Exhibit 99.2
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 PROVIDES FINANCIAL
OUTLOOK FOR
THE THIRD AND FOURTH QUARTERS OF FISCAL 2005
SAN JOSE, Calif. — July 21, 2005 — PDF Solutions, Inc. (Nasdaq: PDFS), the leading provider of process-design integration technologies to enhance IC manufacturability, today provided its updated financial outlook for the third and fourth fiscal quarters ending September 30, 2005 and December 31, 2005, respectively.
PDF Solutions expects total revenue in the range of $18.7 million to $19.5 million for the third fiscal quarter ending September 30, 2005. Gain share revenue for the third quarter is expected to be in the range of $2.8 million to $3.2 million. On a GAAP basis, net income for the third fiscal quarter of 2005 is projected in a range of $1.5 million to $2.0 million, or $0.05 to $0.07 per diluted share.
For the fourth fiscal quarter ending December 31, 2005, PDF Solutions expects total revenue in the range of $19.8 million to $20.8 million. On a GAAP basis, net income for the fourth fiscal quarter of 2005 is projected in a range of $1.8 million to $2.5 million, or $0.07 to $0.09 per diluted share.
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, which excludes amortization of stock-based compensation and acquired intangible assets. Non-GAAP net income for the third fiscal quarter ending September 30, 2005
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is projected in a range of $2.6 million to $3.1 million, or $0.10 to $0.12 per diluted share. Non-GAAP net income for the fourth fiscal quarter ending December 31, 2005 is projected in a range of $3.0 million to $3.7 million, or $0.11 to $0.13 per diluted share.
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 its second quarter 2005 results and financial outlook for the third and fourth fiscal quarters of 2005. 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 the company’s website at http://www.pdf.com/news_archive.phtml following the date of this release.
Effectiveness of Guidance
About PDF Solutions
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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.
Forward-Looking Statements
The statements in this press release regarding PDF Solutions’ 2005 third and fourth fiscal quarter outlook, including expected revenue, net income, and net income per share, are forward looking. Actual results could differ materially from those expressed in these 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 Solutions’ products and services. Readers should also refer to the risk disclosures set forth in PDF Solutions’ periodic public filings with the Securities and Exchange Commission, including, without limitation, its annual report on Form 10-K, most recently filed on March 16, 2005, and its quarterly reports on Form 10-Q, most recently filed on May 10, 2005. The forward-looking statements contained in this release are made as of the date hereof, and PDF Solutions does not assume any obligation to update such statements nor the reasons why actual results could differ materially from those projected in such statements.
PDF SOLUTIONS, INC.
RECONCILIATION OF PROJECTED GAAP NET INCOME TO PROJECTED
NON-GAAP NET INCOME
(In thousands, except per share data)
Three Months Ending | ||||||||||||
PROJECTED RESULTS | September 30, 2005 | |||||||||||
GAAP net income per share — diluted | $ | 0.05 | to | $ | 0.07 | |||||||
GAAP net income | $ | 1,465 | to | $ | 1,965 | |||||||
Stock-based compensation amortization | 25 | 25 | ||||||||||
Amortization of acquired intangible assets, net of taxes | 1,150 | 1,150 | ||||||||||
Non-GAAP net income | $ | 2,640 | to | 3,140 | ||||||||
Non-GAAP net income per share — diluted. | $ | 0.10 | to | 0.12 | ||||||||
Weighted average common shares — diluted | 27,250 | 27,250 | ||||||||||
Three Months Ending | ||||||||||||
PROJECTED RESULTS | December 31, 2005 | |||||||||||
GAAP net income per share — diluted | $ | 0.07 | to | $ | 0.09 | |||||||
GAAP net income | $ | 1,790 | to | 2,490 | ||||||||
Stock-based compensation amortization | 20 | 20 | ||||||||||
Amortization of acquired intangible assets, net of taxes | 1,150 | 1,150 | ||||||||||
Non-GAAP net income | $ | 2,960 | to | 3,660 | ||||||||
Non-GAAP net income per share — diluted. | $ | 0.11 | to | 0.13 | ||||||||
Weighted average common shares — diluted | 27,500 | 27,500 | ||||||||||