PDF Solutions, Inc.

Good day and thank you for standing by. Welcome to the PDF Solutions first quarter 2021 conference call. At this time, all participants' lines are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone keypad. If you require any further assistance, please press star 0. I would now like to hand the call over to your conference speaker for today, Joseph Diaz of Litham Partners. Please go ahead.

Thank you, Erica, and thanks to all of you for joining us today on today's call. We appreciate your time and your ongoing interest in PDF solutions. As the operator indicated, my name is Joe Diaz. I'm a managing partner at Litham Partners. We are the investor relations consulting firm for PDF. If you do not yet have a copy of today's press release, it's available on the company's website at pdf.com. Some of the statements made during the course of this conference call will be forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding PDF's future financial results and performance, growth rates, and demand for its solutions. PDF factual results could differ materially. You should refer to the section entitled Risk Factors on the company's annual report on Form 10-K for the fiscal year ended December 31, 2020, and similar disclosures in subsequent SEC filings. The forward-looking statements and risks stated on this conference call are based on information available to PDF today. The company has no obligation to update them. With that said, I'd like to introduce John Kabarian, PDF Solutions President and Chief Executive Officer, who will be followed by Adnan Raza, Executive Vice President and Chief Financial Officer. On the conclusion of management's prepared remarks, we will open the call for your questions. Let me now turn the call over to John Kabarian, President and CEO, PDF Solutions. John.

Thank you for joining us on today's call. If you've not already seen our earnings press release and management report for the first quarter, please go to the investor selection of our website where each has been posted. Today, I will start with a summary of our goals for the year, what we achieved in Q1, and finish with our perspective on Q2 and the remainder of the year. After my remarks, I will turn the call over to Adnan. As most of you know, our goal is to become the leading analytics company for the global semiconductor and electronics supply chain. we are focused on delivering business impact via improved process efficiency and product reliability. Among the requirements to achieve this goal are providing the right data, data quality, and analytics at the equipment edge. This is of growing importance not only to leading edge manufacturing, but also for manufacturers of more mature technologies across the supply chain. Our acquisition of Symmetrix connectivity products And our equipment company partnerships, including Adventest, directly address these requirements. The tool intelligence that connectivity and equipment company partnerships provide, coupled with Accenture's capabilities to ingest and drive actions from the data, is the growth driver of our analytics business. Increasingly, our customers want to utilize Accenture Analytics on the cloud to have immediate access to their data, and connectivity with their factory equipment, processing their products to optimize their production. Turning to the leading edge, our characterization solutions, including electrical test and our design for inspection, provide these customers with the deep data and insights required to develop and control advanced processes. Worldwide, investments in leading edge semiconductor manufacturing continues to increase and has become the focus of semiconductor consumers and governments as well as foundry and phallus companies. As a result, we anticipate bookings and contributions to analytics revenue from CV and DFI systems in Q2 and the second half of the year to grow compared with Q1 in the first half of the year. We will probably deliver these products as part of an analytics solution, but do have some legacy customers who are still buying our characterization capability as part of an integrated yield ramp with gain share royalties tied to yield achievement. With the expected growth in our analytics revenue, the integrated yield ramp revenue as a percentage of total revenues will continue to decrease over time. As we stated in our February call, we are in a period of higher growth for analytics revenue and associated investments as we head towards achieving our long-term model. Our expectation for this year was for our analytics revenue to grow by greater than our annual target of 20%. and we anticipated our total company revenues to approach 20% annual growth. In the first quarter of 2021, we started to see the results we anticipated in February, as our analytics revenue grew by more than 40% compared with Q1 2020. Growth in Q1 for total revenue was 14%, materially above the single-digit year-over-year growth over the past few years, and particularly strong when factoring in the decline in integrated yield ramp revenue. Looking deeper into first quarter results, our largest contracts were for Accenture Process Control, Accenture Cloud, and on-premise TBLs for Accenture Fabless. Additional strength came from increased runtime license sales of our Symmetrix connectivity software, which is installed on capital equipment. The strong and growing capital equipment volume suggests that this robust contribution to analytics revenue should continue through the year and is reflected within our annual growth expectations. During the quarter, we also had many new design wins for our connectivity solutions, meaning our equipment partners are designing our connectivity software into their products under development, which in turn will result in additional runtime licenses in the future. We accelerated our investments in cloud infrastructure and field deployments, as well as our capability to support our customers on the leading edge. Overall, PDF has always been willing to invest in head of business when there's a future opportunity. At the same time, we expect to generate cash from operations this year, as we typically do. As we look towards the second quarter, we anticipate continued total revenue growth on a quarter-over-quarter sequential basis, similar to what we achieved in Q1. We believe this will come not just from strengths in Accentio Analytics and Symmetrix connectivity that we experienced in the first quarter, but also from our characterization systems and IYR solutions on the leading edge as we benefit from the investments we made in the first quarter. In summary, I am really excited about the momentum achieved this quarter. With Symmetrix as part of the team, I am seeing more ways the combination of analytics and connectivity differentiates us further in the marketplace. Moreover, customers' adoption of Accenture in the cloud is opening up new opportunities as they experience the benefits of an integrated end-to-end platform. Our recent increasing and deeper relationships with customer technical evaluations for DFI and CV systems are strengthening my conviction for the potential of our leading-edge business also. Now I'll turn the call over to Adnan, who will review the financials and provide his perspective on our business. Adnan?