SOURCE: FormFactor

FormFactor

February 04, 2015 16:05 ET

FormFactor, Inc. Reports Fourth Quarter and Annual Results

Company Delivers 16% Year-Over-Year Revenue Growth and Positive Cash Generation for 2014

LIVERMORE, CA--(Marketwired - Feb 4, 2015) - FormFactor, Inc. (NASDAQ: FORM) today announced its financial results for the fourth quarter of fiscal 2014 that ended on December 27, 2014. Quarterly revenues were $71.3 million, down 4% from $73.9 million in the third quarter of fiscal 2014, and up 47% from $48.5 million in the fourth quarter of fiscal 2013.

For fiscal 2014, FormFactor posted revenue of $268.5 million, up 16% from $231.5 million in fiscal 2013.

On a GAAP basis, net loss for the fourth quarter of fiscal 2014 was $(1.9) million, or $(0.03) per fully-diluted share, compared to a net loss for the third quarter of fiscal 2014 of $(0.3) million, or $0.00 per fully-diluted share, and a net loss for the fourth quarter of fiscal 2013 of $(18.8) million, or $(0.34) per fully-diluted share. Net loss for fiscal 2014 was $(19.2) million, or $(0.34) per fully-diluted share, compared to a net loss of $(57.7) million, or $(1.06) per fully-diluted share, for fiscal 2013.

On a non-GAAP basis, net income for the fourth quarter of fiscal 2014 was $6.5 million, or $0.11 per fully-diluted share, compared to a net income for the third quarter of fiscal 2014 of $9.0 million, or $0.16 per fully-diluted share, and a net loss for the fourth quarter of fiscal 2013 of $(10.9) million, or $(0.20) per fully-diluted share. On a non-GAAP basis, net income for fiscal 2014 was $18.2 million, or $0.32 per fully-diluted share, compared to a net loss of $(21.5) million, or $(0.40) per fully-diluted share, for fiscal 2013. A reconciliation of GAAP to non-GAAP net income (loss) and net income (loss) per share is provided in the schedules included below.

Cash generation for the fourth quarter of fiscal 2014 was $9.5 million, compared to cash generated of $5.3 million for the third quarter of fiscal 2014 and cash usage of $(5.2) million for the fourth quarter of fiscal 2013. For fiscal year 2014, cash generation was $12.7 million vs. cash usage of $(14.6) million for fiscal year 2013. 

"In 2014 we delivered significant revenue growth, while generating cash and non-GAAP profit in 3 of the 4 quarters and for the year in total. In Q4 2014 we experienced strong industry-wide demand for our products, and as we begin the year our strong execution enables us to continue to build on the foundation set in 2014" said Mike Slessor, Chief Executive Officer of FormFactor, Inc.

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. Pacific Time, or 4:30 p.m. Eastern Time, 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 6, 2015, 9:00 p.m. Pacific Time, and can be accessed by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) and entering confirmation code 68677756. 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) helps semiconductor manufacturers test the integrated circuits (ICs) that power consumer mobile devices, as well as computing, automotive and other applications. The company is one of the world's leading providers of essential wafer test technologies and expertise, with an extensive portfolio of high-performance probe cards for DRAM, Flash and SoC devices. Customers use FormFactor's products and services to lower overall production costs, improve their yields and enable complex next-generation ICs. Headquartered in Livermore, California, the company services its customers from a network of facilities 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, to realize sustainable profitability, to achieve its growth objectives, and to meet customer demand for the company's DRAM, Flash Memory and SoC products; 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/sec.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 27, 2014     December 28, 2013     December 27, 2014     December 28, 2013  
Revenues   $ 71,285     $ 48,546     $ 268,530     $ 231,533  
Cost of revenues     50,337       44,288       191,091       189,249  
Gross profit     20,948       4,258       77,439       42,284  
Operating expenses:                                
  Research and development     10,706       9,994       42,725       42,139  
  Selling, general and administrative     12,631       12,160       51,385       53,217  
  Restructuring charges, net     584       443       2,668       4,658  
  Loss on sale of subsidiary     --       --       --       300  
  Impairment of long-lived assets     390       567       1,219       761  
    Total operating expenses     24,311       23,164       97,997       101,075  
Operating loss     (3,363 )     (18,906 )     (20,558 )     (58,791 )
Interest income, net     69       88       302       386  
Other income, net     155       82       161       623  
Loss before income taxes     (3,139 )     (18,736 )     (20,095 )     (57,782 )
(Benefit from) provision for income taxes     (1,268 )     53       (910 )     (99 )
Net loss   $ (1,871 )   $ (18,789 )   $ (19,185 )   $ (57,683 )
                                 
Net loss per share:                                
  Basic and diluted   $ (0.03 )   $ (0.34 )   $ (0.34 )   $ (1.06 )
                                 
Weighted-average number of shares used in per share calculations:                                
  Basic and diluted     56,472       54,608       55,908       54,204  
                                 
                                 
                                 
FORMFACTOR, INC.  
RECONCILIATION OF NON-GAAP NET INCOME (LOSS)  
(In thousands, except per share amounts)  
(Unaudited)  
                         
    Three Months Ended     Fiscal Year Ended  
    December 27, 2014     December 28, 2013     December 27, 2014     December 28, 2013  
                                 
GAAP net loss   $ (1,871 )   $ (18,789 )   $ (19,185 )     (57,683 )
Stock-based compensation     3,256       2,999       13,279       12,124  
Restructuring charges, net     584       443       2,668       4,658  
Acquisition and integration related expenses     25       (8 )     423       1,292  
Amortization of intangibles, inventory and fixed assets fair value adjustment due to acquisition     3,654       3,910       18,539       16,857  
Impairment of long-lived assets and loss on sale of subsidiary     390       567       1,219       1,061  
Loss contingency     498       --       1,218       --  
Income tax valuation allowance     --       --       --       150  
Non-GAAP net income (loss)   $ 6,536     $ (10,878 )   $ 18,161     $ (21,541 )
                                 
Non-GAAP net loss per share:                                
  Basic   $ 0.12     $ (0.20 )   $ 0.32     $ (0.40 )
  Diluted   $ 0.11     $ (0.20 )   $ 0.32     $ (0.40 )
                                 
Weighted-average number of shares used in per share calculations:                                
  Basic     56,472       54,608       55,908       54,204  
  Diluted     58,234       54,608       57,510       54,204  
                                   
                                   
                                   
FORMFACTOR, INC.  
CONDENSED CONSOLIDATED BALANCE SHEETS  
(In thousands)  
(Unaudited)  
             
    December 27, 2014     December 28, 2013  
ASSETS                
Current assets:                
  Cash and cash equivalents   $ 113,940     $ 59,196  
  Marketable securities     49,897       91,895  
  Accounts receivable, net     45,152       30,189  
  Inventories, net     25,548       20,707  
  Deferred tax assets     2,036       2,776  
  Refundable income taxes     782       782  
  Prepaid expenses and other current assets     6,919       6,106  
    Total current assets     244,274       211,651  
Restricted cash     435       435  
Property, plant and equipment, net     25,498       35,190  
Goodwill     30,731       30,731  
Intangibles, net     38,689       57,470  
Deferred tax assets     3,466       3,960  
Other assets     1,150       1,271  
    Total assets   $ 344,243     $ 340,708  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
Current liabilities:                
  Accounts payable   $ 20,274     $ 16,313  
  Accrued liabilities     21,217       13,985  
  Capital leases, current portion     --       270  
  Income taxes payable     68       172  
  Deferred revenue     6,303       7,030  
    Total current liabilities     47,862       37,770  
Long-term income taxes payable     1,094       2,497  
Deferred tax liabilities     2,208       3,029  
Deferred rent and other liabilities     3,643       3,326  
    Total liabilities     54,807       46,622  
Stockholders' equity:                
  Common stock and capital in excess of par value     711,733       695,686  
  Accumulated other comprehensive loss     (1,761 )     (249 )
  Accumulated deficit     (420,536 )     (401,351 )
    Total stockholders' equity     289,436       294,086  
    Total liabilities and stockholders' equity   $ 344,243     $ 340,708  
                 
                 

Contact Information

  • Investor Contact:
    Stan Finkelstein
    Investor Relations
    (925) 290-4321
    ir@formfactor.com