FormFactor, Inc. Reports Second Quarter Results
July 27, 2010
LIVERMORE, Calif. — July 27, 2010 — FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the second quarter of fiscal 2010, which ended on June 26, 2010. Quarterly revenues were $57.6 million, up 45.1% from $39.7 million in the first quarter of fiscal 2010, and up 84.6% from $31.2 million in the second quarter of fiscal 2009.
Net loss for the second quarter of fiscal 2010 was $33.9 million or $(0.68) per fully-diluted share, compared to a net loss for the first quarter of fiscal 2010 of $38.2 million or $(0.77) per fully-diluted share and a net loss for the second quarter of fiscal 2009 of $65.8 million or $(1.33) per fully-diluted share. On a Non-GAAP basis, net loss for the second quarter of fiscal 2010 was $27.5 million or $(0.55) per fully-diluted share, compared to a net loss for the first quarter of fiscal 2010 of $29.4 million or $(0.59) per fully-diluted share and a net loss for the second quarter of fiscal 2009 of $16.3 million or $(0.33) per fully-diluted share.
The second quarter of fiscal 2010 includes a pre-tax restructuring charge of $5.8 million, or $(0.12) per fully diluted share, for severance benefits and the impairment of certain long-lived assets. The restructuring charge is part of an overall cost reduction plan that includes a workforce reduction announced on June 16, 2010. Offsetting this charge is a benefit of $3.3 million, or $0.07 per fully diluted share, for the rescission of severance arrangements previously provided to certain Livermore manufacturing personnel in Q1 2010. The rescission was also a part of the overall cost reduction plan and reflects the company’s decision to discontinue plans for Korea manufacturing operations and slow its transition of certain manufacturing operations to Singapore.
Separate from these restructuring charges, the company also recorded an expense of $0.6 million, or $(0.01) per fully diluted share, for severance agreements, including stock option modifications, with former executives.
“The increased demand for semiconductors has contributed to sequential quarterly revenue growth for our company,” said Carl Everett, CEO of FormFactor. “We remain focused on improving our operating efficiency and returning to profitability. To do this, we continue to make adjustments to our company and products that will best serve our customers’ needs.”
The company has posted its revenue breakdown by region and market 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 July 29th, 2010 at 9:00 p.m. PDT, and can be accessed by dialing (800) 642-1687 (domestic) or (706) 645-9291 (international) and entering confirmation code 86662040.
Non-GAAP Financial Measures:
This press release highlights the company’s financial results on both a GAAP and a non-GAAP basis. The GAAP results include certain charges that are excluded from non-GAAP results. By publishing the non-GAAP measures, management intends to provide investors with additional information to further analyze the company’s performance, core results and underlying trends. FormFactor’s management evaluates results and makes operating decisions using both GAAP and non-GAAP measures included in this press release. Non-GAAP results are not prepared in accordance with GAAP, and non-GAAP information should be considered a supplement to, and not a substitute for, financial statements prepared in accordance with GAAP. Investors and potential investors are encouraged to review the reconciliation of non-GAAP financial measures to their most directly comparable GAAP measures attached to this press release.