UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

 


 

FORM 8-K

 

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

 

Date of report (Date of earliest event reported): July 26, 2011

 

FORMFACTOR, INC.

(Exact Name of Registrant as Specified in Charter)

 

Delaware

000-50307

13-3711155

(State or Other Jurisdiction of Incorporation)

(Commission File Number)

(IRS Employer Identification No.)

 

7005 Southfront Road
Livermore, CA

 

94551

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: (925) 290-4000

 

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. below):

 

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 July 26, 2011, FormFactor, Inc. (“FormFactor”) issued a press release announcing its financial results for the second quarter ended June 25, 2011.  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.

 

(d) Exhibits.

 

Exhibit

 

 

Number

 

Description

99.01

 

Press release dated July 26, 2011.

 

The information in this 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.

 

2



 

SIGNATURES

 

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.

 

 

 

 

 

FORMFACTOR, INC.

 

 

 

 

 

 

 

 

Date:

July 26, 2011

 

By:

/s/ Stuart L. Merkadeau

 

 

 

 

Name:

Stuart L. Merkadeau

 

 

 

 

Title:

Senior Vice President,
General Counsel and Secretary

 

3



 

EXHIBIT INDEX

 

Exhibit

 

 

Number

 

Description

99.01

 

Press release dated July 26, 2011.

 

4


Exhibit 99.01

 

 

News Release

 

Investor Contact:

Stan Finkelstein

Investor Relations

(925) 290-4321

ir@formfactor.com

 

FormFactor, Inc. Reports Second Quarter Results

 

LIVERMORE, Calif. — July 26, 2011 — FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the second quarter of fiscal 2011 that ended on June 25, 2011. Quarterly revenues were $46.6 million, up 15% from $40.4 million in the first quarter of fiscal 2011, and down 19% from $57.6 million in the second quarter of fiscal 2010.

 

On a GAAP basis, net loss for the second quarter of fiscal 2011 was $6.7 million or $(0.13) per fully-diluted share, compared to a net loss for the first quarter of fiscal 2011 of $21.4 million or $(0.42) per fully-diluted share, and a net loss for the second quarter of fiscal 2010 of $33.9 million or $(0.68) per fully-diluted share. The results for the second quarter of fiscal 2011 include an income tax valuation allowance release of $2.5 million or $0.05 per fully diluted share.  The company also recorded a restructuring benefit of $1.1 million, or $0.02 per fully diluted share, in the second quarter of 2011 related primarily to the termination of a lease obligation for our manufacturing facility in Singapore.

 

On a Non-GAAP basis, net loss for the second quarter of fiscal 2011 was $7.9 million or $(0.16) per fully-diluted share, compared to a net loss for the first quarter of fiscal 2011 of $16.1 million or $(0.32) per fully-diluted share, and a net loss for the second quarter of fiscal 2010 of $26.5 million or $(0.53) per fully-diluted share.

 

“As we moved through Q2, we continued our focus on operational execution and made good progress on our turnaround plan as we increased gross margins and reduced our cash consumption,” said Tom St. Dennis, CEO of FormFactor. “We made improvements across our product offerings, and gained business momentum in our DRAM segment as we started ramping our SmartMatrix™ platform at major DRAM customers and implementing our proprietary ATRE™ wafer test technology.”

 

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 July 29, 2011 at 9:00 p.m. PDT, and can be accessed by dialing (800) 642-1687 (domestic) or (706) 645-9291 (international) and entering confirmation code 78860037.

 



 

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:

Founded in 1993, FormFactor, Inc. (Nasdaq: FORM) is a 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 anticipated results, market conditions, 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: changes in the market environment, including the demand for DRAM and Flash memory devices and certain other semiconductor devices, the company’s ability to complete qualification of its Matrix platform products for both DRAM and Flash memory applications at major memory customers; the rate at which semiconductor manufacturers adopt the company’s Matrix platform products, including its SmartMatrix product for DRAM devices,  and its ATRE wafer test technology, and request repeat orders; and the company’s ability to bring its manufacturing structure and operating expenses in line with revenues. 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 25, 2010, as filed with the SEC, and subsequent SEC filings including the company’s quarterly report on Form 10-Q for its first quarter of its fiscal 2011. 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 25,
2011

 

June 26,
2010

 

June 25,
2011

 

June 26,
2010

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

46,558

 

$

57,640

 

$

86,987

 

$

97,306

 

Cost of revenues

 

36,668

 

53,710

 

73,027

 

95,704

 

Gross profit (loss)

 

9,890

 

3,930

 

13,960

 

1,602

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Research and development

 

10,878

 

15,997

 

22,438

 

31,088

 

Selling, general and administrative

 

10,192

 

18,725

 

22,579

 

36,592

 

Restructuring charges

 

(1,099

)

2,513

 

(60

)

6,063

 

Impairment of long-lived assets

 

 

999

 

351

 

999

 

Total operating expenses

 

19,971

 

38,234

 

45,308

 

74,742

 

Operating loss

 

(10,081

)

(34,304

)

(31,348

)

(73,140

)

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

369

 

722

 

793

 

1,497

 

Other income (expense), net

 

584

 

(82

)

210

 

35

 

Loss before income taxes

 

(9,128

)

(33,664

)

(30,345

)

(71,608

)

Provision for (benefit from) income taxes

 

(2,412

)

200

 

(2,205

)

440

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(6,716

)

$

(33,864

)

$

(28,140

)

$

(72,048

)

 

 

 

 

 

 

 

 

 

 

Net loss per share:

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

$

(0.13

)

$

(0.68

)

$

(0.55

)

$

(1.44

)

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

50,733

 

50,084

 

50,705

 

49,989

 

 

Reconciliation of Non-GAAP Net loss:

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 25,
2011

 

June 26,
2010

 

June 25,
2011

 

June 26,
2010

 

 

 

 

 

 

 

 

 

 

 

GAAP Net loss

 

$

(6,716

)

$

(33,864

)

$

(28,140

)

$

(72,048

)

Stock-based compensation, net of related income-tax impact *

 

2,353

 

3,894

 

6,322

 

9,152

 

Restructuring charges, net of related income-tax impact *

 

(1,099

)

2,513

 

(60

)

6,063

 

Income tax valuation allowance release

 

(2,450

)

 

(2,450

)

 

Impairment of long-lived assets, net of related income-tax impact *

 

 

999

 

351

 

999

 

Non-GAAP Net loss

 

$

(7,912

)

$

(26,458

)

$

(23,977

)

$

(55,834

)

 

 

 

 

 

 

 

 

 

 

Non-GAAP Net loss per share:

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

$

(0.16

)

$

(0.53

)

$

(0.47

)

$

(1.12

)

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

50,733

 

50,084

 

50,705

 

49,989

 

 


*  There was no related income tax impact to stock-based compensation, restructuring and impairment charges in fiscal 2011 and fiscal 2010 as a result of the valuation allowance recorded after the second quarter of fiscal 2009.

 



 

FORMFACTOR, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

 

 

June 25,

 

December 25,

 

 

 

2011

 

2010

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

130,085

 

$

121,207

 

Marketable securities

 

194,142

 

226,028

 

Restricted cash

 

383

 

383

 

Accounts receivable, net

 

28,017

 

28,598

 

Inventories

 

21,799

 

25,003

 

Deferred tax assets, net

 

297

 

329

 

Prepaid expenses and other current assets

 

9,022

 

14,743

 

Total current assets

 

383,745

 

416,291

 

Restricted cash

 

297

 

297

 

Property and equipment, net

 

35,078

 

37,311

 

Deferred tax assets, net

 

7,364

 

5,445

 

Other assets

 

5,110

 

6,710

 

Total assets

 

$

431,594

 

$

466,054

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

16,023

 

$

14,948

 

Accrued liabilities

 

14,214

 

24,045

 

Income taxes payable

 

382

 

1,894

 

Deferred revenue

 

4,409

 

4,637

 

Total current liabilities

 

35,028

 

45,524

 

Long-term income taxes payable

 

4,209

 

4,248

 

Deferred rent and other liabilities

 

4,101

 

5,081

 

Total liabilities

 

43,338

 

54,853

 

Stockholders’ equity:

 

 

 

 

 

Common stock and capital in excess of par value

 

655,726

 

651,315

 

Accumulated other comprehensive income

 

2,811

 

2,027

 

Retained earnings (accumulated deficit)

 

(270,281

)

(242,141

)

Total stockholders’ equity

 

388,256

 

411,201

 

Total liabilities and stockholders’ equity

 

$

431,594

 

$

466,054