LIVERMORE, Calif., Feb. 29, 2024 (GLOBE NEWSWIRE) -- FormFactor, Inc. (NASDAQ:FORM), a leading semiconductor test and measurement supplier, together with Tabor Electronics LLC, today presented the Echo-5Q project, a demonstration of a full stack 5-Qubit Quantum Computer for research and education, leveraging a QPU supplied by QuantWare. The result of this collaboration shows the ability of the partnering companies to support the quantum industry with their respective technologies. The turnkey Quantum Comput ...

LIVERMORE, Calif., Feb. 26, 2024 (GLOBE NEWSWIRE) -- FormFactor, Inc. (NASDAQ:FORM) is pleased to announce the closing of its sale of FormFactor's Suzhou and Shanghai companies to Grand Junction Semiconductor Pte. Ltd. (GJS), for $25M in cash, subject to taxes and customary purchase price adjustments. The transaction is part of a long-term partnership between the two companies, initially announced February 7th, 2024, which also includes an exclusive distribution and partnership agreement to continue sales a ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 30, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 000-50307 FormFactor, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 000-50307 FormFactor, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...

Financial Data and Key Metrics Changes - Q3 2023 revenues were $171.6 million, a 10% sequential increase but a year-over-year decrease of 5.1% [72] - Non-GAAP gross margin and non-GAAP EPS were above the high end of the outlook range [72] - Q3 probe card segment revenues were $128.3 million, an increase of 11.3% from Q2, while DRAM revenues decreased by 10.2% to $27.4 million [72][73] Business Line Data and Key Metrics Changes - Foundry and logic probe card revenues increased to $96.4 million, a 17.7% increase from Q2, contributing 56.2% of total revenues [72] - System segment revenues reached a record $43.2 million, comprising 25.2% of total revenues, slightly down from 26% in Q2 [72] - Flash revenues increased to $4.5 million, a 55.2% increase from Q2 [72] Market Data and Key Metrics Changes - The company noted a stable demand environment across its diversified product portfolio, with signs of bottoming in key markets like client PC and mobile [68] - The foundry space experienced strong demand for probe cards testing high-performance compute designs [69] - The mobile handset market has been challenging, but there are indications of stabilization [46] Company Strategy and Development Direction - The company is focused on advanced packaging applications, including chiplets and high bandwidth memory, as key growth areas [68][70] - Investments in R&D are prioritized to maintain competitive differentiation and align with customer needs in advanced packaging [68][71] - The company aims to achieve a target model of $850 million in revenue with $2 of non-GAAP EPS [71] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the industry, noting that while demand remains cyclical, there are signs of stabilization [68] - The company expects to see a stronger contribution from DRAM probe cards in Q4, driven by HBM and DDR5 [76] - Management highlighted the importance of maintaining a balance between short-term results and long-term investments [68] Other Important Information - The company completed the sale of its FRT business, which impacted Q4 revenue outlook [68] - A new two-year $75 million share repurchase program was approved to offset dilution from stock-based compensation [74] - The company anticipates a decrease in CapEx for 2024 compared to 2023, focusing on capacity alignment with demand [74][75] Q&A Session All Questions and Answers Question: Can you provide clarity on HBM revenue in Q3 and expectations for Q4? - HBM revenue in Q3 was approximately $10 million, with expectations for strengthening in Q4, although volatility is anticipated [22][21] Question: What is the outlook for advanced packaging and its growth rate? - Advanced packaging is expected to significantly outgrow the industry, with the company well-positioned to capitalize on this trend [49] Question: How is the company addressing the challenges in the China market? - The company faces structural challenges due to export controls, but expects the domestic China business to stabilize over time [38] Question: What are the key areas of focus for R&D spending in the upcoming year? - R&D spending will focus on advanced packaging, chiplets, and aligning product roadmaps with customer needs [63]

Yes. It is a good question and it drives to some of the underlying gross margin fluctuations that Shai talked about. Whether it is increasing the value of what we do in a market like DRAM by making sure that we have compelling differentiated products for new things like HBM that certainly helps gross margins out in a segment that has been gross margin challenged over the past several years. We are also investing in R&D to improve our competitiveness and profitability with some of these platforms. So over th ...

These are segments where you only have really two suppliers that are able to deliver into the advanced requirements. And those are -- so we're investing in R&D. So we have compelling products that we can charge a premium for drive gross margins up deliver value to our customers and gain share at the same time. Craig Ellis Got it. Clear message. Thanks for the help, Mike. Mike Slessor Thanks Craig. Operator Thank you. [Operator Instructions] Thank you. Our next question comes from the line of Krish Sankar of ...

| --- | --- | --- | |-----------------------------------------------------------------------------|-------------------------------------|-------------------------------------------------------| | | | | | | Throughout Their Product Life Cycle | | | Customers benefit from accelerated path from concept to volume production | R&D/Engineering | to emerging trends, e.g. Silicon Photonics, Quantum | | • Saves time and effort, | High Volume Engineering/ | Computing, Cryogenics, Micro | | improves yields, shortens t ...

Business Segments and Operations - FormFactor, Inc. operates in two reportable segments: Probe Cards and Systems, with sales from probe cards and analytical probes included in the Probe Cards segment, while probe stations, metrology systems, thermal systems, and cryogenic systems are included in the Systems segment[16]. - Manufacturing facilities are located in the United States and Germany, with additional operations in China and Japan, ensuring a broad production capability[41]. - The company maintains a global sales force and a network of representatives and distributors to enhance customer support and market reach[44]. Revenue and Financial Performance - Total revenues for fiscal 2022 were $747.9 million, down from $769.7 million in fiscal 2021, with the Probe Cards segment generating $591.4 million and the Systems segment $156.5 million[183]. - Net income for fiscal 2022 was $50.7 million, a decrease from $83.9 million in fiscal 2021, primarily due to decreased revenues and lower margins[165]. - Gross profit margin for fiscal 2022 was 39.6%, down from 41.9% in fiscal 2021, attributed to a less favorable product mix and lower factory utilization[182]. - The company experienced a net loss of $9.4 million in the second half of fiscal 2022, with revenues of $346.9 million and gross margins of 31.0%[166]. - The company anticipates continued negative impacts on revenues due to U.S. government export restrictions affecting trade with China[190]. Customer and Market Dynamics - As of December 31, 2022, Intel Corporation represented 16.5% of quarterly revenues, while SK hynix Inc. and Taiwan Semiconductor Manufacturing Co., LTD. contributed 10.7% and 10.7% respectively in the same quarter[35]. - Approximately 22% of the company's fiscal 2022 revenue was derived from sales to customers in China, which is subject to new export license requirements imposed by the U.S. government[49]. - A relatively small number of customers account for a significant portion of revenues, with two customers representing a combined 31.8% of total revenues in fiscal 2021[86]. - The company believes it competes favorably in the advanced probe card market, particularly for high signal integrity testing of wireless radio frequency devices used in 5G applications[53]. Research and Development - The company emphasizes the importance of innovation and investment in research and development to meet the evolving test and measurement requirements of its customers[83]. - Research and development expenses as a percentage of revenues increased to 14.6% in fiscal 2022 from 13.1% in fiscal 2021[182]. - The company has generated and maintains a substantial patent portfolio relevant to its products, which is intended to create a competitive advantage[63]. Strategic Acquisitions and Growth - The company has made several strategic acquisitions, including Astria Semiconductor Holdings, Cascade Microtech, and FRT GmbH, enhancing its market position and product offerings[15]. - Future acquisitions may strain resources and lead to ownership dilution, with integration challenges potentially affecting financial results[135]. - The company recorded significant goodwill and intangible assets from acquisitions, which may require impairment charges against earnings if their value declines[136][137]. Operational Risks and Challenges - The company faces risks from reliance on sole or limited source suppliers, which could lead to production delays and increased costs[103]. - The company lacks sufficient backlog of unfilled orders, making revenues difficult to forecast and dependent on customer orders received in the quarter[94]. - The company is exposed to risks from sole or limited source suppliers, which may disrupt operations and affect the supply of materials[114]. - The company faces significant risks from health crises, such as COVID-19, which have already negatively impacted operations and supply chains[111]. Financial Management and Capital Structure - The company repurchased a total of 365,479 shares of common stock in the fourth quarter of fiscal 2022, with an average price paid of $24.22 per share[157]. - The maximum amount that may yet be purchased under the current stock repurchase program is $21.4 million, which will expire in May 2024[155]. - Cash and cash equivalents and marketable securities totaled approximately $238.1 million at December 31, 2022, down from $276.1 million at December 25, 2021[210]. Market Conditions and Economic Factors - The semiconductor industry is characterized by cyclicality, with significant downturns impacting operating results, as seen in the second half of fiscal 2022 with a decline in demand for foundry & logic and DRAM products[93]. - The company has experienced increased costs due to inflation, particularly in labor, materials, and transportation, which may adversely affect profitability[117]. - Increased tariffs and trade barriers, particularly between the U.S. and China, may negatively affect future sales and operating results[124]. Corporate Governance and Compliance - The company has implemented robust workplace health and safety programs, particularly in response to the COVID-19 pandemic, to maintain high standards of employee protection[73]. - The company is subject to various environmental laws and regulations, which could lead to significant fines and liabilities if compliance is not maintained[131]. - Effective internal controls are necessary for reliable financial reporting; failures could harm the company's reputation and stock price[138].

FormFactor, Inc. (NASDAQ:FORM) Q4 2022 Earnings Conference Call February 8, 2023 4:25 PM ET Company Participants Stan Finkelstein - Vice President, Investor Relations Mike Slessor - President and Chief Executive Officer Shai Shahar - Chief Financial Officer Conference Call Participants Brian Chin - Stifel Christian Schwab - Craig Hallum Charles Shi - Needham Craig Ellis - B. Riley Hans Chung - D.A. Davidson Gus Richard - Northland Capital Markets Operator Thank you. And welcome everyone to FormFactor’s Four ...