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):  October 28, 2008

 

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))

 

 

 



 

 

Item 2.02.

 

Results of Operations and Financial Condition.

 

On October 28, 2008, FormFactor, Inc. issued a press release announcing its financial results for the third quarter ended September 27, 2008. 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 October 28, 2008.

 

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 and 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.

 

2



 

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: October 28, 2008

FORMFACTOR, INC.

 

 

 

 

 

By:

  /s/

JEAN B. VERNET

 

 

Jean B. Vernet

 

 

Chief Financial Officer

 

3



 

EXHIBIT INDEX

 

Exhibit

 

 

Number

 

Exhibit Title or Description

99.01

 

Press release dated October 28, 2008.

 


EXHIBIT 99.01

 

 

News Release

 

Contacts:

 

FormFactor, Inc.

Investor Relations

David Viera

Michael Magaro

Corporate Communications

(925) 290-4949

(925) 290-4681

IR@FormFactor.com

dviera@FormFactor.com

 

 

FormFactor, Inc. Announces Third Quarter 2008 Financial Results

 

LIVERMORE, Calif. — October 28, 2008 — FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the third quarter of fiscal 2008, ended September 27, 2008. Quarterly revenues were $52.6 million, up 1.2% from $52.0 million in the second quarter of fiscal 2008, and down 58.0% from $125.3 million in the third quarter of fiscal 2007.

 

Net loss for the third quarter of fiscal 2008 was $14.0 million or ($0.29) per share on a diluted basis, which included $3.3 million or $0.07 per share of stock-based compensation, net of tax and a one-time tax benefit of $2.8 million or $0.06 per share from the settlement of certain tax audits. This compares to a net loss for the second quarter of fiscal 2008 of $18.7 million or ($0.38) per share on a diluted basis, including $4.5 million or $0.09 per share of stock-based compensation, net of tax. Net income for the third quarter of fiscal 2007 was $22.2 million or $0.45 per share on a diluted basis, which included $3.7 million or $0.08 per share of stock-based compensation, net of tax.

 

“Despite continued semiconductor industry weakness, we made progress with our technology and business model,” stated Mario Ruscev, chief executive officer of FormFactor.  “That includes improving product performance and delivery, with continued emphasis on innovation to drive future growth. We are also building an organization with greater regionalization for stronger customer support, and refining our financial model.”

 

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 October 30, 2008 at 10:30 p.m. PDT and can be accessed by dialing 888-203-1112 (domestic) or 719-457-0820 (international) and entering confirmation code 1433310.

 

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: our ability to make progress with our technology and business model, our ability to improve product performance and delivery, our ability to continue to invest in innovation to drive future growth, our ability to build an organization with greater regionalization for stronger customer support and to refine our financial model, the demand for certain semiconductor devices, including DRAM devices, and the timing and extent of a semiconductor industry recovery. 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-Qs for the fiscal quarters ended March 29, 2008 and June 28, 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.

 



 

FORMFACTOR, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 27,

 

September 29,

 

September 27,

 

September 29,

 

 

 

2008

 

2007

 

2008

 

2007

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

52,584

 

$

125,291

 

$

170,300

 

$

341,686

 

Cost of revenues

 

40,583

 

58,609

 

134,626

 

156,563

 

Gross margin

 

12,001

 

66,682

 

35,674

 

185,123

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Research and development

 

17,079

 

16,219

 

49,288

 

44,704

 

Selling, general and administrative

 

23,675

 

23,365

 

69,038

 

69,349

 

Restructuring charge

 

141

 

 

8,684

 

-

 

Total operating expenses

 

40,895

 

39,584

 

127,010

 

114,053

 

Operating (loss) income

 

(28,894

)

27,098

 

(91,336

)

71,070

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

2,805

 

5,766

 

10,808

 

16,767

 

Other income

 

263

 

415

 

404

 

234

 

 

 

3,068

 

6,181

 

11,212

 

17,001

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before income taxes

 

(25,826

)

33,279

 

(80,124

)

88,071

 

(Benefit) provision for income taxes

 

(11,785

)

11,056

 

(29,463

)

29,532

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(14,041

)

$

22,223

 

$

(50,661

)

$

58,539

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.29

)

$

0.46

 

$

(1.04

)

$

1.23

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

$

(0.29

)

$

0.45

 

$

(1.04

)

$

1.19

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of shares used in per share calculations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

48,988

 

48,291

 

48,855

 

47,757

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

48,988

 

49,729

 

48,855

 

49,335

 

 



 

FORMFACTOR, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)

(Unaudited)

 

 

 

September 27,

 

December 29,

 

 

 

2008

 

2007

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

427,614

 

$

315,232

 

Marketable securities

 

107,839

 

254,814

 

Accounts receivable, net

 

40,094

 

69,486

 

Inventories

 

22,205

 

29,309

 

Deferred tax assets

 

18,447

 

17,995

 

Refundable income taxes

 

27,179

 

2,043

 

Prepaid expenses and other current assets

 

13,553

 

13,461

 

Total current assets

 

656,931

 

702,340

 

 

 

 

 

 

 

Restricted cash

 

680

 

2,250

 

Property and equipment, net

 

121,382

 

130,882

 

Deferred tax assets

 

14,927

 

10,038

 

Other assets

 

7,518

 

9,812

 

Total assets

 

$

801,438

 

$

855,322

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

30,043

 

$

42,893

 

Accrued liabilities

 

20,768

 

30,029

 

Income taxes payable

 

1,840

 

1,328

 

Deferred revenue

 

5,437

 

5,535

 

Deferred rent

 

455

 

462

 

Total current liabilities

 

58,543

 

80,247

 

Long term income taxes payable

 

7,414

 

12,248

 

Deferred rent and other liabilities

 

5,955

 

5,877

 

Total liabilities

 

71,912

 

98,372

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

Common stock, $0.001 par value

 

49

 

49

 

Additional paid-in capital

 

597,556

 

573,553

 

Accumulated other comprehensive income

 

163

 

929

 

Retained earnings

 

131,758

 

182,419

 

Total stockholders’ equity

 

729,526

 

756,950

 

Total liabilities and stockholders’ equity

 

$

801,438

 

$

855,322