Cascade Microtech and FormFactor and their respective executive officers and directors may be deemed to be participants in the solicitation of proxies from Cascade Microtech shareholders with respect to the transactions contemplated by the merger agreement. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of Cascade Microtech security holders in connection with the proposed merger will be set forth in the registration statement and the proxy statement/prospectus when filed with the SEC. Information regarding Cascade Microtech's executive officers and directors is included in Cascade Microtech's Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on March 12, 2015, and its proxy statement for its 2015 annual meeting of shareholders, filed with the SEC on April 6, 2015. Information regarding FormFactor's executive officers and directors is included in FormFactor's Annual Report on Form 10-K for the year ended December 27, 2014, filed with the SEC on March 6, 2015, its proxy statement for its 2015 annual meeting of shareholders, filed with the SEC on March 19, 2015 and its Current Report on Form 8-K, filed with the SEC on August 7, 2015. Copies of the foregoing documents may be obtained as provided above. Certain executive officers and directors of Cascade Microtech and FormFactor have interests in the transaction that may differ from the interests of Cascade Microtech and FormFactor shareholders generally, respectively. These interests will be described in the proxy statement/prospectus and other relevant materials to be filed with the SEC when they become available.
FORM-F
FORMFACTOR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Fiscal Year Ended
-------------------------- --------------------------
December 26, December 27, December 26, December 27,
2015 2014 2015 2014
------------ ------------ ------------ ------------
Revenues $ 71,782 $ 71,285 $ 282,358 $ 268,530
Cost of revenues 50,591 50,337 196,620 191,091
------------ ------------ ------------ ------------
Gross profit 21,191 20,948 85,738 77,439
------------ ------------ ------------ ------------
Operating Expenses:
Research and
development 11,236 10,706 44,184 42,725
Selling, general
and administrative 10,719 12,631 45,090 51,385
Restructuring
charges, net (3) 584 559 2,668
Impairment of long-
lived assets -- 390 8 1,219
------------ ------------ ------------ ------------
Total operating
expenses 21,952 24,311 89,841 97,997
------------ ------------ ------------ ------------
Operating loss (761) (3,363) (4,103) (20,558)
Interest income, net 70 69 285 302
Other income
(expense), net (36) 155 2,547 161
------------ ------------ ------------ ------------
Loss before income
taxes (727) (3,139) (1,271) (20,095)
Provision (benefit)
for income taxes (108) (1,268) 252 (910)
------------ ------------ ------------ ------------
Net loss $ (619) $ (1,871) $ (1,523) $ (19,185)
============ ============ ============ ============
Net loss per share:
Basic and diluted $ (0.01) $ (0.03) $ (0.03) $ (0.34)
============ ============ ============ ============
Weighted average
number of shares
used in per share
calculations:
Basic and diluted 58,128 56,472 57,850 55,908
============ ============ ============ ============
FORMFACTOR, INC.
RECONCILIATION OF NON-GAAP NET INCOME
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Fiscal Year Ended
-------------------------- --------------------------
December 26, December 27, December 26, December 27,
2015 2014 2015 2014
------------ ------------ ------------ ------------
GAAP net loss $ (619) $ (1,871) $ (1,523) $ (19,185)
Stock-based
compensation 3,060 3,256 11,575 13,279
Restructuring
charges, net (3) 584 559 2,668
Acquisition and
integration related
expenses 35 25 231 423
Amortization of
intangibles,
inventory and fixed
assets fair value
adjustment due to
acquisition 3,359 3,654 13,509 18,539
Impairment of long-
lived assets -- 390 8 1,219
Loss contingency -- 498 -- 1,218
Gain on sale of
intellectual
property -- -- (1,040) --
Business
interruption
insurance claim
recovery -- -- (1,521) --
------------ ------------ ------------ ------------
Non-GAAP net income $ 5,832 $ 6,536 $ 21,798 $ 18,161
============ ============ ============ ============
Non-GAAP net income
per share:
Basic $ 0.10 $ 0.12 $ 0.38 $ 0.32
============ ============ ============ ============
Diluted $ 0.10 $ 0.11 $ 0.37 $ 0.32
============ ============ ============ ============
Weighted-average
number of shares
used in per share
calculations:
Basic 58,128 56,472 57,850 55,908
============ ============ ============ ============
Diluted 59,138 58,234 59,069 57,510
============ ============ ============ ============
FORMFACTOR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
December 26, December 27,
2015 2014
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 146,264 $ 113,940
Marketable securities 41,325 49,897
Accounts receivable, net 36,725 45,152
Inventories, net 27,223 25,548
Refundable income taxes -- 782
Prepaid expenses and other current assets 6,481 6,919
------------- -------------
Total current assets 258,018 242,238
Restricted cash 435 435
Property, plant and equipment, net 23,853 25,498
Goodwill 30,731 30,731
Intangibles, net 25,552 38,689
Deferred tax assets 3,281 5,502
Other assets 853 1,150
------------- -------------
Total assets $ 342,723 $ 344,243
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 18,072 $ 20,274
Accrued liabilities 21,507 21,217
Income taxes payable 110 68
Deferred revenue 3,892 6,303
------------- -------------
Total current liabilities 43,581 47,862
Long-term income taxes payable 1,069 1,094
Deferred tax liabilities -- 2,208
Deferred rent and other liabilities 3,392 3,643
------------- -------------
Total liabilities 48,042 54,807
------------- -------------
Commitments and contingencies
Stockholders' equity:
Common stock and capital in excess of par
value 718,962 711,733
Accumulated other comprehensive loss (2,222) (1,761)
Accumulated deficit (422,059) (420,536)
------------- -------------
Total stockholders' equity 294,681 289,436
------------- -------------
Total liabilities and stockholders' equity $ 342,723 $ 344,243
============= =============
