form-20210925
False0001039399December 252021Q33100010393992020-12-272021-09-25xbrli:shares00010393992021-10-28iso4217:USD00010393992021-09-2500010393992020-12-26iso4217:USDxbrli:shares00010393992021-06-272021-09-2500010393992020-06-282020-09-2600010393992019-12-292020-09-260001039399us-gaap:CommonStockMember2020-12-260001039399us-gaap:AdditionalPaidInCapitalMember2020-12-260001039399us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-260001039399us-gaap:RetainedEarningsMember2020-12-260001039399us-gaap:CommonStockMember2020-12-272021-09-250001039399us-gaap:AdditionalPaidInCapitalMember2020-12-272021-09-250001039399us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-272021-09-250001039399us-gaap:RetainedEarningsMember2020-12-272021-09-250001039399us-gaap:CommonStockMember2021-09-250001039399us-gaap:AdditionalPaidInCapitalMember2021-09-250001039399us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-250001039399us-gaap:RetainedEarningsMember2021-09-250001039399us-gaap:CommonStockMember2021-06-260001039399us-gaap:AdditionalPaidInCapitalMember2021-06-260001039399us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-260001039399us-gaap:RetainedEarningsMember2021-06-2600010393992021-06-260001039399us-gaap:CommonStockMember2021-06-272021-09-250001039399us-gaap:AdditionalPaidInCapitalMember2021-06-272021-09-250001039399us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-272021-09-250001039399us-gaap:RetainedEarningsMember2021-06-272021-09-250001039399us-gaap:CommonStockMember2019-12-280001039399us-gaap:AdditionalPaidInCapitalMember2019-12-280001039399us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-280001039399us-gaap:RetainedEarningsMember2019-12-2800010393992019-12-280001039399us-gaap:CommonStockMember2019-12-292020-09-260001039399us-gaap:AdditionalPaidInCapitalMember2019-12-292020-09-260001039399us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-292020-09-260001039399us-gaap:RetainedEarningsMember2019-12-292020-09-260001039399us-gaap:CommonStockMember2020-09-260001039399us-gaap:AdditionalPaidInCapitalMember2020-09-260001039399us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-260001039399us-gaap:RetainedEarningsMember2020-09-2600010393992020-09-260001039399us-gaap:CommonStockMember2020-06-270001039399us-gaap:AdditionalPaidInCapitalMember2020-06-270001039399us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-270001039399us-gaap:RetainedEarningsMember2020-06-2700010393992020-06-270001039399us-gaap:CommonStockMember2020-06-282020-09-260001039399us-gaap:AdditionalPaidInCapitalMember2020-06-282020-09-260001039399us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-282020-09-260001039399us-gaap:RetainedEarningsMember2020-06-282020-09-26xbrli:pure0001039399us-gaap:RevenueFromContractWithCustomerMemberform:IntelMemberus-gaap:CustomerConcentrationRiskMember2021-06-272021-09-250001039399us-gaap:RevenueFromContractWithCustomerMemberform:IntelMemberus-gaap:CustomerConcentrationRiskMember2020-06-282020-09-260001039399us-gaap:RevenueFromContractWithCustomerMemberform:IntelMemberus-gaap:CustomerConcentrationRiskMember2020-12-272021-09-250001039399us-gaap:RevenueFromContractWithCustomerMemberform:IntelMemberus-gaap:CustomerConcentrationRiskMember2019-12-292020-09-260001039399us-gaap:RevenueFromContractWithCustomerMemberform:SamsungMemberus-gaap:CustomerConcentrationRiskMember2021-06-272021-09-250001039399us-gaap:RevenueFromContractWithCustomerMemberform:SamsungMemberus-gaap:CustomerConcentrationRiskMember2020-06-282020-09-260001039399us-gaap:RevenueFromContractWithCustomerMemberform:SamsungMemberus-gaap:CustomerConcentrationRiskMember2020-12-272021-09-250001039399us-gaap:RevenueFromContractWithCustomerMemberform:TaiwanSemiconductorManufacturingCoLTDMemberus-gaap:CustomerConcentrationRiskMember2020-06-282020-09-260001039399us-gaap:RevenueFromContractWithCustomerMemberform:MicronMemberus-gaap:CustomerConcentrationRiskMember2020-06-282020-09-260001039399us-gaap:RevenueFromContractWithCustomerMemberform:CustomersRepresenting10OrMoreOfTotalRevenuesMemberus-gaap:CustomerConcentrationRiskMember2021-06-272021-09-250001039399us-gaap:RevenueFromContractWithCustomerMemberform:CustomersRepresenting10OrMoreOfTotalRevenuesMemberus-gaap:CustomerConcentrationRiskMember2020-06-282020-09-260001039399us-gaap:RevenueFromContractWithCustomerMemberform:CustomersRepresenting10OrMoreOfTotalRevenuesMemberus-gaap:CustomerConcentrationRiskMember2020-12-272021-09-250001039399us-gaap:RevenueFromContractWithCustomerMemberform:CustomersRepresenting10OrMoreOfTotalRevenuesMemberus-gaap:CustomerConcentrationRiskMember2019-12-292020-09-260001039399us-gaap:AccountsReceivableMemberform:MajorCustomer1Memberus-gaap:CustomerConcentrationRiskMember2020-12-272021-09-250001039399us-gaap:AccountsReceivableMemberform:MajorCustomer1Memberus-gaap:CustomerConcentrationRiskMember2019-12-292020-12-260001039399us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMemberform:MajorCustomer2Member2019-12-292020-12-260001039399form:HighPrecisionDevicesIncMember2020-10-192020-10-190001039399form:HighPrecisionDevicesIncMember2020-10-190001039399form:HighPrecisionDevicesIncMemberus-gaap:DevelopedTechnologyRightsMember2020-10-190001039399form:HighPrecisionDevicesIncMemberus-gaap:DevelopedTechnologyRightsMember2020-10-192020-10-190001039399form:HighPrecisionDevicesIncMemberus-gaap:CustomerRelationshipsMember2020-10-190001039399form:HighPrecisionDevicesIncMemberus-gaap:CustomerRelationshipsMember2020-10-192020-10-190001039399form:HighPrecisionDevicesIncMemberus-gaap:OrderOrProductionBacklogMember2020-10-190001039399form:HighPrecisionDevicesIncMemberus-gaap:OrderOrProductionBacklogMember2020-10-192020-10-190001039399us-gaap:TradeNamesMemberform:HighPrecisionDevicesIncMember2020-10-190001039399us-gaap:TradeNamesMemberform:HighPrecisionDevicesIncMember2020-10-192020-10-190001039399form:BaldwinParkMember2020-07-302020-07-300001039399form:BaldwinParkMember2020-07-300001039399form:BaldwinParkMemberus-gaap:DevelopedTechnologyRightsMember2020-07-300001039399form:BaldwinParkMemberus-gaap:DevelopedTechnologyRightsMember2020-07-302020-07-300001039399form:BaldwinParkMemberus-gaap:CustomerRelationshipsMember2020-07-300001039399form:BaldwinParkMemberus-gaap:CustomerRelationshipsMember2020-07-302020-07-300001039399us-gaap:InProcessResearchAndDevelopmentMemberform:BaldwinParkMember2020-07-300001039399form:ProbeCardsSegmentMember2019-12-280001039399form:SystemsSegmentMember2019-12-280001039399form:FRTGmbHMemberform:ProbeCardsSegmentMember2019-12-292020-12-260001039399form:FRTGmbHMemberform:SystemsSegmentMember2019-12-292020-12-260001039399form:FRTGmbHMember2019-12-292020-12-260001039399form:BaldwinParkMemberform:ProbeCardsSegmentMember2019-12-292020-12-260001039399form:BaldwinParkMemberform:SystemsSegmentMember2019-12-292020-12-260001039399form:BaldwinParkMember2019-12-292020-12-260001039399form:HighPrecisionDevicesIncMemberform:ProbeCardsSegmentMember2019-12-292020-12-260001039399form:HighPrecisionDevicesIncMemberform:SystemsSegmentMember2019-12-292020-12-260001039399form:HighPrecisionDevicesIncMember2019-12-292020-12-260001039399form:ProbeCardsSegmentMember2019-12-292020-12-260001039399form:SystemsSegmentMember2019-12-292020-12-2600010393992019-12-292020-12-260001039399form:ProbeCardsSegmentMember2020-12-260001039399form:SystemsSegmentMember2020-12-260001039399form:BaldwinParkMemberform:ProbeCardsSegmentMember2020-12-272021-09-250001039399form:BaldwinParkMemberform:SystemsSegmentMember2020-12-272021-09-250001039399form:BaldwinParkMember2020-12-272021-09-250001039399form:HighPrecisionDevicesIncMemberform:ProbeCardsSegmentMember2020-12-272021-09-250001039399form:HighPrecisionDevicesIncMemberform:SystemsSegmentMember2020-12-272021-09-250001039399form:HighPrecisionDevicesIncMember2020-12-272021-09-250001039399form:ProbeCardsSegmentMember2020-12-272021-09-250001039399form:SystemsSegmentMember2020-12-272021-09-250001039399form:ProbeCardsSegmentMember2021-09-250001039399form:SystemsSegmentMember2021-09-250001039399form:ExistingDevelopedTechnologiesMember2021-09-250001039399form:ExistingDevelopedTechnologiesMember2020-12-260001039399us-gaap:CustomerRelationshipsMember2021-09-250001039399us-gaap:CustomerRelationshipsMember2020-12-260001039399us-gaap:TradeNamesMember2021-09-250001039399us-gaap:TradeNamesMember2020-12-260001039399us-gaap:OrderOrProductionBacklogMember2021-09-250001039399us-gaap:OrderOrProductionBacklogMember2020-12-260001039399us-gaap:InProcessResearchAndDevelopmentMember2021-09-250001039399us-gaap:InProcessResearchAndDevelopmentMember2020-12-260001039399us-gaap:CostOfSalesMember2021-06-272021-09-250001039399us-gaap:CostOfSalesMember2020-06-282020-09-260001039399us-gaap:CostOfSalesMember2020-12-272021-09-250001039399us-gaap:CostOfSalesMember2019-12-292020-09-260001039399us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-06-272021-09-250001039399us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-06-282020-09-260001039399us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-12-272021-09-250001039399us-gaap:SellingGeneralAndAdministrativeExpensesMember2019-12-292020-09-260001039399srt:MinimumMember2021-09-250001039399srt:MaximumMember2021-09-250001039399us-gaap:EmployeeSeveranceMembersrt:MinimumMember2021-09-250001039399us-gaap:EmployeeSeveranceMembersrt:MaximumMember2021-09-250001039399us-gaap:ContractTerminationMembersrt:MinimumMember2021-09-250001039399us-gaap:ContractTerminationMembersrt:MaximumMember2021-09-250001039399form:InventoryImpairmentsMembersrt:MinimumMember2021-09-250001039399form:InventoryImpairmentsMembersrt:MaximumMember2021-09-250001039399us-gaap:OtherRestructuringMembersrt:MinimumMember2021-09-250001039399srt:MaximumMemberus-gaap:OtherRestructuringMember2021-09-250001039399form:ProbeCardsSegmentMembersrt:MinimumMember2021-09-250001039399srt:MaximumMemberform:ProbeCardsSegmentMember2021-09-250001039399form:SystemsSegmentMembersrt:MinimumMember2021-09-250001039399srt:MaximumMemberform:SystemsSegmentMember2021-09-250001039399us-gaap:CostOfSalesMemberform:ProbeCardsSegmentMember2021-06-272021-09-250001039399us-gaap:CostOfSalesMemberform:SystemsSegmentMember2021-06-272021-09-250001039399us-gaap:CostOfSalesMemberform:ProbeCardsSegmentMember2020-12-272021-09-250001039399us-gaap:CostOfSalesMemberform:SystemsSegmentMember2020-12-272021-09-250001039399form:ProbeCardsSegmentMemberus-gaap:ResearchAndDevelopmentExpenseMember2021-06-272021-09-250001039399form:SystemsSegmentMemberus-gaap:ResearchAndDevelopmentExpenseMember2021-06-272021-09-250001039399us-gaap:ResearchAndDevelopmentExpenseMember2021-06-272021-09-250001039399form:ProbeCardsSegmentMemberus-gaap:ResearchAndDevelopmentExpenseMember2020-12-272021-09-250001039399form:SystemsSegmentMemberus-gaap:ResearchAndDevelopmentExpenseMember2020-12-272021-09-250001039399us-gaap:ResearchAndDevelopmentExpenseMember2020-12-272021-09-250001039399us-gaap:SellingGeneralAndAdministrativeExpensesMemberform:ProbeCardsSegmentMember2021-06-272021-09-250001039399us-gaap:SellingGeneralAndAdministrativeExpensesMemberform:SystemsSegmentMember2021-06-272021-09-250001039399us-gaap:SellingGeneralAndAdministrativeExpensesMemberform:ProbeCardsSegmentMember2020-12-272021-09-250001039399us-gaap:SellingGeneralAndAdministrativeExpensesMemberform:SystemsSegmentMember2020-12-272021-09-250001039399form:ProbeCardsSegmentMember2021-06-272021-09-250001039399form:SystemsSegmentMember2021-06-272021-09-250001039399us-gaap:EmployeeSeveranceMember2020-12-260001039399form:InventoryImpairmentsMember2020-12-260001039399form:PropertyAndEquipmentImpairmentsMember2020-12-260001039399us-gaap:ContractTerminationMember2020-12-260001039399us-gaap:EmployeeSeveranceMember2020-12-272021-09-250001039399form:InventoryImpairmentsMember2020-12-272021-09-250001039399form:PropertyAndEquipmentImpairmentsMember2020-12-272021-09-250001039399us-gaap:ContractTerminationMember2020-12-272021-09-250001039399us-gaap:EmployeeSeveranceMember2021-09-250001039399form:InventoryImpairmentsMember2021-09-250001039399form:PropertyAndEquipmentImpairmentsMember2021-09-250001039399us-gaap:ContractTerminationMember2021-09-250001039399us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2021-09-250001039399us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2021-09-250001039399us-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2021-09-250001039399us-gaap:MoneyMarketFundsMember2021-09-250001039399us-gaap:USTreasuryBillSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-09-250001039399us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasuryBillSecuritiesMember2021-09-250001039399us-gaap:USTreasuryBillSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-09-250001039399us-gaap:USTreasuryBillSecuritiesMember2021-09-250001039399us-gaap:FairValueInputsLevel1Member2021-09-250001039399us-gaap:FairValueInputsLevel2Member2021-09-250001039399us-gaap:FairValueInputsLevel3Member2021-09-250001039399us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel1Member2021-09-250001039399us-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMember2021-09-250001039399us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel3Member2021-09-250001039399us-gaap:CertificatesOfDepositMember2021-09-250001039399us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-09-250001039399us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-09-250001039399us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-09-250001039399us-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-09-250001039399us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateBondSecuritiesMember2021-09-250001039399us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateBondSecuritiesMember2021-09-250001039399us-gaap:FairValueInputsLevel3Memberus-gaap:CorporateBondSecuritiesMember2021-09-250001039399us-gaap:CorporateBondSecuritiesMember2021-09-250001039399us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Member2021-09-250001039399us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMember2021-09-250001039399us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel3Member2021-09-250001039399us-gaap:CommercialPaperMember2021-09-250001039399us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel1Memberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-250001039399us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-250001039399us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueInputsLevel3Member2021-09-250001039399us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-250001039399us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignExchangeContractMember2021-09-250001039399us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignExchangeContractMember2021-09-250001039399us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel3Member2021-09-250001039399us-gaap:ForeignExchangeContractMember2021-09-250001039399us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2020-12-260001039399us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2020-12-260001039399us-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2020-12-260001039399us-gaap:MoneyMarketFundsMember2020-12-260001039399us-gaap:USTreasuryBillSecuritiesMemberus-gaap:FairValueInputsLevel1Member2020-12-260001039399us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasuryBillSecuritiesMember2020-12-260001039399us-gaap:USTreasuryBillSecuritiesMemberus-gaap:FairValueInputsLevel3Member2020-12-260001039399us-gaap:USTreasuryBillSecuritiesMember2020-12-260001039399us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel1Member2020-12-260001039399us-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMember2020-12-260001039399us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel3Member2020-12-260001039399us-gaap:CertificatesOfDepositMember2020-12-260001039399us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2020-12-260001039399us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-12-260001039399us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2020-12-260001039399us-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-12-260001039399us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateBondSecuritiesMember2020-12-260001039399us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateBondSecuritiesMember2020-12-260001039399us-gaap:FairValueInputsLevel3Memberus-gaap:CorporateBondSecuritiesMember2020-12-260001039399us-gaap:CorporateBondSecuritiesMember2020-12-260001039399us-gaap:FairValueInputsLevel1Member2020-12-260001039399us-gaap:FairValueInputsLevel2Member2020-12-260001039399us-gaap:FairValueInputsLevel3Member2020-12-260001039399us-gaap:FairValueInputsLevel1Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2020-12-260001039399us-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2020-12-260001039399us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ForeignExchangeContractMember2020-12-260001039399us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2020-12-260001039399us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel1Memberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-260001039399us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-260001039399us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueInputsLevel3Member2020-12-260001039399us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-260001039399form:FRTMember2019-10-092019-10-09iso4217:EUR0001039399srt:MaximumMemberform:FRTMember2019-10-0900010393992021-03-282021-06-260001039399us-gaap:SellingGeneralAndAdministrativeExpensesMember2019-12-292020-12-260001039399currency:EURus-gaap:LongMemberus-gaap:ForeignExchangeForwardMember2021-09-250001039399currency:EURus-gaap:ShortMemberus-gaap:ForeignExchangeForwardMember2021-09-25iso4217:JPY0001039399currency:JPYus-gaap:ShortMemberus-gaap:ForeignExchangeForwardMember2021-09-25iso4217:KRW0001039399us-gaap:LongMembercurrency:KRWus-gaap:ForeignExchangeForwardMember2021-09-25iso4217:TWD0001039399currency:TWDus-gaap:ShortMemberus-gaap:ForeignExchangeForwardMember2021-09-250001039399us-gaap:ForeignExchangeForwardMember2021-09-250001039399us-gaap:FairValueMeasurementsNonrecurringMember2021-09-250001039399us-gaap:FairValueMeasurementsNonrecurringMember2020-09-260001039399us-gaap:LandMember2021-09-250001039399us-gaap:LandMember2020-12-260001039399us-gaap:EquipmentMember2021-09-250001039399us-gaap:EquipmentMember2020-12-260001039399us-gaap:ComputerEquipmentMember2021-09-250001039399us-gaap:ComputerEquipmentMember2020-12-260001039399us-gaap:FurnitureAndFixturesMember2021-09-250001039399us-gaap:FurnitureAndFixturesMember2020-12-260001039399us-gaap:LeaseholdImprovementsMember2021-09-250001039399us-gaap:LeaseholdImprovementsMember2020-12-260001039399us-gaap:CommonStockMember2020-10-260001039399us-gaap:CommonStockMember2020-12-272021-09-250001039399us-gaap:CommonStockMember2021-09-250001039399us-gaap:RestrictedStockUnitsRSUMemberform:EquityIncentivePlanMember2020-12-260001039399us-gaap:RestrictedStockUnitsRSUMemberform:EquityIncentivePlanMember2020-12-272021-09-250001039399us-gaap:RestrictedStockUnitsRSUMemberform:EquityIncentivePlanMember2021-09-250001039399form:PerformanceRestrictedStockUnitsMemberform:EquityIncentivePlanMember2021-08-022021-08-020001039399form:PerformanceRestrictedStockUnitsMemberform:EquityIncentivePlanMember2021-08-020001039399form:EquityIncentivePlanMember2017-12-312018-12-290001039399form:PerformanceSharesTotalShareholderReturnGrantsMemberform:EquityIncentivePlanMember2020-12-272021-09-250001039399form:PerformanceRestrictedStockUnitsMemberform:EquityIncentivePlanMember2020-12-272021-09-250001039399form:EquityIncentivePlanMember2020-12-260001039399form:EquityIncentivePlanMember2020-12-272021-09-250001039399form:EquityIncentivePlanMember2021-09-250001039399us-gaap:EmployeeStockMember2020-12-272021-09-250001039399us-gaap:EmployeeStockMember2021-09-250001039399us-gaap:ResearchAndDevelopmentExpenseMember2020-06-282020-09-260001039399us-gaap:ResearchAndDevelopmentExpenseMember2019-12-292020-09-260001039399us-gaap:RestrictedStockMember2021-09-250001039399us-gaap:RestrictedStockMember2020-12-272021-09-250001039399form:PerformanceRestrictedStockUnitsMember2021-09-250001039399form:PerformanceRestrictedStockUnitsMember2020-12-272021-09-250001039399us-gaap:AutomobilesMembersrt:MinimumMember2021-09-250001039399us-gaap:AutomobilesMembersrt:MaximumMember2021-09-2500010393992021-09-262021-09-2500010393992021-12-262021-09-2500010393992023-01-012021-09-25form:segment0001039399form:ProbeCardsSegmentMemberus-gaap:OperatingSegmentsMember2021-06-272021-09-250001039399form:SystemsSegmentMemberus-gaap:OperatingSegmentsMember2021-06-272021-09-250001039399us-gaap:OperatingSegmentsMemberus-gaap:CorporateAndOtherMember2021-06-272021-09-250001039399form:ProbeCardsSegmentMemberus-gaap:OperatingSegmentsMember2020-06-282020-09-260001039399form:SystemsSegmentMemberus-gaap:OperatingSegmentsMember2020-06-282020-09-260001039399us-gaap:OperatingSegmentsMemberus-gaap:CorporateAndOtherMember2020-06-282020-09-260001039399form:ProbeCardsSegmentMemberus-gaap:OperatingSegmentsMember2020-12-272021-09-250001039399form:SystemsSegmentMemberus-gaap:OperatingSegmentsMember2020-12-272021-09-250001039399us-gaap:OperatingSegmentsMemberus-gaap:CorporateAndOtherMember2020-12-272021-09-250001039399form:ProbeCardsSegmentMemberus-gaap:OperatingSegmentsMember2019-12-292020-09-260001039399form:SystemsSegmentMemberus-gaap:OperatingSegmentsMember2019-12-292020-09-260001039399us-gaap:OperatingSegmentsMemberus-gaap:CorporateAndOtherMember2019-12-292020-09-260001039399form:FoundryLogicProductGroupMemberform:ProbeCardsSegmentMember2021-06-272021-09-250001039399form:FoundryLogicProductGroupMemberform:SystemsSegmentMember2021-06-272021-09-250001039399form:FoundryLogicProductGroupMember2021-06-272021-09-250001039399form:FoundryLogicProductGroupMemberform:ProbeCardsSegmentMember2020-06-282020-09-260001039399form:FoundryLogicProductGroupMemberform:SystemsSegmentMember2020-06-282020-09-260001039399form:FoundryLogicProductGroupMember2020-06-282020-09-260001039399form:ProbeCardsSegmentMemberform:DRAMProductGroupMember2021-06-272021-09-250001039399form:DRAMProductGroupMemberform:SystemsSegmentMember2021-06-272021-09-250001039399form:DRAMProductGroupMember2021-06-272021-09-250001039399form:ProbeCardsSegmentMemberform:DRAMProductGroupMember2020-06-282020-09-260001039399form:DRAMProductGroupMemberform:SystemsSegmentMember2020-06-282020-09-260001039399form:DRAMProductGroupMember2020-06-282020-09-260001039399form:FlashProductGroupMemberform:ProbeCardsSegmentMember2021-06-272021-09-250001039399form:FlashProductGroupMemberform:SystemsSegmentMember2021-06-272021-09-250001039399form:FlashProductGroupMember2021-06-272021-09-250001039399form:FlashProductGroupMemberform:ProbeCardsSegmentMember2020-06-282020-09-260001039399form:FlashProductGroupMemberform:SystemsSegmentMember2020-06-282020-09-260001039399form:FlashProductGroupMember2020-06-282020-09-260001039399form:ProbeCardsSegmentMemberform:SystemsProductGroupMember2021-06-272021-09-250001039399form:SystemsSegmentMemberform:SystemsProductGroupMember2021-06-272021-09-250001039399form:SystemsProductGroupMember2021-06-272021-09-250001039399form:ProbeCardsSegmentMemberform:SystemsProductGroupMember2020-06-282020-09-260001039399form:SystemsSegmentMemberform:SystemsProductGroupMember2020-06-282020-09-260001039399form:SystemsProductGroupMember2020-06-282020-09-260001039399form:ProbeCardsSegmentMember2020-06-282020-09-260001039399form:SystemsSegmentMember2020-06-282020-09-260001039399us-gaap:TransferredAtPointInTimeMemberform:ProbeCardsSegmentMember2021-06-272021-09-250001039399us-gaap:TransferredAtPointInTimeMemberform:SystemsSegmentMember2021-06-272021-09-250001039399us-gaap:TransferredAtPointInTimeMember2021-06-272021-09-250001039399us-gaap:TransferredAtPointInTimeMemberform:ProbeCardsSegmentMember2020-06-282020-09-260001039399us-gaap:TransferredAtPointInTimeMemberform:SystemsSegmentMember2020-06-282020-09-260001039399us-gaap:TransferredAtPointInTimeMember2020-06-282020-09-260001039399us-gaap:TransferredOverTimeMemberform:ProbeCardsSegmentMember2021-06-272021-09-250001039399us-gaap:TransferredOverTimeMemberform:SystemsSegmentMember2021-06-272021-09-250001039399us-gaap:TransferredOverTimeMember2021-06-272021-09-250001039399us-gaap:TransferredOverTimeMemberform:ProbeCardsSegmentMember2020-06-282020-09-260001039399us-gaap:TransferredOverTimeMemberform:SystemsSegmentMember2020-06-282020-09-260001039399us-gaap:TransferredOverTimeMember2020-06-282020-09-260001039399form:ProbeCardsSegmentMembercountry:CN2021-06-272021-09-250001039399form:SystemsSegmentMembercountry:CN2021-06-272021-09-250001039399country:CN2021-06-272021-09-250001039399form:ProbeCardsSegmentMembercountry:CN2020-06-282020-09-260001039399form:SystemsSegmentMembercountry:CN2020-06-282020-09-260001039399country:CN2020-06-282020-09-260001039399form:ProbeCardsSegmentMembercountry:TW2021-06-272021-09-250001039399form:SystemsSegmentMembercountry:TW2021-06-272021-09-250001039399country:TW2021-06-272021-09-250001039399form:ProbeCardsSegmentMembercountry:TW2020-06-282020-09-260001039399form:SystemsSegmentMembercountry:TW2020-06-282020-09-260001039399country:TW2020-06-282020-09-260001039399form:ProbeCardsSegmentMembercountry:KR2021-06-272021-09-250001039399form:SystemsSegmentMembercountry:KR2021-06-272021-09-250001039399country:KR2021-06-272021-09-250001039399form:ProbeCardsSegmentMembercountry:KR2020-06-282020-09-260001039399form:SystemsSegmentMembercountry:KR2020-06-282020-09-260001039399country:KR2020-06-282020-09-260001039399country:USform:ProbeCardsSegmentMember2021-06-272021-09-250001039399country:USform:SystemsSegmentMember2021-06-272021-09-250001039399country:US2021-06-272021-09-250001039399country:USform:ProbeCardsSegmentMember2020-06-282020-09-260001039399country:USform:SystemsSegmentMember2020-06-282020-09-260001039399country:US2020-06-282020-09-260001039399srt:AsiaPacificMemberform:ProbeCardsSegmentMember2021-06-272021-09-250001039399srt:AsiaPacificMemberform:SystemsSegmentMember2021-06-272021-09-250001039399srt:AsiaPacificMember2021-06-272021-09-250001039399srt:AsiaPacificMemberform:ProbeCardsSegmentMember2020-06-282020-09-260001039399srt:AsiaPacificMemberform:SystemsSegmentMember2020-06-282020-09-260001039399srt:AsiaPacificMember2020-06-282020-09-260001039399country:JPform:ProbeCardsSegmentMember2021-06-272021-09-250001039399country:JPform:SystemsSegmentMember2021-06-272021-09-250001039399country:JP2021-06-272021-09-250001039399country:JPform:ProbeCardsSegmentMember2020-06-282020-09-260001039399country:JPform:SystemsSegmentMember2020-06-282020-09-260001039399country:JP2020-06-282020-09-260001039399srt:EuropeMemberform:ProbeCardsSegmentMember2021-06-272021-09-250001039399srt:EuropeMemberform:SystemsSegmentMember2021-06-272021-09-250001039399srt:EuropeMember2021-06-272021-09-250001039399srt:EuropeMemberform:ProbeCardsSegmentMember2020-06-282020-09-260001039399srt:EuropeMemberform:SystemsSegmentMember2020-06-282020-09-260001039399srt:EuropeMember2020-06-282020-09-260001039399form:RestOfTheWorldMemberform:ProbeCardsSegmentMember2021-06-272021-09-250001039399form:RestOfTheWorldMemberform:SystemsSegmentMember2021-06-272021-09-250001039399form:RestOfTheWorldMember2021-06-272021-09-250001039399form:RestOfTheWorldMemberform:ProbeCardsSegmentMember2020-06-282020-09-260001039399form:RestOfTheWorldMemberform:SystemsSegmentMember2020-06-282020-09-260001039399form:RestOfTheWorldMember2020-06-282020-09-260001039399form:FoundryLogicProductGroupMemberform:ProbeCardsSegmentMember2020-12-272021-09-250001039399form:FoundryLogicProductGroupMemberform:SystemsSegmentMember2020-12-272021-09-250001039399form:FoundryLogicProductGroupMember2020-12-272021-09-250001039399form:FoundryLogicProductGroupMemberform:ProbeCardsSegmentMember2019-12-292020-09-260001039399form:FoundryLogicProductGroupMemberform:SystemsSegmentMember2019-12-292020-09-260001039399form:FoundryLogicProductGroupMember2019-12-292020-09-260001039399form:ProbeCardsSegmentMemberform:DRAMProductGroupMember2020-12-272021-09-250001039399form:DRAMProductGroupMemberform:SystemsSegmentMember2020-12-272021-09-250001039399form:DRAMProductGroupMember2020-12-272021-09-250001039399form:ProbeCardsSegmentMemberform:DRAMProductGroupMember2019-12-292020-09-260001039399form:DRAMProductGroupMemberform:SystemsSegmentMember2019-12-292020-09-260001039399form:DRAMProductGroupMember2019-12-292020-09-260001039399form:FlashProductGroupMemberform:ProbeCardsSegmentMember2020-12-272021-09-250001039399form:FlashProductGroupMemberform:SystemsSegmentMember2020-12-272021-09-250001039399form:FlashProductGroupMember2020-12-272021-09-250001039399form:FlashProductGroupMemberform:ProbeCardsSegmentMember2019-12-292020-09-260001039399form:FlashProductGroupMemberform:SystemsSegmentMember2019-12-292020-09-260001039399form:FlashProductGroupMember2019-12-292020-09-260001039399form:ProbeCardsSegmentMemberform:SystemsProductGroupMember2020-12-272021-09-250001039399form:SystemsSegmentMemberform:SystemsProductGroupMember2020-12-272021-09-250001039399form:SystemsProductGroupMember2020-12-272021-09-250001039399form:ProbeCardsSegmentMemberform:SystemsProductGroupMember2019-12-292020-09-260001039399form:SystemsSegmentMemberform:SystemsProductGroupMember2019-12-292020-09-260001039399form:SystemsProductGroupMember2019-12-292020-09-260001039399form:ProbeCardsSegmentMember2019-12-292020-09-260001039399form:SystemsSegmentMember2019-12-292020-09-260001039399us-gaap:TransferredAtPointInTimeMemberform:ProbeCardsSegmentMember2020-12-272021-09-250001039399us-gaap:TransferredAtPointInTimeMemberform:SystemsSegmentMember2020-12-272021-09-250001039399us-gaap:TransferredAtPointInTimeMember2020-12-272021-09-250001039399us-gaap:TransferredAtPointInTimeMemberform:ProbeCardsSegmentMember2019-12-292020-09-260001039399us-gaap:TransferredAtPointInTimeMemberform:SystemsSegmentMember2019-12-292020-09-260001039399us-gaap:TransferredAtPointInTimeMember2019-12-292020-09-260001039399us-gaap:TransferredOverTimeMemberform:ProbeCardsSegmentMember2020-12-272021-09-250001039399us-gaap:TransferredOverTimeMemberform:SystemsSegmentMember2020-12-272021-09-250001039399us-gaap:TransferredOverTimeMember2020-12-272021-09-250001039399us-gaap:TransferredOverTimeMemberform:ProbeCardsSegmentMember2019-12-292020-09-260001039399us-gaap:TransferredOverTimeMemberform:SystemsSegmentMember2019-12-292020-09-260001039399us-gaap:TransferredOverTimeMember2019-12-292020-09-260001039399form:ProbeCardsSegmentMembercountry:TW2020-12-272021-09-250001039399form:SystemsSegmentMembercountry:TW2020-12-272021-09-250001039399country:TW2020-12-272021-09-250001039399form:ProbeCardsSegmentMembercountry:TW2019-12-292020-09-260001039399form:SystemsSegmentMembercountry:TW2019-12-292020-09-260001039399country:TW2019-12-292020-09-260001039399form:ProbeCardsSegmentMembercountry:CN2020-12-272021-09-250001039399form:SystemsSegmentMembercountry:CN2020-12-272021-09-250001039399country:CN2020-12-272021-09-250001039399form:ProbeCardsSegmentMembercountry:CN2019-12-292020-09-260001039399form:SystemsSegmentMembercountry:CN2019-12-292020-09-260001039399country:CN2019-12-292020-09-260001039399country:USform:ProbeCardsSegmentMember2020-12-272021-09-250001039399country:USform:SystemsSegmentMember2020-12-272021-09-250001039399country:US2020-12-272021-09-250001039399country:USform:ProbeCardsSegmentMember2019-12-292020-09-260001039399country:USform:SystemsSegmentMember2019-12-292020-09-260001039399country:US2019-12-292020-09-260001039399form:ProbeCardsSegmentMembercountry:KR2020-12-272021-09-250001039399form:SystemsSegmentMembercountry:KR2020-12-272021-09-250001039399country:KR2020-12-272021-09-250001039399form:ProbeCardsSegmentMembercountry:KR2019-12-292020-09-260001039399form:SystemsSegmentMembercountry:KR2019-12-292020-09-260001039399country:KR2019-12-292020-09-260001039399srt:AsiaPacificMemberform:ProbeCardsSegmentMember2020-12-272021-09-250001039399srt:AsiaPacificMemberform:SystemsSegmentMember2020-12-272021-09-250001039399srt:AsiaPacificMember2020-12-272021-09-250001039399srt:AsiaPacificMemberform:ProbeCardsSegmentMember2019-12-292020-09-260001039399srt:AsiaPacificMemberform:SystemsSegmentMember2019-12-292020-09-260001039399srt:AsiaPacificMember2019-12-292020-09-260001039399srt:EuropeMemberform:ProbeCardsSegmentMember2020-12-272021-09-250001039399srt:EuropeMemberform:SystemsSegmentMember2020-12-272021-09-250001039399srt:EuropeMember2020-12-272021-09-250001039399srt:EuropeMemberform:ProbeCardsSegmentMember2019-12-292020-09-260001039399srt:EuropeMemberform:SystemsSegmentMember2019-12-292020-09-260001039399srt:EuropeMember2019-12-292020-09-260001039399country:JPform:ProbeCardsSegmentMember2020-12-272021-09-250001039399country:JPform:SystemsSegmentMember2020-12-272021-09-250001039399country:JP2020-12-272021-09-250001039399country:JPform:ProbeCardsSegmentMember2019-12-292020-09-260001039399country:JPform:SystemsSegmentMember2019-12-292020-09-260001039399country:JP2019-12-292020-09-260001039399form:RestOfTheWorldMemberform:ProbeCardsSegmentMember2020-12-272021-09-250001039399form:RestOfTheWorldMemberform:SystemsSegmentMember2020-12-272021-09-250001039399form:RestOfTheWorldMember2020-12-272021-09-250001039399form:RestOfTheWorldMemberform:ProbeCardsSegmentMember2019-12-292020-09-260001039399form:RestOfTheWorldMemberform:SystemsSegmentMember2019-12-292020-09-260001039399form:RestOfTheWorldMember2019-12-292020-09-26

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 25, 2021
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 classTrading Symbol(s) Name of each exchange on which registered
Common stock, $0.001 par valueFORM 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 every Interactive Data File required to be submitted 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 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 FilerAccelerated Filer
Non-accelerated FilerSmaller 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 28, 2021, 78,207,417 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 25, 2021
INDEX
 
   
 
   
 
   
  
 
  
 
  
  
  
  
  
  
 

2


PART I - FINANCIAL INFORMATION
 
Item 1. Financial Statements
 
FORMFACTOR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)
 September 25,
2021
December 26,
2020
ASSETS 
Current assets:  
Cash and cash equivalents$153,781 $187,225 
Marketable securities110,898 67,810 
Accounts receivable, net of allowance for doubtful accounts of $214 and $248
105,807 107,603 
Inventories, net115,104 99,229 
Restricted cash2,019 1,904 
Prepaid expenses and other current assets18,892 23,303 
Total current assets506,501 487,074 
Restricted cash1,674 1,969 
Operating lease, right-of-use-assets36,669 30,756 
Property, plant and equipment, net of accumulated depreciation140,098 104,103 
Goodwill213,293 212,761 
Intangibles, net39,195 59,147 
Deferred tax assets67,231 66,242 
Other assets1,930 1,165 
Total assets$1,006,591 $963,217 
LIABILITIES AND STOCKHOLDERS’ EQUITY 
Current liabilities: 
Accounts payable$64,925 $62,045 
Accrued liabilities54,625 55,342 
Current portion of term loans, net of unamortized issuance costs9,213 9,516 
Deferred revenue23,275 20,964 
Operating lease liabilities7,962 6,704 
Total current liabilities160,000 154,571 
Term loans, less current portion, net of unamortized issuance costs17,742 24,978 
Deferred tax liabilities4,264 5,346 
Long-term operating lease liabilities32,401 27,996 
Other liabilities5,794 6,242 
Total liabilities220,201 219,133 
 
Stockholders’ equity: 
Common stock, $0.001 par value:
 
250,000,000 shares authorized; 78,207,219 and 77,437,997 shares issued and outstanding
78 78 
Additional paid-in capital892,303 903,838 
Accumulated other comprehensive income1,700 5,886 
Accumulated deficit(107,691)(165,718)
Total stockholders’ equity786,390 744,084 
Total liabilities and stockholders’ equity$1,006,591 $963,217 
 
The accompanying notes are an integral part of these condensed consolidated financial statements. 
3



FORMFACTOR, INC.
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
 Three Months EndedNine Months Ended
 September 25,
2021
September 26,
2020
September 25,
2021
September 26,
2020
Revenues$189,964 $177,996 $564,676 $496,573 
Cost of revenues109,745 101,247 331,468 286,267 
Gross profit80,219 76,749 233,208 210,306 
Operating expenses:    
Research and development26,026 22,878 75,526 65,064 
Selling, general and administrative30,940 31,834 91,434 82,282 
Total operating expenses56,966 54,712 166,960 147,346 
Operating income23,253 22,037 66,248 62,960 
Interest income121 249 463 1,310 
Interest expense(151)(193)(447)(682)
Other expense, net58 299 36 141 
Income before income taxes23,281 22,392 66,300 63,729 
Provision (benefit) for income taxes2,784 (499)8,273 4,479 
Net income$20,497 $22,891 $58,027 $59,250 
Net income per share: 
Basic $0.26 $0.30 $0.75 $0.78 
Diluted$0.26 $0.29 $0.73 $0.75 
Weighted-average number of shares used in per share calculations:   
Basic 77,869 77,029 77,643 76,436 
Diluted79,029 78,809 79,190 78,534 
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
4



FORMFACTOR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
(Unaudited)
Three Months EndedNine Months Ended
September 25,
2021
September 26,
2020
September 25,
2021
September 26,
2020
Net income $20,497 $22,891 $58,027 $59,250 
Other comprehensive income (loss), net of tax:
Translation adjustments and other(1,511)1,867 (3,258)2,231 
Unrealized gains (losses) on available-for-sale marketable securities(62)(148)(290)349 
Unrealized gains (losses) on derivative instruments(323)302 (638)558 
Other comprehensive income (loss), net of tax(1,896)2,021 (4,186)3,138 
Comprehensive income$18,601 $24,912 $53,841 $62,388 

The accompanying notes are an integral part of these condensed consolidated financial statements.

5


FORMFACTOR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(In thousands, except shares)
(Unaudited)
 Shares of
Common
Stock
Common
Stock
Additional
Paid-in
Capital
Accumulated
Other
Comprehensive
 Income (Loss)
Accumulated
Deficit
Total
Nine Months Ended September 25, 2021
Balances, December 26, 202077,437,997 $78 $903,838 $5,886 $(165,718)$744,084 
Issuance of common stock under the Employee Stock Purchase Plan378,584 — 9,809 — — 9,809 
Issuance of common stock pursuant to exercise of options100,000 — 844 — — 844 
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax910,838 1 (19,602)— — (19,601)
Purchase and retirement of common stock through repurchase program(620,200)(1)(23,950)— — (23,951)
Stock-based compensation— — 21,364 — — 21,364 
Other comprehensive loss— — — (4,186)— (4,186)
Net income— — — — 58,027 58,027 
Balances, September 25, 202178,207,219 $78 $892,303 $1,700 $(107,691)$786,390 
Three Months Ended September 25, 2021
Balances, June 26, 202177,454,800 $77 $894,062 $3,596 $(128,188)$769,547 
Issuance of common stock under the Employee Stock Purchase Plan149,800 — 4,744 — — 4,744 
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax602,619 1 (14,341)— — (14,340)
Stock-based compensation— — 7,838 — — 7,838 
Other comprehensive loss— — — (1,896)— (1,896)
Net income— — — — 20,497 20,497 
Balances, September 25, 202178,207,219 $78 $892,303 $1,700 $(107,691)$786,390 

The accompanying notes are an integral part of these condensed consolidated financial statements.


















6


FORMFACTOR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(In thousands, except shares)
(Unaudited)
Shares of
Common
Stock
Common
Stock
Additional
Paid-in
Capital
Accumulated
Other
Comprehensive
 Income (Loss)
Accumulated
Deficit
Total
Nine Months Ended September 26, 2020
Balances, December 28, 201975,764,990 $76 $885,821 $(659)$(244,241)$640,997 
Issuance of common stock under the Employee Stock Purchase Plan485,566 — 7,875 — — 7,875 
Issuance of common stock pursuant to exercise of options205,769 1 1,712 — — 1,713 
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax927,169 1 (15,383)— — (15,382)
Stock-based compensation— — 16,551 — — 16,551 
Other comprehensive income— — — 3,138 — 3,138 
Net income— — — — 59,250 59,250 
Balances, September 26, 202077,383,494 $78 $896,576 $2,479 $(184,991)$714,142 
Three Months Ended September 26, 2020
Balances, June 27, 202076,501,459 $77 $898,069 $458 $(207,882)$690,722 
Issuance of common stock under the Employee Stock Purchase Plan173,975  3,809 — — 3,809 
Issuance of common stock pursuant to exercise of options100,000 — 844 — — 844 
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld for tax608,060 1 (11,583)— — (11,582)
Stock-based compensation— — 5,437 — — 5,437 
Other comprehensive income— — — 2,021 — 2,021 
Net income— — — — 22,891 22,891 
Balances, September 26, 202077,383,494 $78 $896,576 $2,479 $(184,991)$714,142 

The accompanying notes are an integral part of these condensed consolidated financial statements.
7



FORMFACTOR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 Nine Months Ended
 September 25,
2021
September 26,
2020
Cash flows from operating activities:  
Net income $58,027 $59,250 
Adjustments to reconcile net income to net cash provided by operating activities: 
Depreciation19,256 14,491 
Amortization16,362 20,249 
Reduction in the carrying amount of right-of-use assets5,412 4,294 
Stock-based compensation expense21,585 16,774 
Provision for excess and obsolete inventories11,621 9,763 
Non-cash restructuring charges1,592  
Gain on contingent consideration(95)(3,771)
Other adjustments to reconcile net income to net cash provided by operating activities1,627 (977)
Changes in assets and liabilities:
Accounts receivable1,157 5,712 
Inventories(30,335)(18,566)
Prepaid expenses and other current assets3,631 (5,619)
Other assets(333)219 
Accounts payable1,488 18,054 
Accrued liabilities(6,951)4,754 
Other liabilities47 272 
Deferred revenues2,000 3,806 
Operating lease liabilities(5,654)(4,496)
Net cash provided by operating activities100,437 124,209 
Cash flows from investing activities:  
Acquisition of property, plant and equipment(51,353)(41,887)
Acquisition of business, net of cash acquired (34,999)
Proceeds from sale of a subsidiary 82 
Purchases of marketable securities(114,898)(29,721)
Proceeds from maturities and sales of marketable securities71,275 50,330 
Net cash used in investing activities(94,976)(56,195)
Cash flows from financing activities:  
Proceeds from issuances of common stock10,647 9,588 
Purchase of common stock through stock repurchase program(23,951) 
Tax withholdings related to net share settlements of equity awards(12,643)(15,382)
Payment of contingent consideration(3,873) 
Proceeds from term loan 18,000 
Principal repayments on term loans(7,049)(41,098)
Payment of term loan debt issuance costs (78)
Net cash used in financing activities(36,869)(28,970)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(2,216)1,262 
Net increase (decrease) in cash, cash equivalents and restricted cash(33,624)40,306 
Cash, cash equivalents and restricted cash, beginning of period191,098 147,937 
Cash, cash equivalents and restricted cash, end of period$157,474 $188,243 

The accompanying notes are an integral part of these condensed consolidated financial statements.
8



FORMFACTOR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended
September 25,
2021
September 26,
2020
Non-cash investing and financing activities:
Increase in accounts payable and accrued liabilities related to property, plant and equipment purchases$4,684 $3,041 
Increase in accrued liabilities related to tax withholdings related to net share settlements of equity awards6,952  
Operating lease, right-of-use assets obtained in exchange for lease obligations11,699 1,549 
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net$6,795 $7,475 
Cash paid for interest496 683 
Operating cash outflows from operating leases6,420 5,566 
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents$153,781 $185,368 
Restricted cash, current2,019 1,477 
Restricted cash, non-current1,674 1,398 
Total cash, cash equivalents and restricted cash$157,474 $188,243 

The accompanying notes are an integral part of these condensed consolidated financial statements.
9


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 (“SEC”). 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 condensed consolidated financial statements included herein should be read in conjunction with the consolidated financial statements and the notes thereto included in our 2020 Annual Report on Form 10-K filed with the SEC on February 22, 2021. 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 2021 and 2020 each contain 52 weeks and the nine months ended September 25, 2021 and September 26, 2020 each contained 39 weeks. Fiscal 2021 will end on December 25, 2021.

Significant Accounting Policies
Our significant accounting policies have not changed during the nine months ended September 25, 2021 from those disclosed in our Annual Report on Form 10-K for the year ended December 26, 2020.

New Accounting Pronouncements
ASU 2019-12
In December 2019, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, “Income Taxes (Topic 740),” which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. We adopted ASU 2019-12 on a prospective basis on December 27, 2020, the first day of fiscal 2021. The adoption did not have a material effect on our consolidated financial position, results of operations or cash flows.

ASU 2020-04
In March 2020, the FASB issued ASU 2020-04, “Referenced Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The ASU provides temporary optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848),” which permits entities to apply optional expedients in Topic 848 to derivative instruments modified because of discounting transition resulting from reference rate reform. ASU 2020-04 became effective upon issuance and may be applied prospectively to contract modifications made on or before December 31, 2022. ASU 2021-01 became effective upon issuance and may be applied on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 or prospectively for contract modifications made on or before December 31, 2022. The Company has not yet applied the relief afforded by these standard amendments and is currently assessing contracts that will require modification due to reference rate reform to which these standard amendments may be applied.

10


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 EndedNine Months Ended
September 25,
2021
September 26,
2020
September 25,
2021
September 26,
2020
Intel Corporation20.8 %25.6 %21.7 %32.4 %
Samsung Electronics., LTD.12.9 %10.6 %10.5 %*
Taiwan Semiconductor Manufacturing Co., LTD.*10.6 %**
Micron Technology, Inc.*10.1 %**
33.7 %56.9 %32.2 %32.4 %
*Represents less than 10% of total revenues.

At September 25, 2021, one customer accounted for 19.3% of gross accounts receivable. At December 26, 2020, two customers accounted for 15.3% and 13.7% 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 25,
2021
December 26,
2020
Raw materials$55,352 $48,122 
Work-in-progress41,638 30,806 
Finished goods18,114 20,301 
$115,104 $99,229 

Note 4 Acquisitions

High Precision Devices, Inc. Acquisition
On October 19, 2020, we acquired HPD for total consideration of $16.9 million, net of cash acquired of $1.7 million, which included an adjustment for changes in working capital. The acquisition was accounted for using the acquisition method of accounting. The acquisition price was allocated to the tangible and identified intangible assets acquired and liabilities assumed as of the closing date of the acquisition based upon their respective fair values, including an amount for goodwill representing the difference between the acquisition consideration and the fair value of the identifiable net assets. The fair values assigned to the assets acquired and liabilities assumed were based on management’s assumptions as of the acquisition date. We subsequently made certain immaterial adjustments within the measurement period to the acquisition price allocation as a result of finalization of our valuation of identifiable assets and liabilities. See Note 5, Goodwill and Intangible Assets, for the changes
11


in identified intangible values and goodwill. The final allocation of the assets acquired, including goodwill and intangibles, and liabilities assumed for the purchase is as follows (in thousands):
Amount
Cash and cash equivalents$1,680 
Accounts receivable1,017 
Inventories3,047 
Property, plant and equipment669 
Operating lease, right of use assets2,554 
Prepaid expenses and other current assets916 
Tangible assets acquired9,883 
Deferred revenue(2,529)
Accounts payable and accrued liabilities(1,268)
Operating lease liabilities(2,554)
Deferred tax liabilities(2,400)
Total tangible assets acquired and liabilities assumed1,132 
Intangible assets11,520 
Goodwill5,908 
Net Assets Acquired$18,560 

The intangible assets as of the acquisition included (in thousands):
AmountWeighted Average Useful Life (in years)
Developed technologies$7,500 10.0
Customer relationships3,600 5.0
Order backlog200 0.5
Trade names220 5.0
Total intangible assets$11,520 8.2

Baldwin Park Acquisition
On July 30, 2020, we acquired the probe card assets of Advantest Corporation for total consideration of $35.0 million. The acquisition was accounted for using the acquisition method of accounting. The acquisition price was allocated to the tangible and identified intangible assets acquired and liabilities assumed as of the closing date of the acquisition based upon their respective fair values including an amount for goodwill representing the difference between the acquisition consideration and the fair value of the identifiable net assets. The fair values assigned to assets acquired and liabilities assumed were based on management's assumptions as of the acquisition date. We subsequently made certain immaterial adjustments within the measurement period to the acquisition price allocation as a result of finalization of our valuation of identifiable assets and liabilities. See Note 5, Goodwill and Intangible Assets, for the changes in identified intangible values and goodwill. The final
12


allocation of the assets acquired, including goodwill and intangibles, and liabilities assumed for the purchase as follows (in thousands):
Amount
Accounts receivable$4,365 
Inventories2,727 
Property, plant and equipment9,053 
Operating lease, right of use assets519 
Prepaid expenses and other current assets56 
Tangible assets acquired16,720 
Accounts payable and accrued liabilities(743)
Operating lease liabilities(519)
Total tangible assets acquired and liabilities assumed15,458 
Intangible assets13,600 
Goodwill5,942 
Net assets acquired$35,000 

The intangible assets as of the acquisition date included (in thousands):
AmountWeighted Average Useful Life (in years)
Developed technologies$8,800 10.0
Customer relationships4,400 3.0
In-process research and development400 N/A
Total intangible assets$13,600 7.7

Note 5 Goodwill and Intangible Assets

Goodwill by reportable segment was as follows (in thousands):
Probe CardsSystemsTotal
Goodwill, gross, as of December 28, 2019$172,482 $26,714 $199,196 
Addition - FRT GmbH Acquisition 975 975 
Addition - Baldwin Park Acquisition5,590  5,590 
Addition - HPD Acquisition 4,654 4,654 
Foreign currency translation 2,346 2,346 
Goodwill, gross, as of December 26, 2020178,072 34,689 212,761 
Addition - Baldwin Park Acquisition352  352 
Addition - HPD Acquisition 1,254 1,254 
Foreign currency translation (1,074)(1,074)
Goodwill, gross, as of September 25, 2021$178,424 $34,869 $213,293 

We have not recorded goodwill impairments for the nine months ended September 25, 2021.
13



Intangible assets were as follows (in thousands):
September 25, 2021December 26, 2020
Intangible Assets GrossAccumulated
Amortization
NetGrossAccumulated
Amortization
Net
Developed technologies $173,160 $148,518 $24,642 $176,265 $137,754 $38,511 
Customer relationships51,514 37,885 13,629 52,488 33,378 19,110 
Trade names8,110 7,586 524 8,162 7,363 799 
Order backlog1,958 1,958  2,227 1,900 327 
In-process research and development400  400 400  400 
$