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):  November 1, 2012

 

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 November 1, 2012, FormFactor, Inc. (“FormFactor”) issued a press release announcing its financial results for the third quarter of fiscal 2012 that ended on September 29, 2012.  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 November 1, 2012.

 

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:

November 1, 2012

 

 

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 November 1, 2012.

 

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. — November 1, 2012 — FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the third quarter of fiscal 2012 that ended on September 29, 2012. Quarterly revenues were $41.3 million, down 25% from $54.8 million in the second quarter of fiscal 2012, and down 21% from $52.1 million in the third quarter of fiscal 2011.

 

On a GAAP basis, net loss for the third quarter of fiscal 2012 was $(14.5) million, or $(0.29) per fully-diluted share, compared to a net loss for the second quarter of fiscal 2012 of ($4.2) million or $(0.08) per fully-diluted share, and a net loss for the third quarter of fiscal 2011 of $(9.9) million or $(0.20) per fully-diluted share. The results for the third quarter of fiscal 2012 include restructuring charges, net of related income-tax impact, in the amount of $2.5 million, or $0.05 per fully diluted share.  The results for the third quarter of fiscal 2011 include restructuring charges, net of related income-tax impact, in the amount of $0.3 million or $0.01 per fully diluted share.

 

On a Non-GAAP basis, net loss for the third quarter of fiscal 2012 was $(7.7) million, or $(0.15) per fully-diluted share, compared to a net loss for the second quarter of fiscal 2012 of $(0.5) million or $(0.01) per fully-diluted share, and a net loss for the third quarter of fiscal 2011 of $(6.2) million or $(0.12) per fully-diluted share. A reconciliation of GAAP to non-GAAP net loss and net loss per share is provided in the schedules included below.

 

Cash usage for the third quarter of fiscal 2012 was $1.6 million, compared to cash usage of $2.6 million for the second quarter of fiscal 2012 and cash usage of $8.6 million for the third quarter of fiscal 2011. There was no stock buyback during the third quarter of fiscal 2012, compared to a stock buyback of $5.5 million for the third quarter of fiscal 2011.

 

“We saw softening demand in Q3 in the personal computer and mobile device markets, which negatively impacted our business,” said Tom St. Dennis, CEO of FormFactor. “We continued our focus on operational efficiencies during Q3, and also undertook a transformational strategic step through our acquisition of Micro-Probe, which closed on October 16th.”

 

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 November 3, 2012, 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 35897047. 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:

 

FormFactor, Inc. (NASDAQ: FORM ) is a leader in advanced wafer test solutions. The company’s advanced wafer probe cards enable semiconductor manufacturers to lower their overall production costs, improve yields, and bring next-generation devices to market. FormFactor’s acquisition of MicroProbe creates the leading wafer test solution provider for both memory and non-memory semiconductor manufacturers. 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: our ability to successfully integrate and realize the anticipated benefits of the Micro-Probe acquisition; risks around customers’ engagement with the newly combined entities; risks of the company’s ability to meet customers’ test roadmaps; risks of the company’s ability to realize further operational efficiencies; personnel retention; and changes in the market and macro-economic environments. 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 31, 2011, as filed with the SEC, and subsequent SEC filings, including the company’s Quarterly Reports on Forms 10-Q. 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

 

Year to Date

 

 

 

September 29,

 

September 24,

 

September 29,

 

September 24,

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

41,262

 

$

52,115

 

$

130,881

 

$

139,101

 

Cost of revenues

 

33,110

 

40,141

 

102,406

 

113,168

 

Gross profit

 

8,152

 

11,974

 

28,475

 

25,933

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Research and development

 

8,573

 

10,423

 

30,355

 

32,861

 

Selling, general and administrative

 

11,594

 

11,200

 

34,273

 

34,741

 

Restructuring charges, net

 

2,481

 

258

 

2,584

 

197

 

Impairment of long-lived assets

 

143

 

100

 

372

 

451

 

Total operating expenses

 

22,791

 

21,981

 

67,584

 

68,250

 

Operating loss

 

(14,639

)

(10,007

)

(39,109

)

(42,317

)

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

163

 

335

 

557

 

1,128

 

Other income (expense), net

 

171

 

(75

)

1,127

 

135

 

Loss before income taxes

 

(14,305

)

(9,747

)

(37,425

)

(41,054

)

Provision for (benefit from) income taxes

 

173

 

157

 

1,276

 

(2,048

)

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(14,478

)

$

(9,904

)

$

(36,149

)

$

(39,006

)

 

 

 

 

 

 

 

 

 

 

Net loss per share:

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

$

(0.29

)

$

(0.20

)

$

(0.73

)

$

(0.77

)

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

50,154

 

50,747

 

49,805

 

50,719

 

 

Reconciliation of Non-GAAP Net Loss:

 

 

 

Three Months Ended

 

Year to Date

 

 

 

September 29,

 

September 24,

 

September 29,

 

September 24,

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(14,478

)

$

(9,904

)

$

(36,149

)

$

(39,006

)

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

 

2,968

 

3,339

 

9,489

 

9,661

 

Restructuring charges, net of related income-tax impact *

 

2,481

 

258

 

2,584

 

197

 

Acquisition costs, net of related income-tax impact *

 

1,175

 

 

1,175

 

 

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

 

143

 

100

 

372

 

451

 

Income tax valuation allowance release

 

 

 

 

(2,450

)

Non-GAAP net loss

 

$

(7,711

)

$

(6,207

)

$

(22,529

)

$

(31,147

)

 

 

 

 

 

 

 

 

 

 

Non-GAAP net loss per share:

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

$

(0.15

)

$

(0.12

)

$

(0.45

)

$

(0.61

)

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

50,154

 

50,747

 

49,805

 

50,719

 

 


*  There was no related income-tax impact to stock-based compensation, restructuring and impairment charges in fiscal 2012 and fiscal 2011 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 29,

 

December 31,

 

 

 

2012

 

2011

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

162,062

 

$

139,049

 

Marketable securities

 

114,101

 

157,642

 

Accounts receivable, net

 

16,891

 

12,662

 

Inventories

 

20,054

 

18,092

 

Deferred tax assets

 

729

 

1,162

 

Prepaid expenses and other current assets

 

6,367

 

8,368

 

Total current assets

 

320,204

 

336,975

 

Restricted cash

 

318

 

317

 

Property, plant and equipment, net

 

32,912

 

35,132

 

Deferred tax assets

 

5,902

 

5,954

 

Other assets

 

3,495

 

4,693

 

Total assets

 

$

362,831

 

$

383,071

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

10,856

 

$

9,731

 

Accrued liabilities

 

17,412

 

13,966

 

Income taxes payable

 

434

 

100

 

Deferred revenue

 

6,093

 

4,798

 

Total current liabilities

 

34,795

 

28,595

 

Long-term income taxes payable

 

1,355

 

4,112

 

Deferred rent and other liabilities

 

4,228

 

3,712

 

Total liabilities

 

40,378

 

36,419

 

Stockholders’ equity:

 

 

 

 

 

Common stock and capital in excess of par value

 

663,923

 

652,074

 

Accumulated other comprehensive income

 

2,800

 

2,700

 

Accumulated deficit

 

(344,270

)

(308,122

)

Total stockholders’ equity

 

322,453

 

346,652

 

Total liabilities and stockholders’ equity

 

$

362,831

 

$

383,071