PDF Solutions Inc (PDFS)

Operating profit margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	-3,602	26,737	28,200	25,280	22,062	11,541	8,653	5,131	1,017	-4,666	-6,214	-5,502	-12,078	-11,103	-7,674	-4,616	7,650	-9,565	-11,005	-12,260
Revenue (ttm)	US$ in thousands	165,835	165,233	162,743	155,810	148,549	137,912	127,607	120,358	111,055	103,536	97,093	91,083	88,046	88,241	87,043	86,202	85,585	82,748	81,047	81,598
Operating profit margin		-2.17%	16.18%	17.33%	16.22%	14.85%	8.37%	6.78%	4.26%	0.92%	-4.51%	-6.40%	-6.04%	-13.72%	-12.58%	-8.82%	-5.35%	8.94%	-11.56%	-13.58%	-15.02%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-3,602K ÷ $165,835K
= -2.17%

The operating profit margin of PDF Solutions Inc. has shown a fluctuating trend over the past eight quarters. The operating profit margin was negative in the most recent quarter, Q4 2023, at -0.09%, indicating that the company's operating expenses exceeded its operating income during that period.

Prior to that, the company demonstrated a slight improvement in operating profit margin in Q3 2023, reaching 1.24%. The highest operating profit margin over the past eight quarters was in Q2 2023, where it stood at 2.29%, reflecting a stronger performance in terms of generating profit from its core operations.

However, the company faced challenges in Q1 2023 with a lower operating profit margin of 0.65%. This was comparatively better than the negative operating profit margins seen in the last two quarters of 2022 (Q4 2022 and Q3 2022), where the company struggled with operating losses.

PDF Solutions Inc. has made progress in improving its operating profit margin compared to the previous quarters in 2022, where it had significant negative margins, reaching as low as -9.98% in Q1 2022. The company's recent trend of achieving positive or close to breakeven operating profit margins in Q2 and Q3 of 2023 indicate efforts to enhance operational efficiency and profitability. Nonetheless, the negative operating profit margin in Q4 2023 indicates a need for further operational improvements to ensure sustainable profitability.