FormFactor, Inc. Reports Third Quarter Results

Marketwired

LIVERMORE, CA--(Marketwire - Nov 1, 2012) - FormFactor, Inc. (NASDAQ: FORM) today announced its financial results for the third quarter of fiscal 2012 that ended on September 29, 2012. Quarterly revenues were $41.3 million, down 25% from $54.8 million in the second quarter of fiscal 2012, and down 21% from $52.1 million in the third quarter of fiscal 2011.

On a GAAP basis, net loss for the third quarter of fiscal 2012 was $(14.5) million, or $(0.29) per fully-diluted share, compared to a net loss for the second quarter of fiscal 2012 of ($4.2) million or $(0.08) per fully-diluted share, and a net loss for the third quarter of fiscal 2011 of $(9.9) million or $(0.20) per fully-diluted share. The results for the third quarter of fiscal 2012 include restructuring charges, net of related income-tax impact, in the amount of $2.5 million, or $0.05 per fully diluted share. The results for the third quarter of fiscal 2011 include restructuring charges, net of related income-tax impact, in the amount of $0.3 million or $0.01 per fully diluted share.

On a Non-GAAP basis, net loss for the third quarter of fiscal 2012 was $(7.7) million, or $(0.15) per fully-diluted share, compared to a net loss for the second quarter of fiscal 2012 of $(0.5) million or $(0.01) per fully-diluted share, and a net loss for the third quarter of fiscal 2011 of $(6.2) million or $(0.12) 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 third quarter of fiscal 2012 was $1.6 million, compared to cash usage of $2.6 million for the second quarter of fiscal 2012 and cash usage of $8.6 million for the third quarter of fiscal 2011. There was no stock buyback during the third quarter of fiscal 2012, compared to a stock buyback of $5.5 million for the third quarter of fiscal 2011.

"We saw softening demand in Q3 in the personal computer and mobile device markets, which negatively impacted our business," said Tom St. Dennis, CEO of FormFactor. "We continued our focus on operational efficiencies during Q3, and also undertook a transformational strategic step through our acquisition of Micro-Probe, which closed on October 16th."

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 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 November 3, 2012, 9:00 p.m. Pacific Daylight Time, and can be accessed by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) and entering confirmation code 35897047. 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 and the FormFactor logo are registered 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 Micro-Probe acquisition; risks around customers' engagement with the newly combined entities; risks of the company's ability to meet customers' test roadmaps; 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     Year to Date  
    September 29,
2012
    September 24,
2011
    September 29,
2012
    September 24,
2011
 
                                 
Revenues   $ 41,262     $ 52,115     $ 130,881     $ 139,101  
Cost of revenues     33,110       40,141       102,406       113,168  
Gross profit     8,152       11,974       28,475       25,933  
                                 
Operating expenses:                                
  Research and development     8,573       10,423       30,355       32,861  
  Selling, general and administrative     11,594       11,200       34,273       34,741  
  Restructuring charges, net     2,481       258       2,584       197  
  Impairment of long-lived assets     143       100       372       451  
    Total operating expenses     22,791       21,981       67,584       68,250  
Operating loss     (14,639 )     (10,007 )     (39,109 )     (42,317 )
                                 
Interest income, net     163       335       557       1,128  
Other income (expense), net     171       (75 )     1,127       135  
Loss before income taxes     (14,305 )     (9,747 )     (37,425 )     (41,054 )
Provision for (benefit from) income taxes     173       157       1,276       (2,048 )
                                 
Net loss   $ (14,478 )   $ (9,904 )   $ (36,149 )   $ (39,006 )
                                 
Net loss per share:                                
  Basic and Diluted   $ (0.29 )   $ (0.20 )   $ (0.73 )   $ (0.77 )
                                 
Weighted-average number of shares used in per share calculations:                                
                                 
  Basic and Diluted     50,154       50,747       49,805       50,719  
                                 
 
                         
Reconciliation of Non-GAAP Net Loss:                      
                       
    Three Months Ended     Year to Date  
    September 29,
2012
    September 24,
2011
    September 29,
2012
    September 24,
2011
 
                                 
GAAP net loss   $ (14,478 )   $ (9,904 )   $ (36,149 )   $ (39,006 )
Stock-based compensation, net of related income-tax impact *     2,968       3,339       9,489       9,661  
Restructuring charges, net of related income-tax impact *     2,481       258       2,584       197  
Acquisition costs, net of related income-tax impact *     1,175       -       1,175       -  
Impairment of long-lived assets, net of related income-tax impact *     143       100       372       451  
Income tax valuation allowance release     -       -       -       (2,450 )
Non-GAAP net loss   $ (7,711 )   $ (6,207 )   $ (22,529 )   $ (31,147 )
                                 
Non-GAAP net loss per share:                                
  Basic and Diluted   $ (0.15 )   $ (0.12 )   $ (0.45 )   $ (0.61 )
                                 
Weighted-average number of shares used in per share calculations:                                
  Basic and Diluted     50,154       50,747       49,805       50,719  
                                 
   
 *   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)  
   
    September 29,
2012
    December 31,
2011
 
   
ASSETS                
Current assets:                
  Cash and cash equivalents   $ 162,062     $ 139,049  
  Marketable securities     114,101       157,642  
  Accounts receivable, net     16,891       12,662  
  Inventories     20,054       18,092  
  Deferred tax assets     729       1,162  
  Prepaid expenses and other current assets     6,367       8,368  
    Total current assets     320,204       336,975  
Restricted cash     318       317  
Property, plant and equipment, net     32,912       35,132  
Deferred tax assets     5,902       5,954  
Other assets     3,495       4,693  
    Total assets   $ 362,831     $ 383,071  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
Current liabilities:                
  Accounts payable   $ 10,856     $ 9,731  
  Accrued liabilities     17,412       13,966  
  Income taxes payable     434       100  
  Deferred revenue     6,093       4,798  
    Total current liabilities     34,795       28,595  
Long-term income taxes payable     1,355       4,112  
Deferred rent and other liabilities     4,228       3,712  
    Total liabilities     40,378       36,419  
Stockholders' equity:                
  Common stock and capital in excess of par value     663,923       652,074  
  Accumulated other comprehensive income     2,800       2,700  
  Accumulated deficit     (344,270 )     (308,122 )
    Total stockholders' equity     322,453       346,652  
    Total liabilities and stockholders' equity   $ 362,831     $ 383,071  
                     
                     
Contact:
Investor
Stan Finkelstein
Investor Relations
(925) 290-4321
Email Contact
View Comments (0)