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PDF Solutions(R) Reports First Fiscal Quarter Results
[April 24, 2014]

PDF Solutions(R) Reports First Fiscal Quarter Results


(GlobeNewswire Via Acquire Media NewsEdge) SAN JOSE, Calif., April 24, 2014 (GLOBE NEWSWIRE) -- PDF Solutions, Inc. ("PDF Solutions" or the "Company") (Nasdaq:PDFS) the leading provider of yield improvement technologies and services for the integrated circuit (IC) manufacturing process life cycle, today announced financial results for its first fiscal quarter ended March 31, 2014.



Total revenues for the first fiscal quarter of 2014 totaled $27.1 million, which were the same as for the fourth fiscal quarter of 2013 and up 12% when compared to total revenues of $24.1 million for the first fiscal quarter of 2013. Design-to-silicon-yield solutions revenue for the first fiscal quarter of 2014 totaled $14.9 million, which was the same as for the fourth fiscal quarter of 2013 and up only slightly when compared to design-to-silicon-yield solutions revenue of $14.8 million for the first fiscal quarter of 2013. Gainshare performance incentives revenue for the first fiscal quarter of 2014 totaled $12.2 million, which was the same as for the fourth fiscal quarter of 2013 and up 31% when compared to gainshare performance incentives revenue of $9.3 million for the first fiscal quarter of 2013.

On a GAAP basis, net income for the first fiscal quarter of 2014 was $6.3 million, or $0.21 per basic and $0.20 per diluted share, compared to $6.8 million, or $0.23 per basic and $0.21 per diluted share, for the fourth fiscal quarter of 2013, and compared to $4.7 million, or $0.16 per basic and $0.15 per diluted share, for the first fiscal quarter of 2013.


Cash and cash equivalents were $101.0 million at March 31, 2014, compared to $89.4 million at December 31, 2013.

Non-GAAP net income for the first fiscal quarter of 2014 was $9.5 million, or $0.30 per diluted share, compared to $10.8 million, or $0.34 per diluted share, for the fourth fiscal quarter of 2013, and compared to $6.7 million, or $0.22 per diluted share, for the first fiscal quarter of 2013. EBITDAR for the first fiscal quarter of 2014 was $11.5 million, or $0.36 per diluted share, compared to $12.3 million, or $0.39 per diluted share, for the fourth fiscal quarter of 2013, and compared to $8.1 million, or $0.26 per diluted share, for the first fiscal quarter of 2013.

As previously announced, PDF Solutions will discuss these results on a live conference call beginning at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time today. The call will be simultaneously web cast on PDF Solutions' website at http://www.pdf.com/events. A replay of the web cast will be available at the same website address beginning approximately two hours after completion of the live call. A copy of this press release, including the disclosure and reconciliation of certain non-GAAP financial measures to the comparable GAAP measures, which non-GAAP measures may be used periodically by PDF Solutions' management when discussing financial results with investors and analysts, will also be available on PDF Solutions' website at http://www.pdf.com/press-releases following the date of this release.

Information Regarding Use of Non-GAAP Financial Measures In addition to providing results that are determined in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), PDF Solutions also provides certain non-GAAP financial measures. Non-GAAP net income excludes the effects of stock-based compensation expenses, amortization of acquired technology and other acquired intangible assets, restructuring charges, and their related income tax effects, as applicable, as well as adjusts for the non-cash portion of income taxes. EBITDAR is calculated by taking GAAP net income, adding back stock-based compensation expenses, amortization of acquired technology and other acquired intangibles, restructuring charges, depreciation expense and income tax provision (benefit). These non-GAAP financial measures are used by management internally to measure the Company's profitability and performance. PDF Solutions' management believes that these non-GAAP measures provide useful supplemental measures to investors regarding the Company's ongoing operations in light of the fact that none of these categories of expense has a current effect on the future uses of cash (with the exception of restructuring charges) nor do they impact the generation of current or future revenues. These non-GAAP results should not be considered an alternative to, or a substitute for, GAAP financial information, and may be different from similarly titled non-GAAP measures used by other companies. In particular, these non-GAAP financial measures are not a substitute for GAAP measures of income or loss as a measure of performance, or to cash flows from operating, investing and financing activities as a measure of liquidity. Since management uses these non-GAAP financial measures internally to measure profitability and performance, PDF Solutions has included these non-GAAP measures to give investors an opportunity to see the Company's financial results as viewed by management. A reconciliation of the comparable GAAP financial measures to the non-GAAP financial measures is provided at the end of the Company's financial statements presented below.

Forward-Looking Statements The statements made on the conference call to discuss these results regarding PDF Solutions' final financial results for its first fiscal quarter ended March 31, 2014, including the Company's future expected financial results, are forward looking and are subject to events and circumstances of the future. Actual results could differ materially from those expressed in these forward-looking statements. Risks and uncertainties that could cause results to differ materially include risks associated with: customers' production volumes at Gainshare-covered facilities; continued adoption of the Company's solutions by new and existing customers; project milestones or delays and performance criteria achieved; and other risks set forth in PDF Solutions' periodic public filings with the Securities and Exchange Commission, including, without limitation, its Annual Reports on Form 10-K, most recently filed for the year ended December 31, 2013, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K and amendments to such reports. The forward-looking statements made in the conference call are made as of the date hereof, and PDF Solutions does not assume any obligation to update such statements nor the reasons why actual results could differ materially from those projected in such statements.

About PDF Solutions PDF Solutions, Inc. (Nasdaq:PDFS) is the leading provider of yield improvement technologies and services for the IC manufacturing process life cycle. PDF Solutions offers solutions that are designed to enable clients to lower costs of IC design and manufacture, enhance time to market, and improve profitability by addressing design and manufacturing interactions from product design to initial process ramps to mature manufacturing operations. PDF Solutions' Characterization Vehicle® (CV®) electrical test chip infrastructure provides the core modeling capabilities, and is used by more leading manufacturers than any other test chips in the industry. Proprietary Template™ layout patterns provide optimum area, performance, and manufacturability for designing IC products. The proprietary Exensio™ solution for YieldAware™ FDC enables world-class variability control in manufacturing, in part by leveraging PDF Solutions' industry-leading dataPOWER® yield management system (YMS) and mæstria® fault detection and classification (FDC) software. Headquartered in San Jose, Calif., PDF Solutions operates worldwide with additional offices in Canada, China, France, Germany, Italy, Japan, Korea, Singapore, and Taiwan. For the Company's latest news and information, visit http://www.pdf.com/.

Characterization Vehicle, CV, dataPOWER®, mæstria®, PDF Solutions®, and the PDF Solutions logo are registered trademarks of PDF Solutions, Inc. or its subsidiaries. Exensio, Template and YieldAware are trademarks of PDF Solutions, Inc. or its subsidiaries.

                 PDF SOLUTIONS, INC.

   CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)    (In thousands)               March 31,December 31, 20142013   ASSETS     Current assets:     Cash and cash equivalents  $ 100,994  $ 89,371 Accounts receivable, net  32,515  34,860 Deferred tax assets - current portion  4,185  5,920 Prepaid expenses and other current assets  4,110  3,632 Total current assets  141,804  133,783 Property and equipment, net  7,582  7,064 Deferred tax assets - long-term portion  8,448  8,599 Other non-current assets  1,479  1,718 Total assets  159,313  151,164      LIABILITIES AND STOCKHOLDERS' EQUITY     Current liabilities:     Accounts payable  $ 961  $ 1,129 Accrued compensation and related benefits  5,285  7,707 Accrued and other current liabilities  3,685  1,593 Deferred revenues  4,526  2,096 Billings in excess of recognized revenues  591  343 Total current liabilities  15,048  12,868 Non-current liabilities  3,366  3,584 Total liabilities  18,414  16,452       Stockholders' equity:     Common stock and additional paid-in-capital  236,940  233,818 Treasury stock at cost  (32,043)  (28,905) Accumulated deficit  (64,394)  (70,649) Accumulated other comprehensive income  396  448 Total stockholders' equity  140,899  134,712 Total liabilities and stockholders' equity  $ 159,313  $ 151,164      PDF SOLUTIONS, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)(In thousands, except per share amounts)                  Three months ended  March 31,December 31,March 31,  201420132013         Revenues:       Design-to-silicon-yield solutions  $ 14,919  $ 14,897  $ 14,848 Gainshare performance incentives  12,167  12,181  9,262 Total revenues 27,086 27,078 24,110         Direct costs of design-to-silicon-yield solutions 9,705 9,565 9,657 Gross profit 17,381 17,513 14,453         Operating expenses:       Research and development 3,596 3,370 3,364 Selling, general and administrative 4,329 4,015 4,794 Amortization of other acquired intangible assets 18 18 18 Restructuring charges (credits) 57 232 (52) Total operating expenses 8,000 7,635 8,124         Income from operations 9,381 9,878 6,329 Interest and other income (expense), net (87) 45 250 Income before income taxes 9,294 9,923 6,579 Income tax provision  3,039  3,101  1,848 Net income  $ 6,255  $ 6,822  $ 4,731         Net income per share:       Basic  $ 0.21  $ 0.23  $ 0.16 Diluted  $ 0.20  $ 0.21  $ 0.15         Weighted average common shares:       Basic 30,477 30,303 29,353 Diluted 31,965 31,954 30,815                        PDF SOLUTIONS, INC.

     RECONCILIATION OF GAAP TO NON-GAAP NET INCOME (UNAUDITED)      (In thousands, except per share amounts)                Three months ended  March 31,December 31,March 31,  201420132013 GAAP net income $ 6,255 $ 6,822 $ 4,731 Adjustments to reconcile GAAP net income to non-GAAP net income:       Stock-based compensation expense  1,659  1,751  1,309 Amortization of other acquired intangible assets 18 18 18 Restructuring charges (credits)  57  232  (52) Non-cash portion of income tax expense  1,499  1,951  730 Non-GAAP net income $ 9,488 $ 10,774 $ 6,736         GAAP net income per diluted share $ 0.20 $ 0.21 $ 0.15 Non-GAAP net income per diluted share $ 0.30 $ 0.34 $ 0.22         Shares used in diluted shares calculation 31,965 31,954 30,815                PDF SOLUTIONS, INC.

     RECONCILIATION OF GAAP NET INCOME TO EBITDAR (UNAUDITED)      (In thousands, except per share amounts)                Three months ended  March 31,December 31,March 31,  201420132013      GAAP net income 6,255 6,822 4,731 Adjustments to reconcile GAAP net income to EBITDAR:       Stock-based compensation expense 1,659 1,751 1,309 Amortization of other acquired intangible assets 18 18 18 Restructuring charges (credits) 57 232 (52) Depreciation expense  458  425 256 Income tax provision  3,039  3,101  1,848 EBITDAR $ 11,486 $ 12,349 $ 8,110         EBITDAR per diluted share $ 0.36 $ 0.39 $ 0.26         Shares used in diluted shares calculation 31,965 31,954 30,815CONTACT: Company Contacts: Gregory Walker, VP, Finance and CFO Tel: (408) 938-6457 Email: [email protected] Sonia Segovia, IR Coordinator Tel: (408) 938-6491 Email: [email protected] Source: PDF Solutions, Inc.

2014 GlobeNewswire, Inc.

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