Financial Data and Key Metrics - Q3 revenue reached $207.9 million, exceeding the outlook range and setting an all-time company record [31] - Non-GAAP gross margin was 42.2%, 0.8 percentage points below the midpoint of the range [31] - Q3 revenue increased 5.3% sequentially and 21.2% year-over-year [32] - Non-GAAP EPS was at the top end of the outlook range [31] - Free cash flow increased to $20 million in Q3 from $14.2 million in Q2 [45][47] Business Line Data and Key Metrics - Probe-card segment revenue was $172.2 million in Q3, up 3.2% sequentially, driven by higher Foundry & Logic and DRAM revenues [33] - Foundry & Logic revenue was $107 million in Q3, up 3.7% sequentially, but decreased to 51.7% of total revenue [34] - DRAM revenue set a record at $60.2 million in Q3, up 3.7% sequentially, but decreased to 28.9% of total revenue [34] - HBM revenue declined to $29 million in Q3 from a record $43 million in Q2 [35] - System segment revenue was $35.7 million in Q3, up $5.1 million sequentially, comprising 17.2% of total revenue [33] Market Data and Key Metrics - DRAM probe-card revenue set a third consecutive quarterly record, driven by DDR5 and HBM [7][13] - HBM revenue declined in Q3 due to customer digestion after record shipments in previous quarters [13] - Foundry & Logic demand is expected to decline in Q4 due to weakness in mobile handsets and client PCs [21] - HBM4 activity is beginning, positioning the company well for future growth in high-performance memory [14] Company Strategy and Industry Competition - The company’s diversification strategy across Foundry & Logic, DRAM, and Flash probe-cards differentiates it from competitors [10] - The company aims to expand its market position in Foundry & Logic through new customer qualifications and products [22] - The system segment is focused on solving complex electro-optical test challenges in areas like quantum computing and silicon photonics [24] - Co-packaged optics using silicon photonics is a key growth opportunity for the company [25][26] Management Commentary on Operating Environment and Future Outlook - The company expects Q4 revenue of $190 million, with a slight increase in DRAM and system segment revenues offset by a decrease in Foundry & Logic [50] - Non-GAAP gross margin for Q4 is expected to be 41%, plus or minus 150 basis points [50] - The company remains committed to achieving its target model of $2 non-GAAP EPS on $850 million revenue with 47% gross margin [43][44] - The company anticipates continued growth in DRAM probe-card revenue, driven by DDR5 and HBM [14] Other Important Information - The company repurchased $16.9 million of shares in Q3 under its $75 million buyback program [49] - Capital expenditures in Q3 were $8.9 million, with full-year 2024 CapEx expected to be near the midpoint of the $35 million to $45 million range [48] - The company had $360 million in cash and investments at the end of Q3 [45] Q&A Session Summary Question: Weakness in Foundry & Logic demand - The company is seeing softness in client PC and mobile handset markets, which is impacting Foundry & Logic demand [54] - The company is working to diversify its Foundry & Logic business by qualifying for AI-driven applications like GPUs [55] Question: HBM revenue growth and digestion - HBM revenue declined in Q3 due to expected customer digestion after record shipments in Q2 [57] - HBM revenue is expected to grow sequentially in Q4, driven by resumption of spending by the leading HBM provider and activity from another DRAM customer [58] Question: HBM transition and probe-card growth - The transition from HBM3 to HBM4 will drive demand for new probe-cards due to increased test intensity and complexity [62][65] - Probe-card growth is decoupled from tester growth, as probe-cards are specific to each customer chip design [63] Question: Revenue from China - Domestic China revenue increased in Q3, but this is not expected to be sustainable due to geopolitical issues [69][70] - The company divested its China operations earlier this year and now operates through a distributor [71] Question: HBM yield dynamics and revenue growth - Low yields in HBM are driving high test intensity, and yields are not expected to improve significantly due to the rapid pace of industry transitions [74][75] - The company expects HBM revenue to grow in 2025, driven by hyperscaler AI spending and transitions to HBM3e and HBM4 [91][93] Question: Gross margin guidance for Q4 - The decrease in Q4 gross margin guidance is primarily due to lower revenue volume, with no major impact from product mix [99][100] Question: Co-packaged optics timeline - Co-packaged optics is expected to reach volume production in late 2025 or early 2026 [120][121] Question: Traditional DRAM market - The company is surprised by the strength in DDR5, which contributed to record DRAM revenue in Q3 [113] Question: System segment cost issues - Unexpected quality-related costs in the system segment impacted Q3 gross margin, but these issues are limited to that quarter [115][116] Question: HBM probe-card premium - HBM probe-cards are differentiated products with higher gross margins within the DRAM segment [119]

Investor Presentation October 2024 Forward-Looking Statements; Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of the U.S. Securities Exchange Act of 1934 and the Securities Act of 1933. The forward-looking statements include statements concerning, among other things, our future business model and strategies, our financial model and structure, market and market share growth, industry trends, customer demand and growth opportunities. In some instances, you ...

FormFactor (FORM) came out with quarterly earnings of $0.35 per share, beating the Zacks Consensus Estimate of $0.31 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 12.90%. A quarter ago, it was expected that this integrated circuits diagnostic company would post earnings of $0.31 per share when it actually produced earnings of $0.35, delivering a surprise of 12.90%.Over the last f ...

EXHIBIT 99.01 News Release Investor Contact: Stan Finkelstein Investor Relations (925) 290-4321 ir@formfactor.com FORMFACTOR, INC. REPORTS 2024 THIRD QUARTER RESULTS Record Quarterly Revenue, Profitability at the Top End of the Outlook Range; Sees Reduced Demand for Foundry and Logic in Q4, Partially Of set by Continued Strength in DRAM LIVERMORE, Calif. — October 30, 2024 —FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the third quarter of fiscal 2024 ended September 28, 2024. Qu ...

Record Quarterly Revenue, Profitability at the Top End of the Outlook Range; Sees Reduced Demand for Foundry and Logic in Q4, Partially Offset by Continued Strength in DRAM LIVERMORE, Calif., Oct. 30, 2024 (GLOBE NEWSWIRE) -- FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the third quarter of fiscal 2024 ended September 28, 2024. Quarterly revenues were $207.9 million, a company record and an increase of 5.3% compared to $197.5 million in the second quarter of fiscal 2024, and an ...

The market expects FormFactor (FORM) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on October 30, 2024, might help the stock move higher if these key numbers ...

FormFactor (FORM) closed the last trading session at $44.12, gaining 0.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $61.11 indicates a 38.5% upside potential.The mean estimate comprises nine short-term price targets with a standard deviation of $8.65. While the lowest estimate of $46 indicates a 4.3% increase from the current price level, the most optimistic analyst expects t ...

Shares of FormFactor (FORM) have gained 1.2% over the past four weeks to close the last trading session at $44.99, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $61.11 indicates a potential upside of 35.8%. The average comprises nine short-term price targets ranging from a low of $46 to a high of $74, with a standard deviation of $8.65. While the lowest estimate indicates an i ...

Shares of FormFactor Inc (FORM, Financial) surged 3.01% in mid-day trading on Oct 2. The stock reached an intraday high of $45.77, before settling at $45.50, up from its previous close of $44.17. This places FORM 28.49% below its 52-week high of $63.63 and 44.40% above its 52-week low of $31.51. Trading volume was 69,047 shares, 10.7% of the average daily volume of 647,436. Wall Street Analysts Forecast Based on the one-year price targets offered by 9 analysts, the average target price for FormFactor Inc (F ...

Investors might want to bet on FormFactor (FORM) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. Since a cha ...