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(R) REPORTS RECORD
FIRST QUARTER REVENUE
SAN JOSE, Calif. -- April 22, 2004 -- PDF Solutions, Inc. (Nasdaq: PDFS)
the leading provider of process-design integration technologies to enhance IC
manufacturability, today announced financial results for its first fiscal
quarter ended March 31, 2004.
Revenue for the first fiscal quarter of 2004 totaled a record $12.7
million, an increase of 40%, compared with revenue of $9.1 million for the first
fiscal quarter of 2003. On a GAAP basis, net loss for the first fiscal quarter
of 2004 totaled $1.8 million, or $0.07 per diluted share, compared with a net
loss of $1.3 million, or $0.06 per diluted share, for the first fiscal quarter
of 2003.
In addition to using GAAP results in evaluating PDF's business, management
also believes it useful to measure results using a non-GAAP measure of net
income (loss), which excludes amortization of stock-based compensation and
acquired intangible assets. Using this non-GAAP measure, net loss for the first
fiscal quarter of 2004 totaled approximately $373,000, or $0.01 per diluted
share, compared with a non-GAAP net loss of approximately $658,000, or $0.03 per
diluted share, for the first fiscal quarter of 2003.
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 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.
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PDF SOLUTIONS, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(IN THOUSANDS)
MARCH 31, DECEMBER 31,
2004 2003
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ASSETS
Current assets:
Cash and cash equivalents ........................... $ 42,748 $ 39,110
Accounts receivable, net of allowances .............. 11,165 11,869
Prepaid expenses and other current assets ........... 2,267 2,614
Deferred tax assets ................................. 1,953 1,808
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Total current assets ........................... 58,133 55,401
Property and equipment, net .............................. 3,659 4,110
Goodwill ................................................. 40,548 40,548
Intangible assets, net ................................... 21,146 22,906
Other assets ............................................. 1,135 1,002
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Total assets ................................... $ 124,621 $ 123,967
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable .................................... $ 1,290 $ 835
Accrued compensation and related benefits ........... 2,201 1,952
Other accrued liabilities ........................... 1,601 1,485
Other acquisition obligations ....................... 1,675 1,880
Taxes payable ....................................... 2,579 2,871
Deferred revenue .................................... 3,731 3,300
Billings in excess of recognized revenue ............ 776 465
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Total current liabilities ...................... 13,853 12,788
Long term liabilities .................................... 300 287
Deferred tax liabilities ................................. 3,820 4,340
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Total liabilities .............................. 17,973 17,415
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Stockholders' equity:
Common stock ........................................ 4 4
Additional paid-in-capital .......................... 130,225 129,568
Deferred stock-based compensation ................... (433) (688)
Notes receivable from stockholders .................. (1,999) (3,025)
Accumulated deficit ................................. (21,203) (19,361)
Accumulated other comprehensive income .............. 54 54
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Total stockholders' equity ..................... 106,648 106,552
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Total liabilities and stockholders' equity ..... $ 124,621 $ 123,967
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PDF SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED
-----------------------
MARCH 31, MARCH 31,
2004 2003
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Revenue:
Design-to-silicon-yield solutions ................... $ 11,695 $ 8,108
Gain share .......................................... 981 959
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Total revenue ................................... 12,676 9,067
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Cost and expenses:
Cost of design-to-silicon-yield solutions:
Direct costs of design-to-silicon-yield solutions 4,354 3,444
Amortization of acquired core technology ........ 1,350 41
Research and development ............................ 5,218 4,332
Selling, general and administrative ................. 3,797 2,662
Stock-based compensation amortization ............... 255 649
Amortization of other acquired intangible assets .... 410 --
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Total costs and expenses ........................ 15,384 11,128
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Loss from operations ..................................... (2,708) (2,061)
Interest and other income, net ........................... 153 375
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Loss before taxes ........................................ (2,555) (1,686)
Tax benefit .............................................. (713) (352)
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Net income (loss) ........................................ $ (1,842) $ (1,334)
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Net loss per share:
Basic and Diluted ................................... $ (0.07) $ (0.06)
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Weighted average common shares:
Basic and Diluted ................................... 25,301 22,488
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*Stock-based compensation amortization:
Cost of design-to-silicon-yield solutions ....... $ 28 $ 130
Research and development ........................ 202 408
Selling, general and administrative ............. 25 111
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$ 255 $ 649
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PDF SOLUTIONS, INC.
RECONCILIATION OF REPORTED GAAP NET LOSS TO NON-GAAP NET LOSS
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED
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MARCH 31, MARCH 31,
2004 2003
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GAAP net loss ...................................... $ (1,842) $ (1,334)
Stock-based compensation amortization .............. 255 649
Amortization of intangibles, net of taxes .......... 1,214 27
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Non-GAAP net loss .................................. $ (373) $ (658)
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Non-GAAP net loss per share - basic & diluted ...... $ (0.01) $ (0.03)
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Weighted average common shares - basic & diluted ... 25,301 22,488
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