PDFS - Earnings call transcript Q1 2022

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Operator

Good day. Thank you for standing by. Welcome to PDF Solutions First Quarter 2022 Conference Call. [Operator Instructions]. I would now like to hand the call over to Joseph Diaz of Lytham Partners. ahead. go please Sir,

Joe Diaz

and on all your the interest your Christian, joining time you us ongoing Solutions. PDF today call. in thanks you, of to for and Thank I appreciate

is operator the I'm Partners. indicated, name As Joe my with Diaz Lytham

Relations We PDF. firm are consulting for the Investor

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

for materially. The to today. its and information of solutions. on statements Act made PDF's forward-looking referred during PDF them. actual results, rates to be company PDF's results the has meaning will of financial on could this risks based forward-looking Reform Litigation available The including call statements differ the conference no this the performance, Securities obligation of are call and regarding Some update statements future demand to XXXX, Private within growth

and open management's You Risk your PDF titled December Form for the the are remarks, John fiscal Officer. Executive be report like will SEC to At said, He Factors I'd Chief Raza, and on conclusion XXXX, President by disclosures President to to ended on advised company's annual filings. With XX-K similar section year that questions. Adnan in the of subsequent refer the introduce Officer. followed Executive will Financial for Chief we Vice Solutions' the Kibarian, call and prepared XX,

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

John Kibarian

you, Joe. Thank

our a to great year. was The start quarter first

Before in about quarter of the detail, the perceptions Adnan the nature have the discusses and financials our business in of I comments our some market.

continuing. of the strong trend experienced a XXXX same last quarter many we bookings with first built The themes that year in

ship a this and Customers increasingly executives and the quarter, COVID cases, to supply. lockdowns and Despite result to these in than war from consumables. because us spending of trends, for and had quarter. the yield which uncertainty bookings to customer in the anticipated, the fewer of tools equipment, very share revenue noticed revenue the backdrop, see improved some to supply For gain ramp modestly contribution made was shipment expressed At our the from meeting as a requirements effort shipments. quarter. a we sanctions in time, availability ensure first uneven we of increased same analytics in the industry had contribution of some strong wafers integrated run-time licenses increased Ukraine We constraints, result did impacted wafer as customers'

trends, as control first Exensio build We the also licenses to out all a from positive break perpetual for business our uptick quarter, the experienced while in macro customers perspective. in our process revenue not capacity. Overall, new favor in tended

touch our and briefly were quarter. that in very I puts function activity will challenges highlights and activities. macro in bookings were of some business these and partnership takes and the the Beyond a strong opportunities, results on

makes First, signed building last chip PD customer the contract. its leading-edge follow-on software in signed This PDF the it possible large we on a Exensio anticipated, a and broad of Quick the characterization case customer Start test to range quarter vehicle chips, interface and with as optimize for contract Analytics designs. DFM this year use foundry to and was of for fourth that

test new quarter Process usage. storage the at this Cloud and These took Exensio advantage well of our other was contracts customers. expanded Second, of modules. customer contracts and one over quarter cloud in the for early as were and well tiered Control ARR from XX% as in both This of largest adopters recent Exensio in contract cloud renewal XXXX. Exensio The were There as the Cloud with they as and customer existing for the of consistent was Exensio deployment. was one history, the a contract first grew for renewals

strong We experience the strong our the on equipment us And licenses. shipments to absolute SDKs for customers' runtime challenges of quarter which while basis. chain, supply future continue confidence licenses onetime customer still an gives connectivity but making ended we shipments, license in Cimetrix's also contribution impacted adoption our to of with by products. Third, runtime from speaks backlog, record in

to collaboration Finally, other industry leaders with collaborating -- with of an our continues important par be business.

Exensio last diagnostic Tessent partnership EDA announced As our discussed Siemens we we with quarter, with products. to link

Our a attended, customer Soffa to partnership link Siemens builds their with high. Like manufacturing highly operations assembly access Kulicke Exensio this and for early our on our & an engagement analytics follow-up interest assembly in OEM the announced In includes April, QX expanded to customer Exensio off our collaboration program. This K&S collaboration, traceability. first was with where enable is relationship, webinar with existing starts equipment. we

Our activities systems. collaboration expectations of we'll this products with is IBM chip processes relationships were customers. to the and our working all SiView announcing X.XD soon, our User K&S our a Conference with be Overall, anticipate as customers' week, first conference. add and more package implement in to system conferences coming and IBM, chip next is assembly with true quarter collaboration entering and test. XD with year. new This for particularly the Advantest, also Advantest's our speak to and SiView's we conjunction employing desire strong customer and consistent up and continued in result user system analytics the to group companies, in partner Siemens outline back-end Voice to and for

broad integrated customers. from semiconductor broad-based. remains into cross-section X the continued quarter platform, the for anticipate is circuits environment We Now for demand robust demand cloud analytics and of on our XXXX, a particularly

Given macroeconomic the spite year. in provided we the uncertainty, summarized outlook the of in earlier confident I remain this and industry we just tailwinds

of the history like the the navigating I have the to work quarter the and efforts in We turn employees tight quarter. over thank managed Adnan, would for company. first of call concert, I of PDF revenue the during to the all challenges Before many their contractors strongest to in to

his business Adnan? who the Now the and call I'll turn to provide on over Adnan the financials perspective will review

Adnan Raza

you, are pleased We're Good everyone. first Good speak to again and financial of all today, review to the and afternoon, the well. hope with you doing quarter I Thank results your XXXX. of of you John. families

our unaudited section Invest mentioned, and earnings Relations As in posted our the of report release website. are

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

XXXX. Analytics the XX% XX% at of and quarter increase The the versus over quarter represented $XX.X which prior Analytics driven are Exensio up of license Total at increase and strong sales. year-over-year and total to new revenues. start the spoke off an about first start was million, a came quarter-over-quarter. XX% XX% booking, of year's prior in software in John quarter in XX% up for increased million, $XX.X of quarter leading-edge first We came versus by primarily revenues a revenue QX XXXX. last QX

For versus revenue $X.X million. the was versus quarter-over-quarter $X.X million year-over-year a quarter, Yield Integrated Ramp increase a and $X.X million, decrease

at chain quarter-over-quarter well Advantest, was the believe that to supply wafer volumes gain to than progressing due improved leading This semiconductor global XX% to that primarily quarter higher our came a driving improvement provider margins as pleased transition is analytics and our to management gross share. We and ongoing insurance started in benefits John and business, versus reap widely the margin We quarter-over-quarter. all Soffa XX% within influential non-GAAP about with to first Siemens, important IBM, rather our We're in year-over-year of ability us is presales plans Kulicke for in efficient cloud the the also product industry. spoke collaborations resources leaders more XX% future and the for spend we & engineering of our the and progress recognized via our to scale customer industry. application allowing and cloud apply support.

for share a non-GAAP Bookings from the more loss software of license versus period, and $X.XX backlog to $X.X XX%, or of $XXX.X for to long-term contributed per quarter, the gross increase ago the million in of increased quarter XX% of million to benefited loss million. margin also getting perpetual or year the net We increased quarter per $X.X quarter grew totaled income end our the share. the per during $X.XX our sales than together at $X.XX closer share healthy which a both target. net year-over-year Non-GAAP

balance the to sheet. Turning

managed block an and approximately average worth We $XX.X the QX negotiated of of of quarter, purchased totaled we a debt. additional million. 'XX, XXX,XXX million of privately total we worth shares. when shares year-to-date a transaction share $XX.XX X shares of cash at carefully total $X.X purchased In The carry an conclusion XXX,XXX million of have available. $XX.X for this per became our purchased the number buybacks position of a in price approximately year shares After

cover of XXXX. the shares XX-Q, we Form XX.X May lower of count filed X, as of now XXXX, for noted when the shares latest number Our as on year the share XX-K than is of outstanding our million our

the the products look increased to to and As next on and expect in investment the year, continue the increase our in solutions. interest again wrap as QX we to we cost we rest quarter delivering of

All QX And on to year-over-year for QX expect to solid be the growth quarter. it similar year total we XX% levels. XX% first basis. XXXX, between in to We be total a revenue to full a was all, expect revenue

to let gross the are and With of meet Analytics margin me to We progress model or pleased business exceed target organic operator for the good XX%. Q&A. growth call making turn are the that, over with our our Operator? of

Operator

[Operator Instructions].

is first Your from Craig-Hallum. Schwab Christian from question

Tyler Burmeister

This Christian. is of Tyler on behalf

front with wanted do of partnerships more we So going how on the partnerships? the announcement feel should with That's to during quarter. the was that partnership Or end? guess Soffa partnering is customers Kulicke what we're of first, wondering, the the about I I ask back-end multiple equipment possibility now. I more back-end & you expect forward,

John Kibarian

sensor was analytics, has there is The very Complexity engaged well. hear are we on more doing Tyler. the -- with to historically analytics complex and where the Sure, end customers little most more our up. computer do are front Yes. see and to systems desire back chips. we This something the that and simple There's have customers across very analog end as John. processes. gone systems just We was automation

a of lot we opportunity lot So There's needs. there. a of see

moving probably end, have front-end balanced the end at front back it's more So also. on we but customers the do

Tyler Burmeister

It I guess, to That sounded on see. in then forward towards the nature bit trend great kind margin XX% little a go to That's sounds in expect maybe just it target? model, as wasn't is really XX% And would in that obviously of confirm, be like fair there And the to strong that want onetime gross I QX. the to that? you anything great.

Adnan Raza

fair. the and achieving we're year. for able the also the our what getting business, I scale Yes, seeing confident in with outlook increasingly way manage We've rest think we're to we've in been that's of become the comfortable the

comments our is a in we also up earnings expect release a that bit the revenue picked little that can compared you to to XX% be change well. positive as which the XX%, think I to last of more

Operator

Instructions]. [Operator

is question Tom next Davidson. Diffely from D.A. from Your

Thomas Diffely

or me two Let questions. question a

So I collectively? what the What collaborations? guess Kulicke, with before on going are investment drive IBM. talk kind just projected lines John, maybe end a those collaborations just of market is your little and your time how your bit you they those into about Siemens, revenue Advantest, view

John Kibarian

mean we we're I I Tom. go, Yes. Sure. as learning think

while. can kinds For K&S we've analysis quarters I of year case leveraging, of been quite prototypes at of advantage early before data, a up them them, Exensio things of modules over our what sure, learning their for a working a In to take looking take traceability, on they on manufacturing. we generally machine few on mean, least. for pick for and announced the

sure and revenues in make those the amount kicking associated in -- the got commitment then investment, level of programs. may will of we early year sometimes we've on some as really good start have take by them. time look longer. typically access then already our said to to So are They And part months of the of a deploying. small to they you there's them, the see with prepared revenue we been They're customers mostly quarters, remarks, solid some then I revenue. the folks some And to do

expect at after months sometimes was was X in range. similar getting about when maybe we minimum but you If revenue contract above that we it months, announced started Advantest, look X and the level the there,

Thomas Diffely

structured? of are their percentage how have these will these And the and X-plus get customers Okay. to a contracts do companies going think that you'll ultimately with be contracts you that? Or are

John Kibarian

Yes, that's -- again, something in that's Tom. progress, work a

Advantest the So as and that specific want the partner contracting. some customer to to sell contract want to customer through done customer our part. with revenue. also are to when see of pass and certain Exensio we And selling as programs, to and We've of sell see amounts are and them the and done programs, been of to the for may then that manage customers channel. ones sell those that we leverage a each customer Access the we them just software these the And their are or directly have those -- pattern systems a the they to pattern sell-through the connectors to wants situations our and early between IBM develops and front develops early each There through in we us to part. bundle the they've programs, through continue where access selling they been access Early our has separately then selling the choose and have choose then that then

to channels. leverage partners' course, One our is of interests, our of

we've As there's lot we an out in a never you of history, interest large channel, PDF's think of built awful our very, know, very yet because platform. latent selling

to we mean that as and So having the as does leverage with channel like possible, much have customer. relationship their direct sometimes the them

Thomas Diffely

helpful. costs start, in and that programs, there there is And any that when dramatic costs Adnan, they start engineering that structure revenue lumped That's date? of they the at into Great. nonrecurring your the get are to once cost you cost to then, once later certain these like look change produce the sense Okay.

Adnan Raza

or take contribution contribution. directly that these the it's like these getting said, mean is getting to to in on the right, engagements I revenue we're those No. want marginal perspective us. all revenue their we you incremental they're from all But either revenue positive be that cases, John

of good So engagements. the also in results yielding periods. frankly, our some of pretty part nothing are past and that model a We make the would over tend of of to results these ahead And already about feel regressive some been direction. our couple have

feel about pretty good engagements. we So these

Thomas Diffely

in then, And on progress the Okay. just tool finally, on the a DFI maybe John, little update field? the

John Kibarian

it very at We on time moving now get along running well. the so -- week, In good don't it do quite I manufacturing that. to work in really We were feel set had of the about that setting. of SPIE and and presenting capable was saw firsthand and in overall the of with approach, keynotes some capabilities a tens wafers semiconductor made full -- it's, R&D-related engineers experience in public they about talked or doing Yes. we're what basically on comments any up the the think, with machine we we conference, the what pleased

Thomas Diffely

Great. optical augmenting, up And is one then Or think is essentially to it, replace closely working do at... you And I it just guess, ultimately work? call inspection they together? this the set are

John Kibarian

years I a many the things think the was gotten generally, in thing whole ago, it's this see. we you many, devices on focus can't involved have

that, from user I spoke conference NVIDIA, think our the the one of leaders invisible. technology when at expect he

those vias, great. optically of And because open is which look [indiscernible] so surface billions wafer the you're at square visibility a a a X your to just even minimum that wafer target on to complex millimeter chip, there's features XX billion you if many see to and contacts looks of look you The applications, can't billions you the scanning yields. machine's at or chip, hour. the you it's per If billion need those lot XX at per chip a at early when have look see of

DFM the end see and case there. feel software, opens much with that's features on on So the for a the are only And on all an the Database have we the trends that. as system then look dependent ability very design. back analysis that to on Exensio we does inspection software the layout the analysis for all to our in-line

complementary think And trying more had problem for an it's layers we're I open see decades able industry XD So inspection. being open to not optical quite has problem. our to to important that more is with and a of across increasingly do now

to skating terms going program inspection the DFI like So we problems. the feel puck is is of where in

Operator

is next Northland. from from Gus question Your Richard

Auguste Richard

Nice Quarter.

you top a imagine and in me XX% will? of of already of Just predictable. between would sort is is your guidance give you how Can 'XX business, sense the analytics backlog, line, pretty is I on 'XX now the if which much

Adnan Raza

we backlog give well, XX-Q consistent of than with as we half is Yes. the quarters in on backlog color our X more last X The our that next the put this within years.

part We starting I within think to out fair don't year. break to X tell operating confident putting majority every within of booking as been tell that, the annual also that our And our in it's Look, year. that increasingly say I we're I the year happens year last next can internal will of the you this you higher. specifics, over board but for. plan, that percentage years, get of is has going we've decks every been what next percentage

revenue to So of streams keep the of our that of how and it's increased a those of on other headed function also there, that explore confidence. example, but time run on all recurring side opportunity, Cimetrix of lots are Today, well, across business. having make to for working are but areas. and parts as this again, We small a very recurring variety

John Kibarian

how it's and still licenses side, bit had go product in super still on the I But shipping run-time licenses we mean, licenses learning the down The next up runtime backlog prepared when shipped. a right? us some the I to than piece, comes side, on going the working all really shadow revenue. it's the remarks, as Gus. that perpetual of this the that be. of Gus, piece we that they're but quarter know ship, over any going which gives actually really about think know analytics In said There's little From we're on but our them more leading-edge Cimetrix's couple kind to of Exensio to business, quarters. anticipated it's backlog. piece quarter some we're under the don't ship in customers We my level, is it's, ratable, records, to XX% stuff, a a saw given Yes. each quarter, predictability something, of they We standpoint Exensio I much

Auguste Richard

they're R&D thought, super lot was than there I margin a gross And came a in and either engineer helpful. is R&D? higher R&D the allocated an to Or little more. than run that Was up that COGS higher or then think lot a on Do That this to bit rate? I at depending little doing, what is in thought Okay. we in came about of quarter? a bit going go

Adnan Raza

Yes.

So One that a asked. right? already couple of think I comments, Tyler

pretty gross going forward. about feel targets we So good margin our

So that about about should management how point the the be and a feeling proving cost. cost we're of

Second, it's of bonuses the with like things starting specifically where quarter, the accrue that also to look, some within that. time we QX personnel-related year start and

headcount. seeing a jump was you're why rest the as of is accruals gross jump on reason the as feeling the things and good are. the of the some our about bit onetime little to related of and some a pretty well. But percentage of part that's of R&D to margin overall, Most our target margin where So these a related year of we

Auguste Richard

helpful. Very

John Kibarian

improvements just that cloud A when as question. color systems first little were advantage in of Exensio on features of a bit of we lot of first take a the didn't Yes, get cloud, we themselves. the the -- the that on the lot

of we're have. I As the features that our available on that customers advantage are on-premise hardware taking in on storage don't prepared the remarks, talked just our call tiered about

so effectively why when engineers and lot and colder like when and pain cheaper now to To data software able Exensio, never IT for and a it's to return. the cloud now an has them. always the manage an and called more things. so offer We SQL a what them always analytics of tape. see RMA and from there. and cost It's tiered much -- can the never more field doing total are like have the growing So extremely kind another to cost by a standpoint, manage these And backups, the storage. go we're cost of that a this find ask getting money, you'll back do they features he that. can deployments has well, them you to spend go to us And feature why with the looks customers colder it more and let offering tier you storage them pushed effective say we're where back let for their lower or that's that a query, improving the But ARR ways customers, you and Exensio of you customer. that giving features us. go she they up cost still the manage of ask those for on And while engineer, year, just need And margin we're and was backup off go on it's backup

Auguste Richard

believe helping Got last it. sort Got arena about just bit could enablement. them the one And how right. customer their And think kind little And Very doing about you're full-blown customer that. of you're in quick-start you wondering your it. with and the what is to PDKs. talking helping just of customer if then heard you're I'm before. contract, helpful. I that develop a I talk my contract I've All wondering it and a you work is along ever more don't expanded for

John Kibarian

Yes.

of validated the a with usage. broad interaction all Silicon So support, be modeling very at to between the the with technologies leading-edge, very, needs any these IP, Foundation across layout

those that unit And XX% design, that like, just executive your will you look engineer we but and and analytics of we environments. of this wow, at analyze systems environments the that. maybe area asked onetime is when we neighborhood XX% test that feel unit we've PDF of provide different time win the know, you test different Nowadays, off an industry. an We in by the what you always we you can with chips when and information PDF. behave the say density with It's in highest of per per had differently design was as what's can get difference density design role,

you out all looking designs moving of family our we're supporting broad narrow of IP to try of at PDF really as a very important that a right? so at XX% from it, And we So go look exhaustiveness systems is data, very to the supporting you set the that look are of are broaden as into product leading-edge typically you factory families designs number as up of IP from going away technology, multiple a availability. which a to product opening at and set happens single

So been that the what there, that to it was we're share part to create gain license on subscription. And capability a we've and always of us. we able been away has was as share, series as a -- of gain effectively applications to given have unbundled able the

was the it well, a hook it like, target. on embedded we're hitting in was So the for yield --

gave or a away it. we the to probably of capital, help target. that So customer monetize lot we under yield stuff in at hindsight, under the And

for separately the to of directly -- it wants deliver, organization that that capability time therefore, it and organization over part charge application. with sell that can and the benefit we Now additional

Auguste Richard

node? Okay. this capability want. is And I can what it a anywhere you does you How... this you're use licensing understand -- per it doing. time-based Is

John Kibarian

set mean comes structured. a the of subscription depending or It's on It across additional vehicles. Exensio vehicles part it's that is contract a with a and analytics of time-based node set is Cloud, a notes license, I family of of where

vehicles IP conjunction with associated able those sometimes families, product use new products, new families. the to with customers on are third-party bring that in they as So

manufacturing around really design that interface. So it's

Auguste Richard

that it. they them? Got And additional is if Or incremental charge is... need for CDs,

John Kibarian

then charges they want a of it's if on are an with coming of base that use to There for associated assumption and level. product customers is technology that as into incremental There's certain the MPWs top upcharges amount to than a node there's more a designed.

Auguste Richard

you Got of me prior Can can contract? it. as it. is or is this help if old size an out, it size the Or opportunities to And it models? IYR then business relative Got you smaller?

John Kibarian

quick-start announcements, over see the These be tend of a as range can the range. you our Yes. double-digit These single-digit in be contracts was -- couple in to millions the in recognized the years. tend from million to

is Obviously, and this. to period. So for The renew the early the over see going important us value adding make we watch the -- these on sure happier do in sizable. relatively the very extend be, they're is time a be these that period renew we to want how we're because what more -- renewal to will system innings subscription the longer in, is

Operator

Instructions]. [Operator

Your question next Abernethy from Blair Rosenblatt from is Securities.

Blair Abernethy

Thanks. Nice quarter, guys.

John Kibarian

you. Thank

Blair Abernethy

Just I couple wonder One any DFI, experiencing or into follow-ups seeing on of of Exensio delaying growth any some of that be are now kind just a the Or components issues your Just with just way chain well? you wanted DFI product the driving maybe backlog, of may John, the X that is in or color supply get is, the really all into in terms slowing going here. really. things or guess, to you I growth. of sequential very part near term? end as the any backlog And of -- growth XX% is healthy. that? that Is that

John Kibarian

Sure.

question supply So first to chain. answer on your

the even go computers process computing configure deploy on For customers wanted to they've Exensio purchase some we've and who we sure, do things, order Exensio. asked on-premise, control to had for when And the and us everything we always found in way And line the to to, like of abilities buy is. your cases. front the there's many for lead course, to times everybody of up else be

DFI program we those what there ameliorate the this the need always ways good of need about availability very feel on to eProbe to. our So for remainder concerns should of Certainly, any anything. -- is are We part not by expectations year. remainder single in XX% of for our XX% for gated an embedded this growth. availability the year, It of as to Adnan said you any

for cloud. yes, don't period, keep a components us. for factor on right? is cloud and if it on availability the be would to we really time out a and could enough impact Exensio or see And up over it we being XX multiyear extending So shortage on it that it unavailability do more of affect much We could X, programs, And I be the on-premise as they year. But weeks, you out got remainder the that Exensio want DFI order year, a for us putting for our If And of and considering see. remainder always we've equipment this things not they're So like the can tomorrow, our need on-premise, of when for one cloud customers will of immediate. right? always on pointing us. on this cloud limiter to ship that customers for them capacity greatly what we spin to business X,

chain. I think supply that's the on the answer

Adnan over I for it to think you the asked. second turn I'll question

Adnan Raza

Yes.

the of I think at look, And analytics leading-edge again, about, revenue. we look renewal in for drive. CCG and business, that on. you in that, ARR for to of and look type one the that is time, more X We you second of it's edge. with about I'll also good. the the within I progress pleased Exensio when John the with ship, we that out, and well, pieces obviously, business. we the the booking up of And right, which kind talked or that's question, XX% each colors, of as them focus contribute how if of or is the the about for yes, greater important plus deals, precisely of have Exensio, do an be track pleased the they leading well give the to and as booking booking these piece. the But within that the asked components about within with when customer we're But john Then and book the we're also leading-edge we did CCG to to In booking course. but growth might pretty is ARR, same larger we're terms of much piece, like right, pretty Exensio quality X The the the I we starting than business that yes, that mean, what's businesses. that much feel will it booking XX% as ship at how pointed growth, total on others there the able the in talked John booking comment as weren't our perpetual as then we mean a already mostly thing came more well. made the saw we quarter-over-quarter CCG sign we business, future. year-over-year you color, deals

business starting very is backlog another indicator. positive even to for the levels strong reach that So

all all, tool So good. pretty in

focusing course, Of continue to growth the on that we analytics. from components X making of sure deliver all

Blair Abernethy

just Okay. to this quarter. your solid mean, And were margins shifting margins, gross -- I Great.

the are of looking As you're this or going you have deciding you as for at versus look at so of spend of taking what's sort limited these that are resources, supporting, spend, internal how at on outlook year? capital if R&D hiring And Adnan, you allocation, how you partnerships some rest R&D, will, your you of you're to your you this where sort you're year? look

Adnan Raza

Yes. Good question.

side. I on reason was count asking look, mean, So well, head of was R&D particularly the who I us increases the part as about it think spend as

side. in also total the and -- OpEx So

some did. really it's it, we at look of you hiring the head If count

actually we able even we we add were were were So that higher count head to thinking. what than surprised

kind some what we're the than able faster in done of pretty environment, of So get hiring this we we've thought, about. happy were to which

part the of that's R&D increase. what So drove

business strong, piece bonuses is commissions. going is with there's doing when to the sales, the sales be and obviously, Second

And earlier of second bonuses. piece start that alluded this in So is the I the time of terms was to the [indiscernible] of the third piece to year there. what

it be to that's partner new in So is a or of a of what X contribute deal-by-deal basis a resources have. to we for them at coming it on cases, we in business terms of deal. going we look to through In allocation us other we capital business it's do the think new either see revenue those that look, ways, to like for deals both going

And use contract sometimes need we'll get number We the with elastic our contractors. expand our needs of today, and business. a obviously we that meaningful

where will we we margins on is making continue the The are. to that goal manage to improve sure from that. be So and we going incrementally deliver

Operator

I'm now PDF no turn this CEO closing questions John Solutions, at I the further of comments. Kibarian for showing call would to right. to back like Mr. All time.

John Kibarian

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

Operator

this participating. first conference PDF you quarter for and gentlemen, Thank Solutions call. conclude Ladies does

disconnect. You may now

PDF Solutions (PDFS) 13 May 222022 Q1 Earnings call transcript