On a GAAP basis, net loss for the second quarter of fiscal 2014 was $(4.3) million, or $(0.08) per fully-diluted share, compared to a net loss for the first quarter of fiscal 2014 of $(12.7) million, or $(0.23) per fully-diluted share, and a net loss for the second quarter of fiscal 2013 of $(8.4) million, or $(0.16) per fully-diluted share.
On a non-GAAP basis, net income for the second quarter of fiscal 2014 was $4.9 million, or $0.08 per fully-diluted share, compared to a net loss for the first quarter of fiscal 2014 of $(2.3) million, or $(0.04) per fully-diluted share, and a net loss for the second quarter of fiscal 2013 of $(0.3) million, or $(0.01) per fully-diluted share. A reconciliation of GAAP to non-GAAP net income (loss) and net income (loss) per share is provided in the schedules included below.
Cash generation for the second quarter of fiscal 2014 was $5.0 million, compared to cash usage of $(7.1) million for the first quarter of fiscal 2014 and cash generation of $1.0 million for the second quarter of fiscal 2013.
"In Q2, we saw increased business and improved operational performance, resulting in our first non-GAAP profitable quarter since Q4 of 2007," said Tom St. Dennis, CEO of FormFactor, Inc. "We made significant progress in each of our DRAM, Flash Memory and SOC product lines during the quarter and are positioned to support our growth objectives through 2016."
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. PDT, or 4:30 p.m. EDT, today.
The public is invited to listen to a live webcast of FormFactor's conference call on the Investors section of the company's web site at www.formfactor.com. A telephone replay of the conference call will be available approximately two hours after the conclusion of the call. The telephone replay will be available through August 1, 2014, 9:00 p.m. PDT, and can be accessed by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) and entering confirmation code 73696070. Additionally, the replay will be available on the Investors section of our website, www.formfactor.com.
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.
About FormFactor:
FormFactor, Inc. (
FormFactor, MicroProbe, and the FormFactor and MicroProbe logos are registered or unregistered 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, including statements regarding anticipated results, market conditions or trends, expectations and operating plans. 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: unexpected changes in demand for the company's products; seasonal industry trends; risks of the company's ability to realize further operational efficiencies, to realize sustainable profitability, to achieve its growth objectives, and to meet customer demand for the company's DRAM, Flash Memory and SoC products; and changes in the market and macro-economic environments. Additional information concerning factors that could cause actual events or results to differ materially from those in any forward-looking statement is contained in the company's Form 10-K for the fiscal year ended December 28, 2013, as filed with the SEC, and subsequent SEC filings, including the company's Quarterly Reports on Forms 10-Q. Copies of the company's SEC filings are available at http://investors.formfactor.com/sec.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 Six Months Ended
---------------------- ----------------------
June 28, June 29, June 28, June 29,
2014 2013 2014 2013
---------- ---------- ---------- ----------
Revenues $ 67,352 $ 62,733 $ 123,311 $ 115,353
Cost of revenues 47,328 46,328 90,962 89,873
---------- ---------- ---------- ----------
Gross profit 20,024 16,405 32,349 25,480
---------- ---------- ---------- ----------
Operating expenses:
Research and development 11,074 10,915 20,821 21,844
Selling, general and
administrative 13,191 13,487 25,445 28,105
Restructuring charges, net 59 92 2,056 4,072
Loss on sale of subsidiary -- 300 -- 300
Impairment of long-lived
assets -- 121 743 179
---------- ---------- ---------- ----------
Total operating expenses 24,324 24,915 49,065 54,500
---------- ---------- ---------- ----------
Operating loss (4,300) (8,510) (16,716) (29,020)
Interest income, net 79 96 158 203
Other income (expense), net (156) 209 (222) 632
---------- ---------- ---------- ----------
Loss before income taxes (4,377) (8,205) (16,780) (28,185)
Provision (benefit) for
income taxes (51) 202 257 (5)
---------- ---------- ---------- ----------
Net loss $ (4,326) $ (8,407) $ (17,037) $ (28,180)
========== ========== ========== ==========
Net loss per share:
Basic and Diluted $ (0.08) $ (0.16) $ (0.31) $ (0.52)
========== ========== ========== ==========
Weighted-average number of
shares used in per share
calculations:
Basic and diluted 55,812 54,105 55,431 53,886
========== ========== ========== ==========
FORMFACTOR, INC.
RECONCILIATION OF NON-GAAP NET INCOME (LOSS)
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
---------------------- ----------------------
June 28, June 29, June 28, June 29,
2014 2013 2014 2013
---------- ---------- ---------- ----------
GAAP net loss $ (4,326) $ (8,407) $ (17,037) $ (28,180)
Stock-based compensation 3,519 3,132 6,089 6,166
Restructuring charges, net 59 92 2,056 4,072
Acquisition and integration
related expenses 388 282 429 1,194
Amortization of intangibles,
inventory and fixed assets
fair value adjustment due
to acquisition 4,953 4,206 9,902 8,992
Impairment of long-lived
assets -- 421 743 479
Loss contingency 280 -- 413 --
Income tax valuation
allowance -- -- -- 150
---------- ---------- ---------- ----------
Non-GAAP net income (loss) $ 4,873 $ (274) $ 2,595 $ (7,127)
========== ========== ========== ==========
Non-GAAP net income (loss)
per share:
Basic $ 0.09 $ (0.01) $ 0.05 $ (0.13)
========== ========== ========== ==========
Diluted $ 0.08 $ (0.01) $ 0.05 $ (0.13)
========== ========== ========== ==========
Weighted-average number of
shares used in per share
calculations:
Basic 55,812 54,105 55,431 53,886
========== ========== ========== ==========
Diluted 57,373 54,105 57,012 53,886
========== ========== ========== ==========
FORMFACTOR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 28, December 28,
2014 2013
-------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 69,859 $ 59,196
Marketable securities 79,182 91,895
Accounts receivable, net 41,962 30,189
Inventories, net 22,050 20,707
Deferred tax assets 2,841 2,776
Refundable income taxes 782 782
Prepaid expenses and other current assets 7,476 6,106
-------------- --------------
Total current assets 224,152 211,651
Restricted cash 435 435
Property, plant and equipment, net 29,210 35,190
Goodwill 30,731 30,731
Intangibles, net 47,326 57,470
Deferred tax assets 3,983 3,960
Other assets 1,291 1,271
-------------- --------------
Total assets $ 337,128 $ 340,708
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 18,388 $ 16,313
Accrued liabilities 17,205 13,985
Capital leases, current portion -- 270
Income taxes payable 493 172
Deferred revenue 7,238 7,030
-------------- --------------
Total current liabilities 43,324 37,770
Long-term income taxes payable 2,318 2,497
Deferred tax liabilities 3,029 3,029
Deferred rent and other liabilities 3,443 3,326
-------------- --------------
Total liabilities 52,114 46,622
-------------- --------------
Commitments and contingencies
Stockholders' equity:
Common stock and capital in excess of par
value 703,189 695,686
Accumulated other comprehensive gain
(loss) 213 (249)
Accumulated deficit (418,388) (401,351)
-------------- --------------
Total stockholders' equity 285,014 294,086
-------------- --------------
Total liabilities and stockholders'
equity $ 337,128 $ 340,708
============== ==============
Investor Contact: Stan Finkelstein Investor Relations (925) 290-4321 ir@formfactor.com