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): October 12, 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 October 27, 2011, FormFactor, Inc. (“FormFactor”) issued a press release announcing its financial results for the third quarter ended September 24, 2011.  A copy of the press release is furnished as Exhibit 99.01 to this report and is incorporated herein by reference.

 

Item 8.01.  Other Events.

 

On October 20, 2010, the board of directors approved a program to repurchase up to $50 million of shares of the Company’s outstanding common stock during the period terminating October 19, 2011.  On October 12, 2011, the board resolved to extend the plan for an additional year, terminating October 19, 2012.

 

Item 9.01.  Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit

 

 

Number

 

Description

99.01

 

Press release dated October 27, 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:

October 27, 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 October 27, 2011.

 

4


Exhibit 99.01

 

 

News Release

 

Investor Contact:

Stan Finkelstein

Investor Relations

(925) 290-4321

ir@formfactor.com

 

FormFactor, Inc. Reports Third Quarter Results

 

LIVERMORE, Calif. — October 27, 2011 — FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the third quarter of fiscal 2011 that ended on September 24, 2011. Quarterly revenues were $52.1 million, up 12% from $46.6 million in the second quarter of fiscal 2011, and up 10% from $47.3 million in the third quarter of fiscal 2010.

 

On a GAAP basis, net loss for the third quarter of fiscal 2011 was $9.9 million or $(0.20) per fully-diluted share, compared to a net loss for the second quarter of fiscal 2011 of $7.7 million or $(0.15) per fully-diluted share, and a net loss for the third quarter of fiscal 2010 of $95.8 million or $(1.90) per fully-diluted share.

 

On a Non-GAAP basis, net loss for the third quarter of fiscal 2011 was $6.2 million or $(0.12) per fully-diluted share, compared to a net loss for the second quarter of fiscal 2011 of $8.9 million or $(0.17) per fully-diluted share, and a net loss for the third quarter of fiscal 2010 of $27.7 million or $(0.55) per fully-diluted share.

 

Cash usage excluding stock repurchases for the third quarter was $3.1 million, compared to cash usage of $8.0 million for the second quarter of fiscal 2011 and cash usage of $26.2 million for the third quarter of fiscal 2010.

 

“We continued to make progress on our turnaround plan in Q3 despite a challenging DRAM environment,” said Tom St. Dennis, CEO of FormFactor. “We maintained our revenue growth while staying focused on reducing our cash consumption.”

 

The company extended its share repurchase program for another twelve months. Through Q3 of fiscal 2011, the company has purchased 1,145,283 shares at a total cost of $9.5 million. Under the current repurchase program, the company is authorized to purchase an additional $40.5 million of shares.

 

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 website 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 October 29, 2011, 9:00 p.m. Pacific Daylight Time, and can be accessed by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) and entering confirmation code 13947545. 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:

 

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, Flash memory and system on chip, or SoC, devices and certain other semiconductor devices; 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 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 reports on Form 10-Q for the first and second quarters 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

 

Nine Months Ended

 

 

 

September 24,

 

September 25,

 

September 24,

 

September 25,

 

 

 

2011

 

2010

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

52,115

 

$

47,347

 

$

139,101

 

$

144,653

 

Cost of revenues

 

40,141

 

54,541

 

113,168

 

150,244

 

Gross profit

 

11,974

 

(7,194

)

25,933

 

(5,591

)

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Research and development

 

10,423

 

12,825

 

32,861

 

43,913

 

Selling, general and administrative

 

11,200

 

16,219

 

34,741

 

52,810

 

Restructuring charges, net

 

258

 

8,539

 

197

 

14,603

 

Impairment of long-lived assets

 

100

 

55,402

 

451

 

56,401

 

Total operating expenses

 

21,981

 

92,985

 

68,250

 

167,727

 

Operating loss

 

(10,007

)

(100,179

)

(42,317

)

(173,318

)

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

335

 

623

 

1,128

 

2,120

 

Other income (expense), net

 

(75

)

3,960

 

135

 

3,995

 

Loss before income taxes

 

(9,747

)

(95,596

)

(41,054

)

(167,203

)

Provision for (benefit from) income taxes

 

157

 

231

 

(2,048

)

672

 

Net loss

 

$

(9,904

)

$

(95,827

)

$

(39,006

)

$

(167,875

)

Net loss per share:

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

$

(0.20

)

$

(1.90

)

$

(0.77

)

$

(3.35

)

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

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

50,747

 

50,431

 

50,719

 

50,136

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Net Loss:

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 24,

 

September 25,

 

September 24,

 

September 25,

 

 

 

2011

 

2010

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

 

GAAP Net loss

 

$

(9,904

)

$

(95,827

)

$

(39,006

)

$

(167,875

)

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

 

3,339

 

4,219

 

9,661

 

13,371

 

Restructuring charges, net of related income-tax impact *

 

258

 

8,539

 

197

 

14,603

 

Income tax valuation allowance release

 

 

 

(2,450

)

 

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

 

100

 

55,402

 

451

 

56,401

 

Non-GAAP net loss

 

$

(6,207

)

$

(27,667

)

$

(31,147

)

$

(83,500

)

Non-GAAP net loss per share:

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

$

(0.12

)

$

(0.55

)

$

(0.61

)

$

(1.67

)

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

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

50,747

 

50,431

 

50,719

 

50,136

 

 


*  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)

 

 

 

September 24,

 

December 25,

 

 

 

2011

 

2010

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

140,933

 

$

121,207

 

Marketable securities

 

175,099

 

226,028

 

Restricted cash

 

 

383

 

Accounts receivable, net

 

29,142

 

28,598

 

Inventories

 

20,647

 

25,003

 

Deferred tax assets

 

304

 

329

 

Prepaid expenses and other current assets

 

11,250

 

14,743

 

Total current assets

 

377,375

 

416,291

 

Restricted cash

 

297

 

297

 

Property and equipment, net

 

34,872

 

37,311

 

Deferred tax assets

 

7,417

 

5,445

 

Other assets

 

3,987

 

6,710

 

Total assets

 

$

423,948

 

$

466,054

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

18,120

 

$

14,948

 

Accrued liabilities

 

14,170

 

24,045

 

Income taxes payable

 

 

1,894

 

Deferred revenue

 

5,960

 

4,637

 

Total current liabilities

 

38,250

 

45,524

 

Long-term income taxes payable

 

4,155

 

4,248

 

Deferred rent and other liabilities

 

4,205

 

5,081

 

Total liabilities

 

46,610

 

54,853

 

Stockholders’ equity:

 

 

 

 

 

Common stock and capital in excess of par value

 

655,501

 

651,315

 

Accumulated other comprehensive income

 

2,983

 

2,027

 

Accumulated deficit

 

(281,146

)

(242,141

)

Total stockholders’ equity

 

377,338

 

411,201

 

Total liabilities and stockholders’ equity

 

$

423,948

 

$

466,054