PDFS - Earnings call 3 2023 | PDF Solutions, Inc.

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Operator

Good day, everyone, and welcome to the PDF Solutions, Inc. Conference Call to discuss its Financial Results for the Third Quarter ending Saturday, September 30, 2023. [Operator Instructions] As a reminder, this conference is being recorded.

If you have not yet received a copy of the corresponding press release, it has been posted to PDFs website at www.pdf.com.Some of the statements that will be made in the course of this conference are forward-looking, including statements regarding PDFs future financial results and performance, growth rates and demand for its solutions. PDFs actual results could differ materially.

December the of Risk Form filings. PDFs the year to XX on XX-K refer similar fiscal XX and through annual ended should section subsequent Factors entitled Pages for disclosures You in XXXX, SEC XX, report on forward-looking in conference based risks call today. stated to information available PDF and statements are The this on Officer; assumes Financial PDFs President Kibarian, no introduce to John Chief obligation PDF PDFs Chief to and Executive like Officer. Raza, update them.Now I'd Adnan and Mr. Kibarian, ahead. please go

John Kibarian

call. today's on us joining for you Thank

and our process our was we this Registration our the used earnings.On level in and the to with the October high yield of opportunity a where to given that their and from show challenges: in Analyst by backlog platform of equipment of reintroduce gain QX packaging, Conference achieving model recognized, supply deployment at and semiconductor to XX and ramp of all increased.Our complex meaningfully a included you've eProbe beginning our for for third accelerated Analytics include community.Our in production our the and PDF quarter, customers success customers. management go a our QX most tool quarter activities, progress adoption multiple experienced very of was the in customers and DFI If XD quarters viably summary Conference learning seen our the for of engineers ] and own the report X twice detail, technologies, the licenses to machine the for have very increased for up the quarter.Overall, Conference third has weak, year. through our Bookings presales to bringing a Users a our deployed. increasingly revenue last second section share. financials while strong closed to existing for Asia. and deliver Asia node is already market versus excited making cloud revenue press Revenue revenue release Cimetrix quarter, discusses a contracts quarter X our I each We're perceptions some not in Users as we lead in of the XXX end-to-end earnings improvements with to analytics of customers' Investors infrastructure Exensio our the because declined over applications We expect posted.Before mature volumes provider, use installed held the its Analytics where we of the Connectivity, continued shipments please on customer modest the reduced our are as to evaluation cost-effective from continue larger working and of third and comments manufacturing Adnan and chain. remainder with customer business strong cloud continued this XX, decreased our we we the in Characterization was experience observations the contracts.Significant results chain. strong supply even been of Users companies about of capabilities typically the and particularly continued new Day. from [ new third deploying ship our to in first website to of the end-to-end remained face Bookings level our third the quarter year.The about aspects revenue on similar quarter global and the as executives run-time

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Adnan Raza

earnings on and third posted on Investor report you the section business. to Thank the families with you you, speak and afternoon, release of of our I John. quarter all are Good up well.We and and the date results the everyone. our Good your hope Relations the progress financial review pleased to today, you are to of again management to website. bring We of

in our Form SEC on results in Please of revenues will today's strong provided a the that financials XX-Q reconciliation we with website.Financial has is for came third XXXX and a in bottom non-GAAP with Our EPS. quarter today. be materials the the discuss and filed line strong the note call record been on all also GAAP basis, financial to results of

increasing utilizing various offerings engagement are PDF Solutions. we from We with are pleased our with the customers, product platform-level the seeing

we performance which revenue shift for a also revenue XX% grow for Analytics million, cloud grew last grew compared up demonstrates helped $X Analytics similar million, the year. of than prior XX% during similar greater On Analytics, a basis, of incrementally comparable the total multiple same same this customer. was the quarter deals the accounted engagement quarter revenue quarter. the this at revenue, up of QX total to with a year. of the seeing year.Our we're quarter year-to-date the key of customer for we're revenue quarter Analytics X% our which deployments, $XX.X the this leading-edge, mostly the compared XX% Third closed stream.For period installation our and business continued last the from with ratable prior quarter, during to happy Within with X% second our eProbe towards Exensio and versus year, quarter machine QX revenue

a Lower saw of in quarter weakness taking slight to customer on as prior business, run-time compared driven and are hardware customer second margins, unique transaction. the gross Connectivity QX first the growth the a customer to XX% a we the and year growth in million, extended increasing compared business, evaluation. while for XX% DFI gainshare versus mentioned, IYR margins, rate IYR ship gross this this licenses we preparing given of quarter, to contribution this value and revenue second machine result we're revenues solutions growth IYR, We by earlier. we margin compared and equipment cautious leading-edge for also sales-type the support a this quarter. within year the improvement purchases.Overall, bring of carry deliver to with last QX last weakness saw factors applied revenue a remain customers.For this onetime quarter And in John were our record was of about platform one quarter As quarter machine Analytics calendar lastly, approach the capital a quarter, prior lease an use are a this quarter.On in engagement we revenues, by eProbe to we shared gainshare quarter gross year. reported customer the $X.X the headcount for rate We demonstrates machine taking Cimetrix treatment higher to ASC accounting our another for our few our customer rules able which we XXX as and for leading-edge on-site revenue to believe same the John seeing. their of the of QX, to year, discussed. Despite pleased we during to Analytics as the the strength similar prior year-to-date down periods

percentage growth October, balance the cash, their with XX% quarter to the last for or X Overall, and highlighting a quarters.Our ahead primarily deliver long-term were quarter, making of Analyst platform for PDF our and and X% year-to-date committed with see of develop meet million cash equivalents compared operating to approximately future that is million basis Day target for on headcount, increases margin R&D investments per X% the of primarily year.Turning support increased with similar customers SG&A. our as of activities, is ahead quarter, in the EPS, enhance R&D driven and it share for sheet. increased were months, the quarters this the we expense of presales EPS $X.XX for the year. by prior our to to each similar higher over for to to the $XXX in expenses incrementally at We opportunities ended conjunction quarter, able prior worthwhile $XX progress needs.On announced gross we XX% towards we the target $X.XX prior short-term quarter of than As of grew of collections. to period the remain the a coming EPS and strong our It that

we million the acquisition quarter, Machinery and million, shares million our turning also Analytics.Now, on $X.X During to Lantern for the CapEx of $X.X repurchased spent on outlook. $X.X

has ahead macro John we basis. that been about, has of semiconductor As growth at our QX that to our earnings continue stated and call, growth spoken in not where of market. lower PDF with the October as few we rate Day as full continue be strong our on We last to the press at our the a against believe in backdrop percentage year today, year environment the double grow years, this revenue digits can XXXX expect year-over-year release Analyst during that will

of see our increasing platform sales our in confidence from the stems approach Our we customer engagements strength and pipeline.

for committed QX, strong Additionally, EPS deals of announced sheet signed, to the we rate quarter. remain we balance about with cloud the are all at delivered, leading-edge we total the greater engagements than Day.In excited closing, we the close company and expanded, our strong to the growth we long-term XX% Analyst revenue

Analyst commence partners Day platform to become to turn and platform a Solutions We the last are Operator? support our also Analyst resounding operator at thankful that, customers question-and-answer how our of our session. to to the a call ago.With Day since company for share new the to and has I'll look allow their over few a at PDF the PDF us years

Operator

comes from Our with Instructions] Securities. Rosenblatt first Abernethy [Operator question Blair

Blair Abernethy

Nice quarter.

things. little Just a -- want ask to you of couple bit a

says Cimetrix. in little right, Is looked it a your but XX-Q, little a First, that was year-over-year. lower it it sequentially, I sort of stronger? was

Adnan Raza

the stronger, we're purchase On as prior shipments a the year. when just seen, on calls, both QX cycles the down last even Cimetrix, total seen basis, call year, licenses. the alluded strength to to a throughout starting as Sequentially, see in equipment rest it little the we yes, we and year-over-year the about that we spoke bit given run-time that have of come particularly is well the the revenue our in have in CapEx frankly, as

Blair Abernethy

Okay.

Okay. Great.

out then? that is business So it -- then sounds bottoming like here

John Kibarian

to backlog, that equipment, they not QX a up. like, be cautious anticipate it track customer all little in shipped expect out But bottomed words, shipping will much words, we QX. that In out do XXXX, bit from and know takes in backlog other We over more building still the other has as been the the in the QX. us, don't look equipment so, into Yes. but Blair. improve licenses customers in subsequent QX, We the believe that about remain quarters. slowly run-time We back have that building. it we We

Blair Abernethy

there shifting shapes or or with U.S. any this John, controls over Great. Okay. Is indirect increased you the last shipping to forms direct just And markets, impact guys year end China just in so. the on into various year? and export

John Kibarian

we've of that. been I of far, so kind a Yes. mean, been beneficiary

of into China; see software is shipping equipment are in a As we that China, in licenses it the lot we of that lot Cimetrix, run-time use activity Chinese country. see going a that companies for our

deploy that there. Exensio We've number manufacturers been a and fabless use well, have to customers Exensio. there's of China factories benefits that had as So fair also in tended

see maybe start kind of rate leading-edge our for that's their it trailing-edge, that of China But the happen most so today in China. United far, money, to not positive investment from the business States get same chipset West so the of kind the as impact us our China are for stimulus access a in candid far. much been Europe more folks in beneficial has and to as with reactions. some because in waiting the seen So, we as government we've and in has see that to in starting been been business on -- behavior effect the you.We to on we seen customers, to big haven't China in be little bit did accelerated being of for We a factor as are

Operator

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

PDF Solutions (PDFS) 8 Nov 232023 Q3 Earnings call transcript