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| (Mark One) |
|------------|
| x          | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)  OF THE SECURITIES EXCHANGE ACT OF 1934 |
|       | For the fiscal year ended December 31, 2010 |
|       |   |
| or         |
| o          | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|       | For the transition period from          to |

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| Delaware                                             |   | 25-1701361          |
|------------------------------------------------------|--------|---------------------|
| (State or Other Jurisdiction of                      |   | (I.R.S. Employer    |
| Incorporation or Organization)                       |   | Identification No.) |
|                                                 |   |                |
| 333 West San Carlos Street, Suite 700 |   |                |
| San Jose, California                            |   | 95110               |
| (Address of Principal Executive Offices)             |   | (Zip Code)          |

| Title of each class    |   | Name of each exchange on which registered |
|---------------------------------------|--------|-------------------------------------------------------------------------|
| Common Stock, $0.00015 par value |   | The NASDAQ Stock Market LLC                                             |

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| Large accelerated filer o |   | Accelerated filer x                      |   | Non-accelerated filer o |   | Smaller reporting company o |
|--------------------------------|--------|-----------------------------------------------|--------|------------------------------|--------|----------------------------------|
|                           |   | (Do not check if a smaller reporting company) |   |                         |

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| PART III |
|---------------|
| Item 10.      | Directors, Executive Officers and Corporate Governance | 5 |
| Item 11.      | Executive Compensation | 8 |
| Item 12.      | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 24 |
| Item 13.      | Certain Relationships and Related Transactions and Director Independence | 26 |
| Item 14.      | Principal Accounting Fees and Services | 27 |
| Item 15.      | Exhibits | 28 |

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| Name                    |   | Position                                                  |   | Age    |
|-------------------------|--------|-----------------------------------------------------------|--------|--------|
|                    |   |                                                      |   |   |
| Class I Directors       |   |                                                      |   |   |
| Thomas Caulfield, DES   |   | Director                                                  |   | 52     |
| R. Stephen Heinrichs    |   | Director                                                  |   | 64     |
| Albert Y.C. Yu, Ph.D.   |   | Director                                                  |   | 71     |
| Class II Directors      |   |                                                      |   |   |
| Lucio L. Lanza          |   | Chairman of the Board                                     |   | 66     |
| Kimon Michaels, Ph.D.   |   | Vice President,  Products and Solutions and Director |   | 44     |
| Class III Director      |   |                                                      |   |   |
| John K. Kibarian, Ph.D. |   | Chief Executive Officer, President and Director           |   | 47     |

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| Director                |   | Nominating Committee |   | Compensation Committee |   | Audit and Corporate Governance Committee |   | SpecialOptions Committee |   | Strategic Committee |   |
|-------------------------|--------|----------------------|--------|------------------------|--------|------------------------------------------|--------|--------------------------|--------|---------------------|--------|
| Thomas Caulfield, DES   |   | X                    |   | Chair                  |   | X                                        |   |                     |   |                |   |
| R. Stephen Heinrichs    |   | X                    |   | X                      |   | Chair                                    |   |                     |   | X                   |   |
| Albert Y.C. Yu, Ph.D.   |   | Chair                |   | X                      |   |                                     |   |                     |   |                |   |
| Lucio L. Lanza*         |   |                 |   |                   |   | X                                        |   |                     |   | X                   |   |
| Kimon Michaels, Ph.D.   |   |                 |   |                   |   |                                     |   |                     |   |                |   |
| John K. Kibarian, Ph.D. |   |                 |   |                   |   |                                     |   | X                        |   | X                   |   |

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|   | · | recommending the engagement of the independent registered public accounting firm; |
|--------|--------|-----------------------------------------------------------------------------------|

|   | · | monitoring the effectiveness of our internal and external audit efforts; |
|--------|--------|--------------------------------------------------------------------------|

|   | · | monitoring and assessing the effectiveness of our financial and accounting organization and the quality of our system of internal accounting controls; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | overseeing all aspects of the Company’s corporate governance functions on behalf of the Board and making recommendations on corporate governance issues.  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | the Company’s annual incentive compensation is based on balanced performance metrics that promote disciplined progress towards Company goals; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the Company does not offer significant short-term incentives that might drive high-risk investments at the expense of long-term Company value; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the Company’s long-term incentives do not drive high-risk investments at the expense of long-term Company value; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | · | the Company’s compensation programs are weighted towards cash, and the equity component does not promote unnecessary risk taking; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the Company’s compensation awards are capped at reasonable and sustainable levels, as determined by a review of the Company’s economic position and prospects, as well as the compensation offered by comparable companies. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | John K. Kibarian, Ph.D., our Chief Executive Officer and President; |
|--------|--------|---------------------------------------------------------------------|

|   | · | Keith A. Jones, our former Vice President, Finance and Chief Financial Officer; |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | Joy E. Leo, our Executive Vice President and Chief Administration Officer, and current Acting Chief Financial Officer; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | · | Cornelis Hartgring, our Vice President, Client Services and Sales; |
|--------|--------|--------------------------------------------------------------------|

|   | · | Kimon Michaels, Ph.D., our Vice President, Products and Solutions; and, |
|--------|--------|-------------------------------------------------------------------------|

|   | · | David A. Joseph, our former Chief Strategy Officer. |
|--------|--------|-----------------------------------------------------|

|   | · | CEO Compensation.  In response to his request, as well as a desire to conserve equity for other purposes, including to grant equity to other employees, Dr. Kibarian, has not received an increase to his $250,000 base salary or a cash bonus since 2002, and has not received an equity award since 2003.  As a significant stockholder, Dr. Kibarian’s interests are already strongly aligned with the interests of our other stockholders. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Independence.  The Compensation Committee of our Board of Directors develops, reviews and approves each element of executive compensation. The Compensation Committee is comprised solely of independent directors. Additionally, pursuant to its Charter, the Compensation Committee has the authority to engage a compensation consultant and other advisers as it deems appropriate or necessary to support it in fulfilling its responsibilities. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | No Perquisites.  We do not provide perquisites or other personal benefits to our executives officers. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

|   | · | No Tax Gross-Ups.  We do not provide tax gross-ups or other tax reimbursements to our executive officers. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------|

|   | · | Severance and Change in Control Agreements. Except in the case of Ms. Leo, we have not entered into any agreement with our NEOs in connection with the commencement of, or during, their employment with us that provide for severance or other special benefits  upon their future  termination of any of our NEOs’ employment or special benefits in the event of a termination or change of control of the Company. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Exclusive Decision-Making Power. The Compensation Committee retains and does not delegate any of its exclusive power to determine all matters of executive compensation and benefits, although our Chief Executive Officer and the Company's Human Resources department periodically present compensation and benefit recommendations to the Compensation Committee. The Compensation Committee considers, but independently evaluates whether or not to accept, management's recommendations with respect to NEO compensation. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Periodic Review. The Compensation Committee regularly reviews our executive compensation practices and program, including the mix of elements within the program and the allocation between short-term and long-term compensation and cash and non-cash compensation, to ensure that our executive officers are compensated in a manner that is consistent with competitive market practice and sound corporate governance principles, and that rewards them for performance tied to the Company’s primary business objective of delivering sustained high-performance to our customers and stockholders. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Risk Mitigation.  The Compensation Committee regularly considers how the primary elements of our executive compensation program could encourage or mitigate excessive risk-taking, and has structured our program to mitigate risk by rewarding performance tied to several reasonable business objectives, and avoiding incentives that could encourage inappropriate risk-taking by our NEOs. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | to emphasize performance-based compensation that is progressively weighted with seniority level; |
|--------|--------|--------------------------------------------------------------------------------------------------|

|   | · | to align our NEOs’ interest with long-term stockholder value; |
|--------|--------|---------------------------------------------------------------------|

|   | · | to attract and retain talented leadership; and |
|--------|--------|------------------------------------------------|

|   | · | to maintain an executive compensation program that encourages our NEOs to adhere to high ethical standards. |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|    |                 |                           | Objective                    |
|---------|----------------------|--------------------------------|------------------------------|
| Element | Philosophy Statement | Basis forCompensationDecisions | Reward Long-term Performance | Attract & Retain | Align to Stockholder Value | Adhere to High-Ethical Standards |
| Base Salary                         | We provide a base salary to our NEOs as a significant element of their compensation to recruit and retain experienced executives.                                  | Base salaries are initially established through arms-length negotiation at the time the NEO is hired, taking into account the NEO’s qualifications, experience, prior salary, and competitive salary information based on market data obtained from both Radford High-Tech Executive Surveys and proxy data from peer companies.                     |   | X |   | X |
|-------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---|--------|---|
| Annual Discretionary Cash Incentive | We provide an annual incentive cash bonus, payable in the sole discretion of the Compensation Committee, to reward our NEO for individual and Company performance. | After the end of each year, the Compensation Committee reviews the Company's performance and the individual NEO’s performance for the preceding fiscal year using such factors as leadership qualities, business responsibilities, career with the Company, current compensation arrangements, and long-term potential to enhance stockholder value. | X      | X | X      | X |

----

|    |                 |                           | Objective                    |
|---------|----------------------|--------------------------------|------------------------------|
| Element | Philosophy Statement | Basis forCompensationDecisions | Reward Long-term Performance | Attract & Retain | Align to Stockholder Value | Adhere to High-Ethical Standards |

| Annual Discretionary Long-Term Equity Incentive Awards | We provide discretionary annual long-term equity incentive awards, which may consist of a mix of stock options and restricted stock units (“RSUs”), with vesting based on continued service to align our NEOs’ interest with that of our stockholders.                            | In making individual award decisions, the Compensation Committee considers an NEO’s relative job scope, the value of such NEO’s outstanding long-term equity incentive awards, individual and Company performance history, prior contributions to the Company, the size of prior awards, and competitive market data based on proxy data from peer companies. | X | X | X  | X |
|--------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|---|---------|---|
| Stock Options                                          | We grant stock options to our NEOs priced at fair market value on the date of grant, which ties the value of the stock option directly to our future financial performance, to provide further incentives to our NEOs to increase the value of our common stock and to create retention incentives. | In making individual option grant decisions, the Compensation Committee considers the same general criteria as described above for long-term incentive awards.                                                                                                                                                                                                            | X | X | X       | X |

----

|    |                 |                           | Objective                    |
|---------|----------------------|--------------------------------|------------------------------|
| Element | Philosophy Statement | Basis forCompensationDecisions | Reward Long-term Performance | Attract & Retain | Align to Stockholder Value | Adhere to High-Ethical Standards |

| Restricted Stock Units                        | We grant RSU awards to reduce potential dilution to our stockholders, and to provide strong equity-based retention incentives to our NEOs.   | In making individual RSU awards, if any, the Compensation Committee considers the same general criteria as described above for long-term incentives.                                                                                                                                                                                                       | X      | X | X      | X      |
|-----------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---|--------|--------|
| Health and Welfare Benefits, Retirement  | We provide industry-standard programs to provide for the health, welfare and retirement planning of our NEOs.                                | The Compensation Committee has determined that our NEOs may participate on the same terms in the same programs that are available to all employees.                                                                                                                                                                                                   |   | X |   |   |
| Supplemental Life Insurance                   | We provide supplemental life insurance to our NEOs to provide income protection to their beneficiaries in the event of an NEO’s death. | The Compensation Committee has determined to provide our NEOs with supplemental life insurance equal to the lesser of $200,000 or two times the NEO’s base salary. The amounts of the premiums for this supplemental life insurance that the Company pays on behalf of each NEO are set forth below in the “Summary Compensation Table.” |   | X |   |   |

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----

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|   | THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF PDF SOLUTIONS, INC. |
|--------|-----------------------------------------------------------------------------|
|   |                                                                        |
|   | Thomas Caulfield, DES, Chair                                                |
|   | Albert Y.C. Yu, Ph.D.                                                       |
|   | R. Stephen Heinrichs                                                        |

----

| Name & Principal Position | Year   | Salary ($) | Bonus ($)     | StockAwards($)(1) | OptionAwards($)(1) | All OtherCompensation($)(2) | Total ($)      |
|------------------------------------|--------|------------|---------------|-------------------|--------------------|-----------------------------|----------------|
| John K. Kibarian                   | 2010   |       |  250,000 | -                 | -                  | -                           | 200            | 250,200 |
| Chief Executive Officer,           | 2009   |       | 250,000       | -                 | -                  | -                           | 200            | 250,200 |
| President and Director             | 2008   |       | 250,000       | -                 | 56,800             | -                           | 200            | 307,000 |
|                               |   |       |          |              |               |                        |           |   |
| Keith Jones                        | 2010   |       | 44,000        | -                 | -                  | -                           | 23,100 (4)     |        67,100 |
| Former Vice President of Finance   | 2009   |       | 200,000       |              | 107,800            | 45,300                      | 200            | 353,300 |
| and Chief Financial Officer (3)    | 2008   |       | 200,000       | 10,000            | 272,600            | -                           | 200            | 482,800 |
|                               |   |       |          |              |               |                        |           |   |
| Joy E. Leo                         | 2010   |       | 270,000       | -                 |               | -                           | 200            | 270,200 |
| Executive Vice President, Chief    | 2009   |       | 270,000       | 89,400(5)         | -                  | 98,600                      | 200            | 458,200 |
| Administration Officer and current | 2008   |       | 125,800       | 75,600(5)         | -                  | 825,000                     | 100            | 1,026,500 |
| Acting Chief Financial Officer     |   |       |          |              |               |                        |           |   |
|                               |   |       |          |              |               |                        |           |   |
| Cornelis (Cees) Hartgring          | 2010   |       | 240,000       | -                 | -                  | -                           | 200            | 240,200 |
|  Vice President, Client       | 2009   |       | 240,000       | -                 | -                  | 51,700                      | 200            | 291,900 |
|   Services and Sales     | 2008   |       | 237,200       | 17,000            | 266,700            | -                           | 200            | 521,100 |
|                               |   |       |          |              |               |                        |           |   |
| Kimon W. Michaels                  | 2010   |       | 210,000       | -                 | -                  | -                           | 200            | 210,200 |
| Vice President, Products           | 2009   |       | 210,000       | -                 | 135,600            |                        | 200            | 345,800 |
| and Solutions and Director         | 2008   |       | 210,000       | 10,000            | 277,700            | -                           | 200            | 497,900 |
|                               |   |       |          |              |               |                        |           |   |
| David A. Joseph                    | 2010   |       | 123,000       | -                 | -                  | 11,800 (7)                  | 122,300 (3)(8) | 257,100 |
| Former Chief Strategy Officer (6)  | 2009   |       | 246,000       | -                 | 142,600            | -                           | 200            | 388,800 |
|                               | 2008   |       | 246,000       | 12,000            | 273,400            | -                           | 200            | 531,600 |

| (1)   | The amounts reported in these columns reflect the aggregate grant date fair value for financial statement reporting purposes for stock options and restricted stock unit awards granted in that fiscal year as determined in accordance with the Financial Accounting Standards Board Accounting Standards Codification Topic 718, or FASB ASC Topic 718. These amounts reflect our accounting expense for these awards and do not represent the actual economic value that may be realized by the Named Executive Officers. There can be no assurance that these amounts will ever be realized. For information on the assumptions used in valuing these awards, refer to the Note to the consolidated financial statements contained in the Company's Annual Report on Form 10-K and/or Form 10-K/A for the fiscal year in which the award was granted titled "Stockholder's Equity". |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Unless indicated otherwise, the amounts reported represent the dollar value of premiums for term life insurance paid by us on behalf of each Named Executive Officer during the fiscal years ended December 31, 2008, 2009, and 2010.  There is no cash surrender value under these life insurance policies. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)  | Mr. Jones resigned as our Vice President of Finance and Chief Financial Officer effective March 18, 2010. |
|-----------|-----------------------------------------------------------------------------------------------------------|

| (4) | This amount includes amounts received by the executive officer for accrued paid time off paid at the time of termination of employment. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

| (5) | This amount represents a retention bonus agreed to through arms-length negotiation at the time Ms. Leo was hired and set forth in the offer letter between Ms. Leo and the Company effective as of July 9, 2008. In agreeing to pay this retention bonus, the Company took into account Ms. Leo's qualifications, experience, prior salary, and competitive salary information for companies that are comparable to ours.  |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Mr. Joseph resigned as our Chief Strategy Officer effective June 30, 2010. |
|-----|----------------------------------------------------------------------------|

| (7)  | In connection with Mr. Joseph’s departure from the Company, a stock option award that was previously issued to him was modified so that it would continue vesting, on the original vesting schedule, following termination of his employment during a period in which he provided consulting services to the Company through February 28, 2011.  The amount shown represents the incredmental fair value of the modified award. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)  | This amount includes consulting fees paid to Mr. Joseph following the termination of his employment during a transition period that continued through February 28, 2011. |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Name            | Grant Date | All OtherStockAwards:Numberof Sharesof Stockor Units(#) | All OtherOptionAwards:Number ofSecuritiesUnderlyingOptions(#) | Exercise orBase Priceof OptionAwards($/Sh) | Grant DateFair Valueof Stock andOptionAwards ($)(1) |
|-----------------|------------|---------------------------------------------------------|---------------------------------------------------------------|--------------------------------------------|-----------------------------------------------------|
| David A. Joseph | -          | -                                                       | -                                                             | -                                          | $11,800                                             |

|   | (1) | In connection with Mr. Joseph’s departure from the Company, a stock option award that was previously issued to him was modified so that it would continue vesting, on the original vesting schedule, following termination of his employment during a transition period in which he provided consulting services to the Company. The amount shown represents the incremental fair value of the modified award. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                      |   |       Grant Date               |   |   | Number ofSecuritiesUnderlyingUnexercisedOptions (#)Exercisable |   |   | Number ofSecuritiesUnderlyingUnexercisedOptions (#)Unexercisable (1) |   |   | OptionExercisePrice ($) |   |   | OptionExpirationDate                       |   |   | Number ofShares orUnits ofStock ThatHave NotVested (#) |   |   | MarketValue of Shares or Units ofStock ThatHave NotVested($) |   |
|---------------------------|--------|--------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------|--------|--------|------------------------------|--------|--------|--------------------------------------------|--------|--------|--------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------|--------|
| John K. Kibarian          |   | 4/21/20034/21/2003                                           |   |   | 6,66873,332                                                              |   |   | --                                                                             |   |   | 6.396.39                     |   |   | 04/20/201304/20/2013                       |   |   | --                                                                                   |   |   | --                                                                               |   |
|                      |   |                                                         |   |   |                                                                     |   |   |                                                                           |   |   |                         |   |   |                                       |   |   |                                                                                 |   |   |                                                                             |   |
| Keith Jones               |   | -                                                            |   |   | -                                                                        |   |   | -                                                                              |   |   | -                            |   |   | -                                          |   |   | -                                                                                    |   |   | -                                                                                |   |
|                      |   |                                                         |   |   |                                                                     |   |   |                                                                           |   |   |                         |   |   |                                       |   |   |                                                                                 |   |   |                                                                             |   |
| Joy E. Leo                |   | 07/18/200810/29/2009                                         |   |   | 181,24814,583                                                            |   |   | 118,75235,417                                                                  |   |   | 4.883.62                     |   |   | 07/18/201810/29/2019                       |   |   | --                                                                                   |   |   | --                                                                               |   |
|                      |   |                                                         |   |   |                                                                     |   |   |                                                                           |   |   |                         |   |   |                                       |   |   |                                                                                 |   |   |                                                                             |   |
| Cornelis (Cees) Hartgring |   | 09/03/200209/03/200211/07/200710/29/200908/18/200808/18/2008 |   |   | 74,07260,86761,66510,208--                                               |   |   | --18,33524,792--                                                               |   |   | 5.405.408.923.62--           |   |   | 09/03/201209/03/201211/07/201710/29/2019-- |   |   | ----2,777(2)5,953(3)                                                                 |   |   | ----13,40028,700                                                                 |   |
|                      |   |                                                         |   |   |                                                                     |   |   |                                                                           |   |   |                         |   |   |                                       |   |   |                                                                                 |   |   |                                                                             |   |
| Kimon Michaels            |   | 12/15/200908/18/200808/18/2008                               |   |   | ---                                                                      |   |   | ---                                                                            |   |   | ---                          |   |   | ---                                        |   |   | 18,334 (4)1,905(2)4,762(3)                                                           |   |   | 88,4009,20023,000                                                                |   |
|                      |   |                                                         |   |   |                                                                     |   |   |                                                                           |   |   |                         |   |   |                                       |   |   |                                                                                 |   |   |                                                                             |   |
| David A. Joseph           |   | 10/29/2009                                                   |   |   | 10,208                                                                   |   |   | 1,458                                                                          |   |   | 3.62                         |   |   | 10/29/2019                                 |   |   | -                                                                                    |   |   | -                                                                                |   |

|   | (1) | 12/48th of the total share subject to the original option vested on the first anniversary of the grant and 1/48th of the total shares subject to the original option vested and will vest on the grant date day of each month thereafter until fully vested. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | 16.66% of the total original award vested on May 15, 2009 and vested or will vest every six months thereafter until fully vested. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | 12.5 % of the total original award vested on May 15, 2009 and vested or will vest every six months thereafter until fully vested. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | These restricted stock units will vest on September 15, 2011. |
|--------|-----|---------------------------------------------------------------|

----

|                      | Stock Awards                                                                                                                                    |
|---------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| Name                      | Number of SharesAcquired onVesting (#)                                                                                                          | Value Realizedon Vesting ($) (1) |
| John K. Kibarian          | -                                                                                                                                               |   | - |   |
| Keith Jones               | 9,059                                                                                                                                           |   | 43,200 |   |
| Joy E. Leo                | -                                                                                                                                               |   | - |   |
| Cornelis (Cees) Hartgring |                        5,753 |   |      25,300 |   |
| Kimon W. Michaels         |                      22,618            |   | 95,900 |   |
| David A. Joseph           | 38,673                                                                                                                                          |   | 183,500 |   |

----

|   | (1) | The values of the vested awards were determined based on the number of shares that vested multiplied by the per share closingsale price on the NASDAQ Global Market reported for the applicable vesting date. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | vesting acceleration with respect to her outstanding and unvested stock options and/or restricted stock units, as if Ms. Leo provided service to the Company for an additional twelve (12) months after the effective date of her termination; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | twelve (12) months of her then-current annual base salary, paid in accordance with the Company’s standard payroll procedures over a twelve-month period following the termination date, subject to her execution of a mutual release; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | a percentage of her annual incentive target bonus, which is determined by pro rating the percentage of the target bonus that the Company determines has been earned as of the effective date of her termination, had such target bonus been payable at such time, subject to Ms. Leo’s execution of a mutual release; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the Company’s payment of the premiums for Ms. Leo’s COBRA coverage from the last date on which she receives health care coverage as a Company employee until the earlier of: (1) the date that is twelve (12) months following the effective date of her termination; or (2) the date Ms. Leo becomes covered under another employer’s health coverage plan. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Executive Benefits and Payments Upon Termination of Employment       | Value of the Benefit and Payment Amount ($) |
|----------------------------------------------------------------------|---------------------------------------------|
| Vesting acceleration of outstanding and unvested stock options  | 402,400 (1)                                 |   |
| Vesting acceleration of outstanding and unvested RSUs                | - (2)                                       |   |
| Twelve months of annual base salary                                  | 270,000                                     |   |
| A percentage of target bonus                                         | 216,000(3)                                  |   |
| Premiums for COBRA coverage                                          | 7,200                                       |   |
| Total                                                           | 895,600                                     |   |

|   | (1) | The value of outstanding stock options were calculated based on Black-Scholes methodology using the closing price on 12/31/2010 ($4.82), volatility 61.7%, risk free rate of return 1.87%, no dividends and expected term of 5 years. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Ms. Leo did not have any restricted stock units as of December 31, 2010. |
|--------|-----|--------------------------------------------------------------------------|

|   | (3) | Amount is calculated based on the maximum potential annual incentive target bonus, which is 80% of Ms. Leo's base salary. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------|

----

| Name                      | Value of AcceleratedRights ($) |
|---------------------------|--------------------------------|
| John K. Kibarian          | -                              |
| Keith Jones               | -                              |
| Joy E. Leo                | 402,400 (1)                    |
| Cornelis (Cees) Hartgring | 42,100(2)                      |
| Kimon W. Michaels         | $120,500(2)                    |
| David A. Joseph           | -                              |

|   | (1) | Consists of options. The value of outstanding stock options were calculated based on Black-Scholes methodology using the closing price on 12/31/2010 ($4.82), volatility 61.7%, risk free rate of return 1.87%, no dividends and expected term of 5 years. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Consists of restricted stock units. The value was determined by multiplying the number of unvested shares subject to the restricted stock unit award as of December 31, 2010 by the closing market price of the Company's common stock on December 31, 2010 ($4.82 per share). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Compensation Element                                      | 2010 Compensation program                                                   |
|-----------------------------------------------------------|-----------------------------------------------------------------------------|
| Annual cash retainer fee                                  | $25,000 for each non employee director                                      |
| Meeting fees for full Board meetings                      | $1,500 per board meeting in person and $500 for telephone participation     |
| Meeting fees for  Committee meetings       | $1,000 per committee meeting in person and $500 for telephone participation |
| Board of Director’s annual Chair fee                | $30,000 plus an option to purchase 30,000 shares (1)(2)                     |
| Audit and Corporate Governance Committee annual Chair fee | $10,000 plus an option to purchase 10,000 shares (1)(2)                     |
| Compensation Committee annual Chair fee                   | $5,000 plus an option to purchase 7,500 shares (1)(2)                       |
| Nominating Committee annual Chair fee                     | $5,000 plus an option to purchase 5,000 shares (1)(2)                       |
| New Director Fee (one-time fee)                           |  Option to purchase 30,000 shares (2)(3)                               |
| Annual equity award                                       | Option to purchase 15,000 shares (1)(2)                                |

----

| (1) | These stock option grants are awarded each year following the conclusion of the annual meeting of stockholders for such year. |
|-----|-------------------------------------------------------------------------------------------------------------------------------|

| (2) | These stock options vest with respect to 25% of the total shares subject to the option on the first anniversary of the date of grant, and with respect to 1/48th of the total shares subject to the option on the grant date day of each month thereafter until fully vested. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | These stock option grants are awarded at the time a new director is appointed or elected to the Board of Directors. |
|-----|---------------------------------------------------------------------------------------------------------------------|

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| Name                  |   | Fees Earned orPaid in Cash ($) |   | Stock Awards($) |   | Option Awards($) (1) |   | All OtherCompensation |   | Total($) |   |
|-----------------------|--------|---------------------------------------------------------|--------|----------------------|--------|--------------------------------|--------|----------------------------|--------|----------|--------|
| Thomas Caulfield, DES |   | 46,000                                                  |   | -                    |   | 57,100                         |   | -                          |   | 103,100  |   |
| R. Stephen Heinrichs  |   | 49,500                                                  |   | -                    |   | 63,400                         |   | -                          |   | 112,900  |   |
| Albert Y.C. Yu, Ph.D. |   | 40,000                                                  |   | -                    |   | 50,700                         |   | -                          |   | 90,700   |   |
| Lucio Lanza           |   | 65,500                                                  |   | -                    |   | 114,100                        |   | -                          |   | 179,600  |   |

----

|   | (1) | The amounts reported in this column reflect the aggregate grant date fair value for financial statement reporting purposes for the stock options granted in 2010 as determined in accordance with the FASB ASC Topic 718. These amounts reflect our accounting expense for these awards and do not represent the actual value that may be realized by our non-employee directors. There can be no assurance that these amounts will ever be realized. For information on the assumptions used in valuing these stock option grants, refer to the Note to the consolidated financial statements contained in the Company's Annual Report on Form 10-K for 2010 titled "Stockholder's Equity." The number of outstanding stock options held by each non-employee director at the end of 2010 were: Dr. Caulfield (42,500); Mr. Heinrichs (182,945); Mr. Lanza (347,500); and Dr. Yu (42,500). The outstanding and unvested restricted stock units held by each non-employee director at the end of 2010 were: Dr. Caulfield (9,108), and Dr. Yu (13,026). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Plan Category                                          | Number of Securities to be issued Upon Exercise of Outstanding Options, Warrants and Rights(a) | Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights(b) | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (excluding Securities Reflected in Column (a))(c) |
|--------------------------------------------------------|------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|
| Equity Compensation Plans Approved by Stockholders (1) | 3,243,429                                                                                      |                                                                           | $5.43                                                                                                                                          |   | 7,339,953 (2)(3)(4) |   |
| Equity Compensation Plans Not Approved by Stockholders | 209,695 (5)                                                                                    |                                                                           | $8.13                                                                                                                                          |   | 388,919(5) |   |
| Total                                                  | 3,453,124                                                                                      |                                                                           |                                                                                                                                           |   | 7,728,872 |   |

----

| (1) | For a description of these plans, see Note 8 to our Consolidated Financial Statements in the Original Form 10-K. |
|-----|-----------------------------------------------------------------------------------------------------------------------|

| (2) | Includes 5,840,714 shares available for issuance pursuant to options and stock purchase rights under the 2001 Stock Plan. The 2001 Stock Plan includes an "evergreen" feature, which provides for an automatic annual increase in the number of shares available under the plan on the first day of each of our fiscal years, equal to the lesser of 3,000,000 shares, 5% of our outstanding common stock on the last day of the immediately preceding fiscal year, or such amount as is determined by the Board. The 2001 Stock Plan will expire on June 12, 2011. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes 1,499,239 shares available for issuance under the ESPP. The ESPP, designed to comply with Internal Revenue Code Section 423, includes an "evergreen" feature which provides for an automatic annual increase in the number of shares available under the plan on the first day of each of our fiscal years, equal to the lesser of 675,000 shares, 2% of our outstanding common stock on the last day of the immediately preceding fiscal year, or such amount as is determined by our Board.  At the annual meeting of stockholders on May 18, 2010, our stockholders approved an amendment to the ESPP to extend it through May 17, 2020. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Other than in connection with outstanding awards, no shares remain available for issuance pursuant to either of the 1996 Stock Option Plan or the 1997 Stock Plan. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Consists of the Stock Option/Stock Issuance Plan that was assumed by us upon the acquisition of IDS Software Systems, Inc.  Stock options granted under the plan generally vest with respect to 25% of the shares subject to the option one year after the date of grant and then 1/48 of the shares subject to the option each month thereafter.  Options generally expire 10 years after the grant date.  The vesting for certain options is accelerated upon a change in control. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Name and Address of Beneficial Owner                                                          | Amount and Natureof BeneficialOwnership (1) | Percent of Class (1)(2) |
|-----------------------------------------------------------------------------------------------|---------------------------------------------|-------------------------|
| 5% Stockholders:                                                                              |                                        |                    |   |   |
| Burnham Asset Management Corporation                                                          | 2,886,971                                   |                    | 10.48 |   |
|           1325 Avenue of the Americas       |                                        |                    |   |   |
|           New York, NY 10019 (3)            |                                        |                    |   |   |
| T. Rowe Price Associates, Inc.                                                                | 2,700,201                                   |                    | 9.8 |   |
|           100 E. Pratt Street               |                                        |                    |   |   |
|           Baltimore, Maryland 21202 (4)     |                                        |                    |   |   |
| Samjo Capital LLC                                                                             | 2,007,700                                   |                    | 7.3 |   |
|          1325 Avenue of the Americas, 26th Floor |                                        |                    |   |   |
|           New York, New York 10019 (5)      |                                        |                    |   |   |
| John K. Kibarian (6)                                                                          | 2,567,474                                   |                    | 9.17 |   |
| Kimon W. Michaels (7)                                                                         | 1,494,920                                   |                    | 5.34 |   |
|  Directors and Named Executive Officers:                                                 |                                        |                    |   |   |
| John K. Kibarian (6)                                                                          | 2,567,474                                   |                    | 9.17 |   |
| Keith Jones (8)                                                                               | 35,166                                      |                    | * |   |
| Joy Leo (9)                                                                                   | 250,239                                     |                    | * |   |
| Cornelis (Cees) Hartgring (10)                                                                | 262,046                                     |                    | * |   |
| Kimon W. Michaels (7)                                                                         | 1,494,920                                   |                    | 5.34 |   |
| David A. Joseph (11)                                                                          | 276,703                                     |                    | * |   |
| Lucio L. Lanza (12)                                                                           | 496,775                                     |                    | 1.77 |   |
| R. Stephen Heinrichs (13)                                                                     | 127,549                                     |                    | * |   |
| Albert Y.C. Yu (14)                                                                           | 16,145                                      |                    | * |   |
| Thomas Caulfield (15)                                                                         | 19,731                                      |                    | * |   |
| All directors and executive officers as a group (10 persons) (16)                        | 5,546,748                                   |                    | 19.80 |   |

----

| (1) | Beneficial ownership is determined in accordance with SEC rules.  In computing the number of shares beneficially owned by a person, we have included shares for which the named person has sole or shared power over voting or investment decisions.  The number of shares beneficially owned also includes ownership of which the named person has the right to acquire, through conversion, option and warrant exercise or otherwise, within 60 days after March 15, 2011. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (2) | Percentage of beneficial ownership is based on 28,007,862 shares outstanding as of March 15, 2011.  For each named person, the percentage ownership includes stock which the person has the right to acquire within 60 days after March 15, 2011, as described in Footnote 1.  However, such shares shall not be deemed outstanding with respect to the calculation of ownership percentage for any other person. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Based solely on the Schedule 13G Amendment No. 1 filed on February 11, 2011 (the “Burnham 13G Amendment”). These securities are owned by various individual and institutional investors including Burnham Securities Inc. (which owns 305,500 shares, representing 1.1% of the shares outstanding as of filing of the Burnham 13G Amendment), of which Burnham Asset Management Corporation serves as the investment manager with the shared dispositive power over 2,886,971 shares. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Based solely on the Schedule 13G Amendment No. 7 filed on February 11, 2011 (the “T. Rowe Price 13G Amendment”). These securities are owned by various individual and institutional investors including T. Rowe Price Small Cap Stock Fund, Inc. (which owns 1,350,000 shares, representing 4.9% of the shares outstanding as of filing of the T. Rowe Price 13G Amendment), of which T. Rowe Price Associates, Inc. (Price Associates) serves as investment adviser with power to direct investments and/or sole power to vote the securities. For purposes of the reporting requirements of the Securities Exchange Act of 1934, Price Associates is deemed to be a beneficial owner of such securities; however, Price Associates expressly disclaims that it is, in fact, the beneficial owner of such securities. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Based solely on the Schedule 13G that was jointly filed on January 10, 2011 by Samjo Capital LLC (“Samjo Capital”), Samjo Management LLC (“Samjo Management”)  and Andrew Wiener. The Schedule 13G indicates that: (i) Samjo Capital, Samjo Management and Mr. Wiener share voting power and dispositive power over 2,005,000 shares; and, (ii) Mr. Weiner has sole voting power and dispositive power over 2,700 shares. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Includes 80,000 shares issuable upon the exercise of stock options vested as of March 15, 2011. |
|-----|-------------------------------------------------------------------------------------------------|

| (7) | Includes 10,666 shares issuable upon the exercise of vested stock options by Mr. Michaels' spouse and 1,333 stock options that will vest within 60 days after March 15, 2011.  Excludes 89,318 shares of Issuer’s Common Stock held by Mr. Michaels' spouse as separate property. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Includes 5,852 shares of restricted stock units fully vested on April 30, 2010. |
|-----|---------------------------------------------------------------------------------|

| (9) | Includes 216,663 shares issuable upon the exercise of stock options vested as of March 15, 2011 and 14,583 shares issuable upon the exercise of stock options that will vest within 60 days after March 15, 2011. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | Includes 213,270 shares issuable upon the exercise of stock options vested as of March 15, 2011 and 4,791 shares issuable upon the exercise of stock options that will vest within 60 days after March 15, 2011. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | Includes 29,675 shares of restricted stock units fully vested on July 8, 2010. |
|------|--------------------------------------------------------------------------------|

| (12) | Includes 258,434 shares issuable upon the exercise of stock options vested as of March 15, 2011 and 5,625 shares issuable upon the exercise of stock options that will vest within 60 days after March 15, 2011. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (13) | Includes 123,260 shares issuable upon the exercise of stock options vested as of March 15, 2011 and 4,289 shares issuable upon the exercise of stock options that will vest within 60 days after March 15, 2011. |
|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (14) | Includes 8,905 shares issuable upon the exercise of stock options vested as of March 15, 2011 and 938 shares issuable upon the exercise of stock options that will vest within 60 days after March 15, 2011. |
|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (15) | Includes 7,499 shares issuable upon the exercise of stock options vested as of March 15, 2011 and 833 shares issuable upon the exercise of stock options that will vest within 60 days after March 15, 2011. |
|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (16) | Consists of 5,546,748 shares held by our directors and NEOs, of which 838,647 shares are issuable upon the exercise of stock options vested as of March 15, 2011 and 112,392 shares are issuable upon the exercise of stock options that will vest within 60 days after March 15, 2011. |
|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | all directors who serve on the Audit and Corporate Governance, Compensation, and Nominating Committees are independent under the NASDAQ Listing Rules and SEC rules; and |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | all members of the Audit and Corporate Governance Committee meet the additional independence requirement and they do not directly or indirectly receive compensation from the Company other than their compensation as directors. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Fee Category          | Fiscal 2010 Fees |   | Fiscal 2009 Fees |   |
|-----------------------|------------------|--------|------------------|--------|
| Audit Fees (1)        |             | $      | 804,000          |   |   | $ | 574,500 |   |
| Audit-Related Fees(2) |             |   | 6,000            |   |   |   | 10,000 |   |
| Tax Fees              |             |   | -                |   |   |   | - |   |
| All Other Fees(3)     |             |   | 55,000           |   |   |   | - |   |
| Total Fees            |             | $      | 865,000          |   |   | $ | 584,500 |   |

|   | (1) | Represents the aggregate fees billed for professional services rendered in connection with the annual audit of financial statements and internal controls over financial reporting. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Represents aggregate fees billed in 2010 for professional services rendered in connection with delivering consent for the Company’s S-8 filing and in 2009 for services rendered in connection with the Company’s response to an SEC comment letter. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Represents aggregate fees billed in such year for consulting services rendered in connection with our early adoption of EITF08-1. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) The following documents are filed as part of this report: |
|--------|--------------------------------------------------------------------|

|   |   |
|--------|--------|

| ExhibitNumber |   | Description                                                                                                                                                                           |
|---------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.01         |   | Certification of Chief Executive Officer Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 31.02         |   | Certification of Chief Financial Officer Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |

----

|   | PDF SOLUTIONS, INC. |
|--------|---------------------|
|   |                |   |
|   | By:                 | /s/ John K. Kibarian |
|   |                | John K. Kibarian |
|   |                | President and Chief Executive Officer |
|   |                |   |
|   | By:                 | /s/ Joy E. Leo |
|   |                | Joy E. Leo |
|   |                | EVP, Chief Administration Officer and Acting Chief Financial Officer |

| Date           | Signature                       | Title                                                                |
|----------------|---------------------------------|----------------------------------------------------------------------|
|           |                            |                                                                 |
| May 2, 2011    | /s/  JOHN K. KIBARIAN | Director, President and Chief Executive Officer                      |
|           | John K. Kibarian                | (Principal Executive Officer)                                        |
|           |                            |                                                                 |
| May 2, 2011    | /s/  JOY E. LEO       | EVP, Chief Administration Officer and Acting Chief Financial Officer |
|           | Joy E. Leo                      | (Principal Financial and Accounting Officer)                         |
|           |                            |                                                                 |
| April 26, 2011 | /s/ KIMON W. MICHAELS           | Director, Vice President, Products and                               |
|           | Kimon W. Michaels               | Solutions                                                            |
|           |                            |                                                                 |
| May 2, 2011    | *                               | Chairman of the Board of Directors                                   |
|           | Lucio L. Lanza                  |                                                                 |
|           |                            |                                                                 |
| April 29, 2011 | /s/ R. STEPHEN HEINRICHS        | Director                                                             |
|           | R. Stephen Heinrichs            |                                                                 |
|           |                            |                                                                 |
| April 30, 2011 | /s/ THOMAS M. CAULFIELD         | Director                                                             |
|           | Thomas M. Caulfield             |                                                                 |
|           |                            |                                                                 |
| April 26, 2011 | /s/ ALBERT Y.C.YU               | Director                                                             |
|           | Albert Y.C. Yu                  |                                                                 |

| *By:   | /s/  JOHN K. KIBARIAN    |   |
|--------|------------------------------------|--------|
|   | John K. Kibarian, Attorney-in-Fact |   |

----

| ExhibitNumber |   | Description                                                                                                                                                            |
|---------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.01         |   | Certification of Chief Executive Officer Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|          |   |                                                                                                                                                                   |
| 31.02         |   | Certification of Chief Financial Officer Pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |