PDF Solutions, Inc. (Nasdaq: PDFS), a leading provider of
comprehensive data solutions for the semiconductor ecosystem, today
announced financial results for its first quarter ended March 31,
2021.
Highlights of First Quarter 2021
Financial Results
Total revenues for the first quarter of 2021
were $24.2 million, compared to $22.4 million for the fourth
quarter of 2020 and $21.2 million for the first quarter of 2020.
Analytics revenue for the first quarter of 2021 was $19.4 million,
compared to $14.5 million for the fourth quarter of 2020 and $13.3
million for the first quarter of 2020. Integrated Yield Ramp
revenue for the first quarter of 2021 was $4.8 million, compared to
$7.9 million for both the fourth and the first quarter of 2020.
GAAP gross margin for the first quarter of 2021
was 56%, compared to 56% for the fourth quarter of 2020 and 60% for
the first quarter of 2020.
Non-GAAP gross margin for the first quarter of
2021 was 61%, compared to 61% for the fourth quarter of 2020 and
65% for the fourth quarter of 2020.
On a GAAP basis, net loss for the first quarter
of 2021 was $7.6 million, or ($0.21) per basic and diluted share,
compared to a net loss of $33.4 million, or ($0.91) per basic and
diluted share, for the fourth quarter of 2020, and compared to a
net loss of $0.5 million, or ($0.02) per basic and diluted share,
for the first quarter of 2020.
Non-GAAP net loss for the first quarter of 2021
was $1.9 million, or ($0.05) per diluted share, compared to a net
loss of $1.3 million, or ($0.03) per diluted share, for the fourth
quarter of 2020, and compared to net loss of $0.1 million, or
($0.00) per diluted share, for the first quarter of 2020.
Cash, cash equivalents and short-term
investments at March 31, 2021, were $132.3 million, compared to
$145.3 million at December 31, 2020, a decrease of $13.0 million.
Cash used in operating activities was $8.3 million and repurchases
of shares for $4.5 million during the three months ended March 31,
2021.
Conference Call
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 webcast on PDF Solutions’ website at
http://ir.pdf.com/webcasts. A replay of the webcast 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.
First Quarter 2021 Financial Commentary
Available Online
A Management Report reviewing the Company’s
first quarter 2021 financial results will be furnished to the
Securities and Exchange Commission on Form 8-K and published on the
Company’s website at http://ir.pdf.com/financial-reports. Analysts
and investors are encouraged to review this commentary prior to
participating in the conference call.
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 gross
margin excludes stock-based compensation expense and the
amortization of acquired technology. Non-GAAP net loss excludes the
effects of non-recurring items (including expenses related to an
arbitration proceeding for a disputed contract with a customer),
acquisition-related costs, write-down in value of property and
equipment, stock-based compensation expense, amortization of
acquired technology and other acquired intangible assets, and their
related income tax effects, as applicable, as well as adjustments
for the non-cash portion of income taxes, tax impact of the CARES
Act and valuation allowance for deferred tax assets. 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
information 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
certain non-recurring items and acquisition-related costs) 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 differ 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 press release and the planned conference
call may include forward-looking statements regarding the Company’s
future expected business performance and financial results,
including expectations for analytics and total revenues, that are
subject to future events and circumstances. 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 under contracts that provide Gainshare
royalties, cost and schedule of new product development; continued
adoption of the Company’s solutions by new and existing customers;
project milestones or delays and performance criteria achieved; the
provision of technology and services prior to the execution of a
final contract; the continuing impact of the coronavirus
(COVID-19) on the semiconductor industry and on the Company’s
operations or demand for the Company’s products; the time required
of the Company’s executive management for, and the expenses related
to, as well as the success of the Company’s strategic growth
opportunities and partnerships, including its partnership with
Advantest Corporation; our ability to successfully integrate the
acquired businesses and technologies; 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, 2020, 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 (NASDAQ: PDFS) provides
comprehensive data solutions designed to empower organizations
across the semiconductor ecosystem to improve the yield and quality
of their products and operational efficiency for increased
profitability. The company’s products and services are used by
Fortune 500 companies across the semiconductor ecosystem to achieve
smart manufacturing goals by connecting and controlling equipment,
collecting data generated during manufacturing and test operations,
and performing advanced analytics and machine learning to enable
profitable, high-volume manufacturing.
Founded in 1991, PDF Solutions is headquartered
in Santa Clara, California, with operations across Europe and Asia.
The company (directly or through one or more subsidiaries) is an
active member of SEMI, INEMI, TPCA, IPC, the OPC Foundation, and
DMDII. For the latest news and information about PDF Solutions or
to find office locations, visit http://www.pdf.com/.
PDF Solutions and the PDF Solutions logo are
trademarks or registered trademarks of PDF Solutions, Inc. or its
subsidiaries.
PDF SOLUTIONS,
INC. |
|
|
|
|
|
|
CONDENSED CONSOLIDATED
BALANCE SHEETS (UNAUDITED) |
|
|
|
|
|
|
(In
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
December 31, |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
74,287 |
|
|
$ |
30,315 |
|
Short-term investments |
|
|
57,999 |
|
|
|
114,981 |
|
Accounts receivable, net |
|
|
34,785 |
|
|
|
34,140 |
|
Prepaid expenses and other current assets |
|
|
11,375 |
|
|
|
13,944 |
|
Total current assets |
|
|
178,446 |
|
|
|
193,380 |
|
Property and equipment, net |
|
|
38,147 |
|
|
|
39,242 |
|
Operating lease right-of-use assets, net |
|
|
6,171 |
|
|
|
6,672 |
|
Goodwill |
|
|
15,305 |
|
|
|
15,774 |
|
Intangible assets, net |
|
|
23,724 |
|
|
|
24,573 |
|
Deferred tax assets, net |
|
|
198 |
|
|
|
249 |
|
Other non-current assets |
|
|
9,140 |
|
|
|
7,690 |
|
Total assets |
|
$ |
271,131 |
|
|
$ |
287,580 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
967 |
|
|
$ |
4,399 |
|
Accrued compensation and related benefits |
|
|
6,204 |
|
|
|
8,339 |
|
Accrued and other current liabilities |
|
|
8,271 |
|
|
|
6,309 |
|
Operating lease liabilities ‒ current portion |
|
|
1,742 |
|
|
|
1,926 |
|
Deferred revenues ‒ current portion |
|
|
17,578 |
|
|
|
19,895 |
|
Billings in excess of recognized revenues |
|
|
339 |
|
|
|
1,337 |
|
Total current liabilities |
|
|
35,101 |
|
|
|
42,205 |
|
Long-term income taxes payable |
|
|
2,911 |
|
|
|
2,956 |
|
Non-current operating lease liabilities |
|
|
6,151 |
|
|
|
6,516 |
|
Other non-current liabilities |
|
|
1,715 |
|
|
|
1,397 |
|
Total liabilities |
|
|
45,878 |
|
|
|
53,074 |
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Common stock and additional paid-in-capital |
|
|
412,037 |
|
|
|
407,179 |
|
Treasury stock at cost |
|
|
(102,201 |
) |
|
|
(96,215 |
) |
Accumulated deficit |
|
|
(83,830 |
) |
|
|
(76,233 |
) |
Accumulated other comprehensive loss |
|
|
(753 |
) |
|
|
(225 |
) |
Total stockholders’ equity |
|
|
225,253 |
|
|
|
234,506 |
|
Total liabilities and stockholders’ equity |
|
$ |
271,131 |
|
|
$ |
287,580 |
|
|
PDF
SOLUTIONS, INC. |
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
(In
thousands, except per share amounts) |
|
|
Three months ended |
|
|
|
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|
|
|
2021 (1) |
|
|
2020 (1) |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Analytics |
|
$ |
19,393 |
|
|
$ |
14,466 |
|
|
$ |
13,248 |
|
|
Integrated yield ramp |
|
|
4,807 |
|
|
|
7,901 |
|
|
|
7,910 |
|
|
Total revenues |
|
|
24,200 |
|
|
|
22,367 |
|
|
|
21,158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of revenues |
|
|
10,663 |
|
|
|
9,839 |
|
|
|
8,487 |
|
|
Research and development |
|
|
10,841 |
|
|
|
9,981 |
|
|
|
8,590 |
|
|
Selling, general and administrative |
|
|
9,464 |
|
|
|
8,625 |
|
|
|
7,895 |
|
|
Amortization of other acquired intangible assets |
|
|
314 |
|
|
|
220 |
|
|
|
173 |
|
|
Interest and other expense (income), net |
|
|
(441 |
) |
|
|
738 |
|
|
|
20 |
|
|
Loss before income taxes |
|
|
(6,641 |
) |
|
|
(7,036 |
) |
|
|
(4,007 |
) |
|
Income tax expense
(benefit) |
|
|
956 |
|
|
|
26,413 |
|
|
|
(3,479 |
) |
|
Net loss |
|
$ |
(7,597 |
) |
|
$ |
(33,449 |
) |
|
$ |
(528 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic and
diluted |
|
$ |
(0.21 |
) |
|
$ |
(0.91 |
) |
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
used to calculate |
|
|
|
|
|
|
|
|
|
|
|
|
|
net loss per share, basic and diluted |
|
|
36,974 |
|
|
|
36,727 |
|
|
|
32,703 |
|
|
______________________
(1) |
Analytics revenue includes revenue from Cimetrix Incorporated, a
wholly owned subsidiary acquired by the Company in December
2020. |
|
PDF
SOLUTIONS, INC. |
RECONCILIATION OF GAAP GROSS MARGIN TO NON-GAAP GROSS
MARGIN (UNAUDITED) |
(In
thousands) |
|
|
Three months ended |
|
|
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
$ |
24,200 |
|
|
$ |
22,367 |
|
|
$ |
21,158 |
|
Costs of revenues |
|
|
10,663 |
|
|
|
9,839 |
|
|
|
8,487 |
|
GAAP gross profit |
|
$ |
13,537 |
|
|
$ |
12,528 |
|
|
$ |
12,671 |
|
GAAP gross margin |
|
|
56 |
% |
|
|
56 |
% |
|
|
60 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit |
|
$ |
13,537 |
|
|
$ |
12,528 |
|
|
$ |
12,671 |
|
Adjustments to reconcile GAAP
to non-GAAP gross margin: |
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
652 |
|
|
|
872 |
|
|
|
909 |
|
Amortization of acquired technology |
|
|
535 |
|
|
|
274 |
|
|
|
144 |
|
Non-GAAP gross profit |
|
$ |
14,727 |
|
|
$ |
13,674 |
|
|
$ |
13,724 |
|
Non-GAAP gross margin |
|
|
61 |
% |
|
|
61 |
% |
|
|
65 |
% |
|
PDF
SOLUTIONS, INC. |
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET LOSS
(UNAUDITED) |
(In
thousands, except per share amounts) |
|
|
Three months ended |
|
|
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
GAAP net loss |
|
$ |
(7,597 |
) |
|
$ |
(33,449 |
) |
|
$ |
(528 |
) |
Adjustments to reconcile GAAP
net loss to non-GAAP net loss: |
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
3,369 |
|
|
|
2,987 |
|
|
|
3,368 |
|
Amortization of acquired technology |
|
|
535 |
|
|
|
274 |
|
|
|
144 |
|
Amortization of other acquired intangible assets |
|
|
314 |
|
|
|
220 |
|
|
|
173 |
|
Expenses of arbitration (1) |
|
|
295 |
|
|
|
268 |
|
|
|
101 |
|
Acquisition-related costs (2) |
|
|
— |
|
|
|
752 |
|
|
|
— |
|
Write-down in value of property and equipment |
|
|
— |
|
|
|
179 |
|
|
|
— |
|
Tax impact of reconciling items (3) |
|
|
— |
|
|
|
1,931 |
|
|
|
(1,143 |
) |
Tax impact of the CARES Act (4) |
|
|
— |
|
|
|
1,099 |
|
|
|
(2,261 |
) |
Tax impact of valuation allowance for deferred tax assets (5) |
|
|
1,166 |
|
|
|
24,471 |
|
|
|
— |
|
Non-GAAP net loss |
|
$ |
(1,918 |
) |
|
$ |
(1,268 |
) |
|
$ |
(146 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss per diluted
share |
|
$ |
(0.21 |
) |
|
$ |
(0.91 |
) |
|
$ |
(0.02 |
) |
Non-GAAP net loss per diluted
share |
|
$ |
(0.05 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.00 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in net loss per
diluted share calculation |
|
|
36,974 |
|
|
|
36,727 |
|
|
|
32,703 |
|
______________________
(1) |
Represents the expenses related to an arbitration proceeding over a
disputed customer contract, which expenses are expected to continue
until the arbitration is resolved. |
|
|
(2) |
Represents transaction expenses related to the acquisition of
Cimetrix Incorporated in the fourth quarter of 2020. |
|
|
(3) |
Tax impact of reconciling items for the fourth quarter of 2020
pertains to the reversal of prior quarters’ tax impact due to a
full valuation allowance recognized against the U.S. deferred tax
assets (DTA) on a GAAP basis. The above reconciling items do not
have any tax expense or benefit on a GAAP basis for the year ended
December 31, 2020 due to the full valuation allowance offsetting
any tax impact from reconciling items. |
|
|
(4) |
The Company recognized a discrete tax benefit recognized from the
carryback of net operating losses (NOLs) under the Coronavirus Aid,
Relief, and Economic Security Act (the “CARES Act”) enacted in
March 2020. Due to the full valuation allowance against U.S. DTA
recognized in the fourth quarter of 2020, there is no tax benefit
from the released tax attributes. The Company does not have any
NOLs on a non-GAAP basis and, therefore, it did not recognize this
discrete tax benefit in calculating its non-GAAP tax expense and
net loss. |
|
|
(5) |
The Company's GAAP tax expense is higher year-to-date compared to
the non-GAAP tax expense, primarily due to the GAAP full U.S.
federal and state valuation allowances. The Company's non-GAAP tax
rate and resulting non-GAAP tax expense is not calculated with a
full US federal or state valuation allowance due to recent
cumulative profit on a non-GAAP basis. Each reporting period,
management evaluates the need for a valuation allowance and may
place a valuation allowance against its US net deferred tax assets
(DTA) on a non-GAAP basis if it concludes it is more likely than
not that it will not be able to utilize some or all of its US DTAs
on a non-GAAP basis. |
Company Contacts: |
|
|
Adnan Raza |
Sonia Segovia |
Joe Diaz, Robert Blum, Joe Dorame |
Chief Financial Officer |
IR Coordinator |
Lytham Partners, LLC |
Tel: (408) 516-0237 |
Tel: (408) 938-6491 |
Tel: (602) 889-9700 |
Email: adnan.raza@pdf.com |
Email: sonia.segovia@pdf.com |
Email: pdfs@lythampartners.com |
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