PDFS - Earnings call transcript Q1 2021

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Operator

Good day and thank you for standing by. Welcome to the PDF Solutions First Quarter 2021 Conference Call. [Operator Instructions] After the speakers' presentation, there will be a question-and-answer session. I would now like to hand the call over to your conference speaker for today Joseph Diaz of Lytham Partners. Please go ahead.

Joseph Diaz

Erika. you, Thank all call. to for us joining And of today's on thanks you We interest your and appreciate time the ongoing in Solutions. PDF

Partner operator PDF. for the I'm are indicated, name Investor at Managing the is we Lytham consulting As Relations Partners, Joe my a firm Diaz,

on not available company's If release, you of press pdf.com. have yet do website copy at a today's it's the

Reform including meaning Some will be call regarding of this of Private financial performance, of the conference results the XXXX, differ solutions. statements demand growth made during actual Act Securities future PDF's rates materially. Litigation within results could statements for the the of PDF's course and forward-looking its and

them. ended to Report on and information open I'd to Officer, today. no similar December that the the Solutions', refer filings. available followed Risk entitled disclosures your Company's in should subsequent PDF on Factors remarks, forward-looking stated for Annual conclusion XX-K will and based Financial risks of Chief Upon SEC statements Vice and on are and Officer. like Kibarian, for will John management's Chief by With PDF on be to year President company has XX, You Form we to The who this Raza, Executive XXXX introduce the section fiscal the call conference The Executive call President obligation update Adnan questions. the prepared said,

Kibarian, of President Let me Solutions. CEO John the and to turn now over call John? PDF

John Kibarian

you Thank on us for joining call. today's

our perspective I each been goals our with year. the turn QX a will and remarks, the our the go over the report the my I in year. please our for already where start to not achieved What will management of Adnan. we has QX seen the of of remainder selection and first call you've to finished After for press earnings on summary Today, with and release If posted. Investors quarter, website

leading the the semiconductor to know, goal global chain. you our of analytics most and company electronic is become As supply for

and We delivering of Among to are quality on the requirements more mature importance, focused is business across only providing but efficiency leading-edge edge. achieve and and data, analytics goal also manufacturing, equipment via to the for the growing right not of data improved technologies product liability. process the chain. at This manufacturers supply impact this

want business. Advantest our processing equipment utilize Our to acquisition access these from of including requirements. of ingest Exensio actions Cimetrix connectivity the to equipment connectivity tool with to with capabilities the to drive their equipment partnerships, optimize directly coupled analytics products their intelligence The cloud products customers data our driver our company is to growth factory on partnerships Increasingly their immediate analytics their and company and connectivity and and production. have provide that Exensio's data the address

consumers Turning characterization become including with a to Worldwide required the deep as governments, and fabless data to and solutions, foundry the companies. our electrical to these have manufacturing and continue for semiconductor customers insights processes. as edge and increase focus control and design test develop edge, semiconductor in the leading investments of advanced leading inspection provide and well

year. compared As systems the in DFI bookings in with revenue a the contributions to year anticipate the in result, first second half analytics from the CV to QX we of half and and of grow, QX

customers the analytic to an yield probably share ramp yield buying as an some We do still part of deliver our tied characterization will solution; products with are royalties achievement. capability legacy we these have integrated gain as part of

time. to analytics growth revenues expected in the With total the integrated percentage continue decrease ramp yield revenue, revenue our of a as over will

achieving are of investments as toward analytics our and revenue we - our growth stated in high in we for February we head a period As long-term associated higher model. call,

our February, great In for total few revenue first revenue annual analytics was with target growth. grew for in the greater Growth in analytics than anticipated as revenues the over strong, QX in decline XX% revenue. more quarter and see anticipated of company the we year-over-year materially grow expectation our XX%, approach ramp our compared this XX% by the start XX% to QX for was by XXXX. growth single-digit revenue to results our we year annual of and factoring particularly than above total years past Our when we in yield the to XXXX,

Looking Exensio results, first process and largest our for of quarter into control, fabless. contracts Exensio deeper TBL Exensio cloud on-premise

our capital connectivity equipment run time on strong reflected sales should is that continue to annual year and volumes revenue analytics installed is our capital increased which license equipment. within contribution Cimetrix The through growth this suggest from expectations. came software, strength growing the of Additional and robust

the deployments, we business PDF customers do. operations support head to leading cash will the generate this also in new the During there which many is the are accelerated when partners our as and future same result typically runtime our on as is additional invest quarter, designing connectivity investments into infrastructure we our wins equipment always their for our of our year Overall future. turn well in been time, solutions. to in have from products edge. design licenses under in development, software our expect Meaning opportunity. capability we cloud as We At in field willing to connectivity

IYR investments characterization As also new basis end-to-end opening continued as in we strength not experience will analytics quarter. analytics about just part connectivity QX. this experienced of integrated connectivity we the we benefit first is customer's of systems from marketplace. in quarter. from look Moreover, the of further us they in and the the the up summary, I and made that edge more opportunities second we we in differentiates our the ways in Exensio as platform. believe this the on Exensio as achieved what am Cimetrix total benefits quarter, But leading combination quarter. team, from am of and really achieved revenue excited on Solutions first In the cloud similar With a to the come Cimetrix the in We sequential I toward quarter-over-quarter adoption anticipate an the growth seeing momentum we

Our our relationships potential and customer, the recent increasing business my DFI also. strengthening leading-edge of technical evaluations conviction for for Systems CV with and deeper are

I Now over will who provide will review turn the call his updated and provide business. to financials Adnan? on the - our Adnan, an perspective

Adnan Raza

hope everyone. you Good speak John. safe. you of again and all Thank your to today families and I are you, keeping Good afternoon, with

release report to Relations in review of our progress our section on website. up-to-date the a We to the are bring financial the of and of pleased management you Investor the We the posted and earnings first quarter results business.

we filed discuss materials Form the be Please Our today's XX-Q website. all financial our in note non-GAAP today. is has with a also provided on basis the will financials the the call of in SEC reconciliation on and GAAP been that to results

are We we to a X.X Growth more full-year times in directional the level in than quarter of off of bookings the XXXX. XXXX, of good bookings where for the booked start trend continued XXXX.

total double trend core our bookings business aside the to to prior bookings continuing transition quarter with our QX, For and Cimetrix deliver. analytics were leaving

QX this number dollar of Exensio in million revenue. million bookings XXXX. booked booked continue half already win the number Exensio size compared total In alone, the approximately all than We contributing contracts, to we deals with customer plus multiple similar our quarter, to have $X of contracts large greater of to recurring $X

As cloud, contract customers have appreciate well. we Exensio experienced the analytics growth sizes on the in as

that ahead sequentially Analytics was business well the in million XX% year-over-year grew QX quarter. this core Exensio, of we XXXX in aside double-digits percentage our of Even adoption growth offerings in growth the bookings our versus more in solutions. was revenue of increases and as to and from Europe has is Cimetrix acquisition up $XX.X putting a effectiveness to realized. XXXX Within versus Total revenue targets. on XX%, pleased part contract effectively convenience than Contributions of of strong of region QX with in a and quarter manage up XXXX more pandemic XX% customer We of was last our the the and XXXX. particularly XX% played XXXX of their subsequent QX X% cloud increase versus were largest up XXXX. first of analytics the XX% QX acted of existing as and license an with the basis. fee versus manufacturers up XXXX, Our the and an the million, analytics in XX%. getting quarter lead a quarter of semiconductor for a operations The to around analytics seeing fourth from Cimetrix revenue world catalyst increase QX by versus the year a and and was increase Asia-Pacific greater believe semiconductor and XX% recognition efficiently Exensio that platform our revenue annual $XX.X annual us their the subscription shortage quarter the are of

welcome in We XX also customers about. our new from pleased this analytics very which quarter, list we're customers of Cimetrix top

comparable to Our staff we that more which expect on analytics from Exensio focused down analytics the on Combined Exensio with streams Characterization deal, of our gives our we're next automotive term-based feel than Cimetrix, last products us comfortable investment. sequential us platform DFI analytics chain US with percentage strong and for from in cloud positioned from and this of derive quarter. the uniquely cloud QX quarter and we annual shortages to more achieve revenue revenue ratable revenue revenue increased and Exensio Therefore, double and cloud year. Within was semiconductor the quarter's supply our revenue the recurring growth platform. a of vision. ARR-based of building about production This coupled planned DFI industry our analytics capture The combined software allows a was Cimetrix in a year basis and Characterization geopolitical developments, value predictability, bookings large we are to with confluence means capabilities, licenses, revenues. help

potential XX% business first IYR this year mix analytics growth and of quarter of our the analytics This may revenue. total comprised with future the of win. IYR analytics continued the and change of For

as to software the we the to continue chain. of transition our global traction provider gaining are independent becoming We supply analytics semiconductor largest solutions

with share $X.X this based while have QX you Our enjoying a IYR customers, the gain maintain business is selective royalty revenue, it million of contributed as XXXX few we a margin know business deemphasized, revenues. in high strategically but most that

for to growth annual the our with decline XX% revenues gain exceed growth. approach target year. mentioned, the first basis, the about year's XX% analytics As line total margin XX% versus On of of in we previously quarter. in and XX% to half was prior the share full quarter quarter second we confident we remain a XX% year expect to last Gross and in have revenue

were million Cimetrix the million compared versus the and of of higher acquisition product will year Cimetrix. with These last QX in QX Cimetrix our revenue revenue. up infrastructure subcontractors. $X.X to prior a acquisition. of Exensio subscription were remain due were gross $X.X and our to QX, We expenses and Our as the from to year, million, and up up for compared recurring investments of margins support growth. with cloud $X.X growing increases analytics SG&A versus Cimetrix expenses committed which year up personnel R&D acquisition to and investments by the increase smaller $X.X driven streams QX. Majority future strategic million, our target compared support result growing coupled quarter some to of from expenses to prior XX%

will to plan cost to and Taken and recurring SG&A our including growth compared levels, loss to to transformation expenses, and of in related was the With delivering $X.X able stock of investments flow analytics million of $X.X the and net our Cimetrix to to be R&D together during XXXX. revenue and the accelerated increase sales, manage we cloud million short-term to an cost while business, acquisition. a company investments acquisition QX. of investments, buyback similar with due to investments December loss on quarter Cash support attributable for in and at our sheet, in million were impacted was million, year cash $X.X we regards by net believe $XXX.X to Cimetrix $XXX.X The steaming. total QX last loss Net we infrastructure total are million. part for was net cash, million, of line related primarily loss $X.X to balance our and compared payments equivalents the totaled continued to

available. with a is our operations the PDF expect consistent our no consider each of direction to and from growth XX-years. strong analytics and benefit very quarter, our recurring for of positioned generate us With on and with the revenue strategic cash pleased over expanding become growth Cimetrix during position first for quarter full-year make the well We posted are we and organic our business, history we opportunities of In quarter they growth In measurable summary, in cash progress XXXX prior overall acquisition to last strong the as the the continue deliver revenue the the acquisition. business, streams in positioning versus year-over-year to the from year. double-digit analytics bookings both well with debt XXXX

We quarter call let's With a for that, and the please are first up pleased strong the of forward XXXX. the with results questions. start the Q&A. to open Operator, look

Operator

[Operator Instructions] The comes Christian [Operator from question. of That line Schwab. opened floor question is is Your noted. for the first Instructions]

open. Your line is

ChristianSchwab

we to can before $XX customer the as Great, regarding be a commentary for taking exit we that of would a then guidance get thanks taken bookings reiteration large run previous - million assume might my rate that questions. year? The Advantest

JohnKibarian

business, Actually, of these new bookings Christian. are

So analytics and beyond customers Exensio Advantest our platform. is this adopting overall -

ChristianSchwab

still by guess expect get that to in the of the Advantest ramp we type Do then? year, end to of Okay. I

JohnKibarian

do, we did will get through Advantest new we year. in starting of and are announced believe We a we And of that bit the by announced - - little Yes, go expect as say technology. sell do we in we that us the quarter this include Christian, QX there to year, we at above happen third through. that PDF QX as revenue that products license fact, this level additional that generate in least to some that for was products

ChristianSchwab

in IDM It seems The reminds you your perfect. any we change you talking to you that handicap think in know, decided large there, lot and guys? right, be they're Is other try that companies, I'm you who going about? would that substantial sure, be a become to previous there's the me past? through it industries, foundry a different Do some all of you who transition the who type helpful? of to out to QX, Do going is made is of have of future. Okay. there an - I'm successes of know think for there opportunity other a way

JohnKibarian

center it's things I starts leading took increasing multiple increased on an quarter where Christian. talked on we of we activity anything worldwide but Korea the and don't just focus some XX any were it in of can't the my around I Yes, about which in felt kind think part speaks business. to timing the in Taiwan I been remarks, first past prepared customer China we companies one be in - happened when remarks, leading about certainly leading - covered mean, world how we in the my world. XX this higher gets edge, it's In one minutes, edge, the the our the I leading-edge Sure. is that we expenses. on historically on got And predict US it interest it's amount and or to did pretty expenses, front - edge company, and for has We - do of on focusing resulted this and see the world, the - their and other due places. talk good edge on when thing, any because prepared single those pre-sales single in part leading to

ChristianSchwab

can't to trying when set think from certain IBM I you went us give kind that, I us number, a I happens customers, remind - the of, Can in Alliance a zero material an of of you example - remember. to think was can ramp? of, of Yes, previously kind but of

JohnKibarian

there sure, time period. three that were in I about customers so - that Yes, mean it's

prepared Adnan's from the lost or XXXX for you go in back, dollars year operations actually And started was remarks we $XXX money year, last only those - companies cash it's last decade the the once over investment, operations. so. then from to If that million actually make

the that's say the PDF when making or So when customers bets, is to bets very tend we very our Gordian going are technology can't knot big those this is investments - in happen very, helpful happen, problems. very time. to old that But But untangling if big. they these be

increased anything don't so And think think that the world, we've an customer. why customers with specific it's seen activity I speaks to any to around I single right?

Operator

next We Gus question of line from the our have Richard.

is Your line open.

GusRichard

analytics my percentage - taking your cloud? now is for the thanks Yes, question of business What based questions. in

JohnKibarian

business, We haven't a of the becoming I'd broken have Gus. I with it's very total we that that, know why of number bit me. it licenses is - collectively Exensio percentage off sizable a have. my that head, out specifically but say the like don't like the and for I in I'd it's don't time-based front know Exensio a to top I Gus.

a through around and We lot pay cloud the of for and we of the customers buy our and some have supplier. money so they where they to Exensio turn service pay cloud

other customers have hardware they cloud the pay it, of We services. us contracts Exensio, the all managed the but of subscription for including cloud with who already portion have for the supplier

So whose the in in etc. then, the lower the hardware provider margin is licenses, but higher, slightly provider. our and the we gross effectively just manage that but we cloud - systems the payment the time-based portion and to lump It's manage our we is case that ingestion cloud, data it's revenue because

GusRichard

is trying I'm how how get ratable of to and is What much is at it your revenue much of software upfront?

JohnKibarian

of vast majority there. ratable Yes, its the

minority relatively licenses of there did licenses have ones. Exensio do there those customers, $X it's quarter basis, still of I customers - from We were large bookings was that a in I on the time-based a think some million had a as device no smaller but perpetual last perpetual business. all said not contracts, or either over of - were, number of cloud

GusRichard

over of generally three get or years? revenue when million $X spread most you the contract two So

JohnKibarian

was quarter everything I think Correct. almost three-year term. last a Typically,

GusRichard

Perfect. I how electrical and turn it that want about into know your do And business then it's I to on forward? and although in very what And does How characterization, electrical DFI software know business, does but you they're thinking characterization moving business how be different the monetizing you pro, together. tied I the mean? say plan that

JohnKibarian

But in sell and wafers, most scribe point remarks part, small IYR of selling of an kind and little Yes, done their my Gus, factory. product the they a line use as I with a foundry. customers a Exensio still not bit when and historically a talk Sure. for you structures They are we foundry historical historic has deployment this for basis, we've example; way over process doing did a the do so more it's at for that with of, our many years like treating more an - about they cloud where now. prepared acceptance the the at customer control a that give customer test; they're are I'll them even though cloud. systems them establishing test partnership And not that's, on number

line like whether as ship of others combination cloud they well. It's not. it does with information scribe series very MRB the wafer analytics from a or is number rich a a like they the offering an to a use. but So And that to used scribe the of in alignments to cloud, that data of the basically customer application decide all application and set which is on data, to use call and they the correlation the the that vehicle on of upstream

GusRichard

business what's it the just charge - Is you do model? How that,

JohnKibarian

a It's subscription.

GusRichard

Okay.

you characterization the customer. the vehicles So will for do

buy the tester a You and fee usage? for also pay they'll parametric

JohnKibarian

annual correct. an On basis,

GusRichard

systems DFI then key basis, and your of and last placing ask somebody got let On some with one questions. an customer? And it. terms for I'll the in annual in of field additional more status What me

JohnKibarian

Yes.

increased of in - So remarks, activity an to intensity happen. in or as third as my year. of early level quarter, And this systems you we quarter prepared I early we do we know on place second the quarter end the of The first maybe this timing to on that remainder but additional expect of year. we expect DFI third get into said have the

GusRichard

Okay, this multiple customers with or?

JohnKibarian

at in with remarks, activity my customers activity think is prepared point, this there this got point. three going I told at Again multiple We've Gus. on customers going on or with I DFI four

GusRichard

they're logic? assume leading-edge to reasonable it all Is

JohnKibarian

that. Yes, it's assume to reasonable

Operator

Your the Weiner. next of question Andrew comes from line

Your line go ahead. open. is Please

AndrewWiener

Hi, good John. afternoon,

given on customers. small think we and for Just bit then current little into it a your are a you we to significant talked, with contribution? start of, when expectations obviously a CV guidance if the question, revenue sort on Christian - leading-edge DFI activity think that I give, DFI. you tailwind didn't more selling guidance? is you about of call historically up think bookings and Following at - to that should about with and past when that when about particularly Gus's have potential ASPs multiple significant that how see Is see units a built we matter, in would with similar would a you're last exiting

JohnKibarian

years Yes, little we DFI over this yield relatively so the capability may do bit you bit large, it asked but well of over few some quarters. question little takes past. be next picking and few back build and chunks are We look capability but of expect it to CV and you way up different of ramp up, It - the kind characterization we in a a Christian mix that do of the - know next quarters. a with out as as the looking kind

impact a expect be and be standpoint in this year. this to bookings while will up and be the quarters year. modest from of substantially, can up relatively bookings the for next more Bookings We in revenue be meaningful revenue successful impact; the more modest more it built in relatively meaningful the will will be than revenue build more couple the meaningful

AndrewWiener

some, but be it the a would Or would at talk to revenue leading model, sort of, clear IYR that of recognition? when services to that engagement - end? - category, or with the in just be edge an more it the you back you contemplating talking you're And will some IYR say just ratable so be Okay. customers a brought be a IYR royalty

JohnKibarian

remarks, my like share yields In IYR contracts Yes. prepared used in and is a is the right? and in with deploying, them contracts share gain we've past customer over to in It's many past, clear, an the which I'm establishing it existing period measuring that's done gain the years.

AndrewWiener

within the players analytics lead other way DFI But category, Okay. likely they would customer is? fall leading-edge the currently the

JohnKibarian

Yes, that's our expectation.

AndrewWiener

then about and like? first of on know, these, number was that, it talk had what Okay, going pilot secondarily what a seven-figure bit of pipeline hear wins activity Can the or looks nice type to a beta have Exensio in and little quarter. the you you they are pilot you

JohnKibarian

yes, remains doing Yes, cloud we're this that the on that in level control a primarily increase they relatively in big large to that cases Exensio process mix fabless Exensio only yes. of Sure, the process activity a wanted to control there companies prepared talked customers control license. capability this his remarks. using some quarter, annual them on of process include as that were couple were relatively renewals use the continues that new rate their on past on-premise, all their about the run in step-ups in recurring Adnan and

That for the with things semiconductor Exensio that on-premise, landed. are anticipate data, that. describe from with companies, - we continuation we're customers, PDF, and that expand productivity. it a theme, particularly Exensio a lot markets customers new on a piloting something the incremental same customers now confusing, number cloud you no Exensio for we have way with that but their of look to the is told most second moving As upticks. and beyond, helped have automotive look at extra historically quality manage lot call buy like cloud of been get or of PDF this have I capabilities we on at to lot today. been the of activities I've I releasing When quarter some We're like that the customers seeing a sensitive we PDF

Acrobat. So that don't we sell already to means we Exensio doors and a are expansion. knock that go what and they kind folks part think of means and to using PDF need are mostly know on customers PDF where of some lot The doing we don't of

would but of it the So new inside a it is extending vast names, some accounts. lot I say are majority existing is, of there

AndrewWiener

that with defined was you is of, guess of are characterize believe the into new then being guess wondering how from customer served developed, the, market my new question meaning, systems wins would I those Okay. expand call And it? significant where opportunity you, how base that are referenced what market does Cimetrix design - are, Just how opportunity I it last or sort I share there they're perspective? I sort being either a

JohnKibarian

Sure. Yes, and picking Andrew. thanks for up that, on

versus get we but hard that a where ones it So yes, quarter how the this wins alternatives - really rate were quarter many for they're following the get very remainder feel we'll the advantage third-party year, to activity average over, that did the bodes or the becoming business. two of taking year platforms. themselves work and quarter-to-quarter connectivity systems. places of closely - of in quite substantially getting the tracked year as you we the But run run those our products how have - maintains for that - those well the opportunities rate also put connectivity but it's one-time to much year, And rate solutions don't the success customers learn more see rather this kind last do next into hardware into year the is team the evaluate about as and How field. wins they high. products we've kind this opportunities up the design ago, know And of, license is the software designed

their available with is do the to is the customers part to about step able to with the knowledge advanced and a data Got very connectivity connectivity amount in to off have want form be analytics analytics, make I of of there like lot the equipment tremendous think their are a that excited that and that about very of folks it. tool strong they because connecting first the get to analytics, something Advantest right? in is customers

Operator

comes question line the next Your Tom Diffely. of from

open. is line Your

TomDiffely

Yes, just point to hoping, how little you as been afternoon. a if talent you attract I - and could transition to ability the company, retain John, good an how of analytics about is - software to has an from view? talk was employee bit your

JohnKibarian

Yes, should talent we've you but the able pretty that talent. we good the ask been always retain. feel about to Right,

in and good felt Kevin and in in have greatest team of to the the in locations travel I last City Lake Salt City and there. we a team enough I Cimetrix meet were team I work. I one thought the XXXX, Salt The places have there We to great Lake to get got week, placed, vaccines, great to

came about great obviously team, you to kind able live location very so, locations acquisition, this want good where added locations a as and in place to came, that the quite but a live, pick about the it's - team we been have good feel is And I teams past we to we of, well. great in those to also Area grow added strong other Vancouver, a there with mean, it's Bay and team. people the to we we for Lake our engineering the feel We've an Salt tried team know, locations and PDF year that's and

has particularly strong. side in the is we're So has cost-effective and industries acquisition the retention engineering living on been good very quite been where team in

TomDiffely

of, this is, a facility around environment? be of maybe work-from-home guess that I workforce much to located centrally kind your point it like a Okay. lab And how of a And you have? how needs then related, or much at

JohnKibarian

rope is Yes, joked the Cheetos. a I environment the of at - always perfect their a engineers bag think I've and couch, work

which have the is is do home the from data like, today workplace US into - doing well. feel the and So we team. all engineer - we where from going before. - We've use surveys new employee engineer is has quite coming I the I going to not often what do was office there the were people collect software, of they high. to and vast And Adnan productivity to the - in offices back tell they it's been go the me our working for whatever - them, I been are particularly look as we think in features meetings majority to doing the in Zoom I now the is - and we're

day in Dallas offices And is China. Lake really back never folks Our office going in Taiwan closed. between our opened, every and Asia Salt

it's be days. back, be working would I coming not and but it number work in working some some are week; that back from will people say So typically five going a of days of days number from to home,

Lake Salt if are in be in lot interact not our say folks stuff you office, of anyway, Dallas to But is near anyway, they where always or we wherever. We folks you a the are with to Clara vision are whether teams go the trying Santa and geographically product amount so in encourage time, people of in with business really interact Clara, it's not valuable. have and the you dialoging of in city stay they can the or a some Vancouver may spread let's an the are development office, I strategy office are in whiteboard office believe out the lot Santa so for or

the period. So our than forward in distributed folks way in a we are did going going probably more a working XXX% not this be a basis, past, to but on

TomDiffely

having No, ramping like already, we to to team, issues up a great Okay. in up complement thank you. lock you've sounds development software hear, the full so it's hand got as talk because have or

Operator

of Your from the next Schnierow. question comes Gary line

open. Your line is

GarySchnierow

placement. the conversation to of Hi, John. the I want to go back DFI

JohnKibarian

Yes.

GarySchnierow

of I eProbes? the those assume that

JohnKibarian

That is correct, yes.

GarySchnierow

And placed eProbes how can us already? been are - you many tell have

JohnKibarian

in couple different in at a factories. are two There factories least

GarySchnierow

Okay.

activity you more year? increased And you're when additional that were to going later so this assume play that I than systems, one saying

JohnKibarian

that. believe we Yes,

GarySchnierow

was had is that's great. the Okay. Gus ratable And, That asked is ratable. question that? just Exensio clarify it and majority that about, - not revenue vast is analytics Can revenue you answered it your total means the or of

AdnanRaza

support get some the in that ratable to machine mentioned licenses were even portion I at software look ratable we are is as have, is Yes, but we machine of that there's shipment, revenue well John licenses time-based the away, within portion that shifts the that into license, that ratable. mean contracts Cimetrix, Yes, ratable. there components the that those frankly because if that the the that's go perpetual some Exensio, the we and there we to then the right the some get of as cloud revenue at a maintenance from our are

is classify So, that's why you about adjustments, there at well more know, probably don't analytics. fees currently some I that But we make We also our to this CCG. up. if ratable, as know of at we half was But have there within out. in of the about measuring and John is - do in within our being cautious, lumps it as a do starting the at clean to to lumps ratable it we which within looked couple it's toward Exensio of percentage ratable. break work because well, as the you things, already - was the this half - some way upfront why time I of need the TBL, some to it's analytics looking is is But percent as head

GarySchnierow

it number And working you're getting forward? specific saying Great. like that us going more sounds for on you're

AdnanRaza

this great it's everybody this. to Yes, we and mean, is, do a need I asked question that

if that been later we that to this we expect we've you talking that be as business, by the So sooner. number, hopefully can about the not year transitioning

GarySchnierow

you total Okay, similar your great. said be quarter? quarter-over-quarter to in growth And John, revenue quarter think prepared first comments I you that expect second would to

JohnKibarian

correct. quarter, fourth the of growth Yes,

GarySchnierow

of quarter expect you the is that year rates? second third - half quarterly you is over and would quarter growth third that second there that over similar be the I see fourth quarter Okay and it something to down? quarter fair should slow for Or that

JohnKibarian

number from approach gone we quarter. specific that specifically our total But a - it revenue given growth broken Gary, our down we Yes, to basis. the to and - third given expected within annual haven't growth approach XX%. haven't fourth we and the specific of we've target analytics

IYR contracts we you pretty feel the substantially, customer year, it we if this the have in second grow grew but the We revenue half gain as down we QX to versus quarter, of still are through look the activity you that we bookings off growth share have - was yet in QX a versus that through tailing significant at this relatively headwind of some QX, we said, very headwind know, comfortable headwind, experiencing the about grew.

now, than the So breaking QX it stronger half right we're QX, first but not and the out the to overall, half year. year of we of expect the do second be

GarySchnierow

is great. happened. as understanding to guess, dots, the the I weak IYR trying that Yes, connect Okay,

in it bogey? was is than and I rate in I but XX% assume up I like seem think say growth, much which, release, doesn't year-over-year growth analytics quarter, growing, think first a press the you analytic XX% but continue, of should healthy that your greater just

JohnKibarian

Gary, we'd pretty year. about we're like bogeys, be we good our going this feel Well, to to exceed where

AdnanRaza

a the mentioned is Yes, ramp right, there we mean I happening, acquisition successful gain by to there's is shifts There very lot of DFI of is share. win. the the expect offset the business the team Cimetrix in John like that what delivering, there

comfortable why have. year, which So there this is pieces we what is we're saying a lot of moving

GarySchnierow

existing to No, DFI, machines I guess I additional Right. back appreciate at customer. the that. just those

JohnKibarian

of still, is don't what, a clear where got activity a think point we've Yes, not think have with right. me. customers we this bandwidth, handicapping where at of exactly on is, going install handful saying We we're I and I lot to comfortable

how we them. have and them, have when, to this and to we will wants customers capacity make important will sure up for we some So can bring point, at be limited is who see to by what

GarySchnierow

Meaning is multiple are interested more the have more devices interested, customers moment, - interested you customers saying? at in that have customers you you what you that have

JohnKibarian

capacity we're I our greatly up. bring to limited and think install by

as have We well. some machine limitations

Tom too question people DFI asking side, everyone through and many things - and because on think much, going the be for and home not I will to and for the can the be, Exensio how like we with going think still come kind to we're pandemic like, the so so from to not side, what's just I'd right of that work now, absolutely, do. you go was there, could Cimetrix the specific first - I of see

Operator

we have that question line from Hirschman. last the The of is Orin

open. Your is line

OrinHirschman

the on progress. congratulations Hi,

situation. the acceleration with aligned is and both the feature narrower more a on capacities? making it of It more yield Is What difficult Is terms general, just is... in in that terms fab that acceleration? expansion the bookings? In of of driving difference

JohnKibarian

Yes.

OrinHirschman

more? have a given any of give lot Color even - color, you you but can

JohnKibarian

Sure.

on DFI connections the are the layers, just that characterization on a broadly, in the particularly general, they edge. equipment, and piece connectivity, of light in increased of leading of With wafer. is these smaller semiconductors, the source, sizes the XD yield every would bigger are right, complexity mature sensitive that the a primarily wafer, per of about about today And about Exensio characterization, But But at just it's you with I XD whether inspection what in players really with business on and nodes up they're opened. at is look doing think of surface we some in most see loss too, as is say parts, not size the the to the one as greater semiconductors at to almost shorted really leading the isn't edge are processing one that inspection and our analytics is you look at number many we're of loss the inspect products, electrical what feature the test the layer drives of the drivers. design just lot for of characterization yield those It's of se, for well the leading they on to least volumes really half DFI, are say using we the really nature the conventional things I allow itself. the or driver still the normally and with surface days. structures, between important between Cimetrix drivers, very A silicon activity feel But I feature and is Cimetrix activity electrical up the increased overall. equipment and solutions the it's the than respect investing ship as really for would edge. you would

OrinHirschman

When available to I to those by to know the should answer customer billions I are across obviously to continue anonymously you perfect question the the used be you, perhaps, a to are is This himself, collect you points Okay. algorithm data customers? able that collect, but data of don't. points old they

JohnKibarian

Yes, that's a great question.

allow, more usually So data can process algorithms, improve benefits our our the data fact detect and that algorithms defects from customer systems use improve effectively. could we to customers we and cloud requesting the that contracts, outliers - our faster, because our the data in can the our systems,

So for can the it's we good community better. make analytics overall, if our

are we of that contract a these petabytes data few of in that. call that put growing and our manage Exensio and We on solutions - days. fraction our we've managing - we so have petabytes And

existing load And sandboxes so data in in will we capabilities our customers newer data. to analytics, use fast, to kind our optimize and newer data dicing and benefit from ability ways things of our parallel fast, retrieve like, and of to slicing improve

OrinHirschman

know assembly? if that How know any get in Okay. the could really you And mass, instruments answer so does different years beginning an to kind a point packaging of across desire, individual chip, you how it critical will perm finally many and in and - back-end unroll and etc. And but terms they do before many terms that perhaps how they again, picture it vision there's from long grow test - to get to I company, of guys of tell, you does if don't across so final how end even of could the to of take whole that you it cycle it? right to where a today maybe take the of long through

JohnKibarian

at - Yes, Orin. getting getting point what important you're you're very I think a

send manufacturer a shipped chip it. get be a tested, or a that generally customers, go order Foxconn will to Sanmina like company's name put of facility and - wafer they to fabless eventually sister another then never chip facility on to that to speaking, it to some to and and fabless from our ever tested, site a customers, they be another to have did facility be So system. industry our to foundry, And a our packaged, another through into

data very chain give supply the the across DEX of data capability of at visibility out inside days. ability is these foundries, relatively obviously their at the visibility limited called is points and that to nodes, customers their foundry the some important. come So the see they as We process their OSATs, provide a

of some today is there level our So customers. that for

I today. think what than be it could is available better always

to we sure that's customers of limitations available get to go our But use for capabilities, between network Some companies. suppliers, in and transparency and due of the the for nodes some of expanding for are test DEX the way test boundaries there, packaging as the final through and this that the we year.

system. So suppliers more the under already likely their and are covered more of

OrinHirschman

part last for process much does And metric, is, the my of whole that you? question the how accelerate

JohnKibarian

That's a great bit point. Quite a Orin.

So collection. the the metrics for a are a defining standards of with company, history data long XX-year

Association bodies something printed Board in supports leaders standards, factories, way, in the it's assembly, open to in circuit an we the are them, standards and we of Circuit software back open-source I board manufacturer, in working - like board front the associations, in the the way whether in at world fashion. and of those to adopt but many in open in with other XX circuit print Printed our Taiwan way. standards open Obviously, the want community they but that an define the an so think end, also end industry SEMI, share do they

on together that That ways we of them can bring through the collection why and history long new with data standards. remarks, bit we standards. analytics, of those those see acquisition and of deploy that's help enhancements in a equipments a quite means, working lot closely we XXX where have the that vendors, my closer with last very prepared about We standards,

overall chain. that, those So very supply that look yet, vision important to the accepted quite fully the latest customers - cloud people analytics our want about the in so is manufacturing at way on their and of things an part. end-to-end the centers, because proposed access insight been that important the have always really across equipment. to to available more to not Cimetrix piece but not data, newest implementing It's a have have software, get been can we're the

OrinHirschman

on be customer that the to that terms of order, give analytics? will in short additional able And done being

JohnKibarian

Yes.

it's connect company of a years, they and through us tremendous of the fact, the in these them adopted XX-year really now product together, advantages with to history, short the coupled the engines. of them team work to get but the Sapiens, from of One that due can collection a get with equipment call acquiring standards, made into a two them it Exensio order look cloud define the amount the hard in the many from decades like to out and develop coming is data over industry, equipment

can And of a quickly, see do so the to impact. we in quarters matter things pretty

Operator

the There call to Solutions. are go time. John no I Mr. of ahead. to further CEO PDF turn Please Kibarian, questions back would this at like

John Kibarian

a you Thank Have look call. forward to QX you soon. for in talking our We great participating with day. again

Operator

today's This call. concludes conference Thank you for joining. all

You may now disconnect.

Joseph Diaz	Lytham Partners, LLC
John Kibarian	President, Chief Executive Officer, Director and Co-Founder
Adnan Raza	Executive Vice President, Finance and Chief Financial Officer
Christian Schwab	Craig Hallum
Gus Richard	Northland Capital Markets
Andrew Wiener	Samjo Capital
Tom Diffely	DA Davidson
Gary Schnierow	RiverPark Funds
Orin Hirschman	AIGH Capital Management

PDF Solutions (PDFS) 9 May 212021 Q1 Earnings call transcript