FormFactor, Inc. Reports Third Quarter Results
On a GAAP basis, net loss for the third quarter of fiscal 2013 was
On a Non-GAAP basis, net loss for the third quarter of fiscal 2013 was
Although third quarter revenue was within the anticipated range, Non-GAAP gross profit at 24% of sales was significantly below the anticipated range, due to a combination of factors including lower than forecasted manufacturing utilization during September due to a significant drop in demand, lower margins on a specific high-volume DRAM design, increased warranty and service expenses caused by execution challenges at a specific customer and increased excess inventory charges.
For the third quarter, the difference between GAAP gross profit of
A reconciliation of GAAP to non-GAAP net loss and net loss per share is provided in the schedules included below.
Cash generation for the third quarter of fiscal 2013 was
"We are currently addressing our Q3 operational execution challenges," said
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
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.
About
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 anticipated results, market conditions or trends, expectations and operating plans. 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: unexpected changes in the company's manufacturing utilization, greater than anticipated warranty and service expenses, variances in margins on specific product designs, increased inventory charges, and seasonal industry trends; risks of the company's ability to realize further operational
efficiencies and achieve synergies through the MicroProbe integration; and changes in the market and macro-economic environments. 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
FORM-F
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| Revenues | $ | 67,634 | $ | 41,262 | $ | 182,987 | $ | 130,881 | ||||||||||
| Cost of revenues | 55,088 | 33,110 | 144,961 | 102,406 | ||||||||||||||
| Gross profit | 12,546 | 8,152 | 38,026 | 28,475 | ||||||||||||||
| Operating expenses: | ||||||||||||||||||
| Research and development | 10,301 | 8,573 | 32,145 | 30,355 | ||||||||||||||
| Selling, general and administrative | 12,952 | 11,594 | 41,057 | 34,273 | ||||||||||||||
| Restructuring charges, net | 143 | 2,481 | 4,215 | 2,584 | ||||||||||||||
| Loss on sale of subsidiary | -- | -- | 300 | -- | ||||||||||||||
| Impairment of long-lived assets | 15 | 143 | 194 | 372 | ||||||||||||||
| Total operating expenses | 23,411 | 22,791 | 77,911 | 67,584 | ||||||||||||||
| Operating loss | (10,865 | ) | (14,639 | ) | (39,885 | ) | (39,109 | ) | ||||||||||
| Interest income, net | 95 | 163 | 298 | 557 | ||||||||||||||
| Other income, net | (91 | ) | 171 | 541 | 1,127 | |||||||||||||
| Loss before income taxes | (10,861 | ) | (14,305 | ) | (39,046 | ) | (37,425 | ) | ||||||||||
| Provision for (benefit from) income taxes | (147 | ) | 173 | (152 | ) | (1,276 | ) | |||||||||||
| Net loss | $ | (10,714 | ) | $ | (14,478 | ) | $ | (38,894 | ) | $ | (36,149 | ) | ||||||
| Net loss per share: | ||||||||||||||||||
| Basic and Diluted | $ | (0.20 | ) | $ | (0.29 | ) | $ | (0.72 | ) | $ | (0.73 | ) | ||||||
| Weighted-average number of shares used in per share calculations: | ||||||||||||||||||
| Basic and Diluted | 54,437 | 50,154 | 54,070 | 49,805 | ||||||||||||||
| RECONCILIATION OF NON-GAAP NET LOSS | ||||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| GAAP net loss | $ | (10,714 | ) | $ | (14,478 | ) | $ | (38,894 | ) | $ | (36,149 | ) | ||||
| Stock-based compensation | 2,958 | 2,968 | 9,125 | 9,489 | ||||||||||||
| Restructuring charges, net | 143 | 2,481 | 4,215 | 2,584 | ||||||||||||
| Acquisition and integration related expenses | 106 | 1,175 | 1,300 | 1,175 | ||||||||||||
| Amortization of intangibles, inventory and fixed assets fair value adjustment due to acquisition | 3,955 | -- | 12,947 | -- | ||||||||||||
| Impairment of long-lived assets and loss on sale of subsidiary | 15 | 143 | 494 | 372 | ||||||||||||
| Income tax valuation allowance | -- | -- | 150 | -- | ||||||||||||
| Non-GAAP net loss | $ | (3,537 | ) | $ | (7,711 | ) | $ | (10,663 | ) | $ | (22,529 | ) | ||||
| Non-GAAP net loss per share: | ||||||||||||||||
| Basic and Diluted | $ | (0.06 | ) | $ | (0.15 | ) | $ | (0.20 | ) | $ | (0.45 | ) | ||||
| Weighted-average number of shares used in per share calculations: | ||||||||||||||||
| Basic and Diluted | 54,437 | 50,154 | 54,070 | 49,805 | ||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
| (In thousands) | ||||||||||
| (Unaudited) | ||||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 59,470 | $ | 72,243 | ||||||
| Marketable securities | 96,868 | 93,545 | ||||||||
| Accounts receivable, net | 46,320 | 28,919 | ||||||||
| Inventories, net | 22,369 | 23,616 | ||||||||
| Deferred tax assets | 4,206 | 4,613 | ||||||||
| Refundable income taxes | 1,568 | 5,667 | ||||||||
| Prepaid expenses and other current assets | 7,844 | 10,569 | ||||||||
| Total current assets | 238,645 | 239,172 | ||||||||
| Restricted cash | 436 | 318 | ||||||||
| Property, plant and equipment, net | 36,945 | 45,515 | ||||||||
| Goodwill | 30,731 | 30,994 | ||||||||
| Intangibles, net | 61,495 | 74,276 | ||||||||
| Deferred tax assets | 4,460 | 4,207 | ||||||||
| Other assets | 1,004 | 1,200 | ||||||||
| Total assets | $ | 373,716 | $ | 395,682 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 28,676 | $ | 21,015 | ||||||
| Accrued liabilities | 15,313 | 17,270 | ||||||||
| Capital leases, current portion | 400 | 573 | ||||||||
| Income taxes payable | 1,344 | -- | ||||||||
| Deferred revenue | 6,937 | 6,189 | ||||||||
| Total current liabilities | 52,670 | 45,047 | ||||||||
| Long-term income taxes payable | 2,453 | 3,028 | ||||||||
| Capital leases, net of current portion | -- | 340 | ||||||||
| Deferred rent and other liabilities | 7,910 | 8,009 | ||||||||
| Total liabilities | 63,033 | 56,424 | ||||||||
| Stockholders' equity: | ||||||||||
| Common stock and capital in excess of par value | 692,940 | 681,211 | ||||||||
| Accumulated other comprehensive income | 305 | 1,715 | ||||||||
| Accumulated deficit | (382,562 | ) | (343,668 | ) | ||||||
| Total stockholders' equity | 310,683 | 339,258 | ||||||||
| Total liabilities and stockholders' equity | $ | 373,716 | $ | 395,682 | ||||||
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