- Record total full year 2021 revenues of $111.1 million, up 26% year over year
- Analytics revenue accounted for 84% of total 2021 full year revenues
- Bookings for full year 2021 up more than 40% compared to full year 2020 bookings
- Backlog of $179.5 million as of December 31, 2021, up 66% compared to backlog as of December 31, 2020
- GAAP Gross Margin of 61% for the fourth quarter of 2021 and 60% for full year 2021
- Non-GAAP Gross Margin of 65% for the fourth quarter of 2021 and 64% for full year 2021
- Cash, cash equivalents, and short-term investments of $140.2 million as of December 31, 2021
- Expect full year 2022 total revenues to grow greater than 20% on a year-over-year basis
SANTA CLARA, Calif. — Tuesday, February 15, 2022 — PDF Solutions, Inc. (Nasdaq: PDFS), a leading provider of comprehensive data solutions for the semiconductor ecosystem, today announced financial results for its fourth quarter and year ended December 31, 2021.
Highlights of Fourth Quarter and Full Year 2021 Financial Results
Total revenues for the fourth quarter of 2021 were $29.9 million, compared to $29.6 million for the third quarter of 2021 and $22.4 million for the fourth quarter of 2020. Analytics revenue for the fourth quarter of 2021 was $27.3 million, compared to $27.2 million for the third quarter of 2021 and $14.5 million for the fourth quarter of 2020. Integrated Yield Ramp revenue for the fourth quarter of 2021 was $2.6 million, compared to $2.4 million for third quarter of 2021 and $7.9 million for the fourth quarter of 2020. Total revenues for the full year 2021 and 2020 were $111.1 million and $88.0 million, respectively.
GAAP gross margin for the fourth quarter of 2021 was 61%, compared to 63% for the third quarter of 2021 and 56% for the fourth quarter of 2020. GAAP gross margin for the full year 2021 and 2020 was 60% and 58%, respectively.
Non-GAAP gross margin for the fourth quarter of 2021 was 65%, compared to 66% for the third quarter of 2021 and 61% for the fourth quarter of 2020. Non-GAAP gross margin for the full year 2021 and 2020 was 64% and 63%, respectively.
On a GAAP basis, net loss for the fourth quarter of 2021 was $7.0 million, or ($0.19) per basic and diluted share, compared to a net loss of $2.4 million, or ($0.06) per basic and diluted share, for the third quarter of 2021, and net loss of $33.4 million, or ($0.91) per basic and diluted share, for the fourth quarter of 2020. On a GAAP basis, net loss for the full year 2021 was $21.5 million, or ($0.58) per basic and diluted share, compared to net loss of $40.4 million, or ($1.17) per basic and diluted share, for the full year 2020.
Non-GAAP net income for the fourth quarter of 2021 was $2.8 million, or $0.07 per diluted share, compared to a non-GAAP net income of $2.4 million, or $0.06 per diluted share, for the third quarter of 2021, and non-GAAP net loss of $1.3 million, or ($0.03) per diluted share, for the fourth quarter of 2020. Non-GAAP net income for the full year 2021 was $3.0 million, or $0.08 per diluted share, compared to non-GAAP net loss of $0.8 million, or ($0.02) per diluted share, for the full year 2020.
Cash, cash equivalents and short-term investments at December 31, 2021 were $140.2 million, compared to $145.3 million at December 31, 2020, a decrease of $5.1 million. Cash provided by operating activities was $0.4 million for the fourth quarter of 2021. Cash provided by operating activities was $4.2 million for the full year 2021.
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 https://www.pdf.com/press-releases following the date of this release.
Fourth Quarter and Full Year Ended 2021 Financial Commentary Available Online
A Management Report reviewing the Company’s fourth quarter and full year 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 income (loss) excludes the effects of certain non-recurring items, expenses related to an arbitration proceeding for a disputed contract with a customer, write-down in value of property and equipment, acquisition-related costs, 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 expenses related to an arbitration proceeding for a disputed contract with a customer 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.
The press release and the planned conference call include forward-looking statements regarding the Company’s future expected business performance and financial results, including expectations 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: continued 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; the impact of inflation; 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 supply and 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; whether we can successfully convert our backlog into revenue; customers’ production volumes under contracts that provide Gainshare royalties; 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. PDF Solutions has not filed its Form 10-K for the year ended December 31, 2021. As a result, all financial results described in this earnings release should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates, that are identified prior to the time we file our Form 10-K.
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 https://www.pdf.com/.
PDF Solutions and the PDF Solutions logo are trademarks or registered trademarks of PDF Solutions, Inc. or its subsidiaries.
Chief Financial Officer
Joe Diaz, Robert Blum, Joe Dorame
Lytham Partners, LLC