Exhibit 99.1
News Release
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| Investor Relations Contact: | | Corporate Communications Contact: |
| Rochelle Krause | | Abbie Kendall |
| PDF Solutions, Inc. | | Armstrong Kendall, Inc. |
| Tel: (408) 938-6437 | | Tel: (503) 672-4681 |
| Email: rochelle.krause@pdf.com | | Email: abbie@akipr.com |
PDF Solutions® Reports Second Quarter 2003
Financial Results
SAN JOSE, Calif.—July 24, 2003—PDF Solutions, Inc. (Nasdaq: PDFS) the leading provider of process-design integration technologies to enhance IC manufacturability, today announced financial results for its second fiscal quarter ended June 30, 2003.
Revenue for the second fiscal quarter of 2003 totaled $10.1 million, a decrease of 18% compared with revenue of $12.2 million for the second fiscal quarter of 2002. Pro forma net loss for the second fiscal quarter of 2003, excluding amortization of stock-based compensation and intangibles, totaled $265,000, or $0.01 per diluted share, compared with pro forma net income of $1.4 million, or $0.06 per diluted share, for the second fiscal quarter of 2002. Reported net loss for the second fiscal quarter of 2003 totaled $676,000, or $0.03 per diluted share, compared with a reported net income of $565,000, or $0.02 per diluted share, for the second fiscal quarter of 2002.
“Financial results for the quarter were in the range of prior revenue and pro forma earnings per share guidance,” said John Kibarian, PDF’s President and Chief Executive Officer. “In addition, we see accelerated customer interest in our solutions earlier in both process- and design-development cycles. This highlights that process-design interactions are becoming critical issues as the industry continues to move toward nanometer processes.”
As previously announced, the company will hold a live conference call beginning at 3:00 p.m. PDT/6:00 p.m. EDT today to discuss the quarterly results. A live
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webcast of this teleconference will be available on the company’s 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 the company’s 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.
About PDF Solutions
PDF Solutions, Inc. (Nasdaq: PDFS) is the leading provider of process-design integration technologies for manufacturing integrated circuits (ICs). PDF’s 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. Headquartered in San Jose, Calif., PDF Solutions operates worldwide with additional offices in Europe and Japan. For more information, visit www.pdf.com.
PDF Solutions® is a registered trademark of PDF Solutions, Inc.
Forward-Looking Statements
Some of the statements in this press release are forward looking, including the statements regarding the level of customer interest in PDF's solutions. The words “estimate”, “project”, “expect”, “believe” and similar expressions also identify forward-looking statements. Actual results could differ materially from those expressed in any forward-looking statements. Risks and uncertainties that could cause results to differ materially include risks associated with: any unforeseen industry changes; changes in general market conditions, 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’s products and services. Readers should also refer to the risk disclosures set forth in PDF’s Report on Form 10-K filed with the SEC on March 26, 2003 and Report on Form 10-Q filed with the SEC on May 14, 2003. The forward-looking statements contained in this release are made as of the date hereof, and PDF does not assume any obligation to update such statements nor the reasons why actual results could differ materially from those projected in such statements.
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PDF SOLUTIONS, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands)
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| | | | | | | June 30, | | December 31, |
| | | | | | | 2003 | | 2002 |
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ASSETS | | | | | | | | |
| Current assets: | | | | | | | | |
| | Cash and cash equivalents | | $ | 67,073 | | | $ | 71,490 | |
| | Accounts receivable, net of allowances | | | 6,584 | | | | 7,924 | |
| | Prepaid expenses and other current assets | | | 5,006 | | | | 4,406 | |
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| | | | Total current assets | | | 78,663 | | | | 83,820 | |
| Property and equipment, net | | | 3,453 | | | | 3,533 | |
| Goodwill | | | 662 | | | | 662 | |
| Intangible assets, net | | | 4,195 | | | | 220 | |
| Other assets | | | 1,815 | | | | 1,564 | |
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| | | | Total assets | | $ | 88,788 | | | $ | 89,799 | |
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LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
| Current liabilities: | | | | | | | | |
| | Accounts payable | | $ | 1,370 | | | $ | 499 | |
| | Accrued compensation and related benefits | | | 1,910 | | | | 1,143 | |
| | Other accrued liabilities | | | 1,364 | | | | 1,652 | |
| | Taxes payable | | | 686 | | | | 1,838 | |
| | Deferred revenues | | | 2,163 | | | | 4,496 | |
| | Billings in excess of recognized revenue | | | 274 | | | | 606 | |
| | Other liabilities | | | 1,500 | | | | — | |
| | Current portion of long-term debt | | | 17 | | | | 17 | |
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| | | | Total current liabilities | | | 9,284 | | | | 10,251 | |
| Long-term debt | | | 6 | | | | 15 | |
| Deferred tax liability | | | 753 | | | | 752 | |
| Deferred rent | | | 49 | | | | 39 | �� |
| Stockholders’ equity: | | | | | | | | |
| | | Common stock | | | 3 | | | | 3 | |
| | | Additional paid-in-capital | | | 100,641 | | | | 99,884 | |
| | | Deferred stock-based compensation | | | (545 | ) | | | (1,340 | ) |
| | | Notes receivable from stockholders | | | (4,614 | ) | | | (4,998 | ) |
| | | Accumulated deficit | | | (16,855 | ) | | | (14,845 | ) |
| | | Cumulative other comprehensive income | | | 66 | | | | 38 | |
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| | | | Total stockholders’ equity | | | 78,696 | | | | 78,742 | |
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| | | | Total liabilities and stockholders’ equity | | $ | 88,788 | | | $ | 89,799 | |
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PDF SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share data)
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| | | | | Three Months Ended | | Six Months Ended |
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| | | | | June 30, | | June 30, | | June 30, | | June 30, |
| | | | | 2003 | | 2002 | | 2003 | | 2002 |
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| Revenue: | | | | | | | | | | | | | | | | |
| | Design-to-silicon yield solutions | | $ | 8,034 | | | $ | 9,505 | | | $ | 16,142 | | | $ | 17,885 | |
| | Gain share | | | 2,056 | | | | 2,731 | | | | 3,015 | | | | 5,808 | |
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| | | Total revenue | | $ | 10,090 | | | $ | 12,236 | | | $ | 19,157 | | | $ | 23,693 | |
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| Cost and expenses: | | | | | | | | | | | | | | | | |
| | Cost of design-to-silicon yield | | | 3,514 | | | | 4,110 | | | | 6,958 | | | | 7,974 | |
| | Research and development | | | 4,453 | | | | 3,964 | | | | 8,785 | | | | 7,154 | |
| | Selling, general and administrative | | | 2,994 | | | | 2,614 | | | | 5,697 | | | | 5,168 | |
| | Stock-based compensation amortization* | | | 329 | | | | 770 | | | | 978 | | | | 1,558 | |
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| | | Total costs and expenses | | | 11,290 | | | | 11,458 | | | | 22,418 | | | | 21,854 | |
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| Income (loss) from operations | | | (1,200 | ) | | | 778 | | | | (3,261 | ) | | | 1,839 | |
| Interest and other income | | | 345 | | | | 338 | | | | 720 | | | | 697 | |
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| Income (loss) before taxes | | | (855 | ) | | | 1,116 | | | | (2,541 | ) | | | 2,536 | |
| Tax (benefit) provision | | | (179 | ) | | | 551 | | | | (531 | ) | | | 1,391 | |
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| Net income (loss) | | $ | (676 | ) | | $ | 565 | | | $ | (2,010 | ) | | $ | 1,145 | |
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| Net income (loss) per share: | | | | | | | | | | | | | | | | |
| | Basic | | $ | (0.03 | ) | | $ | 0.03 | | | $ | (0.09 | ) | | $ | .0.05 | |
| | Diluted | | $ | (0.03 | ) | | $ | 0.02 | | | $ | (0.09 | ) | | $ | 0.05 | |
| Weighted average common shares: | | | | | | | | | | | | | | | | |
| | Basic | | | 22,614 | | | | 21,814 | | | | 22,551 | | | | 21,726 | |
| | Diluted | | | 22,614 | | | | 22,943 | | | | 22,551 | | | | 23,192 | |
| * Stock-based compensation amortization: | | | | | | | | | | | | | | | | |
| | Cost of design-to-silicon yield solutions | | $ | 86 | | | $ | 223 | | | $ | 216 | | | $ | 486 | |
| | Research and development | | | 155 | | | | 366 | | | | 563 | | | | 804 | |
| | Selling, general and administrative | | | 88 | | | | 181 | | | | 199 | | | | 268 | |
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| | | $ | 329 | | | $ | 770 | | | $ | 978 | | | $ | 1,558 | |
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PDF SOLUTIONS, INC.
RECONCILIATION OF REPORTED GAAP NET INCOME (LOSS) TO PRO FORMA NET INCOME (LOSS)
(UNAUDITED)
(In thousands, except per share data)
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| | | | | | | Three Months Ended |
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| | | | | | | June 30, | | June 30, |
| | | | | | | 2003 | | 2002 |
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| Net income (loss) | | | | | | $ | (676 | ) | | $ | 565 | |
| Stock-based compensation amortization | | | | | | | 329 | | | | 770 | |
| Amortization of intangibles, net | | | | | | | 82 | | | | 28 | |
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| Pro forma net income (loss) | | | | | | $ | (265 | ) | | $ | 1,363 | |
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| Pro forma net income (loss) per share – diluted | | | | | | $ | (0.01 | ) | | $ | 0.06 | |
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| Weighted average common shares – diluted | | | | | | | 22,614 | | | | 22,943 | |
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