FormFactor, Inc. Lowers 2004 Fourth Quarter Financial Outlook
December 6, 2005
LIVERMORE, Calif., December 6, 2005 — FormFactor, Inc. (Nasdaq:FORM) today announced it is lowering its expected outlook for its fiscal fourth quarter ended December 25, 2004.
Preliminary revenue of $46.1 million for the fourth quarter was lower than the Company’s guidance of $50.0 – $53.0 million. Preliminary bookings for the fourth quarter were $40.7 million. Fourth quarter bookings did not materially affect the Company’s fourth quarter revenues. The revenue shortfall was caused primarily by contamination problems in the Company’s existing wafer production line during the end of the fourth quarter, which reduced yields and delayed shipments on existing customer orders.
Earnings per share for the fourth quarter are expected to be $0.06 less than the initial guidance of $0.18 – $0.19 per fully diluted share, due to the decline in revenues as well as increased spending to further accelerate bringing the Company’s new manufacturing facility on line.
Igor Khandros, CEO stated, “We have identified root causes of the wafer yield loss and are implementing corrective action steps.” Joe Bronson, President, added, “In the fourth quarter we accelerated the start up of our new factory, which should help address any capacity constraints.”
FormFactor will conduct a conference call at 2:00 p.m. PDT, or 5:00 p.m. EDT, today. The reserved participants dial-in number for the United States and Canada is (877) 378-0519 or for international participants (706) 679-0855. The conference ID is 3222925. 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. A replay of the web cast will be available approximately two hours after the conclusion of the call. 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 January 8, 2005 at 9:00 p.m. PDT and can be accessed by dialing (800) 642-1687 or (706) 645-9291 and entering conference ID code 3222925.