0001437749-25-025464
SEC filingRevenue grew 24% to $51.7M driven by Analytics, but acquisition costs reduced net income to $1.1M.
For the three months ended June 30, 2025, total revenue increased 24% to $51.7 million compared to $41.7 million in the prior year period. The growth was driven by Analytics revenue, which rose 28% to $48.8 million, benefiting from higher CV and DFI systems sales and the addition of secureWISE products, partially offset by lower Exensio software licenses. Integrated Yield Ramp revenue declined 18% to $2.9 million due to reduced hours on fixed-fee engagements, though Gainshare from increased customer wafer shipments at non-leading-edge nodes provided some offset.
Gross profit grew 25% to $36.8 million, while gross margin remained flat at 71%, as higher Analytics revenue and Gainshare contributions were offset by increased costs of revenue, including subcontractor, hardware, and IT costs. Operating expenses rose sharply: R&D increased 18% to $14.9 million, and SG&A surged 21% to $19.7 million, largely due to $4.5 million in acquisition-related costs for SecureWise (included in the six-month figure; Q2 saw $0.2 million of those costs). Net income fell to $1.1 million from $1.7 million, impacted by these costs despite higher revenue and an income tax benefit.
The Analytics segment remains the dominant revenue driver, contributing 94% of total revenue in Q2 2025, up from 91% a year ago. Growth was broad-based, with CV systems, secureWISE, and DFI systems all contributing. The Integrated Yield Ramp segment declined to 6% of revenue, pressured by lower fixed-fee work, though Gainshare improved due to higher wafer volumes at mature nodes. Management expects IYR revenue to remain volatile due to Gainshare dependency on customer production and yield improvements.
No quantitative guidance was provided. Management noted ongoing industry trends favoring cloud-based analytics and Industry 4.0, which should support Analytics demand. However, risks include macroeconomic uncertainty, elevated semiconductor inventories, export controls (especially related to China), and geopolitical tensions. The SecureWise acquisition is expected to expand the company's connectivity and analytics capabilities. Capital resources are deemed sufficient for at least the next twelve months, despite the significant cash outlay for the acquisition. The company is assessing the impact of the newly enacted One Big Beautiful Bill Act on taxes.
Cash and cash equivalents decreased to $37.4M from $90.6M at year-end 2024, primarily due to the SecureWise acquisition and capex. Short-term investments were $3.0M. Total debt (net) stood at $68.1M, consisting of a $24.4M term loan and $45.0M drawn on a revolving credit facility. The company remains compliant with debt covenants (max leverage 3.0x, min fixed charge coverage 1.25x). Shareholders' equity increased to $257.5M from $246.0M driven by stock compensation and comprehensive income.
Total purchase obligations were $36.1M as of June 30, 2025, primarily due within 12 months. Operating lease commitments total $6.6M through 2031. The company has remaining performance obligations (RPO) of $232.6M, with more than half expected to be recognized over the next two years.
The 2024 stock repurchase program authorizes up to $40.0M; no shares were repurchased through June 30, 2025. No dividends are paid. Debt issuance in March 2025 added $69.6M in proceeds (net of costs), with $0.6M repaid. Capex was $16.7M in the first half of 2025, up from $7.3M in the prior year period, driven by investments in DFI and CV system assets.
The company operates as a single segment. Revenue is split between Analytics ($91.3M for 6M ended June 30, 2025) and Integrated Yield Ramp ($8.2M). International revenue accounted for 62% of total revenue in the first half of 2025, with Japan (21%), China (20%), and rest of world (20%) as key regions.