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
SECOND QUARTER REVENUE
Results Represent 6th Sequential Quarter of Revenue Growth
SAN JOSE, Calif. -- July 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 second fiscal
quarter ended June 30, 2004.
Revenue for the second fiscal quarter of 2004 totaled a record $15.2
million, an increase of 50%, compared with revenue of $10.1 million for the
second fiscal quarter of 2003. On a GAAP basis, net loss for the second fiscal
quarter of 2004 totaled approximately $460,000, or $0.02 per diluted share,
compared with a net loss of approximately $676,000, or $0.03 per diluted share,
for the second 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 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 2004 totaled $1.0 million, or $0.04 per diluted share,
compared with a non-GAAP net loss of approximately $265,000, or $0.01 per
diluted share, for the second 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.
PDF SOLUTIONS, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(IN THOUSANDS)
JUNE 30, DECEMBER 31,
2004 2003
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ASSETS
Current assets:
Cash and cash equivalents................................................... $ 42,472 $ 39,110
Accounts receivable, net of allowances...................................... 11,736 11,869
Prepaid expenses and other current assets................................... 2,346 2,614
Deferred tax assets......................................................... 1,549 1,808
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Total current assets.................................................... 58,103 55,401
Property and equipment, net.................................................... 3,550 4,110
Goodwill....................................................................... 40,590 40,548
Intangible assets, net......................................................... 18,910 22,906
Other assets................................................................... 1,020 1,002
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Total assets............................................................ $ 122,173 $ 123,967
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable............................................................ $ 1,726 $ 835
Accrued compensation and related benefits................................... 1,900 1,952
Other accrued liabilities................................................... 1,531 1,485
Other acquisition obligations............................................... 1,049 1,880
Taxes payable............................................................... 3,817 2,871
Deferred revenue............................................................ 3,649 3,300
Billings in excess of recognized revenue.................................... 1,320 465
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Total current liabilities............................................... 14,992 12,788
Long term liabilities.......................................................... 307 287
Deferred tax liabilities....................................................... 2,011 4,340
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Total liabilities....................................................... 17,310 17,415
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Stockholders' equity:
Common stock.............................................................. 4 4
Additional paid-in-capital................................................ 131,185 129,568
Treasury stock............................................................ (2,942) --
Deferred stock-based compensation......................................... (298) (688)
Notes receivable from stockholders........................................ (1,469) (3,025)
Accumulated deficit....................................................... (21,665) (19,361)
Accumulated other comprehensive income.................................... 48 54
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Total stockholders' equity ............................................. 104,863 106,552
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Total liabilities and stockholders' equity.............................. $ 122,173 $ 123,967
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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,
2004 2003 2004 2003
---- ---- ---- ----
Revenue:
Design-to-silicon-yield solutions................... $ 13,513 $ 8,034 $ 25,208 $ 16,142
Gain share.......................................... 1,656 2,056 2,637 3,015
---------- ---------- ---------- -----------
Total revenue..................................... 15,169 10,090 27,845 19,157
---------- ---------- ---------- -----------
Cost and expenses:
Cost of design-to-silicon-yield solutions:
Direct costs of design-to-silicon-yield solutions... 5,369 3,514 9,723 6,958
Amortization of acquired core technology............ 1,327 124 2,677 165
Research and development............................ 4,822 4,370 10,040 8,702
Selling, general and administrative................. 3,622 2,953 7,419 5,615
Stock-based compensation amortization*.............. 292 329 547 978
Amortization of other acquired intangible assets.... 410 ---- 820 ----
---------- ---------- ---------- -----------
Total costs and expenses.......................... 15,842 11,290 31,226 22,418
---------- ---------- ---------- -----------
Loss from operations................................... (673) (1,200) (3,381) (3,261)
Interest and other income, net......................... 138 345 291 720
---------- ---------- ---------- -----------
Loss before taxes...................................... (535) (855) (3,090) (2,541)
Tax benefit............................................ (75) (179) (788) (531)
---------- ---------- ---------- -----------
Net loss............................................... $ (460) $ (676) $ (2,302) $ (2,010)
========== ========== ========== ===========
Net loss per share:
Basic and diluted .................................. $ (0.02) $ (0.03) $ (0.09) $ (0.09)
========== ========== ========== ===========
Weighted average common shares:
Basic and diluted................................... 25,337 22,614 25,319 22,551
========== ========== ========== ===========
* Stock-based compensation amortization:
Cost of design-to-silicon-yield solutions.......... $ 9 $ 86 $ 37 $ 216
Research and development........................... 274 155 476 563
Selling, general and administrative................ 9 88 34 199
---------- ---------- ---------- -----------
$ 292 $ 329 $ 547 $ 978
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PDF SOLUTIONS, INC.
RECONCILIATION OF REPORTED GAAP NET LOSS TO NON-GAAP NET INCOME (LOSS)
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED
-----------------------------
JUNE 30, JUNE 30,
2004 2003
---------- ---------
GAAP net loss........................................ $ (460) $ (676)
Stock-based compensation amortization................ 292 329
Amortization of intangibles, net of taxes............ 1,198 82
---------- ---------
Non-GAAP net income (loss)........................... $ 1,030 $ (265)
========== =========
Non-GAAP net income (loss) per share - diluted....... $ 0.04 $ (0.01)
========== =========
Weighted average common shares - diluted............. 26,136 22,614
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