Exhibit 99.1

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) 516-0237		Tel: (408) 938-6491
Email: [email protected]		Email: [email protected]

PDF Solutions® Reports Second Quarter 2024 Results

Santa Clara, CA, August 8, 2024, – 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, 2024.

Financial Highlights of Second Quarter 2024

●

Analytics revenues of $38.1 million, up 3% over last year’s comparable quarter

●

Quarterly revenues of $41.7 million, flat compared to last year’s comparable quarter

●

GAAP gross margin of 71% and Non-GAAP gross margin of 75%

●

GAAP diluted earnings per share (EPS) of $0.04 and non-GAAP diluted EPS of $0.18

●

Backlog of $243.2 million as of June 30, 2024

Total revenues for the second quarter of 2024 were $41.7 million, compared to $41.3 million for the first quarter of 2024 and $41.6 million for the second quarter of 2023. Analytics revenue for the second quarter of 2024 was $38.1 million, compared to $38.5 million for the first quarter of 2024 and $37.1 million for the second quarter of 2023. Integrated Yield Ramp revenue for the second quarter of 2024 was $3.5 million, compared to $2.8 million for the first quarter of 2024 and $4.5 million for the second quarter of 2023.

GAAP gross margin for the second quarter of 2024 was 71%, compared to 67% for the first quarter of 2024 and 70% for the second quarter of 2023.

Non-GAAP gross margin for the second quarter of 2024 was 75%, compared to 72% for the first quarter of 2024 and 74% for the second quarter of 2023.

On a GAAP basis, net income for the second quarter of 2024 was $1.7 million, or $0.04 per diluted share, compared to a net loss of $0.4 million, or ($0.01) per diluted share, for the first quarter of 2024, and a net income of $6.8 million, or $0.17 per diluted share, for the second quarter of 2023.

Non-GAAP net income for the second quarter of 2024 was $7.1 million, or $0.18 per diluted share, compared to a non-GAAP net income of $5.7 million, or $0.15 per diluted share, for the first quarter of 2024, and non-GAAP net income of $7.5 million, or $0.19 per diluted share, for the second quarter of 2023.

Cash, cash equivalents and short-term investments as of June 30, 2024, were $117.9 million.

Financial Outlook

“We are pleased with the ongoing progress we are making with our customers. We reiterate our expectation that revenue for the second half of the year will grow by 20% over the comparable period of the prior year.” said John Kibarian, CEO and President.

PDF Solutions® Reports Second Quarter 2024 Results

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 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, amortizaton of other acquired intangible assets, and the effects of certain non-recurring items, such as expenses related to an arbitration proceeding for a disputed contract with a customer, acquisition-related costs, 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 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) 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 condensed consolidated financial statements presented below.

Forward-Looking Statements

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 about total revenue growth for the second half of 2024, 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, but are not limited to, risks associated with: expectations about the effectiveness of our business and technology strategies; expectations and integration concerns regarding recent and future acquisitions; current semiconductor industry trends; expectations of 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 continuing impact of global economic trends and rising global inflation and increased interest rates; supply chain disruptions; the success of the Company’s strategic growth opportunities and partnerships; customers’ production volumes under contracts that provide Gainshare royalties; possible impacts from the evolving trade regulatory environment and geopolitical tensions; our ability to obtain additional financing if needed; and other risks set forth 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, 2023, 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. We have not filed our Form 10-Q for the quarter ended June 30, 2024. 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-Q.

About PDF Solutions

PDF Solutions (Nasdaq: PDFS) provides comprehensive data solutions designed to empower organizations across the semiconductor and electronics 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 and electronics 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.

PDF Solutions® Reports Second Quarter 2024 Results

PDF SOLUTIONS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In thousands)


	June 30,		December 31,
	2024		2023

ASSETS
Current assets:
Cash and cash equivalents	$	91,987	$	98,978
Short-term investments		25,888		36,544
Accounts receivable, net		56,410		44,904
Prepaid expenses and other current assets		19,007		17,422
Total current assets		193,292		197,848
Property and equipment, net		40,707		37,338
Operating lease right-of-use assets, net		4,424		4,926
Goodwill		14,996		15,029
Intangible assets, net		13,897		15,620
Deferred tax assets, net		145		157
Other non-current assets		30,538		19,218
Total assets	$	297,999	$	290,136

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	4,219	$	2,561
Accrued compensation and related benefits		11,468		14,800
Accrued and other current liabilities		5,994		4,633
Operating lease liabilities ‒ current portion		1,609		1,529
Deferred revenues ‒ current portion		31,662		25,750
Billings in excess of recognized revenues		512		1,570
Total current liabilities		55,464		50,843
Long-term income taxes		2,668		2,972
Non-current operating lease liabilities		4,003		4,657
Other non-current liabilities		3,711		2,718
Total liabilities		65,846		61,190

Stockholders’ equity:
Common stock and additional paid-in capital		487,225		473,301
Treasury stock at cost		(155,084)		(143,923)
Accumulated deficit		(96,733)		(98,045)
Accumulated other comprehensive loss		(3,255)		(2,387)
Total stockholders’ equity		232,153		228,946
Total liabilities and stockholders’ equity	$	297,999	$	290,136

PDF Solutions® Reports Second Quarter 2024 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,
	2024		2024		2023		2024		2023

Revenues:
Analytics	$	38,114	$	38,463	$	37,134	$	76,577	$	73,460
Integrated yield ramp		3,547		2,847		4,467		6,394		8,900
Total revenues		41,661		41,310		41,601		82,971		82,360

Costs and Expenses:
Costs of revenues		12,230		13,529		12,369		25,759		24,273
Research and development		12,649		12,984		12,264		25,633		25,315
Selling, general, and administrative		16,259		16,498		14,766		32,757		30,411
Amortization of acquired intangible assets		259		259		326		518		651
Interest and other expense (income), net		(1,479)		(1,692)		(1,071)		(3,171)		(1,982)
Income (loss) before income tax benefit (expense)		1,743		(268)		2,947		1,475		3,692
Income tax benefit (expense)		(38)		(125)		3,888		(163)		3,498
Net income (loss)	$	1,705	$	(393)	$	6,835	$	1,312	$	7,190

Net income (loss) per share:
Basic	$	0.04	$	(0.01)	$	0.18	$	0.03	$	0.19
Diluted	$	0.04	$	(0.01)	$	0.17	$	0.03	$	0.18

Weighted average common shares used to calculate net income (loss) per share:
Basic		38,619		38,500		37,859		38,456		37,799
Diluted		39,132		38,500		39,076		38,989		38,968

PDF Solutions® Reports Second Quarter 2024 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,
	2024			2024			2023			2024			2023

GAAP
Total revenues	$	41,661		$	41,310		$	41,601		$	82,971		$	82,360
Costs of revenues		12,230			13,529			12,369			25,759			24,273
GAAP gross profit	$	29,431		$	27,781		$	29,232		$	57,212		$	58,087
GAAP gross margin		71	%		67	%		70	%		69	%		71	%

Non-GAAP
GAAP gross profit	$	29,431		$	27,781		$	29,232		$	57,212		$	58,087
Adjustments to reconcile GAAP to non-GAAP gross margin:
Stock-based compensation expense		1,185			1,200			938			2,385			1,902
Amortization of acquired technology		584			584			553			1,168			1,106
Non-GAAP gross profit	$	31,200		$	29,565		$	30,723		$	60,765		$	61,095
Non-GAAP gross margin		75	%		72	%		74	%		73	%		74	%

PDF Solutions® Reports Second Quarter 2024 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,
	2024		2024		2023		2024		2023

GAAP net income (loss)	$	1,705	$	(393)	$	6,835	$	1,312	$	7,190
Adjustments to reconcile GAAP net income (loss) to non-GAAP net income:
Stock-based compensation expense		5,700		6,110		4,678		11,810		9,562
Amortization of acquired technology under costs of revenues		584		584		553		1,168		1,106
Amortization of other acquired intangible assets		259		259		326		518		651
Expenses of arbitration (1)		—		—		166		—		2,299
Acquisition-related costs (2)		—		—		176		—		176
Tax impact of valuation allowance for deferred tax assets and reconciling items (3)		(1,159)		(813)		(5,238)		(1,972)		(6,218)
Non-GAAP net income	$	7,089	$	5,747	$	7,496	$	12,836	$	14,766

GAAP net income (loss) per diluted share	$	0.04	$	(0.01)	$	0.17	$	0.03	$	0.18
Non-GAAP net income per diluted share	$	0.18	$	0.15	$	0.19	$	0.33	$	0.38

Weighted average common shares used in GAAP net income (loss) per diluted share calculation		39,132		38,500		39,076		38,989		38,968
Weighted average common shares used in non-GAAP net income per diluted share calculation		39,132		39,053		39,076		38,989		38,968

(1)	Represents expenses related to an arbitration proceeding over a disputed customer contract, which expenses are expected to continue until the arbitration is resolved.

(2)

Acquisition-related costs are incremental expenses related to the business or asset acquisition transaction(s). These expenses may include consulting, legal and other fees. For the three and six months ended June 30, 2023, the charges were related to the acquisition of Lantern Machinery Analytics, Inc.

(3)

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.