Silvaco Group (NASDAQ:SVCO) Issues Quarterly Earnings Results

Silvaco Group (NASDAQ:SVCO) posted its earnings results on Wednesday. The company reported ($0.04) EPS for the quarter, missing the consensus estimate of $0.01 by ($0.05), FiscalAI reports. The business had revenue of $16.29 million during the quarter, compared to the consensus estimate of $17.08 million. Silvaco Group had a negative return on equity of 15.29% and a negative net margin of 30.43%.

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

• Bookings and customer wins strengthened: Q3 bookings were $19.3 million, including record TCAD bookings of $10.3 million, up 89% year over year. Silvaco cited a major new tier 1 FTCO customer and four tier 1 Jivaro Pro wins.
• Management forecast continued growth: Q4 revenue is guided to a record $22 million at the midpoint, up 21% year over year, and the company expects mid-to-high teens revenue growth in 2027. Executives said FTCO, IP, and improving EDA demand support that outlook.
• Q3 revenue missed expectations: Revenue was $16.3 million, slightly below the midpoint of guidance, as IP milestones shifted into Q4. The company reported a $4.6 million GAAP net loss and a $1.3 million non-GAAP net loss.
• Cost reductions and cash flow improved: GAAP operating expenses were down nearly 25% year over year, and cash used in operations fell to $0.8 million from $5.5 million in Q2. Management expects operating expenses to grow more slowly than revenue in 2027, supporting profitability gains.

Silvaco Group Trading Down 4.7%

SVCO traded down $0.29 during trading on Wednesday, hitting $5.82. The stock had a trading volume of 326,179 shares, compared to its average volume of 432,065. The firm has a market cap of $197.24 million, a PE ratio of -8.08 and a beta of 0.64. Silvaco Group has a 12 month low of $3.07 and a 12 month high of $14.39. The company has a 50 day simple moving average of $7.14 and a 200-day simple moving average of $7.68.

Analyst Ratings Changes

A number of research analysts have recently commented on SVCO shares. Weiss Ratings reissued a “sell (d-)” rating on shares of Silvaco Group in a report on Tuesday, October 6th. Rosenblatt Securities restated a “buy” rating and issued a $14.00 target price on shares of Silvaco Group in a report on Wednesday, September 23rd. Finally, B. Riley Financial reaffirmed a “buy” rating and set a $11.00 target price (down from $16.00) on shares of Silvaco Group in a research report on Monday. Four investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $12.25.

About Silvaco Group

Silvaco Group, Inc is a semiconductor design software and intellectual property company that provides electronic design automation (EDA) and technology computer-aided design (TCAD) solutions. Its products help semiconductor manufacturers and electronics companies develop, simulate, verify and optimize integrated circuits, semiconductor devices and related technologies.

The company’s offerings support multiple stages of the chip-development process, including process and device modeling, circuit simulation, physical design, layout automation and design-rule verification.