SAN JOSE, Calif., April 25, 2007 (PRIME NEWSWIRE) -- PDF Solutions, Inc. (Nasdaq:PDFS) the leading provider of process-design integration technologies to enhance IC manufacturability, today announced financial results for its first fiscal quarter ended March 31, 2007.
Revenue for the first fiscal quarter of 2007 totaled $22.1 million, an increase of 12%, compared with revenue of $19.9 million for the first fiscal quarter of 2006. Gain share revenue for the first fiscal quarter of 2007 totaled $4.9 million, compared to $5.0 million for the first fiscal quarter of 2006. On a GAAP basis, net loss for the first fiscal quarter of 2007 totaled approximately $2.4 million, or $0.08 per basic share, compared with net income of $268,000, or $0.01 per diluted share, for the first 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 and their related income tax effects. Using this non-GAAP measure, net income for the first fiscal quarter of 2007 totaled approximately $3.9 million, or $0.14 per diluted share, compared with non-GAAP net income of approximately $3.3 million, or $0.12 per diluted share, for the first fiscal quarter of 2006.
As previously announced, PDF will hold a live conference call beginning at 3:00 p.m. Pacific Time/6:00 p.m. Eastern Time today to discuss these results. A live web cast of this conference call will be available on PDF Solutions' website at http://ir.pdf.com/medialist.cfm. A web cast replay 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, and their related income tax effects. 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, and their related income tax effects, 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 a leading provider of process-design integration technologies for manufacturing integrated circuits (ICs). PDF Solutions' software, methodologies and services enable semiconductor companies to create IC designs that can be more easily manufactured using manufacturing processes that are more capable. By simulating deep sub-micron product and process interactions, the PDF solution offers clients reduced time to market, increased IC yield and performance, and enhanced product reliability and profitability. PDF Solutions also offers the industry leading Yield Management System (YMS) software, dataPOWER(r), and Fault Detection and Classification (FDC) software, Maestria(r), to enhance yield improvement and production control activities at leading fabrication facilities around the world. Headquartered in San Jose, Calif., PDF Solutions operates worldwide with additional offices in Europe, Japan and China. For more information, visit www.pdf.com.
The PDF Solutions, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3199
DataPOWER, Maestria and PDF Solutions are registered trademarks of PDF Solutions, Inc.
PDF SOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands)
March 31, December 31,
--------- ---------
2007 2006
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 32,083 $ 36,451
Short-term investments 18,419 16,402
Accounts receivable, net of allowances 35,099 27,575
Prepaid expenses and other current assets 2,720 2,796
Deferred tax assets 3,087 2,581
--------- ---------
Total current assets 91,408 85,805
Property and equipment, net 3,742 3,916
Goodwill 60,997 60,034
Intangible assets, net 11,004 13,605
Deferred tax assets 6,603 4,994
Other assets 533 503
--------- ---------
Total assets $ 174,287 $ 168,857
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 289 $ 302
Accounts payable 2,554 3,182
Accrued compensation and related benefits 5,364 3,325
Other accrued liabilities 2,283 3,843
Taxes payable 1,533 4,767
Deferred revenues 6,572 3,705
Billings in excess of recognized revenue 888 95
--------- ---------
Total current liabilities 19,483 19,219
Long-term debt 1,173 1,198
Long-term taxes payable 4,757 --
Other liabilities 177 221
--------- ---------
Total liabilities 25,590 20,638
--------- ---------
Stockholders' equity:
Common stock 4 4
Additional paid-in-capital 169,580 167,323
Treasury stock, at cost (5,549) (5,549)
Accumulated deficit (16,774) (13,890)
Accumulated other comprehensive income 1,436 331
--------- ---------
Total stockholders' equity 148,697 148,219
--------- ---------
Total liabilities and stockholders'
equity $ 174,287 $ 168,857
========= =========
PDF SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share amounts)
Three Months Ended
--------------------
March 31,
2007 2006
-------- --------
Revenue:
Design-to-silicon-yield solutions:
Integrated solutions $ 13,764 $ 12,229
Software licenses 3,485 2,612
Gain share 4,893 5,016
-------- --------
Total revenue 22,142 19,857
-------- --------
Cost and expenses:
Cost of design-to-silicon-yield solutions:
Direct costs of design-to-silicon-yield
solutions:
Integrated solutions 7,708 6,429
Software licenses 59 11
Amortization of acquired core technology 1,575 1,266
Research and development 8,370 6,256
Selling, general and administrative 5,844 4,956
Amortization of other acquired intangible
assets 1,013 235
-------- --------
Total costs and expenses 24,569 19,153
-------- --------
Income (loss)from operations (2,427) 704
Interest and other income, net 496 635
-------- --------
Income (loss) before taxes (1,931) 1,339
Tax provision 424 1,071
-------- --------
Net income (loss) $ (2,355) $ 268
======== ========
Net income (loss) per share:
Basic $ (0.08) $ 0.01
======== ========
Diluted $ (0.08) $ 0.01
======== ========
Weighted average common shares:
Basic 27,980 26,542
======== ========
Diluted 27,980 28,223
======== ========
PDF SOLUTIONS, INC.
IMPACT of NON-GAAP ADJUSTMENTS ON
REPORTED NET INCOME (LOSS) (UNAUDITED)
(In thousands, except per share amounts)
Three Months Ended
March 31, 2007
-----------------------------------------
As
reported Adjustments Non-GAAP
-------- ----------- --------
Revenue:
Design to-silicon-yield
solutions:
Integrated solutions $13,764 $13,764
Software licenses 3,485 3,485
Gain share 4,893 4,893
------- ------- -------
Total revenue 22,142 -- 22,142
------- ------- -------
Cost of design-to-silicon-
yield solutions:
Direct cost of design-to-
silicon-yield
solutions:
Integrated solutions 7,708 (493)(a) 7,215
Software licenses 59 59
Amortization of acquired
core technology 1,575 (1,575)(b) --
Research and development 8,370 (562)(a) 7,808
Selling, general and
administrative 5,844 (782)(a) 5,062
Amortization of other acquired
intangible assets 1,013 (1,013)(b) --
------- ------- -------
Total costs and expenses 24,569 (4,425) 20,144
------- ------- -------
Income (loss) from operations (2,427) 4,425 1,998
Interest and other income 496 496
------- ------- -------
Income (loss) before taxes (1,931) 4,425 2,494
Tax provision (benefit) 424 (1,810)(a,b) (1,386)
------- ------- -------
Net income (loss) $(2,355) $ 6,235 $ 3,880
======= ======= =======
Net income (loss) per share
- diluted $ (0.08) $ 0.22 $ 0.14
======= ======= =======
Weighted average common shares
- diluted 27,980 28,590 28,590(c)
======= ======= =======
PDF SOLUTIONS, INC.
IMPACT of NON-GAAP ADJUSTMENTS ON
REPORTED NET INCOME (LOSS) (UNAUDITED)
(In thousands, except per share amounts)
Three Months Ended
March 31, 2006
-----------------------------------------
As
reported Adjustments Non-GAAP
-------- ----------- --------
Revenue:
Design to-silicon-yield
solutions:
Integrated solutions $12,229 $12,229
Software licenses 2,612 2,612
Gain share 5,016 5,016
------- ------- -------
Total revenue 19,857 -- 19,857
------- ------- -------
Cost and expenses:
Cost of design-to-silicon
-yield solutions:
Direct cost of design-to-
silicon-yield solutions:
Integrated solutions 6,429 (621)(a) 5,808
Software licenses 11 11
Amortization of acquired
core technology 1,266 (1,266)(b) --
Research and development 6,256 (618)(a) 5,638
Selling, general and
administrative 4,956 (929)(a) 4,027
Amortization of other acquired
intangible assets 235 (235)(b) --
------- ------- -------
Total costs and expenses 19,153 (3,669) 15,484
------- ------- -------
Income (loss) from operations 704 3,669 4,373
Interest and other income 635 635
------- ------- -------
Income (loss) before taxes 1,339 3,669 5,008
Tax provision (benefit) 1,071 673(a,b) 1,744
------- ------- -------
Net income (loss) $ 268 $ 2,996 $ 3,264
======= ======= =======
Net income (loss) per share
- diluted $ 0.01 $ 0.11 $ 0.12
======= ======= =======
Weighted average common
shares - diluted 28,223 28,223 28,223
======= ======= =======
Notes:
(a) The non-GAAP adjustments represent the reversal of stock-based
compensation, net of taxes.
(b) The non-GAAP adjustments represent the reversal of amortization
of intangible assets, net of taxes.
(c) The shares used in computing non-GAAP net income for the three
months ended March 31, 2007 and 2006 include the dilutive impact
of common stock options.