Expanded TCAD and digital twin modeling platform to planar CMOS, FinFET and​ advanced CMOS technologies

Signed 14 new customers as well as expanded our relationship with several existing customers across key markets including power, automotive, memory, foundry, and display.

In the first week of Q4, received a $5.0 million follow-on order for FTCO™ digital-twin modeling product from a strategic memory customer

SANTA CLARA, Calif., Nov. 12, 2024 (GLOBE NEWSWIRE) -- Silvaco Group, Inc. (Nasdaq: SVCO) (“Silvaco” or the “Company”), a provider of TCAD, EDA software, and SIP solutions that enable innovative semiconductor design and digital twin modeling through AI software and automation, today announced its third quarter 2024 results.

"Our strategic focus on driving innovation through AI-enabled semiconductor design for advanced CMOS geometries and power semiconductors, which includes digital twin modeling, positions us well for long-term growth” said Dr. Babak Taheri, Silvaco’s Chief Executive Officer. Dr. Taheri continued “We believe our strong business fundamentals and innovative product lines will continue to drive our customer momentum and growth trajectory.”

Commenting on the financial results and outlook, Ryan Benton, Silvaco’s Chief Financial Officer, added, “While Q3 revenues were impacted by the shift of a substantial $5.0 million order received in the first week of Q4, we remain confident in our ability to achieve our revised full-year financial targets due to strong customer demand. We expect to regain momentum and execute on our long-term strategy by expanding our footprint across the key end markets as well as executing on the right strategic inorganic opportunities.”

Business Highlights

• Acquired 14 new customers representing 14% of bookings and 11% of revenue for Q3.

• Expanded Victory TCAD and Digital Twin Modeling Platform to Planar CMOS, FinFET and advanced CMOS technologies. Newly released TCAD platform has been utilized by a strategic customer for the past few years and is now available for broad market adoption.

• Appointed Candace Jackson as SVP, General Counsel and Corporate Secretary.

• Silvaco was added to the Russell 2000^®, Russell 3000^®, and Russell Microcap^® indexes in September 2024.

• Achieved ISO9001 Certification of our TCAD, EDA, and IP Products in October 2024.
  

In the first week of Q4, received a $5.0 million follow-on order for FTCO™ digital-twin modeling product from a strategic memory customer. This order extends the footprint of our FTCO™ product line and further validates our strategic focus on this unique technology.

Third Quarter 2024 Financial Results

GAAP Financial Results

• Revenue of $11.0 million, down 27% year-over-year and down 27% quarter-over-quarter impacted by the shift of the $5.0 million order received in the fourth quarter and the delay in certain orders principally from China.
  • TCAD revenue of $6.5 million, down 18% year-over-year.
  • EDA revenue of $2.6 million, down 42% year-over-year.
  • SIP revenue of $1.8 million, down 26% year-over-year.
• GAAP gross profit and GAAP gross margin were $8.2 million and 75%, respectively, which includes the impact of $313,000 stock-based compensation expense and $249,000 amortization of purchased intangibles, down from $12.7 million and 85% year over year.
• GAAP net loss of $(6.6) million, compared to a GAAP net income of $1.4 million in Q3 2023.
• GAAP basic and diluted net loss per share of $(0.23).
• As of September 30, 2024, cash and cash equivalents and marketable securities totaled $100.4 million.

Key Operating Indicators and Non-GAAP Financial Results:

• Gross bookings were $9.9 million, down 21% year-over-year.
• As of September 30, 2024, remaining performance obligation balance of $32.6 million, 48% of which is expected to be recognized as revenue in the next 12 months.
• Non-GAAP gross profit and non-GAAP gross margin were $8.7 million and 80%, respectively, down from $12.7 million and 85% year over year.
• Non-GAAP net loss of $(1.8) million, compared to Non-GAAP net income of $2.3 million in Q3 2023.
• Non-GAAP diluted net loss per share of $(0.06).
  

For a discussion of the non-GAAP metrics presented in this press release, as well as a reconciliation of non-GAAP metrics to the nearest comparable GAAP metric, see “Discussion of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliation” in the accompanying tables below.

Supplementary materials to this press release, including our third quarter 2024 financial results, can be found at https://investors.silvaco.com/financial-information/quarterly-results.

Fourth Quarter and Full Year 2024 Financial Outlook

As of November 12, 2024, Silvaco is providing guidance for its fourth quarter of 2024 and its full-year 2024, which represents Silvaco’s current estimates on its operations and financial results. The financial information below represents forward-looking financial information and in some instances forward-looking, non-GAAP financial information, including estimates of non-GAAP gross margin and non-GAAP operating income. GAAP gross margin is the most comparable GAAP measure to non-GAAP gross margin, and GAAP operating income is the most comparable GAAP measure to non-GAAP operating income. Non-GAAP operating income differs from GAAP operating income in that it excludes items such as certain transaction-related costs, IPO preparation costs, estimated acquisition-related litigation claims and costs, stock-based compensation, amortization of acquired intangible assets, impairment charges and executive severance costs. Silvaco is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort. Therefore, Silvaco has not provided guidance for GAAP gross margin or GAAP operating income or a reconciliation of the forward-looking non-GAAP gross margin or non-GAAP operating income guidance to GAAP gross margin or GAAP operating income, respectively. However, it is important to note that these excluded items could be material to our results computed in accordance with GAAP in future periods.

Based on current business trends and conditions, the Company expects for fourth quarter 2024 the following:

• Gross bookings in the range of $18.5 million to $21.5 million, which would represent a 19% to 38% increase from the fourth quarter of 2023.

• Revenue in the range of $18.1 million to $21.2 million, which would represent a 45% to 70% increase from the fourth quarter of 2023.

• Non-GAAP gross margin to be in the range of 85% to 87%, increased from 79% in the fourth quarter of 2023.

• Non-GAAP operating income in the range of $2.6 million to $5.6 million, increased from the loss of $1.6 million in the fourth quarter of 2023.
  

For full year 2024, the Company expects:

• Gross bookings of $64.0 million to $67.0 million, which would represent a 10% to 15% increase from 2023.

• Revenue of $60.0 million to $63.0 million, which would represent a 11% to 16% increase from 2023.

• Non-GAAP gross margin to be in the range of 85% to 87%, increased from 83% in 2023.

• Non-GAAP operating income of $5.0 million to $8.0 million, which would represent a 14% to 82% increase from 2023.
  

Q3 2024 Conference Call Details

A press release highlighting the Company’s results along with supplemental financial results will be available at https://investors.silvaco.com/ along with an earnings presentation to accompany management’s prepared remarks on the day of the conference call, after market close. An archived replay of the conference call will be available on this website for a limited time after the call. Participants who want to join the call and ask a question may register for the call here to receive the dial-in numbers and unique PIN.

Date: Tuesday, November 12, 2024
Time: 5:00 p.m. Eastern time
Webcast: Here (live and replay)