Dear Fellow Stockholders,
AllWe had another record-breaking year that produced over three-quarters of us at FormFactor, together with the rest of the world, weathered an exceedingly challenging year in 2020. A global pandemic impacted our entire operations, heavy smoke from massive fires linked to the global climate crisis surrounded many of our facilities, and prevalent injustice afflicted our communities. As a result of these challenges, however, our company and its culture are stronger and more resilient today, with an even sharper focus on the opportunities ahead of us.
We are more conscious than ever of how our work facilitates critical infrastructure, essential businesses, and healthier communities by enabling key innovations and the volume production of devices for communications, computing and other vital applications. Last year and still today we have clearly witnessed the power of these technologies to keep us safe and fuel how we connect, work and learn. This heightened awareness helped motivate our employees to maintain the productivity, agility and creativity to achieve new recordsbillion dollars in revenue, and profitability in 2020, including an 18% growth in revenue11% increase over the previous year, despite the pandemic headwinds. We continued to drive business performance and generate positive momentum across the company by refining the adaptive strategies that contributed to our success in 2020. We also record-breaking year.made additional investments in innovation and manufacturing capacity that we believe position us well for continued success in 2022 and beyond. Our new Livermore manufacturing facility began shipments in the fourth quarter of last year, and we are gradually expanding capacity at that facility, and facilities across our global manufacturing network, to meet growing customer demand.
NoneOur commitment to environmental, social and governance (“ESG”) leadership was recognized by Newsweek magazine, which named us as one of America’s Most Responsible Companies for the year 2022. We are very proud of this accomplishment and remain dedicated to continued improvement of our successes in 2020 would have been possible without the continued supportcorporate social responsibility program.
The dedication and excellence of FormFactor’s stockholders,our employees continue to drive our innovation and growth, and we expressremain energized by the important role we play in the dynamic semiconductor industry. Our success and ability to generate long-term value for stockholders is also attributable to the sustained focus of our sincere appreciation. We also convey our gratitude through our commitment to performance, integrity, and sustainability within a FormFactor culture of oversight, transparency, and accountability at every level. This includeslong-term strategic objectives by our Board of Director’sDirectors and management’s continued focus upon our long-term strategic objectives:management:
Leadership in Core Markets: Increase market share in the advanced probe card market segmentcards and in engineering systems, while innovating new and leverageleveraging existing key roadmap technologies and investments across all our served markets.
Drive Profitability: Maintain and continuously improve efficiency by capitalizing on our leadership positions and economies of scale.
Enter and Develop in Adjacent Markets: Continue long-term diversification of revenue streams and customer mix through M&Amergers and acquisitions and product extensions in semiconductor test and measurement.
COVID-19 Response.Connecting with Stockholders. From the pandemic’s outset,We are committed to effective stockholder engagement, which we believe contributes to greater accountability of our Board oversaw our COVID-19 response strategy, which focused on our actions to continue manufacturing while maintaining the safety of our employees to support our customers’ business continuity and critical infrastructure. We are proud of how well our employees supported our COVID-19 safety protocols and contributed to the efforts of local communities and healthcare providers.
Connecting with Stockholders. management. In the context of the pandemic and the uncertainty it created among investors, we enhanced our already robust investor relations program. We found that the adoption of virtual meeting formats actually helped us broaden our investor outreach as well. We maintained our strong existing relationships with semiconductor equipment sell-side analysts, which represents a rather broad coverage universe, and2021, we attended substantially more virtual conferences and non-deal roadshows. In August,than we also hosted an analyst day online atwould have been able to attend in-person, which we introducedfound helped broaden our new target financial model based upon specific technology trendsinvestor outreach.
Sustainability and market drivers.
MaintainingCorporate Responsibility. In recent years, ESG matters have become a Highly Qualified and Diverse Board. Our Board composition reflects an effective mix of industry knowledge, functional expertise, company experience, and diverse perspectives. We welcomed two new female members tokey focus for our Board, last year,management, and both delivered exemplary service toall our employees. Guided by our Board, we have made significant progress in the company. In 2021, we willintegration of ESG objectives throughout FormFactor. Our products continue to pursuehelp the semiconductor industry improve yields and efficiency to advance the sustainability of the global electronics supply chain.
Human Capital. We remain focused on maintaining a highly qualified and diverse board candidates as we move forward. The Boardengaged workforce and its