FormFactor, Inc. Announces Second Quarter 2008 Financial Results
LIVERMORE, CA, Jul 30, 2008 (MARKET WIRE via COMTEX News Network) -- FormFactor, Inc. (NASDAQ: FORM) today announced its financial results for the second quarter of fiscal 2008, ended June 28, 2008. Quarterly revenues were $52.0 million, down 20.8% from $65.7 million in the first quarter of fiscal 2008, and down 54.4% from $114.1 million in the second quarter of fiscal 2007.
Net loss for the second quarter of fiscal 2008 was $18.7 million or ($0.38) per fully diluted share, which included $4.5 million or $0.09 per share of stock-based compensation, net of tax. This compares to net loss for the first quarter of fiscal 2008 of $18.0 million or ($0.37) per fully diluted share, including $4.5 million or $0.09 per share of stock-based compensation, net of tax. Net income for the second quarter of fiscal 2007 was $21.1 million or $0.43 per fully diluted share, which included $4.4 million or $0.09 per share of stock-based compensation, net of tax. Second quarter of fiscal 2008 results also include approximately $2.1 million in restructuring costs or $0.04 per fully diluted share, net of tax.
"The second quarter continued to present a challenging business environment for FormFactor and we focused on realigning our business to be better positioned for profitable growth," stated Mario Ruscev, chief executive officer of FormFactor. "We continue to make significant investments in research and development to enhance the differentiation of our existing products. We are also aggressively investing in next generation technologies positioning FormFactor for strong growth into the future."
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 August 1, 2008 at 6:30 p.m. PDT and can be accessed by dialing 888-203-1112 (domestic) or 719-457-0820 (international) and entering confirmation code 4506290.
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: the company's ability to realign its business to be better positioned for profitable growth; the success of the company's efforts to enhance the differentiation of its existing products, including to improve product performance and delivery; the ability of the company to continue to invest in innovation to drive and realize future growth; and the timing of any recovery of the company's business. 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-Q for the fiscal quarter ended March 29, 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.
FORM-F
FORMFACTOR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
-------------------- --------------------
June 28, June 30, June 28, June 30,
2008 2007 2008 2007
--------- --------- --------- ---------
Revenues $ 52,013 $ 114,124 $ 117,716 $ 216,395
Cost of revenues 40,912 49,966 94,043 97,954
--------- --------- --------- ---------
Gross margin 11,101 64,158 23,673 118,441
--------- --------- --------- ---------
Operating expenses:
Research and development 15,821 14,384 32,209 28,485
Selling, general and
administrative 22,705 23,056 45,363 45,984
Restructuring charge 3,223 - 8,543 -
--------- --------- --------- ---------
Total operating expenses 41,749 37,440 86,115 74,469
--------- --------- --------- ---------
Operating income (loss) (30,648) 26,718 (62,442) 43,972
Interest income (expense) 3,128 5,557 8,003 11,001
Other income (expense) (652) (61) 141 (181)
--------- --------- --------- ---------
2,476 5,496 8,144 10,820
Income (loss) before income
taxes (28,172) 32,214 (54,298) 54,792
Provision (benefit) for income
taxes (9,513) 11,109 (17,678) 18,476
--------- --------- --------- ---------
Net income (loss) $ (18,659) $ 21,105 $ (36,620) $ 36,316
========= ========= ========= =========
Net income (loss) per share:
Basic $ (0.38) $ 0.44 $ (0.75) $ 0.76
========= ========= ========= =========
Diluted $ (0.38) $ 0.43 $ (0.75) $ 0.74
========= ========= ========= =========
Weighted-average number of shares
used in per share calculations:
Basic 48,835 47,893 48,789 47,639
========= ========= ========= =========
Diluted 48,835 49,516 48,789 49,289
========= ========= ========= =========
FORMFACTOR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)
June 28, December 29,
2008 2007
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 427,176 $ 315,232
Marketable securities 115,559 254,814
Accounts receivable, net 45,555 69,486
Inventories 24,718 29,309
Deferred tax assets 18,492 17,995
Refundable income taxes 18,231 2,043
Prepaid expenses and other current assets 12,841 13,461
------------ ------------
Total current assets 662,572 702,340
Restricted cash 2,250 2,250
Property and equipment, net 126,205 130,882
Deferred tax assets 13,575 10,038
Other assets 9,587 9,812
------------ ------------
Total assets $ 814,189 $ 855,322
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 30,626 $ 42,893
Accrued liabilities 20,115 30,029
Income tax payable 225 1,328
Deferred revenue and customer advances 7,807 5,535
Deferred rent 458 462
------------ ------------
Total current liabilities 59,231 80,247
Long term tax payable 13,089 12,248
Deferred rent and other liabilities 5,800 5,877
------------ ------------
Total liabilities 78,120 98,372
------------ ------------
Stockholders' equity
Common stock, $0.001 par value 49 49
Additional paid-in capital 589,901 573,553
Accumulated other comprehensive income 320 929
Retained earnings 145,799 182,419
------------ ------------
Total stockholders' equity 736,069 756,950
------------ ------------
Total liabilities and stockholders' equity $ 814,189 $ 855,322
============ ============
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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