SOURCE: FormFactor

FormFactor

April 30, 2014 16:05 ET

FormFactor, Inc. Reports First Quarter Results

LIVERMORE, CA--(Marketwired - Apr 30, 2014) - FormFactor, Inc. (NASDAQ: FORM) today announced its financial results for the first quarter of fiscal 2014 that ended on March 29, 2014. Quarterly revenues were $56.0 million, up 15% from $48.5 million in the fourth quarter of fiscal 2013, and up 6% from $52.6 million in the first quarter of fiscal 2013.

On a GAAP basis, net loss for the first quarter of fiscal 2014 was $(12.7) million, or $(0.23) per fully-diluted share, compared to a net loss for the fourth quarter of fiscal 2013 of $(18.8) million, or $(0.34) per fully-diluted share, and a net loss for the first quarter of fiscal 2013 of $(19.8) million, or $(0.37) per fully-diluted share.

On a non-GAAP basis, net loss for the first quarter of fiscal 2014 was $(2.3) million, or $(0.04) per fully-diluted share, compared to a net loss for the fourth quarter of fiscal 2013 of $(10.9) million, or $(0.20) per fully-diluted share, and a net loss for the first quarter of fiscal 2013 of $(6.9) million, or $(0.13) per fully-diluted share. A reconciliation of GAAP to non-GAAP net loss and net loss per share is provided in the schedules included below.

Cash usage for the first quarter of fiscal 2014 was $(7.1) million, compared to cash usage of $(5.2) million for the fourth quarter of fiscal 2013 and cash usage of $(12.1) million for the first quarter of fiscal 2013. 

"We saw strong momentum in our SoC business during Q1 with increasing customer interest in our product solutions, including copper pillar test solutions," said Tom St. Dennis, CEO of FormFactor, Inc. "We also made significant progress on our recovery from the customer-specific DRAM issues we experienced in 2013. This progress enabled us to both re-engage with the customer and introduce new efficiencies into our operational processes."

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 webcast of FormFactor's conference call on the Investors section of the company's web site 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 May 3, 2014, 9:00 p.m. PDT, and can be accessed by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) and entering confirmation code 28662597. Additionally, the replay will be available on the Investors section of our website, www.formfactor.com.

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.

About FormFactor:

FormFactor, Inc. (NASDAQ: FORM) is a leader in advanced wafer test solutions. The company's advanced wafer probe cards enable semiconductor manufacturers to lower their overall production costs, improve yields and bring next-generation devices to market. FormFactor's acquisition of MicroProbe created one of the leading wafer test solution providers for both memory and non-memory semiconductor manufacturers. 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, MicroProbe, and the FormFactor and MicroProbe logos are registered or unregistered 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 anticipated results, market conditions or trends, expectations and operating plans. 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: unexpected changes in demand for the company's products; seasonal industry trends; risks of the company's ability to realize further operational efficiencies and recover fully from supplier and manufacturing challenges experienced in 2013; the company's ability to maintain or increase its SoC business and to realize sustainable profitability in 2014; and changes in the market and macro-economic environments. 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 28, 2013, as filed with the SEC, and subsequent SEC filings, including the company's Quarterly Reports on Forms 10-Q. 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  
    March 29, 2014     March 30, 2013  
Revenues   $ 55,959     $ 52,620  
Cost of revenues     43,634       43,545  
Gross profit     12,325       9,075  
Operating expenses:                
  Research and development     9,747       10,929  
  Selling, general and administrative     12,254       14,618  
  Restructuring charges, net     1,997       3,980  
  Impairment of long-lived assets     743       58  
    Total operating expenses     24,741       29,585  
Operating loss     (12,416 )     (20,510 )
Interest income, net     79       107  
Other income (expense), net     (66 )     423  
Loss before income taxes     (12,403 )     (19,980 )
Provision (benefit) for income taxes     308       (207 )
Net loss   $ (12,711 )   $ (19,773 )
Net loss per share:                
  Basic and Diluted   $ (0.23 )   $ (0.37 )
Weighted-average number of shares used in per share calculations:                
  Basic and diluted     55,050       53,664  
                   
                   
 
FORMFACTOR, INC.
RECONCILIATION OF NON-GAAP NET LOSS
 (In thousands, except per share amounts) 
(Unaudited)
 
    Three Months Ended  
    March 29, 2014     March 30, 2013  
                 
GAAP net loss   $ (12,711 )   $ (19,773 )
Stock-based compensation     2,570       3,035  
Restructuring charges, net     1,997       3,980  
Acquisition and integration related expenses     41       912  
Amortization of intangibles, inventory and fixed assets fair value adjustment due to acquisition     4,949       4,786  
Impairment of long-lived assets     743       58  
Loss contingency     133       --  
Income tax valuation allowance     --       150  
Non-GAAP net loss   $ (2,278 )   $ (6,852 )
                 
Non-GAAP net loss per share:                
Basic and Diluted   $ (0.04 )   $ (0.13 )
                 
Weighted-average number of shares used in per share calculations:                
Basic and Diluted     55,050       53,664  
                 
                 
 
FORMFACTOR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS 
 (In thousands)
(Unaudited)
 
    March 29,
 2014
    December 28, 2013  
ASSETS                
Current assets:                
  Cash and cash equivalents   $ 49,199     $ 59,196  
  Marketable securities     94,798       91,895  
  Accounts receivable, net     37,057       30,189  
  Inventories, net     21,319       20,707  
  Deferred tax assets     2,777       2,776  
  Refundable income taxes     782       782  
  Prepaid expenses and other current assets     7,372       6,106  
    Total current assets     213,304       211,651  
Restricted cash     435       435  
Property, plant and equipment, net     30,049       35,190  
Goodwill     30,731       30,731  
Intangibles, net     52,398       57,470  
Deferred tax assets     3,988       3,960  
Other assets     1,273       1,271  
    Total assets   $ 332,178     $ 340,708  
LIABILITIES AND STOCKHOLDERS' EQUITY                
Current liabilities:                
  Accounts payable   $ 15,921     $ 16,313  
  Accrued liabilities     13,814       13,985  
  Capital leases, current portion     140       270  
  Income taxes payable     532       172  
  Deferred revenue     7,392       7,030  
    Total current liabilities     37,799       37,770  
Long-term income taxes payable     2,473       2,497  
Deferred rent and other liabilities     6,393       6,355  
    Total liabilities     46,665       46,622  
Commitments and contingencies                
Stockholders' equity:                
  Common stock and capital in excess of par value     699,681       695,686  
  Accumulated other comprehensive loss     (106 )     (249 )
  Accumulated deficit     (414,062 )     (401,351 )
    Total stockholders' equity     285,513       294,086  
    Total liabilities and stockholders' equity   $ 332,178     $ 340,708