PDF Solutions® Reports Third Fiscal Quarter Results

PDF SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share amounts)

	Three months ended							Nine months ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2015		2015		2014		2015		2014

Revenues:
Design-to-silicon-yield solutions	$	17,246	$	14,159	$	10,860	$	49,557	$	38,871
Gainshare performance incentives		6,632		9,051		11,546		24,348		35,231
Total revenues		23,878		23,210		22,406		73,905		74,102

Costs of Design-to-silicon-yield solutions:
Direct costs of Design-to-silicon-yield solutions		10,172		9,888		9,722		28,863		28,273
Impairment of deferred costs		-		-		1,892		-		1,892
Amortization of acquired technology		80		-		-		80		-
Total costs of Design-to-silicon-yield solutions		10,252		9,888		11,614		28,943		30,165
Gross profit		13,626		13,322		10,792		44,962		43,937

Operating expenses:
Research and development		5,173		4,437		3,349		13,698		10,282
Selling, general and administrative		5,665		5,216		4,498		15,336		13,487
Amortization of other acquired intangible assets		89		-		-		89		31
Restructuring charges		-		-		-		-		57
Total operating expenses		10,927		9,653		7,847		29,123		23,857

Income from operations		2,699		3,669		2,945		15,839		20,080
Interest and other income (expense), net		64		52		33		166		(82	)
Income before income taxes		2,763		3,721		2,978		16,005		19,998
Income tax provision		1,269		1,572		1,217		6,395		7,287
Net income	$	1,494	$	2,149	$	1,761	$	9,610	$	12,711

Net income per share:
Basic	$	0.05	$	0.07	$	0.06	$	0.31	$	0.41
Diluted	$	0.05	$	0.07	$	0.05	$	0.30	$	0.40

Weighted average common shares:
Basic		31,516		31,522		30,876		31,458		30,648
Diluted		32,106		32,400		32,079		32,266		31,975