Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
MICHAELS KIMON
   2. Issuer Name and Ticker or Trading Symbol
PDF SOLUTIONS INC [PDFS] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Co-VP of Client Services
(Last)
(First)
(Middle)
333 WEST SAN CARLOS STREET, SUITE 700		 3. Date of Earliest Transaction (Month/Day/Year)
10/27/2005
(Street)

SAN JOSE, CA 95110		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 10/31/2005   S   100 D $ 14.7 1,527,976 D  
Common Stock 10/31/2005   S   200 D $ 14.715 1,527,776 D  
Common Stock 10/31/2005   S   100 D $ 14.73 1,527,676 D  
Common Stock 10/31/2005   S   500 D $ 14.734 1,527,176 D  
Common Stock 10/31/2005   S   300 D $ 14.7467 1,526,876 D  
Common Stock 10/31/2005   S   100 D $ 14.75 1,526,776 D  
Common Stock 10/31/2005   S   500 D $ 14.758 1,526,276 D  
Common Stock 10/31/2005   S   200 D $ 14.765 1,526,076 D  
Common Stock 10/31/2005   S   400 D $ 14.77 1,525,676 D  
Common Stock 10/31/2005   S   600 D $ 14.785 1,525,076 D  
Common Stock 10/31/2005   S   8 D $ 14.79 1,525,068 D  
Common Stock 10/31/2005   S   300 D $ 14.7967 1,524,768 D  
Common Stock 10/31/2005   S   400 D $ 14.8 1,524,368 D  
Common Stock 10/31/2005   S   400 D $ 14.805 1,523,968 D  
Common Stock 10/31/2005   S   600 D $ 14.81 1,523,368 D  
Common Stock 10/31/2005   S   400 D $ 14.825 1,522,968 D  
Common Stock 10/31/2005   S   500 D $ 14.834 1,522,468 D  
Common Stock 10/31/2005   S   700 D $ 14.84 1,521,768 D  
Common Stock 10/31/2005   S   300 D $ 14.8433 1,521,468 D  
Common Stock 10/31/2005   S   900 D $ 14.85 1,520,568 D  
Common Stock 10/31/2005   S   100 D $ 14.86 1,520,468 D  
Common Stock 10/31/2005   S   203 D $ 14.87 1,520,265 D  
Common Stock 10/31/2005   S   597 D $ 14.88 1,519,668 D  
Common Stock 10/31/2005   S   400 D $ 14.885 1,519,268 D  
Common Stock 10/31/2005   S   300 D $ 14.8867 1,518,968 D  
Common Stock 10/31/2005   S   800 D $ 14.89 1,518,168 D  
Common Stock 10/31/2005   S   200 D $ 14.9 1,517,968 D  
Common Stock 10/31/2005   S   600 D $ 14.9033 1,517,368 D  
Common Stock 10/31/2005   S   500 D $ 14.904 1,516,868 D  

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
2001 Stock Plan Option (Right to Buy) $ 14.58 10/27/2005   A   24,000     (1) 10/26/2015 Common Stock 24,000 $ 0 24,000 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
MICHAELS KIMON
333 WEST SAN CARLOS STREET
SUITE 700
SAN JOSE, CA 95110		   X     Co-VP of Client Services  

Signatures

 /s/ P. Steven Melman, Attorney-in-Fact for Kimon W. Michaels   10/31/2005
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Of the total shares subject to the option (the "Total Shares") 25% vest on October 27, 2006 and 1/48th of the Total Shares vest on the 27th day of each month thereafter, provided that the reporting person remains an employee or consultant of PDFS.
 
Remarks:
This Form 4 is the first of two Form 4 reports filed on October 31, 2005 regarding the Reporting Person's sale of Common Stock on October 31, 2005. This Form includes a stock option grant awarded on October 27,2005.

Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.

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