SOURCE: FormFactor

January 28, 2010 16:05 ET

FormFactor, Inc. Reports Fourth Quarter and Annual Results

LIVERMORE, CA--(Marketwire - January 28, 2010) - FormFactor, Inc. (NASDAQ: FORM) today announced its financial results for the fourth quarter of fiscal 2009, that ended on December 26, 2009. Quarterly revenues were $33.0 million, down 24.6% from $43.8 million in the third quarter of fiscal 2009, and down 17.3% from $39.9 million in the fourth quarter of fiscal 2008.

For fiscal 2009, FormFactor posted revenue of $135.3 million, down 35.6% from $210.2 million in fiscal 2008.

Net loss for the fourth quarter of fiscal 2009 was $28.0 million or $(0.56) per share, compared to a net loss for the third quarter of fiscal 2009 of $19.4 million or $(0.39) per share and a net loss for the fourth quarter of fiscal 2008 of $30.0 million or $(0.61) per share. Net loss for fiscal 2009 was $155.7 million or $(3.15) per share, compared to a net loss for fiscal 2008 of $80.6 million or $(1.65) per share.

On a non-GAAP basis, net loss for the fourth quarter of fiscal 2009 was $22.8 million or $(0.46) per share, compared to a net loss for the third quarter of fiscal 2009 of $19.4 million or $(0.39) per share and a net loss for the fourth quarter of fiscal 2008 of $23.6 million or $(0.48) per share. On a non-GAAP basis, net loss for fiscal 2009 was $88.6 million or $(1.79) per share, compared to a net loss for fiscal 2008 of $57.0 million or $(1.17) per share. A reconciliation of GAAP to non-GAAP net loss and net loss per share is provided in the schedules included below.

"Although our Q4 results reflect delays in the timing of our customers' technology transitions, tooling cycles and volume plans, exiting the quarter, we are encouraged by the uptake in interest and orders we experienced from a broader customer base," said Mario Ruscev, CEO of FormFactor. "In 2009, in addition to delivering new technologies for our existing products, which helped us expand our share and customer reach, we also launched our next generation DRAM and Flash memory wafer probe cards incorporating our new product architectures. We are pleased by the customer reception of our new products, and we believe that these new technologies and products are critical to meeting customers' reduced lead times and enabling FormFactor's growth and expansion into markets we have not fully addressed. Although the timing of the recovery is still uncertain, we remain confident that we will return to growth in 2010."

The company has posted its revenue breakdown by region and market segment and GAAP to non-GAAP reconciliation information on the Investors section of its website at www.formfactor.com. FormFactor will conduct a conference call at 1:30 p.m. PST, or 4:30 p.m. EST, today. The public is invited to listen to a live web cast of FormFactor's conference call on the Investors section of the company's website at www.formfactor.com.

A telephone replay of the conference call will be available approximately two hours after the conclusion of the call. The telephone replay will be available through February 1, 2010, 9:00 p.m. Pacific Standard Time, and can be accessed by dialing 888-203-1112 (domestic) or 719-457-0820 (international) and entering confirmation code 1210545.

About FormFactor:

Founded in 1993, FormFactor, Inc. (NASDAQ: FORM) is the leader in advanced wafer probe cards, which are used by semiconductor manufacturers to electrically test integrated circuits, or ICs. The company's wafer sort, burn-in and device performance testing products move IC testing upstream from post-packaging to the wafer level, enabling semiconductor manufacturers to lower their overall production costs, improve yields, and bring next-generation devices to market. FormFactor is headquartered in Livermore, California with operations in Europe, Asia and North America. For more information, visit the company's website at www.formfactor.com.

FormFactor and the FormFactor logo are registered trademarks of FormFactor, Inc. All other product, trademark, company or service names mentioned herein are the property of their respective owners.

Forward-looking Statements

Statements in this press release that are not strictly historical in nature are forward-looking statements within the meaning of the federal securities laws, including statements regarding operations, business outlook, demand for our products and future growth. These forward-looking statements are based on current information and expectations that are inherently subject to change and involve a number of risks and uncertainties. Actual events or results might differ materially from those in any forward-looking statement due to various factors, including, but not limited to: changes in the market environment, including the demand for certain semiconductor devices, including DRAM and Flash memory devices; the company's ability to align its operating plans and structure with the current business environment to improve its operating efficiency; the company's ability to develop innovative testing technologies, to timely deliver and qualify new products that meet its customers' reduced lead times, testing requirements and lower their overall cost of test, and that enable the company to grow and expand into markets it has not fully addressed; and the timing of customers' technology transitions, tooling cycles and volume ramps and their effect on the company's future growth. Additional information concerning factors that could cause actual events or results to differ materially from those in any forward-looking statement is contained in the company's Form 10-K for the annual period ended December 27, 2008 and the company's filings on Form 10-Q for the quarterly periods in its fiscal 2009 as filed with the Securities and Exchange Commission ("SEC"), and subsequent SEC filings. Copies of the company's SEC filings are available at http://investors.formfactor.com/edgar.cfm. The company assumes no obligation to update the information in this press release, to revise any forward-looking statements or to update the reasons actual results could differ materially from those anticipated in forward-looking statements.


                           FORMFACTOR, INC.
             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               (In thousands, except per share amounts)
                             (Unaudited)

                              Three Months Ended      Twelve Months Ended
                            ----------------------  ----------------------
                             December    December    December    December
                                26,         27,         26,         27,
                               2009        2008        2009        2008
                             ----------  ----------  ----------  ----------
 Revenues                   $   32,995  $   39,889  $  135,335  $  210,189
 Cost of revenues               35,797      39,300     135,804     173,926
                            ----------  ----------  ----------  ----------
 Gross profit (loss)            (2,802)        589        (469)     36,263
                            ----------  ----------  ----------  ----------

 Operating expenses:
  Research and development      15,686      16,221      57,509      65,509
  Selling, general and
   administrative               16,489      26,170      78,428      95,208
  Restructuring charges            837         473       8,780       9,157
  Impairment of long-lived
   assets                            -       4,400           -       4,400
                            ----------  ----------  ----------  ----------
   Total operating expenses     33,012      47,264     144,717     174,274
                            ----------  ----------  ----------  ----------
 Operating loss                (35,814)    (46,675)   (145,186)   (138,011)

 Interest income, net              711       1,638       3,282      12,446
 Other income (expense),
  net                              385         249        (535)        653
                            ----------  ----------  ----------  ----------
 Loss before income taxes      (34,718)    (44,788)   (142,439)   (124,912)
 Provision for (benefit
  from) income taxes            (6,755)    (14,828)     13,214     (44,291)
                            ----------  ----------  ----------  ----------

 Net loss                   $  (27,963) $  (29,960) $ (155,653) $  (80,621)
                            ==========  ==========  ==========  ==========

 Net loss per share:
  Basic and Diluted         $    (0.56) $    (0.61) $    (3.15) $    (1.65)
                            ==========  ==========  ==========  ==========

Weighted-average number of
 shares used in per share
 calculations:

  Basic and Diluted             49,755      49,061      49,483      48,905
                            ==========  ==========  ==========  ==========



Reconciliation of Non-GAAP Net loss:

                              Three Months Ended      Twelve Months Ended
                            ----------------------  ----------------------
                             December    December    December    December
                                26,         27,         26,         27,
                               2009        2008        2009        2008
                            ----------  ----------  ----------  ----------

 GAAP Net loss              $  (27,963) $  (29,960) $ (155,653) $  (80,621)
  Deferred tax valuation
   allowance                         -           -      44,683           -
  Stock-based compensation
   related to option
   modification, net of
   related income-tax
   impact *                         39           -       1,616           -
  Stock-based
   compensation, net of
   related income-tax
   impact *                      4,325       3,326      14,926      15,265
  Restructuring charges,
   net of related
   income-tax impact               787         292       5,805       5,653
  Impairment of long-lived
   assets, net of related
   income-tax impact                 -       2,717           -       2,717
                            ----------  ----------  ----------  ----------
 Non-GAAP Net loss          $  (22,812) $  (23,625) $  (88,623) $  (56,987)
                            ==========  ==========  ==========  ==========

 Non-GAAP Net loss per
  share:
  Basic and Diluted         $    (0.46) $    (0.48) $    (1.79) $    (1.17)
                            ==========  ==========  ==========  ==========

Weighted-average number of
 shares used in per share
 calculations:
  Basic and Diluted             49,755      49,061      49,483      48,905
                            ==========  ==========  ==========  ==========


*  There was no related income tax impact to stock-based compensation in
   the third and fourth quarters of fiscal 2009 as a result of the
   valuation allowance recorded after the second quarter.




                       FORMFACTOR, INC.
             CONDENSED CONSOLIDATED BALANCE SHEETS
      (In thousands, except share and per share amounts)
                         (Unaudited)

                                                December 26,   December 27,
                                                    2009          2008
                                                ------------  -------------
 ASSETS
 Current assets:
  Cash and cash equivalents                     $    122,043  $     337,926
  Marketable securities                              327,192        184,968
  Accounts receivable, net                            29,412         34,127
  Inventories                                         25,548         18,788
  Deferred tax assets, net                             3,296         23,039
  Refundable income taxes                             26,774         29,413
  Prepaid expenses and other current assets           12,346         14,702
                                                ------------  -------------
    Total current assets                             546,611        642,963

  Restricted cash                                        680            680
  Property and equipment, net                         97,758        113,813
  Deferred tax assets, net                                68         20,580
  Other assets                                         8,717          7,674
                                                ------------  -------------
    Total assets                                $    653,834  $     785,710
                                                ============  =============

 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
  Accounts payable                              $     29,250  $      33,214
  Accrued liabilities                                 22,948         25,693
  Income taxes payable                                   481          1,904
  Deferred revenue                                    10,856          4,946
  Deferred rent                                          469            452
                                                ------------  -------------
    Total current liabilities                         64,004         66,209
  Long-term income taxes payable                       6,423          7,732
  Deferred rent and other liabilities                  5,626          5,705
                                                ------------  -------------
    Total liabilities                                 76,053         79,646
                                                ------------  -------------
 Stockholders' equity
 Common stock, $0.001 par value                           50             49
 Additional paid-in capital                          630,333        602,295
 Accumulated other comprehensive income                1,253          1,922
 Accumulated deficit                                 (53,855)       101,798
                                                ------------  -------------
    Total stockholders' equity                       577,781        706,064
                                                ------------  -------------
    Total liabilities and stockholders' equity  $    653,834  $     785,710
                                                ============  =============

Contact Information

  • Investor Contact:
    Michael Magaro
    Investor Relations
    (925) 290-4321
    Email Contact

    Trade Press Contact:
    David Viera
    Corporate Communications
    (925) 290-4681
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