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PDF Solutions Reports Second Quarter 2008 Results SAN JOSE, Calif., July 30, 2008 (PRIME NEWSWIRE) -- PDF
Solutions(r), Inc. (NasdaqGM:PDFS - News) the leading provider of
yield improvement technologies and services for the integrated
circuit (IC) manufacturing process life cycle, today announced
financial results for its second fiscal quarter ended June
30, 2008. Total revenue for the second fiscal quarter of 2008 totaled $21.1 million, up 3% from $20.3 million in the first fiscal quarter of 2008 and down 11% when compared with total revenue of $23.7 million for the second fiscal quarter of 2007. Gain share revenue totaled $5.7 million, up 6% from $5.3 million in the first fiscal quarter of 2008 and down 4% compared to $5.9 million for the second fiscal quarter of 2007. Net loss for the quarter was $1.9 million, or $0.07 per basic and diluted share, versus a net loss of $2.5 million, or $0.09 per basic and diluted share in the first fiscal quarter of 2008. Net loss for the second fiscal quarter of 2007 was $701,000, or $0.02 per basic and diluted share. In addition to using GAAP results in evaluating PDF Solutions' business, management also believes it is useful to measure results using a non-GAAP measure of net income, which excludes stock-based compensation expense, amortization of acquired technology and intangible assets, restructuring charges and their related income tax effects, as applicable. Using this non-GAAP measure, the non-GAAP net income for the second fiscal quarter of 2008 totaled approximately $774,000, or $0.03 per diluted share, compared with non-GAAP net income of $5.0 million, or $0.17 per diluted share, for the second fiscal quarter of 2007. Additionally, during the second quarter ended June 30, 2008, PDF Solutions utilized a portion of the $10 million share repurchase plan previously authorized by its Board of Directors to repurchase 283,500 of its shares on the open market at a weighted average cost of $5.24, for a total repurchase value of $1.5 million. As previously announced, PDF Solutions will discuss these results on a live conference call beginning at 3:00 p.m. Pacific Time/6:00 p.m. Eastern Time today. The call will be simultaneously web cast on PDF Solutions' website at http://ir.pdf.com/events.cfm. A replay of the web cast will be available at the same website address beginning approximately two hours after completion of the live call. Further, a copy of this press release, including the disclosure and reconciliation of certain non-GAAP financial measures to the comparable GAAP measures, which non-GAAP measures may be used periodically by PDF Solutions' management when discussing financial results with investors and analysts, will be available on PDF Solutions' website at http://www.pdf.com/news_archive.phtml following the date of this release. Information Regarding Use of Non-GAAP Financial Measures In addition to providing results that are determined in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), PDF Solutions also provides certain non-GAAP financial measures that exclude the effects of stock-based compensation expense, amortization of acquired technology and intangible assets, restructuring charges, and their related income tax effects, as applicable. PDF Solutions' management believes that the presentation of these measures provides useful supplemental information to investors regarding PDF's operating results. These non-GAAP financial measures are used by management internally to measure the company's profitability and performance. PDF's management believes that excluding the effects of stock-based compensation expense, amortization of acquired technology and intangible assets, restructuring charges, and their related income tax effects, as applicable, provides a useful supplemental measure of the company's ongoing operations in light of the fact that none of these categories of expense has a current effect on the future uses of cash (with the exception of restructuring charges) nor do they have use with regards to the generation of current or future revenues. These non-GAAP results should not be considered an alternative to, or a substitute for, GAAP financial information, and may be different from similarly titled non-GAAP measures used by other companies. In particular, these non-GAAP financial measures are not a substitute for GAAP measures of income as a measure of performance, or to cash flows from operating, investing and financing activities as a measure of liquidity. Since management uses these non-GAAP financial measures internally to measure profitability and performance, PDF has included these non-GAAP measures to give investors an opportunity to see the company's financial results as viewed by management. A reconciliation of the non-GAAP financial measures to the comparable GAAP financial measure is provided at the end of the company's financial statements presented below. About PDF Solutions PDF Solutions, Inc. (NasdaqGM:PDFS - News) is the leading provider of yield improvement technologies and services for the IC manufacturing process life cycle. PDF Solutions offers solutions that are designed to enable clients to lower costs of IC design and manufacture, enhance time to market, and improve profitability by addressing design and manufacturing interactions from product design to initial process ramps to mature manufacturing operations. PDF Solutions' Characterization Vehicle(r) (CV(r)) test chips provide the core modeling capabilities, and are used by more leading manufacturers than any other test chips in the industry. PDF Solutions' industry leading yield management system software, dataPOWER(r), and fault detection and classification software, maestria (r), enhance yield improvement and production control activities at leading fabs around the world. Headquartered in San Jose, Calif., PDF Solutions operates worldwide with additional offices in China, Europe, Japan, Korea, Singapore and Taiwan. For the company's latest news and information, visit http://www.pdf.com/. The PDF Solutions, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3199 Characterization Vehicle, CV, dataPOWER, maestria, PDF Solutions, and the PDF Solutions logo are registered trademarks of PDF Solutions, Inc.
PDF SOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands)
June 30, Dec. 31,
2008 2007
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 30,487 $ 35,315
Short-term investments 12,708 9,949
Accounts receivable, net of allowances 35,506 38,526
Prepaid expenses and other current assets 3,771 3,354
Deferred tax assets 1,514 1,676
-------- --------
Total current assets 83,986 88,820
Property and equipment, net 3,344 3,621
Non-current investments 1,262 --
Goodwill 67,264 65,170
Intangible assets, net 11,184 12,818
Deferred tax assets and other assets 10,825 8,922
-------- --------
Total assets $177,865 $179,351
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 418 $ 421
Accounts payable 2,378 3,469
Accrued compensation and related benefits 6,574 5,950
Other accrued liabilities 2,253 2,604
Taxes payable 75 208
Deferred revenue 3,600 3,159
Billings in excess of recognized revenue 110 553
-------- --------
Total current liabilities 15,408 16,364
Long-term debt 911 907
Long-term taxes payable 5,670 5,581
Other liabilities 724 29
-------- --------
Total liabilities 22,713 22,881
-------- --------
Stockholders' equity:
Common stock 4 4
Additional paid-in-capital 185,333 181,566
Treasury stock at cost (14,135) (11,524)
Accumulated deficit (21,345) (16,892)
Accumulated other comprehensive income 5,295 3,316
-------- --------
Total stockholders' equity 155,152 156,470
-------- --------
Total liabilities and stockholders' equity $177,865 $179,351
======== ========
PDF SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
Revenues:
Design-to-silicon-yield
solutions $ 15,452 $ 17,808 $ 30,476 $ 35,057
Gainshare performance
incentives 5,662 5,890 10,985 10,783
-------- -------- -------- --------
Total revenues 21,114 23,698 41,461 45,840
-------- -------- -------- --------
Cost of design-to-silicon-yield
solutions:
Direct costs of
design-to-silicon-yield
solutions 7,267 7,109 15,033 14,876
Amortization of acquired
technology 631 1,610 1,262 3,185
-------- -------- -------- --------
Total cost of
design-to silicon-yield
solutions 7,898 8,719 16,295 18,061
-------- -------- -------- --------
Gross margin 13,216 14,979 25,166 27,779
Operating expenses:
Research and development 9,134 8,797 18,210 17,167
Selling, general and
administrative 5,646 6,645 11,945 12,489
Amortization of other acquired
intangible assets 195 1,031 389 2,044
Restructuring charges 1,471 -- 1,471 --
-------- -------- -------- --------
Total operating expenses 16,446 16,473 32,015 31,700
-------- -------- -------- --------
Loss from operations (3,230) (1,494) (6,849) (3,921)
Interest and other income, net 251 529 740 1,025
-------- -------- -------- --------
Loss before taxes (2,979) (965) (6,109) (2,896)
Income tax provision (benefit) (1,039) (264) (1,656) 160
-------- -------- -------- --------
Net loss $ (1,940) $ (701) $ (4,453) $ (3,056)
======== ======== ======== ========
Net loss per share - basic and
diluted $ (0.07) $ (0.02) $ (0.16) $ (0.11)
======== ======== ======== ========
Weighted average common shares
- basic and diluted 27,608 28,155 27,724 28,067
======== ======== ======== ========
PDF SOLUTIONS, INC.
NON-GAAP RESULTS
(In thousands, except per share amounts)
Three Months Ended
June 30,
------------------
2008 2007
-------- --------
GAAP net loss $ (1,940) $ (701)
Stock-based compensation expense - cost of
design-to-silicon-yield solutions 399 478
Stock-based compensation expense - research and
development 711 615
Stock-based compensation expense - selling,
general and administrative 644 852
Amortization of acquired core technology 631 1,610
Amortization of other acquired intangible assets 195 1,031
Restructuring charges 1,471 --
Tax impact on reversal of stock-based compensation
expense, amortization of acquired technology and
intangible assets, and restructuring charges (1,337) 1,088
-------- --------
Non-GAAP net income $ 774 $ 4,973
======== ========
GAAP net loss per diluted share $ (0.07) $ (0.02)
======== ========
Non-GAAP net income per diluted share $ 0.03 $ 0.17
======== ========
Shares used in computing diluted non-GAAP measure
of net income per share 27,672 28,698
======== ========
Contact: PDF Solutions, Inc.
Investor Relations Contacts:
P. Steven Melman, VP, Investor Relations
(408) 938-6445
steve.melman@pdf.com
Sonia Segovia, IR Coordinator
(408) 938-6491
sonia.segovia@pdf.com
Source: PDF Solutions, Inc.
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