Press Release

LIVERMORE, CA -- (Marketwired) -- 04/30/14 -- FormFactor, Inc. (NASDAQ: FORM) today announced its financial results for the first quarter of fiscal 2014 that ended on March 29, 2014. Quarterly revenues were $56.0 million, up 15% from $48.5 million in the fourth quarter of fiscal 2013, and up 6% from $52.6 million in the first quarter of fiscal 2013.

On a GAAP basis, net loss for the first quarter of fiscal 2014 was $(12.7) million, or $(0.23) per fully-diluted share, compared to a net loss for the fourth quarter of fiscal 2013 of $(18.8) million, or $(0.34) per fully-diluted share, and a net loss for the first quarter of fiscal 2013 of $(19.8) million, or $(0.37) per fully-diluted share.

On a non-GAAP basis, net loss for the first quarter of fiscal 2014 was $(2.3) million, or $(0.04) per fully-diluted share, compared to a net loss for the fourth quarter of fiscal 2013 of $(10.9) million, or $(0.20) per fully-diluted share, and a net loss for the first quarter of fiscal 2013 of $(6.9) million, or $(0.13) per fully-diluted share. A reconciliation of GAAP to non-GAAP net loss and net loss per share is provided in the schedules included below.

Cash usage for the first quarter of fiscal 2014 was $(7.1) million, compared to cash usage of $(5.2) million for the fourth quarter of fiscal 2013 and cash usage of $(12.1) million for the first quarter of fiscal 2013.

"We saw strong momentum in our SoC business during Q1 with increasing customer interest in our product solutions, including copper pillar test solutions," said Tom St. Dennis, CEO of FormFactor, Inc. "We also made significant progress on our recovery from the customer-specific DRAM issues we experienced in 2013. This progress enabled us to both re-engage with the customer and introduce new efficiencies into our operational processes."

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 webcast of FormFactor's conference call on the Investors section of the company's web site 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 May 3, 2014, 9:00 p.m. PDT, and can be accessed by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) and entering confirmation code 28662597. Additionally, the replay will be available on the Investors section of our website, www.formfactor.com.

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. FormFactor's management evaluates results and makes operating decisions using both GAAP and non-GAAP measures included in this press release. Non-GAAP results are not prepared in accordance with GAAP, and non-GAAP information should be considered a supplement to, and not a substitute for, financial statements prepared in accordance with GAAP. Investors and potential investors are encouraged to review the reconciliation of non-GAAP financial measures to their most directly comparable GAAP measures attached to this press release.

About FormFactor:

FormFactor, Inc. (NASDAQ: FORM) is a leader in advanced wafer test solutions. The company's advanced wafer probe cards enable semiconductor manufacturers to lower their overall production costs, improve yields and bring next-generation devices to market. FormFactor's acquisition of MicroProbe created one of the leading wafer test solution providers for both memory and non-memory semiconductor manufacturers. 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, MicroProbe, and the FormFactor and MicroProbe logos are registered or unregistered 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 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 demand for the company's products; seasonal industry trends; risks of the company's ability to realize further operational efficiencies and recover fully from supplier and manufacturing challenges experienced in 2013; the company's ability to maintain or increase its SoC business and to realize sustainable profitability in 2014; 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 December 28, 2013, as filed with the SEC, and subsequent SEC filings, including the company's Quarterly Reports on Forms 10-Q. 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
				March 29, 2014				March 30, 2013
Revenues				$	55,959			$	52,620
Cost of revenues					43,634				43,545
Gross profit					12,325				9,075
Operating expenses:
	Research and development				9,747				10,929
	Selling, general and administrative				12,254				14,618
	Restructuring charges, net				1,997				3,980
	Impairment of long-lived assets				743				58
		Total operating expenses			24,741				29,585
Operating loss					(12,416	)			(20,510	)
Interest income, net					79				107
Other income (expense), net					(66	)			423
Loss before income taxes					(12,403	)			(19,980	)
Provision (benefit) for income taxes					308				(207	)
Net loss				$	(12,711	)		$	(19,773	)
Net loss per share:
	Basic and Diluted			$	(0.23	)		$	(0.37	)
Weighted-average number of shares used in per share calculations:
	Basic and diluted				55,050				53,664

FORMFACTOR, INC.
RECONCILIATION OF NON-GAAP NET LOSS
(In thousands, except per share amounts)
(Unaudited)
		Three Months Ended
		March 29, 2014				March 30, 2013
GAAP net loss		$	(12,711	)		$	(19,773	)
Stock-based compensation			2,570				3,035
Restructuring charges, net			1,997				3,980
Acquisition and integration related expenses			41				912
Amortization of intangibles, inventory and fixed assets fair value adjustment due to acquisition			4,949				4,786
Impairment of long-lived assets			743				58
Loss contingency			133				--
Income tax valuation allowance			--				150
Non-GAAP net loss		$	(2,278	)		$	(6,852	)
Non-GAAP net loss per share:
Basic and Diluted		$	(0.04	)		$	(0.13	)
Weighted-average number of shares used in per share calculations:
Basic and Diluted			55,050				53,664

FORMFACTOR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
				March 29, 2014				December 28, 2013
ASSETS
Current assets:
	Cash and cash equivalents			$	49,199			$	59,196
	Marketable securities				94,798				91,895
	Accounts receivable, net				37,057				30,189
	Inventories, net				21,319				20,707
	Deferred tax assets				2,777				2,776
	Refundable income taxes				782				782
	Prepaid expenses and other current assets				7,372				6,106
		Total current assets			213,304				211,651
Restricted cash					435				435
Property, plant and equipment, net					30,049				35,190
Goodwill					30,731				30,731
Intangibles, net					52,398				57,470
Deferred tax assets					3,988				3,960
Other assets					1,273				1,271
		Total assets		$	332,178			$	340,708
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
	Accounts payable			$	15,921			$	16,313
	Accrued liabilities				13,814				13,985
	Capital leases, current portion				140				270
	Income taxes payable				532				172
	Deferred revenue				7,392				7,030
		Total current liabilities			37,799				37,770
Long-term income taxes payable					2,473				2,497
Deferred rent and other liabilities					6,393				6,355
		Total liabilities			46,665				46,622
Commitments and contingencies
Stockholders' equity:
	Common stock and capital in excess of par value				699,681				695,686
	Accumulated other comprehensive loss				(106	)			(249	)
	Accumulated deficit				(414,062	)			(401,351	)
		Total stockholders' equity			285,513				294,086
		Total liabilities and stockholders' equity		$	332,178			$	340,708

Source: FormFactor

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