PDF Solutions, Inc. (NASDAQ:PDFS) Q3 2022 Earnings Conference Call November 10, 2022 5:00 PM ET

Company Participants

John Kibarian – President and Chief Executive Officer

Adnan Raza – Chief Financial Officer

Conference Call Participants

Tom Diffely – D.A Davidson

Auguste Richard – Northland

Christian Schwab – Hallum Capital Group

Blair Abernethy – Rosenblatt

Operator

Good day, ladies and gentlemen, and welcome to the PDF Solutions Incorporated conference call to discuss its financial results for the third quarter ending Wednesday, August 31, 2022. At this time all participants are in a listen-only mode. [Operator Instructions] If you have not yet received a copy of the corresponding press release, it has been posted to PDF’s website at www.pdf.com.

Some of the statements that will be made in the course of the conference are forward-looking, including statements regarding PDF’s future financial results and performance, growth rates and demand for its solutions. PDF’s actual results could differ materially. You should refer to the section entitled Risk Factors on Pages 17 through 30 of PDF’s annual report on Form 10-K for the fiscal year ended December 31, 2021, and similar disclosures in subsequent SEC filings. The forward-looking statements and risks stated in this conference call are based on information available to PDF today. PDF assumes no obligation to update them.

Now, I’d like to introduce John Kibarian, PDF’s President and Chief Executive Officer; and Adnan Raza, PDF’s Chief Financial Officer. Mr. Kibarian, please go ahead.

John Kibarian

Thank you for joining us on today’s call. If you’ve not already seen our earnings press release, management report and 10-Q for the third quarter, please go to the Investors section of our website where each has been posted.

I will start the discussion by providing commentary on the third quarter and early part of the fourth quarter. From there, I’ll provide our impressions of the current state of the semiconductor industry, the situation in respect to geopolitical factors and the potential impact of the general economy on our business.

I will conclude with our expectations for PDF business for the remainder of the year before handing the call over to Adnan for a more detailed financial update.

On our last quarter’s call, we expressed our confidence in the second half of 2022 bookings. We pointed out that protracted nature of some of our large multi-element engagements with customers would mean that, that bookings would be lumpy and generally stronger in the second half than the first half. The third and early fourth quarter bookings show that we are realizing that prediction. Notable [ph] include bookings of Cimetrix on-time licenses were near all-time highs, even as our equipment partners continue to experience part shortages that limited some of their shipments.