SOURCE: FormFactor

FormFactor

July 30, 2014 16:05 ET

FormFactor, Inc. Reports Second Quarter Results

Company Achieves Non-GAAP Profitability for the 1st Time Since Q4 2007

LIVERMORE, CA--(Marketwired - Jul 30, 2014) - FormFactor, Inc. (NASDAQ: FORM) today announced its financial results for the second quarter of fiscal 2014 that ended on June 28, 2014. Quarterly revenues were $67.4 million, up 20% from $56.0 million in the first quarter of fiscal 2014, and up 7% from $62.7 million in the second quarter of fiscal 2013.

On a GAAP basis, net loss for the second quarter of fiscal 2014 was $(4.3) million, or $(0.08) per fully-diluted share, compared to a net loss for the first quarter of fiscal 2014 of $(12.7) million, or $(0.23) per fully-diluted share, and a net loss for the second quarter of fiscal 2013 of $(8.4) million, or $(0.16) per fully-diluted share.

On a non-GAAP basis, net income for the second quarter of fiscal 2014 was $4.9 million, or $0.08 per fully-diluted share, compared to a net loss for the first quarter of fiscal 2014 of $(2.3) million, or $(0.04) per fully-diluted share, and a net loss for the second quarter of fiscal 2013 of $(0.3) million, or $(0.01) per fully-diluted share. 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 second quarter of fiscal 2014 was $5.0 million, compared to cash usage of $(7.1) million for the first quarter of fiscal 2014 and cash generation of $1.0 million for the second quarter of fiscal 2013. 

"In Q2, we saw increased business and improved operational performance, resulting in our first non-GAAP profitable quarter since Q4 of 2007," said Tom St. Dennis, CEO of FormFactor, Inc. "We made significant progress in each of our DRAM, Flash Memory and SOC product lines during the quarter and are positioned to support our growth objectives through 2016."

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 August 1, 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 73696070. 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     Six Months Ended  
    June 28, 2014     June 29, 2013     June 28, 2014     June 29, 2013  
Revenues   $ 67,352     $ 62,733     $ 123,311     $ 115,353  
Cost of revenues     47,328       46,328       90,962       89,873  
Gross profit     20,024       16,405       32,349       25,480  
Operating expenses:                                
  Research and development     11,074       10,915       20,821       21,844  
  Selling, general and administrative     13,191       13,487       25,445       28,105  
  Restructuring charges, net     59       92       2,056       4,072  
  Loss on sale of subsidiary     --       300       --       300  
  Impairment of long-lived assets     --       121       743       179  
    Total operating expenses     24,324       24,915       49,065       54,500  
Operating loss     (4,300 )     (8,510 )     (16,716 )     (29,020 )
Interest income, net     79       96       158       203  
Other income (expense), net     (156 )     209       (222 )     632  
Loss before income taxes     (4,377 )     (8,205 )     (16,780 )     (28,185 )
Provision (benefit) for income taxes     (51 )     202       257       (5 )
Net loss   $ (4,326 )   $ (8,407 )   $ (17,037 )   $ (28,180 )
Net loss per share:                                
  Basic and Diluted   $ (0.08 )   $ (0.16 )   $ (0.31 )   $ (0.52 )
Weighted-average number of shares used in per share calculations:                                
  Basic and diluted     55,812       54,105       55,431       53,886  
                                   
                                   
                                   
FORMFACTOR, INC.  
RECONCILIATION OF NON-GAAP NET INCOME (LOSS)  
(In thousands, except per share amounts)  
(Unaudited)  
   
    Three Months Ended     Six Months Ended  
    June 28, 2014     June 29, 2013     June 28, 2014     June 29, 2013  
GAAP net loss   $ (4,326 )   $ (8,407 )   $ (17,037 )   $ (28,180 )
Stock-based compensation     3,519       3,132       6,089       6,166  
Restructuring charges, net     59       92       2,056       4,072  
Acquisition and integration related expenses     388       282       429       1,194  
Amortization of intangibles, inventory and fixed assets fair value adjustment due to acquisition     4,953       4,206       9,902       8,992  
Impairment of long-lived assets     --       421       743       479  
Loss contingency     280       --       413       --  
Income tax valuation allowance     --       --       --       150  
Non-GAAP net income (loss)   $ 4,873     $ (274 )   $ 2,595     $ (7,127 )
                                 
Non-GAAP net income (loss) per share:                                
Basic   $ 0.09     $ (0.01 )   $ 0.05     $ (0.13 )
Diluted   $ 0.08     $ (0.01 )   $ 0.05     $ (0.13 )
                                 
Weighted-average number of shares used in per share calculations:                                
Basic     55,812       54,105       55,431       53,886  
Diluted     57,373       54,105       57,012       53,886  
                                 
                                 
                                 
FORMFACTOR, INC.  
CONDENSED CONSOLIDATED BALANCE SHEETS  
(In thousands)  
(Unaudited)  
   
    June 28,
2014
    December 28, 2013  
ASSETS                
Current assets:                
  Cash and cash equivalents   $ 69,859     $ 59,196  
  Marketable securities     79,182       91,895  
  Accounts receivable, net     41,962       30,189  
  Inventories, net     22,050       20,707  
  Deferred tax assets     2,841       2,776  
  Refundable income taxes     782       782  
  Prepaid expenses and other current assets     7,476       6,106  
    Total current assets     224,152       211,651  
Restricted cash     435       435  
Property, plant and equipment, net     29,210       35,190  
Goodwill     30,731       30,731  
Intangibles, net     47,326       57,470  
Deferred tax assets     3,983       3,960  
Other assets     1,291       1,271  
    Total assets   $ 337,128     $ 340,708  
LIABILITIES AND STOCKHOLDERS' EQUITY                
Current liabilities:                
  Accounts payable   $ 18,388     $ 16,313  
  Accrued liabilities     17,205       13,985  
  Capital leases, current portion     --       270  
  Income taxes payable     493       172  
  Deferred revenue     7,238       7,030  
    Total current liabilities     43,324       37,770  
Long-term income taxes payable     2,318       2,497  
Deferred tax liabilities     3,029       3,029  
Deferred rent and other liabilities     3,443       3,326  
    Total liabilities     52,114       46,622  
Commitments and contingencies                
Stockholders' equity:                
  Common stock and capital in excess of par value     703,189       695,686  
  Accumulated other comprehensive gain (loss)     213       (249 )
  Accumulated deficit     (418,388 )     (401,351 )
    Total stockholders' equity     285,014       294,086  
    Total liabilities and stockholders' equity   $ 337,128     $ 340,708  
                 
                 

Contact Information

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