PDFS
$13.20
Pdf Solutions
($.30)
(2.22%)
Earnings Details
4th Quarter December 2018
Thursday, February 14, 2019 4:00:00 PM
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Summary

Pdf Solutions Misses

Pdf Solutions (PDFS) reported a 4th Quarter December 2018 loss of $0.03 per share on revenue of $19.7 million. The consensus estimate was a loss of $0.03 per share on revenue of $18.3 million. The Earnings Whisper number was for a loss of $0.02 per share. Revenue fell 26.3% compared to the same quarter a year ago.

PDF Solutions Inc provides process-design integration technologies. The Company also serves to improve yield and optimize performance of integrated circuits.

Results
Reported Earnings
($0.03)
Earnings Whisper
($0.02)
Consensus Estimate
($0.03)
Reported Revenue
$19.7 Mil
Revenue Estimate
$18.3 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

PDF Solutions Reports Fourth Fiscal Quarter and Fiscal Year 2018 Results

SANTA CLARA, Calif., Feb. 14, 2019 (GLOBE NEWSWIRE) -- PDF Solutions, Inc. (“PDF Solutions” or the “Company”) (NASDAQ: PDFS), a leading provider of differentiated data and analytics solutions to the semiconductor and electronics industries, today announced financial results for its fourth fiscal quarter and fiscal year ended December 31, 2018.

Total revenues for the fourth fiscal quarter of 2018 were $19.7 million, down 2% from $20.2 million for the third fiscal quarter of 2018 and down 26% from $26.8 million for the fourth fiscal quarter of 2017. Design-to-silicon-yield solutions revenue for the fourth fiscal quarter of 2018 was $12.6 million, down 9% from $14.0 million for the third fiscal quarter of 2018 and down 33% from $19.0 million for the fourth fiscal quarter of 2017. Gainshare performance incentives revenue for the fourth fiscal quarter of 2018 was $7.1 million, up 13% from $6.2 million for the third fiscal quarter of 2018 and down 9% from $7.8 million for the fourth quarter of 2017.

Total revenues for the fiscal year ended December 31, 2018, were $85.8 million, down 16% when compared with total revenues of $101.9 million for the fiscal year ended December 31, 2017. Design-to-silicon-yield solutions revenue for the fiscal year ended December 31, 2018, was $60.1 million, down 19% when compared with Design-to-silicon-yield solutions revenues of $74.4 million for the fiscal year ended December 31, 2017. Gainshare performance incentives revenue for the fiscal year ended December 31, 2018, was $25.7 million, down 6% when compared with Gainshare performance incentives revenue of $27.4 million for the fiscal year ended December 31, 2017

On a GAAP basis, net loss for the fourth fiscal quarter of 2018 was $3.1 million, or $(0.10) per basic and diluted share, compared to net loss of $2.1 million, or $(0.06) per basic and diluted share, for the third fiscal quarter of 2018, and compared to net loss of $2.6 million, or $(0.08) per basic and diluted share, for the fourth fiscal quarter of 2017. Net loss for the fiscal year ended December 31, 2018, was $7.7 million, or $(0.24) per basic and diluted share, compared to net loss of $1.3 million, or $(0.04) per basic and diluted share, for the fiscal year ended December 31, 2017.

Cash and cash equivalents at December 31, 2018, were $96.1 million, compared to $101.3 million at December 31, 2017.

Non-GAAP net loss for the fourth fiscal quarter of 2018 was $0.4 million, or $(0.01) per diluted share, compared to net income of $0.2 million, or $0.01 per diluted share, for the third fiscal quarter of 2018, and compared to net income of $4.2 million, or $0.13 per diluted share, for the fourth fiscal quarter of 2017. Non-GAAP net income for the fiscal year ended December 31, 2018, was $2.8 million, or $0.09 per diluted share, compared to non-GAAP net income of $13.0 million, or $0.39 per diluted share, for the fiscal year ended December 31, 2017.

As previously announced, PDF Solutions will discuss these results on a live conference call beginning at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time today. The call will be simultaneously web cast on PDF Solutions’ website at http://ir.pdf.com/webcasts. A replay of the web cast will be available at the same website address beginning approximately two hours after completion of the live call. 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 also be available on PDF Solutions’ website at http://www.pdf.com/press-releases following the date of this release.

Recent Accomplishments

  • Commercial deployment of the 2nd generation of the Company’s DFI™ solution with high-density electrical metrology at a major Asian foundry
  • Early renewal of a contract for Exensio® Yield and Control with CV® infrastructure at a Top-5 Japanese semiconductor company with a multi-million dollar increase in the total contract value
  • Execution of a multi-million dollar Exensio® Control contract with professional services at a leading integrated device manufacturer
  • Further gains into China’s ecosystem with a multi-million dollar Exensio® Yield contract and professional services at a major foundry

Fourth Quarter and Fiscal Year 2018 Financial Commentary Available Online

A Management Report reviewing the Company’s fourth quarter and fiscal year 2018 financial results will be furnished to the SEC on Form 8-K and published on the Company’s website at http://ir.pdf.com/financial-reports. Analysts and investors are encouraged to review this commentary prior to participating in the conference call webcast.

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. Non-GAAP net income (loss) excludes the effects of non-recurring items (including severance payments, restructuring charges, write-down in value of property and equipment, and adjustment to contingent consideration related to acquisition), stock-based compensation expense, amortization of acquired technology and other acquired intangible assets, and their related income tax effects, as applicable, as well as adjusts for the non-cash portion of income taxes. These non-GAAP financial measures are used by management internally to measure the Company’s profitability and performance. PDF Solutions’ management believes that these non-GAAP measures provide useful supplemental information to investors regarding 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 certain non-recurring items) nor do they impact 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 differ 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 or loss 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 Solutions 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 comparable GAAP financial measures to the non-GAAP financial measures is provided at the end of the Company’s financial statements presented below.  

Forward-Looking Statements
The statements made in this press release and on the planned conference call regarding the Company's future expected business performance and financial results are forward looking and are subject to events and circumstances of the future. Actual results could differ materially from those expressed in these forward-looking statements. Risks and uncertainties that could cause results to differ materially include risks associated with: customers' production volumes under contracts that provide Gainshare royalties, cost and schedule of new product development; continued adoption of the Company's solutions by new and existing customers; the impact of ASC 606; project milestones or delays and performance criteria achieved; the provision of technology and services prior to the execution of a final contract; and other risks set forth in PDF Solutions' periodic public filings with the Securities and Exchange Commission, including, without limitation, its Annual Reports on Form 10-K, most recently filed for the year ended December 31, 2017, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K and amendments to such reports. The forward-looking statements made in the conference call are made as of the date hereof, and PDF Solutions does not assume any obligation to update such statements nor the reasons why actual results could differ materially from those projected in such statements.

About PDF Solutions
PDF Solutions (NASDAQ: PDFS) offers an end-to-end analytics platform that empowers engineers and data scientists across the semiconductor ecosystem to rapidly improve the yield, quality, and profitability of their products. By combining industry-leading data analytics and professional services with exclusive, differentiated product data generated during the manufacturing process, PDF Solutions is delivering on the promise of Industry 4.0 today by transforming how the ecosystem collects, analyzes, and shares data. Key Fortune 500 organizations around the world rely on PDF Solutions to remove the data barriers that encumber and constrain new product introductions and to deliver the machine learning insights that drive efficient and profitable high-volume manufacturing.

Headquartered in Santa Clara, California, PDF Solutions also operates worldwide in Canada, China, France, Germany, Italy, Japan, Korea, and Taiwan. For the Company’s latest news and information, visit http://www.pdf.com/.

Exensio, PDF Solutions, and the PDF Solutions logo are registered trademarks of PDF Solutions, Inc. or its subsidiaries. DFI is a trademark of PDF Solutions, Inc.

 

       
PDF SOLUTIONS, INC.       
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)       
(In thousands)       
       
  December 31, 
 2018   2017 
       
ASSETS      
Current assets:      
Cash and cash equivalents $  96,089   $  101,267 
Accounts receivable, net    51,570      57,564 
Prepaid expenses and other current assets    9,562      5,069 
Total current assets    157,221      163,900 
Property and equipment, net    35,681      25,386 
Goodwill   1,923      1,923 
Intangible assets, net   5,064      6,074 
Deferred tax assets   19,044      16,348 
Other non-current assets    6,972      10,545 
Total assets $  225,905   $  224,176 
       
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Current liabilities:      
Accounts payable $  2,454   $  2,536 
Accrued compensation and related benefits    4,727      6,493 
Accrued and other current liabilities    3,235      2,627 
Deferred revenues - current portion   8,477      7,981 
Billings in excess of recognized revenues   635      —  
Total current liabilities    19,528      19,637 
Long-term income taxes payable   3,751      3,902 
Other non-current liabilities   2,831      2,269 
Total liabilities    26,110      25,808 
       
Stockholders’ equity:      
Common stock and additional paid-in-capital   310,665      297,955 
Treasury stock at cost    (79,142)     (71,793)
Accumulated deficit    (30,452)     (27,089)
Accumulated other comprehensive loss   (1,276)     (705)
Total stockholders’ equity    199,795      198,368 
Total liabilities and stockholders’ equity $  225,905   $  224,176 
       

 

PDF SOLUTIONS, INC. 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) 
(In thousands, except per share amounts) 
               
 Three months ended  Year ended 
 December 31, September 30, December 31, December 31, December 31,
 2018  2018  2017  2018
 2017
               
               
Revenues:              
Design-to-silicon-yield solutions $  12,650  $  13,976  $  19,010  $  60,081  $  74,436 
Gainshare performance incentives    7,075     6,237     7,766     25,713     27,435 
Total revenues    19,725     20,213     26,776     85,794     101,871 
               
Costs of Design-to-silicon-yield solutions:              
Direct costs of Design-to-silicon-yield solutions    9,577   10,539   12,137     42,228     47,050 
Amortization of acquired technology   144     144     144     575     471 
Total costs of Design-to-silicon-yield solutions   9,721     10,683     12,281     42,803   47,521 
Gross profit    10,004   9,530   14,495     42,991   54,350 
               
Operating expenses:              
Research and development    6,898     6,755     7,646     27,998     30,078 
Selling, general and administrative    6,133     5,507     5,909     23,934     23,684 
Amortization of other acquired intangible assets    109     108     107     435     398 
Restructuring charges   576    —     —      576    —  
Total operating expenses    13,716     12,370     13,662     52,943   54,160 
               
Income (loss) from operations    (3,712)  (2,840)  833     (9,952)  190 
Interest and other income (expense), net    210   223   42     493     (264)
Income (loss) before income taxes    (3,502)    (2,617)    875     (9,459)  (74)
Income tax provision (benefit)   (388)    (535)    3,509     (1,743)    1,263 
Net loss$  (3,114) $  (2,082) $  (2,634) $  (7,716) $  (1,337)
               
Net loss per share:               
Basic $  (0.10)  $   (0.06) $  (0.08) $  (0.24) $  (0.04)
Diluted $  (0.10)  $   (0.06) $  (0.08) $  (0.24) $  (0.04)
               
Weighted average common shares:              
Basic    32,306   32,184   31,971     32,169   32,038 
Diluted    32,306   32,184   31,971     32,169   32,038 
               

 

PDF SOLUTIONS, INC. 
RECONCILIATION OF GAAP TO NON-GAAP NET INCOME (LOSS) (UNAUDITED) 
(In thousands, except per share amounts) 
               
 Three months ended  Year ended 
 December 31, September 30, December 31, December 31, December 31,
2018  2018  2017  2018  2017 
GAAP net loss$  (3,114) $  (2,082) $  (2,634) $  (7,716) $  (1,337)
Adjustments to reconcile GAAP net loss to non-GAAP net income (loss):              
Stock-based compensation expense 2,470   2,268   3,073     10,295     11,810 
Amortization of acquired technology   144     144     144     575     471 
Amortization of other acquired intangible assets   109     108     107     435     398 
Restructuring charges and severance payments   576     48     30     907     400 
Write-down in value of property and equipment   227    —     —      227    —  
Adjustment to contingent consideration related to acquisition   90    —     —      90    —  
Tax impact of adjustments   (868)    (281)    3,444     (1,992)    1,231 
  Non-GAAP net income (loss)$  (366) $  205  $  4,164  $  2,821  $  12,973 
               
GAAP net loss per diluted share$  (0.10) $  (0.06) $  (0.08) $  (0.24) $  (0.04)
Non-GAAP net income (loss) per diluted share$  (0.01) $  0.01  $  0.13  $  0.09  $  0.39 
               
               
Shares used in diluted shares calculation   32,476   32,385   32,866     32,466   33,204 
               


Company Contacts: 
Christine Russell,Sonia Segovia,
Chief Financial OfficerIR Coordinator
Tel: (408) 938-6466Tel: (408) 938-6491
Email: christine.russell@pdf.comEmail: sonia.segovia@pdf.com 

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Source: PDF Solutions, Inc.