Silvaco Updates Revenue Outlook for 2024 Amid Challenges

Silvaco Announces Preliminary Revenue Results for Q3

Silvaco Group, Inc. (Nasdaq: SVCO), a leader in TCAD, EDA software, and SIP solutions that empower semiconductor design and digital twin modeling through innovative AI software, has shared its preliminary unaudited revenue results for the third quarter of 2024. Furthermore, the company has provided an update regarding its overall outlook for the full year.

Revenue Expectations and Updates

During the third quarter of 2024, Silvaco anticipates its total revenue to be around $11.0 million. It’s important to note that this figure excludes a substantial order valued at approximately $5.0 million, which, while expected in Q3, will be recorded in the fourth quarter instead. This anticipated revenue from the order will be factored into the company's overall guidance for the year.

Babak Taheri, Silvaco’s Chief Executive Officer, observed a decline in orders, particularly from Asia, due to various economic challenges, including the complexities surrounding U.S.-China trade relations. Accordingly, the company aims to set realistic expectations for the remaining months of the year while remaining assured of its long-term strategy aimed at achieving double-digit growth in revenue.

Revised Full Year 2024 Guidance

As the company assesses current market conditions, Silvaco has updated its full-year guidance for 2024, including:

• Gross Bookings: The previous estimate of $67 million to $71 million has been adjusted to a new range of $64 million to $67 million.
• Revenue: Originally projected between $63 million to $66 million, now revised to $60 million to $63 million.
• Year-over-Year Growth: Previously expected at 16% to 22%, now updated to a range of 10% to 16%.
• Non-GAAP Gross Margin: Expected to range between 85% to 87%, down from earlier estimates of 85% to 89%.
• Non-GAAP Operating Income: The new outlook is set between $5.0 million and $8.0 million, revised from $8.0 million to $11.0 million.

Insights from the Conference Call

Silvaco will present its full earnings results and discuss these developments during a scheduled conference call. Interested parties can listen to the earnings presentation to gain further insights into the company's operations and financial standing.

Upcoming Conference Call Details

All stakeholders are invited to join the conference call on November 12, 2024, at 5:00 p.m. Eastern time. The accompanying press release will include a comprehensive summary of results and additional financial information.

About Silvaco

Silvaco delivers innovative software solutions that are integral to semiconductor and photonics developments across various industries, including automotive, high-performance compute, and 5G/6G technologies. Their offerings are designed to streamline complex System on Chip (SoC) designs. With a global footprint that includes offices across North America, Europe, and Asia, Silvaco is well-positioned to meet the evolving needs of the semiconductor market.

Frequently Asked Questions

What are Silvaco's preliminary revenue results for Q3 2024?

Silvaco anticipates total revenue of approximately $11.0 million for Q3 2024, excluding a significant order expected in the fourth quarter.

How did the economic climate affect Silvaco's performance?

The company experienced a decline in orders, particularly from Asia, primarily due to economic challenges and trade relations stresses.

What is the updated full-year guidance for Silvaco?

Silvaco revised its full-year guidance for 2024, lowering estimates for gross bookings, revenue, and year-over-year growth compared to earlier projections.

When is the next conference call for Silvaco?

The conference call discussing Q3 results is set for November 12, 2024, at 5:00 p.m. Eastern time.

What solutions does Silvaco provide?

Silvaco offers TCAD, EDA software, and SIP solutions that facilitate semiconductor design and digital twin modeling, serving various industry applications.

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