PDF Solutions(US:PDFS)2022-08-13 17:13Financial Data and Key Metrics Changes - Total revenue for Q2 2022 was $34.7 million, up 26% year-over-year [17] - Analytics revenue increased by 59% to $31.1 million, representing 90% of total revenue [17] - Gross margins were reported at 69%, consistent with the previous quarter and above 65% from the prior year [22] - EPS improved to $0.11 compared to $0.09 in the prior quarter and a loss of $0.01 a year ago [23] - Ending backlog was $184.4 million, up 33% year-over-year [21] Business Line Data and Key Metrics Changes - Integrated yield ramp revenue was $3.6 million, down from the previous year but up $0.5 million quarter-over-quarter due to higher shipment volumes [19] - Analytics revenue growth was driven by software licenses from Cimetrix and Exensio, with ongoing analytics engagements contributing positively [18] Market Data and Key Metrics Changes - Business in China contributed approximately 13% of overall bookings, with expectations for continued growth in line with the rest of the business [31][33] - The semiconductor industry is experiencing elevated investments in process control and new node bring-up, which is favorable for the company's business [14] Company Strategy and Development Direction - The company aims to be the go-to manufacturing data and analytics platform for the semiconductor electronics ecosystem, focusing on partnerships to extend solutions to new applications [6][8] - Collaborations with companies like SAP and Advantest are intended to enhance integration and drive future revenue growth [11][78] Management's Comments on Operating Environment and Future Outlook - Despite potential recession signals and geopolitical restrictions, strong interest in products and solutions is anticipated to drive bookings growth in the second half of the year [15] - The company expects total revenue growth of approximately 25% for the full year 2022, building on the previous year's performance [20][26] Other Important Information - The company has repurchased approximately $22.5 million of shares in 2022, indicating confidence in cash flows and balance sheet strength [25] - The company is focused on increasing awareness of its products among top customer organizations, which is expected to yield greater revenue impact over the next few years [12] Q&A Session Summary Question: What percent of your overall business does China represent today? - China represented approximately 13% of overall business in Q2, with expectations to grow in line with the rest of the business [31][33] Question: When do you think these partnerships will start to create material revenue? - The first product from the Advantest partnership is already contributing revenue, with expectations for significant growth in the next four quarters [36] Question: Can you provide more color on the sequential drop-off in OpEx? - R&D expenses increased due to merit increases, while SG&A saw a decrease due to one-time savings; overall, revenue growth is expected to exceed total spend growth [39] Question: How is the partnership with IBM progressing? - The integration of Exensio with IBM's SiView is driving business, with ongoing selling opportunities and collaborative efforts with SAP [78]