(1) In the fourth quarter of fiscal 2019, in order to improve the transparency of our revenue reporting, the Company updated its Condensed Consolidated Statements of Operations to change its historical presentation of revenue categories. The Company now presents revenues in the following categories: Analytics and Integrated yield ramp. Integrated yield ramp comprises revenue from the Company’s engagements that include performance incentives based on customers’ yield achievement, such as Gainshare royalty. Analytics comprises all other revenue, including from the Company’s Exensio® software platform, Design-for-Inspection™ solution (DFI™), and Characterization Vehicle® solutions. Prior periods Condensed Consolidated Statements of Operations have been reclassified to conform to the new revenue presentation. The change in presentation of revenue does not change the Company’s total revenues, or total cost of revenues.
PDF SOLUTIONS, INC.
RECONCILIATION OF GAAP TO NON-GAAP NET INCOME (LOSS) (UNAUDITED)
(In thousands, except per share amounts)
| Three months ended | Year ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2019 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||
| GAAP net loss | $ | (1,330 | ) | $ | (687 | ) | $ | (3,114 | ) | $ | (5,418 | ) | $ | (7,716 | ) | |||||
| Adjustments to reconcile GAAP net loss to non-GAAP net income (loss): | ||||||||||||||||||||
| Stock-based compensation expense | 2,782 | 2,732 | 2,470 | 11,423 | 10,295 | |||||||||||||||
| Amortization of acquired technology | 143 | 144 | 144 | 574 | 575 | |||||||||||||||
| Amortization of other acquired intangible assets | 173 | 174 | 109 | 609 | 435 | |||||||||||||||
| Restructuring charges and severance payments | — | — | 576 | 92 | 907 | |||||||||||||||
| Adjustment to contingent consideration related to acquisition | — | 30 | 90 | 30 | 90 | |||||||||||||||
| Write-down in value of property and equipment | — | — | 227 | — | 227 | |||||||||||||||
| Tax impact of adjustments | (700 | ) | (805 | ) | (868 | ) | (2,785 | ) | (1,992 | ) | ||||||||||
| Non-GAAP net income (loss) | $ | 1,068 | $ | 1,588 | $ | (366 | ) | $ | 4,525 | $ | 2,821 | |||||||||
| GAAP net loss per diluted share | $ | (0.04 | ) | $ | (0.02 | ) | $ | (0.10 | ) | $ | (0.17 | ) | $ | (0.24 | ) | |||||
| Non-GAAP net income (loss) per diluted share | $ | 0.03 | $ | 0.05 | $ | (0.01 | ) | $ | 0.14 | $ | 0.09 | |||||||||
| Shares used in diluted shares calculation | 33,414 | 32,997 | 32,476 | 33,122 | 32,466 | |||||||||||||||
