August 01, 2012 at 16:05 PM EDT
FormFactor, Inc. Reports Second Quarter Results

LIVERMORE, CA -- (Marketwire) -- 08/01/12 -- FormFactor, Inc. (NASDAQ: FORM) today announced its financial results for the second quarter of fiscal 2012 that ended on June 30, 2012. Quarterly revenues were $54.8 million, up 57% from $34.8 million in the first quarter of fiscal 2012, and up 18% from $46.6 million in the second quarter of fiscal 2011.

On a GAAP basis, net loss for the second quarter of fiscal 2012 was $4.2 million, or $(0.08) per fully-diluted share, compared to a net loss for the first quarter of fiscal 2012 of $17.5 million or $(0.35) per fully-diluted share, and a net loss for the second quarter of fiscal 2011 of $7.7 million or $(0.15) per fully-diluted share. The results for the second quarter of fiscal 2012 include the release of certain liabilities related to uncertain tax positions in the amount of $1.6 million, or $0.03 per fully diluted share. The results for the second quarter of fiscal 2011 include an income tax valuation allowance release of $2.5 million or $0.05 per fully diluted share. The company also recorded a restructuring benefit of $1.1 million, or $0.02 per fully diluted share, in the second quarter of 2011 related primarily to the termination of a lease obligation for its manufacturing facility in Singapore.

On a Non-GAAP basis, net loss for the second quarter of fiscal 2012 was $0.5 million, or $(0.01) per fully-diluted share, compared to a net loss for the first quarter of fiscal 2012 of $14.3 million or $(0.29) per fully-diluted share, and a net loss for the second quarter of fiscal 2011 of $8.9 million or $(0.17) per fully-diluted share. A reconciliation of GAAP to non-GAAP net loss and net loss per share is provided in the schedules included below.

Cash usage for the second quarter of fiscal 2012 was $2.6 million, compared to cash usage of $16.4 million for the first quarter of fiscal 2012 and cash usage of $8.0 million for the second quarter of fiscal 2011. There was no stock buyback during the first and second quarters of fiscal 2012, compared to a stock buyback of $1.0 million for the second quarter of fiscal 2011.

"Q2 was a strong revenue quarter for FormFactor as our manufacturing performance, including lead time improvements, enabled us to meet accelerated demand for certain products," said Tom St. Dennis, CEO of FormFactor. "Exiting Q2, softening demand in the personal computer and mobile device markets and macroeconomic headwinds continue to temper our second half outlook."

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 webcast of FormFactor's conference call on the Investors section of the company's website at www.formfactor.com. A telephone replay of the conference call will be available approximately two hours after the conclusion of the call. The telephone replay will be available through August 3, 2012, 9:00 p.m. Pacific Daylight Time, and can be accessed by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) and entering confirmation code 10463984. Additionally, the replay will be available on the Investors section of our website, www.formfactor.com.

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.

About FormFactor:
Founded in 1993, FormFactor, Inc. (NASDAQ: FORM) is a leader in advanced wafer probe cards, which are used by semiconductor manufacturers to electrically test integrated circuits, or ICs. The company's wafer sort, burn-in and device performance testing products move IC testing upstream from post-packaging to the wafer level, enabling semiconductor manufacturers to lower their overall production costs, improve yields, and bring next-generation devices to market. FormFactor is headquartered in Livermore, California with operations in Europe, Asia and North America. For more information, visit the company's website at www.formfactor.com.

FormFactor and the FormFactor logo are registered trademarks of FormFactor, Inc. All other product, trademark, company or service names mentioned herein are the property of their respective owners.

Forward-looking Statements:
Statements in this press release that are not strictly historical in nature are forward-looking statements within the meaning of the federal securities laws, including statements regarding anticipated results, market conditions, expectations and operating plans. These forward-looking statements are based on current information and expectations that are inherently subject to change and involve a number of risks and uncertainties. Actual events or results might differ materially from those in any forward-looking statement due to various factors, including, but not limited to: changes in the market environment, including the demand for DRAM, Flash memory and system on chip, or SoC, devices and certain other semiconductor devices; global macroeconomic concerns; and the company's ability to align its manufacturing structure and operating expenses with revenues. Additional information concerning factors that could cause actual events or results to differ materially from those in any forward-looking statement is contained in the company's Form 10-K for the fiscal year ended December 31, 2011, as filed with the SEC. Copies of the company's SEC filings are available at http://investors.formfactor.com/edgar.cfm. The company assumes no obligation to update the information in this press release, to revise any forward-looking statements or to update the reasons actual results could differ materially from those anticipated in forward-looking statements.

FORM-F


                              FORMFACTOR, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  (In thousands, except per share amounts)
                                 (Unaudited)


                                  Three Months Ended       Year to Date
                                 --------------------  --------------------
                                  June 30,   June 25,   June 30,   June 25,
                                    2012       2011       2012       2011
                                 ---------  ---------  ---------  ---------

  Revenues                       $  54,813  $  46,558  $  89,619  $  86,987
  Cost of revenues                  38,646     36,668     69,296     73,027
                                 ---------  ---------  ---------  ---------
  Gross profit                      16,167      9,890     20,323     13,960
                                 ---------  ---------  ---------  ---------

  Operating expenses:
    Research and development        10,935     10,878     21,782     22,438
    Selling, general and
     administrative                 11,531     11,154     22,679     23,541
    Restructuring charges, net         136     (1,099)       103        (60)
    Impairment of long-lived
     assets                             61          -        229        351
                                 ---------  ---------  ---------  ---------
      Total operating expenses      22,663     20,933     44,793     46,270
                                 ---------  ---------  ---------  ---------
  Operating loss                    (6,496)   (11,043)   (24,470)   (32,310)

  Interest income, net                 182        369        394        793
  Other income (expense), net          546        584        956        210
                                 ---------  ---------  ---------  ---------
  Loss before income taxes          (5,768)   (10,090)   (23,120)   (31,307)
  Provision for (benefit from)
   income taxes                     (1,551)    (2,412)    (1,449)    (2,205)
                                 ---------  ---------  ---------  ---------

  Net loss                       $  (4,217) $  (7,678) $ (21,671) $ (29,102)
                                 =========  =========  =========  =========

  Net loss per share:
      Basic and Diluted          $   (0.08) $   (0.15) $   (0.44) $   (0.57)
                                 =========  =========  =========  =========

Weighted-average number of
 shares used in per share
 calculations:

      Basic and Diluted             49,817     50,773     49,652     50,705
                                 =========  =========  =========  =========

Reconciliation of Non-GAAP Net
 Loss:
                                  Three Months Ended       Year to Date
                                 --------------------  --------------------
                                  June 30,   June 25,   June 30,   June 25,
                                    2012       2011       2012       2011
                                 ---------  ---------  ---------  ---------

  GAAP net loss                  $  (4,217) $  (7,678) $ (21,671) $ (29,102)
    Stock-based compensation,
     net of related income-tax
     impact *                        3,478      2,353      6,521      6,321
    Restructuring charges, net
     of related income-tax
     impact *                          136     (1,099)       103        (60)
    Impairment of long-lived
     assets, net of related
     income-tax impact *                61          -        229        351
    Income tax valuation
     allowance release                   -     (2,450)         -     (2,450)
                                 ---------  ---------  ---------  ---------
  Non-GAAP net loss              $    (542) $  (8,874) $ (14,818) $ (24,940)
                                 =========  =========  =========  =========

  Non-GAAP net loss per share:
      Basic and Diluted          $   (0.01) $   (0.17) $   (0.30) $   (0.49)
                                 =========  =========  =========  =========

Weighted-average number of
 shares used in per share
 calculations:
      Basic and Diluted             49,817     50,773     49,652     50,705
                                 =========  =========  =========  =========

* There was no related income tax impact to stock-based compensation,
restructuring and impairment charges in fiscal 2012 and fiscal 2011 as a
result of the valuation allowance recorded after the second quarter of
fiscal 2009.



                              FORMFACTOR, INC.
                   CONDENSED CONSOLIDATED BALANCE SHEETS
                               (In thousands)
                                 (Unaudited)


                                                  June 30,     December 31,
                                                    2012           2011
                                               -------------  -------------
ASSETS
Current assets:
  Cash and cash equivalents                    $     144,823  $     139,049
  Marketable securities                              132,901        157,642
  Accounts receivable, net                            27,726         12,662
  Inventories                                         20,507         18,092
  Deferred tax assets                                    727          1,162
  Prepaid expenses and other current assets            7,229          8,368
                                               -------------  -------------
    Total current assets                             333,913        336,975
Restricted cash                                          317            317
Property, plant and equipment, net                    34,225         35,132
Deferred tax assets                                    5,818          5,954
Other assets                                           4,081          4,693
                                               -------------  -------------
    Total assets                               $     378,354  $     383,071
                                               =============  =============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable                             $      17,833  $       9,731
  Accrued liabilities                                 16,107         13,966
  Income taxes payable                                   278            100
  Deferred revenue                                     6,232          4,798
                                               -------------  -------------
    Total current liabilities                         40,450         28,595
Long-term income taxes payable                         1,337          4,112
Deferred rent and other liabilities                    4,158          3,712
                                               -------------  -------------
    Total liabilities                                 45,945         36,419
                                               -------------  -------------
Stockholders' equity:
  Common stock and capital in excess of par
   value                                             659,881        652,074
  Accumulated other comprehensive income               2,321          2,700
  Accumulated deficit                               (329,793)      (308,122)
                                               -------------  -------------
    Total stockholders' equity                       332,409        346,652
                                               -------------  -------------
    Total liabilities and stockholders' equity $     378,354  $     383,071
                                               =============  =============

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Investor Contact:
Stan Finkelstein
Investor Relations
(925) 290-4321
Email Contact

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