Silvaco Group Reports Revenue Decline and Significant Operating Loss in Q1 2025

Silvaco Group, Inc. reported a decline in financial performance for the first quarter of 2025, with total revenue of $14.1 million, down from $15.9 million in the same period last year. The decrease was primarily attributed to a drop in software license revenue, which fell to $10.0 million from $12.3 million year-over-year. Maintenance and service revenue, however, increased to $4.1 million from $3.6 million. The company experienced a significant operating loss of $19.6 million, compared to an operating income of $2.4 million in the prior year, largely due to increased operating expenses, including a $13.1 million charge related to an estimated litigation claim.

In terms of operational metrics, Silvaco's bookings for the quarter were $13.7 million, a decrease from $16.1 million in the first quarter of 2024. The company noted that approximately 76% of its bookings came from existing customers, a slight decline from 88% in the previous year. The decline in orders was particularly pronounced in Asia, driven by economic challenges and ongoing U.S.-China trade tensions. The company’s cash and cash equivalents increased to $29.5 million from $19.6 million at the end of the previous fiscal year, reflecting a net increase of $9.9 million during the quarter.

Silvaco made strategic moves during the quarter, including the acquisition of Cadence Design Systems' Process Proximity Compensation product line for $11.5 million. This acquisition is expected to enhance Silvaco's capabilities in providing advanced computational lithography solutions, which are increasingly important in semiconductor manufacturing. The company also recorded an increase in goodwill of $5.3 million as a result of this acquisition, reflecting anticipated synergies and the value of the acquired workforce.

The company’s total assets decreased to $138.1 million from $142.3 million at the end of 2024, with total liabilities rising to $54.5 million from $42.3 million. The increase in liabilities was primarily due to higher accrued expenses and other current liabilities, which rose significantly during the quarter. Silvaco's stockholders' equity also declined to $83.6 million from $100.1 million, driven by the net loss incurred during the period.

Looking ahead, Silvaco anticipates continued challenges in the semiconductor market, particularly in Asia, but remains focused on leveraging its recent acquisitions to enhance its product offerings. The company expects to recognize approximately $33.7 million in revenue from remaining performance obligations, with about 45% of this expected to be recognized over the next 12 months. Silvaco's management remains committed to navigating the current market conditions while pursuing growth opportunities through strategic acquisitions and product development.