Core Viewpoint - PDF Solutions, Inc. has announced the acquisition of secureWISE, LLC, a leading secure remote connectivity solution in the semiconductor manufacturing equipment industry, for $130 million, which is expected to enhance its data analytics capabilities and collaboration within the semiconductor ecosystem [1][7][9]. Company Overview - PDF Solutions provides comprehensive data solutions aimed at improving yield, quality, and operational efficiency in the semiconductor and electronics industry [13]. - The company has a global presence with operations in North America, Europe, and Asia, and serves Fortune 500 companies [14][15]. Acquisition Details - The acquisition of secureWISE is valued at $130 million, funded through cash on hand and $70 million in new bank debt, and is expected to close in the first quarter of 2025 [7][9]. - secureWISE is widely used in the semiconductor industry, with applications built on its network to deliver equipment analytics [2][5]. Industry Context - The semiconductor industry is increasingly distributed, necessitating secure collaboration and integration among various stakeholders [4]. - secureWISE is installed in over 90% of the world's 300mm semiconductor fabs, highlighting its significance in the industry [17]. Expected Benefits - The acquisition is anticipated to accelerate the ability of equipment manufacturers to derive value from equipment data by integrating with PDF Solutions' Exensio analytics software [5][6]. - It will enhance the capabilities of PDF Solutions' secure DEX OSAT network, facilitating collaboration among equipment makers, fab operators, and fabless companies [6]. Financial Outlook - Assuming the acquisition closes as planned, PDF Solutions expects a revenue growth rate of 21% to 23% year-over-year for 2025, with a target operating margin of 20% [9].

Financial Data and Key Metrics Changes - For Q4 2024, total revenues reached $50.1 million, representing a 22% year-over-year growth, exceeding the long-term growth target [20] - Full-year 2024 total revenues were $179.5 million, an 8% increase from $165.8 million in 2023, with significant growth occurring in the second half of the year [20][21] - Gross margin for Q4 was 72%, while the full-year gross margin was 74%, moving closer to the target model of 75% [24][27] Business Line Data and Key Metrics Changes - Analytics revenue grew 22% in Q4 compared to the same period last year and accounted for 96% of total revenue for the quarter [20][22] - The DFI eProbe systems saw strong momentum, with successful conversions from evaluations to sales for major semiconductor companies [21][22] - Exensio modules, including process control and ML ops, are expected to drive most bookings in 2025 [15][28] Market Data and Key Metrics Changes - Customers in advanced logic, high bandwidth memory, and advanced packaging are investing, while other sectors exhibit a more cautious outlook [12][13] - The semiconductor industry is projected to experience mixed growth, with total revenues expected to grow at a rate approaching 15% year-over-year [17][27] Company Strategy and Development Direction - The company aims to build upon accomplishments in 2024, expanding applications for the eProbe in advanced logic and DRAM [13][28] - The strategy includes a shift towards a model where customers can purchase machines and optionally subscribe to application services and software [14][66] - The company remains committed to a long-term target model of 20% year-over-year revenue growth, 75% gross margin, and 20% operating margin [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth returning in the second half of 2024 and highlighted customer interest in products and solutions [12][21] - The outlook for 2025 reflects both short-term weaknesses in the semiconductor industry and strengths in the company's pipeline, driven by macro trends such as distributed manufacturing and AI [27][28] Other Important Information - The company reported positive operating cash flow of approximately $10 million and spent about $18 million on CapEx related to the DFI ecosystem [26] - The accounts receivable balance was elevated due to timing and billing, but management expressed confidence in collections [60][62] Q&A Session Summary Question: Can you provide more details on the eProbe pipeline? - The eProbe sales will include both repeat sales to existing customers and new sales to new customers, with a focus on advanced logic and DRAM applications [35][36] Question: What is the status of the backlog? - The backlog decreased from $239 million in Q3 to $221 million, attributed to the nature of the new sales model [34][39] Question: How is customer adoption of model ops impacting growth? - Customer receptivity to model ops has been high, with ongoing pilots expected to contribute to business growth in 2025 [52][53] Question: What is the impact of elevated accounts receivable on cash flow? - The elevated accounts receivable is a matter of timing and billing, with management confident in the progress of collections [60][62] Question: How are management changes at key customers affecting business? - Management changes at customers have not significantly impacted business, as the company has diversified its customer base [72][76] Question: Is there increased activity in advanced packaging due to market conditions? - The company is seeing increased activity in advanced packaging, particularly from leading-edge customers who are relying more on OSAT partners [80][82] Question: Are there opportunities in HBM DRAM with Exensio? - The company is starting to penetrate HBM DRAM accounts, particularly through the eProbe, which has reintroduced the company to this market segment [87][89]

Financial Data and Key Metrics Changes - For Q4 2024, total revenues reached $50.1 million, representing a 22% year-over-year growth, exceeding the long-term growth target [20] - Full-year 2024 total revenues were $179.5 million, an 8% increase from $165.8 million in 2023, with significant growth occurring in the second half of the year [20][21] - Gross margin for Q4 was 72%, while the full-year gross margin was 74%, moving closer to the target model of 75% [24] Business Line Data and Key Metrics Changes - Analytics revenue grew 22% in Q4 compared to the same period last year and accounted for 96% of total revenue for the quarter [20][22] - The DFI eProbe systems showed strong momentum, with successful conversions from evaluations to sales for leading-edge customers [21] - Exensio modules, including process control and ML ops, are expected to drive most bookings in 2025 [15] Market Data and Key Metrics Changes - Customers in advanced logic, high bandwidth memory, and advanced packaging are investing, while other sectors exhibit a more cautious outlook [12][13] - The semiconductor industry is projected to experience mixed growth, with total revenues expected to grow at a rate approaching 15% year-over-year [17] Company Strategy and Development Direction - The company aims to expand applications for the eProbe in advanced logic and DRAM, anticipating shipment of over four machines in 2025 [14][28] - The strategy includes a shift towards a model where customers can purchase machines and optionally subscribe to application services and software [66] - The company is committed to achieving a long-term target model of 20% year-over-year revenue growth, 75% gross margin, and 20% operating margin [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth returning in the second half of 2024 and highlighted customer interest in products and solutions [12] - The outlook for 2025 reflects both short-term weaknesses in the semiconductor industry and a strong pipeline driven by macro trends such as distributed manufacturing and AI [27][28] - Management noted that while some customers are cautious, others are accelerating investments, indicating a diverse customer base [73] Other Important Information - The company reported positive operating cash flow of approximately $10 million and spent about $18 million on CapEx related to the DFI ecosystem [26] - The accounts receivable balance was elevated due to timing and billing, but management is confident in collections [60][62] Q&A Session Summary Question: Can you provide more color on the eProbe pipeline? - The eProbe sales will include both repeat sales to existing customers and new sales to new customers, with a focus on advanced logic and DRAM applications [35] Question: What is the status of the backlog? - The backlog decreased from $239 million in Q3 to $221 million, attributed to the nature of the new machine sales model [34][39] Question: How has customer receptivity to model ops been? - Customer receptivity has been high, with ongoing pilots and increased sales and marketing efforts related to model ops and guided analytics [52][53] Question: What is the impact of elevated accounts receivable on cash flow? - The elevated accounts receivable is a matter of timing and billing, with no significant concerns regarding collections [60][62] Question: How will the new sales model for DFI work? - The new model allows customers to take title of the machine while subscribing to software and application services, impacting accounts receivable [66][67] Question: Are management changes at key customers affecting business? - There is no significant impact from management changes; the business remains diverse, reducing dependency on any single customer [73][79] Question: Is there increased activity in advanced packaging? - Yes, there has been increased activity in advanced packaging, driven by the complexity of new assembly technologies [80][82] Question: Are there opportunities in HBM DRAM with Exensio? - The company is starting to penetrate HBM DRAM accounts, particularly through the eProbe, which has opened new opportunities [87][89]

PDF Solutions (PDFS) came out with quarterly earnings of $0.25 per share, beating the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.17%. A quarter ago, it was expected that this provider of software and services for semiconductor makers would post earnings of $0.21 per share when it actually produced earnings of $0.25, delivering a surprise of ...

Core Insights - PDF Solutions, Inc. reported strong financial results for Q4 2024, with total revenues reaching $50.1 million, a 22% increase compared to Q4 2023 [2][8] - The company anticipates a revenue growth rate of approximately 15% year-over-year for 2025, reflecting positive customer engagement and successful product evaluations [7] Financial Performance - Total revenues for Q4 2024 were $50.1 million, up from $46.4 million in Q3 2024 and $41.1 million in Q4 2023 [2] - Analytics revenue for Q4 2024 was $47.9 million, compared to $44.8 million in Q3 2024 and $39.1 million in Q4 2023 [2] - Integrated Yield Ramp revenue for Q4 2024 was $2.2 million, an increase from $1.7 million in Q3 2024 and $2.0 million in Q4 2023 [2] - Full year revenues for 2024 were $179.5 million, an 8% increase from $165.8 million in 2023 [2] Profitability Metrics - GAAP gross margin for Q4 2024 was 68%, down from 73% in Q3 2024 but consistent with Q4 2023 [3] - Non-GAAP gross margin for Q4 2024 was 72%, compared to 77% in Q3 2024 and 72% in Q4 2023 [3] - GAAP net income for Q4 2024 was $0.5 million, or $0.01 per diluted share, down from $2.2 million, or $0.06 per diluted share, in Q3 2024 [4] - Non-GAAP net income for Q4 2024 was $9.9 million, or $0.25 per diluted share, unchanged from Q3 2024 but up from $5.7 million, or $0.15 per diluted share, in Q4 2023 [5] Cash Position - As of December 31, 2024, cash, cash equivalents, and short-term investments totaled $114.9 million [6] Backlog and Future Outlook - The company reported a backlog of $221.4 million as of December 31, 2024, indicating strong future revenue potential [8] - CEO John Kibarian highlighted successful customer engagements and product evaluations, contributing to the optimistic revenue growth outlook for 2025 [7]

Revenue Performance - Q4 2024 total revenues reached $50.1 million, an increase of 8% compared to Q3 2024 and up 22% year-over-year from Q4 2023[4] - Full year 2024 total revenues were $179.5 million, representing an 8% increase over 2023[6] - Q4 2024 analytics revenue was $47.9 million, up 7% from Q3 2024 and up 22% from Q4 2023[4] - Full year 2024 analytics revenue totaled $169.3 million, an 11% increase compared to 2023[6] - Integrated yield ramp revenue for Q4 2024 was $2.2 million, a 30% increase over Q3 2024 and an 8% increase over Q4 2023[4] Profitability Metrics - Q4 2024 GAAP diluted EPS was $0.01, while non-GAAP diluted EPS was $0.25[3] - GAAP net income for 2024 was $4,057 thousand, an increase from $3,105 thousand in 2023, compared to a loss of $3,429 thousand in 2022[17] - Non-GAAP net income for 2024 reached $32,617 thousand, up from $28,470 thousand in 2023, and $22,924 thousand in 2022, reflecting a growth of 14.8% year-over-year[17] - GAAP net income per diluted share improved to $0.10 in 2024 from $0.08 in 2023, while non-GAAP net income per diluted share increased to $0.84 from $0.73[17] Cost Structure - Total cost of revenue on a GAAP basis for 2024 was $54,144 thousand, compared to $51,749 thousand in 2023, marking a 4.6% increase[19] - Non-GAAP cost of revenue for 2024 was $46,722 thousand, slightly up from $45,314 thousand in 2023[19] - Research and development expenses on a GAAP basis for 2024 totaled $53,566 thousand, an increase from $50,736 thousand in 2023[19] - Non-GAAP research and development expenses for 2024 were $44,608 thousand, compared to $43,025 thousand in 2023[19] - Selling, general, and administrative expenses on a GAAP basis for 2024 were $69,924 thousand, up from $62,216 thousand in 2023[19] - Non-GAAP selling, general, and administrative expenses for 2024 were $57,913 thousand, compared to $49,803 thousand in 2023[19] Cash Flow and Expenditures - Operating cash flow for Q4 2024 was $1.6 million, down from $9.3 million in Q3 2024[7] - Cash used for capital expenditures in 2024 was $17.8 million, compared to $11.3 million in 2023[8] Taxation - The effective tax rate expense for 2024 was 38%, an increase from 36% in 2023[8] Non-Recurring Costs - The company incurred $940 thousand in non-recurring legal, tax, and accounting service-related costs in 2024, compared to $209 thousand in 2023[19]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for PDF Solutions, driven by higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - The earnings report is expected on February 13, 2025, with an anticipated EPS of $0.24, reflecting a +60% year-over-year change, and revenues projected at $49.4 million, up 20.1% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for PDF Solutions is lower than the consensus estimate, resulting in an Earnings ESP of -2.13%, indicating a bearish sentiment among analysts [10]. Historical Performance - In the last reported quarter, PDF Solutions exceeded the expected EPS of $0.21 by delivering $0.25, resulting in a +19.05% surprise. Over the last four quarters, the company has beaten consensus EPS estimates twice [12][13]. Overall Assessment - Given the current Zacks Rank of 4, the combination of a negative Earnings ESP and lower rank suggests that PDF Solutions may not be a strong candidate for an earnings beat [11][16].

Core Viewpoint - PDF Solutions, Inc. will announce its fourth quarter and fiscal year 2024 financial results on February 13, 2025, with a live teleconference hosted by the CEO and CFO to discuss the results [1]. Group 1: Financial Results Announcement - The financial results will be released after market close on February 13, 2025 [1]. - A live teleconference will take place at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time on the same day [1]. Group 2: Participation Details - Analysts and investors are encouraged to pre-register for the live call to receive dial-in information and a unique passcode [2]. - Participants are advised to join the call ten minutes early [2]. Group 3: Webcast Information - The teleconference will be available via webcast on the company's website [3]. - A replay of the conference call will be accessible on the investor relations website after the call [3]. Group 4: Company Overview - PDF Solutions provides data solutions aimed at improving yield, quality, and operational efficiency in the semiconductor and electronics industries [4]. - The company's products are utilized by Fortune 500 companies to achieve smart manufacturing goals through data collection and advanced analytics [4]. - Founded in 1991, PDF Solutions is headquartered in Santa Clara, California, with operations in North America, Europe, and Asia [5].

SANTA CLARA, Calif., Dec. 02, 2024 (GLOBE NEWSWIRE) -- PDF Solutions, Inc. (Nasdaq: PDFS), a leading provider of comprehensive data solutions for the semiconductor ecosystem, today announces the list of industry leaders speaking at its AI Executive Conference to be held on December 12th, 2024, in San Francisco, CA. This event features keynotes, presentations, panels and demonstrations offering insights into the power of AI to transform semiconductor design and manufacturing. It includes talks on the state o ...

PDF Solutions (NASDAQ: PDFS ), a provider of data solutions to the semiconductor industry, was stuck in more ways than one. Sales were flat and the stock itself struggled to find a direction by repeatedly going up and down. While that may not beWelcome to my author's site. As an avid follower of SeekingAlpha, I take great interest in articles posted as the subject matter is often something that appeals to me. However, I will sometimes encounter an article that I might not agree with. My purpose is to presen ...