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 31, 2013

 

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 31, 2013, FormFactor, Inc. (“FormFactor”) issued a press release announcing its financial results for the second quarter of fiscal 2013 that ended on June 29, 2013.  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 31, 2013.

 

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 31, 2013

 

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 31, 2013.

 

4


Exhibit 99.01

 

 

News Release

 

Investor Contact:

Stan Finkelstein

Investor Relations

(925) 290-4321

ir@formfactor.com

 

FormFactor, Inc. Reports Second Quarter Results

Q2 marks Company’s first quarter of positive cash flow since Q4’07

 

LIVERMORE, Calif. — July 31, 2013 — FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the second quarter of fiscal 2013 that ended on June 29, 2013. Quarterly revenues were $62.7 million, up 19% from $52.6 million in the first quarter of fiscal 2013, and up 14% from $54.8 million in the second quarter of fiscal 2012.

 

On a GAAP basis, net loss for the second quarter of fiscal 2013 was $8.4 million or $(0.16) per fully-diluted share, compared to a net loss for the first quarter of fiscal 2013 of $19.8 million or $(0.37) per fully-diluted share, and a net loss for the second quarter of fiscal 2012 of $4.2 million or $(0.08) per fully-diluted share.

 

On a Non-GAAP basis, net loss for the second quarter of fiscal 2013 was $0.3 million, or $(0.01) per fully-diluted share, compared to a net loss for the first quarter of fiscal 2013 of $6.9 million or $(0.13) per fully-diluted share, and a net loss for the second quarter of fiscal 2012 of $0.5 million or $(0.01) 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 generation for the second quarter of fiscal 2013 was $1.0 million, compared to cash usage of $12.1 million for the first quarter of fiscal 2013 and cash usage of $2.6 million for the second quarter of fiscal 2012.

 

“Q2 marked an important step in the company’s turnaround as we generated our first quarter of positive cash flow since Q4’07,” said Tom St. Dennis, CEO of FormFactor. “Revenue in Q2 showed nice improvement over Q1 in all markets, and our overall results benefited from our continuing focus on the gross margins and operating expenses of the combined FormFactor/MicroProbe businesses.”

 

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 web site 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 August 2, 2013, 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 13038714. 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, MicroProbe, and the FormFactor and MicroProbe logos are registered or unregistered 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 or trends, 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 Astria Semiconductor Holdings, Inc. acquisition, including MicroProbe Incorporated; risks of the

 



 

company’s ability to meet customers’ test roadmaps; risks of the company’s ability to realize further operational efficiencies and achieve synergies through the MicroProbe integration; 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 29, 2012, 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

 

 

 

June 29
2013

 

June 30
2012

 

June 29
2013

 

June 30
2013

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

62,733

 

$

54,813

 

$

115,353

 

$

89,619

 

Cost of revenues

 

46,328

 

38,646

 

89,873

 

69,296

 

Gross profit

 

16,405

 

16,167

 

25,480

 

20,323

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Research and development

 

10,915

 

10,935

 

21,844

 

21,782

 

Selling, general and administrative

 

13,487

 

11,531

 

28,105

 

22,679

 

Restructuring charges, net

 

92

 

136

 

4,072

 

103

 

Loss on sale of subsidiary

 

300

 

 

300

 

 

Impairment of long-lived assets

 

121

 

61

 

179

 

229

 

Total operating expenses

 

24,915

 

22,663

 

54,500

 

44,793

 

Operating loss

 

(8,510

)

(6,496

)

(29,020

)

(24,470

)

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

96

 

182

 

203

 

394

 

Other income, net

 

209

 

546

 

632

 

956

 

Loss before income taxes

 

(8,205

)

(5,768

)

(28,185

)

(23,120

)

Provision for (benefit from) income taxes

 

202

 

(1,551

)

(5

)

(1,449

)

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(8,407

)

$

(4,217

)

$

(28,180

)

$

(21,671

)

 

 

 

 

 

 

 

 

 

 

Net loss per share:

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

$

(0.16

)

$

(0.08

)

$

(0.52

)

$

(0.44

)

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

54,105

 

49,817

 

53,886

 

49,652

 

 

Reconciliation of Non-GAAP Loss:

 

 

 

Three Months Ended

 

Year to Date

 

 

 

June 29

 

June 30

 

June 29

 

June 30

 

 

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(8,407

)

$

(4,217

)

$

(28,180

)

$

(21,671

)

Stock-based compensation

 

3,132

 

3,478

 

6,166

 

6,521

 

Restructuring charges, net

 

92

 

136

 

4,072

 

103

 

Acquisition and integration related expenses

 

282

 

 

1,194

 

 

Amortization of intangibles, inventory and fixed assets fair value adjustment due to acquisition

 

4,206

 

 

8,992

 

 

Impairment of long-lived assets and loss on sale of subsidiary

 

421

 

61

 

479

 

229

 

Income tax valuation allowance

 

 

 

150

 

 

Non-GAAP net loss

 

$

(274

)

$

(542

)

$

(7,127

)

$

(14,818

)

 

 

 

 

 

 

 

 

 

 

Non-GAAP net loss per share:

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

$

(0.01

)

$

(0.01

)

$

(0.13

)

$

(0.30

)

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

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

54,105

 

49,817

 

53,886

 

49,652

 

 



 

FORMFACTOR, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

(Unaudited)

 

 

 

June 29,

 

December 29,

 

 

 

2013

 

2012

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

57,160

 

$

72,243

 

Marketable securities

 

97,362

 

93,545

 

Accounts receivable, net

 

38,964

 

28,919

 

Inventories, net

 

26,130

 

23,616

 

Deferred tax assets

 

4,204

 

4,613

 

Refundable income taxes

 

1,568

 

5,667

 

Prepaid expenses and other current assets

 

6,191

 

10,569

 

Total current assets

 

231,579

 

239,172

 

Restricted cash

 

421

 

318

 

Property, plant and equipment, net

 

39,630

 

45,515

 

Goodwill

 

29,958

 

30,994

 

Intangibles, net

 

65,625

 

74,276

 

Deferred tax assets

 

4,076

 

4,207

 

Other assets

 

989

 

1,200

 

Total assets

 

$

372,278

 

$

395,682

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

24,181

 

$

21,015

 

Accrued liabilities

 

13,808

 

17,270

 

Capital leases, current portion

 

503

 

573

 

Income taxes payable

 

446

 

 

Deferred revenue

 

6,113

 

6,189

 

Total current liabilities

 

45,051

 

45,047

 

Long-term income taxes payable

 

2,786

 

3,028

 

Capital leases, net of current portion

 

39

 

340

 

Deferred rent and other liabilities

 

7,521

 

8,009

 

Total liabilities

 

55,397

 

56,424

 

Stockholders’ equity:

 

 

 

 

 

Common stock and capital in excess of par value

 

688,701

 

681,211

 

Accumulated other comprehensive income

 

28

 

1,715

 

Accumulated deficit

 

(371,848

)

(343,668

)

Total stockholders’ equity

 

316,881

 

339,258

 

Total liabilities and stockholders’ equity

 

$

372,278

 

$

395,682