SOURCE: FormFactor

October 28, 2009 16:05 ET

FormFactor, Inc. Reports Third Quarter Results

LIVERMORE, CA--(Marketwire - October 28, 2009) - FormFactor, Inc. (NASDAQ: FORM) today announced its financial results for the third quarter of fiscal 2009, that ended on September 26, 2009. Quarterly revenues were $43.8 million, up 40.4% from $31.2 million in the second quarter of fiscal 2009, and down 16.7% from $52.6 million in the third quarter of fiscal 2008.

Net loss for the third quarter of fiscal 2009 was $23.9 million or $(0.48) per share, compared to a net loss for the second quarter of fiscal 2009 of $65.8 million or $(1.33) per share and a net loss for the third quarter of fiscal 2008 of $14.0 million or $(0.29) per share.

On a non-GAAP basis, net loss for the third quarter of fiscal 2009 was $20.9 million or $(0.42) per share, compared to a net loss for the second quarter of fiscal 2009 of $16.3 million or $(0.33) per share and a net loss for the third quarter of fiscal 2008 of $10.6 million or $(0.22) per share. A reconciliation of third quarter GAAP to non-GAAP net loss and net loss per share is provided in the schedules included below.

"An increase in design activity and volume purchases by memory manufacturers for DDR3 production positively influenced our revenue in Q3," said Mario Ruscev, CEO of FormFactor. "Our efforts to manage costs contributed this quarter to better gross margins, as we continue to focus on opportunities to increase efficiency and return toward profitability."

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. PDT, or 4:30 p.m. EDT, 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. An audio replay of the conference call will also be made available approximately two hours after the conclusion of the call. The audio replay will remain available until October 30th, 2009 at 9:00 p.m. PDT and can be accessed by dialing 888-203-1112 or 719-457-0820 and entering confirmation code 7749295.

Non-GAAP Financial Measures:

This press release highlights the company's financial results on both a GAAP and a non-GAAP basis. The GAAP results include certain charges that are excluded from non-GAAP results. By publishing the non-GAAP measures, management intends to provide investors with additional information to further analyze the company's performance, core results and underlying trends. FormFactor's management evaluates results and makes operating decisions using both GAAP and non-GAAP measures included in this press release. Non-GAAP results are not prepared in accordance with GAAP, and non-GAAP information should be considered a supplement to, and not a substitute for, financial statements prepared in accordance with GAAP. Investors and potential investors are encouraged to review the reconciliation of non-GAAP financial measures to their most directly comparable GAAP measures attached to this press release and on the Investors section of the company's website.

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 business momentum, 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 optimize its operating plans and structure with the business environment; and the company's ability to develop innovative testing technologies and to timely deliver and qualify new products that meet its customer's testing requirements and lower their overall cost of test. 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 fiscal year ended December 27, 2008 and the company's Form 10-Q for the fiscal quarter ended June 27, 2009, both 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.

FORM-F


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

                     Three Months Ended             Nine Months Ended
                ----------------------------  ----------------------------
                September 26,  September 27,  September 26,  September 27,
                    2009           2008           2009           2008
                -------------  -------------  -------------  -------------

Revenues       $      43,773  $      52,584  $     102,340  $     170,300
Cost of
 revenues             36,435         40,583        100,007        134,626
                -------------  -------------  -------------  -------------
Gross profit           7,338         12,001          2,333         35,674
                -------------  -------------  -------------  -------------
Operating
 expenses:
   Research and
    development        13,775         17,079         41,823         49,288
   Selling,
    general and
    administrative     17,366         23,675         61,939         69,038
   Restructuring
    charges                 -            141          7,943          8,684
                -------------  -------------  -------------  -------------
      Total
       operating
       expenses        31,141         40,895        111,705        127,010
                -------------  -------------  -------------  -------------
Operating loss        (23,803)       (28,894)      (109,372)       (91,336)

Interest
 income, net              694          2,805          2,571         10,808
Other income
 (expense),
 net                     (415)           263           (920)           404
                -------------  -------------  -------------  -------------
Loss before
 income taxes         (23,524)       (25,826)      (107,721)       (80,124)
Provision for
 (benefit
 from) income
 taxes                    377        (11,785)        19,969        (29,463)
                -------------  -------------  -------------  -------------
Net loss        $     (23,901) $     (14,041) $    (127,690) $     (50,661)
                =============  =============  =============  =============
Net loss per
 share:
   Basic and
    Diluted     $       (0.48) $       (0.29) $       (2.59) $       (1.04)
                =============  =============  =============  =============
Weighted-average
 number of
 shares used in
 per share
 calculations:
   Basic and
    Diluted            49,582         48,988         49,392         48,855
                =============  =============  =============  =============

Reconciliation of Non-GAAP Net loss:

                     Three Months Ended             Nine Months Ended
                ----------------------------  ----------------------------
                September 26,  September 27,  September 26,  September 27,
                    2009           2008           2009           2008
                -------------  -------------  -------------  -------------

GAAP Net loss   $     (23,901) $     (14,041) $    (127,690) $     (50,661)
   Deferred
    tax
    valuation
    allowance               -              -         44,683              -
   Stock-based
    compensation
    related to
    option
    modification,
    net of
    related
    income-tax
    impact                  -              -          1,577              -
   Stock-based
    compensation,
    net of related
    income-tax
    impact              2,922          3,343          9,100         11,939
   Restructuring
    charges, net
    of related
    income-tax
    impact                  -             87          5,018          5,361
                -------------  -------------  -------------  -------------
Non-GAAP Net
 loss           $     (20,979) $     (10,611) $     (67,312) $     (33,361)
                =============  =============  =============  =============
Non-GAAP Net loss
 per share:
   Basic and
    Diluted     $       (0.42) $       (0.22) $       (1.36) $       (0.68)
                =============  =============  =============  =============
Weighted-average
 number of
 shares used in
 per share
 calculations:
   Basic and
    Diluted            49,582         48,988         49,392         48,855
                =============  =============  =============  =============




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

                                               September 26,  December 27,
                                                   2009           2008
                                               -------------  -------------
ASSETS
Current assets:
  Cash and cash equivalents                    $     149,920  $     337,926
  Marketable securities                              312,687        184,968
  Accounts receivable, net                            48,233         34,127
  Inventories                                         21,166         18,788
  Deferred tax assets                                  3,768         23,039
  Refundable income taxes                             18,130         29,413
  Prepaid expenses and other current assets           11,462         14,702
                                               -------------  -------------
     Total current assets                            565,366        642,963

  Restricted cash                                        680            680
  Property and equipment, net                         96,998        113,813
  Deferred tax assets                                  1,928         20,580
  Other assets                                         3,599          7,674
                                               -------------  -------------
     Total assets                              $     668,571  $     785,710
                                               =============  =============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable                             $      27,450  $      33,214
  Accrued liabilities                                 16,718         25,693
  Income taxes payable                                   105          1,904
  Deferred revenue                                    10,001          4,946
  Deferred rent                                          458            452
                                               -------------  -------------
     Total current liabilities                        54,732         66,209
  Long-term income taxes payable                       6,334          7,732
  Deferred rent and other liabilities                  5,416          5,705
                                               -------------  -------------
     Total liabilities                                66,482         79,646
                                               -------------  -------------
Stockholders' equity
Common stock, $0.001 par value                            50             49
Additional paid-in capital                           626,211        602,295
Accumulated other comprehensive income                 1,720          1,922
Accumulated deficit                                  (25,892)       101,798
                                               -------------  -------------
     Total stockholders' equity                      602,089        706,064
                                               -------------  -------------
     Total liabilities and stockholders'
      equity                                   $     668,571  $     785,710
                                               =============  =============

Contact Information

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

    David Viera
    Corporate Communications
    (925) 290-4681
    Email Contact