|Bid||19.79 x 1000|
|Ask||19.83 x 800|
|Day's Range||19.77 - 20.33|
|52 Week Range||8.61 - 26.42|
|Beta (5Y Monthly)||1.50|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 29, 2020 - Nov 02, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||31.75|
PDF Solutions (PDFS) delivered earnings and revenue surprises of -66.67% and -5.69%, respectively, for the quarter ended June 2020. Do the numbers hold clues to what lies ahead for the stock?
Business Highlights * Total revenues of $21.4 million, up 4% over last year’s comparable quarter * Analytics revenue of $15.2 million, up 27% over last year’s comparable quarter * Analytics accounted for 71% of second quarter revenues * GAAP Gross Margin of 58% for the second quarter of 2020 * Non-GAAP Gross Margin of 63% for the second quarter of 2020 * Operating activities generated $5.2 million in cash during the second quarter of 2020 * Cash and cash equivalents of $103.4 million at the end of second quarter of 2020SANTA CLARA, Calif., Aug. 06, 2020 (GLOBE NEWSWIRE) -- PDF Solutions, Inc. (“PDF Solutions” or the “Company”) (NASDAQ: PDFS), a leading provider of differentiated data and analytics solutions to the semiconductor and electronics industries, today announced financial results for its second quarter ended June 30, 2020.Highlights of Second Quarter 2020 Financial ResultsTotal revenues for the second quarter of 2020 were $21.4 million, compared to $21.2 million for the first quarter of 2020 and $20.6 million for the second quarter of 2019. Analytics revenue for the second quarter of 2020 was $15.2 million, compared to $13.2 million for the first quarter of 2020 and $12.0 million for the second quarter of 2019. Integrated Yield Ramp revenue for the second quarter of 2020 was $6.2 million, compared to $7.9 million for the first quarter of 2020 and $8.6 million for the second quarter of 2019.GAAP gross margin for the second quarter of 2020 was 58%, compared to 60% for the first quarter of 2020 and 62% for the second quarter of 2019.Non-GAAP gross margin for the second quarter of 2020 was 63%, compared to 65% for the first quarter of 2020 and 67% for the second quarter of 2019.On a GAAP basis, net loss for the second quarter of 2020 was $3.7 million, or ($0.11) per basic and diluted share, compared to a net loss of $0.5 million, or ($0.02) per basic and diluted share, for the first quarter of 2020, and compared to a net loss of $0.7 million, or ($0.02) per basic and diluted share, for the second quarter of 2019.Non-GAAP net income for the second quarter of 2020 was $0.5 million, or $0.01 per diluted share, compared to a net loss of $0.1 million, or ($0.00) per diluted share, for the first quarter of 2020, and compared to net income of $1.0 million, or $0.03 per diluted share, for the second quarter of 2019.Cash and cash equivalents at June 30, 2020, were $103.4 million, compared to $97.6 million at December 31, 2019, an increase of $5.8 million. Operating activities generated $5.2 million in cash during the second quarter of 2020.Conference CallAs 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.Second Quarter 2020 Financial Commentary Available OnlineA Management Report reviewing the Company’s second quarter of 2020 financial results will be furnished to the SEC 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 net income (loss) excludes the effects of non-recurring items (including restructuring charges and severance payments, and expenses related to an arbitration proceeding for a disputed contract with a customer), 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 and tax impact of the CARES Act. 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) 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 statements planned to be made on the planned conference call regarding the Company’s future expected business performance and financial results and the Company’s recent strategic agreement with Advantest are forward looking and 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 potential impact of the coronavirus (COVID-19) on the semiconductor industry and on the Company’s operations or demand for the Company’s products; the Company’s strategic partnerships; 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, 2019, 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) offers an end-to-end analytics platform that empowers engineers and data scientists across the semiconductor ecosystem to rapidly improve the yield, quality, and profitability of their products. By combining industry-leading data analytics and professional services with exclusive, differentiated product data generated during the manufacturing process, PDF Solutions is delivering on the promise of Industry 4.0 today by transforming how the ecosystem collects, analyzes, and shares data. Key Fortune 500 organizations around the world rely on PDF Solutions to remove the data barriers that encumber and constrain new product introductions and to deliver the machine learning insights that drive efficient and profitable high-volume manufacturing.Headquartered in Santa Clara, California, PDF Solutions also operates worldwide in Canada, China, France, Germany, Italy, Japan, Korea, and Taiwan. For the Company’s latest news and information, visit http://www.pdf.com/.Characterization Vehicle, Design-for-Inspection, DFI, Exensio, 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) June 30, 2020 December 31, 2019 ASSETS Current assets: Cash and cash equivalents $103,441 $97,605 Accounts receivable, net 28,666 40,651 Prepaid expenses and other current assets 8,627 9,320 Total current assets 140,734 147,576 Property and equipment, net 40,412 40,798 Operating lease right-of-use assets, net 7,056 7,609 Goodwill 2,293 2,293 Intangible assets, net 5,586 6,221 Deferred tax assets, net 29,522 25,327 Other non-current assets 8,093 9,720 Total assets $233,696 $239,544 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $2,763 $7,636 Accrued compensation and related benefits 5,285 5,072 Accrued and other current liabilities 1,368 1,665 Operating lease liabilities ‒ current portion 1,880 1,867 Deferred revenues ‒ current portion 10,087 10,639 Billings in excess of recognized revenues 497 1,117 Total current liabilities 21,880 27,996 Long-term income taxes payable 5,264 5,368 Non-current operating lease liabilities 7,033 7,677 Other non-current liabilities 1,814 2,346 Total liabilities 35,991 43,387 Stockholders’ equity: Common stock and additional paid-in-capital $333,162 $325,202 Treasury stock at cost (93,968) (91,695) Accumulated deficit (40,050) (35,870) Accumulated other comprehensive loss (1,439) (1,480) Total stockholders’ equity 197,705 196,157 Total liabilities and stockholders’ equity $233,696 $239,544 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, 2020 2020 2019 (1) 2020 2019 (1) Revenues: Analytics $15,172 $13,248 $11,974 $28,420 $23,408 Integrated yield ramp 6,237 7,910 8,594 14,147 17,701 Total revenues 21,409 21,158 20,568 42,567 41,109 Costs and Expenses: Costs of revenues 8,946 8,487 7,832 17,433 15,700 Research and development 7,754 8,590 7,312 16,344 15,558 Selling, general and administrative 7,737 7,895 6,940 15,632 13,950 Amortization of other acquired intangible assets 174 173 154 347 262 Restructuring charges — — — — 92 Interest and other expense (income), net 150 20 (111) 170 (105) Loss before income taxes (3,352) (4,007) (1,559) (7,359) (4,348) Income tax expense (benefit) 300 (3,479) (849) (3,179) (947) Net loss $(3,652) $(528) $(710) $(4,180) $(3,401) Net loss per share: Basic $(0.11) $(0.02) $(0.02) $(0.13) $(0.10) Diluted $(0.11) $(0.02) $(0.02) $(0.13) $(0.10) Weighted average common shares: Basic 32,886 32,703 32,339 32,795 32,412 Diluted 32,886 32,703 32,339 32,795 32,412 _______________________(1) In the fourth quarter of 2019, in order to improve the transparency of the Company’s revenue reporting, the Company updated its Condensed Consolidated Statements of Comprehensive Loss to change its historical presentation of revenue categories. Previously, the Company presented revenue on two lines: Solutions and Gainshare performance incentives. Included within Solutions, was revenue from software and related revenue, SaaS solutions, Design-for-Inspection (DFI™) licenses, and fixed-price project-based solution implementation services. The previous Gainshare performance incentive category included only revenue from performance incentive programs. The Company now presents revenue in the following categories: Analytics and Integrated Yield Ramp. Integrated Yield Ramp revenue is comprised of all revenue from the Company’s Integrated Yield Ramp services engagements that include performance incentives based on customers’ yield achievement, i.e. both fixed-fees and Gainshare royalty from such engagements. Analytics comprises all other revenue, including from the Company’s licenses and services for Exensio Software, Exensio SaaS, DFI™ and Characterization Vehicle systems that do not include performance incentives based on customers’ yield achievement. This prior period presentation had been reclassified to conform to the new revenue presentation. PDF SOLUTIONS, INC. RECONCILIATION OF GAAP TO NON-GAAP GROSS MARGIN (UNAUDITED) (In thousands) Three months ended Six months ended June 30, March 31, June 30, June 30, June 30, 2020 2020 2019 2020 2019 GAAP Total revenues $21,409 $21,158 $20,568 $42,567 $41,109 Costs of revenues 8,946 8,487 7,832 17,433 15,700 GAAP gross profit $12,463 $12,671 $12,736 $25,134 $25,409 GAAP gross margin 58% 60% 62% 59% 62% Non-GAAP GAAP gross profit $12,463 $12,671 $12,736 $25,134 $25,409 Adjustments to reconcile GAAP to non-GAAP gross margin: Stock-based compensation expense 883 909 799 1,792 1,659 Amortization of acquired technology 143 144 143 287 287 Non-GAAP gross profit $13,489 $13,724 $13,678 $27,213 $27,355 Non-GAAP gross margin 63% 65% 67% 64% 67% PDF SOLUTIONS, INC. RECONCILIATION OF GAAP TO NON-GAAP NET INCOME (LOSS) (UNAUDITED) (In thousands, except per share amounts) Three months ended Six months ended June 30, March 31, June 30, June 30, June 30, 2020 2020 2019 2020 2019 GAAP net loss $(3,652) $(528) $(710) $(4,180) $(3,401) Adjustments to reconcile GAAP net loss to non-GAAP net income (loss): Stock-based compensation expense 2,978 3,368 2,434 6,346 5,910 Amortization of acquired technology 143 144 143 287 287 Amortization of other acquired intangible assets 174 173 154 347 262 Expenses of arbitration (1) 363 101 — 464 — Write-down in value of property and equipment 311 — — 311 — Restructuring charges and severance payments — — — — 92 Tax impact of adjustments 167 (1,143) (993) (976) (1,280) Tax impact of the CARES Act (2) — (2,261) — (2,261) — Non-GAAP net income (loss) $484 $(146) $1,028 $338 $1,870 GAAP net loss per diluted share $(0.11) $(0.02) $(0.02) $(0.13) $(0.10) Non-GAAP net income (loss) per diluted share $0.01 $(0.00) $0.03 $0.01 $0.06 Shares used in diluted shares calculation 33,874 32,703 33,055 33,718 33,038 ______________________(1) Represents the expenses related to an arbitration proceeding over a disputed contract with a customer, which expenses are expected to continue until the arbitration is resolved. (2) Represents the 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. 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 income (loss). Company Contacts: Adnan RazaSonia SegoviaJoe Diaz, Robert Blum, Joe Dorame Chief Financial OfficerIR CoordinatorLytham Partners, LLC Tel: (408) 516-0237Tel: (408) 938-6491Tel: (602) 889-9700 Email: email@example.com Email: firstname.lastname@example.org Email: email@example.com
PDF Solutions (PDFS) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.