EXHIBIT 99.1
NEWS RELEASE
Investor Relations Contact: Corporate Communications Contact:
Michael Buehler-Garcia Abbie Kendall
PDF Solutions, Inc. Armstrong Kendall, Inc.
Tel: (408) 938-4497 Tel: (503) 672-4681
Email: mbg@pdf.com Email: abbie@akipr.com
PDF SOLUTIONS(R) REPORTS FOURTH QUARTER AND TOTAL
YEAR 2003 FINANCIAL RESULTS
SAN JOSE, Calif.--January 27, 2004--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, 2003.
Revenue for the fourth fiscal quarter of 2003 totaled $12.1 million, an
increase of 34% compared with revenue of $9.0 million for the fourth fiscal
quarter of 2002. Pro forma net loss for the fourth fiscal quarter of 2003,
excluding amortization of stock-based compensation and acquired intangible
assets, totaled $135,000, or $0.01 per diluted share, compared with a pro forma
net loss of $264,000, or $0.01 per diluted share, for the fourth fiscal quarter
of 2002. Reported net loss for the fourth fiscal quarter of 2003 totaled $1.3
million, or $0.05 per diluted share, compared with a reported net loss of
$806,000, or $0.04 per diluted share, for the fourth fiscal quarter of 2002.
Revenue for the full fiscal year ended December 31, 2003 totaled $42.5 million
with reported net loss for the fiscal year totaling $4.5 million or $0.19 per
diluted share.
"During 2003, we strengthened our competitive position by adding more
of the world's leading semiconductor companies to our customer list and
broadening our technology offering through both acquisition and new product
development, while maintaining our healthy balance sheet," said John Kibarian,
PDF's President and Chief Executive Officer.
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 conference call will be available on the company's
website at http://ir.pdf.com/medialist.cfm. A
-more-
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(R) is a registered trademark of PDF Solutions, Inc.
FORWARD-LOOKING STATEMENTS
Some of the statements in this press release are forward looking, including the
statement regarding PDF's competitive positioning in the semiconductor industry.
The words "strengthen", "adding", "broadening" 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 Securities and Exchange Commission, including,
without limitation, its annual report on Form 10-K, most recently filed on
March 26, 2003, and on its quarterly reports Form 10-Q, most recently filed on
November 20, 2003 as amended. 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.
-more-
PDF SOLUTIONS, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(IN THOUSANDS)
DECEMBER 31, DECEMBER 31,
2003 2002
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents .......................... $ 39,110 $ 71,490
Accounts receivable, net of allowances ............. 11,869 7,924
Prepaid expenses and other current assets .......... 2,614 2,413
Deferred tax assets ................................ 1,808 1,993
------------ ------------
Total current assets .......................... 55,401 83,820
Property and equipment, net ............................. 4,110 3,533
Goodwill ................................................ 40,548 662
Intangible assets, net .................................. 22,906 220
Deferred tax assets ..................................... -- 1,053
Other assets ............................................ 1,002 511
------------ ------------
Total assets .................................. $ 123,967 $ 89,799
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable ................................... $ 835 $ 499
Accrued compensation and related benefits .......... 1,952 1,143
Other accrued liabilities .......................... 1,757 1,669
Other acquisition obligations ...................... 1,608 --
Taxes payable ...................................... 2,871 1,838
Deferred revenues .................................. 3,300 4,496
Billings in excess of recognized revenue ........... 465 606
------------ ------------
Total current liabilities ..................... 12,788 10,251
Long term liabilities ................................... 287 54
Deferred tax liabilities ................................ 4,340 752
------------ ------------
Total liabilities ............................. 17,415 11,057
------------ ------------
Stockholders' equity:
Common stock .................................. 4 3
Additional paid-in-capital .................... 129,568 99,884
Deferred stock-based compensation ............. (688) (1,340)
Notes receivable from stockholders ............ (3,025) (4,998)
Accumulated deficit ........................... (19,362) (14,845)
Accumulated other comprehensive income ........ 55 38
------------ ------------
Total stockholders' equity .................... 106,552 78,742
------------ ------------
Total liabilities and stockholders' equity .... $ 123,967 $ 89,799
============ ============
-more-
PDF SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED TWELVE MONTHS ENDED
------------------------------ ------------------------------
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2003 2002 2003 2002
------------- ------------- ------------- -------------
Revenue:
Design-to-silicon-yield solutions ..................... $ 10,454 $ 7,587 $ 35,629 $ 33,685
Gain share ............................................ 1,615 1,407 6,897 10,039
------------- ------------- ------------- -------------
Total revenue .................................... 12,069 8,994 42,526 43,724
------------- ------------- ------------- -------------
Cost and expenses:
Cost of design-to-silicon-yield solutions:
Direct costs of design-to-silicon yield solutions ... 3,686 3,362 14,412 14,986
Amortization of acquired core technology ............ 1,350 41 2,168 164
Research and development .............................. 5,318 4,104 18,441 15,247
Selling, general and administrative ................... 3,739 2,472 12,459 10,188
Stock-based compensation amortization* ................ 411 513 1,755 2,711
Amortization of other acquired intangible assets ...... 410 -- 547 --
Write-off of in-process research and development ...... -- -- 800 --
------------- ------------- ------------- -------------
Total costs and expenses ......................... 14,914 10,492 50,582 43,296
------------- ------------- ------------- -------------
Income (loss) from operations .............................. (2,845) (1,498) (8,056) 428
Interest and other income .................................. 197 409 1,195 1,549
------------- ------------- ------------- -------------
Income (loss) before taxes ................................. (2,648) (1,089) (6,861) 1,977
Tax (benefit) provision .................................... (1,373) (283) (2,345) 1,453
------------- ------------- ------------- -------------
Net income (loss) .......................................... $ (1,275) $ (806) $ (4,516) $ 524
============= ============= ============= =============
Net income (loss) per share:
Basic ................................................. $ (0.05) $ (0.04) $ (0.19) $ 0.02
============= ============= ============= =============
Diluted ............................................... $ (0.05) $ (0.04) $ (0.19) $ 0.02
============= ============= ============= =============
Weighted average common shares:
Basic ................................................. 25,010 22,271 23,278 21,962
============= ============= ============= =============
Diluted ............................................... 25,010 22,271 23,278 23,199
============= ============= ============= =============
* Stock-based compensation amortization:
Cost of design-to-silicon yield solutions .............. $ 52 $ 154 $ 345 $ 826
Research and development ............................... 314 230 1,099 1,341
Selling, general and administrative .................... 45 129 311 544
------------- ------------- ------------- -------------
$ 411 $ 513 $ 1,755 $ 2,711
============= ============= ============= =============
-more-
PDF SOLUTIONS, INC.
RECONCILIATION OF REPORTED GAAP NET LOSS TO PRO FORMA NET LOSS
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED
----------------------------
DECEMBER 31, DECEMBER 31,
2003 2002
------------ ------------
Net loss ......................................... $ (1,275) $ (806)
Stock-based compensation amortization ............ 411 513
Amortization of intangibles, net of taxes ........ 729 29
------------ ------------
Pro forma net loss ............................... $ (135) $ (264)
============ ============
Pro forma net loss per share - diluted ........... $ (0.01) $ (0.01)
============ ============
Weighted average common shares - diluted ......... 25,010 22,271
============ ============
-more-