EX-99.01 2 a09-4084_1ex99d01.htm EX-99.01

EXHIBIT 99.01

 

News Release

 

Investor Contact:

 

Trade Press Contact:

Michael Magaro

 

David Viera

Investor Relations

 

Director of Corporate Communications

(925) 290-4321

 

(925) 290-4681

ir@formfactor.com

 

dviera@formfactor.com

 

FormFactor, Inc. Reports Fourth Quarter and Annual Results

 

LIVERMORE, Calif. — 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