SAN JOSE, Calif., Feb. 5, 2009 (GLOBE NEWSWIRE) -- PDF Solutions, Inc. (Nasdaq:PDFS), the leading provider of yield improvement technologies and services for the integrated circuit (IC) manufacturing process life cycle, today announced financial results for its fourth fiscal quarter ended December 31, 2008.
Total revenue for the fourth fiscal quarter of 2008 totaled $13.8 million, down 26% from $18.8 million in the third fiscal quarter of 2008 and down 44% when compared with total revenue of $24.6 million for the fourth fiscal quarter of 2007. Gain share revenue totaled $2.5 million, down 53% from $5.4 million in the third fiscal quarter of 2008 and down 61% when compared to gain share revenue of $6.5 million for the fourth fiscal quarter of 2007.
Net loss for the fourth fiscal quarter was $79.1 million, or $2.92 per basic and diluted share, compared to a net loss of $12.2 million, or $0.44 per basic and diluted share in the third fiscal quarter of 2008 and net income for the fourth fiscal quarter of 2007 of $1.1 million, or $0.04 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 (loss), which excludes stock-based compensation expense, amortization of acquired technology and intangible assets, restructuring charges, impairment charges on goodwill and certain intangible assets, and their related income tax effects, as applicable. Using this non-GAAP measure, the non-GAAP net loss for the fourth fiscal quarter of 2008 totaled $3.8 million or $0.14 per basic and diluted share, compared with non-GAAP net income of $5.9 million, or $0.21 per basic and diluted share, for the fourth fiscal quarter of 2007.
During the fourth quarter ended December 31, 2008, PDF Solutions utilized a portion of the $10 million share repurchase plan previously authorized by its Board of Directors to repurchase 1.7 million of its shares on the open market at a weighted average cost of $2.26 per share, for a total repurchase value of $3.8 million. Early in the fourth quarter ended December 31, 2008, PDF Solutions completed its acquisition of the fault detection and classification business of Triant Holdings, Inc., a British Columbia corporation utilizing an additional $1.6 million. Additional information regarding this acquisition is described in the filings by the Company with the Securities and Exchange Commission on September 2, 2008 and October 14, 2008 on Form 8-K.
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. 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/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, impairment charges on goodwill and certain intangible assets, 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 Solutions' operating results. These non-GAAP financial measures are used by management internally to measure the company's profitability and performance. PDF Solutions' management believes that excluding the effects of stock-based compensation expense, amortization of acquired technology and intangible assets, restructuring charges, impairment charges on goodwill and certain intangible assets, 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 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 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 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.globenewswire.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)
December 31, December 31,
2008 2007
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 31,686 $ 35,315
Short-term investments 9,051 9,949
Accounts receivable (net) 24,989 38,526
Prepaid expenses, deferred tax
assets, and other current
assets 5,147 5,030
------------ ------------
Total current assets 70,873 88,820
Property and equipment, net 2,675 3,621
Non-current investments 718 --
Goodwill -- 65,170
Intangible assets, net 4,730 12,818
Deferred tax assets and other
non-current assets 631 8,922
------------ ------------
Total assets $ 79,627 $ 179,351
============ ============
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Current portion of long-term
debt $ 370 $ 421
Accounts payable 1,384 3,469
Accrued compensation and
related benefits 7,169 5,950
Taxes Payable and other accrued
liabilities 3,079 2,812
Deferred revenue 1,792 3,159
Billings in excess of
recognized revenue 748 553
------------ ------------
Total current liabilities 14,542 16,364
Long-term debt 512 907
Long-term taxes payable 3,356 5,581
Long-term other liabilities 1,447 29
------------ ------------
Total liabilities 19,857 22,881
------------ ------------
Stockholders' equity:
Common stock 4 4
Additional paid-in-capital 189,132 181,566
Treasury stock at cost (18,402) (11,524)
Accumulated deficit (112,620) (16,892)
Accumulated other comprehensive
income 1,656 3,316
------------ ------------
Total stockholders' equity 59,770 156,470
------------ ------------
Total liabilities and
stockholders' equity $ 79,627 $ 179,351
============ ============
PDF SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------- ---------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Revenues:
Design-to-silicon-
yield solutions $ 11,289 $ 18,058 $ 55,113 $ 70,376
Gainshare performance
incentives 2,522 6,497 18,924 24,087
--------- --------- --------- ---------
Total revenues 13,811 24,555 74,037 94,463
--------- --------- --------- ---------
Cost of design-to-
silicon-yield
solutions:
Direct costs of
design-to-silicon-
yield solutions 6,926 9,494 29,111 32,470
Amortization of
acquired technology 699 632 2,592 5,148
--------- --------- --------- ---------
Total cost of
design-to-silicon-
yield solutions 7,625 10,126 31,703 37,618
--------- --------- --------- ---------
Gross margin 6,186 14,429 42,334 56,845
Operating expenses:
Research and
development 7,949 9,899 33,994 36,074
Selling, general and
administrative 4,432 6,613 21,778 24,891
Amortization of other
acquired intangible
assets 310 393 893 3,422
Restructuring charges 1,929 -- 3,400 --
Impairment on
goodwill and
intangible assets 70,251 -- 70,251 --
--------- --------- --------- ---------
Total operating
expenses 84,871 16,905 130,316 64,387
--------- --------- --------- ---------
Loss from operations (78,685) (2,476) (87,982) (7,542)
Interest and other
income (expense),
net (44) 544 353 1,891
--------- --------- --------- ---------
Loss before taxes (78,729) (1,932) (87,629) (5,651)
Income tax
provision
(benefit) 322 (3,000) 8,099 (2,724)
--------- --------- --------- ---------
Net income (loss) $ (79,051) $ 1,068 $ (95,728) $ (2,927)
========= ========= ========= =========
Net income (loss)
per share:
Basic $ (2.92) $ 0.04 $ (3.48) $ (0.10)
========= ========= ========= =========
Diluted $ (2.92) $ 0.04 $ (3.48) $ (0.10)
========= ========= ========= =========
Weighted average
common shares:
Basic 27,065 27,964 27,514 28,066
========= ========= ========= =========
Diluted 27,065 28,246 27,514 28,066
========= ========= ========= =========
PDF SOLUTIONS, INC.
NON-GAAP RESULTS (UNAUDITED)
(In thousands, except per share amounts)
Three Months Ended December 31,
-------------------------------
2008 2007
--------- ---------
GAAP net income (loss) $ (79,051) $ 1,068
Stock-based compensation expense
- cost of design-to-silicon-
yield solutions 496 765
Stock-based compensation expense
- research and development 552 888
Stock-based compensation expense
- selling, general and
administrative 730 1,124
Amortization of acquired core
technology 699 632
Amortization of other acquired
intangible assets 310 393
Restructuring charges 1,929 --
Impairment on goodwill and
intangible assets 70,251 --
Tax impact 322 976
--------- ---------
Non-GAAP net income (loss) $ (3,762) $ 5,846
========= =========
Net income (loss) per basic and
diluted share $ (2.92) $ 0.04
========= =========
Non-GAAP net income (loss) per
diluted share $ (0.14) $ 0.21
========= =========
Shares used in computing diluted
non-GAAP measure of net income
(loss) per share 27,065 28,246
========= =========