FormFactor, Inc. Reports Fourth Quarter and Annual Results
LIVERMORE, CA, Jan 28, 2010 (MARKETWIRE via COMTEX News Network) -- FormFactor, Inc. (NASDAQ: FORM) today announced its financial results for the fourth quarter of fiscal 2009, that ended on December 26, 2009. Quarterly revenues were $33.0 million, down 24.6% from $43.8 million in the third quarter of fiscal 2009, and down 17.3% from $39.9 million in the fourth quarter of fiscal 2008.
For fiscal 2009, FormFactor posted revenue of $135.3 million, down 35.6% from $210.2 million in fiscal 2008.
Net loss for the fourth quarter of fiscal 2009 was $28.0 million or $(0.56) per share, compared to a net loss for the third quarter of fiscal 2009 of $19.4 million or $(0.39) per share and a net loss for the fourth quarter of fiscal 2008 of $30.0 million or $(0.61) per share. Net loss for fiscal 2009 was $155.7 million or $(3.15) per share, compared to a net loss for fiscal 2008 of $80.6 million or $(1.65) per share.
On a non-GAAP basis, net loss for the fourth quarter of fiscal 2009 was $22.8 million or $(0.46) per share, compared to a net loss for the third quarter of fiscal 2009 of $19.4 million or $(0.39) per share and a net loss for the fourth quarter of fiscal 2008 of $23.6 million or $(0.48) per share. On a non-GAAP basis, net loss for fiscal 2009 was $88.6 million or $(1.79) per share, compared to a net loss for fiscal 2008 of $57.0 million or $(1.17) per share. A reconciliation of GAAP to non-GAAP net loss and net loss per share is provided in the schedules included below.
"Although our Q4 results reflect delays in the timing of our customers' technology transitions, tooling cycles and volume plans, exiting the quarter, we are encouraged by the uptake in interest and orders we experienced from a broader customer base," said Mario Ruscev, CEO of FormFactor. "In 2009, in addition to delivering new technologies for our existing products, which helped us expand our share and customer reach, we also launched our next generation DRAM and Flash memory wafer probe cards incorporating our new product architectures. We are pleased by the customer reception of our new products, and we believe that these new technologies and products are critical to meeting customers' reduced lead times and enabling FormFactor's growth and expansion into markets we have not fully addressed. Although the timing of the recovery is still uncertain, we remain confident that we will return to growth in 2010."
The company has posted its revenue breakdown by region and market segment and GAAP to non-GAAP reconciliation information on the Investors section of its website at www.formfactor.com. FormFactor will conduct a conference call at 1:30 p.m. PST, or 4:30 p.m. EST, 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.
A telephone replay of the conference call will be available approximately two hours after the conclusion of the call. The telephone replay will be available through February 1, 2010, 9:00 p.m. Pacific Standard Time, and can be accessed by dialing 888-203-1112 (domestic) or 719-457-0820 (international) and entering confirmation code 1210545.
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 operations, business outlook, 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 certain semiconductor devices, including DRAM and Flash memory devices; the company's ability to align its operating plans and structure with the current business environment to improve its operating efficiency; the company's ability to develop innovative testing technologies, to timely deliver and qualify new products that meet its customers' reduced lead times, testing requirements and lower their overall cost of test, and that enable the company to grow and expand into markets it has not fully addressed; and the timing of customers' technology transitions, tooling cycles and volume ramps and their effect on the company's future growth. 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 annual period ended December 27, 2008 and the company's filings on Form 10-Q for the quarterly periods in its fiscal 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 Twelve Months Ended
---------------------- ----------------------
December December December December
26, 27, 26, 27,
2009 2008 2009 2008
---------- ---------- ---------- ----------
Revenues $ 32,995 $ 39,889 $ 135,335 $ 210,189
Cost of revenues 35,797 39,300 135,804 173,926
---------- ---------- ---------- ----------
Gross profit (loss) (2,802) 589 (469) 36,263
---------- ---------- ---------- ----------
Operating expenses:
Research and development 15,686 16,221 57,509 65,509
Selling, general and
administrative 16,489 26,170 78,428 95,208
Restructuring charges 837 473 8,780 9,157
Impairment of long-lived
assets - 4,400 - 4,400
---------- ---------- ---------- ----------
Total operating expenses 33,012 47,264 144,717 174,274
---------- ---------- ---------- ----------
Operating loss (35,814) (46,675) (145,186) (138,011)
Interest income, net 711 1,638 3,282 12,446
Other income (expense),
net 385 249 (535) 653
---------- ---------- ---------- ----------
Loss before income taxes (34,718) (44,788) (142,439) (124,912)
Provision for (benefit
from) income taxes (6,755) (14,828) 13,214 (44,291)
---------- ---------- ---------- ----------
Net loss $ (27,963) $ (29,960) $ (155,653) $ (80,621)
========== ========== ========== ==========
Net loss per share:
Basic and Diluted $ (0.56) $ (0.61) $ (3.15) $ (1.65)
========== ========== ========== ==========
Weighted-average number of
shares used in per share
calculations:
Basic and Diluted 49,755 49,061 49,483 48,905
========== ========== ========== ==========
Reconciliation of Non-GAAP Net loss:
Three Months Ended Twelve Months Ended
---------------------- ----------------------
December December December December
26, 27, 26, 27,
2009 2008 2009 2008
---------- ---------- ---------- ----------
GAAP Net loss $ (27,963) $ (29,960) $ (155,653) $ (80,621)
Deferred tax valuation
allowance - - 44,683 -
Stock-based compensation
related to option
modification, net of
related income-tax
impact * 39 - 1,616 -
Stock-based
compensation, net of
related income-tax
impact * 4,325 3,326 14,926 15,265
Restructuring charges,
net of related
income-tax impact 787 292 5,805 5,653
Impairment of long-lived
assets, net of related
income-tax impact - 2,717 - 2,717
---------- ---------- ---------- ----------
Non-GAAP Net loss $ (22,812) $ (23,625) $ (88,623) $ (56,987)
========== ========== ========== ==========
Non-GAAP Net loss per
share:
Basic and Diluted $ (0.46) $ (0.48) $ (1.79) $ (1.17)
========== ========== ========== ==========
Weighted-average number of
shares used in per share
calculations:
Basic and Diluted 49,755 49,061 49,483 48,905
========== ========== ========== ==========
* There was no related income tax impact to stock-based compensation in
the third and fourth quarters of fiscal 2009 as a result of the
valuation allowance recorded after the second quarter.
FORMFACTOR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)
December 26, December 27,
2009 2008
------------ -------------
ASSETS
Current assets:
Cash and cash equivalents $ 122,043 $ 337,926
Marketable securities 327,192 184,968
Accounts receivable, net 29,412 34,127
Inventories 25,548 18,788
Deferred tax assets, net 3,296 23,039
Refundable income taxes 26,774 29,413
Prepaid expenses and other current assets 12,346 14,702
------------ -------------
Total current assets 546,611 642,963
Restricted cash 680 680
Property and equipment, net 97,758 113,813
Deferred tax assets, net 68 20,580
Other assets 8,717 7,674
------------ -------------
Total assets $ 653,834 $ 785,710
============ =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 29,250 $ 33,214
Accrued liabilities 22,948 25,693
Income taxes payable 481 1,904
Deferred revenue 10,856 4,946
Deferred rent 469 452
------------ -------------
Total current liabilities 64,004 66,209
Long-term income taxes payable 6,423 7,732
Deferred rent and other liabilities 5,626 5,705
------------ -------------
Total liabilities 76,053 79,646
------------ -------------
Stockholders' equity
Common stock, $0.001 par value 50 49
Additional paid-in capital 630,333 602,295
Accumulated other comprehensive income 1,253 1,922
Accumulated deficit (53,855) 101,798
------------ -------------
Total stockholders' equity 577,781 706,064
------------ -------------
Total liabilities and stockholders' equity $ 653,834 $ 785,710
============ =============
Investor Contact: Michael Magaro Investor Relations (925) 290-4321 Email Contact Trade Press Contact: David Viera Corporate Communications (925) 290-4681 Email Contact
SOURCE: FormFactor
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