EX-99.1 2 ex_825594.htm EXHIBIT 99.1 ex_825594.htm

Exhibit 99.1

 

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2858 De La Cruz Boulevard, Santa Clara CA 95050 USA
+1.408.280.7900                                             www.pdf.com

 

News Release

 

Company Contacts:

   

Adnan Raza

 

Sonia Segovia

Chief Financial Officer

 

Investor Relations

Tel: (408) 280-7900

 

Tel: (408) 938-6491

Email: adnan.raza@pdf.com

 

Email: sonia.segovia@pdf.com

 

PDF Solutions® Reports Second Quarter 2025 Financial Results

Announces Record Second Quarter 2025 Total Revenues

 

Santa Clara, CA, August 7, 2025 – PDF Solutions, Inc. (Nasdaq: PDFS), a leading provider of comprehensive data solutions for the semiconductor and electronics ecosystem, today announced financial results for its second quarter ended June 30, 2025.

 

Financial Highlights of Second Quarter 2025

 

 

Record quarterly total revenues of $51.7 million, up 24% over last years comparable quarter

 

Record quarterly analytics revenue of $48.8 million, up 28% over last years comparable quarter

 

GAAP gross margin of 71% and non-GAAP gross margin of 76%

 

GAAP diluted earnings per share (EPS) of $0.03 and non-GAAP diluted EPS of $0.19

 

Backlog grew versus the last quarter to $232.6 million as of June 30, 2025

 

 

Total revenues for the second quarter of 2025 were $51.7 million, compared to $47.8 million for the first quarter of 2025 and $41.7 million for the second quarter of 2024. Analytics revenue for the second quarter of 2025 was $48.8 million, compared to $42.5 million for the first quarter of 2025 and $38.1 million for the second quarter of 2024. Integrated Yield Ramp revenue for the second quarter of 2025 was $2.9 million, compared to $5.3 million for the first quarter of 2025 and $3.5 million for the second quarter of 2024.

 

GAAP gross margin for the second quarter of 2025 was 71%, compared to 73% for the first quarter of 2025 and 71% for the second quarter of 2024.

 

Non-GAAP gross margin for the second quarter of 2025 was 76%, compared to 77% for the first quarter of 2025 and 75% for the second quarter of 2024.

 

On a GAAP basis, net income for the second quarter of 2025 was $1.1 million, or $0.03 per diluted share, compared to net loss of $3.0 million, or ($0.08) per diluted share, for the first quarter of 2025, and net income of $1.7 million, or $0.04 per diluted share, for the second quarter of 2024.

 

Non-GAAP net income for the second quarter of 2025 was $7.3 million, or $0.19 per diluted share, compared to non-GAAP net income of $8.1 million, or $0.21 per diluted share, for the first quarter of 2025, and non-GAAP net income of $7.1 million, or $0.18 per diluted share, for the second quarter of 2024.

 

Financial Outlook

 

“The second quarter of 2025 saw strong customer activity and platform development, driven by AI-driven digitization. We achieved record bookings in both our Sapience Manufacturing Hub product family and newly acquired secureWISE® offering. The PDF Platform - spanning analytics, AI/Model Ops, enterprise connectivity, equipment, and supply chain - empowers customers to handle today’s complex manufacturing and testing environments and data requirements. With a strong portfolio and momentum, we reaffirm our 21-23% annual revenue growth prior guidance range for this year,” said John Kibarian, CEO and President.

 

 

 

PDF Solutions® Reports Second Quarter 2025 Financial Results

 

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. To participate on the live call, analysts and investors should pre-register at:  https://register-conf.media-server.com/register/BId4a92799e4e24169a58f6ea3c713566b. Registrants will receive dial-in information and a unique passcode to access the call. We encourage participants to dial into the call ten minutes ahead of the scheduled time. The teleconference will also be webcast simultaneously on the Company’s website at https://ir.pdf.com/webcasts. A replay of the conference call webcast will be available after the call on the Company’s investor relations website. 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 on and following the date of this release.

 

Second Quarter 2025 Financial Commentary Available Online

 

A Management Report reviewing the Company’s second quarter 2025 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 accounting principles generally accepted in the United States of America (“GAAP”), PDF Solutions also provides certain non-GAAP financial measures. Non-GAAP gross profit and margin exclude stock-based compensation expense and the amortization of acquired technology under costs of revenues. Non-GAAP net income excludes stock-based compensation expense, amortization of acquired technology under costs of revenues, amortization of other acquired intangible assets, amortization of debt issuance costs and the effects of certain non-recurring items, such as expenses for certain legal proceedings, non-recurring legal, finance, integration and other costs, recovery from previously written-off property and equipment, and their related income tax effects, as applicable, as well as adjustments for the valuation allowance for deferred tax assets and reconciling items. 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 and income has a current effect on the future uses of cash (with the exception of expenses related to certain legal proceedings and non-recurring legal, finance, integration and other 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 unaudited condensed consolidated financial statements presented below.

 

 

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PDF Solutions® Reports Second Quarter 2025 Financial Results

 

About PDF Solutions

 

PDF Solutions (Nasdaq: PDFS) provides comprehensive data solutions designed to empower organizations across the semiconductor and electronics industry ecosystems 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 North America, 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 https://www.pdf.com/.

 

PDF Solutions and the PDF Solutions logo are trademarks or registered trademarks of PDF Solutions, Inc. or its subsidiaries.

 

Forward-Looking Statements

 

This press release and the planned conference call include forward-looking statements regarding the Company’s future expected business performance and financial results, including expectations about total revenue growth for 2025, portfolio strength and momentum and other statements identified by words such as “could,” “expects,” “intends,” “may,” “plans,” “potential,” “should,” “will,” “would,” or similar expressions and the negatives of those terms, that are subject to future events and circumstances. Other than statements of historical fact, all statements contained in this press release and the planned conference call are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. 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: the effectiveness of the Company’s business and technology strategies; current semiconductor industry trends and competition; rates of adoption of the Company’s solutions by new and existing customers; project milestones or delays and performance criteria achieved; cost and schedule of new product development and investments in research and development; the continuing impact of macroeconomic conditions, including inflation, changing interest rates and tariffs, the evolving trade regulatory environment and geopolitical tensions, and other trends impacting the semiconductor industry, the Company’s customers, operations, and supply and demand for its products; supply chain disruptions; changes in laws and regulations, including recent tax and data privacy laws and regulations, or the interpretation or enforcement thereof; the success of the Company’s strategic growth opportunities and partnerships; recent and future acquisitions, strategic alliances and relationships and the Company’s ability to successfully integrate acquired businesses and technologies; whether the Company can successfully convert backlog into revenue; customers’ production volumes under contracts that provide Gainshare; the sufficiency of the Company’s cash resources and anticipated funds from operations; the Company’s ability to obtain additional financing if needed and its ability to use support and updates for certain open-source software; and other risks and uncertainties discussed in PDF Solutions’ periodic public filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2024, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K and any amendments to such reports. All forward-looking statements made in this press release and 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.

 

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PDF Solutions® Reports Second Quarter 2025 Financial Results

 

PDF SOLUTIONS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In thousands)

 

   

June 30,

   

December 31,

 
   

2025

   

2024

 

ASSETS

               

Current assets:

               

Cash and cash equivalents

  $ 37,415     $ 90,594  

Short-term investments

    2,987       24,291  

Accounts receivable, net

    69,264       73,649  

Prepaid expenses and other current assets

    25,124       17,445  

Total current assets

    134,790       205,979  

Property and equipment, net

    61,853       48,465  

Operating lease right-of-use assets, net

    4,843       4,029  

Goodwill

    96,798       14,953  

Intangible assets, net

    56,330       12,307  

Deferred tax assets, net

    1,209       43  

Other non-current assets

    35,310       29,513  

Total assets

  $ 391,133     $ 315,289  
                 

LIABILITIES AND STOCKHOLDERS’ EQUITY

               

Current liabilities:

               

Accounts payable

  $ 6,555     $ 8,255  

Accrued compensation and related benefits

    13,984       16,855  

Accrued and other current liabilities

    9,069       8,752  

Operating lease liabilities ‒ current portion

    1,752       1,675  

Deferred revenues ‒ current portion

    23,363       25,005  

Current portion of long-term debt, net

    2,240        

Total current liabilities

    56,963       60,542  

Long-term income taxes

    2,958       2,915  

Non-current operating lease liabilities

    4,176       3,504  

Long-term debt, net

    65,877        

Other non-current liabilities

    3,639       2,291  

Total liabilities

    133,613       69,252  
                 

Stockholders’ equity:

               

Common stock and additional paid-in capital

    518,061       502,908  

Treasury stock, at cost

    (162,887 )     (159,352 )

Accumulated deficit

    (95,874 )     (93,988 )

Accumulated other comprehensive loss

    (1,780 )     (3,531 )

Total stockholders’ equity

    257,520       246,037  

Total liabilities and stockholders’ equity

  $ 391,133     $ 315,289  

 

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PDF Solutions® Reports Second Quarter 2025 Financial Results

 

PDF SOLUTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(In thousands, except per share amounts)

 

   

Three months ended

   

Six months ended

 
   

June 30,

   

March 31,

   

June 30,

   

June 30,

   

June 30,

 
   

2025 (1)

   

2025 (1)

   

2024

   

2025 (1)

   

2024

 
                                         

Revenues:

                                       

Analytics

  $ 48,822     $ 42,471     $ 38,114     $ 91,293     $ 76,577  

Integrated yield ramp

    2,906       5,307       3,547       8,213       6,394  

Total revenues

    51,728       47,778       41,661       99,506       82,971  
                                         

Costs and Expenses:

                                       

Costs of revenues

    14,886       12,955       12,230       27,841       25,759  

Research and development

    14,913       14,628       12,649       29,541       25,633  

Selling, general, and administrative

    19,744       23,372       16,259       43,116       32,757  

Amortization of acquired intangible assets

    1,068       378       259       1,446       518  

Income (loss) from operations

    1,117       (3,555 )     264       (2,438 )     (1,696 )

Interest expense

    (1,242 )     (311 )           (1,553 )      

Interest income and other, net

    196       870       1,479       1,066       3,171  

Income (loss) before income tax benefit (expense)

    71       (2,996 )     1,743       (2,925 )     1,475  

Income tax benefit (expense)

    1,075       (36 )     (38 )     1,039       (163 )

Net income (loss)

  $ 1,146     $ (3,032 )   $ 1,705     $ (1,886 )   $ 1,312  
                                         

Net income (loss) per share:

                                       

Basic

  $ 0.03     $ (0.08 )   $ 0.04     $ (0.05 )   $ 0.03  

Diluted

  $ 0.03     $ (0.08 )   $ 0.04     $ (0.05 )   $ 0.03  
                                         

Weighted average common shares used to calculate net income (loss) per share:

                                       

Basic

    39,148       39,088       38,619       39,118       38,456  

Diluted

    39,260       39,088       39,132       39,118       38,989  

 

(1)

Analytics Revenue includes revenue from SecureWise LLC, a wholly owned subsidiary we acquired in March 2025.

 

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PDF Solutions® Reports Second Quarter 2025 Financial Results

 

PDF SOLUTIONS, INC.

RECONCILIATION OF GAAP GROSS MARGIN TO NON-GAAP GROSS MARGIN (UNAUDITED)

(In thousands)

 

   

Three months ended

   

Six months ended

 
   

June 30,

   

March 31,

   

June 30,

   

June 30,

   

June 30,

 
   

2025

   

2025

   

2024

   

2025

   

2024

 
                                         

GAAP

                                       

Total revenues

  $ 51,728     $ 47,778     $ 41,661     $ 99,506     $ 82,971  

Costs of revenues

    14,886       12,955       12,230       27,841       25,759  

GAAP gross profit

  $ 36,842     $ 34,823     $ 29,431     $ 71,665     $ 57,212  

GAAP gross margin

    71 %     73 %     71 %     72 %     69 %
                                         

Non-GAAP

                                       

GAAP gross profit

  $ 36,842     $ 34,823     $ 29,431     $ 71,665     $ 57,212  

Adjustments to reconcile GAAP to non-GAAP gross margin:

                                       

Stock-based compensation expense

    1,257       1,342       1,185       2,599       2,385  

Amortization of acquired technology

    998       678       584       1,676       1,168  

Non-GAAP gross profit

  $ 39,097     $ 36,843     $ 31,200     $ 75,940     $ 60,765  

Non-GAAP gross margin

    76 %     77 %     75 %     76 %     73 %

 

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PDF Solutions® Reports Second Quarter 2025 Financial Results

 

PDF SOLUTIONS, INC.

RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (UNAUDITED)

(In thousands, except per share amounts)

 

   

Three months ended

   

Six months ended

 
   

June 30,

   

March 31,

   

June 30,

   

June 30,

   

June 30,

 
   

2025

   

2025

   

2024

   

2025

   

2024

 
                                         

GAAP net income (loss)

  $ 1,146     $ (3,032 )   $ 1,705     $ (1,886 )   $ 1,312  

Adjustments to reconcile GAAP net income (loss) to non-GAAP net income:

                                       

Stock-based compensation expense

    6,199       6,596       5,700       12,795       11,810  

Amortization of acquired technology under costs of revenues

    998       678       584       1,676       1,168  

Amortization of other acquired intangible assets

    1,068       378       259       1,446       518  

Expenses for certain legal proceedings (1)

    112       115             227        

Non-recurring legal, finance, integration and other costs

    159       4,345             4,504        

Recovery from previously written-off property and equipment

    (663 )                 (663 )      

Amortization of debt issuance costs

    71       5             76        

Tax impact of valuation allowance for deferred tax assets and reconciling items (2)

    (1,789 )     (970 )     (1,159 )     (2,759 )     (1,972 )

Non-GAAP net income

  $ 7,301     $ 8,115     $ 7,089     $ 15,416     $ 12,836  
                                         

GAAP net income (loss) per diluted share

  $ 0.03     $ (0.08 )   $ 0.04     $ (0.05 )   $ 0.03  

Non-GAAP net income per diluted share

  $ 0.19     $ 0.21     $ 0.18     $ 0.39     $ 0.33  
                                         

Weighted average common shares used in GAAP net income (loss) per diluted share calculation

    39,260       39,088       39,132       39,118       38,989  

Weighted average common shares used in non-GAAP net income per diluted share calculation

    39,260       39,285       39,132       39,273       38,989  

 


(1)

Represents legal costs and expenses related to certain litigation and an arbitration proceeding, which are expected to continue until these matters are resolved.

(2)

The difference between the GAAP and non-GAAP income tax provisions is primarily due to the valuation allowance on a GAAP basis and non-GAAP adjustments. For example, on a GAAP basis, the Company does not receive a deferred tax benefit for foreign tax credits or research and development credits after the valuation allowance. The Company’s non-GAAP tax rate and resulting non-GAAP tax expense is not calculated with a full U.S. federal or state valuation allowance due to the Company’s cumulative non-GAAP income and management’s conclusion that it is more likely than not to utilize its net deferred tax assets (DTAs). Each reporting period, management evaluates the need for a valuation allowance and may place a valuation allowance against its U.S. net DTAs 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 U.S. DTAs on a non-GAAP basis.

 

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