First Albany upgrades PDF Solutions (PDFS ) to buy from neutral.
Analyst Auguste Richard sees less risk to his estimates in the next couple of quarters. He expects increased design activity at 130 nm and 90 nm process node at several key customers (Texas Instruments, Taiwan Semiconductor, Toshiba) to drive revenues in late 2005 and early 2006.
He says, while the company has tried to use its Gain Share model to drive revenue growth, it's not been easy selling a revenue-per-wafer model to its customers. But he notes the company's managed to boost revenues at each successive process node with its customers.
Richard thinks the company will continue to find ways to monetize its technology. He sees 40 cents 2005 earnings per share and 55 cents 2006 earnings per share.