Pdf Solutions, Inc. · NASDAQ:PDFS
Pdf Solutions — Q3 2017 Earnings Presentation
19 slides from Pdf Solutions's earnings presentation, Nov 14, 2017
Slide 1: 2017 Third Quarter Management Report
pbF/SOLUTIONS 2017 Third Quarter Management Report October 26, 2017 (and updated November 10, 2017 with adjustments to Slide 9 and a new Slide 17, as described in the Company’s 8-K filed on November 13, 2017) Statements herein regarding the Company's future expected business performance and financia
Slide 2: Contents
Contents @ 2017 Third Quarter GAAP Results ¢ Overview © Revenue Details & Commentary © Expense Details & Commentary Balance Sheet & Commentary @ $2017 Third Quarter Non-GAAP Results Reconciliation of GAAP to Non-GAAP Net Income © Expense Details & Commentary * Performance Measures & Commentary @ Q4
Slide 3: GAAP Income Statement — Quarterly Trend Through Q3 2017
GAAP Income Statement — Quarterly Trend Through Q3 2017 in thousands (except share amounts, percent of revenue, and EPS) POF Solutions, Inc. Actuals P&L (GAAP) a1-16 02-16 03-16 04-16 a1i7 02-17 93.17 Design to Silicon Yield Solutions 18578 «20,574. 18,552 «19,458 = 19,688 © 16,500 19,229 Gain Share
Slide 4: CFO Commentary — GAAP Income Statement
Q3 2017 CFO Commentary — GAAP Income Statement + Total GAAP revenues were $26.5 million resulting in GAAP net income of $0.6 million and GAAP EPS of $0.02 cents per fully diluted share. * Total GAAP operating income was $0.4 million, resulting in GAAP operating margin of 1.6%. + Fully diluted shares
Slide 5: GAAP Revenue by Geography Q3 2017 & Comparable Quarters
GAAP Revenue by Geography Q3 2017 & Comparable Quarters Q317 Q217 North America Asia Pacific MEMEA ‘NorthAmeria Asia Pacific EMEA Q316 MINorth America Asia Pacific = EMEA par/Soustions 5 /POF Solutions
Slide 6: CFO Commentary — GAAP Revenue & GM Detail
Q3 2017 CFO Commentary — GAAP Revenue & GM Detail * Total GAAP revenues of $26.5 million were $2.2 million higher when compared to the prior quarter. + The top ten customers represented 80% of total revenues. One of these customers contributed revenues 10% or greater. + Solutions revenue consisted o
Slide 7: GAAP Operating Expenses — Quarterly Through Q3 2017
GAAP Operating Expenses — Quarterly Through Q3 2017 in thousands mResearch & Development _m Selling, General, & Administrative 16,000 14,000 12,000 + 10,000 + 8,000 6,000 4,000 2,000 + : Q3-16 Qa-16 quay Q217 Q3.47 por/SOLUTIONS /POF Solutions i
Slide 8: CFO Commentary — GAAP Operating Expenses
Q3 2017 CFO Commentary — GAAP Operating Expenses ¢ Total GAAP Operating Expenses, at $13.7 million, were $0.1 million higher than the prior quarter, and 52% of total revenues, down 4% from the prior quarter. * GAAP R&D expenses totaled $7.9 million, $0.6 million higher than the prior quarter. « GAAP
Slide 9: GAAP Balance Sheet Trend — Quarterly Through Q3 2017
GAAP Balance Sheet Trend — Quarterly Through Q3 2017 9/POF Solutions inthousands ASSETS Cash and cash equivalents Accounts receivable, net of allowance Prepaid expenses and other current assets Total current assets Property and equipment, net Deferred tax assets Goodwill Intangible assets, net Other
Slide 10: GAAP Balance Sheet — Cash & Accounts Receivables
Q3 2017 — GAAP Balance Sheet — Cash & Accounts Receivables + Total cash at the end of the quarter was $100.8 million, a decrease of $8.3 million when compared to cash on June 30, 2017. + During the quarter the Company purchased approximately $2.0 million of fixed assets, primarily related to our DF
Slide 11: Non-GAAP Presentation
Non-GAAP Presentation 11) POF Solutions In addition to providing results that are determined in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), the Company also provides certain non-GAAP financial measures. Non-GAAP net income excludes the effects ofn
Slide 12: Reconciliation of GAAP to Non-GAAP Net Income
Q3 2017 — Reconciliation of GAAP to Non-GAAP Net Income in thousands (except for shares and per share amounts) Q3-17 GAAP net income $590 Adjustments to reconcile GAAP net income to non-GAAP net income: Stock-based compensation expense 2,949 Amortization of acquired technology 136 Amortization of ot
Slide 13: Reconciliation of GAAP to Non-GAAP for Prior Quarters
Reconciliation of GAAP to Non-GAAP for Prior Quarters in thousands (except for shares and per share amounts) 9-Month Period 9-Month Period O16 G6 3-16 Qui7y 217 03-17 GAAP netincome $ 2061 $ 2133 $ 198 $ S57 $ 199 $ 590 Adjustments to reconcile GAAP net income to non-GAAP netincome: Stock-based comp
Slide 14: Non-GAAP Expenses - Quarterly Trend Through Q3 2017
Non-GAAP Expenses - Quarterly Trend Through Q3 2017 in thousands NON-GAAP EXPENSES: COST OF SALES OPERATING EXPENSES Research & Development Selling, General, & Administrative TOTAL OPERATING EXPENSES 14) POF Solutions Q1-16 Q2-16 Q3-16 Q4-16 Ql-17 Q2-17 Q3-17 9,025 9,603 10,175 10,845 = 10,143 10,21
Slide 15: Non-GAAP Operating Expenses — Quarterly Trend Through Q3 2017
Non-GAAP Operating Expenses — Quarterly Trend Through Q3 2017 im shiodsoncs. Research & Development welling, General, & Administrative 14,000 12,000 10,000 8,000 6,000 4000 2,000 : 03-16 4-16 a1-17 92-17 3-17 18/POF Solutions
Slide 16: CFO Commentary — Non-GAAP Expenses
Q3 2017 CFO Commentary — Non-GAAP Expenses * OnaNon-GAAP basis, Cost of Sales was $11 million, which was approximately $0.7 million higher than the prior quarter. * Total Non-GAAP Operating Expenses, at $11.6 million, were approximately the same as the prior quarter, and 44% of total revenues, down
Slide 17: Non-GAAP Performance Measures — Quarterly Trend Through Q3 2017
Non-GAAP Performance Measures — Quarterly Trend Through Q3 2017 in thousands (except for shares, percent of revenue, and EPS) 0315 94-15 1-16 92-16 93-16 04-16 = QL-ATAct = Q2I7Act — QRATAct GROSS MARGIN (Non-GAAP) 14,745 15,162 16,056 17,086 17,084 17,588 14,146 14,075 15,556 Gross Margin % (Non-GA
Slide 18: CFO Commentary — Non-GAAP Performance Measures
Q3 2017 CFO Commentary — Non-GAAP Performance Measures 18) POF Solutions Non-GAAP gross margin was 59%, up 1% over the prior quarter. Total non-GAAP net income was $3.6 million, approximately $0.9 million higher compared to the prior quarter. Non-GAAP EPS was $0.11 cents per fully diluted share as c
Slide 19: Q4 2017 — Outlook
Q4 2017 — Outlook + We expect total Q4 revenues to be approximately in-line with Q3. + We expect Q4 Gainshare revenues to be approximately flat quarter to quarter. * Continued growth in our Exensio solution should offset the non- recurrence of previously deferred project revenues recognized in Q3. *