SAN JOSE, Calif., Feb. 6, 2007 (PRIME NEWSWIRE) -- PDF Solutions, Inc. (Nasdaq:PDFS), the leading provider of process-design integration technologies to enhance IC manufacturability, today provided its updated financial outlook for the first fiscal quarter ending March 31, 2007 and the total fiscal year ending December 31, 2007.
PDF Solutions expects total revenue in the range of $21.5 million to $22.5 million for the first fiscal quarter ending March 31, 2007. Gain share revenue for the first quarter is expected to be in the range of $4.7 million to $5.2 million. On a GAAP basis, net loss for the first fiscal quarter of 2007 is projected in a range of $1.7 million to $2.2 million, or $0.06 to $0.08 per basic share.
For the total fiscal year ending December 31, 2007, PDF Solutions expects total revenue in the range of $105.0 million to $111.0 million. On a GAAP basis, net income for the total fiscal year ending December 31, 2007 is projected in a range of $4.3 million to $6.2 million, or $0.14 to $0.21 per diluted share.
In addition to using GAAP results in evaluating PDF Solutions' business, management also believes it useful to measure results using a non-GAAP measure of net income, which excludes amortization of stock-based compensation and acquired intangible assets. Non-GAAP net income for the first fiscal quarter ending March 31, 2007 is projected in a range of $3.7 million to $4.3 million, or $0.13 to $0.15 per diluted share. Non-GAAP net income for the total fiscal year ending December 31, 2007 is projected in a range of $21.4 million to $23.3 million, or $0.72 to $0.78 per diluted share.
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 its fourth quarter 2006 results and financial outlook for the first fiscal quarter and fiscal year 2007. A live webcast of this conference call will be available on PDF Solutions' website at http://ir.pdf.com/medialist.cfm. A replay of the call 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 most directly 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 the company's website at http://www.pdf.com/news_archive.phtml following the date of this release.
Effectiveness of Guidance:
The outlook set forth above represents PDF Solutions' expectations only as of the date of this release, and should not be viewed as a statement about PDF Solutions' expectations after this date. Although this release will remain available on PDF Solutions' website, its continued availability does not indicate that PDF Solutions is reaffirming or confirming its continued validity. PDF Solutions does not intend to report on its progress, or provide comments to analysts or investors on, or otherwise update, such guidance until it releases its quarterly results.
Information Regarding Use of Non-GAAP Financial Measures:
In addition to providing guidance that is 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 and 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 and amortization of acquired intangible assets, and their 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. This non-GAAP guidance 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 as viewed by management. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measure is provided at the end of this press release.
About PDF Solutions:
PDF Solutions, Inc. (Nasdaq:PDFS) is the 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(tm), 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.
dataPOWER and PDF Solutions(r) are registered trademarks, and Maestria is a trademark, of PDF Solutions, Inc.
The PDF Solutions, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3199
Forward-Looking Statements:
The statements in this press release regarding PDF Solutions' outlook for its first fiscal quarter and fiscal year 2007, including expected revenue, net income, and net income per share, are forward looking. 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: any unforeseen industry changes; difficulties in modifying PDF's solutions on a timely basis; and changes in the marketplace for our solutions, including the introduction of products or services competitive with PDF Solutions' products and services. Readers should also refer to the risk disclosures set forth in PDF Solutions' periodic public filings with the Securities and Exchange Commission, including, without limitation, its annual report on Form 10-K, most recently filed on March 16, 2006, and its quarterly reports on Form 10-Q, most recently filed on November 21, 2006. The forward-looking statements contained in this release 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.
PDF SOLUTIONS, INC.
RECONCILIATION OF PROJECTED GAAP NET INCOME (LOSS) TO PROJECTED
NON-GAAP NET INCOME
(In thousands, except per share data)
Three Months Ending
PROJECTED RESULTS March 31, 2007
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GAAP net income (loss) per share - basic $(0.08) to $(0.06)
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GAAP net income (loss) $(2,200) to $(1,650)
Amortization of stock-based compensation,
net of taxes 2,430 2,430
Amortization of acquired intangible
assets, net of taxes 3,475 3,475
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Non-GAAP net income $ 3,705 to $ 4,255
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Non-GAAP net income per share - diluted $ 0.13 to $ 0.15
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Weighted average common shares - basic 27,750 27,750
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Weighted average common shares - diluted 29,000 29,000
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PROJECTED RESULTS Twelve Months Ending
December 31, 2007
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GAAP net income per share - diluted $ 0.14 to $ 0.21
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GAAP net income $4,250 to $ 6,200
Amortization of stock-based compensation,
net of taxes 8,740 8,740
Amortization of acquired intangible
assets, net of taxes 8,360 8,360
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Non-GAAP net income $21,350 to $23,300
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Non-GAAP net income per share - diluted $ 0.72 to $ 0.78
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Weighted average common shares - diluted 29,750 29,750
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