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SANTA CLARA, Calif. – PDF Solutions , Inc. (NASDAQ:PDFS), a provider of data solutions for the semiconductor industry with a market capitalization of $853 million, has announced a definitive agreement to purchase secureWISE, LLC from Telit IoT Solutions Inc. for $130 million. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt, despite recent market volatility that has seen its stock decline by about 19% in the past week. The transaction, subject to customary closing conditions, is anticipated to finalize in the first quarter of 2025.
secureWISE is known for its secure, remote connectivity solutions widely utilized by over 100 equipment vendors in more than 190 semiconductor fabrication plants worldwide. This acquisition aims to enhance PDF Solutions’ analytics software and expand its secure DEX OSAT network, improving collaboration and optimization in chip manufacturing and testing.
Dr. John Kibarian, President and CEO of PDF Solutions, expressed confidence that integrating secureWISE into their platform will provide significant value to the semiconductor ecosystem by enabling secure collaboration and control over manufacturing processes.
Mike Dempsey, Vice President of secureWISE, commented on the acquisition, stating that PDF Solutions is the ideal partner to further evolve secureWISE, meeting industry trends and customer needs.
PDF Solutions will finance the acquisition through a mix of cash on hand and $70 million in new bank debt. The company expects the transaction to contribute to a full-year 2025 revenue growth rate of 21% to 23% and to be slightly accretive to EPS. InvestingPro analysis shows the company maintains a healthy current ratio of 3.4x, with liquid assets well exceeding short-term obligations. For detailed insights into PDF Solutions’ financial health and 16 additional ProTips, consider exploring the comprehensive Pro Research Report available on InvestingPro.
The company will discuss the acquisition details in a conference call today at 3:00 p.m. Pacific Time. The call will be webcast on the PDF Solutions website, with a replay available afterward.
This acquisition reflects PDF Solutions’ commitment to advancing its analytics capabilities and fostering secure collaboration within the semiconductor manufacturing industry. While the company maintains a robust gross profit margin of 69.8%, InvestingPro’s Fair Value analysis suggests the stock may be slightly overvalued at current levels. The information in this article is based on a press release statement from PDF Solutions, Inc.
In other recent news, PDF Solutions reported mixed results for its fourth quarter, with earnings per share (EPS) of $0.25, slightly below the analyst estimate of $0.26. However, the company exceeded revenue expectations, reporting $50.1 million compared to the forecast of $46.4 million, marking a 22% year-over-year increase. For the full year, PDF Solutions achieved revenues of $179.5 million, an 8% increase from the previous year, with a strong backlog of $221.4 million as of December 31, 2024. The company anticipates a 15% growth in total revenue for 2025, reflecting strategic advancements in AI and semiconductor technologies. Analysts, such as those from Rosenblatt Securities, have expressed cautious optimism regarding the company’s improved gross margins and future revenue growth projections. The company’s cash position remains robust, with cash, cash equivalents, and short-term investments totaling $114.9 million at the end of the fourth quarter. PDF Solutions also highlighted the successful launch of AI-driven products and continued expansion in the semiconductor sector. Despite challenges in some market segments, the company’s strategic focus on innovation and market diversification appears to be well-received by investors.
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