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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 20, 2005

FORMFACTOR, INC.


(Exact name of Registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation)
     
000-50307   13-3711155
     
(Commission
File Number)
  (IRS Employer Identification No.)
     
7005 Southfront Road, Livermore, CA   94551
     
(Address of principal executive offices)   (Zip Code)

(925) 290-4000


(Registrant’s telephone number, including area code)

Not Applicable


(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (See General Instruction A.2.):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
 

 


TABLE OF CONTENTS

Item 2.02. Results of Operations and Financial Condition.
Item 9.01. Financial Statements and Exhibits.
SIGNATURE
EXHIBIT INDEX
EXHIBIT 99.01


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Item 2.02. Results of Operations and Financial Condition.

     On July 20, 2005, FormFactor, Inc. issued a press release announcing its financial results for the quarter ended June 25, 2005. A copy of the press release is furnished as Exhibit 99.01 to this report and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

         
Exhibit    
Number   Exhibit Title or Description
  99.01    
Press release dated July 20, 2005.

     The information in this current report and the accompanying exhibit shall not be incorporated by reference into any filing of FormFactor with the Securities and Exchange Commission, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing. The information in this report, including the accompanying exhibit, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.

 


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SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

         
Date: July 20, 2005   FORMFACTOR, INC.
 
 
  By:   /s/ Ronald C. Foster    
    Ronald C. Foster   
    Chief Financial Officer   
 

 


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EXHIBIT INDEX

         
Exhibit    
Number   Exhibit Title or Description
  99.01    
Press release dated July 20, 2005.

 

exv99w01
 

(FORMFACTOR LOGO)

EXHIBIT 99.01

News Release

     
Contacts:
   
FormFactor, Inc.
  StreetSmart Investor Relations
Ron C. Foster
  Brooke Deterline
Chief Financial Officer
  Annie Leschin
(925) 290-4023
  (925) 456-3911
 
  IR@FormFactor.com

FOR IMMEDIATE RELEASE

FormFactor, Inc. Announces 2005 Second Quarter Financial Results

Record quarterly revenues of $52.3 million, up 21% year over year.

LIVERMORE, CA — July 20, 2005 — FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the second quarter of fiscal year 2005, ended June 25, 2005. Quarterly revenues were a record $52.3 million, up 3% from $51.0 million in the first quarter of fiscal year 2005, and up 21% from $43.2 million for the second quarter of fiscal year 2004.

Operating income for the second quarter of fiscal year 2005 was 12.0% of revenues, compared to 13.1% for the first quarter of fiscal year 2005. Operating income for the first quarter of fiscal year 2005 and for the second quarter of fiscal 2005 was reduced by startup costs related to the transition to our new manufacturing facility of $4.4 million and $4.7 million, or 8.6% and 9.0% of revenues, respectively. Operating income for the second quarter of fiscal year 2004 was 25.3% of revenues as no costs were incurred on the new manufacturing facility.

Net income for the second quarter of fiscal year 2005 was $5.0 million or $0.12 per share on a fully diluted basis, compared to $4.9 million or $0.12 per share on a fully diluted basis for the first quarter of fiscal year 2005, and $6.8 million or $0.17 per share on a fully diluted basis for the second quarter of fiscal year 2004.

Bookings of $58.0 million for the second quarter of fiscal year 2005 also set a company record, with an increase of 14.0% from $50.9 million for the first quarter of fiscal year 2005 and 13.3% from $51.2 million for the second quarter of fiscal year 2004.

Joseph Bronson, President of FormFactor stated, “Demand for our advanced probe card products continued to be strong. We are beginning to ramp capacity in our new facility and are focused on expanding our capacity to meet demand”.

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 Investor section of the Company’s website at www.formfactor.com. A replay of the web cast will be available approximately two hours after the conclusion of the call. 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 July 23, 2005 at 9:00 p.m. PDT and can be accessed by dialing (888) 203-1112 or (719) 457-0820 and entering confirmation code 9424909.

About FormFactor:
FormFactor, Inc. (Nasdaq: FORM) is an industry leader in the design, development, manufacture, sale and support of precision, high-performance advanced semiconductor wafer probe cards. The Company’s products are based on its proprietary technologies, including its MicroSpring interconnect technology and design processes, which enable FormFactor to produce wafer probe cards for test applications that require reliability, speed, precision and signal integrity. FormFactor is headquartered in Livermore, California. For more information, visit the Company’s website at www.formfactor.com.

###

FormFactor and MicroSpring are registered trademarks of FormFactor, Inc. All other product, trademark, company or service names mentioned herein are the property of their respective owners.

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, future growth and the performance of our products. 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 demand for certain semiconductor devices; the rate at which semiconductor manufacturers make the transition to 110 and sub-110 nanometer technology nodes and to 300mm fabrication facilities, and implement tooling cycles; and the Company’s ability to efficiently transition into its new manufacturing facility. 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-Q for the period ended March 26, 2005, filed with the Securities and Exchange Commission (“SEC”), and other SEC filings. Copies of SEC filings made by the Company 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.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

                                 
    Three Months Ended     Six Months Ended  
    June 25, 2005     June 26, 2004     June 25, 2005     June 26, 2004  
(In thousands, except per share data)
                               
Revenues
  $ 52,337     $ 43,154     $ 103,302     $ 80,272  
Cost of revenues
    30,434       20,158       59,125       38,184  
Stock-based compensation
    127       157       271       312  
         
Gross margin
    21,776       22,839       43,906       41,776  
         
Operating expenses:
                               
Research and development
    5,516       4,516       11,184       8,865  
Selling, general and administrative
    9,377       6,862       18,573       12,736  
Stock-based compensation
    625       564       1,235       1,116  
         
Total operating expenses
    15,518       11,942       30,992       22,717  
         
Operating income
    6,258       10,897       12,914       19,059  
Interest income
    980       572       1,796       1,105  
Other income (expense), net
    (112 )     (247 )     (25 )     (642 )
         
 
    868       325       1,771       463  
Income before income taxes
    7,126       11,222       14,685       19,522  
Provision for income taxes
    (2,114 )     (4,466 )     (4,762 )     (7,663 )
         
Net income
  $ 5,012     $ 6,756     $ 9,923     $ 11,859  
         
Net income per share:
                               
Basic
  $ 0.13     $ 0.18     $ 0.25     $ 0.32  
         
Diluted
  $ 0.12     $ 0.17     $ 0.24     $ 0.29  
         
Weighted-average number of shares used in per share calculations:
                               
Basic
    39,274       37,381       39,146       37,308  
         
Diluted
    41,497       40,609       41,355       40,388  
         


 

FORMFACTOR, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
(Unaudited)

                 
    June 25,     December 25,  
    2005     2004  
ASSETS
               
Current assets:
               
Cash and cash equivalents
  $ 18,887     $ 34,836  
Marketable securities
    174,394       156,647  
Accounts receivable, net of allowance for doubtful accounts of $118 in 2005 and $41 in 2004
    33,346       25,054  
Inventories
    12,769       11,232  
Deferred tax assets
    7,587       7,587  
Prepaid expenses and other current assets
    4,371       4,760  
     
Total current assets
    251,354       240,116  
     
Restricted cash
    2,250       2,250  
Property and equipment, net
    67,848       59,356  
Deferred tax assets
    570       570  
Other assets
    645       274  
     
Total assets
  $ 322,667     $ 302,566  
     
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities
               
Accounts payable
  $ 15,543     $ 17,556  
Accrued liabilities
    18,358       14,685  
Deferred revenue and customer advances
    2,924       2,770  
     
Total current liabilities
    36,825       35,011  
Deferred revenue and customer advances
    75       195  
Deferred rent
    2,402       2,185  
     
Total liabilities
    39,302       37,391  
     
Stockholders’ equity
               
Common stock, $0.001 par value
    40       39  
Additional paid in capital
    256,199       249,149  
Deferred stock-based compensation
    (4,520 )     (5,413 )
Accumulated other comprehensive loss
    (407 )     (730 )
Retained earnings
    32,053       22,130  
     
Total stockholders’ equity
    283,365       265,175  
     
Total liabilities and stockholders’ equity
  $ 322,667     $ 302,566