PDF Solutions, Inc.

Good day. Thank you for standing by. Welcome to PDF Solutions' first quarter 2022 conference call. At this time, all participants' lines are in listen-only mode. After the speaker presentation, there will be a question and answer session for which instructions will be given at that time. I would now like to hand the call over to Joseph Diaz of Lithium Partners. Sir, please go ahead.

Thank you, Christian, and thanks to all of you for joining us today on the call. We appreciate your time and your ongoing interest in PDF solutions. As the operator indicated, my name is Joe Diaz. I'm with Letham 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 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. The forward-looking statements and risks referred to on this call are based on information available to PDF today. The company has no obligation to update them. You are advised to refer to the section titled Risk Factors on the company's annual report on Form 10-K for the fiscal year ended December 31, 2021, and similar disclosures in subsequent SEC filings. With that said, I'd like to introduce John Kabarian, PDF Solutions President and Chief Executive Officer. He'll 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, Joe. The first quarter was a great start to our year. Before Adnan discusses the financials in detail, I have some comments about the nature of our business in the quarter and our perceptions of the markets. The first quarter bookings built on a strong trend in 2021 with many of the same themes that we experienced last year continuing. For the industry in the first quarter, supply constraints, COVID lockdowns, and sanctions as a result of the Ukraine war made for uneven availability of equipment, wafers, and consumables. Customers expressed to us increased uncertainty in meeting shipment requirements and increasingly noticed our customers' executives spending effort to assure supply. Despite this backdrop, and in some cases because of these trends, we had a very strong bookings quarter. We did see some customers ship fewer tools than we had anticipated, which impacted the contribution from runtime licenses to analytics revenue in the quarter. At the same time, the contribution from gain share to integrated yield ramp revenue was improved modestly as a result of increased wafer shipments. We also experienced uptick in Accenture process control perpetual licenses as customers built out new capacity. Overall in the first quarter, the macro trends, while not all positive for our business, tended to break in our favor from a revenue perspective. Beyond these puts and takes that were a function of the macro challenges and opportunities, our business activity and results were very strong in the quarter. I will briefly touch on some highlights in bookings in partnership activities. Building on the Quick Start contract that was signed with a leading-edge customer in the fourth quarter of last year, and as anticipated, we signed a large follow-on contract. This makes it possible for this customer to use PDF's characterization vehicle test chips, DFM software, and Accentio Analytics to optimize its PDKs and foundry interface for a broad range of chip designs. Second, and consistent with recent history, the largest Accentio contract in the quarter was for a cloud deployment. This contract was for one of our first cloud renewals, as the customer was one of the early adopters of Accentio Cloud in 2019. The renewal grew ARR from this customer well over 50%, as they took advantage of tiered storage and expanded usage. There were other Accentio Cloud contracts in the quarter, as well as contracts for Accentio process control and test modules. These were at both new and existing customers. Third, we continue to experience strong customer adoption of our SDKs for Symmetrix connectivity products, and while impacted by supply chain, still strong shipments of runtime licenses on an absolute basis. We ended the quarter with record runtime license backlog, which speaks to our customers' challenges in making equipment shipments, but also gives us confidence in the future contribution from runtime licenses. Collaborating with other industry leaders continues to be an important part of our business. As we discussed last quarter, we announced our partnership with Siemens EDA to link Xensio with Tessin diagnostic products. Our first webinar in Q1 was highly attended, and the follow-up customer interest is high. In April, we announced a collaboration with Kulik and Sofa to link Xensio with their assembly manufacturing equipment. This partnership builds on our existing OEM relationship, where K&S includes our Accentio analytics for assembly operations to enable traceability. Like our Siemens collaboration, this expanded engagement starts off with an early customer access program. Our relationships with Adventest, Siemens, and K&S all speak to our customers' desire to add more analytics to the backend assembly and test. This is particularly true for chip and system companies employing system and package processes to implement 2.5D and 3D chip systems. Adventest's voice user conference is coming up next week, and we anticipate announcing new products as a result of our continued collaboration in conjunction with this conference. IBM's Sideview user group conference is also soon, and we'll be working with IBM to outline our collaboration for Sideview customers. Overall, customer and partner activities in the first quarter were strong and consistent with our expectation entering the year. Now, one quarter into 2022, the semiconductor environment remains robust and demand for integrated circuits is broad-based. We anticipate continued demand for our analytics platform, particularly on the cloud, from a broad cross-section of customers. Given the industry tailwinds I just summarized, and in spite of the macroeconomic uncertainty, We remain confident in the outlook we provided earlier this year. Before I turn the call over to Adnan, I would like to thank all of the PDF employees and contractors for their efforts during the first quarter. We managed to work in tight concert, navigating many of the challenges to have the strongest revenue quarter in the history of the company. Now I'll turn the call over to Adnan, who will review the financials and provide his perspective on the business. Adnan.