Good day, ladies and gentlemen, and welcome to the PDF Solutions, Inc. Conference Call to discuss its Financial Results for the First Quarter ended Friday, March 31, 2018. [Operator Instructions]. As a reminder, this conference is being recorded. If you have not yet received a copy of the corresponding press release, it has been posted to PDF's website at www.pdf.com. Some of the statements that will be made in the course of this conference are forward-looking, including statements regarding PDF's future financial results and performance, growth rates and demand for its solutions. PDF's actual results could differ materially. You should refer to the section entitled Risk Factors on pages 13 through 19 of PDF's Annual Report on Form 10-K for the fiscal year ended December 31, 2017 and similar disclosures and subsequent SEC filings. The forward-looking statements and risks stated in this conference call are based on information available to PDF today. PDF assumes no obligation to update them. Now I'd like to introduce John Kibarian, PDF's President and Chief Executive Officer; and Greg Walker, PDF's Chief Financial Officer. Mr. Kibarian, please go ahead.

Thank you, and welcome everyone. If you've not already seen our earnings press release or written management report, please go to the Investors section of our web site, where both are posted. Today, we will discuss the first quarter of 2018, both business progress as well as the environment we experienced. I'll also describe the business environment we're anticipating for the remainder of the year in our response. First, let me summarize the significant contracts closed in the first quarter; an extension to a 7 nanometer IYR contract, a contract with an IDM for Exensio-Test, contract with an Asian foundry for Exensio-Control and many other contracts for Exensio platform and modules, including Exensio-Test and related services. The market opportunity at logic foundries in all geographies, including China, for the Integrated Yield Ramp solution, which we refer to as IYR, was softer in the quarter. Capital spending reports by semiconductor capital equipment companies indicate that the large spending was driven by memory fabs, while spending at logic foundries was weak. While we have some early adoption of our IYR solution at memory fabs, the primary market for IYR is still logic foundries. As we've been reporting over the past few quarters, with few exceptions, logic foundries has slowed down their investments, and we see the effects and that slowdown on decreased business activity in IYR solutions. We also continue to see mixed 28-nanometer volumes at logic foundries. As a result, our gainshare revenue continues to be lumpy. Beginning in Q1, fortunately, gainshare became the more significant note for gainshare revenue contribution, which we expect to continue through the remainder of the year. Our business activity in areas outside of logic foundries -- technologies continue to be robust. Our newer products, including new applications of our Characterization Vehicle infrastructure, applied primarily to…

Thank you, John. As you may have seen in our earnings release, we have posted in the Investor Relations section of our website, a management report with detailed comments regarding the financial results of PDF for the quarter. Given that, I'm going to focus my verbal comments for the quarter and a few key highlights reflected in those results. Looking at revenue first, as you are aware, the company has adopted ASC 606 or Topic 606 methodology for all revenue reporting, beginning with Q1 in 2018. The company has elected to implement this change using the modified retrospective method. There is a summary of the adjustments related to this change, which is published as part of our Q1 2018 management report, available in the Investor Relations section of our website. Additionally, a detailed description of all the adjustments, impacts and methodology changes related to ASC 606 will be included with our upcoming 10-Q filing. At the summary level, the major adjustments for Q1 are as follows: for opening balances, there was a $5.7 million increase to opening retained earnings, which includes revenue adjustments plus deferred commission expense changes; there is a $1.3 million adjustment to deferred tax liabilities related to the increased opening balance for retained earnings; and then finally, for Q1 activity, the net effect on revenues and costs for Q1 was immaterial and essentially zero. For the remainder of the year, we expect the impact of the new accounting rules to be a reduction of our total revenues for the year of approximately $2 million to $3 million. Now looking at the Q1 results in summary. Total revenues at $24.7 million for the quarter were down $2 million as compared to Q4 2017. Solutions revenues at $18.2 million decreased by $800,000 when compared to Q4 2017, while gainshare…

[Operator Instructions]. And our first question comes from Jon Tanwanteng with CJS Securities.

Good afternoon guys. Thank you for taking my questions.

Sure John.

Last quarter, you provided some growth bogeys for both gainshare and the solutions business. I know you're expecting it to be flat or maybe down this year with ASC 606, but can you break out those segments and maybe with DFI and Exensio in there as well?

Yes, I -- probably not of that detail, but I think, we did talk about gainshare. We were expecting it to be up slightly year-over-year. At this point in time, I think given the Q1 results, we're probably thinking more flat around gainshare, with Exensio and DFI growing and that growth being offset almost completely by decline in the yield ramp business.

Okay. Great. That's helpful. And then for DFI specifically, is there any update or change to the amount of 150 and 250 machines that you're actually planning to ship? Or to be revenue generating condition this year?

No change from our prior discussions on the number of machines or the schedule. We're still expecting to ship 250s around midyear or so.

Great. And then finally, just any other steps to improve DSOs from what you're seeing out there? Either any programs in place? Or is it just the nature of where you're doing business?

I think, it's really getting down to one or two customers. If you go look at the $11 million we collected after the end of the quarter, that brought, almost, all of our customers' balances to nearly current with the exception of two. One of which is very large foundry in China. Based on what we're seeing that they are, basically, slow on payment across the board not just with us. That's one that we are battling every day to get as low as possible. The other one is a situation where the customer has already agreed to pay, we're basically processing a tax filing through the government that's in Asia, that's taking some time to get clear, but it does save us money on withholding tax. So once that's cleared, we know that we'll get paid, which will really leave us, primarily focused on the one large foundry in China.

Great. Finally, just one more, can you just remind us how much more is remaining in your stock buyback program?

I believe, it's about $12 million at this point in time.

Great. Thank you.

At this time, there are no more questions. Ladies and gentlemen, this concludes the program. Thank you for joining us today.