Pdf Solutions, Inc. · NASDAQ:PDFS
Pdf Solutions — 8th Annual NYC Investor Summit (December 2019)
31 slides from Pdf Solutions's conference presentation, Dec 17, 2019
Slide 1: 8th Annual NYC Investor Summit
8th Annual NYC Investor Summit December 17, 2019 Kimon Michaels, EVP, Director & Co-Founder
Slide 2: Forward-looking statements
This presentation may contain forward-looking statements regarding projected business performance, operating results, financial condition and other aspects of the Company, expressed by such language as “expected,” “anticipated,” “projected” and “forecasted.” Please be advised that such statements ar
Slide 3: PDF Solutions
PDF Solutions o PDF is an analytics company that improves process efficiency and product reliability for the semiconductor supply chain o PDF uniquely provides: – An end-to-end big data analytics solution designed to meet the needs of the semiconductor value chain – Differentiated data obtained duri
Slide 4: Building a Platform for Success
Building a Platform for Success GROWTH - Analytics revenue CAGR of 35% since 2014 - Analytics now represents 53% of total revenues in TTM Q3 2019 vs 10% in 2014 - Total company gross margins expanding driven by high margin Analytics PROFITABILITY - 66% non-GAAP Analytics gross margins YTD Q3 2019* -
Slide 5: Value Shifting to Mass Production
Value Shifting to Mass Production Foundries on Leading Edge Foundry Market By Node 25 20 15 10 5 0 www.techrepublic.com/article/moores-law-is-dead-three-predictions-about-the-computers-of-tomorrow node o Trends: – Moore’s Law is slowing down, and foundry business is consolidating due to process comp
Slide 6: Data and Analytics Growing in Importance
Data and Analytics Growing in Importance High-tech sectors will see a greater percentage of cost reductions than average and represent nearly a fourth Companies moving to faster decision speed of the total revenue reductions tracked. with greater sophistication, especially in tech. sector. Only half
Slide 7: Overview
Exensio® Overview Analytics big-data platform with common semantic data model for integrated, aligned Hardware data from all sources eProbe® & pdFasTest® Electrical measurement Software hardware CV® infrastructure, CVCore™ & DFI™ IP (Design for Inspection) Characterization, quality and reliability P
Slide 8: Exensio Platform: Big Data Analytics and Control for Semiconductors
Exensio Platform: Big Data Analytics and Control for Semiconductors Process Control Detect and identify process or tool Process problems in manufacturing in real time Control Test Operations OEE optimization, escape prevention, and yield recovery Test Assembly Manufacturing Analytics Operations Oper
Slide 9: PDF Differentiated Data Leverages Exensio End-to-end Analytics
PDF Differentiated Data Leverages Exensio® End-to-end Analytics Inline E-Test Wafer Sort Final Test / Burn-in In-System DFI™ CV® Core CV® Infrastructure Front End Optimization+Control Back End Optimization+Control In-Field Optimization+Control Exensio® Enterprise Analytics Semantic model and AI-Enab
Slide 10: Foresight to Lead the Change
Foresight to Lead the Change PDF Acquisitions and Product Releases Have Expanded Our Scope and TAM Gainshare Model “Selling Time to Volume” Subscription Model “Selling Data” 2015 2018 CV Core Salland Acquisition o Proof of concept o Test, package, assembly mgmt. Completed major data type migration t
Slide 11: Today PDF Bridges the Supply Chain Stack
Today PDF Bridges the Supply Chain Stack o PDF analytics and data implemented broadly across the supply chain o PDF continues to increase our established relationships with critical industry members o PDF is the only commercial analytics-focused provider with breadth and scale required by our custom
Slide 12: PDF Solutions: Customer Base
PDF Solutions: Customer Base 134 customers in #1 commercial #2 and fastest Leading commercial 20 countries solution for mfg growing commercial provider die spanning fabless, yield and control provider in mfg test traceability through fab, OSAT, and with large cloud operations leveraging the supply c
Slide 13: PDF Business Models
PDF Business Models Subscriptions grow ARR over time o PDF has always provided solutions combining advanced analytics and differentiated data o PDF has two business models to capture the value of our solutions o Subscription model: when value is data – During mass production, use of our solutions by
Slide 14: Revenue Shift by Categories
GROWTH Revenue Shift by Categories 2014 TTM Q3 2019 Analytics 10% Analytics 53% IYR 47% IYR 90% PDF Solutions, All Rights Reserved 14
Slide 15: PDF Solutions – Total Available Market
PDF Solutions – Total Available Market o Today, PDF provides the PDF Solutions TAM only commercial, supply- 1400 chain-wide analytics system 1200 o Growth in analytics TAM 1000 Millions $ 800 being driven from 600 400 – Move to cloud and increased data volumes 200 0 – Additional opportunities 2016 T
Slide 16: Total Company Gross Margins
PROFITABILITY Total Company Gross Margins o First monetization of Total Company technology was IYR with Non-GAAP Gross Margins* associated royalties. 70% 66% o IYR when combined with 66% Gainshare created meaningful 65% margins. o Current gross margin 60% expansion driven by Analytics growth. 55% 55
Slide 17: Analytics Revenue Growth
GROWTH Analytics Revenue Growth $50 $45 $44.2 $40 Revenue CAGR $35 35% $ Million $30 $25 $20 $15 $10.3 $10 $5 $0 2014 TTM Q3 2019 PDF Solutions, All Rights Reserved 17
Slide 18: Analytics Customer Adoption
DIVERSIFICATION Analytics Customer Adoption o Added more than 80 new Total # of Customers # of Customers More than 1 Analytics customers since 160 Product 2014, an increase of 171% 35 33 140 134 o 25% of customers utilize 120 30 more than one product 25 100 o Growth in Analytics Revenue 20 per accou
Slide 19: Revenue: Analytics vs. IYR
GROWTH Revenue: Analytics vs. IYR Analytics IYR Revenue Revenue $50 $100 $45 $44.2 $89.9 $90 $40 $80 $35 $70 $30 $ Million $ Million $60 $25 $50 $20 $38.6 $40 $15 $30 $10.3 $10 $20 $5 $10 $0 $0 2014 TTM Q3 2019 2014 TTM Q3 2019 PDF Solutions, All Rights Reserved 19
Slide 20: Annual Recurring Revenue
VISIBILITY Annual Recurring Revenue ARR as % of Solutions o 31% ARR CAGR since 2014 60% 53% o ARR is the value of the contracted recurring revenue 50% components of multi-year subscriptions normalized to a 40% one-year period o ARR provides good level of 30% forward revenue visibility o Prior to 201
Slide 21: Global Geographic Distribution
DIVERSIFICATION Global Geographic Distribution o Globally diverse TTM Q3 2019 geographic distribution o No more than 25% of sales come from any one international market 8% North America 12% EMEA 39% Mainland China 7% Japan Taiwan 18% Asia Other 16% PDF Solutions, All Rights Reserved 21
Slide 22: Balance Sheet Strength
STRENGTH Balance Sheet Strength o Existing balance sheet strength provides ($ Million) foundation for investment in growth of analytics business both o Cash and cash equivalents (end of Q3 2019) $100.3 organically and inorganically o Debt $0 o Successful initiatives o Gainshare royalties expected to
Slide 23: Long-Term Targets
VALUE Long-Term Targets Target Comparables Annual Analytics Revenue Growth 20% 14%* Non-GAAP Gross Margins >70% 85%** Non-GAAP Operating Margin 20% 22%** Comparables: Cadence, Splunk and Synopsys *Based on Analyst Estimates **Comparable data supplied by Zacks Research System and based on TTM Q2 2019
Slide 24: Investment Results in Strong Patent Position
Investment Results in Strong Patent Position o Our investments in analytics & differentiated data result in a strong and growing patent position 160 Issued Patents o Patents based on 28 years of know-how in semiconductor development and mass production o Key patents in areas of: – Design for inspect
Slide 25: Disciplined Capital Allocation
Disciplined Capital Allocation o Capex investments include DFI, CVi, IP, DEX network, and Return Capital to Invest inOrganic Invest in M&A to Shareholders through infrastructure Growth EnhanceGrowth Stock Buyback & Stock Appreciation o Cash balance has stayed relatively constant while we o Invest in
Slide 26: Financials - Appendix
SOLUTIONS’ / Financials - Appendix
Slide 27: Non-GAAP Presentation
Non-GAAP Presentation 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 of non-recurring item
Slide 28: GAAP to Non-GAAP Income Reconciliation (Annual)
GAAP to Non-GAAP Income Reconciliation (Annual) Trailing 12 in thousands (except share amounts, percent of revenue, and EPS) 2019 YTD months 2014 2015 2016 2017 2018 thru Q3 thru Q3-19 GAAP net income (loss) $ 18,462 $ 12,407 $ 9,103 $ (1,337) $ (7,716) $ (4,088) $ (7,202) Adjustments to reconcile G
Slide 29: GAAP to Non-GAAP Gross Margin Reconciliation
GAAP to Non-GAAP Gross Margin Reconciliation in thousands Trailing 12 2019 YTD months 2014 2015 2016 2017 2018 thru Q3 thru Q3-19 GAAP Gross Margin $ 60,449 $ 58,954 $ 63,013 $ 54,350 $ 42,992 $ 38,608 $ 48,613 Adjustments to reconcile GAAP gross margin (loss) to non-GAAP gross margin: Stock-based c
Slide 30: Balance Sheet
Balance Sheet ($ '000) Q3'19 Cash and cash equivalents $100,259 Accounts receivable, net 24,359 Unbilled accounts receivable 10,197 Prepaids and other current 8,026 Property, plant and equipment, net 38,969 Operating lease right-of-use assets 7,581 Other assets 39,956 TOTAL ASSETS $229,347 Accounts
Slide 31: Thank You
Thank You pdf-solutions pdfsolutionsinc pdfs.inc pdf_solutions pdf_cn
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