SAN JOSE, Calif., April 28, 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 first fiscal quarter ended March 31, 2009.
Total revenue for the first fiscal quarter of 2009 totaled $10.2 million, down 26% from $13.8 million in the fourth fiscal quarter of 2008 and down 50% when compared with total revenue of $20.3 million for the first fiscal quarter of 2008. Gain share revenue totaled $2.4 million, down 5% from $2.5 million in the fourth fiscal quarter of 2008 and down 55% when compared to gain share revenue of $5.3 million for the first fiscal quarter of 2008.
Net loss for the first fiscal quarter was $7.3 million, or $0.28 per basic and diluted share, compared to a net loss of $79.1 million, or $2.92 per basic and diluted share in the fourth fiscal quarter of 2008 and net loss for the first fiscal quarter of 2008 of $2.5 million, or $0.09 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 loss, which excludes stock-based compensation expense, amortization of acquired technology and intangible assets, restructuring charges, and their related income tax effects, as applicable. Using this non-GAAP measure, the non-GAAP net loss for the first fiscal quarter of 2009 totaled $5.1 million or $0.20 per basic and diluted share, compared with non-GAAP net loss of $429,000, or $0.02 per basic and diluted share, for the first fiscal quarter of 2008.
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, 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, 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, ModelWare, PDF Solutions, and the PDF Solutions logo are registered trademarks of PDF Solutions, Inc.
PDF SOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands)
March 31, December 31,
2009 2008
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 32,780 $ 31,686
Short-term investments 6,354 9,051
Accounts receivable, net 20,387 24,989
Prepaid expenses, deferred tax assets,
and other current assets 3,864 5,147
------------ ------------
Total current assets 63,385 70,873
Property and equipment, net 2,427 2,675
Non-current investments 718 718
Intangible assets, net 4,280 4,730
Deferred tax assets and other non-current
assets 626 631
------------ ------------
Total assets $ 71,436 $ 79,627
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 336 $ 370
Accounts payable 1,715 1,384
Accrued compensation and related
benefits 5,850 6,525
Taxes payable and other accrued
liabilities 3,318 3,723
Deferred revenues 2,057 1,792
Billings in excess of recognized revenue 247 748
------------ ------------
Total current liabilities 13,523 14,542
Long-term debt 461 512
Long-term taxes payable 3,354 3,356
Long-term other liabilities 1,400 1,447
------------ ------------
Total liabilities 18,738 19,857
------------ ------------
Stockholders' equity:
Common stock 4 4
Additional paid-in-capital 190,685 189,132
Treasury stock at cost (18,402) (18,402)
Accumulated deficit (119,941) (112,620)
Accumulated other comprehensive income 352 1,656
------------ ------------
Total stockholders' equity 52,698 59,770
------------ ------------
Total liabilities and stockholders'
equity $ 71,436 $ 79,627
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PDF SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share amounts)
Three Months Ended
March 31,
-------------------
2009 2008
--------- ---------
Revenues:
Design-to-silicon-yield solutions $ 7,794 $ 15,024
Gainshare performance incentives 2,396 5,323
--------- ---------
Total revenues 10,190 20,347
--------- ---------
Cost of design-to-silicon-yield solutions:
Direct costs of design-to-silicon-yield
solutions 6,290 7,766
Amortization of acquired technology 359 631
--------- ---------
Total cost of design-to silicon-yield
solutions 6,649 8,397
--------- ---------
Gross margin 3,541 11,950
Operating expenses:
Research and development 5,807 9,076
Selling, general and administrative 4,413 6,299
Amortization of other acquired intangible
assets 69 194
Restructuring charges 633 --
--------- ---------
Total operating expenses 10,922 15,569
--------- ---------
Loss from operations (7,381) (3,619)
Interest and other income, net 324 489
--------- ---------
Loss before taxes (7,057) (3,130)
Income tax provision (benefit) 264 (617)
--------- ---------
Net loss $ (7,321) $ (2,513)
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Net loss per share - basic and diluted $ (0.28) $ (0.09)
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Weighted average common shares - basic and
diluted 26,092 27,840
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PDF SOLUTIONS, INC.
NON-GAAP RESULTS (UNAUDITED)
(In thousands, except per share amounts)
Three Months Ended
March 31,
-------------------
2009 2008
--------- ---------
GAAP net loss $ (7,321) $ (2,513)
Stock-based compensation expense - cost of
design-to-silicon-yield solutions 389 530
Stock-based compensation expense - research and
development 348 595
Stock-based compensation expense - selling,
general and administrative 399 858
Amortization of acquired technology 360 631
Amortization of other acquired intangible assets 69 194
Restructuring charges 633 --
Tax impact on reversal of stock-based compensation
and amortization of intangible assets -- (724)
--------- ---------
Non-GAAP net loss $ (5,123) $ (429)
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GAAP net loss per basic and diluted share $ (0.28) $ (0.09)
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Non-GAAP net loss per diluted share $ (0.20) $ (0.02)
========= =========
Shares used in computing diluted non-GAAP measure
of net loss per share 26,092 27,840
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