Document
false--12-28Q32019000103939926310200026848600018500019400000.0010.00125000000025000000074139712756962347413971275696234160000570001290000P1YP1Y00.0010.00110000000100000000000
0001039399
2018-12-30
2019-09-28
0001039399
2019-10-31
0001039399
2018-12-29
0001039399
2019-09-28
0001039399
2018-07-01
2018-09-29
0001039399
2017-12-31
2018-09-29
0001039399
2019-06-30
2019-09-28
0001039399
2018-09-29
0001039399
us-gaap:CommonStockMember
2017-12-30
0001039399
us-gaap:AdditionalPaidInCapitalMember
2018-09-29
0001039399
2018-06-30
0001039399
us-gaap:AdditionalPaidInCapitalMember
2018-06-30
0001039399
us-gaap:CommonStockMember
2018-06-30
0001039399
us-gaap:CommonStockMember
2017-12-31
2018-09-29
0001039399
us-gaap:AdditionalPaidInCapitalMember
2017-12-31
2018-09-29
0001039399
us-gaap:AdditionalPaidInCapitalMember
2018-07-01
2018-09-29
0001039399
us-gaap:RetainedEarningsMember
2018-09-29
0001039399
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2018-07-01
2018-09-29
0001039399
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2018-09-29
0001039399
us-gaap:AdditionalPaidInCapitalMember
2017-12-30
0001039399
us-gaap:RetainedEarningsMember
2017-12-31
2018-09-29
0001039399
2017-12-30
0001039399
us-gaap:CommonStockMember
2018-07-01
2018-09-29
0001039399
us-gaap:RetainedEarningsMember
2018-07-01
2018-09-29
0001039399
us-gaap:CommonStockMember
2018-09-29
0001039399
us-gaap:RetainedEarningsMember
2018-06-30
0001039399
us-gaap:RetainedEarningsMember
2017-12-30
0001039399
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2017-12-30
0001039399
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2018-06-30
0001039399
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2017-12-31
2018-09-29
0001039399
us-gaap:AdditionalPaidInCapitalMember
2018-12-29
0001039399
us-gaap:CommonStockMember
2018-12-29
0001039399
us-gaap:CommonStockMember
2018-12-30
2019-09-28
0001039399
us-gaap:CommonStockMember
2019-09-28
0001039399
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-09-28
0001039399
us-gaap:RetainedEarningsMember
2018-12-29
0001039399
us-gaap:AdditionalPaidInCapitalMember
2018-12-30
2019-09-28
0001039399
us-gaap:AdditionalPaidInCapitalMember
2019-06-30
2019-09-28
0001039399
us-gaap:RetainedEarningsMember
2018-12-30
2019-09-28
0001039399
2019-06-29
0001039399
us-gaap:RetainedEarningsMember
2019-06-29
0001039399
us-gaap:CommonStockMember
2019-06-30
2019-09-28
0001039399
us-gaap:AdditionalPaidInCapitalMember
2019-06-29
0001039399
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2018-12-30
2019-09-28
0001039399
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2018-12-29
0001039399
us-gaap:AdditionalPaidInCapitalMember
2019-09-28
0001039399
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-06-29
0001039399
us-gaap:RetainedEarningsMember
2019-06-30
2019-09-28
0001039399
us-gaap:CommonStockMember
2019-06-29
0001039399
us-gaap:RetainedEarningsMember
2019-09-28
0001039399
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-06-30
2019-09-28
0001039399
form:IntelMember
us-gaap:RevenueFromContractWithCustomerMember
us-gaap:CustomerConcentrationRiskMember
2018-07-01
2018-09-29
0001039399
us-gaap:RevenueFromContractWithCustomerMember
us-gaap:CustomerConcentrationRiskMember
2018-07-01
2018-09-29
0001039399
form:SKHynixMember
us-gaap:RevenueFromContractWithCustomerMember
us-gaap:CustomerConcentrationRiskMember
2017-12-31
2018-09-29
0001039399
form:IntelMember
us-gaap:RevenueFromContractWithCustomerMember
us-gaap:CustomerConcentrationRiskMember
2017-12-31
2018-09-29
0001039399
form:SKHynixMember
us-gaap:RevenueFromContractWithCustomerMember
us-gaap:CustomerConcentrationRiskMember
2019-06-30
2019-09-28
0001039399
us-gaap:RevenueFromContractWithCustomerMember
us-gaap:CustomerConcentrationRiskMember
2017-12-31
2018-09-29
0001039399
form:IntelMember
us-gaap:RevenueFromContractWithCustomerMember
us-gaap:CustomerConcentrationRiskMember
2019-06-30
2019-09-28
0001039399
form:SKHynixMember
us-gaap:RevenueFromContractWithCustomerMember
us-gaap:CustomerConcentrationRiskMember
2018-12-30
2019-09-28
0001039399
us-gaap:RevenueFromContractWithCustomerMember
us-gaap:CustomerConcentrationRiskMember
2018-12-30
2019-09-28
0001039399
form:MicronMember
us-gaap:RevenueFromContractWithCustomerMember
us-gaap:CustomerConcentrationRiskMember
2018-07-01
2018-09-29
0001039399
form:MicronMember
us-gaap:RevenueFromContractWithCustomerMember
us-gaap:CustomerConcentrationRiskMember
2019-06-30
2019-09-28
0001039399
us-gaap:RevenueFromContractWithCustomerMember
us-gaap:CustomerConcentrationRiskMember
2019-06-30
2019-09-28
0001039399
form:MicronMember
us-gaap:RevenueFromContractWithCustomerMember
us-gaap:CustomerConcentrationRiskMember
2017-12-31
2018-09-29
0001039399
form:IntelMember
us-gaap:RevenueFromContractWithCustomerMember
us-gaap:CustomerConcentrationRiskMember
2018-12-30
2019-09-28
0001039399
form:SamsungMember
us-gaap:RevenueFromContractWithCustomerMember
us-gaap:CustomerConcentrationRiskMember
2018-12-30
2019-09-28
0001039399
form:MajorCustomer1Member
us-gaap:AccountsReceivableMember
us-gaap:CustomerConcentrationRiskMember
2017-12-31
2018-12-29
0001039399
form:MajorCustomer2Member
us-gaap:AccountsReceivableMember
us-gaap:CustomerConcentrationRiskMember
2017-12-31
2018-12-29
0001039399
form:MajorCustomer1Member
us-gaap:AccountsReceivableMember
us-gaap:CustomerConcentrationRiskMember
2018-12-30
2019-09-28
0001039399
form:MajorCustomer2Member
us-gaap:AccountsReceivableMember
us-gaap:CustomerConcentrationRiskMember
2018-12-30
2019-09-28
0001039399
form:SystemsSegmentMember
2018-12-29
0001039399
form:SystemsSegmentMember
2018-12-30
2019-09-28
0001039399
form:ProbeCardsSegmentMember
2018-12-29
0001039399
form:ProbeCardsSegmentMember
2018-12-30
2019-09-28
0001039399
form:ProbeCardsSegmentMember
2017-12-30
0001039399
form:SystemsSegmentMember
2017-12-30
0001039399
form:ProbeCardsSegmentMember
2019-09-28
0001039399
2017-12-31
2018-12-29
0001039399
form:SystemsSegmentMember
2017-12-31
2018-12-29
0001039399
form:SystemsSegmentMember
2019-09-28
0001039399
form:ProbeCardsSegmentMember
2017-12-31
2018-12-29
0001039399
us-gaap:CustomerRelationshipsMember
2019-09-28
0001039399
us-gaap:TradeNamesMember
2019-09-28
0001039399
us-gaap:CustomerRelationshipsMember
2018-12-29
0001039399
form:ExistingDevelopedTechnologiesMember
2019-09-28
0001039399
form:ExistingDevelopedTechnologiesMember
2018-12-29
0001039399
us-gaap:TradeNamesMember
2018-12-29
0001039399
us-gaap:CostOfSalesMember
2018-12-30
2019-09-28
0001039399
us-gaap:CostOfSalesMember
2018-07-01
2018-09-29
0001039399
us-gaap:SellingGeneralAndAdministrativeExpensesMember
2019-06-30
2019-09-28
0001039399
us-gaap:CostOfSalesMember
2017-12-31
2018-09-29
0001039399
us-gaap:CostOfSalesMember
2019-06-30
2019-09-28
0001039399
us-gaap:SellingGeneralAndAdministrativeExpensesMember
2018-07-01
2018-09-29
0001039399
us-gaap:SellingGeneralAndAdministrativeExpensesMember
2018-12-30
2019-09-28
0001039399
us-gaap:SellingGeneralAndAdministrativeExpensesMember
2017-12-31
2018-09-29
0001039399
us-gaap:OtherRestructuringMember
2019-09-28
0001039399
us-gaap:EmployeeSeveranceMember
2018-12-30
2019-09-28
0001039399
us-gaap:EmployeeSeveranceMember
2019-09-28
0001039399
us-gaap:EmployeeSeveranceMember
2018-12-29
0001039399
us-gaap:OtherRestructuringMember
2018-12-30
2019-09-28
0001039399
us-gaap:OtherRestructuringMember
2018-12-29
0001039399
us-gaap:FairValueMeasurementsNonrecurringMember
2019-09-28
0001039399
us-gaap:CommercialPaperMember
us-gaap:FairValueInputsLevel2Member
2018-12-29
0001039399
us-gaap:ForeignExchangeContractMember
us-gaap:FairValueInputsLevel2Member
2018-12-29
0001039399
us-gaap:CommercialPaperMember
2018-12-29
0001039399
us-gaap:USGovernmentAgenciesDebtSecuritiesMember
us-gaap:FairValueInputsLevel1Member
2018-12-29
0001039399
us-gaap:MoneyMarketFundsMember
us-gaap:FairValueInputsLevel2Member
2018-12-29
0001039399
us-gaap:ForeignExchangeContractMember
2018-12-29
0001039399
us-gaap:USTreasuryBillSecuritiesMember
us-gaap:FairValueInputsLevel2Member
2018-12-29
0001039399
us-gaap:InterestRateSwapMember
2018-12-29
0001039399
us-gaap:CommercialPaperMember
us-gaap:FairValueInputsLevel1Member
2018-12-29
0001039399
us-gaap:USGovernmentAgenciesDebtSecuritiesMember
us-gaap:FairValueInputsLevel2Member
2018-12-29
0001039399
us-gaap:InterestRateSwapMember
us-gaap:FairValueInputsLevel1Member
2018-12-29
0001039399
us-gaap:CertificatesOfDepositMember
2018-12-29
0001039399
us-gaap:CorporateBondSecuritiesMember
us-gaap:FairValueInputsLevel2Member
2018-12-29
0001039399
us-gaap:ForeignExchangeContractMember
us-gaap:FairValueInputsLevel1Member
2018-12-29
0001039399
us-gaap:FairValueInputsLevel1Member
2018-12-29
0001039399
us-gaap:CorporateBondSecuritiesMember
us-gaap:FairValueInputsLevel1Member
2018-12-29
0001039399
us-gaap:FairValueInputsLevel2Member
2018-12-29
0001039399
us-gaap:USTreasuryBillSecuritiesMember
2018-12-29
0001039399
us-gaap:USGovernmentAgenciesDebtSecuritiesMember
2018-12-29
0001039399
us-gaap:CertificatesOfDepositMember
us-gaap:FairValueInputsLevel2Member
2018-12-29
0001039399
us-gaap:CorporateBondSecuritiesMember
2018-12-29
0001039399
us-gaap:MoneyMarketFundsMember
us-gaap:FairValueInputsLevel1Member
2018-12-29
0001039399
us-gaap:USTreasuryBillSecuritiesMember
us-gaap:FairValueInputsLevel1Member
2018-12-29
0001039399
us-gaap:InterestRateSwapMember
us-gaap:FairValueInputsLevel2Member
2018-12-29
0001039399
us-gaap:MoneyMarketFundsMember
2018-12-29
0001039399
us-gaap:CertificatesOfDepositMember
us-gaap:FairValueInputsLevel1Member
2018-12-29
0001039399
currency:KRW
us-gaap:ForeignExchangeForwardMember
us-gaap:ShortMember
2019-09-28
0001039399
currency:EUR
us-gaap:ForeignExchangeForwardMember
us-gaap:LongMember
2019-09-28
0001039399
us-gaap:ForeignExchangeForwardMember
2019-09-28
0001039399
currency:JPY
us-gaap:ForeignExchangeForwardMember
us-gaap:ShortMember
2019-09-28
0001039399
us-gaap:InterestRateSwapMember
us-gaap:CashFlowHedgingMember
us-gaap:DesignatedAsHedgingInstrumentMember
form:OtherIncomeExpenseNetMember
2019-06-30
2019-09-28
0001039399
us-gaap:InterestRateSwapMember
us-gaap:CashFlowHedgingMember
us-gaap:DesignatedAsHedgingInstrumentMember
form:OtherIncomeExpenseNetMember
2017-12-31
2018-09-29
0001039399
us-gaap:InterestRateSwapMember
us-gaap:CashFlowHedgingMember
us-gaap:DesignatedAsHedgingInstrumentMember
2018-12-30
2019-09-28
0001039399
us-gaap:InterestRateSwapMember
us-gaap:CashFlowHedgingMember
us-gaap:DesignatedAsHedgingInstrumentMember
form:OtherIncomeExpenseNetMember
2018-07-01
2018-09-29
0001039399
us-gaap:InterestRateSwapMember
us-gaap:CashFlowHedgingMember
us-gaap:DesignatedAsHedgingInstrumentMember
form:OtherIncomeExpenseNetMember
2018-12-30
2019-09-28
0001039399
us-gaap:InterestRateSwapMember
us-gaap:CashFlowHedgingMember
us-gaap:DesignatedAsHedgingInstrumentMember
2017-12-31
2018-09-29
0001039399
us-gaap:InterestRateSwapMember
us-gaap:CashFlowHedgingMember
us-gaap:DesignatedAsHedgingInstrumentMember
2018-07-01
2018-09-29
0001039399
us-gaap:InterestRateSwapMember
us-gaap:CashFlowHedgingMember
us-gaap:DesignatedAsHedgingInstrumentMember
2019-06-30
2019-09-28
0001039399
us-gaap:ForeignExchangeForwardMember
us-gaap:DesignatedAsHedgingInstrumentMember
us-gaap:ResearchAndDevelopmentExpenseMember
2018-12-30
2019-09-28
0001039399
us-gaap:ForeignExchangeForwardMember
us-gaap:DesignatedAsHedgingInstrumentMember
2019-06-30
2019-09-28
0001039399
us-gaap:ForeignExchangeForwardMember
us-gaap:DesignatedAsHedgingInstrumentMember
us-gaap:ResearchAndDevelopmentExpenseMember
2019-06-30
2019-09-28
0001039399
us-gaap:ForeignExchangeForwardMember
us-gaap:DesignatedAsHedgingInstrumentMember
us-gaap:SellingGeneralAndAdministrativeExpensesMember
2019-06-30
2019-09-28
0001039399
us-gaap:ForeignExchangeForwardMember
us-gaap:DesignatedAsHedgingInstrumentMember
2018-12-30
2019-09-28
0001039399
us-gaap:ForeignExchangeForwardMember
us-gaap:DesignatedAsHedgingInstrumentMember
us-gaap:CostOfSalesMember
2018-12-30
2019-09-28
0001039399
us-gaap:ForeignExchangeForwardMember
us-gaap:DesignatedAsHedgingInstrumentMember
us-gaap:CostOfSalesMember
2019-06-30
2019-09-28
0001039399
us-gaap:ForeignExchangeForwardMember
us-gaap:DesignatedAsHedgingInstrumentMember
2018-07-01
2018-09-29
0001039399
us-gaap:ForeignExchangeForwardMember
us-gaap:DesignatedAsHedgingInstrumentMember
2017-12-31
2018-09-29
0001039399
us-gaap:ForeignExchangeForwardMember
us-gaap:DesignatedAsHedgingInstrumentMember
us-gaap:SellingGeneralAndAdministrativeExpensesMember
2018-12-30
2019-09-28
0001039399
us-gaap:ForeignExchangeForwardMember
us-gaap:NondesignatedMember
us-gaap:OtherNonoperatingIncomeExpenseMember
2019-06-30
2019-09-28
0001039399
us-gaap:ForeignExchangeForwardMember
us-gaap:NondesignatedMember
us-gaap:OtherNonoperatingIncomeExpenseMember
2017-12-31
2018-09-29
0001039399
us-gaap:ForeignExchangeForwardMember
us-gaap:NondesignatedMember
us-gaap:OtherNonoperatingIncomeExpenseMember
2018-12-30
2019-09-28
0001039399
us-gaap:ForeignExchangeForwardMember
us-gaap:NondesignatedMember
us-gaap:OtherNonoperatingIncomeExpenseMember
2018-07-01
2018-09-29
0001039399
us-gaap:ForeignExchangeContractMember
2019-09-28
0001039399
us-gaap:USTreasuryBillSecuritiesMember
us-gaap:FairValueInputsLevel2Member
2019-09-28
0001039399
us-gaap:FairValueInputsLevel1Member
2019-09-28
0001039399
us-gaap:CertificatesOfDepositMember
us-gaap:FairValueInputsLevel1Member
2019-09-28
0001039399
us-gaap:FairValueInputsLevel2Member
2019-09-28
0001039399
us-gaap:USGovernmentAgenciesDebtSecuritiesMember
us-gaap:FairValueInputsLevel1Member
2019-09-28
0001039399
us-gaap:ForeignExchangeContractMember
us-gaap:FairValueInputsLevel1Member
2019-09-28
0001039399
us-gaap:CommercialPaperMember
us-gaap:FairValueInputsLevel2Member
2019-09-28
0001039399
us-gaap:InterestRateSwapMember
us-gaap:FairValueInputsLevel1Member
2019-09-28
0001039399
us-gaap:CorporateBondSecuritiesMember
us-gaap:FairValueInputsLevel1Member
2019-09-28
0001039399
us-gaap:MoneyMarketFundsMember
us-gaap:FairValueInputsLevel1Member
2019-09-28
0001039399
us-gaap:ForeignExchangeContractMember
us-gaap:FairValueInputsLevel2Member
2019-09-28
0001039399
us-gaap:InterestRateSwapMember
us-gaap:FairValueInputsLevel2Member
2019-09-28
0001039399
us-gaap:CertificatesOfDepositMember
us-gaap:FairValueInputsLevel2Member
2019-09-28
0001039399
us-gaap:USGovernmentAgenciesDebtSecuritiesMember
us-gaap:FairValueInputsLevel2Member
2019-09-28
0001039399
us-gaap:MoneyMarketFundsMember
2019-09-28
0001039399
us-gaap:CorporateBondSecuritiesMember
us-gaap:FairValueInputsLevel2Member
2019-09-28
0001039399
us-gaap:USGovernmentAgenciesDebtSecuritiesMember
2019-09-28
0001039399
us-gaap:MoneyMarketFundsMember
us-gaap:FairValueInputsLevel2Member
2019-09-28
0001039399
us-gaap:USTreasuryBillSecuritiesMember
2019-09-28
0001039399
us-gaap:InterestRateSwapMember
2019-09-28
0001039399
us-gaap:USTreasuryBillSecuritiesMember
us-gaap:FairValueInputsLevel1Member
2019-09-28
0001039399
us-gaap:CommercialPaperMember
us-gaap:FairValueInputsLevel1Member
2019-09-28
0001039399
us-gaap:CorporateBondSecuritiesMember
2019-09-28
0001039399
us-gaap:CommercialPaperMember
2019-09-28
0001039399
us-gaap:CertificatesOfDepositMember
2019-09-28
0001039399
us-gaap:FairValueMeasurementsNonrecurringMember
2018-12-29
0001039399
us-gaap:RestrictedStockMember
2018-12-30
2019-09-28
0001039399
us-gaap:RestrictedStockMember
2019-09-28
0001039399
form:PerformanceRestrictedStockUnitsMember
2019-09-28
0001039399
form:PerformanceRestrictedStockUnitsMember
2018-12-30
2019-09-28
0001039399
us-gaap:EmployeeStockMember
2019-09-28
0001039399
us-gaap:EmployeeStockMember
2018-12-30
2019-09-28
0001039399
us-gaap:ResearchAndDevelopmentExpenseMember
2019-06-30
2019-09-28
0001039399
us-gaap:ResearchAndDevelopmentExpenseMember
2018-07-01
2018-09-29
0001039399
us-gaap:ResearchAndDevelopmentExpenseMember
2018-12-30
2019-09-28
0001039399
us-gaap:ResearchAndDevelopmentExpenseMember
2017-12-31
2018-09-29
0001039399
form:PerformanceRestrictedStockUnitsMember
form:EquityIncentivePlanMember
2019-06-04
0001039399
form:PerformanceRestrictedStockUnitsMember
form:EquityIncentivePlanMember
2019-06-04
2019-06-04
0001039399
us-gaap:CommonStockMember
2017-02-28
0001039399
us-gaap:RestrictedStockUnitsRSUMember
form:EquityIncentivePlanMember
2018-12-30
2019-09-28
0001039399
us-gaap:RestrictedStockUnitsRSUMember
form:EquityIncentivePlanMember
2019-09-28
0001039399
us-gaap:RestrictedStockUnitsRSUMember
form:EquityIncentivePlanMember
2018-12-29
0001039399
form:EquityIncentivePlanMember
2019-09-28
0001039399
form:EquityIncentivePlanMember
2018-12-30
2019-09-28
0001039399
form:EquityIncentivePlanMember
2018-12-29
0001039399
srt:MaximumMember
us-gaap:AutomobilesMember
2019-09-28
0001039399
srt:MaximumMember
2019-09-28
0001039399
srt:MinimumMember
2019-09-28
0001039399
srt:MinimumMember
us-gaap:AutomobilesMember
2019-09-28
0001039399
srt:ScenarioForecastMember
2019-12-29
2020-12-26
0001039399
srt:ScenarioForecastMember
2019-06-30
2019-12-28
0001039399
srt:ScenarioForecastMember
2020-12-27
2021-12-25
0001039399
country:CN
form:ProbeCardsSegmentMember
2018-12-30
2019-09-28
0001039399
country:CN
form:SystemsSegmentMember
2018-12-30
2019-09-28
0001039399
country:KR
form:ProbeCardsSegmentMember
2018-12-30
2019-09-28
0001039399
country:TW
form:ProbeCardsSegmentMember
2018-12-30
2019-09-28
0001039399
country:TW
form:ProbeCardsSegmentMember
2017-12-31
2018-09-29
0001039399
country:JP
form:ProbeCardsSegmentMember
2017-12-31
2018-09-29
0001039399
srt:EuropeMember
form:SystemsSegmentMember
2017-12-31
2018-09-29
0001039399
country:US
form:SystemsSegmentMember
2018-12-30
2019-09-28
0001039399
srt:AsiaPacificMember
form:SystemsSegmentMember
2018-12-30
2019-09-28
0001039399
form:FlashProductGroupMember
2018-12-30
2019-09-28
0001039399
srt:EuropeMember
form:SystemsSegmentMember
2018-12-30
2019-09-28
0001039399
country:TW
form:SystemsSegmentMember
2018-12-30
2019-09-28
0001039399
form:SystemsProductGroupMember
form:ProbeCardsSegmentMember
2017-12-31
2018-09-29
0001039399
form:FlashProductGroupMember
form:SystemsSegmentMember
2018-12-30
2019-09-28
0001039399
country:US
2018-12-30
2019-09-28
0001039399
form:DRAMProductGroupMember
2018-12-30
2019-09-28
0001039399
form:FlashProductGroupMember
2017-12-31
2018-09-29
0001039399
form:RestOfTheWorldMember
form:ProbeCardsSegmentMember
2018-12-30
2019-09-28
0001039399
form:DRAMProductGroupMember
form:SystemsSegmentMember
2017-12-31
2018-09-29
0001039399
country:KR
form:ProbeCardsSegmentMember
2017-12-31
2018-09-29
0001039399
form:FoundryLogicProductGroupMember
form:ProbeCardsSegmentMember
2017-12-31
2018-09-29
0001039399
country:KR
form:SystemsSegmentMember
2017-12-31
2018-09-29
0001039399
form:FlashProductGroupMember
form:SystemsSegmentMember
2017-12-31
2018-09-29
0001039399
country:TW
form:SystemsSegmentMember
2017-12-31
2018-09-29
0001039399
form:SystemsSegmentMember
2017-12-31
2018-09-29
0001039399
form:RestOfTheWorldMember
2018-12-30
2019-09-28
0001039399
form:DRAMProductGroupMember
2017-12-31
2018-09-29
0001039399
form:SystemsProductGroupMember
2018-12-30
2019-09-28
0001039399
form:FoundryLogicProductGroupMember
2017-12-31
2018-09-29
0001039399
country:JP
2018-12-30
2019-09-28
0001039399
form:FoundryLogicProductGroupMember
2018-12-30
2019-09-28
0001039399
srt:EuropeMember
form:ProbeCardsSegmentMember
2018-12-30
2019-09-28
0001039399
us-gaap:TransferredOverTimeMember
2017-12-31
2018-09-29
0001039399
form:SystemsProductGroupMember
form:SystemsSegmentMember
2017-12-31
2018-09-29
0001039399
form:ProbeCardsSegmentMember
us-gaap:TransferredOverTimeMember
2018-12-30
2019-09-28
0001039399
form:SystemsProductGroupMember
form:SystemsSegmentMember
2018-12-30
2019-09-28
0001039399
form:RestOfTheWorldMember
form:SystemsSegmentMember
2018-12-30
2019-09-28
0001039399
country:KR
2018-12-30
2019-09-28
0001039399
form:SystemsProductGroupMember
form:ProbeCardsSegmentMember
2018-12-30
2019-09-28
0001039399
us-gaap:TransferredOverTimeMember
2018-12-30
2019-09-28
0001039399
srt:EuropeMember
2017-12-31
2018-09-29
0001039399
country:CN
2017-12-31
2018-09-29
0001039399
country:KR
form:SystemsSegmentMember
2018-12-30
2019-09-28
0001039399
country:CN
2018-12-30
2019-09-28
0001039399
srt:AsiaPacificMember
2017-12-31
2018-09-29
0001039399
form:ProbeCardsSegmentMember
2017-12-31
2018-09-29
0001039399
form:RestOfTheWorldMember
form:ProbeCardsSegmentMember
2017-12-31
2018-09-29
0001039399
country:US
form:SystemsSegmentMember
2017-12-31
2018-09-29
0001039399
srt:EuropeMember
form:ProbeCardsSegmentMember
2017-12-31
2018-09-29
0001039399
srt:AsiaPacificMember
form:ProbeCardsSegmentMember
2017-12-31
2018-09-29
0001039399
form:DRAMProductGroupMember
form:ProbeCardsSegmentMember
2018-12-30
2019-09-28
0001039399
form:FlashProductGroupMember
form:ProbeCardsSegmentMember
2017-12-31
2018-09-29
0001039399
srt:AsiaPacificMember
2018-12-30
2019-09-28
0001039399
country:TW
2017-12-31
2018-09-29
0001039399
form:DRAMProductGroupMember
form:SystemsSegmentMember
2018-12-30
2019-09-28
0001039399
country:US
form:ProbeCardsSegmentMember
2017-12-31
2018-09-29
0001039399
country:TW
2018-12-30
2019-09-28
0001039399
country:JP
form:ProbeCardsSegmentMember
2018-12-30
2019-09-28
0001039399
form:SystemsSegmentMember
us-gaap:TransferredOverTimeMember
2018-12-30
2019-09-28
0001039399
country:CN
form:SystemsSegmentMember
2017-12-31
2018-09-29
0001039399
form:SystemsSegmentMember
us-gaap:TransferredOverTimeMember
2017-12-31
2018-09-29
0001039399
srt:AsiaPacificMember
form:SystemsSegmentMember
2017-12-31
2018-09-29
0001039399
form:SystemsProductGroupMember
2017-12-31
2018-09-29
0001039399
form:DRAMProductGroupMember
form:ProbeCardsSegmentMember
2017-12-31
2018-09-29
0001039399
form:SystemsSegmentMember
us-gaap:TransferredAtPointInTimeMember
2018-12-30
2019-09-28
0001039399
form:RestOfTheWorldMember
form:SystemsSegmentMember
2017-12-31
2018-09-29
0001039399
country:JP
2017-12-31
2018-09-29
0001039399
form:SystemsSegmentMember
us-gaap:TransferredAtPointInTimeMember
2017-12-31
2018-09-29
0001039399
country:CN
form:ProbeCardsSegmentMember
2017-12-31
2018-09-29
0001039399
form:FoundryLogicProductGroupMember
form:ProbeCardsSegmentMember
2018-12-30
2019-09-28
0001039399
form:FoundryLogicProductGroupMember
form:SystemsSegmentMember
2017-12-31
2018-09-29
0001039399
srt:AsiaPacificMember
form:ProbeCardsSegmentMember
2018-12-30
2019-09-28
0001039399
country:JP
form:SystemsSegmentMember
2017-12-31
2018-09-29
0001039399
form:ProbeCardsSegmentMember
us-gaap:TransferredOverTimeMember
2017-12-31
2018-09-29
0001039399
us-gaap:TransferredAtPointInTimeMember
2017-12-31
2018-09-29
0001039399
form:ProbeCardsSegmentMember
us-gaap:TransferredAtPointInTimeMember
2018-12-30
2019-09-28
0001039399
srt:EuropeMember
2018-12-30
2019-09-28
0001039399
country:KR
2017-12-31
2018-09-29
0001039399
form:ProbeCardsSegmentMember
us-gaap:TransferredAtPointInTimeMember
2017-12-31
2018-09-29
0001039399
country:US
2017-12-31
2018-09-29
0001039399
country:US
form:ProbeCardsSegmentMember
2018-12-30
2019-09-28
0001039399
form:FoundryLogicProductGroupMember
form:SystemsSegmentMember
2018-12-30
2019-09-28
0001039399
country:JP
form:SystemsSegmentMember
2018-12-30
2019-09-28
0001039399
us-gaap:TransferredAtPointInTimeMember
2018-12-30
2019-09-28
0001039399
form:RestOfTheWorldMember
2017-12-31
2018-09-29
0001039399
form:FlashProductGroupMember
form:ProbeCardsSegmentMember
2018-12-30
2019-09-28
0001039399
us-gaap:CorporateAndOtherMember
2018-12-30
2019-09-28
0001039399
us-gaap:OperatingSegmentsMember
form:SystemsSegmentMember
2017-12-31
2018-09-29
0001039399
us-gaap:OperatingSegmentsMember
form:SystemsSegmentMember
2018-12-30
2019-09-28
0001039399
us-gaap:OperatingSegmentsMember
form:ProbeCardsSegmentMember
2018-12-30
2019-09-28
0001039399
us-gaap:OperatingSegmentsMember
form:ProbeCardsSegmentMember
2017-12-31
2018-09-29
0001039399
us-gaap:CorporateAndOtherMember
2017-12-31
2018-09-29
0001039399
country:TW
2018-07-01
2018-09-29
0001039399
country:CN
form:ProbeCardsSegmentMember
2019-06-30
2019-09-28
0001039399
country:US
form:ProbeCardsSegmentMember
2019-06-30
2019-09-28
0001039399
form:RestOfTheWorldMember
form:ProbeCardsSegmentMember
2019-06-30
2019-09-28
0001039399
form:SystemsProductGroupMember
form:SystemsSegmentMember
2018-07-01
2018-09-29
0001039399
srt:EuropeMember
form:SystemsSegmentMember
2018-07-01
2018-09-29
0001039399
form:FlashProductGroupMember
form:SystemsSegmentMember
2018-07-01
2018-09-29
0001039399
form:ProbeCardsSegmentMember
2018-07-01
2018-09-29
0001039399
country:US
form:ProbeCardsSegmentMember
2018-07-01
2018-09-29
0001039399
country:JP
form:ProbeCardsSegmentMember
2019-06-30
2019-09-28
0001039399
form:SystemsProductGroupMember
form:ProbeCardsSegmentMember
2018-07-01
2018-09-29
0001039399
form:SystemsProductGroupMember
2019-06-30
2019-09-28
0001039399
country:TW
form:SystemsSegmentMember
2019-06-30
2019-09-28
0001039399
country:TW
form:ProbeCardsSegmentMember
2018-07-01
2018-09-29
0001039399
form:FoundryLogicProductGroupMember
form:SystemsSegmentMember
2018-07-01
2018-09-29
0001039399
country:CN
form:ProbeCardsSegmentMember
2018-07-01
2018-09-29
0001039399
country:CN
2018-07-01
2018-09-29
0001039399
form:FoundryLogicProductGroupMember
form:SystemsSegmentMember
2019-06-30
2019-09-28
0001039399
srt:EuropeMember
2018-07-01
2018-09-29
0001039399
country:CN
form:SystemsSegmentMember
2019-06-30
2019-09-28
0001039399
form:ProbeCardsSegmentMember
2019-06-30
2019-09-28
0001039399
country:US
2018-07-01
2018-09-29
0001039399
country:CN
form:SystemsSegmentMember
2018-07-01
2018-09-29
0001039399
form:FlashProductGroupMember
2019-06-30
2019-09-28
0001039399
country:KR
form:ProbeCardsSegmentMember
2019-06-30
2019-09-28
0001039399
country:JP
form:ProbeCardsSegmentMember
2018-07-01
2018-09-29
0001039399
form:SystemsSegmentMember
us-gaap:TransferredAtPointInTimeMember
2018-07-01
2018-09-29
0001039399
form:SystemsProductGroupMember
form:SystemsSegmentMember
2019-06-30
2019-09-28
0001039399
form:FlashProductGroupMember
2018-07-01
2018-09-29
0001039399
country:JP
2018-07-01
2018-09-29
0001039399
srt:AsiaPacificMember
form:SystemsSegmentMember
2018-07-01
2018-09-29
0001039399
form:SystemsSegmentMember
2018-07-01
2018-09-29
0001039399
country:US
2019-06-30
2019-09-28
0001039399
srt:EuropeMember
form:ProbeCardsSegmentMember
2019-06-30
2019-09-28
0001039399
country:CN
2019-06-30
2019-09-28
0001039399
srt:AsiaPacificMember
2018-07-01
2018-09-29
0001039399
srt:EuropeMember
2019-06-30
2019-09-28
0001039399
form:SystemsSegmentMember
2019-06-30
2019-09-28
0001039399
srt:AsiaPacificMember
form:SystemsSegmentMember
2019-06-30
2019-09-28
0001039399
form:DRAMProductGroupMember
form:SystemsSegmentMember
2018-07-01
2018-09-29
0001039399
country:US
form:SystemsSegmentMember
2019-06-30
2019-09-28
0001039399
srt:EuropeMember
form:ProbeCardsSegmentMember
2018-07-01
2018-09-29
0001039399
form:RestOfTheWorldMember
2018-07-01
2018-09-29
0001039399
form:SystemsSegmentMember
us-gaap:TransferredOverTimeMember
2019-06-30
2019-09-28
0001039399
us-gaap:TransferredOverTimeMember
2019-06-30
2019-09-28
0001039399
country:TW
2019-06-30
2019-09-28
0001039399
country:JP
2019-06-30
2019-09-28
0001039399
form:FoundryLogicProductGroupMember
form:ProbeCardsSegmentMember
2019-06-30
2019-09-28
0001039399
country:KR
form:SystemsSegmentMember
2018-07-01
2018-09-29
0001039399
us-gaap:TransferredOverTimeMember
2018-07-01
2018-09-29
0001039399
form:ProbeCardsSegmentMember
us-gaap:TransferredOverTimeMember
2018-07-01
2018-09-29
0001039399
country:KR
2018-07-01
2018-09-29
0001039399
form:RestOfTheWorldMember
form:ProbeCardsSegmentMember
2018-07-01
2018-09-29
0001039399
country:KR
form:SystemsSegmentMember
2019-06-30
2019-09-28
0001039399
country:KR
form:ProbeCardsSegmentMember
2018-07-01
2018-09-29
0001039399
country:TW
form:ProbeCardsSegmentMember
2019-06-30
2019-09-28
0001039399
country:US
form:SystemsSegmentMember
2018-07-01
2018-09-29
0001039399
form:SystemsProductGroupMember
2018-07-01
2018-09-29
0001039399
country:KR
2019-06-30
2019-09-28
0001039399
form:ProbeCardsSegmentMember
us-gaap:TransferredAtPointInTimeMember
2018-07-01
2018-09-29
0001039399
form:RestOfTheWorldMember
form:SystemsSegmentMember
2019-06-30
2019-09-28
0001039399
form:DRAMProductGroupMember
form:SystemsSegmentMember
2019-06-30
2019-09-28
0001039399
srt:AsiaPacificMember
form:ProbeCardsSegmentMember
2019-06-30
2019-09-28
0001039399
form:SystemsProductGroupMember
form:ProbeCardsSegmentMember
2019-06-30
2019-09-28
0001039399
srt:AsiaPacificMember
2019-06-30
2019-09-28
0001039399
form:DRAMProductGroupMember
form:ProbeCardsSegmentMember
2018-07-01
2018-09-29
0001039399
country:TW
form:SystemsSegmentMember
2018-07-01
2018-09-29
0001039399
srt:EuropeMember
form:SystemsSegmentMember
2019-06-30
2019-09-28
0001039399
form:DRAMProductGroupMember
2018-07-01
2018-09-29
0001039399
form:SystemsSegmentMember
us-gaap:TransferredAtPointInTimeMember
2019-06-30
2019-09-28
0001039399
form:ProbeCardsSegmentMember
us-gaap:TransferredAtPointInTimeMember
2019-06-30
2019-09-28
0001039399
form:FlashProductGroupMember
form:ProbeCardsSegmentMember
2018-07-01
2018-09-29
0001039399
form:FoundryLogicProductGroupMember
2018-07-01
2018-09-29
0001039399
form:FlashProductGroupMember
form:ProbeCardsSegmentMember
2019-06-30
2019-09-28
0001039399
form:DRAMProductGroupMember
2019-06-30
2019-09-28
0001039399
form:DRAMProductGroupMember
form:ProbeCardsSegmentMember
2019-06-30
2019-09-28
0001039399
form:FoundryLogicProductGroupMember
form:ProbeCardsSegmentMember
2018-07-01
2018-09-29
0001039399
form:RestOfTheWorldMember
2019-06-30
2019-09-28
0001039399
form:RestOfTheWorldMember
form:SystemsSegmentMember
2018-07-01
2018-09-29
0001039399
form:SystemsSegmentMember
us-gaap:TransferredOverTimeMember
2018-07-01
2018-09-29
0001039399
form:ProbeCardsSegmentMember
us-gaap:TransferredOverTimeMember
2019-06-30
2019-09-28
0001039399
us-gaap:TransferredAtPointInTimeMember
2018-07-01
2018-09-29
0001039399
country:JP
form:SystemsSegmentMember
2019-06-30
2019-09-28
0001039399
form:FoundryLogicProductGroupMember
2019-06-30
2019-09-28
0001039399
srt:AsiaPacificMember
form:ProbeCardsSegmentMember
2018-07-01
2018-09-29
0001039399
us-gaap:TransferredAtPointInTimeMember
2019-06-30
2019-09-28
0001039399
form:FlashProductGroupMember
form:SystemsSegmentMember
2019-06-30
2019-09-28
0001039399
country:JP
form:SystemsSegmentMember
2018-07-01
2018-09-29
0001039399
us-gaap:CorporateAndOtherMember
2018-07-01
2018-09-29
0001039399
us-gaap:OperatingSegmentsMember
form:ProbeCardsSegmentMember
2019-06-30
2019-09-28
0001039399
us-gaap:OperatingSegmentsMember
form:SystemsSegmentMember
2019-06-30
2019-09-28
0001039399
us-gaap:OperatingSegmentsMember
form:SystemsSegmentMember
2018-07-01
2018-09-29
0001039399
us-gaap:CorporateAndOtherMember
2019-06-30
2019-09-28
0001039399
us-gaap:OperatingSegmentsMember
form:ProbeCardsSegmentMember
2018-07-01
2018-09-29
0001039399
form:FRTGmbHMember
us-gaap:SubsequentEventMember
2019-10-09
0001039399
form:FRTGmbHMember
us-gaap:SubsequentEventMember
2019-10-09
2019-10-09
0001039399
us-gaap:SubsequentEventMember
form:EuroInterbankOfferedRateMember
2019-10-25
0001039399
us-gaap:SubsequentEventMember
2019-10-25
0001039399
us-gaap:SubsequentEventMember
2019-10-25
2019-10-25
0001039399
form:FRTGmbHMember
us-gaap:SellingGeneralAndAdministrativeExpensesMember
2019-09-28
iso4217:TWD
xbrli:pure
xbrli:shares
iso4217:USD
xbrli:shares
iso4217:USD
form:segment
iso4217:EUR
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark one)
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 28, 2019
Or
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: 000-50307
FormFactor, Inc.
(Exact name of registrant as specified in its charter)
|
| | |
Delaware | | 13-3711155 |
(State or other jurisdiction of incorporation or organization) | | (I.R.S. Employer Identification No.) |
7005 Southfront Road, Livermore, California 94551
(Address of principal executive offices, including zip code)
(925) 290-4000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section12(b) of the Act:
|
| | | | | | |
| Title of each class | | | Trading Symbol(s) | | Name of each exchange on which registered |
| Common stock, $0.001 par value | | | FORM | | NASDAQ Global Market |
______________________________________
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of the Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
|
| | | |
Large Accelerated Filer | ☒ | Accelerated Filer | ☐ |
| | | |
Non-accelerated Filer | ☐ | Smaller Reporting Company | ☐ |
(Do not check if a smaller reporting company) | |
Emerging Growth Company | ☐ | | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of October 31, 2019, 75,699,945 shares of the registrant’s common stock, par value $0.001 per share, were outstanding.
FORMFACTOR, INC. FORM 10-Q FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 28, 2019 INDEX
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
FORMFACTOR, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) (Unaudited) |
| | | | | | | |
| September 28, 2019 | | December 29, 2018 |
ASSETS | |
| | |
Current assets: | |
| | |
|
Cash and cash equivalents | $ | 122,946 |
| | $ | 98,472 |
|
Marketable securities | 77,025 |
| | 50,531 |
|
Accounts receivable, net of allowance for doubtful accounts of $194 and $185 | 84,750 |
| | 95,333 |
|
Inventories, net | 85,989 |
| | 77,706 |
|
Restricted cash | 765 |
| | 849 |
|
Refundable income taxes | 478 |
| | 1,260 |
|
Prepaid expenses and other current assets | 17,834 |
| | 13,669 |
|
Total current assets | 389,787 |
| | 337,820 |
|
Restricted cash | 1,029 |
| | 1,225 |
|
Operating lease, right-of-use-assets | 32,300 |
| | — |
|
Property, plant and equipment, net of accumulated depreciation of $268,486 and $263,102 | 56,240 |
| | 54,054 |
|
Goodwill | 188,559 |
| | 189,214 |
|
Intangibles, net | 47,054 |
| | 67,640 |
|
Deferred tax assets | 77,274 |
| | 77,301 |
|
Other assets | 1,362 |
| | 968 |
|
Total assets | $ | 793,605 |
| | $ | 728,222 |
|
| | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| | |
Current liabilities: | |
| | |
Accounts payable | $ | 50,968 |
| | $ | 40,006 |
|
Accrued liabilities | 30,015 |
| | 27,731 |
|
Current portion of term loan, net of unamortized issuance cost of $57 and $160 | 46,193 |
| | 29,840 |
|
Deferred revenue | 8,315 |
| | 4,941 |
|
Operating lease liabilities | 6,416 |
| | — |
|
Total current liabilities | 141,907 |
| | 102,518 |
|
Term loan, less current portion, net of unamortized issuance cost of $0 and $29 | — |
| | 34,971 |
|
Deferred tax liabilities | 2,244 |
| | 2,355 |
|
Long-term operating lease liabilities | 30,074 |
| | — |
|
Other liabilities | 4,834 |
| | 8,214 |
|
Total liabilities | 179,059 |
| | 148,058 |
|
| |
| | |
Stockholders’ equity: | |
| | |
Preferred stock, $0.001 par value: | |
| | |
10,000,000 shares authorized; no shares issued and outstanding | — |
| | — |
|
Common stock, $0.001 par value: | |
| | |
250,000,000 shares authorized; 75,696,234 and 74,139,712 shares issued and outstanding | 76 |
| | 74 |
|
Additional paid-in capital | 879,527 |
| | 862,897 |
|
Accumulated other comprehensive income (loss) | (2,180 | ) | | 780 |
|
Accumulated deficit | (262,877 | ) | | (283,587 | ) |
Total stockholders’ equity | 614,546 |
| | 580,164 |
|
Total liabilities and stockholders’ equity | $ | 793,605 |
| | $ | 728,222 |
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
FORMFACTOR, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited) |
| | | | | | | | | | | | | | | |
| Three Months Ended | | Nine Months Ended |
| September 28, 2019 | | September 29, 2018 | | September 28, 2019 | | September 29, 2018 |
Revenues | $ | 140,604 |
| | $ | 134,989 |
| | $ | 410,835 |
| | $ | 388,788 |
|
Cost of revenues | 85,286 |
| | 82,019 |
| | 247,644 |
| | 234,471 |
|
Gross profit | 55,318 |
| | 52,970 |
| | 163,191 |
| | 154,317 |
|
Operating expenses: | |
| | |
| | |
| | |
|
Research and development | 20,096 |
| | 18,857 |
| | 59,893 |
| | 56,578 |
|
Selling, general and administrative | 25,887 |
| | 24,745 |
| | 77,354 |
| | 73,426 |
|
Total operating expenses | 45,983 |
| | 43,602 |
| | 137,247 |
| | 130,004 |
|
Operating income | 9,335 |
| | 9,368 |
| | 25,944 |
| | 24,313 |
|
Interest income | 724 |
| | 369 |
| | 1,988 |
| | 952 |
|
Interest expense | (422 | ) | | (777 | ) | | (1,539 | ) | | (2,654 | ) |
Other income (expense), net | 226 |
| | 121 |
| | 223 |
| | (341 | ) |
Income before income taxes | 9,863 |
| | 9,081 |
| | 26,616 |
| | 22,270 |
|
Provision for income taxes | 1,584 |
| | 1,393 |
| | 5,906 |
| | 3,334 |
|
Net income | $ | 8,279 |
| | $ | 7,688 |
| | $ | 20,710 |
| | $ | 18,936 |
|
Net income per share: | |
| | | | | | |
Basic | $ | 0.11 |
| | $ | 0.10 |
| | $ | 0.28 |
| | $ | 0.26 |
|
Diluted | $ | 0.11 |
| | $ | 0.10 |
| | $ | 0.27 |
| | $ | 0.25 |
|
Weighted-average number of shares used in per share calculations: | |
| | |
| | | | |
|
Basic | 75,280 |
| | 73,837 |
| | 74,749 |
| | 73,273 |
|
Diluted | 77,291 |
| | 74,962 |
| | 76,763 |
| | 74,628 |
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
FORMFACTOR, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) (Unaudited) |
| | | | | | | | | | | | | | | |
| Three Months Ended | | Nine Months Ended |
| September 28, 2019 | | September 29, 2018 | | September 28, 2019 | | September 29, 2018 |
Net income | $ | 8,279 |
| | $ | 7,688 |
| | $ | 20,710 |
| | $ | 18,936 |
|
Other comprehensive loss, net of tax: | | | | | | | |
Translation adjustments and other | (1,814 | ) | | (449 | ) | | (2,042 | ) | | (1,732 | ) |
Unrealized gains (losses) on available-for-sale marketable securities | 11 |
| | 50 |
| | 304 |
| | (84 | ) |
Unrealized losses on derivative instruments | (536 | ) | | (134 | ) | | (1,222 | ) | | (47 | ) |
Other comprehensive loss, net of tax | (2,339 | ) | | (533 | ) | | (2,960 | ) | | (1,863 | ) |
Comprehensive income | $ | 5,940 |
| | $ | 7,155 |
| | $ | 17,750 |
| | $ | 17,073 |
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
FORMFACTOR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(In thousands, except shares)
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | |
| Shares | | Common Stock | | Additional Paid-in Capital | | Accumulated Other Comprehensive Income | | Accumulated Deficit | | Total |
| Nine Months Ended September 28, 2019 |
Balances, December 29, 2018 | 74,139,712 |
| | $ | 74 |
| | $ | 862,897 |
| | $ | 780 |
| | $ | (283,587 | ) | | $ | 580,164 |
|
Issuance of common stock under the Employee Stock Purchase Plan | 544,271 |
| | — |
| | 6,806 |
| | — |
| | — |
| | 6,806 |
|
Issuance of common stock pursuant to exercise of options for cash | 112,956 |
| | — |
| | 754 |
| | — |
| | — |
| | 754 |
|
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax | 899,295 |
| | 2 |
| | (7,898 | ) | | — |
| | — |
| | (7,896 | ) |
Stock-based compensation | — |
| | — |
| | 16,968 |
| | — |
| | — |
| | 16,968 |
|
Other comprehensive loss | — |
| | — |
| | — |
| | (2,960 | ) | | — |
| | (2,960 | ) |
Net income | — |
| | — |
| | — |
| | — |
| | 20,710 |
| | 20,710 |
|
Balances, September 28, 2019 | 75,696,234 |
| | $ | 76 |
| | $ | 879,527 |
| | $ | (2,180 | ) | | $ | (262,877 | ) | | $ | 614,546 |
|
| | | | | | | | | | | |
| Three Months Ended September 28, 2019 |
Balances, June 29, 2019 | 74,691,781 |
| | $ | 75 |
| | $ | 875,024 |
| | $ | 159 |
| | $ | (271,156 | ) | | $ | 604,102 |
|
Issuance of common stock under the Employee Stock Purchase Plan | 242,774 |
| | — |
| | 3,136 |
| | — |
| | — |
| | 3,136 |
|
Issuance of common stock pursuant to exercise of options for cash | 93,749 |
| | — |
| | 664 |
| | — |
| | — |
| | 664 |
|
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax | 667,930 |
| | 1 |
| | (5,741 | ) | | — |
| | — |
| | (5,740 | ) |
Stock-based compensation | — |
| | — |
| | 6,444 |
| | — |
| | — |
| | 6,444 |
|
Other comprehensive income | — |
| | — |
| | — |
| | (2,339 | ) | | — |
| | (2,339 | ) |
Net income | — |
| | — |
| | — |
| | — |
| | 8,279 |
| | 8,279 |
|
Balances, September 28, 2019 | 75,696,234 |
| | $ | 76 |
| | $ | 879,527 |
| | $ | (2,180 | ) | | $ | (262,877 | ) | | $ | 614,546 |
|
|
| | | | | | | | | | | | | | | | | | | | | | |
| Nine Months Ended September 29, 2018 |
Balances, December 30, 2017 | 72,532,176 |
| | $ | 73 |
| | $ | 843,116 |
| | $ | 3,021 |
| | $ | (387,573 | ) | | $ | 458,637 |
|
Issuance of common stock under the Employee Stock Purchase Plan | 610,297 |
| | 1 |
| | 6,661 |
| | — |
| | — |
| | 6,662 |
|
Issuance of common stock pursuant to exercise of options for cash | 105,610 |
| | — |
| | 1,049 |
| | — |
| | — |
| | 1,049 |
|
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax | 853,540 |
| | 1 |
| | (5,694 | ) | | — |
| | — |
| | (5,693 | ) |
Stock-based compensation | — |
| | — |
| | 12,373 |
| | — |
| | — |
| | 12,373 |
|
Adoption of ASU 2017-12 | — |
| | — |
| | — |
| | — |
| | (50 | ) | | (50 | ) |
Other comprehensive loss | — |
| | — |
| | — |
| | (1,863 | ) | | — |
| | (1,863 | ) |
Net income | — |
| | — |
| | — |
| | — |
| | 18,936 |
| | 18,936 |
|
Balances, September 29, 2018 | 74,101,623 |
| | $ | 75 |
| | $ | 857,505 |
| | $ | 1,158 |
| | $ | (368,687 | ) | | $ | 490,051 |
|
| | | | | | | | | | | |
| Three Months Ended September 29, 2018 |
Balances, June 30, 2018 | 73,358,108 |
| | $ | 74 |
| | $ | 853,278 |
| | $ | 1,691 |
| | $ | (376,375 | ) | | $ | 478,668 |
|
Issuance of common stock under the Employee Stock Purchase Plan | 268,627 |
| | — |
| | 2,957 |
| | — |
| | — |
| | 2,957 |
|
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax | 474,888 |
| | 1 |
| | (3,241 | ) | | — |
| | — |
| | (3,240 | ) |
Stock-based compensation | — |
| | — |
| | 4,511 |
| | — |
| | — |
| | 4,511 |
|
Other comprehensive loss | — |
| | — |
| | — |
| | (533 | ) | | — |
| | (533 | ) |
Net income | — |
| | — |
| | — |
| | — |
| | 7,688 |
| | 7,688 |
|
Balances, September 29, 2018 | 74,101,623 |
| | $ | 75 |
| | $ | 857,505 |
| | $ | 1,158 |
| | $ | (368,687 | ) | | $ | 490,051 |
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
FORMFACTOR, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
| | | | | | | |
| Nine Months Ended |
| September 28, 2019 | | September 29, 2018 |
Cash flows from operating activities: | |
| | |
|
Net income | $ | 20,710 |
| | $ | 18,936 |
|
Adjustments to reconcile net income to net cash provided by operating activities: | | | |
|
Depreciation | 12,644 |
| | 10,494 |
|
Amortization | 20,248 |
| | 21,876 |
|
Amortization (accretion) of discount on investments | (291 | ) | | 21 |
|
Amortization of operating lease, right-of-use assets | 3,921 |
| | — |
|
Stock-based compensation expense | 17,088 |
| | 12,421 |
|
Amortization of debt issuance costs | 132 |
| | 333 |
|
Deferred income tax provision | 38 |
| | 70 |
|
Provision for excess and obsolete inventories | 8,046 |
| | 7,414 |
|
Loss on disposal of long-lived assets | 327 |
| | 264 |
|
Loss on derivative instruments | 132 |
| | — |
|
Foreign currency transaction (losses) gains | (186 | ) | | 409 |
|
Changes in assets and liabilities: | | | |
Accounts receivable | 10,580 |
| | (7,569 | ) |
Inventories | (17,246 | ) | | (21,806 | ) |
Prepaid expenses and other current assets | (4,509 | ) | | (1,874 | ) |
Refundable income taxes | 782 |
| | 933 |
|
Other assets | (595 | ) | | 697 |
|
Accounts payable | 10,074 |
| | 10,425 |
|
Accrued liabilities | (856 | ) | | (8,882 | ) |
Other liabilities | 2,374 |
| | 2,197 |
|
Deferred revenues | 3,625 |
| | (221 | ) |
Operating lease liabilities | (3,660 | ) | | — |
|
Net cash provided by operating activities | 83,378 |
| | 46,138 |
|
Cash flows from investing activities: | |
| | |
|
Acquisition of property, plant and equipment | (14,242 | ) | | (12,326 | ) |
Proceeds from sale of a subsidiary | 93 |
| | 67 |
|
Proceeds from sale of property, plant and equipment | — |
| | 23 |
|
Purchases of marketable securities | (59,602 | ) | | (18,984 | ) |
Proceeds from maturities and sales of marketable securities | 33,704 |
| | 17,757 |
|
Net cash used in investing activities | (40,047 | ) | | (13,463 | ) |
Cash flows from financing activities: | |
| | |
|
Proceeds from issuances of common stock | 7,672 |
| | 7,712 |
|
Tax withholdings related to net share settlements of equity awards | (7,898 | ) | | (5,694 | ) |
Principal repayments on term loan | (18,750 | ) | | (33,750 | ) |
Net cash used in financing activities | (18,976 | ) | | (31,732 | ) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (161 | ) | | (516 | ) |
Net increase in cash, cash equivalents and restricted cash | 24,194 |
| | 427 |
|
Cash, cash equivalents and restricted cash, beginning of period | 100,546 |
| | 92,726 |
|
Cash, cash equivalents and restricted cash, end of period | $ | 124,740 |
| | $ | 93,153 |
|
Non-cash investing and financing activities: | |
| | |
|
Change in accounts payable and accrued liabilities related to property, plant and equipment purchases | $ | 1,062 |
| | $ | 4,724 |
|
Operating lease, right-of-use assets obtained in exchange for lease obligations | 36,300 |
| | — |
|
Supplemental disclosure of cash flow information: | | | |
Cash paid for income taxes, net | $ | 2,875 |
| | $ | 2,513 |
|
Cash paid for interest | 1,128 |
| | 2,299 |
|
The accompanying notes are an integral part of these condensed consolidated financial statements.
FORMFACTOR, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1 — Basis of Presentation and New Accounting Pronouncements
Basis of Presentation
The accompanying condensed consolidated financial information of FormFactor, Inc. is unaudited and has been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission. However, such information reflects all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods. The financial information as of December 29, 2018 is derived from our 2018 Annual Report on Form 10-K. The condensed consolidated financial statements included herein should be read in conjunction with the consolidated financial statements and the notes thereto included in our 2018 Annual Report on Form 10-K. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year.
Fiscal Year
We operate on a 52/53 week fiscal year, whereby the fiscal year ends on the last Saturday of December. Fiscal 2019 and 2018 each contain 52 weeks and the nine months ended September 28, 2019 and September 29, 2018 each contained 39 weeks. Fiscal 2019 will end on December 28, 2019.
Reclassifications
Certain immaterial reclassifications were made to the prior period financial statements to conform to the current period presentation.
Critical Accounting Policies
Our critical accounting policies have not changed during the nine months ended September 28, 2019 from those disclosed in our Annual Report on Form 10-K for the year ended December 29, 2018.
New Accounting Pronouncements
ASU 2018-15
In August 2018, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update ("ASU") 2018-15, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." The new guidance clarifies the accounting for implementation costs in cloud computing arrangements. ASU 2018-15 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. ASU 2018-15 should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We have not yet determined the impact of this standard on our financial statements.
ASU 2016-02, ASU 2018-10, ASU 2018-11 and ASU 2019-01
In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which requires the recognition of right-of-use assets and lease liabilities for all long-term leases, including operating leases, on the balance sheet. ASU 2016-02 was amended in July 2018 by both ASU 2018-10, "Codification Improvements to Topic 842, Leases," and ASU 2018-11, "Leases (Topic 842): Targeted Improvements" and in March 2019 by ASU 2019-01, "Leases (Topic 842): Codification Improvements." ASU 2016-02 provides additional guidance on the measurement of the right-of-use assets and lease liabilities and requires enhanced disclosures about our leasing arrangements. We adopted Topic 842 and all related amendments on December 30, 2018, the first day of fiscal 2019, using the modified transition approach. The modified transition approach permits a company to use its effective date as the date of initial application to apply the standard to its leases, and, therefore, not restate comparative prior period financial information. Consequently, prior period financial information is not updated, and the disclosures required under the new standard will not be provided for dates and periods before December 30, 2018. The standard provides several optional practical expedients in transition. We elected the ‘package of practical expedients,’ which permits us to not reassess, under the new standard, our prior conclusions about lease identification, lease classification and initial direct costs. We did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us. The new standard also provides practical expedients for an entity’s ongoing accounting. We elected the short-term lease recognition exemption. This means, for those leases that qualify, we will not recognize a right-of-use asset or lease liability, and this includes not recognizing right-of-use assets or lease liabilities for existing short-term leases of those assets in transition. We also elected the practical expedient to not separate lease and non-lease components for all our leases. The adoption of the lease standard did not have any effect on our previously reported Condensed
Consolidated Statements of Income and did not result in a cumulative catch-up adjustment to opening equity. See Note 12 for additional information.
Note 2 — Concentration of Credit and Other Risks
Each of the following customers accounted for 10% or more of our revenues for the periods indicated:
|
| | | | | | | | | | | |
| Three Months Ended | | Nine Months Ended |
| September 28, 2019 | | September 29, 2018 | | September 28, 2019 | | September 29, 2018 |
Intel Corporation | 23.9 | % | | 24.5 | % | | 23.8 | % | | 18.0 | % |
SK Hynix Inc. | 13.5 |
| | * |
| | 10.6 |
| | 10.2 |
|
Micron Technology, Inc. | 11.9 |
| | 12.0 |
| | * |
| | 10.1 |
|
Samsung Electronics., LTD. | * |
| | * |
| | 10.0 |
| | * |
|
| 49.3 | % | | 36.5 | % | | 44.4 | % | | 38.3 | % |
*Represents less than 10% of total revenues.
At September 28, 2019, two customers accounted for 18.8% and 17.4% of gross accounts receivable, respectively. At December 29, 2018, two customers accounted for 27.8% and 13.0% of gross accounts receivable, respectively.
Note 3 — Inventories, net
Inventories are stated at the lower of cost (principally standard cost, which approximates actual cost on a first in, first out basis) or net realizable value.
Inventories, net, consisted of the following (in thousands):
|
| | | | | | | |
| September 28, 2019 | | December 29, 2018 |
Raw materials | $ | 39,395 |
| | $ | 43,380 |
|
Work-in-progress | 31,486 |
| | 20,431 |
|
Finished goods | 15,108 |
| | 13,895 |
|
| $ | 85,989 |
| | $ | 77,706 |
|
Note 4 — Goodwill and Intangible Assets
Goodwill by reportable segment was as follows (in thousands):
|
| | | | | | | | | | | |
| Probe Cards | | Systems | | Total |
Goodwill, gross, as of December 30, 2017 | $ | 172,482 |
| | $ | 17,438 |
| | $ | 189,920 |
|
Foreign currency translation | — |
| | (706 | ) | | (706 | ) |
Goodwill, gross, as of December 29, 2018 | 172,482 |
| | 16,732 |
| | 189,214 |
|
Foreign currency translation | — |
| | (655 | ) | | (655 | ) |
Goodwill, gross, as of September 28, 2019 | $ | 172,482 |
| | $ | 16,077 |
| | $ | 188,559 |
|
We have not recorded any goodwill impairments in the nine months ended September 28, 2019.
Intangible assets were as follows (in thousands):
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | September 28, 2019 | | December 29, 2018 |
Other Intangible Assets | | Gross | | Accumulated Amortization | | Net | | Gross | | Accumulated Amortization | | Net |
Existing developed technologies | | $ | 142,890 |
| | $ | 110,943 |
| | $ | 31,947 |
| | $ | 143,408 |
| | $ | 97,111 |
| | $ | 46,297 |
|
Trade name | | 7,576 |
| | 6,893 |
| | 683 |
| | 12,023 |
| | 9,173 |
| | 2,850 |
|
Customer relationships | | 39,990 |
| | 25,566 |
| | 14,424 |
| | 40,146 |
| | 21,653 |
| | 18,493 |
|
| | $ | 190,456 |
| | $ | 143,402 |
| | $ | 47,054 |
| | $ | 195,577 |
| | $ | 127,937 |
| | $ | 67,640 |
|
In the current quarter we disposed of certain fully amortized trade names.
Amortization expense was included in our Condensed Consolidated Statements of Income as follows (in thousands):
|
| | | | | | | | | | | | | | | |
| Three Months Ended | | Nine Months Ended |
| September 28, 2019 | | September 29, 2018 | | September 28, 2019 | | September 29, 2018 |
Cost of revenues | $ | 4,707 |
| | $ | 5,123 |
| | $ | 14,137 |
| | $ | 15,418 |
|
Selling, general and administrative | 1,372 |
| | 2,389 |
| | 6,111 |
| | 6,458 |
|
| $ | 6,079 |
| | $ | 7,512 |
| | $ | 20,248 |
| | $ | 21,876 |
|
The estimated future amortization of intangible assets is as follows (in thousands):
|
| | | |
Fiscal Year | Amount |
Remainder of 2019 | $ | 6,065 |
|
2020 | 23,243 |
|
2021 | 12,546 |
|
2022 | 3,467 |
|
2023 | 1,733 |
|
| $ | 47,054 |
|
Note 5 — Accrued Liabilities
Accrued liabilities consisted of the following (in thousands):
|
| | | | | | | |
| September 28, 2019 | | December 29, 2018 |
Accrued compensation and benefits | $ | 15,640 |
| | $ | 15,600 |
|
Accrued employee stock purchase plan contributions withheld | 1,431 |
| | 3,174 |
|
Accrued warranty | 1,793 |
| | 2,102 |
|
Accrued income and other taxes | 7,218 |
| | 4,222 |
|
Other accrued expenses | 3,933 |
| | 2,633 |
|
| $ | 30,015 |
| | $ | 27,731 |
|
Note 6 — Restructuring Charges
Restructuring charges in the first nine months of fiscal 2019 consisted of costs related to employee termination benefits, cost of long-lived asset abandonment and inventory write downs.
Restructuring charges were included in our Condensed Consolidated Statement of Income as follows (in thousands):
|
| | | | | | | | | | | | | | | |
| Three Months Ended | | Nine Months Ended |
| September 28, 2019 | | September 29, 2018 | | September 28, 2019 | | September 29, 2018 |
Cost of revenues | $ | — |
| | $ | — |
| | $ | 258 |
| | $ | — |
|
Selling, general and administrative | 22 |
| | — |
| | 199 |
| | — |
|
| $ | 22 |
| | $ | — |
| | $ | 457 |
| | $ | — |
|
Changes to the restructuring accrual in the nine months ended September 28, 2019 were as follows (in thousands):
|
| | | | | | | | | | | |
| Employee Severance and Benefits | | Other Costs | | Total Accrual |
December 29, 2018 | $ | 20 |
| | $ | — |
| | $ | 20 |
|
Restructuring charges | 184 |
| | 273 |
| | 457 |
|
Cash payments | (128 | ) | | — |
| | (128 | ) |
Non-cash settlement | — |
| | (273 | ) | | (273 | ) |
September 28, 2019 | $ | 76 |
| | $ | — |
| | $ | 76 |
|
Note 7 — Fair Value and Derivative Instruments
Whenever possible, the fair values of our financial assets and liabilities are determined using quoted market prices of identical securities or quoted market prices of similar securities from active markets. The three levels of inputs that may be used to measure fair value are as follows:
| |
• | Level 1 valuations are obtained from real-time quotes for transactions in active exchange markets involving identical securities; |
| |
• | Level 2 valuations utilize significant observable inputs, such as quoted prices for similar assets or liabilities, quoted prices near the reporting date in markets that are less active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and |
| |
• | Level 3 valuations utilize unobservable inputs to the valuation methodology and include our own data about assumptions market participants would use in pricing the asset or liability based on the best information available under the circumstances. |
We did not have any transfers of assets or liabilities measured at fair value on a recurring basis to or from Level 1, Level 2 or Level 3 during the three and nine months ended September 28, 2019 or the year ended December 29, 2018.
The carrying values of Cash, Accounts receivable, net, Restricted cash, Prepaid expenses and other current assets, Accounts payable, Accrued liabilities, and Term loan approximate fair value due to their short maturities.
No changes were made to our valuation techniques during the first nine months of fiscal 2019.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets and liabilities measured at fair value on a recurring basis were as follows (in thousands):
|
| | | | | | | | | | | | |
September 28, 2019 | | Level 1 | | Level 2 | | Total |
Assets: | | | | | | |
Cash equivalents: | | | | | | |
Money market funds | | $ | 959 |
| | $ | — |
| | $ | 959 |
|
Marketable securities: | |
| |
| |
|
U.S. treasuries | | 31,832 |
| | — |
| | 31,832 |
|
Certificates of deposit | | — |
| | 3,648 |
| | 3,648 |
|
U.S. agency securities | | — |
| | 3,088 |
| | 3,088 |
|
Corporate bonds | | — |
| | 33,737 |
| | 33,737 |
|
Commercial paper | < |