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PDF Solutions Reports Complete Fourth Quarter and Full Year 2009 Results

Feb 10, 2010 - San Jose, Calif. (PDF Solutions, Inc.)

PDF Solutions, Inc. (NASDAQ: PDFS) the leading provider of yield improvement technologies and services for the integrated circuit (IC) manufacturing process life cycle, today announced complete financial results for its fiscal quarter and year ended December 31, 2009.

As previously reported, revenue for the fourth fiscal quarter of 2009 totaled $14.8 million, up 7% from $13.9 million for the third fiscal quarter of 2009 and up 7% when compared with revenue of $13.8 million for the fourth fiscal quarter of 2008.  As also previously reported, gainshare revenue for the fourth fiscal quarter of 2009 totaled $5.6 million, up 4% from $5.4 million for the third fiscal quarter of 2009 and up 124% when compared to gainshare revenue of $2.5 million for the fourth fiscal quarter of 2008.

Revenue for the fiscal year ended December 31, 2009 totaled $48.4 million, down 35% from $74.0 million for the fiscal year ended December 31, 2008.  Gainshare revenue for the fiscal year ended December 31, 2009 totaled $15.8 million, down 17% from $18.9 million for the fiscal year ended December 31, 2008.

Net loss for the fourth fiscal quarter of 2009 was $701,000, or $0.03 per basic and diluted share, compared to net loss of $2.8 million, or $0.11 per basic and diluted share for the third fiscal quarter of 2009, and net loss of $79.1 million, or $2.92 per basic and diluted share for the fourth fiscal quarter of 2008.
Net loss for the fiscal year ended December 31, 2009 was $17.5 million, or $0.66 per basic and diluted share, compared to net loss of $95.7 million, or $3.48 per basic and diluted share for the fiscal year ended December 31, 2008.

In addition to using GAAP results in evaluating PDF Solutions’ business, PDF Solutions’ management also believes it is useful to measure results using a non-GAAP measure of net loss, excluding stock-based compensation expense, amortization of acquired technology and intangible assets, restructuring charges, impairment charges on goodwill and certain intangible assets, and their related income tax effects, as applicable.  Using this non-GAAP measure, the non-GAAP net income for the fourth fiscal quarter of 2009 totaled $1.4 million, or $0.05 per diluted share, compared to non-GAAP net income of $442,000, or $0.02 per diluted share for the third fiscal quarter of 2009 and a non-GAAP net loss of $3.8 million, or $0.14 per diluted share, for the fourth fiscal quarter of 2008. Also, using this non-GAAP measure, the non-GAAP net loss for the fiscal year ended December 31, 2009 totaled $6.9 million, or $0.26 per diluted share, compared to a non-GAAP net loss of $3.2 million, or $0.12 per diluted share for the fiscal year ended December 31, 2008.

As previously announced, PDF Solutions will discuss these results on a live conference call beginning at 3:00 p.m. Pacific Time/6:00 p.m. Eastern Time today. The call will be simultaneously web cast on PDF Solutions’ website at http://ir.pdf.com/events.cfm. 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 that exclude the effects of stock-based compensation expense, amortization of acquired technology and intangible assets, restructuring charges, impairment charges on goodwill and certain intangible assets, and their related income tax effects, as applicable.  PDF Solutions’ management believes that the presentation of these measures provides useful supplemental information to investors regarding PDF’s operating results.  These non-GAAP financial measures are used by management internally to measure the company’s profitability and performance.  PDF Solution’s management believes that excluding the effects of stock-based compensation expense, amortization of acquired technology and intangible assets, restructuring charges, impairment charges on goodwill and certain intangible assets, and their related income tax effects, as applicable, provides a useful supplemental measure of 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 have use with regards to 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 non-GAAP financial measures to the comparable GAAP financial measure is provided at the end of the company’s financial statements presented below.

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®) test chips provide the core modeling capabilities, and are used by more leading manufacturers than any other test chips in the industry.  PDF Solutions’ industry leading yield management system software, dataPOWER®, and fault detection and classification software, mæstria®, enhance yield improvement and production control activities at leading fabs around the world. Headquartered in San Jose, Calif., PDF Solutions operates worldwide with additional offices in China, Europe, 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.

Company Contacts

Keith A. Jones                    
Chief Financial Officer   
Tel: (408) 938-4452   
Email: keith.jones@pdf.com   

Sonia Segovia
Investor Relations Coordinator
Tel: (408) 938-6491
Email: sonia.segovia@pdf.com

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PDFS 4Q/FY2009 Condensed Consolidated Balance Sheets

 

PDFS 4Q/FY2009 Condensed Consolidated Statement of Operations

 

PDFS 4Q/FY2009  GAAP-Non-GAAP Reconciliation