FormFactor(FORM) - 2024 Q4 - Annual Results

Revenue and Growth - Fiscal 2024 revenue reached $764 million, a 15.2% increase from $663 million in fiscal 2023, driven by growth in HBM revenue[2] - High Bandwidth Memory (HBM) revenue grew fourfold in fiscal 2024, driven by the adoption of Generative AI[6] - Fourth quarter revenue was $189.5 million, down 8.9% from $207.9 million in the previous quarter, but up 12.7% from $168.2 million in Q4 2023[2] - For Q1 2025, FormFactor projects revenue of $170 million +/- $5 million[11] Net Income and Earnings - Net income for Q4 2024 was $9.7 million, or $0.12 per fully-diluted share, compared to $18.7 million, or $0.24 per share in Q3 2024, and $75.8 million, or $0.97 per share in Q4 2023[7] - Non-GAAP net income for Q4 2024 was $21.3 million, or $0.27 per fully-diluted share, compared to $27.2 million, or $0.35 per share in Q3 2024, and $15.7 million, or $0.20 per share in Q4 2023[8] - Net income for the twelve months ended December 28, 2024, was $69.6 million, compared to $82.4 million in the previous year, reflecting a decrease of 15.5%[19] - Non-GAAP net income for the three months ended December 28, 2024, was $21.3 million, compared to $27.2 million in the previous quarter, a decrease of 21.6%[23] Gross Margin and Profitability - Gross margin for Q4 2024 was 38.8%, down from 40.7% in Q3 2024 and 40.4% in Q4 2023; fiscal 2024 gross margin was 40.3%, up from 39.0% in fiscal 2023[7] - Gross profit for the twelve months ended December 28, 2024, increased to $307.9 million, up 19.0% from $258.6 million in the previous year[19] - The company reported a GAAP gross margin of 38.8% for the three months ended December 28, 2024, down from 40.7% in the previous quarter[21] Cash Flow and Financial Health - Free cash flow for fiscal 2024 was $82.8 million, compared to $11.4 million for fiscal 2023[10] - Cash provided by operating activities for the twelve months ended December 28, 2024, was $117.5 million, significantly higher than $64.6 million in the previous year[25] - Net cash provided by operating activities for the three months ended December 28, 2024, was $35,913 thousand, an increase from $26,731 thousand in the previous quarter[27] - Free cash flow for the twelve months ended December 28, 2024, was $82,806 thousand, significantly higher than $11,404 thousand in the previous year[27] Expenses and Investments - Total operating expenses for the three months ended December 28, 2024, were $65.7 million, a slight decrease from $66.9 million in the previous quarter[19] - Research and development expenses for the twelve months ended December 28, 2024, were $121.9 million, an increase from $115.8 million in the previous year[19] - Capital expenditures for the twelve months ended December 28, 2024, were $38,436 thousand, down from $56,027 thousand in the previous year, reflecting a reduction in investment spending[27] Balance Sheet and Assets - Total current assets as of December 28, 2024, amounted to $605,128 thousand, compared to $573,780 thousand a year earlier, reflecting a growth of approximately 5.4%[29] - Cash and cash equivalents increased to $190,728 thousand from $177,812 thousand year-over-year, representing a growth of about 7.3%[29] - Total liabilities decreased slightly to $198,447 thousand from $197,990 thousand year-over-year, indicating a stable financial position[29] - Stockholders' equity as of December 28, 2024, was $947,768 thousand, up from $908,804 thousand a year earlier, showing an increase of approximately 4.3%[29] - Accounts receivable decreased to $104,294 thousand from $116,866 thousand in the previous quarter, indicating improved collection efficiency[29] Strategic Moves - FormFactor announced the acquisition of a 20% minority interest in FICT Limited for approximately $60 million, expected to close within the current quarter[4] - The company anticipates slow demand in high-unit-volume markets like client PCs and mobile handsets in Q1 2025, but expects overall product demand to increase throughout 2025[11] Management Insights - The company reported a non-GAAP net income, which is a key indicator for management's planning and forecasting, although specific figures were not disclosed in the provided content[30] - Management emphasizes the importance of free cash flow as a measure of liquidity, which is preferred by many investors for assessing the company's financial health[30]