SOURCE: FormFactor

 

LIVERMORE, CA--(Marketwire - October 28, 2008) - FormFactor, Inc. (NASDAQ: FORM) today announced its financial results for the third quarter of fiscal 2008, ended September 27, 2008. Quarterly revenues were $52.6 million, up 1.2% from $52.0 million in the second quarter of fiscal 2008, and down 58.0% from $125.3 million in the third quarter of fiscal 2007.

Net loss for the third quarter of fiscal 2008 was $14.0 million or ($0.29) per share on a diluted basis, 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. This compares to a net loss for the second quarter of fiscal 2008 of $18.7 million or ($0.38) per share on a diluted basis, including $4.5 million or $0.09 per share of stock-based compensation, net of tax. Net income for the third quarter of fiscal 2007 was $22.2 million or $0.45 per share on a diluted basis, which included $3.7 million or $0.08 per share of stock-based compensation, net of tax.

"Despite continued semiconductor industry weakness, we made progress with our technology and business model," stated Mario Ruscev, chief executive officer of FormFactor. "That includes improving product performance and delivery, with continued emphasis on innovation to drive future growth. We are also building an organization with greater regionalization for stronger customer support, and refining our financial model."

The company has posted its revenue breakdown by region and market segment on the Investors section of its website at www.formfactor.com. FormFactor will conduct a conference call at 1:30 p.m. PDT, or 4:30 p.m. EDT, today. The public is invited to listen to a live 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 October 30, 2008 at 10:30 p.m. PDT and can be accessed by dialing 888-203-1112 (domestic) or 719-457-0820 (international) and entering confirmation code 1433310.

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 business momentum, 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: our ability to make progress with our technology and business model, our ability to improve product performance and delivery, our ability to continue to invest in innovation to drive future growth, our ability to build an organization with greater regionalization for stronger customer support and to refine our financial model, the demand for certain semiconductor devices, including DRAM devices, and the timing and extent of a semiconductor industry recovery. Additional information concerning factors that could cause actual events or results to differ materially from those in any forward-looking statement is contained in the company's Form 10-K for the fiscal year ended December 29, 2007 and the company's Form 10-Qs for the fiscal quarters ended March 29, 2008 and June 28, 2008, 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    Nine Months Ended
                                --------------------- ---------------------

                                 Sept. 27,  Sept. 29,  Sept. 27,  Sept. 29,
                                   2008       2007       2008       2007
                                ---------  ---------- ---------  ----------

 Revenues                       $  52,584  $  125,291 $ 170,300  $  341,686
 Cost of revenues                  40,583      58,609   134,626     156,563
                                ---------  ---------- ---------  ----------
 Gross margin                      12,001      66,682    35,674     185,123
                                ---------  ---------- ---------  ----------

 Operating expenses:
  Research and development         17,079      16,219    49,288      44,704
  Selling, general and
   administrative                  23,675      23,365    69,038      69,349
  Restructuring charge                141           -     8,684           -
                                ---------  ---------- ---------  ----------
   Total operating expenses        40,895      39,584   127,010     114,053
                                ---------  ---------- ---------  ----------
 Operating (loss) income          (28,894)     27,098   (91,336)     71,070

 Interest income, net               2,805       5,766    10,808      16,767
 Other income                         263         415       404         234
                                ---------  ---------- ---------  ----------
                                    3,068       6,181    11,212      17,001

 (Loss) income before income
  taxes                           (25,826)     33,279   (80,124)     88,071
 (Benefit) provision for income
  taxes                           (11,785)     11,056   (29,463)     29,532
                                ---------  ---------- ---------  ----------

 (Loss) net income              $ (14,041) $   22,223 $ (50,661) $   58,539
                                =========  ========== =========  ==========


  Basic                         $   (0.29) $     0.46 $   (1.04) $     1.23
                                =========  ========== =========  ==========

  Diluted                       $   (0.29) $     0.45 $   (1.04) $     1.19
                                =========  ========== =========  ==========

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

 Basic                             48,988      48,291    48,855      47,757
                                =========  ========== =========  ==========

 Diluted                           48,988      49,729    48,855      49,335
                                =========  ========== =========  ==========



                               FORMFACTOR, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
               (In thousands, except share and per share amounts)
                                 (Unaudited)

                                                      September   December
                                                      27, 2008    29, 2007
                                                     ----------  ----------
 ASSETS
 Current assets:
   Cash and cash equivalents                         $  427,614  $  315,232
   Marketable securities                                107,839     254,814
   Accounts receivable, net                              40,094      69,486
   Inventories                                           22,205      29,309
   Deferred tax assets                                   18,447      17,995
   Refundable income taxes                               27,179       2,043
   Prepaid expenses and other current assets             13,553      13,461
                                                     ----------  ----------
     Total current assets                               656,931     702,340

   Restricted cash                                          680       2,250
   Property and equipment, net                          121,382     130,882
   Deferred tax assets                                   14,927      10,038
   Other assets                                           7,518       9,812
                                                     ----------  ----------
     Total assets                                    $  801,438  $  855,322
                                                     ==========  ==========
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
   Accounts payable                                  $   30,043  $   42,893
   Accrued liabilities                                   20,768      30,029
   Income taxes payable                                   1,840       1,328
   Deferred revenue                                       5,437       5,535
   Deferred rent                                            455         462
                                                     ----------  ----------
     Total current liabilities                           58,543      80,247
   Long term income taxes payable                         7,414      12,248
   Deferred rent and other liabilities                    5,955       5,877
                                                     ----------  ----------
     Total liabilities                                   71,912      98,372
                                                     ----------  ----------

 Stockholders' equity
 Common stock, $0.001 par value                              49          49
 Additional paid-in capital                             597,556     573,553
 Accumulated other comprehensive income                     163         929
 Retained earnings                                      131,758     182,419
                                                     ----------  ----------
     Total stockholders' equity                         729,526     756,950
                                                     ----------  ----------
     Total liabilities and stockholders' equity      $  801,438  $  855,322
                                                     ==========  ==========