TEMPE, Ariz.--(BUSINESS WIRE)--Benchmark Electronics, Inc. (NYSE: BHE), a global provider of engineering, design, and manufacturing services, today announced the appointment of Dr. Michael Slessor to its Board of Directors. Dr. Slessor brings more than 25 years of experience in the semiconductor industry. He is currently the CEO of FormFactor, Inc. (NASDAQ: FORM), a market leader in advanced wafer test solutions, which he joined with FormFactor's 2012 acquisition of MicroProbe where he also ser. ...

LIVERMORE, Calif., Sept. 16, 2025 (GLOBE NEWSWIRE) -- FormFactor, Inc. (NASDAQ: FORM), today announced management’s participation in the 17th Annual CEO Investor Summit 2025, being held Tuesday, October 7th at the Arrogant Butcher restaurant in Phoenix, Arizona. The presentation material utilized during the CEO Investor Summit will be made accessible on the events page of the Company’s website at www.formfactor.com. About the 17th Annual CEO Investor Summit 2025The CEO Investor Summit is held annually each ...

Core Viewpoint - FormFactor's recent earnings report shows mixed results, with revenues slightly declining year over year, while earnings per share exceeded estimates, indicating potential challenges ahead for the company [2][5]. Financial Performance - FormFactor reported Q2 2025 non-GAAP earnings of 27 cents per share, surpassing the Zacks Consensus Estimate by 10%, but down 23% year over year [2]. - Revenues for the quarter were $195.8 million, beating estimates by 2.87%, but decreased by 0.9% year over year [2]. - The gross margin contracted by 680 basis points year over year to 38.5%, while non-GAAP operating expenses decreased by 13.8% to $52.5 million [5]. Segment Revenue Breakdown - Probe card revenues accounted for 82.8% of total revenues at $162.1 million, down 2.8% year over year [3]. - Foundry and Logic revenues were $99.5 million, down 4.1% year over year, while DRAM revenues decreased by 1.6% to $57.1 million [3]. - Flash revenues increased by 7.8% to $5.5 million, and Systems revenues rose by 9.8% to $33.7 million [3]. Geographic Revenue Trends - Revenues from Taiwan, Japan, South Korea, and Singapore increased by 18.1%, 93.4%, 16.3%, and 48.9% year over year, respectively [4]. - Conversely, revenues from the United States, China, Europe, and the rest of the world declined by 14.6%, 62.5%, 18.2%, and 45.2% year over year, respectively [4]. Cash Flow and Balance Sheet - As of June 28, 2025, cash and cash equivalents totaled $249.3 million, down from $299 million as of March 29, 2025 [6]. - Cash generated from operating activities was $18.9 million, down from $23.5 million in the previous quarter, with free cash flow reported as negative $47.1 million [6]. Future Guidance - For Q3 2025, FormFactor expects revenues of $200 million (+/- $5 million) and a non-GAAP gross margin of 40% (+/- 1.5%) [7]. - The company anticipates non-GAAP earnings of 25 cents (+/- 4 cents) per share for the upcoming quarter [7]. Market Sentiment and Estimates - Since the earnings release, there has been a downward trend in estimates, with the consensus estimate shifting down by 26.95% [8][9]. - FormFactor currently holds a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the coming months [11]. Investment Scores - FormFactor has a subpar Growth Score of D and a Momentum Score of F, while holding a middle 20% score of C on the value side, resulting in an aggregate VGM Score of D [10].

Forward-looking Statements: LIVERMORE, Calif., Aug. 12, 2025 (GLOBE NEWSWIRE) -- FormFactor, Inc. (Nasdaq: FORM) (the "Company" or "FormFactor") today announced that Aric McKinnis, currently its Vice President and Corporate Controller, has been appointed to serve as the Company's new Senior Vice President and Chief Financial Officer. He succeeds Shai Shahar, who resigned from these positions effective August 8, 2025. Mr. Shahar will remain a FormFactor employee as Senior Vice President, Executive Advisor th ...

Key Takeaways Micron Technology (MU) and FormFactor (FORM) are both important players in the semiconductor ecosystem. Micron is a global leader in memory and storage solutions, while FormFactor provides advanced test and measurement technologies essential for chip manufacturing. These companies are positioned to benefit from surging demand in artificial intelligence (AI), advanced packaging and high-performance computing. However, their financial performance, growth strategies and valuations offer different ...

Core Viewpoint - FormFactor's Q2 earnings report did not meet investor expectations, but the overall assessment of the report is not entirely negative [1]. Financial Performance - The earnings report indicates that the company is facing challenges, but specific financial metrics and performance details are not provided in the text [1]. Investment Perspective - The analysis suggests a long-term investment horizon of 5-10 years, emphasizing a portfolio that includes a mix of growth, value, and dividend-paying stocks, with a focus on value [1].

Group 1: Earnings Performance - FormFactor reported quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.30 per share, and down from $0.35 per share a year ago, representing an earnings surprise of -10.00% [1] - The company posted revenues of $195.8 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.87%, but down from year-ago revenues of $197.47 million [2] - Over the last four quarters, FormFactor has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - FormFactor shares have lost about 21.1% since the beginning of the year, while the S&P 500 has gained 8.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.34 on revenues of $199.13 million, and for the current fiscal year, it is $1.20 on revenues of $763.63 million [7] Group 3: Industry Context - The Electronics - Semiconductors industry, to which FormFactor belongs, is currently in the top 28% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact FormFactor's stock performance [5] - The Zacks Rank for FormFactor is currently 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]

Financial Data and Key Metrics Changes - The company reported Q2 revenues of $195.8 million, exceeding the high end of the outlook range, with a 14.3% increase from Q1 and a 0.8% decrease year-over-year from Q2 2024 [14][21] - Non-GAAP gross margin for Q2 was 38.5%, at the low end of the range, and decreased from 39.2% in Q1 [16][18] - Non-GAAP operating income for Q2 was $22.8 million, a 35.2% increase from Q1, driven by higher revenues [19] - GAAP net income for Q2 was $9.1 million, or $0.12 per diluted share, compared to $6.4 million, or $0.08 per diluted share in Q1 [20] Business Line Data and Key Metrics Changes - Probe card segment revenues were $162.1 million in Q2, an 18.7% increase from Q1, driven by higher revenues in all markets, particularly Foundry and Logic and DRAM [14][15] - Foundry and Logic revenues increased to $100 million in Q2, a 16.7% increase from Q1, comprising 50.8% of total revenues [15] - DRAM revenues were $57.1 million in Q2, a 16.8% increase from Q1, with HBM revenues rising from $29.5 million in Q1 to $37 million in Q2 [15][16] - Systems segment revenues decreased to $33.7 million in Q2, down from $34.8 million in Q1, comprising 17.2% of total revenues [16] Market Data and Key Metrics Changes - The company continues to strengthen its leadership position in HBM probe cards, with expected growth in both HBM and DRAM overall [9] - The Foundry and Logic probe card market saw seasonal strength in Q2, but a moderate reduction in demand is expected in Q3 [10] - The company was recognized as the number one global supplier in both test subsystems and focused chip-making equipment categories in the annual Tech Insights 2025 Global Customer Satisfaction Survey [11] Company Strategy and Development Direction - The company is focused on advanced packaging and generative AI as key growth drivers, with expectations of semiconductor industry growth to a trillion dollars by the early next decade [5][6] - Strategic investments include a minority equity investment in FICT and the acquisition of a manufacturing facility in Farmers Branch, Texas, aimed at improving competitiveness and profitability [8][13] - The company aims to achieve a target financial model of 47% gross margin on $850 million of annual revenue, acknowledging recent performance has not demonstrated a clear path to that level [13][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that recent financial results, particularly gross margins, have not reflected the company's market leadership position, attributing this to product mix shifts and operational cost increases [7] - The company expects Q3 revenues of approximately $200 million, with a higher gross margin of around 40%, despite potential tariff impacts [24][25] - Management emphasized the importance of diversifying customer exposure to mitigate risks associated with individual customer volatility [62] Other Important Information - The company experienced a negative free cash flow of $47.1 million in Q2, primarily due to capital expenditures related to the Farmers Branch facility [21][22] - Total cash and investments at the end of Q2 were $253 million, a decrease of $50 million from Q1, largely due to the facility purchase [22] - The company has entered into a new $150 million revolving credit facility agreement to enhance financial flexibility [23] Q&A Session Summary Question: What is the residual customer ramp-up cost embedded in the Q3 gross margin guide? - Management confirmed no additional ramp-up costs are assumed in Q3 for the HBM customer [29][30] Question: Will the trend of higher sequential DRAM systems and lower sequential logic/foundry persist into Q4? - Management noted that while the PC and mobile markets remain weak, they are focusing on growth in areas driven by generative AI and advanced packaging [31][33] Question: What are the key factors that can help bridge the gross margin gap to target levels? - Management identified volume growth, operational cost reductions, and expanding Foundry and Logic market share as key components to improve gross margins [42][44] Question: What impact will the new Texas facility have on the P&L? - Management indicated that the facility is expected to lower operational costs in the long term, but immediate impacts on the P&L will be assessed as progress is made [48][49] Question: What is the status of the hyperscaler and GPU customer contributions? - Management reported progress in qualifying for GPU testing and noted contributions from hyperscaler custom ASICs in Q2, with expectations for revenue growth in the second half [70][72]

Financial Data and Key Metrics Changes - The company reported Q2 revenues of $195.8 million, exceeding the high end of the outlook range, with a 14.3% increase from Q1 and a 0.8% decrease year-over-year from Q2 2024 [15][16] - Non-GAAP gross margin for Q2 was 38.5%, down from 39.2% in Q1, primarily due to lower margins in the Systems segment and increased manufacturing costs [17][19] - Non-GAAP operating income for Q2 was $22.8 million, a 35.2% increase from Q1, driven by higher revenues despite lower gross margins [21] - GAAP net income for Q2 was $9.1 million, or $0.12 per diluted share, compared to $6.4 million, or $0.08 per diluted share in Q1 [22] Business Line Data and Key Metrics Changes - Probe card segment revenues were $162.1 million in Q2, an 18.7% increase from Q1, with significant growth in Foundry and Logic and DRAM markets [15][16] - Foundry and Logic revenues increased to $100 million in Q2, a 16.7% increase from Q1, representing 50.8% of total company revenues [16] - DRAM revenues were $57.1 million in Q2, up 16.8% from Q1, with HBM revenues increasing from $29.5 million in Q1 to $37 million in Q2 [16][18] - Systems segment revenues decreased to $33.7 million in Q2, down from $34.8 million in Q1, comprising 17.2% of total revenues [17] Market Data and Key Metrics Changes - The company continues to strengthen its leadership position in the HBM probe card market, with expectations of continued growth in both HBM and DRAM [9][10] - The Foundry and Logic probe card market saw seasonal strength in Q2, but a moderate reduction in demand is expected in Q3 [10][11] - The Systems segment is driven by advancements in co-package optics and quantum computing, with pilot production systems running for primary customers [12] Company Strategy and Development Direction - The company is focused on advanced packaging and generative AI as key growth drivers, positioning itself as a leading supplier of probe cards and systems [5][6] - Strategic investments include a minority equity investment in FICT and the acquisition of a manufacturing facility in Texas to enhance competitiveness and lower operational costs [7][8] - The company aims to achieve a target financial model of 47% gross margin on $850 million of annual revenue, acknowledging recent performance has not met this target [13][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that recent financial results, particularly gross margins, have not reflected the company's market leadership, attributing this to product mix shifts and operational cost increases [6][27] - The company expects Q3 revenues to be around $200 million, with a higher gross margin of approximately 40%, despite potential tariff impacts [26][27] - Management remains optimistic about long-term growth prospects in the semiconductor industry, projecting significant growth driven by advanced packaging and generative AI [5][79] Other Important Information - The company experienced a negative free cash flow of $47.1 million in Q2, primarily due to capital expenditures related to the Texas facility acquisition [23][24] - Total cash and investments at the end of Q2 were $253 million, a decrease of $50 million from Q1, largely due to the facility purchase [24][25] - The company has entered into a new $150 million revolving credit facility to enhance financial flexibility [25] Q&A Session Summary Question: How much residual customer or HBM product cost is still embedded in the third quarter gross margin guide? - Management confirmed no additional ramp-up costs are assumed in Q3 for the HBM customer [30][31] Question: Do you think the trend of higher sequential DRAM systems and lower sequential logic/foundry could persist in Q4? - Management indicated that while the PC and mobile markets remain weak, they are focusing on growth in areas driven by generative AI and custom ASICs [32][34] Question: What impact will the new facility in Texas have on the P&L over the next few quarters? - Management stated that the facility is expected to lower operational costs in the medium term, but no immediate impact on the P&L is anticipated until it is operational [48][50] Question: What is the expected contribution from hyperscaler and GPU customers in the second half of the year? - Management noted that there has been progress in qualifying for GPU testing and expects revenue contributions from hyperscalers and custom ASICs in the second half [74][75] Question: What are the expected impacts of tariffs on gross margins? - Management acknowledged that tariffs are expected to have a significant impact on gross margins, with ongoing efforts to mitigate these effects [94][95]

Company Overview - FormFactor has a global presence with approximately 2,200 employees and manufactures over 115 million MEMS probes annually[7] - The company's trailing twelve months (TTM) revenue as of June 28, 2025, was $765 million[7] Financial Performance - In 2024, FormFactor's revenue was $764 million, non-GAAP EPS was $1.15, and free cash flow was $83 million[20] - The company's target model aims for $850 million in revenue, a non-GAAP gross margin of 47%, and non-GAAP diluted earnings per share of $2.00[90] Market Position and Growth - The advanced probe card market is estimated to be $2.6 billion in 2027[83] - FormFactor is targeting above-market growth in engineering systems, aiming for a 5%+ CAGR compared to the market's 3% CAGR[86] Industry Recognition - FormFactor was named the 1 global supplier in Test Subsystems and Focused Chip Making Equipment in TechInsights' 2025 customer satisfaction survey[25] - Intel recognized FormFactor with the 2024 EPIC Distinguished Supplier Award[35] Recent Financial Results - In Q1 2025, FormFactor's revenue was $171.4 million, with a gross margin of 39.2% and diluted EPS of $0.23[109] - In Q2 2025, revenue reached $195.8 million, but gross margin was 38.5% and diluted EPS was $0.27[109]