FormFactor, Inc. Reports Second Quarter Results
"Our strong revenue result -- the highest level since 2007 -- reflects our solid execution as we doubled our Foundry and Logic shipments for a key customer and experienced improvement in our DRAM business," said
FormFactor Results
On a GAAP basis, net income for the second quarter of fiscal 2016 was
On a non-GAAP basis, net income for the second quarter of fiscal 2016 was
Cash usage in the second quarter of fiscal 2016 was
Cascade Microtech Second Quarter results ending
A reconciliation of Cascade's GAAP to non-GAAP gross margin and operating income for the three months ended
Gross profit per GAAP | $ | 22,746 | ||
Stock-based compensation | 41 | |||
Non-GAAP gross profit | $ | 22,787 | ||
Non-GAAP gross margin | 61.5 | % | ||
Operating loss per GAAP | $ | (30 | ) | |
Stock-based compensation | 1,177 | |||
Amortization of intangibles | 508 | |||
Acquisition related expenses | 6,282 | |||
$ | 7,937 | |||
Outlook
"We are currently expecting strong second half performance in each of our businesses," said
For the third quarter ending on
Reconciling Items* | Non-GAAP | |||||
Revenue | -- | |||||
Gross Margin | 32% to 36% | 40% to 44% | ||||
Net income (loss) per diluted share | ( |
*Reconciling items are stock based compensation and amortization of intangibles |
Cash flow is forecasted to be positive
The company has posted its revenue breakdown by region and market segment on the Investors section of its website at www.formfactor.com.
The public is invited to listen to a live webcast of
Use of Non-GAAP Financial Information:
To supplement our condensed consolidated financial results prepared under generally accepted accounting principles, or GAAP, we disclose certain non-GAAP measures of non-GAAP net income and non-GAAP earnings per fully-diluted share that are adjusted from the nearest GAAP financial measure to exclude certain costs, expenses and gains. Reconciliations of the adjustments to GAAP results for the three and six months ended
About
Forward-looking Statements:
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including with respect to the company's future financial and operating results, the company's plans, strategies and objectives for future operations, and the anticipated results of the acquisition of
FORM-F
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
Revenues | $ | 83,083 | $ | 73,885 | $ | 136,694 | $ | 144,714 | ||||||||
Cost of revenues | 57,656 | 50,582 | 101,475 | 98,621 | ||||||||||||
Gross profit | 25,427 | 23,303 | 35,219 | 46,093 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 11,133 | 11,217 | 21,982 | 22,302 | ||||||||||||
Selling, general and administrative | 14,030 | 11,381 | 26,546 | 23,265 | ||||||||||||
Restructuring charges, net | 6,910 | -- | 6,910 | 503 | ||||||||||||
Impairment of long-lived assets | -- | 8 | -- | 8 | ||||||||||||
Total operating expenses | 32,073 | 22,606 | 55,438 | 46,078 | ||||||||||||
Operating income (loss) | (6,646 | ) | 697 | (20,219 | ) | 15 | ||||||||||
Interest income, net | 88 | 65 | 205 | 149 | ||||||||||||
Other income (expense), net | (302 | ) | 100 | (616 | ) | 1,602 | ||||||||||
Income (loss) before income taxes | (6,860 | ) | 862 | (20,630 | ) | 1,766 | ||||||||||
Provision (benefit) for income taxes | (43,744 | ) | 24 | (43,714 | ) | 145 | ||||||||||
Net income | $ | 36,884 | $ | 838 | $ | 23,084 | $ | 1,621 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.62 | $ | 0.01 | $ | 0.39 | $ | 0.03 | ||||||||
Diluted | $ | 0.61 | $ | 0.01 | $ | 0.39 | $ | 0.03 | ||||||||
Weighted-average number of shares used in per share calculations: | ||||||||||||||||
Basic | 59,572 | 58,109 | 59,001 | 57,532 | ||||||||||||
Diluted | 59,988 | 59,094 | 59,639 | 58,874 |
RECONCILIATION OF NON-GAAP NET INCOME | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
GAAP net income | $ | 36,884 | $ | 838 | $ | 23,084 | $ | 1,621 | ||||||||
Stock-based compensation | 1,541 | 2,506 | 4,275 | 5,415 | ||||||||||||
Restructuring charges, net | 6,910 | -- | 6,910 | 503 | ||||||||||||
Acquisition and integration related expenses (recoveries) | 3,795 | 2 | 5,796 | (89 | ) | |||||||||||
Amortization of intangibles, inventory and fixed assets fair value adjustment due to acquisition | 2,767 | 3,430 | 5,537 | 6,722 | ||||||||||||
Impairment of long-lived assets | -- | 8 | -- | 8 | ||||||||||||
Income tax valuation allowance release | (43,938 | ) | -- | (43,938 | ) | -- | ||||||||||
Business interruption insurance claim recovery | -- | (37 | ) | -- | (1,521 | ) | ||||||||||
Non-GAAP net income | $ | 7,959 | $ | 6,747 | $ | 1,664 | $ | 12,659 | ||||||||
Non-GAAP net income per share: | ||||||||||||||||
Basic | $ | 0.13 | $ | 0.12 | $ | 0.03 | $ | 0.22 | ||||||||
Diluted | $ | 0.13 | $ | 0.11 | $ | 0.03 | $ | 0.22 | ||||||||
Weighted-average number of shares used in per share calculations: | ||||||||||||||||
Basic | 59,572 | 58,109 | 59,001 | 57,532 | ||||||||||||
Diluted | 59,988 | 59,094 | 59,639 | 58,874 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
(In thousands) | ||||||||||
(Unaudited) | ||||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 100,225 | $ | 146,264 | ||||||
Marketable securities | 18,108 | 41,325 | ||||||||
Accounts receivable, net | 86,137 | 36,725 | ||||||||
Inventories, net | 68,357 | 27,223 | ||||||||
Refundable income taxes | 1,517 | -- | ||||||||
Prepaid expenses and other current assets | 10,094 | 6,481 | ||||||||
Total current assets | 284,438 | 258,018 | ||||||||
Restricted cash | 438 | 435 | ||||||||
Property, plant and equipment, net | 43,791 | 23,853 | ||||||||
188,517 | 30,731 | |||||||||
Intangibles, net | 172,146 | 25,552 | ||||||||
Deferred tax assets | 3,926 | 3,281 | ||||||||
Other assets | 2,000 | 853 | ||||||||
Total assets | $ | 695,256 | $ | 342,723 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | $ | 54,063 | $ | 18,072 | ||||||
Accrued liabilities | 51,088 | 21,507 | ||||||||
Current portion of term loan | 7,077 | -- | ||||||||
Income taxes payable | 1,662 | 110 | ||||||||
Deferred revenue | 4,868 | 3,892 | ||||||||
Total current liabilities | 118,758 | 43,581 | ||||||||
Long-term income taxes payable | 1,240 | 1,069 | ||||||||
Term loan, less current portion | 141,417 | -- | ||||||||
Deferred tax liabilities | 5,662 | -- | ||||||||
Deferred rent and other liabilities | 4,595 | 3,392 | ||||||||
Total liabilities | 271,672 | 48,042 | ||||||||
Commitments and contingencies | ||||||||||
Stockholders' equity: | ||||||||||
Common stock and capital in excess of par value | 823,222 | 718,962 | ||||||||
Accumulated other comprehensive loss | (663 | ) | (2,222 | ) | ||||||
Accumulated deficit | (398,975 | ) | (422,059 | ) | ||||||
Total stockholders' equity | 423,584 | 294,681 | ||||||||
Total liabilities and stockholders' equity | $ | 695,256 | $ | 342,723 | ||||||
About our Non-GAAP Net Income and Adjustments:
We believe that the presentation of non-GAAP net income and non-GAAP earnings per fully-diluted share provides supplemental information that we believe are important to understanding financial and business trends relating to our financial condition and results of operations. Non-GAAP net income and non-GAAP earnings per fully-diluted share are among the primary indicators used by management as a basis for planning and forecasting future periods, and by management and our board of directors to determine whether our operating performance has met certain targets and thresholds. Management uses non-GAAP net income and non-GAAP earnings per fully-diluted share when evaluating operating performance because it believes that the exclusion of the items indicated herein, for which the amounts or timing may vary significantly depending upon the company's activities and other factors, facilitates comparability of the company's operating performance from period to period. We have chosen to provide this information to investors so they can analyze our operating results closer to the way that management does, and use this information in their assessment of our business and the valuation of our company. We compute non-GAAP net income and non-GAAP fully-diluted earnings per share by adjusting GAAP net income and GAAP earnings per fully-diluted share to remove the impact of certain adjustments and the tax effect of those adjustments. These non-GAAP measures are not in accordance with, or an alternative to, GAAP and may be materially different from other non-GAAP measures, including similarly titled non-GAAP measures used by other companies. The presentation of this additional information should not be considered in isolation from, as a substitute for, or superior to, net income or earnings per fully-diluted share prepared in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect certain items that may have a material impact upon our reported financial results. We may expect to continue to incur expenses of a nature similar to the non-GAAP adjustments described above, and exclusion of these items from our non-GAAP net income and non-GAAP earnings per fully-diluted share should not be construed as an inference that these costs are unusual, infrequent or non-recurring. For more information on the non-GAAP adjustments, please see the table captioned "Reconciliation of non-GAAP Net Income" included in this press release.
Investor Contact:
Investor Relations
(925) 290-4321
ir@formfactor.com
Source:
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