SOURCE: FormFactor

FormFactor

February 05, 2014 16:05 ET

FormFactor, Inc. Reports Fourth Quarter and Annual Results

LIVERMORE, CA--(Marketwired - Feb 5, 2014) - FormFactor, Inc. (NASDAQ: FORM) today announced its financial results for the fourth quarter of fiscal 2013 that ended on December 28, 2013. Quarterly revenues were $48.5 million, down 28% from $67.6 million in the third quarter of fiscal 2013, and up 2% from $47.7 million in the fourth quarter of fiscal 2012.

For fiscal 2013, FormFactor posted revenue of $231.5 million, up 30% from $178.5 million in fiscal 2012.

On a GAAP basis, net loss for the fourth quarter of fiscal 2013 was $(18.8) million, or $(0.34) per fully-diluted share, compared to a net loss for the third quarter of fiscal 2013 of $(10.7) million, or $(0.20) per fully-diluted share, and a net income for the fourth quarter of fiscal 2012 of $0.6 million, or $0.01 per fully-diluted share. Net loss for fiscal 2013 was $(57.7) million, or $(1.06) per fully-diluted share, compared to a net loss of $(35.5) million, or $(0.70) per fully-diluted share, for fiscal 2012.

On a non-GAAP basis, net loss for the fourth quarter of fiscal 2013 was $(10.9) million, or $(0.20) per fully-diluted share, compared to a net loss for the third quarter of fiscal 2013 of $(3.5) million, or $(0.06) per fully-diluted share, and a net loss for the fourth quarter of fiscal 2012 of $(13.3) million, or $(0.25) per fully-diluted share. On a non-GAAP basis, net loss for fiscal 2013 was $(21.5) million, or $(0.40) 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 fourth quarter of fiscal 2013 was $(5.2) million, compared to cash generated of $1.8 million for the third quarter of fiscal 2013 and cash usage of $(110.4) million for the fourth quarter of fiscal 2012. Excluding cash usage attributable to the acquisition of Astria, but including cash from Astria's operations subsequent to the acquisition, cash usage for the fourth quarter of fiscal 2012 was $(13.7) million.

"Despite certain market and seasonality challenges in the fourth quarter, FormFactor made significant progress in our operational and financial performance in 2013", said Tom St. Dennis, FormFactor CEO and Executive Chairman. "2013 marked the first full year of the FormFactor/MicroProbe business combination and we delivered 2 quarters of positive cash flow for the first time since 2007. Exiting the year as a leader in both the DRAM and Logic markets, we are positioning FormFactor for sustainable profitability as we move into 2014."

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. PST, or 4:30 p.m. EST, 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 February 7, 2014, 9:00 p.m. Pacific Standard Time, and can be accessed by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) and entering confirmation code 31046117. 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 creates the leading wafer test solution provider 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 and the company's manufacturing utilization, supplier and manufacturing challenges; seasonal industry trends; risks of the company's ability to realize further operational efficiencies and achieve synergies through the MicroProbe integration; risks of the company's operational execution and ability to be profitable 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 29, 2012, 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     Fiscal Year Ended  
    December 28, 2013     December 29, 2012     December 28, 2013     December 29, 2012  
Revenues   $ 48,546     $ 47,654     $ 231,533     $ 178,535  
Cost of revenues     44,288       50,798       189,249       153,204  
Gross profit (loss)     4,258       (3,144 )     42,284       25,331  
Operating expenses:                                
  Research and development     9,994       9,775       42,139       40,130  
  Selling, general and administrative     12,160       14,958       53,217       49,231  
  Restructuring charges, net     443       333       4,658       2,917  
  Loss on sale of subsidiary     --       --       300       --  
  Impairment of long-lived assets     567       49       761       421  
  Gain on settlement of litigation     --       (3,250 )     --       (3,250 )
    Total operating expenses     23,164       21,865       101,075       89,449  
Operating loss     (18,906 )     (25,009 )     (58,791 )     (64,118 )
Interest income, net     88       134       386       691  
Other income, net     82       334       623       1,461  
Loss before income taxes     (18,736 )     (24,541 )     (57,782 )     (61,966 )
Provision for (benefit from) income taxes     53       (25,144 )     (99 )     (26,420 )
Net (loss) income   $ (18,789 )   $ 603     $ (57,683 )   $ (35,546 )
                                 
Net (loss) income per share:                                
  Basic   $ (0.34 )   $ 0.01     $ (1.06 )   $ (0.70 )
  Diluted   $ (0.34 )   $ 0.01     $ (1.06 )   $ (0.70 )
                                 
Weighted-average number of shares used in per share calculations:                                
  Basic     54,608       52,745       54,204       50,551  
  Diluted     54,608       52,921       54,204       50,551  
                                 
                                 
 
 
FORMFACTOR, INC.
RECONCILIATION OF NON-GAAP NET LOSS
(In thousands, except per share amounts)
(Unaudited)
             
    Three Months Ended     Fiscal Year Ended  
    December 28, 2013     December 29, 2012     December 28, 2013     December 29, 2012  
                         
GAAP net (loss) income   $ (18,789 )   $ 603     $ (57,683 )     (35,546 )
Stock-based compensation     2,999       3,560       12,124       13,049  
Restructuring charges, net     443       333       4,658       2,917  
Acquisition and integration related expenses     (8 )     1,785       1,292       2,960  
Amortization of intangibles, inventory and fixed assets fair value adjustment due to acquisition     3,910       9,125       16,857       9,125  
Impairment of long-lived assets and loss on sale of subsidiary     567       49       1,061       420  
Gain on litigation     --       (3,250 )     --       (3,250 )
Income tax valuation allowance     --       (25,520 )     150       (25,520 )
Non-GAAP net loss   $ (10,878 )   $ (13,315 )   $ (21,541 )   $ (35,845 )
                                 
Non-GAAP net loss per share:                                
  Basic   $ (0.20 )   $ (0.25 )   $ (0.40 )   $ (0.71 )
  Diluted   $ (0.20 )   $ (0.25 )   $ (0.40 )   $ (0.71 )
                                 
Weighted-average number of shares used in per share calculations:                                
  Basic     54,608       52,745       54,204       50,551  
  Diluted     54,608       52,745       54,204       50,551  
                                   
                                   
 
 
FORMFACTOR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
             
    December 28, 2013     December 29, 2012  
ASSETS            
Current assets:            
  Cash and cash equivalents   $ 59,196     $ 72,243  
  Marketable securities     91,895       93,545  
  Accounts receivable, net     30,189       28,919  
  Inventories, net     20,707       23,616  
  Deferred tax assets     2,776       4,613  
  Refundable income taxes     782       5,667  
  Prepaid expenses and other current assets     6,106       10,569  
    Total current assets     211,651       239,172  
  Restricted cash     435       318  
  Property, plant and equipment, net     35,190       45,515  
  Goodwill     30,731       30,994  
  Intangibles, net     57,470       74,276  
  Deferred tax assets     3,960       4,207  
  Other assets     1,271       1,200  
    Total assets   $ 340,708     $ 395,682  
LIABILITIES AND STOCKHOLDERS' EQUITY                
  Current liabilities:                
  Accounts payable   $ 16,313     $ 21,015  
  Accrued liabilities     13,985       17,270  
  Capital leases, current portion     270       573  
  Income taxes payable     172       --  
  Deferred revenue     7,030       6,189  
    Total current liabilities     37,770       45,047  
  Long-term income taxes payable     2,497       3,028  
  Capital leases, net of current portion     --       340  
  Deferred rent and other liabilities     6,355       8,009  
    Total liabilities     46,622       56,424  
Stockholders' equity:                
  Common stock and capital in excess of par value     695,686       681,211  
  Accumulated other comprehensive income (loss)     (249 )     1,715  
  Accumulated deficit     (401,351 )     (343,668 )
    Total stockholders' equity     294,086       339,258  
  Total liabilities and stockholders' equity   $ 340,708     $ 395,682  
                 
                 

Contact Information

  • Investor Contact:
    Stan Finkelstein
    Investor Relations
    (925) 290-4321
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