SOURCE: FormFactor

April 29, 2008 16:05 ET

FormFactor, Inc. Announces First Quarter 2008 Financial Results

Quarterly Revenues of $65.7 Million, Down 36% Year Over Year; Net Loss for the Quarter Includes Execution Impact of Global Cost Reduction Plan

LIVERMORE, CA--(Marketwire - April 29, 2008) - FormFactor, Inc. (NASDAQ: FORM) today announced its financial results for the first quarter of fiscal 2008, ended March 29, 2008. Quarterly revenues were $65.7 million, down 45.5% from $120.5 million in the fourth quarter of fiscal 2007, and down 35.8% from $102.3 million in the first quarter of fiscal 2007.

Net loss for the first quarter of fiscal 2008 was $18.0 million or ($0.37) per share on a diluted basis, which included $4.5 million or $0.09 per share of stock-based compensation, net of tax. This compares to net income for the fourth quarter of fiscal 2007 of $14.4 million or $0.29 per share on a diluted basis, including $4.3 million or $0.09 per share of stock-based compensation, net of tax. Net income for the first quarter of fiscal 2007 was $15.2 million or $0.31 per share on a diluted basis, which included $4.8 million or $0.10 per share of stock-based compensation, net of tax. First quarter of fiscal 2008 results also include approximately $5.3 million in restructuring costs related to our global cost reduction plan implemented during the quarter.

"As we reported earlier this month, current weakness in the DRAM market has impacted our business, as customers have been dramatically delaying test capacity expansions and pushing out technology transitions," stated Mario Ruscev, President of FormFactor. "FormFactor is taking appropriate measures to better align operations and expenses with the current market environment, while continuing our strategic investments in R&D to maintain our technology leadership and position us for the future."

The company has posted its revenue breakdown by region and market segment 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 May 1, 2008 at 6:30 p.m. PDT and can be accessed by dialing (888) 286-8010 or (617) 801-6888 and entering confirmation code 40225130.

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: the demand for certain semiconductor devices, including DRAM devices; the rate at which semiconductor manufacturers implement manufacturing capability changes, make the transition to smaller nanometer technology nodes and implement tooling cycles; and the company's ability to bring operations and expenses in line with the current market environment, to continue strategic investments in R&D to maintain its technology leadership and position itself for the future, to develop and deliver innovative technologies, to enforce its intellectual property rights, and to execute measures for increasing productivity and supporting 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 fiscal year ended December 29, 2007, 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.
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                  (In thousands, except per share data)
                                (Unaudited)

                                                     Three Months Ended
                                                   March 29,    March 31,
                                                      2008        2007
                                                  -----------  -----------

Revenues                                          $    65,703  $   102,271
Cost of revenues                                       53,131       47,988
                                                  -----------  -----------
Gross margin                                           12,572       54,283
                                                  -----------  -----------

Operating expenses:
   Research and development                            16,388       14,102
   Selling, general and administrative                 22,658       22,928
   Restructuring                                        5,320            -
                                                  -----------  -----------
        Total operating expenses                       44,366       37,030
                                                  -----------  -----------
Operating income (loss)                               (31,794)      17,253

Interest income                                         4,875        5,444
Other income (expense)                                    793         (119)
                                                  -----------  -----------
                                                        5,668        5,325

Income (loss) before income taxes                     (26,126)      22,578
(Provision) benefit for income taxes                    8,165       (7,367)
                                                  -----------  -----------

Net income (loss)                                 $   (17,961) $    15,211
                                                  ===========  ===========

Net income (loss)  per share:
  Basic                                           $     (0.37) $      0.32
                                                  ===========  ===========

  Diluted                                         $     (0.37) $      0.31
                                                  ===========  ===========

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

Basic                                                  48,743       47,384
                                                  ===========  ===========

Diluted                                                48,743       49,060
                                                  ===========  ===========




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

                                                   March 29,   December 29,
                                                      2008         2007
                                                  ------------ ------------

ASSETS
Current assets:
   Cash and cash equivalents                      $    400,634 $    315,232
   Marketable securities                               155,083      254,814
   Accounts receivable, net                             57,214       69,486
   Inventories                                          26,610       29,309

   Deferred tax assets                                  18,121       17,995
   Refundable income taxes                               9,207        2,043
   Prepaid expenses and other current assets            12,359       13,461
                                                  ------------ ------------
      Total current assets                             679,228      702,340

Restricted cash                                          2,250        2,250

Property and equipment, net                            126,222      130,882

Deferred tax assets                                     11,709       10,038
Other assets                                             9,780        9,812
                                                  ------------ ------------
      Total assets                                $    829,189 $    855,322
                                                  ============ ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Accounts payable                               $     34,188 $     42,893
   Accrued liabilities                                  21,650       30,029
   Income tax payable                                      100        1,328
   Deferred rent                                           460          462
   Deferred revenue and customer advances                5,674        5,535
                                                  ------------ ------------
      Total current liabilities                         62,072       80,247

Long term tax payable                                   12,658       12,248
Deferred rent and other long term liabilities            5,973        5,877
                                                  ------------ ------------
      Total liabilities                                 80,703       98,372

Stockholders' equity:
   Common stock, $0.001 par value                           49           49
   Additional paid in capital                          582,534      573,553
   Accumulated other comprehensive loss                  1,445          929
   Retained earnings                                   164,458      182,419
                                                  ------------ ------------
      Total stockholders' equity                       748,486      756,950
                                                  ------------ ------------
      Total liabilities and stockholders' equity  $    829,189 $    855,322
                                                  ============ ============

Contact Information

  • Contacts:

    FormFactor, Inc.
    David Viera
    Corporate Communications
    (925) 290-4681
    Email Contact

    Investor Relations
    Michael Magaro
    (925) 290-4949
    Email Contact