FormFactor, Inc. Reports Third Quarter Results ￼￼
October 26, 2010
LIVERMORE, Calif. — October 26, 2010 — FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the third quarter of fiscal 2010, that ended on September 25, 2010. Quarterly revenues were $47.3 million, down 18% from $57.6 million in the second quarter of fiscal 2010, and up 8% from $43.8 million in the third quarter of fiscal 2009.
On a GAAP basis net loss for the third quarter of fiscal 2010 was $95.8 million or $(1.90) per fully- diluted share, compared to a net loss for the second quarter of fiscal 2010 of $33.9 million or $(0.68) per fully-diluted share and a net loss for the third quarter of fiscal 2009 of $23.9 million or $(0.48) per fully-diluted share. The third quarter of fiscal 2010 results include aggregated impairment charges of $55.4 million, or ($1.10) per fully diluted share, of which $3.4 million relates to impairments of certain long-lived assets and assets held for sale. The remaining $52.0 million results from an enterprise-wide impairment of our long lived assets recorded in accordance with ASC 360, Property, Plant and Equipment. A pre-tax restructuring charge of $8.5 million, or $(0.17) per fully diluted share, was also recorded in the third quarter of 2010 primarily related to employee termination benefits and costs of long-lived assets abandoned or impaired attributable to our decision to cease the transfer of manufacturing operations to Singapore.
On a Non-GAAP basis, net loss for the third quarter of fiscal 2010 was $27.7 million or $(0.55) per fully-diluted share, compared to a net loss for the second quarter of fiscal 2010 of $26.5 million or $(0.53) per fully-diluted share and a net loss for the third quarter of fiscal 2009 of $18.8 million or $(0.38) per fully-diluted share.
“We are making solid progress on qualifications of our Matrix platform at all major memory customers,” said Tom St. Dennis, CEO of FormFactor. “We are starting to see good adoption of the Matrix product and robust repeat orders. We remain focused on expense management, and we continue to make progress on our goal to bring our manufacturing structure and operating expenses in line with revenues.”
In other matters, the Board of Directors has authorized the repurchase of up to $50 million dollars worth of common stock. Under the authorized stock repurchase program, the company may repurchase shares from time to time on the open market; the pace of repurchase activity will depend on levels of cash generation, current stock price, and other factors. The stock repurchase authorization expires in 12 months and the program may be modified or discontinued at any time.
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 28th, 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 16405944.
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.