PDF SOLUTIONS INC Q4 FY2024 earnings call

• In 2024, the second - half revenue showed growth. The second - half revenue was up about 16% compared to the same period the previous year, and the fourth - quarter revenue was up 22% year over year. This growth was due to leading - edge advanced packaging companies investing in process control and yield improvement, reflected in sales of Exensio Process Control and eProbe in the second half. • For the fourth quarter, the manufacturing evaluation of the eProbe was converted to revenue as the customer purchased the machine early. Most other bookings in the quarter were for Exensio and runtime licenses for Symetrix control and communication software. • The company sponsored an AI executive workshop with 140 external attendees from over 75 organizations. • In 2025, the eProbe will expand applications for advanced logic (including gate all around, backside power, contact, and via yield loss mechanisms) and advanced DRAM. The company anticipates shipping over four eProbe machines. The business is more balanced, spread across equipment makers, foundries, IDMs, fabless, and system companies, spanning from advanced logic to high voltage semiconductors.

For the fourth quarter of 2024, total revenues amounted to $50.1 million, representing a 22% year-over-year increase. For the full year 2024, total revenues reached $179.5 million, an 8% year-over-year growth. Analytics revenue was the dominant segment, accounting for 96% of the fourth - quarter total revenue and 94% of the full - year total revenue. In the fourth quarter, the gross margin was 72% and the EPS was 25 cents per share. On a full - year basis, the gross margin was 74% and the EPS was 84 cents. Moreover, the analytics revenue in 2024 exceeded the total company revenue of 2023.

• The company anticipates that total revenues in 2025 will grow at a year - over - year rate approaching 15%. • For the eProbe, it will expand applications for advanced logic and advanced DRAM. • The company anticipates shipping more than four eProbe machines in 2025. There may be some quarter - to - quarter lumpiness associated with eProbe sales, but the business has a mix of a strong base business and a growing eProbe book of business.

• Refer to the section entitled risk factors on pages seventeen through thirty of PDF Solutions, Inc.'s annual report on form ten k for the fiscal year ended December 31, 2023, and similar disclosures in subsequent SEC filings as mentioned in the call.

Q: Blair Abernethy inquired about the eProbe pipeline, new customers, and backlog.

A: John Kibarian stated that the eProbe will be a combination of repeat sales from existing customers, new sales, and new customers. In terms of application space, it will cover advanced logic and advanced DRAM. Regarding the backlog, the change in machine title transfer has an impact on the backlog characteristics, with a higher terms percentage of revenue expected in the year.

Q: William Jellison asked about the receptivity of model ops and accounts receivable.

A: John Kibarian said model ops has high receptivity with ongoing pilots, and Adnan Raza mentioned that the accounts receivable situation is a matter of timing and billing.

Q: Gus Richard asked about the terms of the contract sale, customer management changes, advanced packaging, and HBM DRAM.

A: John Kibarian explained the machine title transfer in the contract sale, stated that customer leadership changes do not have a significant impact, discussed the implications of advanced packaging and HBM DRAM for the business, including how advanced packaging and HBM DRAM will affect the company's business in the future.