FormFactor, Inc. Announces Third Quarter 2008 Financial Results
LIVERMORE, CA, Oct 28, 2008 (MARKET WIRE via COMTEX News Network) -- FormFactor, Inc. (NASDAQ: FORM) today announced its financial results for the third quarter of fiscal 2008, ended September 27, 2008. Quarterly revenues were $52.6 million, up 1.2% from $52.0 million in the second quarter of fiscal 2008, and down 58.0% from $125.3 million in the third quarter of fiscal 2007.
Net loss for the third quarter of fiscal 2008 was $14.0 million or ($0.29) per share on a diluted basis, which included $3.3 million or $0.07 per share of stock-based compensation, net of tax and a one-time tax benefit of $2.8 million or $0.06 per share from the settlement of certain tax audits. This compares to a net loss for the second quarter of fiscal 2008 of $18.7 million or ($0.38) per share on a diluted basis, including $4.5 million or $0.09 per share of stock-based compensation, net of tax. Net income for the third quarter of fiscal 2007 was $22.2 million or $0.45 per share on a diluted basis, which included $3.7 million or $0.08 per share of stock-based compensation, net of tax.
"Despite continued semiconductor industry weakness, we made progress with our technology and business model," stated Mario Ruscev, chief executive officer of FormFactor. "That includes improving product performance and delivery, with continued emphasis on innovation to drive future growth. We are also building an organization with greater regionalization for stronger customer support, and refining our financial model."
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 October 30, 2008 at 10:30 p.m. PDT and can be accessed by dialing 888-203-1112 (domestic) or 719-457-0820 (international) and entering confirmation code 1433310.
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.
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: our ability to make progress with our technology and business model, our ability to improve product performance and delivery, our ability to continue to invest in innovation to drive future growth, our ability to build an organization with greater regionalization for stronger customer support and to refine our financial model, the demand for certain semiconductor devices, including DRAM devices, and the timing and extent of a semiconductor industry recovery. 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-Qs for the fiscal quarters ended March 29, 2008 and June 28, 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 Nine Months Ended
--------------------- ---------------------
Sept. 27, Sept. 29, Sept. 27, Sept. 29,
2008 2007 2008 2007
--------- ---------- --------- ----------
Revenues $ 52,584 $ 125,291 $ 170,300 $ 341,686
Cost of revenues 40,583 58,609 134,626 156,563
--------- ---------- --------- ----------
Gross margin 12,001 66,682 35,674 185,123
--------- ---------- --------- ----------
Operating expenses:
Research and development 17,079 16,219 49,288 44,704
Selling, general and
administrative 23,675 23,365 69,038 69,349
Restructuring charge 141 - 8,684 -
--------- ---------- --------- ----------
Total operating expenses 40,895 39,584 127,010 114,053
--------- ---------- --------- ----------
Operating (loss) income (28,894) 27,098 (91,336) 71,070
Interest income, net 2,805 5,766 10,808 16,767
Other income 263 415 404 234
--------- ---------- --------- ----------
3,068 6,181 11,212 17,001
(Loss) income before income
taxes (25,826) 33,279 (80,124) 88,071
(Benefit) provision for income
taxes (11,785) 11,056 (29,463) 29,532
--------- ---------- --------- ----------
(Loss) net income $ (14,041) $ 22,223 $ (50,661) $ 58,539
========= ========== ========= ==========
Basic $ (0.29) $ 0.46 $ (1.04) $ 1.23
========= ========== ========= ==========
Diluted $ (0.29) $ 0.45 $ (1.04) $ 1.19
========= ========== ========= ==========
Weighted-average number of
shares used in per share
calculations:
Basic 48,988 48,291 48,855 47,757
========= ========== ========= ==========
Diluted 48,988 49,729 48,855 49,335
========= ========== ========= ==========
FORMFACTOR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)
September December
27, 2008 29, 2007
---------- ----------
ASSETS
Current assets:
Cash and cash equivalents $ 427,614 $ 315,232
Marketable securities 107,839 254,814
Accounts receivable, net 40,094 69,486
Inventories 22,205 29,309
Deferred tax assets 18,447 17,995
Refundable income taxes 27,179 2,043
Prepaid expenses and other current assets 13,553 13,461
---------- ----------
Total current assets 656,931 702,340
Restricted cash 680 2,250
Property and equipment, net 121,382 130,882
Deferred tax assets 14,927 10,038
Other assets 7,518 9,812
---------- ----------
Total assets $ 801,438 $ 855,322
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 30,043 $ 42,893
Accrued liabilities 20,768 30,029
Income taxes payable 1,840 1,328
Deferred revenue 5,437 5,535
Deferred rent 455 462
---------- ----------
Total current liabilities 58,543 80,247
Long term income taxes payable 7,414 12,248
Deferred rent and other liabilities 5,955 5,877
---------- ----------
Total liabilities 71,912 98,372
---------- ----------
Stockholders' equity
Common stock, $0.001 par value 49 49
Additional paid-in capital 597,556 573,553
Accumulated other comprehensive income 163 929
Retained earnings 131,758 182,419
---------- ----------
Total stockholders' equity 729,526 756,950
---------- ----------
Total liabilities and stockholders' equity $ 801,438 $ 855,322
========== ==========
Contacts: FormFactor, Inc. David Viera Corporate Communications (925) 290-4681 Email Contact Investor Relations Michael Magaro (925) 290-4949 Email Contact
SOURCE: FormFactor
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