PDF Solutions(PDFS) - 2025 Q1 - Quarterly Results

Q1 2025 Management Report Q1 2025 Results PDF Solutions reported Q1 2025 total revenues of $47.8 million, a 5% sequential decrease but 16% year-over-year increase, with lower Analytics revenue offset by a 146% surge in Integrated yield ramp revenue Overview Q1 2025 total revenues reached $47.8 million, with Analytics revenue down 11% and Integrated yield ramp revenue up 146%, resulting in a GAAP diluted loss per share of ($0.08) and non-GAAP diluted EPS of $0.21 Q1 2025 Key Financial Metrics (in millions) | Metric | Value | | :--- | :--- | | Total Revenues | $47.8 | | GAAP Gross Margin | 73% | | Non-GAAP Gross Margin | 77% | | GAAP Diluted EPS | ($0.08) | | Non-GAAP Diluted EPS | $0.21 | | Operating Cash Flow | $8.6 | | Cash Used for Capital Expenditures | $8.2 | - Total Revenues: $47.8 million, down 5% from Q4 2024 and up 16% from Q1 2024[8] - Analytics Revenue: $42.5 million, down 11% from Q4 2024 and up 10% from Q1 2024[8] - Integrated Yield Ramp Revenue: $5.3 million, up 146% from Q4 2024 and up 86% from Q1 2024[8] Key Financial & Operating Metrics Q1 2025 revenues decreased to $47.8 million, while non-GAAP gross margin improved to 77%; outstanding debt reached $68.7 million, and operating cash flow significantly improved to $8.6 million Quarterly Financial & Operating Metrics (in thousands) | Metric | Q1'25 | Q4'24 | Q1'24 | | :--- | :--- | :--- | :--- | | Revenues | $47,778 | $50,085 | $41,310 | | GAAP Gross Margin | 73% | 68% | 67% | | Non-GAAP Gross Margin | 77% | 72% | 72% | | Outstanding Debt | $68,656 | $— | $— | | Operating Cash Flow | $8,640 | $1,606 | ($1,862) | | Cash Used for Capital Expenditures (CAPEX) | $8,203 | $5,847 | $2,023 | Revenue by Geographic Area Q1 2025 revenue was primarily from the United States (38%) and Japan (25%), with China's contribution nearly doubling to 17% while 'Rest of the world' decreased to 17% Quarterly Revenue by Geographic Area (in thousands) | Region | Q1'25 Revenue | % of Total | Q4'24 Revenue | % of Total | | :--- | :--- | :--- | :--- | :--- | | United States | $18,228 | 38% | $16,320 | 33% | | Japan | $11,736 | 25% | $11,932 | 24% | | China | $8,043 | 17% | $4,576 | 9% | | Taiwan | $1,494 | 3% | $1,150 | 2% | | Rest of the world | $8,277 | 17% | $16,107 | 32% | | Total revenues | $47,778 | 100% | $50,085 | 100% | Q1 2025 Non-GAAP Results & Reconciliations Q1 2025 non-GAAP results reconcile a GAAP net loss of ($3.0 million) to a non-GAAP net income of $8.1 million, primarily by excluding $6.6 million in stock-based compensation and $4.3 million in non-recurring costs Explanation of Non-GAAP Financial Measures Management uses non-GAAP measures to evaluate profitability and performance, excluding non-cash or non-recurring items like stock-based compensation and amortization of acquired intangibles - Non-GAAP measures are used by management to provide supplemental information on ongoing operations by excluding expenses that do not have a current effect on the future uses of cash or impact revenue generation[13] - Key Exclusions from GAAP: - Stock-based compensation expense[13] - Amortization of acquired technology and other intangible assets[13] - Amortization of debt issuance costs[13] - Non-recurring items such as certain legal proceedings and integration costs[13] - Related income tax effects and valuation allowance adjustments[13] Reconciliation of GAAP to Non-GAAP Net Income Q1 2025 GAAP net loss of ($3.0 million) was reconciled to a non-GAAP net income of $8.1 million, primarily by adding back $6.6 million in stock-based compensation and $4.3 million in non-recurring costs Q1 2025 GAAP to Non-GAAP Net Income Reconciliation (in thousands) | Description | Amount | | :--- | :--- | | GAAP net income (loss) | ($3,032) | | Stock-based compensation expense | $6,596 | | Amortization of acquired technology | $678 | | Amortization of other acquired intangible assets | $378 | | Non-recurring legal, finance, integration and other costs | $4,345 | | Other adjustments | $150 | | Non-GAAP net income | $8,115 | Q1 2025 GAAP vs. Non-GAAP EPS | Metric | Value | | :--- | :--- | | GAAP net income (loss) per diluted share | ($0.08) | | Non-GAAP net income per diluted share | $0.21 | Reconciliation of GAAP to Non-GAAP Spending by Function Q1 2025 functional spending was adjusted from GAAP to non-GAAP by removing stock-based compensation, with SG&A expenses seeing the largest reduction from $23.4 million to $16.1 million Q1 2025 GAAP to Non-GAAP Spending Reconciliation (in thousands) | Spending by Function | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Cost of Revenue | $12,955 | ($2,020) | $10,935 | | Research & Development | $14,628 | ($2,419) | $12,209 | | Selling, General, & Administrative | $23,372 | ($7,295) | $16,077 | - Primary Adjustments to SG&A: - Stock-based compensation expense: ($2,835) thousand[21] - Non-recurring legal, finance, integration and other costs: ($4,345) thousand[21] - Expenses for certain legal proceedings: ($115) thousand[21]