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FormFactor: FormFactor, Inc. Reports Fourth Quarter and Annual Results

^{Published on 2009-01-28 13:31:42, Last Modified on 2009-01-28 13:33:55 - Market Wire}
 

LIVERMORE, CA--(Marketwire - January 28, 2009) - FormFactor, Inc. (NASDAQ: [ FORM ]) today announced its financial results for the fourth quarter of fiscal 2008, that ended on December 27, 2008. Quarterly revenues were $39.9 million, down 24.1% from $52.6 million in the third quarter of fiscal 2008, and down 66.9% from $120.5 million in the fourth quarter of fiscal 2007.

For fiscal 2008, FormFactor posted revenue of $210.2 million, down 54.5% from $462.2 million in fiscal 2007.

Net loss for the fourth quarter of fiscal 2008 was $30.0 million or $(0.61) per share, which included $3.3 million or $0.07 per share of stock-based compensation, net of tax. This compares to net loss for the third quarter of fiscal 2008 of $14.0 million or $(0.29) per share, which included $3.3 million or $0.07 per share of stock-based compensation, net of tax and a one-time tax benefit of $2.8 million or $0.06 per share from the settlement of certain tax audits. Net income for the fourth quarter of fiscal 2007 was $14.4 million or $0.29 per share on a fully diluted basis, which included $4.3 million or $0.09 per share of stock-based compensation, net of tax. The fourth quarter of fiscal 2008 results also include $4.9 million in pre-tax non-cash restructuring and asset impairment charges related to a write-down of a Livermore facility held for sale and in-progress construction assets in Singapore as well as a $4.1 million pre-tax charge for bad debt reserve.

Net loss for fiscal 2008 was $80.6 million or $(1.65) per share, which included $15.7 million, or $0.32 per share of stock-based compensation, net of tax, compared to net income of $72.9 million or $1.47 per share on a fully diluted basis for fiscal 2007, which included $17.2 million, or $0.35 per share of stock-based compensation, net of tax. Net loss for fiscal 2008 includes $9.2 million in pre-tax restructuring charges, $4.4 million in pre-tax non-cash asset impairment charges as well as a $4.1 million pre-tax charge for bad debt reserve as noted above.

"The global economic slowdown has significantly reduced demand for semiconductor devices in general, and for memory devices in particular," said Mario Ruscev, CEO of FormFactor. "We have worked to align our operating plans and structure with the current business environment in order to improve our operating efficiency. We move into 2009 with a broad range of outstanding products and a firm commitment to innovation and continuous product improvement. Overall, we remain focused on increasing our customers' test efficiency."

The company has posted its revenue breakdown by region and market segment on the Investors section of its website at [ www.formfactor.com ]. FormFactor will conduct a conference call at 1:30 p.m. PST, or 4:30 p.m. EST, today. The public is invited to listen to a live web cast of FormFactor's conference call on the Investors section of the company's website at [ www.formfactor.com ]. An audio replay of the conference call will also be made available approximately two hours after the conclusion of the call. The audio replay will remain available until February 1, 2009 at 6:30 p.m. PST and can be accessed by dialing 888-203-1112 or 719-457-0820 and entering confirmation code 4718123.

About FormFactor:

Founded in 1993, FormFactor, Inc. (NASDAQ: [ FORM ]) is the leader in advanced wafer probe cards, which are used by semiconductor manufacturers to electrically test integrated circuits, or ICs. The company's wafer sort, burn-in and device performance testing products move IC testing upstream from post-packaging to the wafer level, enabling semiconductor manufacturers to lower their overall production costs, improve yields, and bring next-generation devices to market. FormFactor is headquartered in Livermore, California with operations in Europe, Asia and North America. For more information, visit the company's website at [ www.formfactor.com ].

FormFactor and the FormFactor logo are registered trademarks of FormFactor, Inc. All other product, trademark, company or service names mentioned herein are the property of their respective owners.

Forward-looking Statements

Statements in this press release that are not strictly historical in nature are forward-looking statements within the meaning of the federal securities laws, including statements regarding operations, business outlook, demand for our products and future growth. These forward-looking statements are based on current information and expectations that are inherently subject to change and involve a number of risks and uncertainties. Actual events or results might differ materially from those in any forward-looking statement due to various factors, including, but not limited to: changes in the market environment, including the demand for certain semiconductor devices, including DRAM and Flash memory devices; the company's ability to align its operating plans and structure with the current business environment to improve its operating efficiency; and the company's ability to develop innovative testing technologies, to timely deliver and qualify new products that meet its customers' testing requirements and lower their overall cost of test. Additional information concerning factors that could cause actual events or results to differ materially from those in any forward-looking statement is contained in the company's Form 10-K for the fiscal period ended December 29, 2007 and the company's filings on Form 10-Q for the quarterly periods in its fiscal 2008 as filed with the Securities and Exchange Commission ("SEC"), and subsequent SEC filings. Copies of the company's SEC filings are available at [ http://investors.formfactor.com/edgar.cfm ]. The company assumes no obligation to update the information in this press release, to revise any forward-looking statements or to update the reasons actual results could differ materially from those anticipated in forward-looking statements.

 FORMFACTOR, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) Three Months Ended Twelve Months Ended ------------------------- ------------------------- December 27, December 29, December 27, December 29, 2008 2007 2008 2007 ----------- ------------ ----------- ------------ Revenues $ 39,889 $ 120,505 $ 210,189 $ 462,191 Cost of revenues 39,300 58,921 173,926 215,484 ----------- ------------ ----------- ------------ Gross margin 589 61,584 36,263 246,707 ----------- ------------ ----------- ------------ Operating expenses: Research and development 16,221 16,246 65,509 60,951 Selling, general and administrative 26,170 23,203 95,208 92,552 Restructuring charge 473 - 9,157 - Impairment of long-lived assets 4,400 - 4,400 - ----------- ------------ ----------- ------------ Total operating expenses 47,264 39,449 174,274 153,503 ----------- ------------ ----------- ------------ Operating (loss) income (46,675) 22,135 (138,011) 93,204 Interest income, net 1,638 5,741 12,446 22,508 Other income 249 293 653 528 ----------- ------------ ----------- ------------ 1,887 6,034 13,099 23,036 (Loss) income before income taxes (44,788) 28,169 (124,912) 116,240 Provision for (benefit from) income taxes (14,828) 13,818 (44,291) 43,350 ----------- ------------ ----------- ------------ Net (loss) income $ (29,960) $ 14,351 $ (80,621) $ 72,890 =========== ============ =========== ============ Basic $ (0.61) $ 0.30 $ (1.65) $ 1.52 =========== ============ =========== ============ Diluted $ (0.61) $ 0.29 $ (1.65) $ 1.47 =========== ============ =========== ============ Weighted-average number of shares used in per share calculations: Basic 49,061 48,610 48,905 48,044 =========== ============ =========== ============ Diluted 49,061 49,924 48,905 49,557 =========== ============ =========== ============ FORMFACTOR, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) (Unaudited) December 27, December 29, 2008 2007 ------------ ------------ ASSETS Current assets: Cash and cash equivalents $ 337,926 $ 315,232 Marketable securities 184,968 254,814 Accounts receivable, net 34,127 69,486 Inventories 18,788 29,309 Deferred tax assets 23,039 17,995 Refundable income taxes 29,413 2,043 Prepaid expenses and other current assets 14,702 13,461 ------------ ------------ Total current assets 642,963 702,340 Restricted cash 680 2,250 Property and equipment, net 113,813 130,882 Deferred tax assets 20,580 10,038 Other assets 7,674 9,812 ------------ ------------ Total assets $ 785,710 $ 855,322 ============ ============ LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 33,214 $ 42,893 Accrued liabilities 25,693 30,029 Income taxes payable 1,904 1,328 Deferred revenue 4,946 5,535 Deferred rent 452 462 ------------ ------------ Total current liabilities 66,209 80,247 Long term income taxes payable 7,732 12,248 Deferred rent and other liabilities 5,705 5,877 ------------ ------------ Total liabilities 79,646 98,372 ------------ ------------ Stockholders' equity Common stock, $0.001 par value 50 49 Additional paid-in capital 602,294 573,553 Accumulated other comprehensive income 1,922 929 Retained earnings 101,798 182,419 ------------ ------------ Total stockholders' equity 706,064 756,950 ------------ ------------ Total liabilities and stockholders' equity $ 785,710 $ 855,322 ============ ============