Exhibit 99.1

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2858 De La Cruz Boulevard, Santa Clara CA 95050 USA

+1.408.280.7900                                             www.pdf.com

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News Release

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PDF Solutions® Reports Fourth Quarter and Full Year 2022 Results

Santa Clara, CA, February 16, 2023, – PDF Solutions, Inc. (Nasdaq: PDFS), a leading provider of unified data and cloud analytics for the semiconductor ecosystem, today announced financial results for its fourth quarter and year ended December 31, 2022.

Highlights of Fourth Quarter 2022 Financial Results

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Highlights of Full Year 2022 Financial Results

Total revenues for the fourth quarter of 2022 were $40.5 million, compared to $39.9 million for the third quarter of 2022 and $29.9 million for the fourth quarter of 2021. Analytics revenue for the fourth quarter of 2022 was $36.0 million, compared to $32.9 million for the third quarter of 2022 and $27.3 million for the fourth quarter of 2021. Integrated Yield Ramp revenue for the fourth quarter of 2022 was $4.5 million, compared to $7.0 million for the third quarter of 2022 and $2.6 million for the fourth quarter of 2021. Total revenues for the full year 2022 and 2021 were $148.5 million and $111.0 million, respectively.

GAAP gross margin for the fourth quarter of 2022 was 71%, compared to 69% for the third quarter of 2022 and 61% for the fourth quarter of 2021. GAAP gross margin for the full year 2022 and 2021 was 68% and 60%, respectively.

Non-GAAP gross margin for the fourth quarter of 2022 was 74%, compared to 72% for the third quarter of 2022 and 65% for the fourth quarter of 2021. Non-GAAP gross margin for the full year 2022 and 2021 was 71% and 64%, respectively.

On a GAAP basis, net income for the fourth quarter of 2022 was $0.5 million, or $0.01 per diluted share, compared to a net income of $1.4 million, or $0.04 per diluted share, for the third quarter of 2022, and net loss of $7.0 million, or ($0.19) per diluted share, for the fourth quarter of 2021. On a GAAP basis, net loss for the full year 2022 was $3.4 million, or ($0.09) per diluted share, compared to net loss of $21.5 million, or ($0.58) per diluted share, for the full year 2021.

Non-GAAP net income for the fourth quarter of 2022 was $7.4 million, or $0.19 per diluted share, compared to a non-GAAP net income of $7.6 million, or $0.20 per diluted share, for the third quarter of 2022, and non-GAAP net income of $2.8 million, or $0.07 per diluted share, for the fourth quarter of 2021. Non-GAAP net income for the full year 2022 was $22.9 million, or $0.60 per diluted share, compared to non-GAAP net income of $3.0 million, or $0.08 per diluted share, for the full year 2021.

Cash, cash equivalents and short-term investments at December 31, 2022 were $139.2 million, compared to $140.2 million at December 31, 2021, a decrease of $1.0 million. Net cash provided by operating activities was $24.3 million for the fourth quarter of 2022. Net cash provided by operating activities was $32.3 million for the full year 2022.

PDF Solutions® Reports Fourth Quarter and Full Year 2022 Results

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Financial Outlook and Recent Accomplishments

In spite of macroenvironment headwinds and a high revenue base from the strong performance in 2022, we expect 2023 revenue growth rate to approach mid-teens percent on a year-over-year basis, benefiting from our strong backlog.

“Thanks to all our employees, contractors, and customers for the strong 2022 performance. We are pleased with how we are positioned for 2023 and look forward to serving our customers,” said John Kibarian, CEO and President.  

Conference Call

As previously announced, PDF Solutions will discuss these results on a live conference call beginning at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time today. To participate on the live call, analysts and investors should pre-register at: https://register.vevent.com/register/BI4d22ed99a5804ec6a79bce8b073e8200. Registrants will receive dial-in information and a unique passcode to access the call. We encourage participants to dial-in into the call ten minutes ahead of scheduled time. The teleconference will also be webcast simultaneously on the Company’s website at https://ir.pdf.com/webcasts. A replay of the conference call webcast will be available after the call on the Company’s investor relations website. A copy of this press release, including the disclosure and reconciliation of certain non-GAAP financial measures to the comparable GAAP measures, which non-GAAP measures may be used periodically by PDF Solutions’ management when discussing financial results with investors and analysts, will also be available on PDF Solutions’ website at http://www.pdf.com/press-releases following the date of this release.

Fourth Quarter and Full Year 2022 Financial Commentary Available Online

A Management Report reviewing the Company’s fourth quarter and full year 2022 financial results will be furnished to the Securities and Exchange Commission on Form 8-K and published on the Company’s website at http://ir.pdf.com/financial-reports. Analysts and investors are encouraged to review this commentary prior to participating in the conference call.

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PDF Solutions® Reports Fourth Quarter and Full Year 2022 Results

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Information Regarding Use of Non-GAAP Financial Measures

In addition to providing results that are determined in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), PDF Solutions also provides certain non-GAAP financial measures. Non-GAAP gross profit and margin exclude stock-based compensation expense and the amortization of acquired technology. Non-GAAP net income excludes the effects of certain non-recurring items, expenses related to an arbitration proceeding for a disputed contract with a customer, write-downs in value of property and equipment, stock-based compensation expense, amortization of acquired technology and other acquired intangible assets, and their related income tax effects, as applicable, as well as adjustments for the valuation allowance for deferred tax assets. These non-GAAP financial measures are used by management internally to measure the Company’s profitability and performance. PDF Solutions’ management believes that these non-GAAP measures provide useful supplemental information to investors regarding the Company’s ongoing operations in light of the fact that none of these categories of expense has a current effect on the future uses of cash (with the exception of expenses related to an arbitration proceeding for a disputed contract with a customer and acquisition-related costs) nor do they impact the generation of current or future revenues. These non-GAAP results should not be considered an alternative to, or a substitute for, GAAP financial information, and may differ from similarly titled non-GAAP measures used by other companies. In particular, these non-GAAP financial measures are not a substitute for GAAP measures of income or loss as a measure of performance, or to cash flows from operating, investing and financing activities as a measure of liquidity. Since management uses these non-GAAP financial measures internally to measure profitability and performance, PDF Solutions has included these non-GAAP measures to give investors an opportunity to see the Company’s financial results as viewed by management. A reconciliation of the comparable GAAP financial measures to the non-GAAP financial measures is provided at the end of the Company’s financial statements presented below.

Forward-Looking Statements

The press release and the planned conference call include forward-looking statements regarding the Company’s future expected business performance and financial results, including expectations about total revenue growth and expected revenue from new bookings, that are subject to future events and circumstances. Actual results could differ materially from those expressed in these forward-looking statements. Risks and uncertainties that could cause results to differ materially include risks associated with: continued adoption of the Company’s solutions by new and existing customers; project milestones or delays and performance criteria achieved; cost and schedule of new product development; the impact of rising inflation and interest rates; the provision of technology and services prior to the execution of a final contract; the continuing impact of the coronavirus (COVID-19) on the semiconductor industry and on the Company’s operations or supply and demand for the Company’s products; the time required of the Company’s executive management for, and the expenses related to, as well as the success of the Company’s strategic growth opportunities and partnerships, including its partnership with Advantest Corporation; the Company’s ability to successfully integrate acquired businesses and technologies; whether the Company can successfully convert backlog into revenue; customers’ production volumes under contracts that provide Gainshare royalties; the potential for export controls that could impact the Company’s sales in China; and other risks set forth in PDF Solutions’ periodic public filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2021, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K and amendments to such reports. The forward-looking statements made in the conference call are made as of the date hereof, and PDF Solutions does not assume any obligation to update such statements nor the reasons why actual results could differ materially from those projected in such statements. PDF Solutions has not filed its Form 10-K for the year ended December 31, 2022. As a result, all financial results described in this earnings release should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates, that are identified prior to the time the Company files its Form 10-K

About PDF Solutions

PDF Solutions (NASDAQ: PDFS) provides comprehensive data solutions designed to empower organizations across the semiconductor ecosystem to improve the yield and quality of their products and operational efficiency for increased profitability. The Company’s products and services are used by Fortune 500 companies across the semiconductor ecosystem to achieve smart manufacturing goals by connecting and controlling equipment, collecting data generated during manufacturing and test operations, and performing advanced analytics and machine learning to enable profitable, high-volume manufacturing.

Founded in 1991, PDF Solutions is headquartered in Santa Clara, California, with operations across North America, Europe, and Asia. The Company (directly or through one or more subsidiaries) is an active member of SEMI, INEMI, TPCA, IPC, the OPC Foundation, and DMDII. For the latest news and information about PDF Solutions or to find office locations, visit https://www.pdf.com.

PDF Solutions and the PDF Solutions logo are trademarks or registered trademarks of PDF Solutions, Inc. or its subsidiaries.

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PDF Solutions® Reports Fourth Quarter and Full Year 2022 Results

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PDF SOLUTIONS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In thousands)

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PDF Solutions® Reports Fourth Quarter and Full Year 2022 Results

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PDF SOLUTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(In thousands, except per share amounts)

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PDF Solutions® Reports Fourth Quarter and Full Year 2022 Results

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PDF SOLUTIONS, INC.

RECONCILIATION OF GAAP GROSS MARGIN TO NON-GAAP GROSS MARGIN (UNAUDITED)

(In thousands)

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PDF Solutions® Reports Fourth Quarter and Full Year 2022 Results

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PDF SOLUTIONS, INC.

RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (UNAUDITED)

(In thousands, except per share amounts)

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Exhibit 99.2

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Q4 2022 and Full Year 2022

Management Report

February 16, 2023

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Contents

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–  Overview

–  Key Financial & Operating Metrics

–  Revenue by Geographic Area

–  Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income

–  Reconciliation of GAAP to Non-GAAP Spending by Function

The following commentary is provided by management and should be referenced in conjunction with PDF Solutions’ Fourth Quarter and Full Year 2022 financial results press release available on its Investor Relations website at http://www.pdf.com/financial-news. These remarks represent management’s current views of the Company’s financial and operational performance and are provided to give investors and analysts further insight into its performance in advance of the earnings call webcast. The Company disclaims any duty to update this information for future events.

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PDF Solutions Reports Fourth Quarter 2022 Results

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PDF Solutions Reports Full Year 2022 Results

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Key Financial & Operating Metrics – Quarterly

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(in thousands, except share data, which is in millions, and percentages)

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Key Financial & Operating Metrics – Yearly

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(in thousands, except share data, which is in millions, and percentages)

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Revenue by Geographic Area – Quarterly

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(Dollars in thousands)

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Revenue by Geographic Area – Yearly

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(Dollars in thousands)

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GAAP / Non-GAAP Presentation

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In addition to providing results that are determined in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), the Company also provides certain non-GAAP financial measures. Non-GAAP gross profit excludes stock-based compensation expense and the amortization of acquired technology. Non-GAAP net income (loss) excludes the effects of certain non-recurring items, expenses related to an arbitration proceeding for a disputed customer contract, acquisition related costs, write-downs in value of property and equipment, stock-based compensation expense, amortization of acquired technology and other acquired intangible assets, and their related income tax effects, as applicable, tax impact of the CARES Act, as well as adjustments for the valuation allowance for deferred tax assets. These non-GAAP financial measures are used by management internally to measure the Company’s profitability and performance. PDF Solutions’ management believes that these non-GAAP measures provide useful supplemental measures to investors regarding the Company’s ongoing operations in light of the fact that none of these categories of expense has a current effect on the future uses of cash (with the exception of expenses related to an arbitration proceeding for a disputed customer contract, and acquisition related costs) nor do they impact the generation of current or future revenues. These non-GAAP results should not be considered an alternative to, or a substitute for, GAAP financial information, and may be different from similarly titled non-GAAP measures used by other companies. In particular, these non-GAAP financial measures are not a substitute for GAAP measures of income or loss as a measure of performance, or to cash flows from operating, investing and financing activities as a measure of liquidity. Management uses these non-GAAP financial measures internally to measure profitability and performance; these non-GAAP measures are presented here to give investors an opportunity to see the Company’s financial results as viewed by management. A detailed reconciliation of the adjustments made to comparable GAAP measures is included herein.

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Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income

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Reconciliation of GAAP Net Loss to Non-GAAP Net Income (Loss)

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