Core Viewpoint - PDF Solutions, Inc. reported record financial results for the fourth quarter and full year of 2025, highlighting significant revenue growth and strategic acquisitions to enhance its position in the semiconductor industry [6][9]. Financial Highlights of Fourth Quarter 2025 - Total revenues reached $62.4 million, a 25% increase compared to $50.1 million in the fourth quarter of 2024 [3][8]. - GAAP gross margin was 73%, up from 68% in the fourth quarter of 2024, while non-GAAP gross margin was 77%, compared to 72% in the same period [4][8]. - GAAP operating margin was 6%, an increase from 1% in the fourth quarter of 2024, and non-GAAP operating margin was 24%, up from 18% [5][8]. - GAAP net loss was $48 thousand, or $(0.00) per diluted share, compared to net income of $0.5 million, or $0.01 per diluted share, in the fourth quarter of 2024 [6][8]. - Non-GAAP net income was $12.0 million, or $0.30 per diluted share, compared to $9.9 million, or $0.25 per diluted share, in the fourth quarter of 2024 [7][8]. Financial Highlights of Full Year 2025 - Total revenues for the full year were $219.0 million, a 22% increase from $179.5 million in 2024 [3][8]. - GAAP gross margin for the year was 72%, up from 70% in 2024, while non-GAAP gross margin was 76%, compared to 74% in the previous year [4][8]. - GAAP operating margin for the year was 3%, an increase from 1% in 2024, and non-GAAP operating margin was 21%, up from 17% [5][8]. - GAAP net loss for the year was $0.6 million, or $(0.02) per diluted share, compared to net income of $4.1 million, or $0.10 per diluted share, in 2024 [6][8]. - Non-GAAP net income for the year was $37.2 million, or $0.94 per diluted share, compared to $32.6 million, or $0.84 per diluted share, in 2024 [7][8]. Strategic Developments - The company completed the acquisition of SecureWise LLC, enhancing its secure remote connectivity solutions [8]. - The CEO emphasized the strategic relevance of the PDF Solutions Platform in addressing the complexities of the semiconductor industry, particularly with the adoption of new technologies and faster development cycles [9]. - The company anticipates continued revenue growth in 2026, aligning with its long-term target of 20% annual growth [9]. Revenue Presentation Update - The company updated its revenue presentation to include "Platform" and "Volume-based" categories, reflecting its expanded product and service offerings [14][25]. - Platform revenue includes software licenses, SaaS, and engineering services, while Volume-based revenue includes Cimetrix runtime licenses and secureWISE data [15][25]. Backlog and Future Outlook - The ending backlog was reported at $254 million, indicating strong future revenue potential [8]. - The company aims to leverage its strategic acquisitions and technological advancements to maintain its growth trajectory in the semiconductor ecosystem [9].