaco Group in the second quarter valued at approximately $38,000. Wells Fargo & Company MN raised its holdings in 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 buying an additional 3,079 shares during the period. HighTower Advisors LLC purchased a new position in Silvaco Group in the fourth quarter valued at approximately $41,000. Strs Ohio purchased a new position in Silvaco Group in the first quarter valued at approximately $50,000. Finally, JPMorgan Chase & Co. raised its holdings in 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 buying an additional 2,895 shares during the period.

About Silvaco Group

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.