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 |
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13-3711155 |
(Commission |
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(IRS Employer |
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7005 Southfront Road, Livermore, California |
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94551 |
(Address of principal executive offices) |
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(Zip Code) |
(925) 290-4000
(Registrants 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 companys management intends to provide investors with additional information to further analyze the companys performance, core results and underlying trends. FormFactors 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 companys website.
Item 9.01. Financial Statements and Exhibits.
Exhibit |
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Number |
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Exhibit Title or Description |
99.01 |
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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. |
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By: |
/s/ JEAN B. VERNET |
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Jean B. Vernet |
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Chief Financial Officer |
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EXHIBIT INDEX
Exhibit |
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Number |
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Exhibit Title or Description |
99.01 |
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Press Release dated October 28, 2009 |
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EXHIBIT 99.01
News Release |
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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 |
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 FormFactors conference call on the Investors section of the companys 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 companys 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.
FormFactors 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 companys 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 companys 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 companys 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 companys ability to optimize its operating plans and structure with the business environment; and the companys ability to develop innovative testing technologies and to timely deliver and qualify new products that meet its customers 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 companys 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 companys 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)
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Three Months Ended |
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Nine Months Ended |
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September 26, |
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September 27, |
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September 26, |
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September 27, |
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2009 |
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2008 |
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2009 |
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2008 |
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Revenues |
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$ |
43,773 |
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$ |
52,584 |
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$ |
102,340 |
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$ |
170,300 |
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Cost of revenues |
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36,435 |
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40,583 |
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100,007 |
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134,626 |
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Gross profit |
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7,338 |
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12,001 |
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2,333 |
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35,674 |
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Operating expenses: |
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Research and development |
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13,775 |
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17,079 |
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41,823 |
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49,288 |
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Selling, general and administrative |
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17,366 |
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23,675 |
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61,939 |
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69,038 |
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Restructuring charges |
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141 |
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7,943 |
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8,684 |
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Total operating expenses |
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31,141 |
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40,895 |
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111,705 |
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127,010 |
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Operating loss |
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(23,803 |
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(28,894 |
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(109,372 |
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(91,336 |
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Interest income, net |
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694 |
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2,805 |
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2,571 |
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10,808 |
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Other income (expense), net |
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(415 |
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263 |
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(920 |
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404 |
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Loss before income taxes |
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(23,524 |
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(25,826 |
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(107,721 |
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(80,124 |
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Provision for (benefit from) income taxes |
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377 |
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(11,785 |
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19,969 |
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(29,463 |
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Net loss |
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$ |
(23,901 |
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$ |
(14,041 |
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$ |
(127,690 |
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$ |
(50,661 |
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Net loss per share: |
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Basic and Diluted |
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$ |
(0.48 |
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$ |
(0.29 |
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$ |
(2.59 |
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$ |
(1.04 |
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Weighted-average number of shares used in per share calculations: |
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Basic and Diluted |
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49,582 |
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48,988 |
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49,392 |
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48,855 |
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Reconciliation of Non-GAAP Net loss:
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Three Months Ended |
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Nine Months Ended |
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September 26, |
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September 27, |
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September 26, |
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September 27, |
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2009 |
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2008 |
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2009 |
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2008 |
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GAAP Net loss |
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$ |
(23,901 |
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$ |
(14,041 |
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$ |
(127,690 |
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$ |
(50,661 |
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Deferred tax valuation allowance |
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44,683 |
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Stock-based compensation related to option modification, net of related income-tax impact |
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1,577 |
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Stock-based compensation, net of related income-tax impact |
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2,922 |
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3,343 |
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9,100 |
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11,939 |
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Restructuring charges, net of related income-tax impact |
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87 |
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5,018 |
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5,361 |
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Non-GAAP Net loss |
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$ |
(20,979 |
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$ |
(10,611 |
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$ |
(67,312 |
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$ |
(33,361 |
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Non-GAAP Net loss per share: |
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Basic and Diluted |
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$ |
(0.42 |
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$ |
(0.22 |
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$ |
(1.36 |
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$ |
(0.68 |
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Weighted-average number of shares used in per share calculations: |
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Basic and Diluted |
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49,582 |
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48,988 |
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49,392 |
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48,855 |
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FORMFACTOR, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
(Unaudited)
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September 26, |
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December 27, |
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2009 |
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2008 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
149,920 |
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$ |
337,926 |
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Marketable securities |
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312,687 |
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184,968 |
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Accounts receivable, net |
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48,233 |
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34,127 |
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Inventories |
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21,166 |
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18,788 |
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Deferred tax assets |
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3,768 |
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23,039 |
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Refundable income taxes |
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18,130 |
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29,413 |
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Prepaid expenses and other current assets |
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11,462 |
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14,702 |
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Total current assets |
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565,366 |
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642,963 |
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Restricted cash |
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680 |
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680 |
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Property and equipment, net |
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96,998 |
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113,813 |
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Deferred tax assets |
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1,928 |
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20,580 |
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Other assets |
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3,599 |
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7,674 |
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Total assets |
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$ |
668,571 |
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$ |
785,710 |
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LIABILITIES AND STOCKHOLDERS EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
27,450 |
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$ |
33,214 |
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Accrued liabilities |
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16,718 |
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25,693 |
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Income taxes payable |
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105 |
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1,904 |
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Deferred revenue |
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10,001 |
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4,946 |
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Deferred rent |
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458 |
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452 |
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Total current liabilities |
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54,732 |
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66,209 |
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Long-term income taxes payable |
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6,334 |
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7,732 |
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Deferred rent and other liabilities |
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5,416 |
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5,705 |
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Total liabilities |
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66,482 |
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79,646 |
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Stockholders equity |
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Common stock, $0.001 par value |
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50 |
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49 |
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Additional paid-in capital |
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626,211 |
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602,295 |
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Accumulated other comprehensive income |
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1,720 |
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1,922 |
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Accumulated deficit |
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(25,892 |
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101,798 |
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Total stockholders equity |
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602,089 |
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706,064 |
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Total liabilities and stockholders equity |
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$ |
668,571 |
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$ |
785,710 |
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