FormFactor, Inc. Reports Second Quarter Results
[ Back ]   [ More News ]   [ Home ]
FormFactor, Inc. Reports Second Quarter Results

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,    June 29,    June 28,    June 29,  
                                2014        2013        2014        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,    June 29,    June 28,    June 29,  
                                2014        2013        2014        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,      December 28,  
                                                  2014            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 
                                             ==============  ============== 
                                                                            
                                                                            

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

ir@formfactor.com