SOURCE: FormFactor

FormFactor

July 26, 2011 16:05 ET

FormFactor, Inc. Reports Second Quarter Results

LIVERMORE, CA--(Marketwire - Jul 26, 2011) - FormFactor, Inc. (NASDAQ: FORM) today announced its financial results for the second quarter of fiscal 2011 that ended on June 25, 2011. Quarterly revenues were $46.6 million, up 15% from $40.4 million in the first quarter of fiscal 2011, and down 19% from $57.6 million in the second quarter of fiscal 2010.

On a GAAP basis, net loss for the second quarter of fiscal 2011 was $6.7 million or $(0.13) per fully-diluted share, compared to a net loss for the first quarter of fiscal 2011 of $21.4 million or $(0.42) per fully-diluted share, and a net loss for the second quarter of fiscal 2010 of $33.9 million or $(0.68) per fully-diluted share. The results for the second quarter of fiscal 2011 include an income tax valuation allowance release of $2.5 million or $0.05 per fully diluted share. The company also recorded a restructuring benefit of $1.1 million, or $0.02 per fully diluted share, in the second quarter of 2011 related primarily to the termination of a lease obligation for our manufacturing facility in Singapore.

On a Non-GAAP basis, net loss for the second quarter of fiscal 2011 was $7.9 million or $(0.16) per fully-diluted share, compared to a net loss for the first quarter of fiscal 2011 of $16.1 million or $(0.32) per fully-diluted share, and a net loss for the second quarter of fiscal 2010 of $26.5 million or $(0.53) per fully-diluted share.

"As we moved through Q2, we continued our focus on operational execution and made good progress on our turnaround plan as we increased gross margins and reduced our cash consumption," said Tom St. Dennis, CEO of FormFactor. "We made improvements across our product offerings, and gained business momentum in our DRAM segment as we started ramping our SmartMatrix™ platform at major DRAM customers and implementing our proprietary ATRE™ wafer test technology."

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 July 29, 2011 at 9:00 p.m. PDT, and can be accessed by dialing (800) 642-1687 (domestic) or (706) 645-9291 (international) and entering confirmation code 78860037.

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:
Founded in 1993, FormFactor, Inc. (NASDAQ: FORM) is a 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 anticipated results, market conditions, 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: changes in the market environment, including the demand for DRAM and Flash memory devices and certain other semiconductor devices, the company's ability to complete qualification of its Matrix platform products for both DRAM and Flash memory applications at major memory customers; the rate at which semiconductor manufacturers adopt the company's Matrix platform products, including its SmartMatrix product for DRAM devices, and its ATRE wafer test technology, and request repeat orders; and the company's ability to bring its manufacturing structure and operating expenses in line with revenues;. 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 25, 2010, as filed with the SEC, and subsequent SEC filings including the company's quarterly report on Form 10-Q for its first quarter of its fiscal 2011. 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 Six Months Ended
June 25, June 26, June 25, June 26,
2011 2010 2011 2010
Revenues $ 46,558 $ 57,640 $ 86,987 $ 97,306
Cost of revenues 36,668 53,710 73,027 95,704
Gross profit (loss) 9,890 3,930 13,960 1,602
Operating expenses:
Research and development 10,878 15,997 22,438 31,088
Selling, general and administrative 10,192 18,725 22,579 36,592
Restructuring charges (1,099 ) 2,513 (60 ) 6,063
Impairment of long-lived assets - 999 351 999
Total operating expenses 19,971 38,234 45,308 74,742
Operating loss (10,081 ) (34,304 ) (31,348 ) (73,140 )
Interest income, net 369 722 793 1,497
Other income (expense), net 584 (82 ) 210 35
Loss before income taxes (9,128 ) (33,664 ) (30,345 ) (71,608 )
Provision for (benefit from) income taxes (2,412 ) 200 (2,205 ) 440
Net loss $ (6,716 ) $ (33,864 ) $ (28,140 ) $ (72,048 )
Net loss per share:
Basic and Diluted $ (0.13 ) $ (0.68 ) $ (0.55 ) $ (1.44 )
Weighted-average number of shares used in per share calculations:
Basic and Diluted 50,733 50,084 50,705 49,989

Reconciliation of Non-GAAP Net loss:
Three Months Ended Six Months Ended
June 25, June 26, June 25, June 26,
2011 2010 2011 2010
GAAP Net loss $ (6,716 ) $ (33,864 ) $ (28,140 ) $ (72,048 )
Stock-based compensation, net of related income-tax impact * 2,353 3,894 6,322 9,152
Restructuring charges, net of related income-tax impact * (1,099 ) 2,513 (60 ) 6,063
Income tax valuation allowance release (2,450 ) - (2,450 ) -
Impairment of long-lived assets, net of related income-tax impact * - 999 351 999
Non-GAAP Net loss $ (7,912 ) $ (26,458 ) $ (23,977 ) $ (55,834 )
Non-GAAP Net loss per share:
Basic and Diluted $ (0.16 ) $ (0.53 ) $ (0.47 ) $ (1.12 )
Weighted-average number of shares used in per share calculations:
Basic and Diluted 50,733 50,084 50,705 49,989
* There was no related income tax impact to stock-based compensation, restructuring and impairment charges in fiscal 2011 and fiscal 2010 as a result of the valuation allowance recorded after the second quarter of fiscal 2009.
FORMFACTOR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 25, December 25,
2011 2010
ASSETS
Current assets:
Cash and cash equivalents $ 130,085 $ 121,207
Marketable securities 194,142 226,028
Restricted cash 383 383
Accounts receivable, net 28,017 28,598
Inventories 21,799 25,003
Deferred tax assets, net 297 329
Prepaid expenses and other current assets 9,022 14,743
Total current assets 383,745 416,291
Restricted cash 297 297
Property and equipment, net 35,078 37,311
Deferred tax assets, net 7,364 5,445
Other assets 5,110 6,710
Total assets $ 431,594 $ 466,054
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 16,023 $ 14,948
Accrued liabilities 14,214 24,045
Income taxes payable 382 1,894
Deferred revenue 4,409 4,637
Total current liabilities 35,028 45,524
Long-term income taxes payable 4,209 4,248
Deferred rent and other liabilities 4,101 5,081
Total liabilities 43,338 54,853
Stockholders' equity:
Common stock and capital in excess of par value 655,726 651,315
Accumulated other comprehensive income 2,811 2,027
Retained earnings (accumulated deficit) (270,281 ) (242,141 )
Total stockholders' equity 388,256 411,201
Total liabilities and stockholders' equity $ 431,594 $ 466,054

Contact Information

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