EX-99.1 2 f04958exv99w1.htm EXHIBIT 99.1 exv99w1
 

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® Reports Record
Fourth Quarter and Total Year 2004 Revenue

Results Represent 8th Sequential Quarter of Revenue Growth

     SAN JOSE, Calif.—January 27, 2005—PDF Solutions, Inc. (Nasdaq: PDFS) the leading provider of process-design integration technologies to enhance IC manufacturability, today announced financial results for its fourth fiscal quarter and full fiscal year ended December 31, 2004.

     Revenue for the fourth fiscal quarter of 2004 totaled a record $18.1 million, an increase of 50%, compared with revenue of $12.1 million for the fourth fiscal quarter of 2003. On a GAAP basis, net income for the fourth fiscal quarter of 2004 totaled approximately $1.6 million, or $0.06 per diluted share, compared with a net loss of approximately $1.3 million, or $0.05 per diluted share, for the fourth fiscal quarter of 2003.

     Revenue for the full fiscal year ended December 31, 2004 totaled a record $62.3 million, an increase of 47%, compared with revenue of $42.5 million for the full fiscal year ended December 31, 2003. On a GAAP basis, net loss for the full fiscal year of 2004 totaled approximately $614,000, or $0.02 per diluted share, compared with a net loss of approximately $4.5 million, or $0.19 per diluted share, for the full fiscal year of 2003.

     In addition to using GAAP results in evaluating PDF Solutions’ 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 fourth fiscal quarter of 2004 totaled $3.6 million, or

-more-

 

 

$0.13 per diluted share, compared with non-GAAP net loss of approximately $135,000, or $0.01 per diluted share, for the fourth fiscal quarter of 2003.

     As previously announced, PDF will hold a live conference call beginning at 3:00 p.m. Pacific Time/6:00 p.m. Eastern Time today to discuss these quarterly results. A live webcast of this conference call will be available on PDF Solutions’ 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 PDF Solutions’ management when discussing financial results with investors and analysts, will be available on PDF Solutions’ website at http://www.pdf.com/news_archive.phtm1 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 Solutions’ 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® is a registered trademark of PDF Solutions, Inc.

-more-

 

 

PDF SOLUTIONS, INC.
CONSOLIDATED BALANCE SHEETS (AUDITED)
(In thousands)

                 
    December 31,     December 31,  
    2004     2003  
ASSETS                
Current assets:
                
Cash and cash equivalents
   $ 45,660     $ 39,110  
Accounts receivable, net of allowances
     15,978       11,869  
Prepaid expenses and other current assets
     2,685       2,614  
Deferred tax assets
     1,586       1,808  
 
            
Total current assets
     65,909       55,401  
Property and equipment, net
     3,321       4,110  
Goodwill
     39,886       40,548  
Intangible assets, net
     15,791       22,906  
Other assets
     500       1,002  
 
            
Total assets
   $ 125,407     $ 123,967  
 
            
 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
 
Current liabilities:
                
Accounts payable
   $ 1,023     $ 835  
Accrued compensation and related benefits
     3,209       1,952  
Other accrued liabilities
     2,545       1,485  
Other acquisition obligations
     48       1,880  
Taxes payable
     3,286       2,871  
Deferred revenue
     2,905       3,300  
Billings in excess of recognized revenue
     1,581       465  
 
            
Total current liabilities
     14,597       12,788  
Long term liabilities
     311       287  
Deferred tax liabilities
     1,701       4,340  
 
            
Total liabilities
     16,609       17,415  
 
            
 
Stockholders’ equity:
                
Common stock
     4       4  
Additional paid-in-capital
     134,191       129,568  
Treasury stock
     (4,806 )     —  
Deferred stock-based compensation
     (148 )     (688 )
Notes receivable from stockholders
     (550 )     (3,025 )
Accumulated deficit
     (19,975 )     (19,361 )
Accumulated other comprehensive income
     82       54  
 
            
 
Total stockholders’ equity
     108,798       106,552  
 
            
 
Total liabilities and stockholders’ equity
   $ 125,407     $ 123,967  
 
            

- more -

 

PDF SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share amounts)

                                 
    Three Months Ended     Twelve Months Ended  
    December 31,     December 31,     December 31,     December 31,  
    2004     2003     2004     2003  
Revenue:
                                
Design-to-silicon-yield solutions
   $ 15,300     $ 10,454     $ 54,544     $ 35,629  
Gain share
     2,751       1,615       7,802       6,897  
 
                        
Total revenue
     18,051       12,069       62,346       42,526  
 
                        
 
Cost and expenses:
                                
Cost of design-to-silicon-yield solutions:
                                
Direct costs of design-to-silicon-yield solutions:
     6,245       3,686       21,855       14,412  
Amortization of acquired core technology
     1,266       1,350       5,209       2,168  
Research and development
     5,352       5,318       20,332       18,441  
Selling, general and administrative
     3,987       3,739       15,207       12,459  
Stock-based compensation amortization*
     61       411       742       1,755  
Amortization of other acquired intangible assets
     235       410       1,406       547  
Write-off of in-process research and development
     —       —       —       800  
 
                        
Total costs and expenses
     17,146       14,914       64,751       50,582  
 
                        
 
Income (loss) from operations
     905       (2,845 )     (2,405 )     (8,056 )
Interest and other income
     234       197       675       1,195  
 
                        
Income (loss) before taxes
     1,139       (2,648 )     (1,730 )     (6,861 )
 
Tax benefit
     (414 )     (1,373 )     (1,116 )     (2,345 )
 
                        
Net income (loss)
   $ 1,553     $ (1,275 )   $ (614 )   $ (4,516 )
 
                        
 
Net income (loss) per share:
                                
Basic
   $ 0.06     $ (0.05 )   $ (0.02 )   $ (0.19 )
 
                        
Diluted
     0.06     $ (0.05 )   $ (0.02 )   $ (0.19 )
 
                        
 
Weighted average common shares:
                                
Basic
     25,391       25,010       25,330       23,278  
 
                        
Diluted
     26,975       25,010       25,330       23,278  
 
                        
 
*Stock-based compensation amortization:
                                
Cost of design-to-silicon-yield solutions
   $ —     $ 52     $ 39     $ 345  
Research and development
     61       314       667       1,099  
Selling, general and administrative
     —       45       36       311  
 
                        
 
   $ 61     $ 411     $ 742     $ 1,755  
 
                        

- more -

 

PDF SOLUTIONS, INC.
RECONCILIATION OF REPORTED GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS)
(UNAUDITED)
(In thousands, except per share amounts)

                 
    Three Months Ended  
    December 31,     December 31,  
    2004     2003  
GAAP net income (loss)
   $ 1,553     $ (1,275 )
Stock-based compensation amortization
     61       411  
Amortization of intangibles, net of taxes
     2,019       729  
 
            
Non-GAAP net income (loss)
     3,633       (135 )
 
            
Non-GAAP net income (loss) per share — diluted
   $ 0.13     $ (0.01 )
 
            
Weighted average common shares — diluted
     26,975       25,010  
 
            

Use of Non-GAAP Information
In addition to providing results that are determined in accordance with Generally Accepted Accounting Principles (GAAP), PDF also provides certain Non-GAAP financial measures that exclude certain charges as additional information relating to its operating results. PDF’s management believes that the presentation of these measures provides useful information to investors regarding certain additional financial and business trends relating to its financial condition and results of operations. PDF has also chosen to provide this information to investors to enable them to perform meaningful comparisons of PDF’s past, present and future operating results. These measures are not in accordance with, or an alternative to, GAAP and may be different from non-GAAP measures used by other companies. The calculations of non-GAAP financial measures have been adjusted to exclude the effects of amortization of stock-based compensation and intangibles.

###