EX-99.1 2 f00455exv99w1.txt EXHIBIT 99.1 Exhibit 99.1 NEWS RELEASE Investor Relations Contact: Corporate Communications Contact: Sonia Segovia, IR Coordinator Abbie Kendall, Principal PDF Solutions, Inc. Armstrong Kendall, Inc. Tel: (408) 938-6491 Tel: (503) 672-4681 Email: sonia.segovia@pdf.com Email: abbie@akipr.com PDF SOLUTIONS(R) REPORTS RECORD SECOND QUARTER REVENUE Results Represent 6th Sequential Quarter of Revenue Growth SAN JOSE, Calif. -- July 22, 2004 -- PDF Solutions, Inc. (Nasdaq: PDFS) the leading provider of process-design integration technologies to enhance IC manufacturability, today announced financial results for its second fiscal quarter ended June 30, 2004. Revenue for the second fiscal quarter of 2004 totaled a record $15.2 million, an increase of 50%, compared with revenue of $10.1 million for the second fiscal quarter of 2003. On a GAAP basis, net loss for the second fiscal quarter of 2004 totaled approximately $460,000, or $0.02 per diluted share, compared with a net loss of approximately $676,000, or $0.03 per diluted share, for the second fiscal quarter of 2003. In addition to using GAAP results in evaluating PDF's business, management also believes it useful to measure results using a non-GAAP measure of net income or loss, which excludes amortization of stock-based compensation and acquired intangible assets. Using this non-GAAP measure, net income for the second fiscal quarter of 2004 totaled $1.0 million, or $0.04 per diluted share, compared with a non-GAAP net loss of approximately $265,000, or $0.01 per diluted share, for the second fiscal quarter of 2003. As previously announced, the company will hold a live conference call beginning at 3:00 p.m. PDT/6:00 p.m. EDT today to discuss the quarterly results. A live webcast of this conference call will be available on the company's website at http://ir.pdf.com/medialist.cfm. A replay of the call will be available at the same website address beginning approximately two hours after completion of the live call. Further, a copy of this press release, including the disclosure and reconciliation of certain non-GAAP financial measures to the most directly comparable GAAP measure, which non-GAAP measures may be used periodically by the company's management when discussing financial results with investors and analysts, will be available on the company's website at http://www.pdf.com/news_archive.phtml following the date of this release. ABOUT PDF SOLUTIONS PDF Solutions, Inc. (Nasdaq: PDFS) is the leading provider of process-design integration technologies for manufacturing integrated circuits (ICs). PDF's software, methodologies and services enable semiconductor companies to create IC designs that can be more easily manufactured using manufacturing processes that are more capable. By simulating deep sub-micron product and process interactions, the PDF solution offers clients reduced time to market, increased IC yield and performance, and enhanced product reliability and profitability. Headquartered in San Jose, Calif., PDF Solutions operates worldwide with additional offices in Europe and Japan. For more information, visit www.pdf.com. PDF Solutions(R) is a registered trademark of PDF Solutions, Inc. PDF SOLUTIONS, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) (IN THOUSANDS)
JUNE 30, DECEMBER 31, 2004 2003 ---------- ------------- ASSETS Current assets: Cash and cash equivalents................................................... $ 42,472 $ 39,110 Accounts receivable, net of allowances...................................... 11,736 11,869 Prepaid expenses and other current assets................................... 2,346 2,614 Deferred tax assets......................................................... 1,549 1,808 ---------- ------------- Total current assets.................................................... 58,103 55,401 Property and equipment, net.................................................... 3,550 4,110 Goodwill....................................................................... 40,590 40,548 Intangible assets, net......................................................... 18,910 22,906 Other assets................................................................... 1,020 1,002 ---------- ------------- Total assets............................................................ $ 122,173 $ 123,967 ========== ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable............................................................ $ 1,726 $ 835 Accrued compensation and related benefits................................... 1,900 1,952 Other accrued liabilities................................................... 1,531 1,485 Other acquisition obligations............................................... 1,049 1,880 Taxes payable............................................................... 3,817 2,871 Deferred revenue............................................................ 3,649 3,300 Billings in excess of recognized revenue.................................... 1,320 465 ---------- ------------- Total current liabilities............................................... 14,992 12,788 Long term liabilities.......................................................... 307 287 Deferred tax liabilities....................................................... 2,011 4,340 ---------- ------------- Total liabilities....................................................... 17,310 17,415 ---------- ------------- Stockholders' equity: Common stock.............................................................. 4 4 Additional paid-in-capital................................................ 131,185 129,568 Treasury stock............................................................ (2,942) -- Deferred stock-based compensation......................................... (298) (688) Notes receivable from stockholders........................................ (1,469) (3,025) Accumulated deficit....................................................... (21,665) (19,361) Accumulated other comprehensive income.................................... 48 54 ---------- ------------- Total stockholders' equity ............................................. 104,863 106,552 ---------- ------------- Total liabilities and stockholders' equity.............................. $ 122,173 $ 123,967 ========== =============
PDF SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED SIX MONTHS ENDED --------------------------- ------------------------- JUNE 30, JUNE 30, JUNE 30, JUNE 30, 2004 2003 2004 2003 ---- ---- ---- ---- Revenue: Design-to-silicon-yield solutions................... $ 13,513 $ 8,034 $ 25,208 $ 16,142 Gain share.......................................... 1,656 2,056 2,637 3,015 ---------- ---------- ---------- ----------- Total revenue..................................... 15,169 10,090 27,845 19,157 ---------- ---------- ---------- ----------- Cost and expenses: Cost of design-to-silicon-yield solutions: Direct costs of design-to-silicon-yield solutions... 5,369 3,514 9,723 6,958 Amortization of acquired core technology............ 1,327 124 2,677 165 Research and development............................ 4,822 4,370 10,040 8,702 Selling, general and administrative................. 3,622 2,953 7,419 5,615 Stock-based compensation amortization*.............. 292 329 547 978 Amortization of other acquired intangible assets.... 410 ---- 820 ---- ---------- ---------- ---------- ----------- Total costs and expenses.......................... 15,842 11,290 31,226 22,418 ---------- ---------- ---------- ----------- Loss from operations................................... (673) (1,200) (3,381) (3,261) Interest and other income, net......................... 138 345 291 720 ---------- ---------- ---------- ----------- Loss before taxes...................................... (535) (855) (3,090) (2,541) Tax benefit............................................ (75) (179) (788) (531) ---------- ---------- ---------- ----------- Net loss............................................... $ (460) $ (676) $ (2,302) $ (2,010) ========== ========== ========== =========== Net loss per share: Basic and diluted .................................. $ (0.02) $ (0.03) $ (0.09) $ (0.09) ========== ========== ========== =========== Weighted average common shares: Basic and diluted................................... 25,337 22,614 25,319 22,551 ========== ========== ========== =========== * Stock-based compensation amortization: Cost of design-to-silicon-yield solutions.......... $ 9 $ 86 $ 37 $ 216 Research and development........................... 274 155 476 563 Selling, general and administrative................ 9 88 34 199 ---------- ---------- ---------- ----------- $ 292 $ 329 $ 547 $ 978 ========== ========== ========== ===========
PDF SOLUTIONS, INC. RECONCILIATION OF REPORTED GAAP NET LOSS TO NON-GAAP NET INCOME (LOSS) (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED ----------------------------- JUNE 30, JUNE 30, 2004 2003 ---------- --------- GAAP net loss........................................ $ (460) $ (676) Stock-based compensation amortization................ 292 329 Amortization of intangibles, net of taxes............ 1,198 82 ---------- --------- Non-GAAP net income (loss)........................... $ 1,030 $ (265) ========== ========= Non-GAAP net income (loss) per share - diluted....... $ 0.04 $ (0.01) ========== ========= Weighted average common shares - diluted............. 26,136 22,614 ========== =========
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