SOURCE: FormFactor

FormFactor

October 29, 2014 16:05 ET

FormFactor, Inc. Reports Third Quarter Results

Company Delivers Highest Revenue Since Q4'07 and Achieves Second Consecutive Non-GAAP Profitable Quarter

LIVERMORE, CA--(Marketwired - Oct 29, 2014) - FormFactor, Inc. (NASDAQ: FORM) today announced its financial results for the third quarter of fiscal 2014 that ended on September 27, 2014. Quarterly revenues were $73.9 million, up 10% from $67.4 million in the second quarter of fiscal 2014, and up 9% from $67.6 million in the third quarter of fiscal 2013.

On a GAAP basis, net loss for the third quarter of fiscal 2014 was $(0.3) million, or $0.00 per fully-diluted share, compared to a net loss for the second quarter of fiscal 2014 of $(4.3) million, or $(0.08) per fully-diluted share, and a net loss for the third quarter of fiscal 2013 of $(10.7) million, or $(0.20) per fully-diluted share.

On a non-GAAP basis, net income for the third quarter of fiscal 2014 was $9.0 million, or $0.16 per fully-diluted share, compared to a net income for the second quarter of fiscal 2014 of $4.9 million, or $0.08 per fully-diluted share, and a net loss for the third quarter of fiscal 2013 of $(3.5) million, or $(0.06) 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 third quarter of fiscal 2014 was $5.3 million, compared to cash generation of $5.0 million for the second quarter of fiscal 2014 and cash generation of $1.8 million for the third quarter of fiscal 2013. 

"Q3 marked our second consecutive non-GAAP profitable quarter as we saw strong demand in both our SoC and DRAM businesses," said Tom St. Dennis, CEO and Executive Chairman of FormFactor, Inc. "Our reduced cost structure combined with solid product momentum, in both the SoC and DRAM markets, is showing the earnings leverage that we have on incremental revenue growth. We are very optimistic about our ability to continue to drive revenue growth in 2015 and beyond."

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 October 31, 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 7559228. 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     Nine Months Ended  
    September 27, 2014     September 28, 2013     September 27, 2014     September 28, 2013  
Revenues   $ 73,933     $ 67,634     $ 197,245     $ 182,987  
Cost of revenues     49,791       55,088       140,754       144,961  
Gross profit     24,142       12,546       56,491       38,026  
Operating expenses:                                
  Research and development     11,198       10,301       32,019       32,145  
  Selling, general and administrative     13,309       12,952       38,754       41,057  
  Restructuring charges, net     28       143       2,084       4,215  
  Loss on sale of subsidiary     --       --       --       300  
  Impairment of long-lived assets     86       15       829       194  
    Total operating expenses     24,621       23,411       73,686       77,911  
Operating loss     (479 )     (10,865 )     (17,195 )     (39,885 )
Interest income, net     75       95       233       298  
Other income (expense), net     228       (91 )     6       541  
Loss before income taxes     (176 )     (10,861 )     (16,956 )     (39,046 )
Provision (benefit) for income taxes     101       (147 )     358       (152 )
Net loss   $ (277 )   $ (10,714 )   $ (17,314 )   $ (38,894 )
Net loss per share:                                
  Basic and diluted   $ 0.00     $ (0.20 )   $ (0.31 )   $ (0.72 )
Weighted-average number of shares used in per share calculations:                                
  Basic and diluted     56,297       54,437       55,720       54,070  
                                 
                                 
   
FORMFACTOR, INC.  
RECONCILIATION OF NON-GAAP NET INCOME (LOSS)  
(In thousands, except per share amounts)  
(Unaudited)  
   
    Three Months Ended     Nine Months Ended  
    September 27, 2014     September 28, 2013     September 27, 2014     September 28, 2013  
GAAP net loss   $ (277 )   $ (10,714 )   $ (17,314 )   $ (38,894 )
Stock-based compensation     3,934       2,958       10,023       9,125  
Restructuring charges, net     28       143       2,084       4,215  
Acquisition and integration related expenses     (31 )     106       398       1,300  
Amortization of intangibles, inventory and fixed assets fair value adjustment due to acquisition     4,983       3,955       14,885       12,947  
Impairment of long-lived assets     86       15       829       494  
Loss contingency     307       --       720       --  
Income tax valuation allowance     --       --       --       150  
Non-GAAP net income (loss)   $ 9,030     $ (3,537 )   $ 11,625     $ (10,663 )
                                 
Non-GAAP net income (loss) per share:                                
Basic   $ 0.16     $ (0.06 )   $ 0.21     $ (0.20 )
Diluted   $ 0.16     $ (0.06 )   $ 0.20     $ (0.20 )
                                 
Weighted-average number of shares used in per share calculations:                                
Basic     56,297       54,437       55,720       54,070  
Diluted     57,597       54,437       57,110       54,070  
                                 
                                 
   
FORMFACTOR, INC.  
CONDENSED CONSOLIDATED BALANCE SHEETS  
(In thousands)  
(Unaudited)  
   
    September 27,
 2014
    December 28, 2013  
ASSETS                
Current assets:                
  Cash and cash equivalents   $ 89,264     $ 59,196  
  Marketable securities     65,103       91,895  
  Accounts receivable, net     47,776       30,189  
  Inventories, net     25,902       20,707  
  Deferred tax assets     2,837       2,776  
  Refundable income taxes     782       782  
  Prepaid expenses and other current assets     7,730       6,106  
    Total current assets     239,394       211,651  
Restricted cash     435       435  
Property, plant and equipment, net     26,610       35,190  
Goodwill     30,731       30,731  
Intangibles, net     42,255       57,470  
Deferred tax assets     3,881       3,960  
Other assets     1,225       1,271  
    Total assets   $ 344,531     $ 340,708  
LIABILITIES AND STOCKHOLDERS' EQUITY                
Current liabilities:                
  Accounts payable   $ 21,267     $ 16,313  
  Accrued liabilities     19,102       13,985  
  Capital leases, current portion     --       270  
  Income taxes payable     625       172  
  Deferred revenue     5,466       7,030  
    Total current liabilities     46,460       37,770  
Long-term income taxes payable     2,208       2,497  
Deferred tax liabilities     3,029       3,029  
Deferred rent and other liabilities     3,603       3,326  
    Total liabilities     55,300       46,622  
Commitments and contingencies                
Stockholders' equity:                
  Common stock and capital in excess of par value     708,496       695,686  
  Accumulated other comprehensive loss     (600 )     (249 )
  Accumulated deficit     (418,665 )     (401,351 )
    Total stockholders' equity     289,231       294,086  
    Total liabilities and stockholders' equity   $ 344,531     $ 340,708  
                 
                 

Contact Information

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