Northland Capital Markets Remains Bullish Following PDF Solutions' (PDFS) 4Q Beat

Northland Capital Markets maintained an Outperform rating on PDF Solutions Inc. (NASDAQ: PDFS), and cut the price target to $16.80 (from $21.50), following the company's 4Q earnings report. PDFS reported $0.18 EPS on $24.1M versus Northland's estimates of $0.14 on $23.3M. Royalty revenue was $9.8M, driven by the first 14nm revenue as well as
stabilization of 28nm revenue in the quarter.

Analyst Gus Richard commented, "PDFS reported $0.18 on $24.1M, $0.04 above our estimate. PDFS’ royalty benefitted from stabilization of 28nm royalty and initial ramp of 14nm royalty. PDFS product portfolio and customer base is expanding nicely and customer concentration came down Q/Q. However, company is increasing R&D 30% y/y in CY16, bringing EPS down. We continue to believe PDFS is creating valuable technology that they will be able to monetize. Maintain OP rating and trimming estimates along with PT to $16.80 from $21.50."

For an analyst ratings summary and ratings history on PDF Solutions Inc. click here. For more ratings news on PDF Solutions Inc. click here.

Shares of PDF Solutions Inc. closed at $9.00 yesterday.

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