UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 8-K

 


 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): February 1, 2011

 


 

FormFactor, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware

 

000-50307

 

13-3711155

(State or other jurisdiction
of incorporation)

 

(Commission File Number)

 

(IRS Employer
Identification No.)

 

7005 Southfront Road

 

 

Livermore, California

 

94551

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: (925) 290-4000

 

N/A

(Former name or former address if changed since last report)

 


 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Item 2.02                                             Results of Operations and Financial Condition.

 

On February 1, 2011, FormFactor, Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter and fiscal year ended December 25, 2010.  A copy of the press release is furnished as Exhibit 99.01 to this report and is incorporated herein by reference.

 

Item 9.01                                             Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit Number

 

Title and Description

 

99.01

 

Press release dated February 1, 2011.

 

The information in this current report and the accompanying exhibit shall not be incorporated by reference into any filing of FormFactor with the Securities and Exchange Commission, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing. The information in this report and the accompanying exhibit shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.

 

2



 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

FormFactor, Inc.

 

(Registrant)

 

 

 

Date: February 1, 2011

By:

/s/ Stuart L. Merkadeau

 

 

Stuart L. Merkadeau

 

 

Senior Vice President, General Counsel and Secretary

 

3



 

EXHIBIT INDEX

 

Exhibit Number

 

Title and Description

 

99.01

 

Press release dated February 1, 2011.

 

4


Exhibit 99.01

 

 

News Release

 

Investor Contact:

Stan Finkelstein

Investor Relations

(925) 290-4321

ir@formfactor.com

 

FormFactor, Inc. Reports Fourth Quarter and Annual Results

2010 Revenue $188.6 million, up $53.2 million, 39 percent growth year-over-year

 

LIVERMORE, Calif. — February 1, 2011 — FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the fourth quarter of fiscal 2010, that ended on December 25, 2010. Quarterly revenues were $43.9 million, down 7% from $47.3 million in the third quarter of fiscal 2010, and up 33% from $33.0 million in the fourth quarter of fiscal 2009.

 

For fiscal 2010, FormFactor posted revenue of $188.6 million, up 39% from $135.3 million in fiscal 2009.

 

On a GAAP basis net loss for the fourth quarter of fiscal 2010 was $20.4 million or $(0.40) per fully-diluted share, compared to a net loss for the third quarter of fiscal 2010 of $95.8 million or $(1.90) per fully-diluted share and a net loss for the fourth quarter of fiscal 2009 of $28.0 million or $(0.56) per fully-diluted share. Net loss for the fiscal 2010 was $188.3 million or $(3.75) per share, compared to a net loss for fiscal 2009 of $155.7 million or $(3.15) per share.

 

On a Non-GAAP basis, net loss for the fourth quarter of fiscal 2010 was $14.9 million or $(0.29) per fully-diluted share, compared to a net loss for the third quarter of fiscal 2010 of $27.7 million or $(0.55) per fully-diluted share and a net loss for the fourth quarter of fiscal 2009 of $22.2 million or $(0.45) per fully-diluted share. On a non-GAAP basis, net loss for fiscal 2010 was $98.4 million or $(1.96) per share, compared to a net loss for fiscal 2009 of $87.3 million or $(1.76) per share. A reconciliation of GAAP to non-GAAP net loss and net loss per share is provided in the schedules included below.

 

“Our fourth quarter results demonstrate progress we are making to streamline our cost structure and improve cash burn rate, while continuing to develop and introduce new products,” said Tom St. Dennis, CEO of FormFactor. “Our Matrix platform continues to gain traction at all major customers with most of our full wafer contactor business now transitioned to Matrix product family”.

 

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. PST, or 4:30 p.m. EST, 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 through February 3, 2011, 9:00 p.m. Pacific Standard Time, and can be accessed by dialing (800) 642-1687 (domestic) or (706) 645-9291 (international) and entering confirmation code 35076660.

 



 

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.< /p>

 

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.  Such forward-looking statements include but are not limited to, projections, statements regarding business momentum, demand for our products and future growth, statements that contain words like “expects,” “anticipates,” “believes,” and the assumptions upon which such statements are based. 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 and Flash memory devices and certain other semiconductor devices, the company’s ability to complete qualification of its Matrix platform products for both DRAM and Flash memory applications at major memory customers; the rate at which semiconductor manufacturers adopt the company’s Matrix platform products and request repeat orders; the company’s ability to bring its manufacturing structure and operating expenses in line with revenues; and the scope and extent to which the company repurchases any stock under its authorized stock repurchase program.  Additional information concerning factors that could cause actual events or results to differ materially from those in any forward-looking statement can be found in pages 13 through 33 of the company’s Form 10-K for the fiscal year ended December 26, 2009, as filed with the U.S. Securities and Exchange Commission, or SEC, and subsequent SEC filings, including in pages 30 through 33 of the company’s Form 10-Q for the fiscal period ended March 27, 2010, in page s 29 through 31 of the company’s Form 10-Q for the fiscal period ended June 26, 2010, and in pages 35 through 37 of the company’s Form 10-Q for the fiscal period ended September 25, 2010. 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

 

Twelve Months Ended

 

 

 

Decmber 25,

 

December 26,

 

Decmber 25,

 

December 26,

 

 

 

2010

 

2009

 

2010

 

2009

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

43,912

 

$

32,995

 

$

188,565

 

$

135,335

 

Cost of revenues *

 

40,593

 

35,141

 

190,837

 

134,516

 

Gross profit (loss)

 

3,319

 

(2,146

)

(2,272

)

819

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Research and development

 

11,476

 

15,686

 

55,389

 

57,509

 

Selling, general and administrative

 

14,398

 

16,489

 

67,208

 

78,428

 

Restructuring charges

 

1,305

 

837

 

15,908

 

8,780

 

Impairment of long-lived assets *

 

 

656

 

56,401

 

1,288

 

Total operating expenses

 

27,179

 

33,668

 

194,906

 

146,005

 

Operating loss

 

(23,860

)

(35,814

)

(197,178

)

(145,186

)

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

426

 

711

 

2,546

 

3,282

 

Other income (expense), net

 

431

 

385

 

4,426

 

(535

)

Loss before income taxes

 

(23,003

)

(34,718

)

(190,206

)

(142,439

)

Provision for (benefit from) income taxes

 

(2,592

)

(6,755

)

(1,920

)

13,214

 

Net loss

 

$

(20,411

)

$

(27,963

)

$

(188,286

)

$

(155,653

)

 

 

 

 

 

 

 

 

 

 

Net loss per share:

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

$

(0.40

)

$

(0.56

)

$

(3.75

)

$

(3.15

)

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

50,573

 

49,755

 

50,246

 

49,483

 

 

Reconciliation of Non-GAAP Net loss:

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

Decmber 25,

 

December 26,

 

Decmber 25,

 

December 26,

 

 

 

2010

 

2009

 

2010

 

2009

 

 

 

 

 

 

 

 

 

 

 

GAAP Net loss

 

$

(20,411

)

$

(27,963

)

$

(188,286

)

$

(155,653

)

Deferred tax valuation allowance

 

 

 

 

44,683

 

Stock-based compensation, net of related income-tax impact **

 

4,242

 

4,364

 

17,613

 

16,542

 

Restructuring charges, net of related income-tax impact**

 

1,305

 

787

 

15,908

 

5,805

 

Impairment of long-lived assets, net of related income-tax impact **

 

 

656

 

56,401

 

1,288

 

Non-GAAP Net loss

 

$

(14,864

)

$

(22,156

)

$

(98,364

)

$

(87,335

)

 

 

 

 

 

 

 

 

 

 

Non-GAAP Net loss per share:

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

$

(0.29

)

$

(0.45

)

$

(1.96

)

$

(1.76

)

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

50,573

 

49,755

 

50,246

 

49,483

 

 


* Certain amounts were reclassified from Cost of Revenue to Impairment Charges for Q4’09 and FY2009.

 

**  There was no related income tax impact to stock based compensation, restructuring and impairment charges in the third and fourth quarters of fiscal 2009 and fiscal 2010 as a result of the valuation allowance recorded after the second quarter of fiscal 2009.

 



 

FORMFACTOR, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

(Unaudited)

 

 

 

December 25,

 

December 26,

 

 

 

2010

 

2009

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

121,207

 

$

122,043

 

Marketable securities

 

226,028

 

327,192

 

Restricted cash

 

383

 

 

Accounts receivable, net

 

28,598

 

29,412

 

Inventories

 

25,764

 

25,548

 

Deferred tax assets, net

 

329

 

3,296

 

Refundable income taxes

 

 

26,774

 

Prepaid expenses and other current assets

 

13,982

 

12,346

 

Total current assets

 

416,291

 

546,611

 

 

 

 

 

 

 

Restricted cash

 

297

 

680

 

Property and equipment, net

 

37,311

 

97,758

 

Deferred tax assets, net

 

5,445

 

2,202

 

Other assets

 

6,710

 

8,717

 

Total assets

 

$

466,054

 

$

655,968

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

14,948

 

$

29,250

 

Accrued liabilities

 

24,045

 

23,417

 

Income taxes payable

 

1,894

 

481

 

Deferred revenue

 

4,637

 

10,856

 

Total current liabilities

 

45,524

 

64,004

 

Long-term income taxes payable

 

4,248

 

6,423

 

Deferred rent and other liabilities

 

5,081

 

5,626

 

Deferred tax liability

 

 

2,134

 

Total liabilities

 

54,853

 

78,187

 

Stockholders’ equity

 

 

 

 

 

Common stock, $0.001 par value

 

52

 

50

 

Additional paid-in capital

 

651,263

 

630,333

 

Accumulated other comprehensive income

 

2,027

 

1,253

 

Retained earnings (accumulated deficit)

 

(242,141

)

(53,855

)

Total stockholders’ equity

 

411,201

 

577,781

 

Total liabilities and stockholders’ equity

 

$

466,054

 

$

655,968