FormFactor, Inc. Reports Fourth Quarter and Annual Results

Marketwired

LIVERMORE, CA--(Marketwire - Feb 6, 2013) - FormFactor, Inc. (NASDAQ: FORM) today announced its financial results for the fourth quarter of fiscal 2012 that ended on December 29, 2012. Quarterly revenues were $47.7 million, up 15% from $41.3 million in the third quarter of fiscal 2012, and up 58% from $30.2 million in the fourth quarter of fiscal 2011, which was prior to FormFactor's acquisition of Astria Semiconductor Holdings, Inc., including MicroProbe Incorporated, Astria's wholly-owned subsidiary.

For fiscal 2012, FormFactor posted revenue of $178.5 million, up 5% from $169.3 million in fiscal 2011.

On a GAAP basis, net profit for the fourth quarter of fiscal 2012 was $0.6 million, or $0.01 per fully-diluted share, compared to a net loss for the third quarter of fiscal 2012 of $(14.5) million, or $(0.29) per fully-diluted share, and a net loss for the fourth quarter of fiscal 2011 of $(27.0) million, or $(0.54) per fully-diluted share. The results for the fourth quarter of fiscal 2012 include a one-time tax benefit of $25.5 million, or $0.48 per fully diluted share. Net loss for fiscal 2012 was $(35.5) million, or $(0.70) per fully-diluted share, compared to a net loss of $(66.0) million, or $(1.31) per fully-diluted share, for fiscal 2011.

On a non-GAAP basis, net loss for the fourth quarter of fiscal 2012 was $(13.3) million, or $(0.25) per fully-diluted share, compared to a net loss for the third quarter of fiscal 2012 of $(7.7) million, or $(0.15) per fully-diluted share, and a net loss for the fourth quarter of fiscal 2011 of $(22.4) million, or $(0.45) per fully-diluted share. On a non-GAAP basis, net loss for fiscal 2012 was $(35.8) million, or $(0.71) per fully-diluted share. A reconciliation of GAAP to non-GAAP net loss and net loss per share is provided in the schedules included below.

Cash usage for the fourth quarter of fiscal 2012 was $110.4 million, compared to cash usage of $1.6 million for the third quarter of fiscal 2012 and cash usage of $19.3 million for the fourth quarter of fiscal 2011. Excluding cash usage attributable to the acquisition of Astria, but including cash from Astria's operations subsequent to the acquisition, cash usage for the fourth quarter of fiscal 2012 was $13.7 million. There was no stock buyback during the fourth quarter of fiscal 2012, compared to a stock buyback of $7.5 million for the fourth quarter of fiscal 2011.

"Our memory business continued to experience weak demand in Q4 attributable to structural changes in the computing industry and the seasonal cyclicality of our business," said Tom St. Dennis, CEO of FormFactor. "During Q4 we closed our acquisition of MicroProbe, creating the largest probe card supplier in our industry with leading technologies across the SOC and memory markets."

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. PST, or 4:30 p.m. EST, today.

The public is invited to listen to a live webcast of FormFactor's conference call on the Investors section of the company's website 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 February 8, 2013, 9:00 p.m. Pacific Standard Time, and can be accessed by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) and entering confirmation code 90030216. 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) is a leader in advanced wafer test solutions. The company's advanced wafer probe cards enable semiconductor manufacturers to lower their overall production costs, improve yields, and bring next-generation devices to market. FormFactor's acquisition of MicroProbe creates the leading wafer test solution provider for both memory and non-memory semiconductor manufacturers. 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, 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, 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: our ability to successfully integrate and realize the anticipated benefits of the Astria Semiconductor Holdings, Inc. acquisition, including Micro-Probe Incorporated; risks around customers' engagement with the newly combined entities; risks of the company's ability to meet customers' test roadmaps; risks arising from structural changes in the computing industry; seasonal cyclicality of our business; risks of the company's ability to realize further operational efficiencies; personnel retention; 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 31, 2011, 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/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     Fiscal Year Ended  
    December 29,     December 31,     December 29,     December 31,  
2012     2011     2012     2011  
                                 
Revenues   $ 47,654     $ 30,224     $ 178,535     $ 169,325  
Cost of revenues     50,798       35,199       153,205       148,367  
Gross profit     (3,144 )     (4,975 )     25,330       20,958  
                                 
Operating expenses:                                
  Research and development     9,775       10,683       40,129       43,544  
  Selling, general and administrative     14,958       11,964       49,230       46,705  
  Restructuring charges, net     333       325       2,917       522  
  Impairment of long-lived assets     49       98       420       549  
  Gain on litigation     (3,250 )     -       (3,250 )     -  
    Total operating expenses     21,865       23,070       89,446       91,320  
Operating loss     (25,009 )     (28,045 )     (64,116 )     (70,362 )
                                 
Interest income, net     134       276       691       1,404  
Other income (expense), net     334       941       1,461       1,076  
Loss before income taxes     (24,541 )     (26,828 )     (61,964 )     (67,882 )
Provision for (benefit from) income taxes     (25,144 )     147       26,420       (1,901 )
                                 
Net income (loss)   $ 603     $ (26,975 )   $ (35,544 )   $ (65,981 )
                                 
Net income (loss) per share:                                
  Basic   $ 0.01     $ (0.54 )   $ (0.70 )   $ (1.31 )
  Diluted   $ 0.01     $ (0.54 )   $ (0.70 )   $ (1.31 )
                                 
Weighted-average number of shares used in per share calculations:                                
                                 
  Basic     52,745       49,967       50,551       50,521  
  Diluted     52,921       49,967       50,551       50,521  
                         
Reconciliation of Non-GAAP Net Income (Loss):                        
    Three Months Ended     Fiscal Year Ended  
    December 29,     December 31,     December 29,     December 31,  
2012     2011     2012     2011  
                                 
GAAP net income (loss)   $ 603     $ (26,975 )   $ (35,544 )   $ (65,981 )
Stock-based compensation, net of related income-tax impact *     3,560       4,188       13,049       13,849  
Restructuring charges, net of related income-tax impact *     333       325       2,917       522  
Acquisition costs related expenses, net of related income-tax impact *     1,785       -       2,960       -  
Amortization of intangibles due to acquisition, net of related income-tax impact *     9,125       -       9,125       -  
Impairment of long-lived assets, net of related income-tax impact *     49       98       420       549  
Gain on litigation     (3,250 )     -       (3,250 )     -  
Income tax valuation allowance release     (25,520 )     -       (25,520 )     (2,450 )
Non-GAAP net loss   $ (13,315 )   $ (22,364 )   $ (35,843 )   $ (53,511 )
                                 
Non-GAAP net loss per share:                                
  Basic   $ (0.25 )   $ (0.45 )   $ (0.71 )   $ (1.06 )
  Diluted   $ (0.25 )   $ (0.45 )   $ (0.71 )   $ (1.06 )
                                 
Weighted-average number of shares used in per share calculations:                                
  Basic     52,745       49,967       50,551       50,521  
  Diluted     52,745       49,967       50,551       50,521  
                                 

* There was no related income-tax impact to stock-based compensation, restructuring and impairment charges in fiscal 2012 and fiscal 2011 as a result of the valuation allowance recorded after the second quarter of fiscal 2009.

 
 
FORMFACTOR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
    December 29,     December 31,  
    2012     2011  
ASSETS                
Current assets:                
  Cash and cash equivalents   $ 72,243     $ 139,049  
  Marketable securities     93,545       157,642  
  Accounts receivable, net     28,919       12,662  
  Inventories     23,616       18,092  
  Deferred tax assets     4,613       1,162  
  Refundable income taxes     5,667       910  
  Prepaid expenses and other current assets     10,569       7,458  
    Total current assets     239,172       336,975  
Restricted cash     318       317  
Property, plant and equipment, net     45,515       35,132  
Goodwill     30,994       -  
Intangible, net     74,276       -  
Deferred tax assets     4,207       5,954  
Other assets     1,200       4,693  
    Total assets   $ 395,682     $ 383,071  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
Current liabilities:                
  Accounts payable   $ 21,014     $ 9,731  
  Accrued liabilities     17,270       13,966  
  Capital leases, current portion     573       -  
  Income taxes payable     -       100  
  Deferred revenue     6,189       4,798  
    Total current liabilities     45,046       28,595  
Long-term income taxes payable     3,028       4,112  
Capital leases, net of current portion     340       -  
Deferred rent and other liabilities     8,009       3,712  
    Total liabilities     56,423       36,419  
Stockholders' equity:                
  Common stock and capital in excess of par value     681,211       652,074  
  Accumulated other comprehensive income     1,715       2,700  
  Accumulated deficit     (343,667 )     (308,122 )
    Total stockholders' equity     339,259       346,652  
    Total liabilities and stockholders' equity   $ 395,682     $ 383,071  
                     
Contact:
Investor
Stan Finkelstein
Investor Relations
(925) 290-4321
Email Contact

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