PDF Solutions reported record third‑quarter revenue of $57.1 million, a 10% increase from the $51.7 million earned in the second quarter and a 23% year‑over‑year rise. The growth was largely driven by the analytics platform, which captured a larger share of the company’s high‑margin contracts, and by continued demand for the eProbe system in semiconductor manufacturing.
Gross‑margin performance improved to 72% on a GAAP basis, up from 71% in Q2, while non‑GAAP gross margin held steady at 76%. The margin expansion reflects a shift toward higher‑margin analytics services and tighter cost control in the manufacturing support segment.
Operating‑margin gains were more pronounced: GAAP operating margin climbed to 8% from 2% in the prior quarter, and non‑GAAP operating margin rose to 23% from 19%. The jump is attributable to scale effects and disciplined operating expenses as revenue grew.
Net income reached $1.3 million, up from $1.1 million in Q2, and non‑GAAP net income increased to $9.8 million from $7.3 million. Non‑GAAP diluted earnings per share of $0.25 beat consensus estimates of $0.23–$0.25, a beat of up to $0.02, driven by the margin expansion and the absence of significant one‑time charges.
The company reaffirmed its 2025 revenue‑growth outlook of 21%–23%. Management cited a backlog of $292 million—25% higher than the prior quarter and 22% higher year‑over‑year—and bookings exceeding $100 million for the quarter as evidence of sustained demand.
CEO John Kibarian highlighted the impact of new AI capabilities, noting the integration of Intel’s Tiber AI Studio into the Exensio platform and the signing of 8‑figure contracts for Exensio and secureWISE. CFO Adnan Raza emphasized the backlog growth and the record bookings, underscoring the company’s expanding customer base.
The market reaction to the results was muted, reflecting a cautious stance despite the earnings beat and revenue exceedance.
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