SAN JOSE, Calif., Feb. 7, 2008 (PRIME NEWSWIRE) -- PDF Solutions(r), Inc. (Nasdaq:PDFS) the leading provider of yield improvement technologies and services for the integrated circuit (IC) manufacturing process lifecycle, today announced financial results for its fourth fiscal quarter ended December 31, 2007.
Total revenue for the fourth fiscal quarter of 2007 totaled $24.6 million, an increase of 30%, compared with total revenue of $19.0 million for the fourth fiscal quarter of 2006. Gain share revenue for the fourth fiscal quarter of 2007 totaled $6.5 million, an increase of 33%, compared to $4.9 million for the fourth fiscal quarter of 2006. Total revenue for the full fiscal year ended December 31, 2007 totaled a record $94.5 million, compared with total revenue of $76.2 million for the full fiscal year ended December 31, 2006, an increase of 24%. Gain share revenue for the full fiscal year ended December 31, 2007 totaled a record $24.1 million compared with gain share revenue of $20.0 million for the full fiscal year ended December 31, 2006, an increase of 20%. Net income for the fourth fiscal quarter of 2007 totaled $1.1 million, or $0.04 per diluted share, compared with a net loss of $430,000, or $0.02 per basic and diluted share, for the fourth fiscal quarter of 2006.
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 intangible assets, write-off of in-process research and development, and their related income tax effects, as applicable. Using this non-GAAP measure, net income for the fourth fiscal quarter of 2007 totaled $5.8 million, or $0.21 per diluted share, compared with non-GAAP net income of $2.3 million, or $0.08 per diluted share, for the fourth fiscal quarter of 2006.
Additionally, during the fourth quarter ended December 31, 2007, PDF Solutions utilized a portion of the $10 million share repurchase plan previously authorized by its Board of Directors to repurchase 201,300 of its shares on the open market at a weighted average cost of $7.57, for a total repurchase value of $1.5 million.
As previously announced, PDF 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/medialist.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 measure, 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 intangible assets, write-off of in-process research and development, 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 intangible assets, write-off of in-process research and development, 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 neither category of expense has a current effect on the future uses of cash 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. (Nasdaq: PDFS) is the leading provider of yield improvement technologies and services for the IC manufacturing process lifecycle. 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 and Korea. For the company's latest news and information, visit http://www.pdf.com/.
Characterization Vehicle, CV, dataPOWER, Maestria, PDF Solutions, and the PDF Solutions logo are registered trademarks of PDF Solutions, Inc.
The PDF Solutions, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3199
PDF SOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands)
Dec. 31, Dec. 31,
2007 2006
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 35,315 $ 36,451
Short-term investments 9,949 16,402
Accounts receivable 38,526 27,575
Prepaid expenses and other current assets 3,354 2,796
Deferred tax assets 1,676 2,581
--------- ---------
Total current assets 88,820 85,805
Property and equipment, net 3,621 3,916
Goodwill 65,170 60,034
Intangible assets, net 12,818 13,605
Long-term deferred tax assets 8,458 4,994
Other assets 464 503
--------- ---------
Total assets $179,351 $168,857
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 421 $ 302
Accounts payable 3,469 3,182
Accrued compensation and related benefits 5,950 3,325
Other accrued liabilities 2,604 3,843
Taxes payable 208 4,767
Deferred revenue 3,159 3,705
Billings in excess of recognized revenue 553 95
--------- ---------
Total current liabilities 16,364 19,219
Long-term debt 907 1,198
Long-term taxes payable 5,581 --
Long-term other liabilities 29 221
--------- ---------
Total liabilities 22,881 20,638
--------- ---------
Stockholders' equity:
Common stock 4 4
Additional paid-in-capital 181,566 167,323
Treasury stock at cost (11,524) (5,549)
Accumulated deficit (16,892) (13,890)
Accumulated other comprehensive income 3,316 331
--------- ---------
Total stockholders' equity 156,470 148,219
--------- ---------
Total liabilities and stockholders' equity $179,351 $168,857
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PDF SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share amounts)
Three Months Ended Year Ended
------------------ ------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2007 2006 2007 2006
-------- -------- -------- --------
Revenue:
Design-to-silicon-yield
solutions
Services $17,641 $11,523 $63,731 $45,382
Software licenses 417 2,557 6,645 10,774
Gain share 6,497 4,873 24,087 20,028
-------- -------- -------- --------
Total revenue 24,555 18,953 94,463 76,184
-------- -------- -------- --------
Cost of design-to-silicon-yield
solutions:
Direct costs of
design-to-silicon-yield
solutions
Services 9,437 7,610 32,279 27,418
Software licenses 57 111 191 209
Amortization of acquired
core technology 632 1,472 5,148 5,270
-------- -------- -------- --------
Total cost of
design-to-silicon-yield
solutions 10,126 9,193 37,618 32,897
-------- -------- -------- --------
Gross margin 14,429 9,760 56,845 43,287
Operating expenses:
Research and development 9,899 8,070 36,074 27,613
Selling, general and
administrative 6,613 4,964 24,891 19,814
Amortization of other
acquired intangible assets 393 754 3,422 1,459
Write-off of in-process
research and development -- 800 -- 800
-------- -------- -------- --------
Total operating expenses 16,905 14,588 64,387 49,686
-------- -------- -------- --------
Loss from operations (2,476) (4,828) (7,542) (6,399)
Interest and other income, net 544 489 1,891 2,827
-------- -------- -------- --------
Loss before taxes (1,932) (4,339) (5,651) (3,572)
Income tax benefit (3,000) (3,909) (2,724) (3,133)
-------- -------- -------- --------
Net income (loss) $1,068 $ (430) $(2,927) $ (439)
======== ======== ======== ========
Net income (loss) per share:
Basic $ 0.04 $ (0.02) $ (0.10) $ (0.02)
======== ======== ======== ========
Diluted $ 0.04 $ (0.02) $ (0.10) $ (0.02)
======== ======== ======== ========
Weighted average common shares:
Basic 27,964 27,459 28,066 26,885
======== ======== ======== ========
Diluted 28,246 27,459 28,066 26,885
======== ======== ======== ========
PDF SOLUTIONS, INC.
NON-GAAP RESULTS
(In thousands, except per share amounts)
Three Months Ended
-----------------
Dec. 31, Dec. 31,
2007 2006
-------- --------
GAAP net income (loss) $ 1,068 $ (430)
Stock-based compensation expense - cost
of design-to-silicon-yield solutions 765 596
Stock-based compensation expense - research
and development 888 599
Stock-based compensation expense - selling,
general and administrative 1,124 695
Amortization of acquired core technology 632 1,472
Amortization of other acquired intangible assets 393 754
Write-off of in-process research and development -- 800
Tax impact on reversal of stock-based compensation
expense and amortization of
intangible assets 976 (2,165)
-------- --------
Non-GAAP net income $ 5,846 $ 2,321
======== ========
GAAP net income (loss) per diluted share $ 0.04 $ (0.02)
Non-GAAP net income per diluted share $ 0.21 $ 0.08
Shares used in computing diluted non-GAAP
measure of net income per share 28,246 28,484