Silvaco Group (NASDAQ:SVCO) Posts 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 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 the consensus estimate 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 SVCO traded down $0.57 during mid-day trading on Friday, hitting $11.49. The company had a trading volume of 530,699 shares, compared to its average volume of 363,815. The business’s 50-day simple moving average is $6.90 and its 200-day simple moving average is $5.34. Silvaco Group has a 1-year low of $3.07 and a 1-year high of $12.81. The stock has a market cap of $361.25 million, a PE ratio of -12.35 and a beta of 0.88.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of SVCO. Wells Fargo & Company MN lifted its position in Silvaco Group by 51.2% during 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 in the last quarter. Raymond James Financial Inc. acquired a new position in Silvaco Group during the second quarter valued at approximately $38,000. HighTower Advisors LLC acquired a new position in Silvaco Group during the fourth quarter valued at approximately $41,000. Strs Ohio acquired a new position in Silvaco Group during the first quarter valued at approximately $50,000. Finally, Squarepoint Ops LLC acquired a new position in Silvaco Group during the fourth quarter valued at approximately $57,000.

Analyst Ratings Changes

Several research firms have weighed in on SVCO. Weiss Ratings upgraded shares of Silvaco Group from a “sell (e+)” rating to a “sell (d-)” rating in a report on Friday, April 24th. Wall Street Zen upgraded shares of Silvaco Group from a “sell” rating to a “hold” rating in a report on Saturday, March 14th. Rosenblatt Securities raised their target price on shares of Silvaco Group from $9.00 to $14.00 and gave the company a “buy” rating in a report on Friday. 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. Finally, Needham & Company LLC restated a “buy” rating and set a $10.00 target price on shares of Silvaco Group in a report on Monday, March 16th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Silvaco Group presently has an average rating of “Moderate Buy” and a consensus 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.