FormFactor, Inc. Updates Fourth Quarter Revenue Guidance
December 17, 2008
LIVERMORE, Calif. — December 17, 2008 — FormFactor, Inc. (Nasdaq: FORM) today announced that it expects revenue and earnings per share for fiscal fourth quarter 2008 to be below the financial guidance previously provided on October 28, 2008. The company now expects revenue to be between $37 to $41 million, lower than the previous expectation of $48 to $55 million, and earnings per share, operating expenses and gross margins to be below the guidance previously communicated.
The lower than expected results are due primarily to increased weakness among memory customers. This weakness has resulted in a decrease in design activity and a delay in technology transitions, which are negatively impacting FormFactor’s revenue and profitability.
“We have been experiencing very difficult conditions in the memory market over the past several quarters and have been taking appropriate actions to reduce our cost structure while still investing in our technology for the future,” said Mario Ruscev, CEO. “Unfortunately, conditions have worsened over the last few weeks, which require us to revise our expectations and re-evaluate the alignment of our operating plans and structure with business conditions.”
The company plans to release its financial results for its fourth quarter on January 28, 2009, and will provide more details at that time.