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. Reports First Quarter Results
LIVERMORE, Calif. — April 27, 2010 — FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the first quarter of fiscal 2010, that ended on March 27, 2010. Quarterly revenues were $39.7 million, up 20.2% from $33.0 million in the fourth quarter of fiscal 2009, and up 44.9% from $27.4 million in the first quarter of fiscal 2009.
Net loss for the first quarter of fiscal 2010 was $38.2 million or $(0.77) per fully-diluted share, compared to a net loss for the fourth quarter of fiscal 2009 of $28.0 million or $(0.56) per fully-diluted share and a net loss for the first quarter of fiscal 2009 of $37.9 million or $(0.77) per fully-diluted share. On a Non-GAAP basis, net loss for the first quarter of fiscal 2010 was $29.4 million or $(0.59) per fully-diluted share, compared to a net loss for the fourth quarter of fiscal 2009 of $22.8 million or $(0.46) per fully-diluted share and a net loss for the first quarter of fiscal 2009 of $30.1 million or $(0.61) per fully-diluted share. The first quarter of fiscal 2010 results include pre-tax restructuring charges of approximately $3.6 million which is associated with one-time severance benefits. The restructuring charge is related to our manufacturing expansion to Singapore, which is expected to result in cost benefits from our investment by the first quarter of 2011. The fourth quarter of fiscal 2009 results included $0.9 million in pre-tax restructuring charges as compared with the first quarter of fiscal 2009 results, which included $7.7 million in pre-tax restructuring charges.
“Increasing design activity and volume purchases in memory applications are having a positive impact on our revenues,” said Mario Ruscev, CEO of FormFactor. “The transitions to DDRIII and to smaller technology nodes continue to gain momentum. Our focus is on customer qualification of our new products and improving manufacturing efficiency to drive profitability.”
Q1 Business Highlights:
· Shipping TouchMatrix and SmartMatrix probe cards in volume.
· Received full product acceptance for TouchMatrix at a major NAND customer.
· Opened our new wafer probe card manufacturing facility and global business center in Singapore.
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 8:00 a.m. PDT, or 11:00 a.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 April 29th, 2010 at 9:00 p.m. PDT and can be accessed by dialing (800) 642-1687 (domestic) or (706) 645-9291 (international) and entering confirmation code 64289833.
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:
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: changes in the market environment, including the demand for DRAM and Flash memory devices and certain other semiconductor devices and the status and momentum of transitions to DDRIII and to smaller technology nodes; the company’s ability to optimize its operating plans and structure with the business environment, including its restructuring activities related to the company’s manufacturing expansion in Singapore; the company’s ability to develop innovative testing technologies and qualify new products with customers, to improve manufacturing efficiencies, and to timely deliver new products that meet its customer’s testing requirements and lower their overall cost of test. 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 26, 2009, as 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 |
| ||||
|
| March 27, |
| March 28, |
| ||
|
| 2010 |
| 2009 |
| ||
|
|
|
|
|
| ||
Revenues |
| $ | 39,666 |
| $ | 27,369 |
|
Cost of revenues |
| 41,994 |
| 31,048 |
| ||
Gross profit (loss) |
| (2,328 | ) | (3,679 | ) | ||
|
|
|
|
|
| ||
Operating expenses: |
|
|
|
|
| ||
Research and development |
| 15,091 |
| 14,110 |
| ||
Selling, general and administrative |
| 17,867 |
| 26,310 |
| ||
Restructuring charges |
| 3,550 |
| 7,679 |
| ||
Total operating expenses |
| 36,508 |
| 48,099 |
| ||
Operating loss |
| (38,836 | ) | (51,778 | ) | ||
|
|
|
|
|
| ||
Interest income, net |
| 775 |
| 1,115 |
| ||
Other income (expense), net |
| 117 |
| (416 | ) | ||
Loss before income taxes |
| (37,944 | ) | (51,079 | ) | ||
Provision for (benefit from) income taxes |
| 240 |
| (13,136 | ) | ||
Net loss |
| $ | (38,184 | ) | $ | (37,943 | ) |
|
|
|
|
|
| ||
Net loss per share: |
|
|
|
|
| ||
Basic and Diluted |
| $ | (0.77 | ) | $ | (0.77 | ) |
|
|
|
|
|
| ||
Weighted-average number of shares used in per share calculations: |
|
|
|
|
| ||
|
|
|
|
|
| ||
Basic and Diluted |
| 49,890 |
| 49,201 |
| ||
|
|
|
|
|
| ||
Reconciliation of Non-GAAP Net loss: |
|
|
|
|
| ||
|
| Three Months Ended |
| ||||
|
| March 27, |
| March 28, |
| ||
|
| 2010 |
| 2009 |
| ||
|
|
|
|
|
| ||
GAAP Net loss |
| $ | (38,184 | ) | $ | (37,943 | ) |
Stock-based compensation, net of related income-tax impact * |
| 5,258 |
| 2,953 |
| ||
Restructuring charges, net of related income-tax impact* |
| 3,550 |
| 4,851 |
| ||
Non-GAAP Net loss |
| $ | (29,376 | ) | $ | (30,139 | ) |
|
|
|
|
|
| ||
Non-GAAP Net loss per share: |
|
|
|
|
| ||
Basic and Diluted |
| $ | (0.59 | ) | $ | (0.61 | ) |
|
|
|
|
|
| ||
Weighted-average number of shares used in per share calculations: |
|
|
|
|
| ||
Basic and Diluted |
| 49,890 |
| 49,201 |
| ||
* There was no related income tax impact to stock-based compensation and restructuring charges in the first quarter of fiscal 2010 as a result of the valuation allowance recorded.
FORMFACTOR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
(Unaudited)
|
| March 27, |
| December 26, |
| ||
|
| 2010 |
| 2009 |
| ||
ASSETS |
|
|
|
|
| ||
Current assets: |
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 92,978 |
| $ | 122,043 |
|
Marketable securities |
| 339,850 |
| 327,192 |
| ||
Accounts receivable, net |
| 34,519 |
| 29,412 |
| ||
Inventories |
| 31,880 |
| 25,548 |
| ||
Deferred tax assets, net |
| 3,317 |
| 3,296 |
| ||
Refundable income taxes |
| 318 |
| 26,774 |
| ||
Prepaid expenses and other current assets |
| 12,616 |
| 12,346 |
| ||
Total current assets |
| 515,478 |
| 546,611 |
| ||
|
|
|
|
|
| ||
Restricted cash |
| 680 |
| 680 |
| ||
Property and equipment, net |
| 97,108 |
| 97,758 |
| ||
Deferred tax assets, net |
| 2,255 |
| 2,202 |
| ||
Other assets |
| 8,211 |
| 8,717 |
| ||
Total assets |
| $ | 623,732 |
| $ | 655,968 |
|
|
|
|
|
|
| ||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
| ||
Current liabilities: |
|
|
|
|
| ||
Accounts payable |
| $ | 29,876 |
| $ | 29,250 |
|
Accrued liabilities |
| 21,667 |
| 23,417 |
| ||
Income taxes payable |
| 173 |
| 481 |
| ||
Deferred revenue |
| 11,557 |
| 10,856 |
| ||
Total current liabilities |
| 63,273 |
| 64,004 |
| ||
Long-term income taxes payable |
| 6,423 |
| 6,423 |
| ||
Deferred rent and other liabilities |
| 5,468 |
| 5,626 |
| ||
Deferred tax liability |
| 2,134 |
| 2,134 |
| ||
Total liabilities |
| 77,298 |
| 78,187 |
| ||
Stockholders’ equity |
|
|
|
|
| ||
Common stock, $0.001 par value |
| 51 |
| 50 |
| ||
Additional paid-in capital |
| 637,273 |
| 630,333 |
| ||
Accumulated other comprehensive income |
| 1,149 |
| 1,253 |
| ||
Accumulated deficit |
| (92,039 | ) | (53,855 | ) | ||
Total stockholders’ equity |
| 546,434 |
| 577,781 |
| ||
Total liabilities and stockholders’ equity |
| $ | 623,732 |
| $ | 655,968 |
|