PDF Solutions Inc. (NASDAQ:PDFS) Q2 2019 Earnings Conference Call - Final Transcript

Aug 01, 2019 • 05:00 pm ET

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PDF Solutions Inc. (NASDAQ:PDFS) Q2 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator Instructions] Our first question comes from the line of Jon Tanwanteng from CJS Securities.

Analyst
Jon Tanwanteng

Hey, good afternoon, guys. Thank you for taking my questions. Maybe can you first provide an update on the growth rate of Exensio software, maybe on a year-over-year basis? And secondly, maybe an update on the expectations for the amount of series 150 and 250 machines, that you hope to be shipping this year and next, given that you're ordering more long lead time parts?

Executive
John K. Kibarian

Sure. So as I said in my prepared remarks, Jon, our analytics revenue was up 40% year-over-year and over 10%, sequentially. As far as we go, we recorded long lead item parts. Right now we have the ability to ship one more eProbe 250. We got the ability to be able to ship a couple more than that as we get out into 2020. We would expect to be able to shift these machines -- the first machine, maybe, by the end of this year or early next year, and the remaining machines sometime in next year. As far as 150s, we are not building any more of those. We have a handful of them that we use from a development standpoint, demo standpoint and we do -- we are shipping one to customer developing more mature technologies in China.

Analyst
Jon Tanwanteng

Okay. Great. Thank you for that color. And then are you winning any more customers with DFI that were not historically yield ramp customers or winning back ones that may have stopped using, I guess?

Executive
John K. Kibarian

Yes. In fact, all of the DFI accounts are basically have not been yield ramp customers. So the first customer as well as the ones that we're doing demos now, including the memory one, they're all -- were not yield ramp customers. One was a yield ramp customer a number of years ago, I should correct myself.

Analyst
Jon Tanwanteng

Okay. Great. And then in the quarter because I'm not sure if you addressed this or not. Did you make or did you receive any make-whole or new solutions payments from global foundries in the quarter and do you expect any more in the coming quarters?

Executive
Christine Russell

We are receiving regular quarterly cash payments throughout the remainder of this year. So we receive cash every quarter. And in Q1, we did recognize revenue, and not because we received the cash, but we recognized revenue because we had PLC hours that we actually had earned and completed. And so don't expect any additional revenue from the cash payments, but we will regularly be receiving the quarterly cash payments through the end of this year.

Analyst
Jon Tanwanteng

Okay. Great. What was the size of those? And kind of what was the expectation for the rest of the year?

Executive
Christine Russell

It's approximately somewhere around $2 million a quarter.

Analyst
Jon Tanwanteng

Okay. Great. And then, John, just a little more color on your expectations for Gainshare going through the rest of the year, and maybe, split between 28 and 14, and below?

Executive
John K. Kibarian

Yeah. I think we still -- I