SOURCE: FormFactor

FormFactor

July 29, 2015 16:02 ET

FormFactor, Inc. Reports Second Quarter Results

Company Continues Strong Execution Momentum Despite Volatile Market Conditions

LIVERMORE, CA--(Marketwired - Jul 29, 2015) - FormFactor, Inc. (NASDAQ: FORM) today announced its financial results for the second quarter of fiscal 2015 that ended on June 27, 2015. Quarterly revenues were $73.9 million, up 4% from $70.8 million in the first quarter of fiscal 2015, and up 10% from $67.4 million in the second quarter of fiscal 2014.

On a GAAP basis, net income for the second quarter of fiscal 2015 was $0.8 million, or $0.01 per fully-diluted share, compared to a net income for the first quarter of fiscal 2015 of $0.8 million, or $0.01 per fully-diluted share, and a net loss for the second quarter of fiscal 2014 of $(4.3) million, or $(0.08) per fully-diluted share.

On a non-GAAP basis, net income for the second quarter of fiscal 2015 was $6.7 million, or $0.11 per fully-diluted share, compared to net income for the first quarter of fiscal 2015 of $5.9 million, or $0.10 per fully-diluted share, and net income for the second quarter of fiscal 2014 of $4.9 million, or $0.08 per fully-diluted share. A reconciliation of GAAP to non-GAAP net income and net income per share is provided in the schedules included below.

Cash generation including stock repurchases for the second quarter of fiscal 2015 was $7.1 million, compared to cash generation of $7.8 million for the first quarter of fiscal 2015 and cash generation of $5.0 million for the second quarter of fiscal 2014. Stock repurchases in the second quarter of fiscal 2015 was $3.5 million. There were no stock repurchases in the first quarter of fiscal 2015 or the second quarter of fiscal 2014.

"In the second quarter of 2015 the company again delivered strong operational and financial performance in a solid demand environment," said Mike Slessor, Chief Executive Officer of FormFactor, Inc. "Despite the current headwinds in PC-related end-market demand, we remain encouraged by our strong and growing position in the overall advanced probe card market while executing on a structurally profitable operational model."

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 July 31, 2015, 9:00 p.m. PDT, and can be accessed by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) and entering confirmation code 78964868. 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; changes in historical demands on a seasonal basis; risks in the company's ability to execute on its operational model; risks of the company's ability to realize sustainable profitability, to achieve its growth objectives, and to meet customer demand for its 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 27, 2014, as filed with the SEC, and subsequent SEC filings. 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 27, 2015   June 28, 2014     June 27, 2015   June 28, 2014  
Revenues   $ 73,885   $ 67,352     $ 144,714   $ 123,311  
Cost of revenues     50,582     47,328       98,621     90,962  
Gross profit     23,303     20,024       46,093     32,349  
Operating expenses:                            
  Research and development     11,217     11,074       22,302     20,821  
  Selling, general and administrative     11,381     13,191       23,265     25,445  
  Restructuring charges, net     --     59       503     2,056  
  Impairment of long-lived assets     8     --       8     743  
    Total operating expenses     22,606     24,324       46,078     49,065  
Operating income (loss)     697     (4,300 )     15     (16,716 )
Interest income, net     65     79       149     158  
Other income (expense), net     100     (156 )     1,602     (222 )
Income (loss) before income taxes     862     (4,377 )     1,766     (16,780 )
Provision (benefit) for income taxes     24     (51 )     145     257  
Net income (loss)   $ 838   $ (4,326 )   $ 1,621   $ (17,037 )
Net income (loss) per share:                            
  Basic   $ 0.01   $ (0.08 )   $ 0.03   $ (0.31 )
  Diluted   $ 0.01   $ (0.08 )   $ 0.03   $ (0.31 )
Weighted-average number of shares used in per share calculations:                            
  Basic     58,109     55,812       57,532     55,431  
  Diluted     59,094     55,812       58,874     55,431  
                               
                               
                               
FORMFACTOR, INC.  
RECONCILIATION OF NON-GAAP NET INCOME  
(In thousands, except per share amounts)  
(Unaudited)  
   
    Three Months Ended     Six Months Ended  
    June 27, 2015     June 28, 2014     June 27, 2015     June 28, 2014  
GAAP net income (loss)   $ 838     $ (4,326 )   $ 1,621     $ (17,037 )
Stock-based compensation     2,506       3,519       5,415       6,089  
Restructuring charges, net     --       59       503       2,056  
Acquisition and integration related expenses     2       388       (89 )     429  
Amortization of intangibles, inventory and fixed assets fair value adjustment due to acquisition     3,430       4,953       6,722       9,902  
Impairment of long-lived assets     8       --       8       743  
Loss contingency     --       280       --       413  
Business interruption insurance claim recovery     (37 )     --       (1,521 )     --  
Non-GAAP net income   $ 6,747     $ 4,873     $ 12,659     $ 2,595  
                                 
Non-GAAP net income per share:                                
Basic   $ 0.12     $ 0.09     $ 0.22     $ 0.05  
Diluted   $ 0.11     $ 0.08     $ 0.22     $ 0.05  
                                 
Weighted-average number of shares used in per share calculations:                                
Basic     58,109       55,812       57,532       55,431  
Diluted     59,094       57,373       58,874       57,012  
                                 
                                 
                                 
FORMFACTOR, INC.  
CONDENSED CONSOLIDATED BALANCE SHEETS  
(In thousands)  
(Unaudited)  
   
    June 27,
2015
    December 27,
2014
 
ASSETS                
Current assets:                
  Cash and cash equivalents   $ 137,088     $ 113,940  
  Marketable securities     41,668       49,897  
  Accounts receivable, net     43,979       45,152  
  Inventories, net     24,247       25,548  
  Deferred tax assets     2,030       2,036  
  Refundable income taxes     --       782  
  Prepaid expenses and other current assets     7,602       6,919  
    Total current assets     256,614       244,274  
Restricted cash     435       435  
Property, plant and equipment, net     24,485       25,498  
Goodwill     30,731       30,731  
Intangibles, net     32,187       38,689  
Deferred tax assets     3,437       3,466  
Other assets     864       1,150  
    Total assets   $ 348,753     $ 344,243  
LIABILITIES AND STOCKHOLDERS' EQUITY                
Current liabilities:                
  Accounts payable   $ 21,449     $ 20,274  
  Accrued liabilities     19,660       21,217  
  Income taxes payable     180       68  
  Deferred revenue     5,766       6,303  
    Total current liabilities     47,055       47,862  
Long-term income taxes payable     902       1,094  
Deferred tax liabilities     2,208       2,208  
Deferred rent and other liabilities     3,580       3,643  
    Total liabilities     53,745       54,807  
Commitments and contingencies                
Stockholders' equity:                
  Common stock and capital in excess of par value     715,921       711,733  
  Accumulated other comprehensive loss     (1,998 )     (1,761 )
  Accumulated deficit     (418,915 )     (420,536 )
    Total stockholders' equity     295,008       289,436  
    Total liabilities and stockholders' equity   $ 348,753     $ 344,243  
                     

Contact Information

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