PDF Solutions, Inc.

good day and thank you for standing by welcome to pdf solutions second quarter 2021 conference call at this time all participants line are in the listen only mode after the speaker's presentation there will be a question and answer session for which instructions will be given at that time i would like to hand call over to joseph diaz of the lead on partners please go ahead sir thank you donna and thanks to all of you for joining us today

on this 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 Lithium 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 www.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, performance, growth rates, and demand for its solutions. PDF's actual 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. At 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 of PDF Solutions. John?

Thank you for joining us on our call today. If you have not already seen our earnings press release management report and 10Q for the second quarter, please go to the investor section of our website where each has been posted. We appreciate your taking time to join us today. I will start with the discussion. start the discussion by providing commentary on our Q2 highlights. From there, we'll provide our impressions of the semiconductor industry and conclude with our expectations for PDF's business in the second half of the year before handing it over to Adnan for more detailed financial update. Highlights for the second quarter show progress towards our long-term objective of being the go-to manufacturing data analytics platform for the semiconductor and electronics industry. Building on Q1, business activity in the second quarter was very strong. For the first half of the year, bookings are up 60% more compared with the first half of 2020. In total backlog, as of June 30, 2021, has more than doubled compared to June 30, 2020. As we have said before, we believe that a successful manufacturing analytics platform requires the right data, data quality, and analytics at the equipment edge. Increasingly, customers are requiring the platform to be on the cloud where they can benefit from both SAS model and supply chain-wide use of the analytics platform, which fosters collaboration between them and their suppliers. In the second quarter, we demonstrated our ability to bring the customers the right data with strong bookings for leading-edge solutions applied to customers developing and ramping processes from 28 nanometer to three. In particular, there were two contracts of note. The first is a multi-year, multi-node integrated yield ramp contract for an existing Chinese customer. The second is a quick start agreement with the customer to begin deployment of Accentio's CV infrastructure and DFI system on a subscription basis. This already multi-million dollar agreement enabled us to quickly start the deployment of these systems while the larger multi-year subscription contract for the first node is completed. The industry's increased interest in having analytics as equipment edge is reflected in part by another strong quarter for the Symmetrix connectivity products. This quarter included orders from some of the most complex front-end lab equipment, as well as test and assembly tools. Our business with equipment customers starts with licensing our software development kits, or SDKs, to enable integration of our software with their equipment. They then pay us for runtime licenses for each tool on which the software is included. For the first half of the year, we experienced record revenue from runtime licenses. We also had strong design wins on new equipment platforms that bodes well for future runtime licenses. Our SaaS bookings continue to grow in the quarter as Accenture customers adopt our cloud. In the second quarter, one of the largest US-based fabulous companies signed a contract with us to move their on-premise deployment to the cloud enabled by our big data solution. They found like most companies who benchmark, that the performance and cost advantages of moving to Accentio Cloud are quite meaningful. Given the growth of Accentio Cloud, we anticipate having multiple petabytes of data under management over the next few years. In the second quarter, we recognized revenue from the first sales by Adventest of our first integrated product that leverages their know-how in tests and Accentio's capabilities in adaptive tests. This revenue is over and above the $10 million per year minimum commitment that Adventest and PDF agreed to when the partnership was initiated. The sale of this integrated product in less than a year from our signing the partnership agreement demonstrates the advantage of collaboration between the companies and importantly provides Adventest with unique and differentiated capabilities in the marketplace. Looking at the first half of the year, we are very pleased with the progress achieved to date. On a year-over-year basis, we grew analytics revenue 37% for the first half of the year and 29% for Q2. I would now like to turn to what we're seeing in the industry. Overall, semiconductor and electronic companies continued elevated investments in process control and new node bring-up, which bodes well for our business. We believe that we will see continued strong interest in our products in the second half of the year. As we discussed earlier this year, we do anticipate legacy gain share contracts rolling off in the third quarter to result in gain share in the second half of the year below the first half. That said, due to the strong backlog and anticipated bookings for the remainder of the year, we believe Q3 revenue should exceed Q2 revenue, and we anticipate this growth to be broad-based, led by continued strong bookings of our analytic solution for leading edge customers and our cloud offering more broadly. We are pleased with the progress we made in the first half of the year in making PDF Solutions the manufacturing data analytics platform for the industry, which helps us build recurring revenue streams to provide greater visibility and predictability of our financial results. Finally, I want to thank our employees for nimbly supporting our customers and continuing to innovate in the COVID-19 environment. Now I'd like to turn the call over to Adnan for a review of the financials, after which we'll open the call up to your questions. Adnan?