PDF Solutions Reports 10% Revenue Growth and Improved Profitability in Q3 and Nine Months of Fiscal 2024

PDF Solutions, Inc. reported a notable increase in revenue and profitability for the third quarter and the first nine months of fiscal 2024. For the three months ended September 30, 2024, total revenues reached $46.4 million, a 10% increase from $42.4 million in the same period of 2023. The growth was primarily driven by a 13% rise in analytics revenue, which amounted to $44.8 million, up from $39.5 million. However, Integrated Yield Ramp revenue decreased by 42% to $1.7 million, attributed to reduced hours on fixed-fee engagements.

For the nine months ended September 30, 2024, total revenues were $129.4 million, a 4% increase from $124.7 million in the prior year. Analytics revenue for this period also grew by 7% to $121.3 million, while Integrated Yield Ramp revenue fell by 31% to $8.1 million, reflecting similar challenges as seen in the quarterly results.

The company's profitability improved significantly, with net income for the third quarter of 2024 reported at $2.2 million, compared to a net loss of $5.0 million in the same quarter of 2023. For the nine-month period, net income was $3.5 million, up from $2.2 million in the previous year. The increase in net income was attributed to higher revenues, lower costs of revenues, and decreased income tax expenses, despite rising selling, general, and administrative expenses.

Total current assets as of September 30, 2024, were $191.4 million, a slight decrease from $197.8 million at the end of 2023. Cash and cash equivalents decreased to $96.4 million from $99.0 million, while short-term investments also fell to $23.7 million from $36.5 million. The company’s total assets increased to $307.4 million from $290.1 million, and total stockholders' equity rose to $240.5 million from $228.9 million.

Strategically, PDF Solutions repurchased 201,561 shares during the nine months ended September 30, 2024, under its 2022 stock repurchase program, totaling $6.9 million. A new repurchase program was initiated in April 2024, allowing for up to $40 million in stock buybacks, although no shares have been repurchased under this new program yet.

The company continues to navigate a complex market environment, with international revenues accounting for approximately 55% of total revenues for both the three and nine months ended September 30, 2024, compared to 42% and 44% in the respective periods of 2023. The ongoing geopolitical tensions and changes in trade regulations, particularly concerning China, may impact future performance.