FormFactor (FORM) 8-K Results of Operations and Financial Condition

EXHIBIT 99.01

News Release

Investor Contact:	Trade Press Contact:
Michael Magaro	David Viera
Investor Relations	Corporate Communications
(925) 290-4321	(925) 290-4681
IR@FormFactor.com	dviera@FormFactor.com

FormFactor, Inc. Announces Second Quarter 2008 Financial Results

LIVERMORE, Calif. — July 30, 2008 — FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the second quarter of fiscal 2008, ended June 28, 2008. Quarterly revenues were $52.0 million, down 20.8% from $65.7 million in the first quarter of fiscal 2008, and down 54.4% from $114.1 million in the second quarter of fiscal 2007.

Net loss for the second quarter of fiscal 2008 was $18.7 million or ($0.38) per fully diluted share, which included $4.5 million or $0.09 per share of stock-based compensation, net of tax. This compares to net loss for the first quarter of fiscal 2008 of $18.0 million or ($0.37) per fully diluted share, including $4.5 million or $0.09 per share of stock-based compensation, net of tax. Net income for the second quarter of fiscal 2007 was $21.1 million or $0.43 per fully diluted share, which included $4.4 million or $0.09 per share of stock-based compensation, net of tax.  Second quarter of fiscal 2008 results also include approximately $2.1 million in restructuring costs or $0.04 per fully diluted share, net of tax.

“The second quarter continued to present a challenging business environment for FormFactor and we focused on realigning our business to be better positioned for profitable growth,” stated Mario Ruscev, chief executive officer of FormFactor.  “We continue to make significant investments in research and development to enhance the differentiation of our existing products.  We are also aggressively investing in next generation technologies positioning FormFactor for strong growth into the future.”

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 web cast of FormFactor’s conference call on the Investors section of the company’s website at www.formfactor.com. An audio replay of the conference call will also be made available approximately two hours after the conclusion of the call. The audio replay will remain available until August 1, 2008 at 6:30 p.m. PDT and can be accessed by dialing 888-203-1112 (domestic) or 719-457-0820 (international) and entering confirmation code 4506290.

About FormFactor:

Founded in 1993, FormFactor, Inc. (Nasdaq: FORM) is the leader in advanced wafer probe cards, which are used by semiconductor manufacturers to electrically test integrated circuits, or ICs. The company’s wafer sort, burn-in and device performance testing products move IC testing upstream

from post-packaging to the wafer level, enabling semiconductor manufacturers to lower their overall production costs, improve yields, and bring next-generation devices to market. 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.

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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 business momentum, demand for our products and future growth. 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: the company’s ability to realign its business to be better positioned for profitable growth; the success of the company’s efforts to enhance the differentiation of its existing products, including to improve product performance and delivery; the ability of the company to continue to invest in innovation to drive and realize future growth; and the timing of any recovery of the company’s business. 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 29, 2007 and the company’s Form 10-Q for the fiscal quarter ended March 29, 2008, filed with the Securities and Exchange Commission (“SEC”), and subsequent SEC filings. 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.

FORMFACTOR, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)

	Three Months Ended						Six Months Ended
	June 28,			June 30,			June 28,			June 30,
	2008			2007			2008			2007
Revenues	$	52,013		$	114,124		$	117,716		$	216,395
Cost of revenues	40,912			49,966			94,043			97,954
Gross margin	11,101			64,158			23,673			118,441
Operating expenses:
Research and development	15,821			14,384			32,209			28,485
Selling, general and administrative	22,705			23,056			45,363			45,984
Restructuring charge	3,223			—			8,543			—
Total operating expenses	41,749			37,440			86,115			74,469
Operating income (loss)	(30,648		)	26,718			(62,442		)	43,972
Interest income (expense)	3,128			5,557			8,003			11,001
Other income (expense)	(652		)	(61		)	141			(181		)
	2,476			5,496			8,144			10,820
Income (loss) before income taxes	(28,172		)	32,214			(54,298		)	54,792
Provision (benefit) for income taxes	(9,513		)	11,109			(17,678		)	18,476
Net income (loss)	$	(18,659	)	$	21,105		$	(36,620	)	$	36,316
Net income (loss) per share:
Basic	$	(0.38	)	$	0.44		$	(0.75	)	$	0.76
Diluted	$	(0.38	)	$	0.43		$	(0.75	)	$	0.74
Weighted-average number of shares used in per share calculations:
Basic	48,835			47,893			48,789			47,639
Diluted	48,835			49,516			48,789			49,289

FORMFACTOR, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)

(Unaudited)

	June 28,		December 29,
	2008		2007
ASSETS
Current assets:
Cash and cash equivalents	$	427,176	$	315,232
Marketable securities	115,559		254,814
Accounts receivable, net	45,555		69,486
Inventories	24,718		29,309
Deferred tax assets	18,492		17,995
Refundable income taxes	18,231		2,043
Prepaid expenses and other current assets	12,841		13,461
Total current assets	662,572		702,340
Restricted cash	2,250		2,250
Property and equipment, net	126,205		130,882
Deferred tax assets	13,575		10,038
Other assets	9,587		9,812
Total assets	$	814,189	$	855,322
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	30,626	$	42,893
Accrued liabilities	20,115		30,029
Income tax payable	225		1,328
Deferred revenue and customer advances	7,807		5,535
Deferred rent	458		462
Total current liabilities	59,231		80,247
Long term tax payable	13,089		12,248
Deferred rent and other liabilities	5,800		5,877
Total liabilities	78,120		98,372
Stockholders’ equity
Common stock, $0.001 par value	49		49
Additional paid-in capital	589,901		573,553
Accumulated other comprehensive income	320		929
Retained earnings	145,799		182,419
Total stockholders’ equity	736,069		756,950
Total liabilities and stockholders’ equity	$	814,189	$	855,322