NEW YORK (TheStreet) -- Shares of PDF Solutions (PDFS) are lower by 27.13% to $12.85 in mid-afternoon trading on Tuesday after the company announced that two of its contracts that were expected to close in the "near future" will likely no longer be signed.
The company, which provides process-design integration technologies to enhance integrated circuit manufacturability, said the contracts would not be signed based on its current discussions with the unnamed client. PDF added it's working on resolving the issue.
PDF said it "cannot predict the timing or success of any such resolution."
Additionally, the company is expecting revenue from its design-to-silicon yield solutions to be negatively impacted by approximately $7 million to $8 million should the contracts be unsigned.
For the 2014 fiscal year, the company is expecting total revenue to be flat compared to fiscal 2013 and to start growing again in fiscal 2015.
Separately, TheStreet Ratings team rates PDF SOLUTIONS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate PDF SOLUTIONS INC (PDFS) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
- You can view the full analysis from the report here: PDFS Ratings Report