PDF Solutions Reports $179.5 Million Revenue for Fiscal Year 2024, Up 8%

PDF Solutions, Inc. reported a total revenue of $179.5 million for the fiscal year ending December 31, 2024, marking an increase of $13.6 million, or 8%, compared to $165.8 million in 2023. The company's Analytics revenue, which includes software licenses and services, rose by 11% to $169.3 million, driven by higher sales of Exensio and Cimetrix software licenses and DFI systems. However, Integrated Yield Ramp revenue decreased by 26% to $10.2 million, primarily due to reduced hours worked on fixed-fee engagements and a decline in customer wafer shipments at non-leading-edge nodes.

The company's net income for 2024 was $4.1 million, an increase from $3.1 million in the previous year. This growth in profitability was attributed to the rise in total revenues, although it was partially offset by increased costs in revenues, research and development, and selling, general, and administrative expenses. Costs of revenues rose by $2.4 million, mainly due to higher hardware costs and subcontractor fees, while research and development expenses increased by 6% to $53.6 million, reflecting higher personnel-related costs and subcontractor expenses.

In terms of strategic developments, PDF Solutions completed the acquisition of Lantern Machinery Analytics, Inc. in July 2023, enhancing its capabilities in automated image analysis and machine learning for battery manufacturing. The company also announced a new stock repurchase program in April 2024, allowing for the repurchase of up to $40 million of its common stock over the next two years. As of December 31, 2024, the company had 539 employees, with a significant portion dedicated to research and development.

Operationally, PDF Solutions reported that four customers accounted for 57% of its gross accounts receivable as of December 31, 2024, highlighting a concentration risk. The company generated approximately 59% of its total revenues from international customers, with significant contributions from regions such as the United States, Japan, and China. The company anticipates that its revenues may continue to fluctuate due to various factors, including customer production volumes and market conditions.

Looking ahead, PDF Solutions expressed optimism about its growth prospects, particularly in light of ongoing investments in research and development and the anticipated benefits from its recent acquisition. The company plans to leverage its advanced analytics capabilities to meet the evolving needs of the semiconductor and electronics industries, while also navigating potential challenges posed by macroeconomic conditions and regulatory changes.