Earnings call transcript Q4 2022

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Operator

Good day, everyone, and welcome to the PDF Solutions, Inc. Conference Call to Discuss its Financial Results for the Fourth Quarter and Year-End 2022 Conference Call ending Saturday, December 31, 2022. At this time, all participants are in listen-only. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded.

yet has copy website been not press the at have it release, posted you received of a corresponding www.pdf.com. If to PDF's

the its are the of and PDF's materially. performance, of statements and will actual results made Some demand results rates for differ that future financial this PDF's including forward-looking, in conference growth statements solutions. regarding be course could

assumes for the XX report SEC obligation refer update and to disclosures section fiscal XX-K through on information conference this no of should Factors similar Pages stated are entitled risks December You on filings. to ended based available annual XX PDF's Form and PDF statements XX, upon them. the year PDF Risk to in call The XXXX, forward-looking subsequent in today.

introduce Now Officer. Chief PDF's Kibarian, I'd Adnan and go PDF's Financial and Officer; Chief ahead. to John like Executive Raza, Mr. please Kibarian, President

John Kibarian

today's joining call. us you Thank on for

earnings If report our you've Investors and fourth each to our go year, section not the has and the of management website for already the posted. please where full seen press been release quarter

our on As acquisition. business growing in detail, discuss in where another tremendous Cimetrix from associated was year achieved XXXX, total top the That of will benefited revenue XX% a XX% our which year XXXX year-over-year. for growth, in growth with Adnan record more analytics growth inorganic

and beyond. XXXX. provide strong laid and continued I'll we in the Today, growth, the XXXX summary for Beyond fourth for foundation a quarter the success

and Our for with remarks perspective conclude about then growth XXXX XXXX. on market our in the

developing, processes. critical customers increasingly was new recognized products to and overall our XXXX, During PDF controlling specifically, their in success and QX as ramping in by

the to to million with most fabless companies to and supply advanced They've under computing the IC also IDMs foundries end booked representing microcontrollers XX span analog to chain RF bookings. total over than memory just During These equipment from into markets to chips. in companies from more makers business $X XX% of companies. PDF, to year, been

circuits, serve such virtually customers integrated computing. industrial, that automotive, consume as Our consumer all and major markets

to committing the ERP, partners jointly analytics was in that XXXX relevance PDF mutual provide and an we as customers cloud Beyond activity our appreciate can all-time PDF, the leading of high opportunities partner strategic equipment, and at customers.

successful real-time test. Edge XXXX, the applications SAP control. announced our parametric on AI/ML In ACS analytics, announced available products available and our summer, numerous the Building leverage store. dynamic we In Advantest Exensio's that first on we application on

evaluations well has up collaboration pace throughout picked and been Our received XXXX.

K&S, to – or In effort, not manufacturing with we each the it’s semantic but aligned could Exensio and model. increased partner's marketing to This capabilities We collaborations Siemens, customers allows IBM case, see are AWS, not benefits SAP, revenues. so our we whether the just Advantest, R&D XXXX it's before. fully in will integrate that joint in to these have for and our beyond, their of contributions anticipate data possible

find result, strong XXXX and product a was R&D continued in a year and investments. development, of as faster. the to [Audio Gap] ramped result our defects persistent

AI/ML to leverages engineers data the released manufacturing of analytics part direct to the success. important which module is for focus also guide to We their Exensio, our on that

achieve terabytes haystack throughput. to and of they with and the customers production liability in data the leverage the in petabytes and to yield needles need to the our data hundreds of storing highest highest find ML With sure moving of Exensio, control they to make

new and be the traceability, and for data there standards secure our detect with as will tool to guide supporting tool cloud. Cimetrix communication and collection die data will and to more offerings, the benefit increasingly We our Speed transfer control data offering, customers made collection big and leading our efficient of single and analytics, in come. to solution ML advances from such for

$XX customer PDF growth to of is analytics reported over and double result $XXX million. that revenue in the XXXX. to year-over-year This year we we partner a margin over – in exited XXXX impressive product our grew over the and came per which operating As margins. million that strong rapid obviously XX% came $XXX in development, improvements is in commitments backlog. XX% committed, year more With in than We million the with gross analytics,

services usage very track add I shipments licenses would strong Cimetrix’s represents also that for runtime of believe future positive impact by Exensio our market. levels. expectation bolstered in overage QX their contractors which success the the factoring these and and in gain we the I want partners, When solutions reasonable demonstrate on position, our our thank of financial that products the is products having expectations in we Cloud and shadow share, a of charges beyond backlog, committed employees for our and the are customers, to for of further company. to commitment company XXXX customers’ businesses. PDF’s

in that in increasing is semiconductor new headwinds, capabilities in is find XXXX. Moreover, Geopolitical than it started slowing cases, and customers those government are investments increasing environment the the was our factors around invest development. we for restoring chain to process are when product supply we are we continuing in customers expansions, support Today, and world. capacity. shift the significant from capacity XXXX, different Offsetting As oversupply. very some begin suffering

in Underpinning has government magazine Act, $XXX CHIPS billion recently, the activity Things. usual R&D we growth around committed silicon increased support conventional and of factors believe Internet phones, an this beyond development Economist been support in U.S. that the computing are including article the in two As markets and such as over are pointed government out capacity, increased use of for and world.

battery sources transistors years. that the products as believe need of advanced process high-voltage will and provide. benefit Production control, the semiconductor from carbon-based we XX such will the these shift electrification analytics like EV as and manufacturing silicon increasingly economy of technologies carbide, processing energy from we such over for next First, to what

customers PDF’s of computing. the amounts high to volumes these again, and increasing exponentially will be build comes systems Second, ever-increasingly at complex our the cost increased And use critical. of enable to AI/ML of capabilities

trends As opportunities our the that track our connectivity equipment the licenses the equipment both these customers’ our gainshare oversupply Hence, respect to run-time sales, that expect do shipments, negatively by revenues for outlook XXXX, for with Cloud and and volume overage caution, we our factors provide. know charges we processed. longer-term caution business our wafer to look With our some depend we with our in customers of foundry impacted chips corrections. Exensio with attracts could be on the of that associated

will continued our which collaboration in particularly development This in process than will XXXX we to respect contribute benefit with anticipate platform, increased With more demand super we and increasingly product believe from XXXX past. partners, to and production our capacity. demand analytics opportunities, for the in significantly reassuring

the over As to XX% backdrop a growth grow we in XXXX. expect and on XXXX, against in result, balance revenue of even

I detailed Now more comments results. will will the provide our turn call to Adnan on Adnan? over who

Adnan Raza

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

to Relations results We posted quarter our for full the the Investor are management our the and in of fourth and year of the earnings website. a report section financial pleased review release XXXX. We

our in final with the is auditors. in we reconciliation website. today’s SEC be and a results call XX-K by on March Form be the review discuss results after early a Our to financial all GAAP provided filed materials non-GAAP will in financials the on Please our with note that basis will

comments, million in indicated Solutions. XXXX John record PDF revenues XXXX, of increase. of a performance We As year-over-year $XXX.X $XXX.X million was for year XX% in his generated solid versus a

is itself, growth noting year-over-year it remarkable worth revenue XX% of highlights. few is in While a

in acquisition First, the the growth revenue and in for XX% entirely organic. was XXXX Cimetrix growth XXXX we After delivered completed XXXX.

business Analytics in grew at the rate. a XX% Second, XXXX year-over-year

and Exensio, Third, momentum families customer edge. positive analytics we product leading all saw our in of Cimetrix

strong faster year than were the million revenue at for our $XXX rate. grew bookings over Our growth and

end While the and the of more bookings, pleased we healthy at are with billion. strong year, with pleased backlog the we even $X.XX are exceeding strength of the

backlog PDF value $XXX solid platform, are of collection, predictability grew longevity gives Our The the foundation connectivity a strong data and testament year-over-year and business. powerful to million and analytics. customers XX% bookings see a including the for backlog in the of and us

rates For the a basis. we to approaching revenues percent year XXXX, grow at total mid-teens year-over-year full on expect

remain better rate for term, to growth target the business. we longer to or committed the Over our XX% analytics continued

up quarter total our was fourth XXXX, the of revenue QX million, versus XXXX. of XX% $XX.X For

prior Our analytics quarter revenue this of quarter year. same also grew versus XX% the

saw driven strength in comparable the with our also IYR an by share. XX% We primarily gain growth versus year, business of in prior increase quarter

the for margin $X.XX reported share and EPS fourth per was Our quarter. gross XX% we of

year back XXXX comments. the now full to results, detailed provide will Turning I

XX% full versus increased the XXX.X year to revenue XXXX. For million analytics

Our semiconductor strong. supply progress leading global provider software for the become continues be to chain analytics to the

of our overall now is component Analytics of business total XX% revenues. the at dominant

years benefit from to signed extensive are cloud product we few uplifts revenues starting originally a deals now Our renewal of ago.

fab new utilizations installations site by multiple our Software and customers. module for sales

again Our analysis manufacturing its value customers collection fast the generation proposition leading products. and related advanced with powerful provide data edge node to their advanced where next unique data unique once yields of we solution has for improve established for

in of and products, giving Cimetrix further software emboldened products equipment equipment equipment PDF our go backlog by more for For design to platforms we new products confidence are new our market certifying Cimetrix number as us multiple the connectivity these successful. as become shadow win the

year revenue prior than point the year This was our the worth noting, the more full second year XXXX. revenue a in row. another data analytics is As for company XXXX total for

have We achieved milestone. this

of contract IYR For similar of XXXX, and did XX% a year. our comprised share revenue the year total from not though was long revenues we have revenue IYR $XX.X legacy tenured gain benefit last customer. to essentially a this million at Even

we to share pleased also customers year, continue watch grew are this We which some carefully. from that gain new will

of because revenue XXXX XXXX for faster able than In gross to points. carefully to now XX%, target set XX% long-term from margin increased basis our and particular, focus good not we approximately XX% an margin XXXX, and the grow as have grow the which to our achieved had the our XXX feels the margin or target. for up resources. expansion we we were managed spend We in cloud It managed gross costs to efforts growth. year of of people full our Gross

Turning the operating expenses. to

We expenses the also growth margins stay below to year. control SG&A our growth, R&D operating the for and our revenue of thereby expanding our

we G&A in build were economies ensure and Our business. growing headcount category workforce we benefiting our SG&A and All and distributed the support R&D marketing to invest while scale. highly in infrastructure a of main talented and as to sales, geographically related from expenses

XX% Our a less than at both came levels. comparable SG&A of XX% respectively, revenue year's as percentage and R&D in expenses and last

$X.XX For we share year the a $X.XX reported growth compared XXXX. for EPS per reported to share demonstrating year the the a we of XXXX, meaningful

$X.X primarily for as XXXX our collection CapEx year for full edge in invested the year systems we totaled data $X.X million business. leading million versus in

flow of $X.X million million XXXX. cash positive For the generated $XX.X compared year prior year XXXX, we for the to

with generation are cash of year our operating another We history. pleased positive flow consistent with

at which shares we bought cash XXXX over weighted flat During just of price which average of per to flow XX.X compared was of believe diluted PDF the us we an to our XXXX. year, stock effective an returning allowed and back also way stockholders $XX average keep for share, million essentially

Turning and prior to with we equivalent a And million million of of $XXX.X no carry sheet. end at cash XXXX balance debt. the We $XXX.X ended year year . to the compared

generation. was of essentially cash million X.X and due flow even operating flat to after buyback XX.X strong cash stock of Our year-over-year, CapEx million

in over We with with XXXX, of with committed to fundamentals are healthy sheet. of pleased proud and our the are are of all long-term remain coupled a balance business billion position fortunate our $X.XX backlog the we performance

look another percent. mid-teens approaching growth to on delivered growth with prior the of top growth strong year-over-year For year forward year XXXX, rates we in

to Operator? turn commence With the call Q&A that, the session. I'll operator over the to

Operator

[Operator Raza. the from Blair Mr. Instructions] line Securities. question from you, Thank comes Rosenblatt of first Our Abernethy

Blair Abernethy

gentlemen. afternoon, Good Hi.

John Kibarian

Good afternoon.

Blair Abernethy

great Great the Hi. quarter, to a year. finish way

the to a little about about bit some want Just more you – ask partners.

SAP in the you're of remarks, maybe on in the years? just the the prepared last expand major You or with on you opportunities upon you've been progressing how working sort quarter two of some touched but partner

John Kibarian

Blair. Thanks, Sure.

So through them run kind I all. of

I released, three Advantest, I my apps we've Let's in said five say four store. prepared in or think the app of them. remarks,

the to number Exensio months over of feed forward expect couple a next feedback taking and and advantage We more ML of release capabilities.

and use can control data points So system our particularly to the make they're the match package to for choices customers, with doing make important very the better and and different insertions package. right customers chiplets test they want test chiplet they previous from sure right screening right at

less out coming more see You'll year and adoption this that about those out announcements more coming capability. customer or

diagnostics the then end Secondly, fault localize tests to are when do chip Siemens, test software the might is to the complete really to – be. used fault generate vectors the where Siemens and at in

metal or that chip. layer, metal do the these maybe tested on XX diagnostics. days at final fault You XX get that metal It's the you after

of Test to You data diagnostics factory about other at points would information that Exensio data, chip. like fault piece data, of inline that. test that all other look and every from insertion It's Parametric stores

Exensio, integrating job layout can customers do our by software systematic So better for diagnostics and on a models, faults. fault localizing job a better

working The will access an advantage also program. from take early with companies. capability on of to next couple in early are now that We over that on customers both come capabilities more extensions out the years of the that

very you nice they've one also talked on is then talked SAP third The think put it prepared paper they and – about I my about and remarks, it. if white way that the a in just out I

top it awful the company shop floor we PDF, store they data engineering shop factories of from lot floor the that the factory being fabulous to or a for You they attach really and as to where that's inside an call a floor where want operate.

with systems the communicate know of where manufacturing execution our so is line. the material in We systems, most major

for, much know parts how cost, know much going up in where sell parts so the end end they know consumables they and And market. they how

to on yield data and the monthly due answer competitor So insights data field in on that's variances you're in by costing better by accurate product HANA in [ph] combining in – return that's the questions with costing product, able changes in Exensio prediction supply. customers S/X to for to able deviations analysis, be the –

progress So those applications we're these how able out of with have rolling building engineering see financial category applications of XXXX. data we'll do use and data to environment. And agile more to SAP with significant really the are all you three third that expect be make we're a manufacturing to in that's

Blair Abernethy

there, product. Is is period to on up and what customer I And approaching period or on of do taking trial that a there sort is John. ramp they're base how SAP, they're great assume just go-to-market the install solution? That's the their this it an the add-on as think you kicking it a here

John Kibarian

is we're worked this and the way in with it's discussions it's now, capability joint on right So a customers sale.

why program as accounts capability deeper our Our reach – capability. did we the and whole than our they this sales course really partners capacity small they our So sell we broader sell of is part right? and their obviously partnership their reach But and is of far relative the into ours, to reason portfolio. far, product

their find today. even that but need the we well, know the help the they we right customers to customers, don't of access the that part a we organization sometimes of have to organization, know So relevant part

case SAP They backup really right and support. for It's in. going So But early we're the a of in their the opportunities. they these we the bring where they financially of and selling And bit right that. contracting are of are customer the little from jointly. in are capability course we now stages, us case lead. in now the we door benefit with in different front They they Advantest are are secondary each

Blair Abernethy

I'll the Okay, jump queue. great. in Thanks. back

Operator

you. question. Thank moment for One our next

Our from Diffely line from Davidson. next comes the Thomas question D.A. of

Thomas Diffely

good you Yes, taking afternoon. questions. Thank my for

that higher, analytics? for year that be come this new baseline so, And year growth year. in for meaning the a said year So first of the the million there's average It caused of what sound to there businesses, that from you look expectations were jump or on IYR quarter when X.X teens, I'm this wanted kind you were some or the will a outlook. little low at this the like to last about revenue is curious, most our one-offs

John Kibarian

catch number be Tom, $X.X a believe prepared on pressure benefited a be seem impact in gain will be China for the felt COVID are amount the the half COVID from second the some be And said million half we that may to share We great in did that's also there sustain bit catch factories lower this volumes that than were little restrictions. customer gain I whether Yes, our my our some that up because foundry at of of the customers. XXXX we'll XXXX. on may that of in year, point we remarks, and in ups to in fair they share. due are baseline half XXXX, XXXX in was second around that at questioning that watching first as of utilizations increased of in capacity not may we settle capacity the possible

maybe bit thinking may than year little number, So, market was little mindful water last IYR the bit, this it a we're be a high being year year. little last it's on lower a

terms so We than don't think think said growth, overall of we lower on mid-teens, the said, of do I it's higher we in better approaching as end it's teens. believe Adnan mid-teens.

this software the on year. the to that kind than of year we communication higher [indiscernible] I XX% licenses because my of reporting rate in This ship runtime as a over a Again, there. ship to customers prepared more We as they decrease the little last equipment, equipment perspective standards said capital the not So expect better be little than year use do we're are remarks, do that that trying unit on in just directionally expect newer a our the but companies is some with because attach older get about equipment we'll equipment. down.

of silicon. more be. overages cautious And But they're think volumes will our data go customers may in and offset over Exensio and on We for additional of as pay of in storage little of customers what strong lower. those into will bit very churning on down our volumes bit data core well. storage on similarly, quite And we're consumption bit then little a a the will and think on continue kind bit that little which some XXXX Exensio charges some being we XXXX through we believe shipments they as little volumes put still a analytics, is growth be a in it’s when

Thomas Diffely

But ago, was customer just high. then Okay. of if to be flush, fourth had run pretty more packed you occasional the seasonality you not budget several bit today, I where business that it used there – a had fourth the but quarters of of IYR that. like years much you because it know chip a flush? sure sometimes I'm little view the of first were the a little And your muted opposed had a a it's sounds is production bit off different of rate to quarter as quarter base budget in

John Kibarian

Yes. correct, That's Tom.

Thomas Diffely

then there in budget the of any or a in onetime was jump leads a And me Okay. side. a flush to as Obviously, issue analytics, that that analytics sequential nice kind well?

Adnan Raza

the I of expecting QX, about And the well point of part comments part prior your I think connect seasonality. just some think as also it to on Gainshare, it. to

just If of I If part had of you also were bit some QX dip but to back see little you'll look itself discussion that of go a catch-up. or QX QX, point. a that from and because was at into

No, I the we QX, garner to able in QX. the large seeing during you're that think effects some talked bookings about of were we

XXX long-term related analytics growth generally and our that the So also experience some of it remain early of nothing targets confident XX%. difficult for impacts the to quarter business about we is but is during

Thomas Diffely

do question they of the one the during you saying to there what IYR Or got from is a last end is you anything a your quarter the this business. the and track payment on this Okay. quarter And really produced? that? can at just customer maybe report Is

John Kibarian

can not go gives run wafers structure closely quite for frequently. through of volumes have some they of the of customers some we trends, course, We as Yes. scribe they the of engineers unit it because And there It's dialogues indication. can is so a us our our measure of we daily we they representative run, they're a run. the wafers with at do through. look representative some lot have so quite customers all in that our of cost that track those It

Tom, you, But to always don't sometimes be the with feel our themselves. like have best customers visibility we clear

more be month a they'll falling. about then and So sky you is and bullish talked later the

perspective So days. we the across these base customer a broad have pretty

at Exensio look and storage what at we So can things down there. loading up we look cloud data, like looks because

end is the what cetera. So customer et doing,

little on judgment things, So capital we these folks. equipment with play our similarly the own

at customers balanced smaller and to some signals quite think overall, bit they but I less equipment were watch it a try than were. of take We the November, a December, look do we them, quite bullish we were quarter. of quite with we looking throughout – at our data met when capital robust that were

Thomas Diffely

just Last working you. to and Thank on update quick DFI I the question you're accelerated hope Okay. get then, a maybe ramp on?

John Kibarian

put I in And a my it's Yes, did prepared great question. something remarks.

the past it's and we scan Siemens. what to I customer a application, year, this for released related with very direct and the up think really with brought application – doing we're

should a taking You're and inspectable same is of the elements and that that of critical digests what at identifying see. layer each all software product you what

our starting So just problems, we can other features billions so give the defects budget the billions quarter. at customers pilots we use us. features on with of XXXX doing quarter many – in get fraction when a customers unique wafer, them wafers, per QX typical really in the the of us that the fourth We saw started in uptake find and of meaningfully. a installed point hour per that and sending two-hour got you of you this other saw quite We tremendous meaningful it wafer hour, the scanning customers systematic beyond, first by

to think of kind anticipating remarks alluded I were we in and that that. my in I prepared November,

year, to the activity the customer our perspective our business we've year. bookings year. impact a on go this about business, of incremental impact cautious throughout And as the this we very been it's this results we expect going as positive feel see pickup well. to been We've bookings, that revenue seeing from we but And do

Thomas Diffely

that. quick on follow-up Okay. Maybe just a

your When many points have insertion are XXX system many them. how evaluate? different steps to your are look steps you at in days how are these between going producing you – they tools, to chips Some

John Kibarian

great a question. That's

with when cells, So we first right, filler X. system the use at this, to came the were – only really Metal we with only up

the you use direct early this Now scan earlier contact as with layer. can approach it as

of So the layers through And the And to out added just you middle software software below the tell which MetalX them where layers of results of a which MetalX yield issue. making by saw all the customer the is caused metal line because defects in what patterns the once ones are able on the started are. the back failures. or caused contacts I patterns at in the it from the figures that the MetalX really of and are below via based by scan

it's layer quite a way context. process after look the you've really post sophisticated first any And can result, information. the you So it built the as in at of

really So can approach. use you you or you and polysilicon on typically can't start gate. with that, above, after isolation three every and the this Those use the But and fins layers, it. layer the gate

Thomas Diffely

Great, Well, I I’ll all queue. in right. the appreciate time today. back And jump your

John Kibarian

Thank you.

Operator

from comes you. Gus line from Instructions] Our Capital Markets. next of Thank [Operator the Richard question Northland

Gus Richard

Yes. might of from in what big little was talk just $XXX about those or And wondering ahead Thanks you what great if government Is buckets the the is because was programs you for question. I likely in spend guys. – that touched wondering, with the by you regions? have billion bit benefiting quarter end? could stage of Europe other a three that Japan that a way, And countries, support I it's in? near money. it the U.S. away ways – but engaged on regions of taking And India, are and are

John Kibarian

Justin. Yes, I good think a question, that's

right. You're

see PDF leading-edge is activity. other well for do our known pretty picked our You business in where geographies significant we capability.

So we've of doing a when get generally we of do some off contacted and been this, contacted number someone's new by going speaking, and entities.

max, really like can't a suspect when, which at I in it's XXXX and ones world. maybe course, bookings XXXX and more bit little it of but the . a impacts say business that We the perspective. around Of XXXX

you But some high-voltage like the and we mentioned for do very leading where on see ones partnerships in like XX-nanometer together Korea. transistors, kind are folks and of just visibility automotive Taiwan joint number applications a United not ones Japan, of the those applications going high and of ventures other and the coming you leading mentioned States, edge, and

capabilities. of broad very it's So in the terms

we and what the like and gate doing call XX-nanometer that mix that around, of machines by capability need Maybe customers of capability leading that contacted you do majority doing high-voltage edge. transistors the different our our we X-nanometer vehicles software, are a because the same on that our capability typically. customers because need edge all and leading get And it's we and things find customers but you need same

Gus Richard

for to black was for chips. opportunity been it. Clearly, streaming you of again, That's end on? been try Got market you? it. chips Got track software an And market I’ve to market. doing in apologize. to of AI. that black the is that reached there, it something industry, all tracks then I And wall, you’ve there I has And that wondering, the that the of and shouldn't that making there's efforts some the up. you places always heard little to that helpful other. And been rein And from semiconductor Or a weapons is some some out going this the anybody is a concern one bit off they're the

John Kibarian

had entities We’ve conversations around that. with Yes. government

We in die for really is our put which document. standards. standard Cimetrix We support innovated Exensio also but that available. and – that active the EXXX team on in very area standard semi the organization capability our and single it’s and acquired standard We a put the the traceability, Kinesis really as it are software in freely company we

way like We’ve tool. we’ve partners test that for it technology standards that that wafer with a have to information making chip around to in about goes point blockchain ledger also extended as propose technologies using too, a area, or that looked in written hyper logs processing the and semi Exensio sure whenever

the information also whenever way. the chip the root RMA bring that valuable, have immutable from buyer not comes of was the put chips. an there’s the in tension and you issue chip up, of and you that recall You counterfeit chip an but back cause in chip did between about for always the and you just field, enough the the the a because about the that’s very ledger seller what situation, of

build some And for failures, And were information of with and of a turns also as in critical them out no valuable this We XX% suppliers important. mixed-signal to kind some that back clearly it is were firsthand, having in testers parties trying is analog we situation. an chips, environment, for we Exensio non-safe went very customers so the XXXX. experiences data our trust we user. of all fast In this purchased chips, had

bad chain. We good we know in area bought and sat it your board I were typically stuff. about said, hey, there bad supply the team bunch that manufacturer assembly labeled there’s and that that. risks chips And get are we system where back it And our out. in know is the So and was and yes, leaks leadership with we said, just a have of

by from modest intrigued so important it are that bodies people an move customer interest but as us because think far. today, we is for quickly how very I are that it engineers share do standards us. the to about industry. make opportunity The hard need by an see And economically the passionate is, adoption get this It’s So it. those you area for we

Gus Richard

it. Okay. Got Thanks so much. got it,

for covers that think I it me.

Operator

our for moment One next you. question. Thank

Abernethy from comes Securities. question the line from next Rosenblatt of Our Blair

Blair Abernethy

Hi, guys. again,

you’ve And five to about Just I with show don’t And sort view progressing website. traction on up-to-date you are if been us looking tape-outs to DFI. are you’ve you’re two DFI opportunity have just market year volumes things. the here currently more also little more I the DFI then your the has about it’s that year, the – in any sort passed the you past, a know at of over on of market got for per wanted ask given another getting size, system? next and years? market. the stats the how in How how

John Kibarian

that. answer I’ll Thanks. Yes.

or structures innovated point. few installed because machine in good And to back needed and for tape in the ago, the really whole early customer then our to When if test at the you all, where metal a The in or we the put a even product went all of work. features we So it’s the you years XXXX what and our ability team with of the order point a that first we like look for look at it end at outs metal X inside structures the point. design are at to Blair, that tried figures XXXX, it’s scan didn’t have ability. looks the call software the design X And direct X at of process, and that’s structure whatever it. metal a out whether that or what

recipes of didn’t a So strong. quite insertion usage the it up cell up think take we’re up week. been and that actually Number filler need because recipes tracking at we anymore early handful for off. We’ve customers. and stopped up, we setting every been – of And the recipes application set to I picked set checking that’s

can probably last, eight in say, say early set recipes you or so let’s months, up just XX of six adoption. So the off or

to the ability at if it, even product to of bullish the went terms it for this, is XXXX. particularly any look X filler be as in we we pass you greatly the potential use as opposed or opened could layers to for his you layer more XX layer, the it In for or XX And Tom the Number it’s that inspection, being machine. bullish reason of it twofold, that market and literally, XX instead opportunity. means one this the our alluded would have up really have doesn’t through to about metal – ability to at cells feel in any very market question, just opportunity able look first as

much of number it’s points So insertion larger. is

things up gate Secondly, XD voltage there are need increasing and seems all around met customers and understanding as with bring inspection use an structures. as like trying to that growing customers, we’ve you to contrast be to complex other electrical

we’ve the only done approach And in really for and way for these way voltage QX, customer QX, it. problems is can pilot with the other early where around so we XD is lot work specifically contrast sending that did a the in you of existing see that us it

it throughput is a can’t yield haven’t the in an the EV people so change be done good. reason in a gets you the poor, relatively see the is And why machine past typically yield deviation on once to

customers you square say attractors a machine with that e-beam inspection on you’d still centimeter conventional X going have not to a you’re X-hour feedback. given yield see once So an chip us and yielding is can XX%, anything E-Pro, a see yet on

e-beam inspection So I really point the of inflection that’s an tool. for think kind as

come on I XXXX will as see through we more think we points that. proof

Blair Abernethy

$XXX for That’s XX i.e., on next duration backlog? backlog, what And John. million, a to the the amount overall the and just color, in expect of of you great. that you current backlog, do months recognize the have the Thanks then

Adnan Raza

question. And we’re now, many. data great disclosing it’s and a point yourself Yes, know interest I to not of it. Right

majority give But going is the two we color like number put we do percentage to year’s on as in the can going to continues operating I going and have that we our next higher. demonstrated year, still be within this that revenue that just the the we it same is to of year do you last normally that as this into finished of the years. our We’re year, next every the annual plans, get the perspective what and filings confidence time contributed forecast from be that to cost

trend that was a year. that this saw And we

And spoken revenue last we a as year is that for the have. the larger the backlog strength year of coming in a into of portion function than so the following

be certainly assure about get of the time for can I operating comforting we as inside, metrics, ready sharing very annual is we’re the this. do the we and to you, one we’ll when find right future it I plan. tracking this thinking think share as we is whenever

Blair Abernethy

Thanks much guys. Great. Great. very Understood.

Operator

are Thank today’s joining At for Ladies questions. this Instructions] call. concludes there you gentlemen, this no program. us on the and more [Operator time,

PDF Solutions (PDFS) 16 Feb 232022 Q4 Earnings call transcript