Good afternoon, and welcome to Silvaco's second quarter 2024 conference call. All participants will be in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please note, this event is being recorded. I would now like to turn the conference over to Greg McNiff, Investor Relations for Silvaco. Please go ahead. Thank you. Joining me on the call today are Babak Taheri, Silvaco's CEO, and Ryan Benton, Silvaco's CFO. As a reminder, a press release highlighting the company's results, along with supplemental financial results and an earnings presentation, are available on the company's IR site at investors.silvaco.com. An archive replay of the conference call will be available on this website for a limited time after the call. Please note that during this call, management will be making remarks regarding future events and the future financial performance of the company. These remarks constitute forward-looking statements for purposes of the Safe Harbor provisions of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. It is important to also note that the company undertakes no obligation to update such statements, except as required by law. The company cautions you to consider risk factors that could cause actual results to differ materially from those in the forward-looking statements contained in today's press release, earnings presentation, and on this conference call. The Risk Factors section in Silvaco's most recent Form 10-Q filing with the Securities and Exchange Commission provides a description of these risks. With that, I'd like to turn the call over to Silvaco's CEO, Babak Taheri. Babak? Thank you, Greg. Hello, and welcome to Silvaco's second quarter earnings call. I am Babak Taheri, CEO of Silvaco. Before discussing Silvaco's second quarter results, I'd like to provide a brief introduction of myself and the company. I have over 35 years of experience in Silicon Valley, having held key roles with companies ranging from small cap firms like InvenSense, to mid-sized cap firms like Cypress Semiconductor and Freescale, and large cap companies like Apple. Since joining Silvaco in October of 2018 as CTO and becoming CEO in 2019, I have been leading our strategic direction, ensuring alignment with our vision, mission, and values that include customer success, teamwork, leading by example, and strive for excellence. Silvaco enables semiconductor design and manufacturing through AI-driven digital twin modeling for simulation, software innovation, and automation. Our digital twin models for simulations are provided using a combination of AI and our software platforms. We are proud to be ranked second in technology computer-aided design globally, with our high-quality software platforms trusted by our customers worldwide. Our software platforms are considered the foundational technology behind the chip, supporting microprocessors in advanced technology nodes, memory products for our servers, as well as power systems in automotive and high-performance computing that include next-generation technology nodes. These chips are crucial for enabling artificial intelligence and IoT devices that power homes, factories, cars, trucks, and cities around the world. Next, I will cover financial overview. I want to touch on a few financial highlights of the second quarter. Ryan, our CFO, will go into more detail about our business model, financial results, and guidance. Q2 revenue and bookings year-over-year increased 19% and 36%, respectively. The 2024 figures include $21.8 million in stock-based compensation, or SBC expenses, and a $14.7 million acquisition-related litigation claim. I want to note that we recently announced an update regarding litigation related to an acquisition the company made in early 2018. Ryan will cover the related financial details, but I want to emphasize that the acquisition that is the subject of this litigation predates the arrival of current management team, and we do not expect this litigation to materially impact our core business operations of providing TCAD EDA software and SIP solutions going forward. GAAP gross margin was 68%, impacted by SBC for individuals within the support organization, totaling $2.5 million. Non-GAAP gross margin was 86%, compared to 81% for GAAP and non-GAAP alike in the same period last year, and 83% for the full year 2023. The increase in our non-GAAP gross margin is mainly due to higher margin products. Non-GAAP operating income was $1.7 million, up 104% over Q2 of 2023. Next, I will cover an overview of Silvaco solutions. Silvaco offers a diverse set of platforms as solutions for developing new semiconductors, photonics, processes, and devices. Our focus is on developing flexible, intelligent software solutions that allow users to analyze and simulate electronics and optics design directly on their desktops, laptops, and servers. Our platforms enable efficient and cost-conscious product development, supporting the entire life cycle from design conception to final design and verification and validation, seamless transition, and support through manufacturing. Customers are drawn to Silvaco for two reasons. First, we offer differentiated platforms in the power, display, and memory markets. Second, we are deeply embedded in our customers' R&D processes, collaborating with them to develop technologies year in advance of their market introduction. The long-term partnership approach is highly valued by our customers. Our leading market share reflects this differentiated position. Seven out of 10 largest flat panel display companies and six of the 10 largest semiconductor companies utilize our EDA platform. Similarly, eight out of the top 10 flat panel display companies use our TCAD platforms. Additionally, as we expand our footprint in the power market, in 2023, we acquired 14 new logos from our power customers, resulting in four out of top 10 largest power companies adopting our TCAD platform. We have assembled a management team on board with deep industry knowledge and public company experience. Members of our core management team average 35 years of experience in semiconductors and EDA companies. Electronic design and manufacturing software enables the value chain from a concept for the design through the final chip creation. The first step in developing a chip is designing the chip using EDA software and semiconductor IPs. We provide software platforms for semiconductor design, modeling, and simulation, offering differentiated products across seven market segments. Silvaco participates in this phase, addressing a $3.1 billion TAM. The second step in realizing a chip is the processing and fabrication of design on wafers. We are expanding our platform's TAM into the fabrication steps of chips using our AI-based digital twin modeling platform, also known as Fab Technology Co-optimization. Our estimated incremental SAM for this market currently is about $500 million. Think of this technology as a physics-based digital twin model of a wafer that customers use to simulate rather than prototype a wafer and fabricate. They use it for performance, yield, design, and manufacturability analysis to get products to market faster and cheaper. These digital twin models reduce the guesswork out of manufacturing and design that historically has taken several prototyping turns and costly redesign of products. This technology has been under development since 2018. Recently, we announced Micron as our strategic partner in the memory market for this technology. I'll discuss Silvaco's digital twin technology in a bit more detail shortly. We intend to extend this technology into the power market, display market, and advanced CMOS fabrication process in near future. Silvaco is addressing the first two steps in the value chain of realizing a chip. We are not part of the supply chain. There are three challenges in designing new products for semiconductor and photonics market. First, there is the increasing complexity of design, characterized by smaller transistors, integration of more functionality, and the addition of complex multicores. This level of complexity impacts all the markets we participate in, including memory, high-performance compute, and automotive. Second, the introduction of new materials such as GaN, silicon carbide, and quantum dots in the design and fabrication process increases complexity. Third, customers face go-to-market challenges, including the rising cost of design, tools, masks, wafers, and time to market. We address these challenges with our platforms and digital twin models, making our solutions critical for our customers. This slide illustrates real-life examples of what our products enable. Our platforms handle the increasing level of complexity these products require. For example, to design an 8K QLED display panel that is made of approximately 33 million pixels, we provide two platforms that enable design, modeling, and simulation, starting at a single pixel level all the way to the full 8K display panel. This is an example of a digital twin that enables customers' understanding of their product through simulation and not prototyping. We have enabled companies that require curved and flexible bending of display for AR/VR and mobile phone applications. Similarly, our capabilities extend into new semiconductor materials with applications in cars, car charging, or powering boxes within a data center. There are 4 levels of artificial intelligence in EDA. As I mentioned earlier, Silvaco leverages AI industry trends through our digital twin modeling capabilities, which allows customers to create models to reduce costs and improve time to market. The EDA industry has historically utilized AI to assist chip designers at three levels. One, optimizing historical tool performance for chip designers. Two, aiding in design steps. And three, generating chip designs from specifications. Silvaco has introduced a fourth level of AI, which is not in the design space, but rather in the manufacturing space. This is where Silvaco is expanding TAM by enabling operators in fabs to save time and reduce wafer production costs. Here is an example of Silvaco's AI-driven Fab Technology Co-Optimization, also known as FTCO. This slide shows a more detailed flow of how digital twin models are generated at the wafer level. We utilize AI and machine learning to optimize the large amounts of data provided by the customer into an accurate model representing the wafer. AI and machine learning rapidly build and improve models that otherwise would take months to generate. With AI-enabled FTCO, customers can lower costs, enhance margins, and reduce time to market. Here is the summary of our history of our acquisitions. M&A is a critical part of our DNA. Since 2015, we have completed 10 acquisitions funded by our cash flow. Our acquisition philosophy revolves around three main focus areas: technology, talent, customer acquisition. We maintain an existing funnel with target companies for each of our three product lines. Now, I would like to summarize our growth strategy. In summary, the growth strategies that have enabled us to grow include a focus on large and expanding markets, acquisitions, global agile R&D to address customer needs, leveraging direct sales in underserved market segment, and deep relationships with R&D centers and academia to stay ahead of technology knowledge. With that, I'll turn it over to Ryan to review the quarter and provide guidance. Thanks, Babak, and thank you for joining us for our first earnings call as a public company. My name is Ryan Benton. I'm the CFO of Silvaco. I joined the company in August of 2023, bringing over 30 years of experience as a finance executive, the majority of which has been in the public markets. Today, I will discuss Silvaco's business model and long-term targets, review our financial results for the second quarter of 2024, and provide our outlook for Q3 and the full year. Our business has several growth drivers. First, we have a global presence, which allows us to address customer needs for global tier one customers with a white glove, high-touch approach that we believe many of our customers can't get from our larger competitors. Second, as Babak covered in his prepared remarks, we're very excited about the opportunity for our digital twin modeling product to create enormous value for our customers. Third, our ongoing investments in advanced research and development positions us to take advantage of an enormous EDA software market, which is expected to reach $22 billion by 2030, according to a study conducted by the Grand View Research. We intend to capitalize on this opportunity by partnering with world-class tier one customers to drive product direction efficiently and thoughtfully. In terms of specific markets, we're focused on delivering differentiated solutions that address unmet market needs. And finally, with our strong financial position and operational expertise, we are actively pursuing multiple strategic acquisitions that we believe will bolster our products, enhance our competitiveness and market presence, add talented engineers and scientists, and provide much-needed scale. Now, let's discuss our second quarter financial performance on the next slide. Turning to bookings, we achieved gross bookings for our software and semiconductor IP products of $19.5 million, an increase of 36% year-over-year, which includes 10 new customer wins and surpassed our guidance of $17 million-$18 million. I have a strong suspicion that this bookings amount is a company record. In terms of product strength, TCAD bookings were up 78% year-over-year, driven by a memory customer for our FTCO digital twin product. As of now, we don't split FTCO out as a separate product line, but we may consider it in the future. We believe remaining performance obligation, or RPO, is an important indicator as it provides visibility into orders booked that have not yet been recognized as revenue. RPO as of June 30, 2024, was $33.2 million, 47% of which is expected to be recognized as revenue in the next 12 months. Turning to revenue, we generate revenue from the sale of our software and semiconductor IP products. Software products are typically sold with post-contract support, providing maintenance in the form of technical enhancements and customer support over an extended period of time. The revenue recognition for software products has some complexities. Generally, for a new customer or a new product sale to an existing customer, we recognize software license revenue upfront upon the delivery of the licensed products. For the upsell of the product to an existing customer, for example, the sale of additional seat licenses or an extension of tenure, the license is typically recognized at the beginning of the renewal period. Maintenance and services revenue is recognized evenly over the contract term. The revenue recognition of SIP tends to be straightforward, as these products are usually sold without any additional performance obligation. Unless customization is involved, the revenue is typically recognized upon delivery of the technology license to the customer, or in some cases, once the cash is received from the customer. For Q2, we posted revenue of $15 million at the high end of our guidance range, representing a 19% increase year-over-year. For the quarter, our software solutions accounted for 74% of our total revenue, while maintenance and services accounted for 26%. Because of how revenue is recognized, we believe a good metric for growth performance is the growth rate of software license revenue. Software licensing revenue of $11 million grew 25% year-over-year, compared to $8.8 million in the same period a year ago. Maintenance and service revenue for Q2 was $3.9 million, compared to $3.7 million in the same period last year. This represents a 7% year-over-year increase. Additionally, however, we added $2.8 million to the RPO balance during the quarter for maintenance and service. On a product basis, similar to bookings, the increase in revenue was driven by strength in TCAD, and specifically FTCO. TCAD revenue was $10.4 million, up 34% year-over-year. Rounding out the portfolio, EDA revenue was up $500,000, which was up 20% year-over-year, while SIP revenue was down approximately $700,000, or 30% year-over-year, as a result of a lapse in a resale agreement with a strategic partner, which was renewed midway through the second quarter. Turning to our split between geographic regions, the Americas represented 51% of total sales for Q2, which is essentially the U.S. This market grew nicely due to the aforementioned increase in TCAD sales. Asia represented 41% of sales, of which the People's Republic of China was the largest market at 17% of total sales. EMEA was flat year-over-year and made up 8% of total sales. Before turning to gross margins, expenses, and profitability, I'd like to note that I will be discussing non-GAAP results going forward. As a reminder, our GAAP financial results, along with the reconciliation between GAAP and non-GAAP results, can be found in our earnings press release, in the appendix of the presentation, and within the supplemental financials on our website. GAAP gross margin was 68%, impacted by stock-based compensation expense of $2.5 million. Non-GAAP gross margin was 86% in the second quarter, up compared to the 81% for GAAP and non-GAAP alike in the same period last year, driven in large part by strong TCAD and EDA license revenue growth. This put us at 87% non-GAAP gross margin for the first half, a great result. We remain focused on optimizing our product mix to leverage the current cost structure, thereby enhancing margin. Turning to operating expenses. Our GAAP operating expenses were $47.9 million, which includes $19.3 million in stock-based compensation expenses and a $14.7 million acquisition-related litigation claim charge. Our non-GAAP operating expenses for the second quarter were $11.2 million, compared to $9.3 million in the same period last year. The increase in cost year over year is split fairly evenly across each category of research and development, sales and marketing, and general and administrative. The increase in R&D is a result of expanding the engineering team. The increase in the sales and marketing is largely a result of higher sales commissions due to higher sales. And the G&A increase is largely a result of taking on costs associated with becoming a public company. A lot of the G&A costs we have added are essentially fixed costs. Going forward, we do not expect G&A costs to scale at the same rate of sales. So Silvaco's non-GAAP operating income and non-GAAP operating margin were $1.7 million and 11%, respectively, up from $1 million and 6% in Q2 2023. This put us at $5 million and 16% non-GAAP operating income and operating and non-GAAP operating margin for the first half, also great results. Our net income for the quarter was a loss of $38.4 million, which again, also included the charges for stock-based compensation and the acquisition-related litigation claim charge. Our non-GAAP net income for the quarter was $1.8 million, up from $0.8 million in the same period last year. Our EPS, basic and diluted, was a loss of $1.55 per share. Non-GAAP EPS, basic and diluted, came in at $0.07, up from $0.044 in the same period last year. This put us at non-GAAP EPS of $0.19 basic and $0.18 diluted for the first half. Indeed, a great result. Turning to our balance sheet. We ended the quarter with $102.3 million in cash, cash equivalents, and marketable securities. This, of course, is after the receipt of the proceeds of the IPO and the payoff of the company's debt. For the second quarter, free cash flow was an outflow of $6.3 million, down from a $1.6 million inflow in the same period last year. The relative change in accounts receivable accounted for the largest part of the variance, $6.8 million, which reflects the lumpiness in the timing of billing of customers. This is also impacted, however, by IPO-related expenses of $1.8 million and one-time litigation costs of approximately $1 million. Now, I want to discuss a little more detail, the press release on July 24, regarding an update to the ongoing litigation and it, and its impact on our financial results. The case pertains to a dispute with respect to an earn-out arising from an acquisition the company made in March 2018, which predates Babak and myself. The jury awarded the opposing parties $11.3 million in damages under breach of contract-related claims, along with the potential for an award of statutory prejudgment interest. If the court chooses to award prejudgment interest, we estimate that it will be between $3.4 million and $3.8 million as of June 30, 2024. As a result, we recorded a charge to a litigation claim, accrued expenses, and other current liabilities of $14.7 million. The jury also found the company and related co-defendants liable for certain fraud-related claims and awarded the opposing parties $6.6 million. This amount does not stack on top of the breached contract claims. It's an either/or situation. Punitive damages relating to the fraud claims will be considered at a hearing scheduled for August sixteenth. Any punitive damages awarded would be incremental to the $6.6 million awarded. After the hearing, the opposing parties will have the option to choose either amount, presumably the higher amount, but in no circumstances will they receive both remedies. Candidly, we're saddened by the result. We respect the jury's verdict, but at the same time, the company believes it has strong legal grounds for appeal on multiple issues and is actively evaluating its legal strategies and options, including the possibility of post-trial motions and appeals. And perhaps even more importantly, as Babak noted, we do not expect this ruling and related award to materially impact our core business operations of providing TCAD, EDA software, and SIP solutions going forward. Alongside 2022 and 2023 results, 2024 guidance is on here to show our momentum. I'll review our third quarter and 2024 guidance in more detail on a later slide. With that as a foundation, in terms of long-term guidance, we believe that we can constantly target 15%-25%+ top-line organic growth in the coming few years. We see a pretty clear path to 90%+ gross margin and 25%+ operating margin over a similar time horizon, driven by our focus on expanding our footprint across the key markets we've highlighted. We also intend to leverage accretive M&A for talent and technology, helping us accelerate our timeline to get to our financial targets and provide much-needed scale. We believe our strong financial position enables us to pursue strategic acquisition opportunities that not only enhance our competitiveness and market presence, but will also bolster revenue streams and drive margin expansion through synergies and efficiencies. Some notable highlights from the quarter include 10 new customer wins with industry-leading companies in industries including automotive, power semiconductors, memory, and wireless connectivity. Additionally, we launched our digital twin product and renegotiated a key technology agreement, which extended the term for an additional five years. These achievements underscore our commitment to innovation and customer satisfaction, positioning us well for continued growth and success. Turning to our guidance for Q3 and the full fiscal year. For bookings, building upon the great momentum we had from Q2, we expect gross bookings for Q3 to be in the range of $16 million-$18 million, and the full year to be in a range of $67 million-$71 million, a range higher than we had previously anticipated. As we all know, our software sales can be complex, and the application of the associated revenue recognition rules can be complex as well. On our side, the timing of revenue from a particular deal can be difficult to forecast until the final terms of the larger elements are negotiated. Bookings, in my opinion, remain a great leading indicator of the performance and relative strength of the business, and we're happy with how things are trending. We are seeing robust momentum across our key markets, driven by an increasing adoption of our software solutions and positive feedback from new and existing customers. This demand, coupled with our strategic initiatives and the solid execution of our land and expand strategy, gives us confidence in our ability to achieve our targets. On the topic of revenue for the third quarter of 2024, we expect revenue to be in the range of $15.5 million-$16.5 million, which would represent a 4%-10% increase from the third quarter of 2023. For the full fiscal year, we are maintaining our revenue outlook of $63 million-$66 million, which would represent a 16%-22% increase from 2023. For non-GAAP gross margins, we're at 87% year to date through June. For the third quarter of 2024, we expect non-GAAP gross margin to be similar in the range of 85%-88%. For the full year, we are forecasting a slightly higher range of 85%-89%. For non-GAAP operating income, we are at $5 million year to date through June. For Q3, we expect non-GAAP operating income to be in the range of $1.8 million-$2.8 million. For the full year, we maintain our expectation of non-GAAP operating income to be in the range of $8 million-$11 million, which would be an increase from 2023 of between 93% and 161%. And with that, Babak and I will be happy to take your questions. Operator? Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. One moment for questions. Our first question comes from Blaine Curtis with Jefferies. You may proceed. Hey, thanks for taking my question. I want to ask about the FTCO market. You laid out a pretty big TAM with some end markets. I mean, obviously, you have this lead memory customer. Do you need to get to a certain point with that customer before you can start addressing the other end markets, or is that something you're engaging with now? Thanks, Blaine. This is Babak. Well, that's a great question. No, we have certainly said, we are already, at a stage in which we have, engaged discussions with our other customers in that same space, which is our, digital twin model of FTCO platform. And as I had mentioned before, we are actually, discussing this to expand, this to, other markets such as power, as well as, the next step after power is, actually advanced CMOS. We have customers that we are discussing these things with now. And then the last but not least is, you know, fabrication of any kind, if you will, including, tablets or, phable ts. And, as... Oh, the last thing I would mention in this case is we had also said the cycle time to bring on new customers since we announced this in May timeframe, it's between six months to a year, so we are on schedule to that, and we are hoping to make some announcements either this year or early next. Thanks. And then a question for Ryan. I might be answering my own question, but if you take the annual guide and see what implies for December, it seems like OpEx would be up a bunch. So I just want to see if that's right. And then maybe the second part of it, and this is where I might be answering my own question, is just the cost of this legal, if you can kind of frame what that would be and, you know, kind of how you think about those costs layering in. So the first question, if you look at the guidance, yes, I think you could back into a little bit of an uptick of operating expenses in Q4. And some of that is kind of a natural seasonality trend. We had a similar seasonal trend in Q4 of last year, as a lot of the sales force, in particular, their commission structure enables them to hit certain accelerators that happen in Q4 on the sales and marketing line. Separately, on the R&D, we are hiring, so for any one of those good engineers, send them our way. So we're adding, you know, we're looking for a good bit of talent to kind of augment the team that we're... The technology team that, you know, we're in the process of hiring Q3 and Q4, and expense will come. And there's a little bit of weighting in terms of some of the accounting charges in the G&A area that will kind of hit in the fourth quarter. But, you know, I think we've tried to be, you know, appropriately conservative in terms of how we expect expenses to hit. And then your second question was about the legal expenses. I assume you're referring to the litigation. I don't know if that puts words in your mouth, but can you please rephrase? You referenced that you're gonna appeal, so I'm just kind of curious if, you know, what that cost would be, if it's notable, and we should be thinking about modeling anything. So Blaine, thanks for, thanks for asking. You know, as you know, we also have had IPO legal expenses, which is part of those numbers. In terms of litigation, you know, the timing of any of these payments would depend on several factors, including whether the parties eventually settle this litigation or the company pursues post-trial motions and appeals. If the matter is not settled and the company pursues an appeal, the appellate process would take one or two years. And, you know, at the beginning, we'll have some expenses in terms of litigation and, and, filings, but then there's a gap period there that you wait for the appellate court to give us time and, and judges. So it is very hard and difficult to forecast these at this time. As the time goes by, we will provide guidance as what we think. Right now, it's very difficult to forecast. Yeah, and I'll just add one point. Obviously, you know, in the second quarter, there was a trial, which is, you know, had significant expense associated with that. ... Yeah, and, and don't forget the fact that we are still in the midst of it, and us commenting any more beyond that, we'd rather not just now. Okay, thanks so much. Thanks, sir. Thank you. Our next question comes from Charles Shi with Needham & Company. You may proceed. Hey, hi, back, Ryan. Good to hear from you on the first official earnings conference call. Really just wanna start with the first question about your revenue from China. One of your larger EDA peer who has reported had to take down their overall China revenue expectation for this year, and they're expecting China to be down this year. I do look at your numbers for Q1 and Q2. It does seem like the China revenue run rate has been a little bit lower than last year. So I kind of wanna get a sense, how do you think about China revenue overall, for the remainder of the year and for the full year 2024, compared with the last year? And, is it up or down, and what would be the reason behind? Yeah, that's a very good question. But let me give you the main answer first, and I'll dive into a better explanation. Overall, we think it'll be a bit down compared to last year. However, compared to our competitors there, as you know, local competitors there do not provide many of the solutions we provide. Specifically, if you think of our technology, TCAD, PDK product line, there is very few and far level of maturity to the point that they can provide the solutions we have. We do have PDK products, especially in power and display, as well as some memory, some specialty memory companies in China. In addition, we do have differentiated IP. Part of the down part of IP business unit and the fact that China is there correlated in the sense that, as you know, we did not renew one of our contracts until I would say, April of this year. There was a gap, and that gap we are catching up. That was the second impact of the China business that, and we think that's gonna come back up in that, in that, in that respect. But overall, I think, Ryan, correct me if I'm wrong, if you want to add anything, I think overall we'll be down, and a bit down because of the IP gap we had and because of some of the, some of the overall market for China. You're absolutely right, it's down. But usually, EDA companies that have differentiated products get less impacted, but they get impacted, and we are part of that less impacted companies. Thank you. Maybe a second question, 'cause you guys have the exposure to, like, power, display, memory. These are analog type of devices. We all know that part of the semiconductor industry did well last year. This year, they were in a sort of a pretty little bit tougher period. The inventory remains high, business results a little bit mixed, for that part of the semiconductor market. Because of your exposure to that part of the market, but other than China being down, but the non-China business, based on your guidance, looks like it's still very strong this year. How do I reconcile between the two different trends, I mean, the all analog guys and... Yeah. Yeah, that's an excellent point. You're right. Analog did amazing last year in terms of the whole semiconductor market. We actually rode that wave. Analog is not doing as well this year. However, one component that we do sell is not just display and power, but we also sell into automotive, which is a little bit. The automotive market is down, but the tools to generate the next generation of product for automotive is not. The second component of it is what we call semiconductor IP or IP for other markets that we provide to China, not only automotive, but also IoT devices. And those are some of the businesses that we keep actually up and going. In terms of U.S. and other regions, we are strong. As you know, the U.S. was our strongest region, and that momentum is going to continue. But Ryan, go ahead, add some. Yeah, no, I think it's all right. And certainly we're super excited about the FTCO product and the contribution of the memory market. However, if we look at the first half on a booking basis, you know, power was still our largest market. So, really strong there, and we certainly expect that strength to continue into the second half of 2024, and we expect power to be our largest market. Indeed. Thank you. That's all from me. Great question. Thanks, sir. Thank you. Our next question comes from Craig Ellis with B. Riley Securities. You may proceed. Yeah, thank you for taking the question, and congratulations on the momentum in the business, guys. I, I wanted to go back to the statement in the, the prepared remarks that identified there were 10 new customer wins in the quarter, and I think it was identified that they existed in auto, power, memory, and in other areas. So the two related questions are these: one, can you help us understand if any of these are particularly material from a revenue standpoint, and if so, when? And two, since my understanding is that the company's pipeline tends to be a little bit longer as you engage before you, close a win, how does the 10 wins compare what you, to what you expected going into the quarter? So, Greg, that's a great question. Yes, we did say we have added 10 new customers. To add a bit more color, these customers included five new power customers, four new automotive customers, and 1 solar power customer. So that's the 10 customer, which areas we've added. Typically, depending on the market you're addressing, you know, this is the process that we call landing. And we've landed in those customers, and as you know, we have a very specific metrics by which we plan to expand in these customers. And our cycle times between land and expand typically averages 6-12 months, I would say. So I would expect the companies that we land in within 6-12 months to go expand, depending on several factors. One is the mix of products, the type of product, and as well as the licensing that we, we sign them up for, whether it's 1 year, 2 year, 3 year, or what have you. And Ryan, did you want to add anything? I mean, I guess just the thing I would add anecdotally, Greg, is I think tomorrow is my one-year anniversary, and having been here right at one calendar year, it's—I've seen the... Over during that twelve months, I've kind of seen the evolution of certain customers, you know, big names, big market caps, you know, that were landed either just prior to me arriving or after, and I'm seeing how those engagements are evolving, and just it does bode well for the long term. That's helpful, Brian. And then, Babak, the follow-up question for you is more about the color that you're hearing as you interact with some of Silvaco's key customers and key potential customers. And it's related to some of the choppiness we've seen in the global macro over the last couple months. So, bookings certainly looked like they came in strong, but can you just talk about areas where, as you engage with customers, you're seeing some acceleration and seeing things actually turn up? And are there any areas that are being negatively impacted by some of the macro weakness we've been seeing? And how does that cause you to think about bookings trends as you look beyond this year and into next year? Thank you. Yeah, that's a great question. I'll make a overall comment, which you know better, better than anyone else, in that EDA market impact is very different than the actual market impact. As Richard said, if automotive market goes down or analog market goes down, that means the sales of analog products go down. That means the unit space is always lower. However, as you know, EDA, typical EDA companies like us, or I like to call ourselves going forward, digital tool companies like us, we simulate and model design, and our impact directly at the time we reach the market gets impacted. It's out of sync and out of cycle from those markets. We work on the advanced process technology nodes. We work on the advanced R&D of our customers. What we see right now, in many areas, the advanced process R&D projects that are going on now, the only market that we see that would impact potentially us would be power in specific regions of the world, not everywhere. And that's the areas in which we have already strengthened for us, going to new customers, adapting just last quarter, another five power, five power companies, four automotive companies, and solar power. And the surprising thing that people don't realize is there's still advanced R&D getting done in solar power. There's still advanced R&D getting done in automotive. There's still advanced R&D getting done in power. And in like in any market, there is competitors, some will survive, some will not. In terms of our customers, or I would say that's an extreme comment. Some will survive, some will do better, and some will do great. And, you know, we tend to get impacted less by those companies that reduce their R&D because there are other companies that have offset it. However, we have not seen an overall downtrend for R&D and in EDA market yet, so. That's really helpful color. Thanks for the comments, Babak and Ryan. Thank you, sir. Thank you. Our next question comes from Blair Abernethy with Rosenblatt Securities. You may proceed. Hi, nice quarter, guys. Just first question is just around the, the bookings. You know, if I look at, I mean, it's strong quarter this quarter, obviously helped by the FTCO. But, just as you kind of look at the first half versus the second half, it looks, you know, your guidance is sort of implying a slightly slower second half in bookings. Is that, is there any seasonality that we should be looking at here, or is this really just as a result of maybe the FTCO impact in Q2? Yeah, so I would say, you know, like from a seasonality standpoint, we always talk about the barbell shapes, so there tends to be stronger Q1 and Q4 and kind of slower Q2 and Q3, traditionally. I think the main point is that, I mean, from a booking standpoint, certainly Q2, we're super proud of it, and having the, you know, the first large FTCO booking is exciting. And you're right, you've done the two function math correctly in terms of our range for the full year, so that would imply a range that would be, you know, similar or slightly down. But I think it's really just an artifact of such a great Q2. But certainly, if you look at the overall, you know, guidance for the year, it's, you know, we hit our guidance. It's a great result. Yeah, and short answer to your question is both. Yes. Yeah. Okay. That's great. Thank you. And then just, you know, on the actual FTCO, I guess two questions here. Is Micron your first memory customer with this solution? Are they rolling out as expected, timing-wise? And then how is the pipeline of opportunities for new next new customers shaping up? Yeah, and thank you for asking that question. As you know, we have a strategic relationship with Micron, and we continue working with them. In terms of other areas, as I mentioned to Blaine, we are having quite a few discussions with people in or customers within power, as well as advanced CMOS nodes. And those are the customers that we plan to bring on to the FTCO. We've actually made good progress in them, and the cycle time for those, as I said, it's 6-12 months. We're about two months into that cycle time. So, hoping by end of this year, at least announce we are pushing to be able to get this into the hands of our customers before the end of the year, and that's our goal. One thing that I wanna mention, this AI-based fab technology co-optimization modeling capabilities also, it requires some customization, because if you go from a memory product to an advanced CMOS product to any other kind of fabrication processes, including within the fab, if you're talking about a very low geometry node versus a mid-geometry node. So there are some customizations that need to be done. Frankly, part of the fact that it takes us 6-12 months to really get it peeled, which is the ultimate result of all this, is to do some of that advanced customization ahead of time, so that they can evaluate and analyze our products for those markets that they're, or products that they're looking at, so. Okay, great. Thank you. And then last question, just over on the IP business. Obviously the NXP relationship renewed. How is that business sort of shaping up from here? Are we sort of off along the bottom of this business now? And so what, you know, what are you kind of looking at for growth in the medium term on your IP business? So in terms of NXP relationship, yes, it did renew in April. It's coming up nicely. As a matter of fact, we did some business in Q2, although we had closed the contract in mid-Q2. But the expectation is that it's going to come back very quickly and increase. We have found a new customer traction for that. In terms of overall IP, as I mentioned before, we are developing certain kind of IP that gets us into more advanced technology nodes and higher speed interfaces, and that's what the team have been focusing on. And we do have customers that are waiting for their products that we will deliver within Q3 and Q4 time frames. The overall growth of IP business will be higher than what you've seen in the earlier years. Okay, great. Thanks very much, guys. Thank you. Our next question comes from Khris Sankar with TD Cowen. You may proceed. Hi, this is Robert Mertens on for Khris Sankar. Congrats on the strong quarter, and thanks for taking my question. I guess the first one was your bookings came in higher than prior guidance, and it looked like a lot of the strength was from the TCAD business. Could you just provide some color around the strength you witnessed in the quarter, compared to what you were expecting, a quarter ago? And then within the bookings being a little bit lower in the September outlook, is it fair to assume that the softer outlook would be more FTCO related digestion from that main customer? That's a very good question. So, as we mentioned, we had two main growth areas in terms of bookings, mainly TCAD and both, and TCAD and EDA, both, not one. The fact of the matter that we reported a very high level bookings growth in Q2 is the fact that, yes, we did have our digital twin product for the first time that we announced it, we had bookings and revenue from.... We also had very strong demand for our EDA tools, which are analog custom. And those are the main two product lines that we developed. Ryan, did you want to add something? Yeah, I mean, I guess I would say that, you know, in my prepared remarks, I talked about how the bookings order I suspected was a company record. And the only reason why I kind of use language that specifically hedging was just because the company has a long history and without going and checking off, you know, all those kind of previous years to confirm the number. But I truly believe it is, and by a long shot. And for example, the Q3 guide in terms of bookings, that if not for such a strong Q2, I think it would have been a record itself. So even though it's down sequentially, it might be a really strong quarter. That's a good point. But, you know, for the past few years, we've been beating every quarter that we- Yeah. Every time we have reported so far, it's been a record for us. Well- In our view, yeah, second quarter was exceptional. And of course, on a... Again, I think whoever asked the previous question, a seasonally typical slow quarter from a seasonality perspective, and so that number is obviously guiding to a significant increase on a year-over-year basis, which is a good important metric. No, absolutely. So, yeah. So again, going back, yes, FTCO had a role in it. But then as we roll out FTCO and other customers, we will be able to actually forecast those more accurately as they pan out. But also, Q3 and Q4 forecast is just a mixture of products as we looked at, so nothing surprising. Okay, got it. Thank you. That, that's very helpful. Thanks, sir. Thank you. Our next question comes from Christian Schwab with Craig-Hallum Capital Group. You may proceed. Christian Schwab, your line is now open. I'm not showing any further questions at this time. I would now like to turn the call back over to Babak Taheri for any closing remarks. Yeah, I wanted to thank you for attending this week. This is a coveted event for me and for Ryan, having our analysts on the call, and doing this for the first time for the public call. It's very surreal for us, and we enjoyed doing this with you. I wanted to thank you again, and I wanted to also mention we look forward to seeing you in the quarter. Thank you so much. Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.