FormFactor, Inc. Announces Fourth Quarter 2007 Financial Results
February 5, 2008
Annual Revenues of $462.2 Million, Up 25% Year Over Year;
Quarterly Revenues of $120.5 Million, Up 22% Year Over Year; Company Also Announces Cost Reduction Plan
LIVERMORE, Calif., Feb 05, 2008 (BUSINESS WIRE) — FormFactor, Inc. (Nasdaq:FORM) today announced its financial results for the fourth quarter of fiscal year 2007, ended December 29, 2007. Quarterly revenues were $120.5 million, down 4% from $125.3 million in the third quarter of fiscal 2007, and up 22% from $98.7 million in the fourth quarter of fiscal 2006. Revenues for the fiscal year ended December 29, 2007 were $462.2 million, up 25% from $369.2 million in fiscal year 2006.
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 net income also included a $3.3 million, or $0.07 per share reduction related to a one-time up front tax payment to license intellectual property rights for future benefit in the FormFactor Singapore operation. This compares to net income for the third quarter of fiscal 2007 of $22.2 million or $0.45 per share on a fully diluted basis, which included $3.7 million or $0.08 per share of stock-based compensation, net of tax. Net income for the fourth quarter of fiscal 2006 was $17.5 million or $0.37 per share on a fully diluted basis, which included $4.5 million or $0.09 per share of stock-based compensation, net of tax.
Net income for fiscal year 2007 was $72.9 million or $1.47 per share on a fully diluted basis, which included $17.2 million, or $0.35 per share of stock-based compensation, net of tax, compared to net income of $57.2 million, or $1.21 per share on a fully diluted basis for fiscal year 2006, which included $15.5 million, or $0.33 per share of stock-based compensation, net of tax.
“Overall, 2007 was a solid year for FormFactor, with 25% annual revenue growth, fueled by strong contributions from our Memory business. Market conditions, particularly in DRAM, began to deteriorate in Q4 and that weakness has continued into Q1,” said Igor Khandros, CEO of FormFactor. “In light of this, we are taking actions to restructure the company to better align with the market environment.”
The company announced a cost reduction plan that will include reducing its global workforce by approximately 14%. FormFactor expects to record charges in the range of $4.0-$5.0 million related to the cost reduction plan, with the majority of the charges being recorded in the first quarter of fiscal 2008.
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 7, 2008 at 6:30 p.m. PST and can be accessed by dialing (888) 286-8010 or (617) 801-6888 and entering confirmation code 40225130.