EXHIBIT 99.1
News Release
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 Third Quarter 2003 Financial Results
SAN JOSE, Calif.—October 23, 2003—PDF Solutions, Inc. (Nasdaq: PDFS) the leading provider of process-design integration technologies to enhance IC manufacturability, today announced financial results for its third fiscal quarter ended September 30, 2003.
Revenue for the third fiscal quarter of 2003 totaled $11.3 million, an increase of 2% compared with revenue of $11.0 million for the third fiscal quarter of 2002. Pro forma net income for the third fiscal quarter of 2003, excluding amortization of stock-based compensation and acquired intangible assets and the write-off of in-process research and development resulting from the acquisition of IDS Software Systems, Inc., totaled $332,000, or $0.01 per diluted share, compared with pro forma net income of $853,000, or $0.04 per diluted share, for the third fiscal quarter of 2002. Reported net loss for the third fiscal quarter of 2003 totaled $1.2 million, or $0.05 per diluted share, compared with reported net income of $185,000, or $0.01 per diluted share, for the third fiscal quarter of 2002.
“We are pleased with our third fiscal quarter financial results and we are excited about the opportunities that lie ahead,” said John Kibarian, PDF’s President and Chief Executive Officer. “Closing the acquisition of IDS Software Systems, commencing the full integration of the people and the dataPOWER™ yield management products into PDF Solutions, and the public debut of our process-aware pDfx™ environment positions PDF to provide even more comprehensive yield improvement solutions to our customers as their need for such solutions continues to grow.”
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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 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, and dataPOWER™ and pDfx™ are trademarks, of PDF Solutions, Inc.
Forward-Looking Statements
Some of the statements in this press release are forward looking, including the statements regarding future market and revenue opportunities, and PDF’s ability to integrate acquired technologies and gain market acceptance for new product offerings, at all or in a timely manner. The words “estimate”, “project”, “expect”, “believe”, “continues” 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; 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 periodic public filings with the SEC, including, without limitation, its reports on Form 10-K, most recently filed on April 26, 2003, and on Form 10-Q, most recently filed on August 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.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, | December 31, | |||||||||||
2003 | 2002 | |||||||||||
(audited) | ||||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 46,567 | $ | 71,490 | ||||||||
Accounts receivable, net of allowances | 9,701 | 7,924 | ||||||||||
Prepaid expenses and other current assets | 4,004 | 4,406 | ||||||||||
Total current assets | 60,272 | 83,820 | ||||||||||
Property and equipment, net | 4,024 | 3,533 | ||||||||||
Goodwill | 40,721 | 662 | ||||||||||
Intangible assets, net | 24,666 | 220 | ||||||||||
Other assets | 4,756 | 1,564 | ||||||||||
Total assets | $ | 134,439 | $ | 89,799 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 1,429 | $ | 499 | ||||||||
Accrued compensation and related benefits | 2,238 | 1,143 | ||||||||||
Other accrued liabilities | 2,433 | 1,669 | ||||||||||
Other acquisition obligations | 7,646 | — | ||||||||||
Taxes payable | 2,990 | 1,838 | ||||||||||
Deferred revenues | 2,256 | 4,496 | ||||||||||
Billings in excess of recognized revenue | 333 | 606 | ||||||||||
Total current liabilities | 19,325 | 10,251 | ||||||||||
Deferred tax liability | 8,985 | 752 | ||||||||||
Deferred rent | 102 | 39 | ||||||||||
Long-term liabilities | 194 | 15 | ||||||||||
Total liabilities | 28,606 | 11,057 | ||||||||||
Stockholders’ equity: | ||||||||||||
Common stock | 4 | 3 | ||||||||||
Additional paid-in-capital | 128,685 | 99,884 | ||||||||||
Deferred stock-based compensation | (1,098 | ) | (1,340 | ) | ||||||||
Notes receivable from stockholders | (3,755 | ) | (4,998 | ) | ||||||||
Accumulated deficit | (18,086 | ) | (14,845 | ) | ||||||||
Cumulative other comprehensive income | 83 | 38 | ||||||||||
Total stockholders’ equity | 105,833 | 78,742 | ||||||||||
Total liabilities and stockholders’ equity | $ | 134,439 | $ | 89,799 | ||||||||
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PDF SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share data)
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||
2003 | 2002 | 2003 | 2002 | |||||||||||||||
Revenue: | ||||||||||||||||||
Design-to-silicon-yield solutions | $ | 9,033 | $ | 8,213 | $ | 25,175 | $ | 26,098 | ||||||||||
Gain share | 2,267 | 2,824 | 5,282 | 8,632 | ||||||||||||||
Total revenue | 11,300 | 11,037 | 30,457 | 34,730 | ||||||||||||||
Cost and expenses: | ||||||||||||||||||
Cost of design-to-silicon-yield solutions | 3,768 | 3,650 | 10,726 | 11,624 | ||||||||||||||
Research and development | 4,421 | 3,989 | 13,123 | 11,143 | ||||||||||||||
Selling, general and administrative | 3,106 | 2,630 | 8,720 | 7,716 | ||||||||||||||
Stock-based compensation amortization* | 366 | 640 | 1,344 | 2,198 | ||||||||||||||
Amortization of acquired intangible assets | 789 | 41 | 955 | 123 | ||||||||||||||
Write-off of in-process research and development | 800 | — | 800 | — | ||||||||||||||
Total costs and expenses | 13,250 | 10,950 | 35,668 | 32,804 | ||||||||||||||
Income (loss) from operations | (1,950 | ) | 87 | (5,211 | ) | 1,926 | ||||||||||||
Interest and other income | 278 | 443 | 998 | 1,140 | ||||||||||||||
Income (loss) before taxes | (1,672 | ) | 530 | (4,213 | ) | 3,066 | ||||||||||||
Tax (benefit) provision | (441 | ) | 345 | (972 | ) | 1,736 | ||||||||||||
Net income (loss) | $ | (1,231 | ) | $ | 185 | $ | (3,241 | ) | $ | 1,330 | ||||||||
Net income (loss) per share: | ||||||||||||||||||
Basic | $ | (0.05 | ) | $ | 0.01 | $ | (0.14 | ) | $ | 0.06 | ||||||||
Diluted | $ | (0.05 | ) | $ | 0.01 | $ | (0.14 | ) | $ | 0.06 | ||||||||
Weighted average common shares: | ||||||||||||||||||
Basic | 23,002 | 22,127 | 22,701 | 21,860 | ||||||||||||||
Diluted | 23,002 | 23,133 | 22,701 | 23,172 | ||||||||||||||
* Stock-based compensation amortization: | ||||||||||||||||||
Cost of design-to-silicon yield solutions | $ | 77 | $ | 186 | $ | 293 | $ | 672 | ||||||||||
Research and development | 222 | 307 | 785 | 1,111 | ||||||||||||||
Selling, general and administrative | 67 | 147 | 266 | 415 | ||||||||||||||
$ | 366 | $ | 640 | $ | 1,344 | $ | 2,198 | |||||||||||
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PDF SOLUTIONS, INC.
RECONCILIATION OF REPORTED GAAP NET INCOME (LOSS) TO PRO FORMA NET INCOME
(UNAUDITED)
(In thousands, except per share data)
Three Months Ended | ||||||||
September 30, | September 30, | |||||||
2003 | 2002 | |||||||
Net income (loss) | $ | (1,231 | ) | $ | 185 | |||
Stock-based compensation amortization | 366 | 640 | ||||||
Amortization of intangibles, net | 397 | 28 | ||||||
Write-off of in-process research and development | 800 | — | ||||||
Pro forma net income | $ | 332 | $ | 853 | ||||
Pro forma net income per share – diluted | $ | 0.01 | $ | 0.04 | ||||
Weighted average common shares — diluted | 24,383 | 23,133 | ||||||
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