Exhibit 99.1
News Release
Investor Relations Contact: | Corporate Communications Contact: | |
Sonia Segovia, IR Coordinator | Abbie Kendall, Principal | |
PDF Solutions, Inc. | Armstrong Kendall, Inc. | |
Tel: (408) 938-6491 | Tel: (503) 672-4681 | |
Email: sonia.segovia@pdf.com | Email: abbie@akipr.com |
PDF Solutions® Reports Record
Fourth Quarter and Total Year 2004 Revenue
Results Represent 8th Sequential Quarter of Revenue Growth
SAN JOSE, Calif.—January 27, 2005—PDF Solutions, Inc. (Nasdaq: PDFS) the leading provider of process-design integration technologies to enhance IC manufacturability, today announced financial results for its fourth fiscal quarter and full fiscal year ended December 31, 2004.
Revenue for the fourth fiscal quarter of 2004 totaled a record $18.1 million, an increase of 50%, compared with revenue of $12.1 million for the fourth fiscal quarter of 2003. On a GAAP basis, net income for the fourth fiscal quarter of 2004 totaled approximately $1.6 million, or $0.06 per diluted share, compared with a net loss of approximately $1.3 million, or $0.05 per diluted share, for the fourth fiscal quarter of 2003.
Revenue for the full fiscal year ended December 31, 2004 totaled a record $62.3 million, an increase of 47%, compared with revenue of $42.5 million for the full fiscal year ended December 31, 2003. On a GAAP basis, net loss for the full fiscal year of 2004 totaled approximately $614,000, or $0.02 per diluted share, compared with a net loss of approximately $4.5 million, or $0.19 per diluted share, for the full fiscal year of 2003.
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 fourth fiscal quarter of 2004 totaled $3.6 million, or
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$0.13 per diluted share, compared with non-GAAP net loss of approximately $135,000, or $0.01 per diluted share, for the fourth fiscal quarter of 2003.
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.phtm1 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 Solutions® is a registered trademark of PDF Solutions, Inc.
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PDF SOLUTIONS, INC.
CONSOLIDATED BALANCE SHEETS (AUDITED)
(In thousands)
December 31, | December 31, | |||||||
2004 | 2003 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 45,660 | $ | 39,110 | ||||
Accounts receivable, net of allowances | 15,978 | 11,869 | ||||||
Prepaid expenses and other current assets | 2,685 | 2,614 | ||||||
Deferred tax assets | 1,586 | 1,808 | ||||||
Total current assets | 65,909 | 55,401 | ||||||
Property and equipment, net | 3,321 | 4,110 | ||||||
Goodwill | 39,886 | 40,548 | ||||||
Intangible assets, net | 15,791 | 22,906 | ||||||
Other assets | 500 | 1,002 | ||||||
Total assets | $ | 125,407 | $ | 123,967 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,023 | $ | 835 | ||||
Accrued compensation and related benefits | 3,209 | 1,952 | ||||||
Other accrued liabilities | 2,545 | 1,485 | ||||||
Other acquisition obligations | 48 | 1,880 | ||||||
Taxes payable | 3,286 | 2,871 | ||||||
Deferred revenue | 2,905 | 3,300 | ||||||
Billings in excess of recognized revenue | 1,581 | 465 | ||||||
Total current liabilities | 14,597 | 12,788 | ||||||
Long term liabilities | 311 | 287 | ||||||
Deferred tax liabilities | 1,701 | 4,340 | ||||||
Total liabilities | 16,609 | 17,415 | ||||||
Stockholders’ equity: | ||||||||
Common stock | 4 | 4 | ||||||
Additional paid-in-capital | 134,191 | 129,568 | ||||||
Treasury stock | (4,806 | ) | — | |||||
Deferred stock-based compensation | (148 | ) | (688 | ) | ||||
Notes receivable from stockholders | (550 | ) | (3,025 | ) | ||||
Accumulated deficit | (19,975 | ) | (19,361 | ) | ||||
Accumulated other comprehensive income | 82 | 54 | ||||||
Total stockholders’ equity | 108,798 | 106,552 | ||||||
Total liabilities and stockholders’ equity | $ | 125,407 | $ | 123,967 | ||||
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PDF SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share amounts)
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Revenue: | ||||||||||||||||
Design-to-silicon-yield solutions | $ | 15,300 | $ | 10,454 | $ | 54,544 | $ | 35,629 | ||||||||
Gain share | 2,751 | 1,615 | 7,802 | 6,897 | ||||||||||||
Total revenue | 18,051 | 12,069 | 62,346 | 42,526 | ||||||||||||
Cost and expenses: | ||||||||||||||||
Cost of design-to-silicon-yield solutions: | ||||||||||||||||
Direct costs of design-to-silicon-yield solutions: | 6,245 | 3,686 | 21,855 | 14,412 | ||||||||||||
Amortization of acquired core technology | 1,266 | 1,350 | 5,209 | 2,168 | ||||||||||||
Research and development | 5,352 | 5,318 | 20,332 | 18,441 | ||||||||||||
Selling, general and administrative | 3,987 | 3,739 | 15,207 | 12,459 | ||||||||||||
Stock-based compensation amortization* | 61 | 411 | 742 | 1,755 | ||||||||||||
Amortization of other acquired intangible assets | 235 | 410 | 1,406 | 547 | ||||||||||||
Write-off of in-process research and development | — | — | — | 800 | ||||||||||||
Total costs and expenses | 17,146 | 14,914 | 64,751 | 50,582 | ||||||||||||
Income (loss) from operations | 905 | (2,845 | ) | (2,405 | ) | (8,056 | ) | |||||||||
Interest and other income | 234 | 197 | 675 | 1,195 | ||||||||||||
Income (loss) before taxes | 1,139 | (2,648 | ) | (1,730 | ) | (6,861 | ) | |||||||||
Tax benefit | (414 | ) | (1,373 | ) | (1,116 | ) | (2,345 | ) | ||||||||
Net income (loss) | $ | 1,553 | $ | (1,275 | ) | $ | (614 | ) | $ | (4,516 | ) | |||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 0.06 | $ | (0.05 | ) | $ | (0.02 | ) | $ | (0.19 | ) | |||||
Diluted | 0.06 | $ | (0.05 | ) | $ | (0.02 | ) | $ | (0.19 | ) | ||||||
Weighted average common shares: | ||||||||||||||||
Basic | 25,391 | 25,010 | 25,330 | 23,278 | ||||||||||||
Diluted | 26,975 | 25,010 | 25,330 | 23,278 | ||||||||||||
*Stock-based compensation amortization: | ||||||||||||||||
Cost of design-to-silicon-yield solutions | $ | — | $ | 52 | $ | 39 | $ | 345 | ||||||||
Research and development | 61 | 314 | 667 | 1,099 | ||||||||||||
Selling, general and administrative | — | 45 | 36 | 311 | ||||||||||||
$ | 61 | $ | 411 | $ | 742 | $ | 1,755 | |||||||||
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PDF SOLUTIONS, INC.
RECONCILIATION OF REPORTED GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS)
(UNAUDITED)
(In thousands, except per share amounts)
Three Months Ended | ||||||||
December 31, | December 31, | |||||||
2004 | 2003 | |||||||
GAAP net income (loss) | $ | 1,553 | $ | (1,275 | ) | |||
Stock-based compensation amortization | 61 | 411 | ||||||
Amortization of intangibles, net of taxes | 2,019 | 729 | ||||||
Non-GAAP net income (loss) | 3,633 | (135 | ) | |||||
Non-GAAP net income (loss) per share — diluted | $ | 0.13 | $ | (0.01 | ) | |||
Weighted average common shares — diluted | 26,975 | 25,010 | ||||||
Use of Non-GAAP Information
In addition to providing results that are determined in accordance with Generally Accepted Accounting Principles (GAAP), PDF also provides certain Non-GAAP financial measures that exclude certain charges as additional information relating to its operating results. PDF’s management believes that the presentation of these measures provides useful information to investors regarding certain additional financial and business trends relating to its financial condition and results of operations. PDF has also chosen to provide this information to investors to enable them to perform meaningful comparisons of PDF’s past, present and future operating results. These measures are not in accordance with, or an alternative to, GAAP and may be different from non-GAAP measures used by other companies. The calculations of non-GAAP financial measures have been adjusted to exclude the effects of amortization of stock-based compensation and intangibles.
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