Rosenblatt maintains Buy rating on Silvaco, notes quarterly revenues volatile

Published 15/01/2025, 13:38
Updated 15/01/2025, 16:46
Rosenblatt maintains Buy rating on Silvaco, notes quarterly revenues volatile

On Tuesday, Rosenblatt Securities analysts confirmed a Buy rating on Silvaco Group Inc (NASDAQ:SVCO) shares.

The firm's endorsement comes after Silvaco disclosed preliminary financial results for the fourth quarter and full fiscal year 2024, just before a Buyside investor conference scheduled for Wednesday, January 15th, 2025.

Silvaco's preliminary bookings for Q4 were approximately $20.25 million, reflecting a robust year-over-year increase of 30%, a significant recovery from the $9.9 million reported in the previous quarter.

This growth has contributed to an approximate 7% surge in the company's stock value on Tuesday. For the entire fiscal year 2024, Silvaco's bookings increased by 13%, reaching $65.7 million.

The company expects Q4 revenues to be around $18 million, slightly below the forecasted $19.8 million. This figure includes a substantial sale of the FTCO product to a memory company. Silvaco's revenue recognition is largely governed by ASC606 rules, which can lead to fluctuations in quarterly revenue.

During the fourth quarter, Silvaco gained 13 new customers, bringing the total to 46 for the fiscal year 2024. The market in China continued to contribute to the company's growth. Additionally, Silvaco announced its involvement in a CHIPS Act program, which is anticipated to benefit the company in 2025.

Rosenblatt maintains its $18 price target and Buy rating on Silvaco shares. The firm's report also mentioned that Silvaco is set to release its full financial results and outlook for fiscal year 2025 on March 5th. The firm has updated its forecasts based on the preliminary data and adjusted its estimates for FY25 accordingly.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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