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, 2009

 

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, California

 

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, 2009, FormFactor, Inc. issued a press release announcing its financial results for the third quarter ended September 26, 2009.  A copy of the press release is furnished as Exhibit 99.01 to this report and is incorporated herein by reference.

 

In addition to disclosing financial results calculated in accordance with United States generally accepted accounting principles (“GAAP”), the press release contains non-GAAP financial measures.  Specifically, the press release includes non-GAAP net loss and non-GAAP net loss per share.  The company excluded the following items from one or more of its published non-GAAP measures:  deferred tax valuation allowance, stock-based compensation expenses and restructuring charges.  By publishing the non-GAAP measures, the company’s 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 the 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 included in the press release and on the Investors section of the company’s website.

 

Item 9.01.                              Financial Statements and Exhibits.

 

Exhibit

 

 

Number

 

Exhibit Title or Description

99.01

 

Press Release dated October 28, 2009

 

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, 2009

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, 2009

 

4


EXHIBIT 99.01

 

 

News Release

 

 

 

Investor Contact:

Trade Press Contact:

Michael Magaro

David Viera

Investor Relations

Corporate Communications

(925) 290-4321

(925) 290-4681

ir@formfactor.com

dviera@formfactor.com

 

FormFactor, Inc. Reports Third Quarter Results

 

LIVERMORE, Calif. — October 28, 2009 — FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the third quarter of fiscal 2009, that ended on September 26, 2009. Quarterly revenues were $43.8 million, up 40.4% from $31.2 million in the second quarter of fiscal 2009, and down 16.7% from $52.6 million in the third quarter of fiscal 2008.

 

Net loss for the third quarter of fiscal 2009 was $23.9 million or $(0.48) per share, compared to a net loss for the second quarter of fiscal 2009 of $65.8 million or $(1.33) per share and a net loss for the third quarter of fiscal 2008 of $14.0 million or $(0.29) per share.

 

On a non-GAAP basis, net loss for the third quarter of fiscal 2009 was $20.9 million or $(0.42) per share, compared to a net loss for the second quarter of fiscal 2009 of $16.3 million or $(0.33) per share and a net loss for the third quarter of fiscal 2008 of $10.6 million or $(0.22) per share. A reconciliation of third quarter GAAP to non-GAAP net loss and net loss per share is provided in the schedules included below.

 

“An increase in design activity and volume purchases by memory manufacturers for DDR3 production positively influenced our revenue in Q3,” said Mario Ruscev, CEO of FormFactor.  “Our efforts to manage costs contributed this quarter to better gross margins, as we continue to focus on opportunities to increase efficiency and return toward profitability.”

 

The company has posted its revenue breakdown by region and market segment and GAAP to non-GAAP reconciliation information 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 30th, 2009 at 9:00 p.m. PDT and can be accessed by dialing 888-203-1112 or 719-457-0820 and entering confirmation code 7749295.

 

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 and on the Investors section of the company’s website.

 

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: changes in the market environment, including the demand for certain semiconductor devices, including DRAM and Flash memory devices; the company’s ability to optimize its operating plans and structure with the business environment; and the company’s ability to develop innovative testing technologies and to timely deliver and qualify new products that meet its customer’s testing requirements and lower their overall cost of test.  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 27, 2008 and the company’s Form 10-Q for the fiscal quarter ended June 27, 2009, both as 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.

 

FORM-F

 



 

FORMFACTOR, INC.

 

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

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 26,

 

September 27,

 

September 26,

 

September 27,

 

 

 

2009

 

2008

 

2009

 

2008

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

43,773

 

$

52,584

 

$

102,340

 

$

170,300

 

Cost of revenues

 

36,435

 

40,583

 

100,007

 

134,626

 

Gross profit

 

7,338

 

12,001

 

2,333

 

35,674

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Research and development

 

13,775

 

17,079

 

41,823

 

49,288

 

Selling, general and administrative

 

17,366

 

23,675

 

61,939

 

69,038

 

Restructuring charges

 

 

141

 

7,943

 

8,684

 

Total operating expenses

 

31,141

 

40,895

 

111,705

 

127,010

 

Operating loss

 

(23,803

)

(28,894

)

(109,372

)

(91,336

)

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

694

 

2,805

 

2,571

 

10,808

 

Other income (expense), net

 

(415

)

263

 

(920

)

404

 

Loss before income taxes

 

(23,524

)

(25,826

)

(107,721

)

(80,124

)

Provision for (benefit from) income taxes

 

377

 

(11,785

)

19,969

 

(29,463

)

Net loss

 

$

(23,901

)

$

(14,041

)

$

(127,690

)

$

(50,661

)

Net loss per share:

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

$

(0.48

)

$

(0.29

)

$

(2.59

)

$

(1.04

)

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

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

49,582

 

48,988

 

49,392

 

48,855

 

 

Reconciliation of Non-GAAP Net loss:

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 26,

 

September 27,

 

September 26,

 

September 27,

 

 

 

2009

 

2008

 

2009

 

2008

 

 

 

 

 

 

 

 

 

 

 

GAAP Net loss

 

$

(23,901

)

$

(14,041

)

$

(127,690

)

$

(50,661

)

Deferred tax valuation allowance

 

 

 

44,683

 

 

Stock-based compensation related to option modification, net of related income-tax impact

 

 

 

1,577

 

 

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

 

2,922

 

3,343

 

9,100

 

11,939

 

Restructuring charges, net of related income-tax impact

 

 

87

 

5,018

 

5,361

 

Non-GAAP Net loss

 

$

(20,979

)

$

(10,611

)

$

(67,312

)

$

(33,361

)

Non-GAAP Net loss per share:

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

$

(0.42

)

$

(0.22

)

$

(1.36

)

$

(0.68

)

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

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

49,582

 

48,988

 

49,392

 

48,855

 

 



 

FORMFACTOR, INC.

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

(Unaudited)

 

 

 

September 26,

 

December 27,

 

 

 

2009

 

2008

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

149,920

 

$

337,926

 

Marketable securities

 

312,687

 

184,968

 

Accounts receivable, net

 

48,233

 

34,127

 

Inventories

 

21,166

 

18,788

 

Deferred tax assets

 

3,768

 

23,039

 

Refundable income taxes

 

18,130

 

29,413

 

Prepaid expenses and other current assets

 

11,462

 

14,702

 

Total current assets

 

565,366

 

642,963

 

 

 

 

 

 

 

Restricted cash

 

680

 

680

 

Property and equipment, net

 

96,998

 

113,813

 

Deferred tax assets

 

1,928

 

20,580

 

Other assets

 

3,599

 

7,674

 

Total assets

 

$

668,571

 

$

785,710

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

27,450

 

$

33,214

 

Accrued liabilities

 

16,718

 

25,693

 

Income taxes payable

 

105

 

1,904

 

Deferred revenue

 

10,001

 

4,946

 

Deferred rent

 

458

 

452

 

Total current liabilities

 

54,732

 

66,209

 

Long-term income taxes payable

 

6,334

 

7,732

 

Deferred rent and other liabilities

 

5,416

 

5,705

 

Total liabilities

 

66,482

 

79,646

 

Stockholders’ equity

 

 

 

 

 

Common stock, $0.001 par value

 

50

 

49

 

Additional paid-in capital

 

626,211

 

602,295

 

Accumulated other comprehensive income

 

1,720

 

1,922

 

Accumulated deficit

 

(25,892

)

101,798

 

Total stockholders’ equity

 

602,089

 

706,064

 

Total liabilities and stockholders’ equity

 

$

668,571

 

$

785,710