PDF Solutions Inc. (NASDAQ:PDFS) Q2 2019 Earnings Conference Call - Final Transcript
Aug 01, 2019 • 05:00 pm ET
Good day, ladies and gentlemen, and welcome to the PDF Solutions, Inc. conference call to discuss its financial results for the second quarter ended Sunday, June 30, 2019. [Operator Instructions] As a reminder, this conference is being recorded. If you have not yet received a copy of this 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 this conference are forward-looking, including statements regarding PDF's future financial results and performance, growth rates and demands for its solutions. PDF's actual results could differ materially. You should refer to the section entitled Risk Factors on the pages through 12 to 21 of PDF annual report on Form 10-K for the fiscal year ended December '19 -- December 31, 2018, and similar disclosures in subsequent 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 turn the call over to John Kibarian, PDF's President and Chief Executive Officer; and Christine Russell, PDF's Chief Financial Officer. Mr. Kibarian, please go ahead.
John K. Kibarian
Thank you, and welcome, everyone. If you have not already seen our earnings press release and management report presentation for the second quarter, please go to the Investors Section of our website where each has been posted. Although our total revenues were up only slightly, our results this quarter showed progress towards our objective to be the provider of choice for end-to-end analytics and manufacturing control to the semiconductor and electronics industry.
Our results reveal the ongoing evolution from being important to our customers in ramping leading edge logic nodes to being even more valuable for controlling quality, reliability, yield and operational effectiveness across the lifetime of semiconductor production. This is leading to a growing customer base. In the past, our focus on ramping leading-edge logic resulted in only a handful of customers driving the majority of our revenue. This caused our business to be tied closely to the investment cycle on leading-edge logic.
Our business is now driven by analytics. We have over 130 customers that make everything from leading-edge logic to high-voltage discretes, make signal, memory and systems. The emphasis on analytics has grown our available market and will create more predictable results for PDF. We characterize the value we bring to the industry as foresight, that is the ability to monitor what is happening in production and convert this into useful information for predicting and preventing fabrication pumps [Phonetic]. We're uniquely able to do this because our measurement tools, databases and analytics software span the whole supply chain, from wafer manufacturers to foundries, OSATs, IDMs and fabless to the systems.
Let me touch on four highlights from the second quarter that demonstrate our continued progress. The first highlight is the extensive number of cloud and machine learning pilots we are doing. Over 25% of our top 20 customers are engaged with us on paid pilots to