Exhibit 99.1
News Release
Investor Relations Contact: | Corporate Communications Contact: | |
Sonia Segovia, IR Coordinator PDF Solutions, Inc. Tel: (408) 938-6491 Email: sonia.segovia@pdf.com | Abbie Kendall, Principal Armstrong Kendall, Inc. Tel: (503) 672-4681 Email: abbie@akipr.com |
PDF SolutionsÒ Reports Record
Second Quarter 2005 Revenue
Results Represent 10thSequential Quarter of Revenue Growth
SAN JOSE, Calif. — July 21, 2005 — 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, 2005.
Revenue for the second fiscal quarter of 2005 totaled a record $18.4 million, an increase of 21%, compared with revenue of $15.2 million for the second fiscal quarter of 2004. On a GAAP basis, net income for the second fiscal quarter of 2005 totaled approximately $1.3 million, or $0.05 per diluted share, compared with a net loss of approximately $460,000, or $0.02 per diluted share, for the second fiscal quarter of 2004.
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 or loss, which excludes amortization of stock-based compensation and acquired intangible assets. Using this non-GAAP measure, net income for the second fiscal quarter of 2005 totaled $2.9 million, or $0.11 per diluted share, compared with non-
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GAAP net income of approximately $1.0 million, or $0.04 per diluted share, for the second fiscal quarter of 2004.
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 these quarterly results. 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 PDF Solutions’ 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 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. Headquartered in San Jose, Calif., PDF Solutions operates worldwide with additional offices in Europe and Japan. For more information, visit www.pdf.com.
PDF SolutionsÒ is a registered trademark of PDF Solutions, Inc.
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PDF SOLUTIONS, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands)
June 30, | December 31, | |||||||
2005 | 2004 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 51,862 | $ | 45,660 | ||||
Accounts receivable, net of allowances | 18,852 | 15,978 | ||||||
Prepaid expenses and other current assets | 2,436 | 2,685 | ||||||
Deferred tax assets | 1,998 | 1,586 | ||||||
Total current assets | 75,148 | 65,909 | ||||||
Property and equipment, net | 3,614 | 3,321 | ||||||
Goodwill | 39,886 | 39,886 | ||||||
Intangible assets, net | 12,789 | 15,791 | ||||||
Other assets | 608 | 500 | ||||||
Total assets | $ | 132,045 | $ | 125,407 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,827 | $ | 1,023 | ||||
Accrued compensation and related benefits | 3,012 | 3,209 | ||||||
Other accrued liabilities | 2,036 | 2,593 | ||||||
Taxes payable | 4,013 | 3,286 | ||||||
Deferred revenues | 2,949 | 2,905 | ||||||
Billings in excess of recognized revenue | 1,921 | 1,581 | ||||||
Total current liabilities | 15,758 | 14,597 | ||||||
Long-term liabilities | 290 | 311 | ||||||
Deferred tax liabilities | 1,469 | 1,701 | ||||||
Total liabilities | 17,517 | 16,609 | ||||||
Stockholders’ equity: | ||||||||
Common stock | 4 | 4 | ||||||
Additional paid-in-capital | 137,181 | 134,191 | ||||||
Treasury stock | (4,806 | ) | (4,806 | ) | ||||
Deferred stock-based compensation | (75 | ) | (148 | ) | ||||
Notes receivable from stockholders | (550 | ) | (550 | ) | ||||
Accumulated deficit | (17,239 | ) | (19,975 | ) | ||||
Accumulated other comprehensive income | 13 | 82 | ||||||
Total stockholders’ equity | 114,528 | 108,798 | ||||||
Total liabilities and stockholders’ equity | $ | 132,045 | $ | 125,407 | ||||
PDF SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share amounts)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||
Revenue: | ||||||||||||||||
Design-to-silicon-yield solutions: | ||||||||||||||||
Integrated solutions | $ | 12,267 | $ | 13,352 | $ | 24,824 | $ | 22,858 | ||||||||
Software licenses | 3,197 | 161 | 6,646 | 2,350 | ||||||||||||
Gain share | 2,892 | 1,656 | 4,979 | 2,637 | ||||||||||||
Total revenue | 18,356 | 15,169 | 36,449 | 27,845 | ||||||||||||
Cost and expenses: | ||||||||||||||||
Cost of design-to-silicon-yield solutions: | ||||||||||||||||
Direct costs of design-to-silicon-yield solutions: | ||||||||||||||||
Integrated solutions | 5,766 | 5,308 | 11,516 | 9,660 | ||||||||||||
Software licenses | 101 | 61 | 258 | 63 | ||||||||||||
Amortization of acquired core technology | 1,266 | 1,327 | 2,532 | 2,677 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||
Research and development | 5,655 | 4,822 | 10,991 | 10,040 | ||||||||||||
Selling, general and administrative | 4,289 | 3,622 | 8,203 | 7,419 | ||||||||||||
Stock-based compensation amortization* | 32 | 292 | 74 | 547 | ||||||||||||
Amortization of other acquired intangible assets | 235 | 410 | 470 | 820 | ||||||||||||
Total costs and expenses | 17,344 | 15,842 | 34,044 | 31,226 | ||||||||||||
Income (loss) from operations | 1,012 | (673 | ) | 2,405 | (3,381 | ) | ||||||||||
Interest and other income, net | 350 | 138 | 622 | 291 | ||||||||||||
Income (loss) before taxes | 1,362 | (535 | ) | 3,027 | (390 | ) | ||||||||||
Tax provision (benefit) | 20 | (75 | ) | 291 | (788 | ) | ||||||||||
Net income (loss) | $ | 1,342 | $ | (460 | ) | $ | 2,736 | $ | (2,302 | ) | ||||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 0.05 | $ | (0.02 | ) | $ | 0.11 | $ | (0.09 | ) | ||||||
Diluted | $ | 0.05 | $ | (0.02 | ) | $ | 0.10 | $ | (0.09 | ) | ||||||
Weighted average common shares: | ||||||||||||||||
Basic | 25,862 | 25,337 | 25,779 | 25,319 | ||||||||||||
Diluted | 26,986 | 25,337 | 27,057 | 25,319 | ||||||||||||
* Stock-based compensation amortization: | ||||||||||||||||
Cost of design-to-silicon-yield solutions | $ | — | $ | 9 | $ | — | $ | 37 | ||||||||
Research and development | 32 | 274 | 74 | 476 | ||||||||||||
Selling, general and administrative | — | 9 | — | 34 | ||||||||||||
$ | 32 | $ | 292 | $ | 74 | $ | 547 | |||||||||
PDF SOLUTIONS, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands)
June 30, | December 31, | |||||||
2003 | 2002 | |||||||
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 | ||||||
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 | ||||||
Total assets | $ | 88,788 | $ | 89,799 | ||||
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 | ||||||
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 | ||||||
Total stockholders’ equity | 78,696 | 78,742 | ||||||
Total liabilities and stockholders’ equity | $ | 88,788 | $ | 89,799 | ||||
PDF SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share data)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2003 | 2002 | 2003 | 2002 | |||||||||||||
Revenue: | ||||||||||||||||
Design-to-silicon yield solutions | $ | 8,034 | $ | 9,505 | $ | 16,142 | $ | 17,885 | ||||||||
Gain share | 2,056 | 2,731 | 3,015 | 5,808 | ||||||||||||
Total revenue | $ | 10,090 | $ | 12,236 | $ | 19,157 | $ | 23,693 | ||||||||
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 | ||||||||||||
Total costs and expenses | 11,290 | 11,458 | 22,418 | 21,854 | ||||||||||||
Income (loss) from operations | (1,200 | ) | 778 | (3,261 | ) | 1,839 | ||||||||||
Interest and other income | 345 | 338 | 720 | 697 | ||||||||||||
Income (loss) before taxes | (855 | ) | 1,116 | (2,541 | ) | 2,536 | ||||||||||
Tax (benefit) provision | (179 | ) | 551 | (531 | ) | 1,391 | ||||||||||
Net income (loss) | $ | (676 | ) | $ | 565 | $ | (2,010 | ) | $ | 1,145 | ||||||
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 | ||||||||||||
$ | 329 | $ | 770 | $ | 978 | $ | 1,558 | |||||||||
PDF SOLUTIONS, INC.
RECONCILIATION OF REPORTED GAAP NET INCOME (LOSS) TO PRO FORMA NET INCOME (LOSS) (UNAUDITED)
(In thousands, except per share data)
Three Months Ended | ||||||||
June 30, | June 30, | |||||||
2003 | 2002 | |||||||
Net income (loss) | $ | (676 | ) | $ | 565 | |||
Stock-based compensation amortization | 329 | 770 | ||||||
Amortization of intangibles, net | 82 | 28 | ||||||
Pro forma net income (loss) | $ | (265 | ) | $ | 1,363 | |||
Pro forma net income (loss) per share — diluted | $ | (0.01 | ) | $ | 0.06 | |||
Weighted average common shares — diluted | 22,614 | 22,943 | ||||||