FormFactor, Inc. Reports 2024 Fourth Quarter Results
FormFactor (FORM) reported Q4 2024 financial results with quarterly revenues of $189.5 million, down 8.9% from Q3 2024 but up 12.7% from Q4 2023. Full-year 2024 revenue reached $764 million, marking a 15.2% increase from $663 million in 2023.
The company's Q4 GAAP net income was $9.7 million ($0.12 per share), compared to $18.7 million ($0.24 per share) in Q3 2024. Non-GAAP net income for Q4 was $21.3 million ($0.27 per share). Gross margin for Q4 2024 was 38.8%, down from 40.7% in Q3.
FormFactor announced acquiring a 20% minority stake in FICT for approximately $60M, strengthening its position in advanced probe card components. The company's High Bandwidth Memory business grew fourfold in 2024, driven by Generative AI adoption, while DRAM probe-card revenue set third consecutive quarterly records.
FormFactor (FORM) ha riportato i risultati finanziari del Q4 2024 con ricavi trimestrali di 189,5 milioni di dollari, in calo dell'8,9% rispetto al Q3 2024, ma in aumento del 12,7% rispetto al Q4 2023. I ricavi totali per l'anno 2024 hanno raggiunto i 764 milioni di dollari, segnando un aumento del 15,2% rispetto ai 663 milioni del 2023.
Il reddito netto GAAP dell'azienda per il Q4 è stato di 9,7 milioni di dollari (0,12 dollari per azione), rispetto ai 18,7 milioni di dollari (0,24 dollari per azione) del Q3 2024. Il reddito netto non GAAP per il Q4 è stato di 21,3 milioni di dollari (0,27 dollari per azione). Il margine lordo per il Q4 2024 è stato del 38,8%, in calo rispetto al 40,7% del Q3.
FormFactor ha annunciato di aver acquisito una partecipazione minoritaria del 20% in FICT per circa 60 milioni di dollari, rafforzando così la sua posizione nei componenti avanzati per schede di sonda. Il business della Memoria ad Alta Larghezza di Banda dell'azienda è cresciuto quattro volte nel 2024, trainato dall'adozione dell'Intelligenza Artificiale Generativa, mentre i ricavi delle schede di sonda DRAM hanno stabilito record trimestrali per il terzo trimestre consecutivo.
FormFactor (FORM) informó los resultados financieros del Q4 2024 con ingresos trimestrales de 189,5 millones de dólares, una disminución del 8,9% respecto al Q3 2024, pero un aumento del 12,7% en comparación con el Q4 2023. Los ingresos totales del año 2024 alcanzaron los 764 millones de dólares, marcando un aumento del 15,2% con respecto a los 663 millones de 2023.
La utilidad neta GAAP de la empresa en el Q4 fue de 9,7 millones de dólares (0,12 dólares por acción), en comparación con 18,7 millones de dólares (0,24 dólares por acción) en el Q3 2024. La utilidad neta no GAAP para el Q4 fue de 21,3 millones de dólares (0,27 dólares por acción). El margen bruto para el Q4 2024 fue del 38,8%, bajando del 40,7% en el Q3.
FormFactor anunció la adquisición de una participación minoritaria del 20% en FICT por aproximadamente 60 millones de dólares, fortaleciendo su posición en componentes avanzados de tarjetas de sonda. El negocio de Memoria de Alta Ancho de Banda de la empresa creció cuatro veces en 2024, impulsado por la adopción de la IA Generativa, mientras los ingresos de tarjetas de sonda DRAM alcanzaron récords trimestrales por tercer trimestre consecutivo.
FormFactor (FORM)는 2024년 4분기 재무 결과를 보고하며 분기 매출이 1억 8천950만 달러로 2024년 3분기 대비 8.9% 감소했으나, 2023년 4분기 대비 12.7% 증가했다고 발표했습니다. 2024년 연간 매출은 7억 6천4백만 달러에 달해 2023년 6억 6천3백만 달러 대비 15.2% 증가했습니다.
회사의 4분기 GAAP 순이익은 970만 달러(주당 0.12달러)로, 2024년 3분기의 1,870만 달러(주당 0.24달러)와 비교됩니다. 4분기 비-GAAP 순이익은 2,130만 달러(주당 0.27달러)였습니다. 2024년 4분기 총 마진은 38.8%로, 3분기의 40.7%에서 하락했습니다.
FormFactor는 FICT의 20% 소수 지분을 약 6천만 달러에 인수했다고 발표하며, 첨단 프로브 카드 구성 품목에서의 입지를 강화했습니다. 회사의 고대역폭 메모리 사업은 2024년 4배 성장했으며, 이는 생성적 AI 채택에 의해 촉진되었고, DRAM 프로브 카드의 수익은 3분기 연속으로 기록을 경신했습니다.
FormFactor (FORM) a rapporté les résultats financiers du Q4 2024, avec des revenus trimestriels de 189,5 millions de dollars, en baisse de 8,9% par rapport au Q3 2024, mais en hausse de 12,7% par rapport au Q4 2023. Les revenus totaux pour l'année 2024 ont atteint 764 millions de dollars, marquant une augmentation de 15,2% par rapport aux 663 millions de 2023.
Le bénéfice net GAAP de l'entreprise pour le Q4 était de 9,7 millions de dollars (0,12 dollar par action), contre 18,7 millions de dollars (0,24 dollar par action) au Q3 2024. Le bénéfice net non-GAAP pour le Q4 s'élevait à 21,3 millions de dollars (0,27 dollar par action). La marge brute pour le Q4 2024 était de 38,8%, en baisse par rapport à 40,7% au Q3.
FormFactor a annoncé l'acquisition d'une participation minoritaire de 20% dans FICT pour environ 60 millions de dollars, renforçant ainsi sa position sur le marché des composants avancés de cartes de sonde. L'activité Mémoire à Large Bande Passante de l'entreprise a été multipliée par quatre en 2024, soutenue par l'adoption de l'IA Générative, tandis que les revenus des cartes de sonde DRAM ont atteint des records trimestriels pour le troisième trimestre consécutif.
FormFactor (FORM) hat die Finanzergebnisse für das Q4 2024 bekannt gegeben, mit vierteljährlichen Einnahmen von 189,5 Millionen Dollar, die im Vergleich zum Q3 2024 um 8,9% gesunken sind, jedoch im Vergleich zum Q4 2023 um 12,7% gestiegen sind. Die Gesamteinnahmen für das Jahr 2024 beliefen sich auf 764 Millionen Dollar, was einem Anstieg von 15,2% gegenüber 663 Millionen im Jahr 2023 entspricht.
Das GAAP-Nettoeinkommen des Unternehmens im Q4 betrug 9,7 Millionen Dollar (0,12 Dollar pro Aktie), verglichen mit 18,7 Millionen Dollar (0,24 Dollar pro Aktie) im Q3 2024. Das Non-GAAP-Nettoeinkommen für das Q4 betrug 21,3 Millionen Dollar (0,27 Dollar pro Aktie). Die Bruttomarge für das Q4 2024 lag bei 38,8%, im Vergleich zu 40,7% im Q3.
FormFactor gab die Übernahme eines 20% Minderheitsanteils an FICT für etwa 60 Millionen Dollar bekannt, was die Position im Bereich fortschrittlicher Prüfkartenkomponenten stärkt. Das Geschäft mit Hochbandbreiten-Speicher wuchs 2024 um das Vierfache, angetrieben durch die Akzeptanz von Generativer KI, während die Einnahmen aus DRAM-Prüfkarten im dritten Quartal in Folge Rekorde brachen.
- FY2024 revenue increased 15.2% to $764M from $663M in FY2023
- High Bandwidth Memory business grew 4x year-over-year
- DRAM probe-card revenue achieved third consecutive quarterly record
- Free cash flow improved to $28.8M in Q4 2024 from -$0.3M in Q4 2023
- Q4 2024 revenue decreased 8.9% quarter-over-quarter to $189.5M
- Q4 2024 gross margin declined to 38.8% from 40.7% in Q3 2024
- Q4 2024 GAAP net income fell to $9.7M from $18.7M in Q3 2024
- Persistent weak demand in PC and mobile handset markets
Insights
FormFactor's Q4 and FY2024 results reveal a compelling transformation story amid market challenges. The standout metric is the fourfold growth in High Bandwidth Memory (HBM) revenue, directly tied to the AI computing boom. HBM now represents approximately half of DRAM revenue, indicating FormFactor's successful pivot toward high-growth AI infrastructure markets.
The financial performance shows strong year-over-year improvements but sequential pressures:
- FY2024 revenue reached
$764 million , up15.2% year-over-year - Q4 non-GAAP gross margin of
40.2% shows sequential decline from42.2% - Free cash flow improved dramatically to
$82.8 million in FY2024 from$11.4 million in FY2023
The
Q1 2025 guidance suggests near-term headwinds with projected revenue of
FY24 revenue of
Announces acquisition of minority interest in FICT Limited, a key supplier of industry-leading, high-performance advanced probe card components
LIVERMORE, Calif., Feb. 05, 2025 (GLOBE NEWSWIRE) -- FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the fourth quarter of fiscal 2024 ended December 28, 2024. Quarterly revenues were
- High Bandwidth Memory grew fourfold in fiscal 2024 compared to the prior year, driven by adoption of Generative AI, overcoming persistent lackluster demand in important high-unit-volume markets like PCs and mobile handsets.
- DRAM probe-card revenue during the fourth quarter set third consecutive quarterly record.
- Continued focus on expanding and diversifying FormFactor’s market position in enabling advanced packaging, through new customer qualifications in client PCs and server applications and new high-performance-compute applications.
- FICT acquisition with MBK Partners solidifies FormFactor’s access to FICT’s technologies and products, which are an important component of advanced probe cards.
“As expected, FormFactor reported sequentially lower fourth-quarter revenue, gross margin, and non-GAAP earnings per share, driven by the forecasted reduction in Foundry & Logic probe-card revenue,” said Mike Slessor, CEO of FormFactor, Inc. “This was partially offset by growth in DRAM probe-card revenue, with HBM increasing to approximately half of DRAM revenue.”
FormFactor also announced today that together with MBK Partners (“MBKP”), the largest private equity firm in North Asia, it is acquiring FICT Limited (“FICT”) from Advantage Partners Inc. FICT, headquartered in Nagano, Japan, has been providing the semiconductor test and high-performance computing industries with complex multi-layer organic substrates, printed circuit boards, and related leading-edge technologies and services since its inception as a Fujitsu business unit in 1967. This acquisition is designed to strengthen and grow FICT’s business, and the FormFactor+MBKP consortium is committed to advancing FICT’s mission to serve its entire customer base.
With this transaction, FormFactor invests approximately US
“The semiconductor industry’s rapidly accelerating adoption of advanced packaging requires increased investment and stronger collaboration across the test and assembly supply chain,” said Mike Slessor, FormFactor’s CEO. “FormFactor’s investment in FICT builds on our long-term collaboration with them as a supplier of the industry-leading, high-performance components we use in our advanced probe cards, and provides a platform for accelerated development of tomorrow’s test and packaging consumables.”
“We’ve built a partnership with MBKP, North Asia’s leading private equity firm, with a shared vision to enhance FICT’s long-term value by fully serving all of FICT’s existing and potential customers,” Slessor concluded.
Fourth Quarter and Fiscal 2024 Highlights
On a GAAP basis, net income for the fourth quarter of fiscal 2024 was
On a non-GAAP basis, net income for the fourth quarter of fiscal 2024 was
A reconciliation of GAAP to non-GAAP measures is provided in the schedules included below.
GAAP net cash provided by operating activities for the fourth quarter of fiscal 2024 was
Outlook
Dr. Slessor added, “We continue to see slow demand in important high-unit-volume markets, like client PCs and mobile handsets, through the first quarter, with anticipated sequential reductions in demand for both non-HBM DRAM probe cards and Systems. That notwithstanding, as we move through 2025, we expect an overall increase in demand for FormFactor’s products.”
For the first quarter ending March 29, 2025, FormFactor is providing the following outlook*:
| GAAP | Reconciling Items** | Non-GAAP | ||||
| Revenue | — | |||||
| Gross Margin | ||||||
| Net income per diluted share |
*This outlook assumes consistent foreign currency rates.
**Reconciling items are stock-based compensation, amortization of intangible assets and fixed asset fair value adjustments due to acquisitions, and restructuring charges, net of applicable income tax impacts.
We posted our revenue breakdown by geographic region, by market segment and with customers with greater than
The public is invited to listen to a live webcast of FormFactor’s conference call on the Investor Relations section of our website at www.formfactor.com. A telephone replay of the conference call will be available approximately two hours after the conclusion of the call. The replay will be available on the Investor Relations section of our website, www.formfactor.com.
Use of Non-GAAP Financial Information:
To supplement our condensed consolidated financial results prepared under generally accepted accounting principles, or GAAP, we disclose certain non-GAAP measures of non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and free cash flow, that are adjusted from the nearest GAAP financial measure to exclude certain costs, expenses, gains and losses. Reconciliations of the adjustments to GAAP results for the three and twelve months ended months ended December 28, 2024, and for outlook provided before, as well as for the comparable periods of fiscal 2023, are provided below, and on the Investor Relations section of our website at www.formfactor.com. Information regarding the ways in which management uses non-GAAP financial information to evaluate its business, management's reasons for using this non-GAAP financial information, and limitations associated with the use of non-GAAP financial information, is included under “About our Non-GAAP Financial Measures” following the tables below.
About FormFactor:
FormFactor, Inc. (NASDAQ: FORM), is a leading provider of essential test and measurement technologies along the full semiconductor product life cycle - from characterization, modeling, reliability, and design de-bug, to qualification and production test. Semiconductor companies rely upon FormFactor’s products and services to accelerate profitability by optimizing device performance and advancing yield knowledge. The Company serves customers through its network of facilities in Asia, Europe, and North America. For more information, visit the Company’s website at www.formfactor.com.
Forward-looking Statements:
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the federal securities laws, including with respect to the Company’s future financial and operating results, and the Company’s plans, strategies and objectives for future operations. These statements are based on management’s current expectations and beliefs as of the date of this release, and are subject to a number of risks and uncertainties, many of which are beyond the Company’s control, that could cause actual results to differ materially from those described in the forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding future financial and operating results, including under the heading “Outlook” above, customer demand, conditions in the semiconductor industry, the timing of completion of the FICT acquisition, the expected benefit thereof and other statements regarding the Company’s business. Forward-looking statements may contain words such as “may,” “might,” “will,” “expect,” “plan,” “anticipate,” “forecast,” and “continue,” the negative or plural of these words and similar expressions, and include the assumptions that underlie such statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in demand for the Company’s products; customer-specific demand; market opportunity; anticipated industry trends; delays in the consummation of the FICT acquisition; the potential impact on the business of FormFactor and FICT due to uncertainties in connection with the acquisition; the retention of employees of FICT following acquisition; the ability of FormFactor to achieve expected benefits from the FICT acquisition; the availability, benefits, and speed of customer acceptance or implementation of new products and technologies; manufacturing, processing, and design capacity, goals, expansion, volumes, and progress; difficulties or delays in research and development; industry seasonality; risks to the Company’s realization of benefits from acquisitions, investments in capacity and investments in new electronic data systems and information technology; reliance on customers or third parties (including suppliers); changes in macro-economic environments; events affecting global and regional economic and market conditions and stability such as military conflicts, political volatility, infectious diseases and pandemics, and similar factors, operating separately or in combination; and other factors, including those set forth in the Company’s most current annual report on Form 10-K, quarterly reports on Form 10-Q and other filings by the Company with the U.S. Securities and Exchange Commission. In addition, there are varying barriers to international trade, including restrictive trade and export regulations such as the US-China restrictions, dynamic tariffs, trade disputes between the U.S. and other countries, and national security developments or tensions, that may substantially restrict or condition our sales to or in certain countries, increase the cost of doing business internationally, and disrupt our supply chain. No assurances can be given that any of the events anticipated by the forward-looking statements within this press release will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company. Unless required by law, the Company is under no obligation (and expressly disclaims any such obligation) to update or revise its forward-looking statements whether as a result of new information, future events, or otherwise.
| FORMFACTOR, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited) | |||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| December 28, 2024 | September 28, 2024 | December 30, 2023 | December 28, 2024 | December 30, 2023 | |||||||||||||||
| Revenues | $ | 189,483 | $ | 207,917 | $ | 168,163 | $ | 763,599 | $ | 663,102 | |||||||||
| Cost of revenues | 115,903 | 123,212 | 100,229 | 455,676 | 404,522 | ||||||||||||||
| Gross profit | 73,580 | 84,705 | 67,934 | 307,923 | 258,580 | ||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Research and development | 30,504 | 31,243 | 28,166 | 121,938 | 115,765 | ||||||||||||||
| Selling, general and administrative | 35,226 | 35,607 | 31,451 | 141,786 | 133,012 | ||||||||||||||
| Total operating expenses | 65,730 | 66,850 | 59,617 | 263,724 | 248,777 | ||||||||||||||
| Gain on sale of business | — | — | 72,953 | 20,581 | 72,953 | ||||||||||||||
| Operating income | 7,850 | 17,855 | 81,270 | 64,780 | 82,756 | ||||||||||||||
| Interest income, net | 3,472 | 3,650 | 2,376 | 13,693 | 6,796 | ||||||||||||||
| Other income (expense), net | 617 | (558 | ) | (1,546 | ) | 939 | (285 | ) | |||||||||||
| Income before income taxes | 11,939 | 20,947 | 82,100 | 79,412 | 89,267 | ||||||||||||||
| Provision for income taxes | 2,234 | 2,211 | 6,254 | 9,798 | 6,880 | ||||||||||||||
| Net income | $ | 9,705 | $ | 18,736 | $ | 75,846 | $ | 69,614 | $ | 82,387 | |||||||||
| Net income per share: | |||||||||||||||||||
| Basic | $ | 0.13 | $ | 0.24 | $ | 0.98 | $ | 0.90 | $ | 1.06 | |||||||||
| Diluted | $ | 0.12 | $ | 0.24 | $ | 0.97 | $ | 0.89 | $ | 1.05 | |||||||||
| Weighted-average number of shares used in per share calculations: | |||||||||||||||||||
| Basic | 77,267 | 77,406 | 77,684 | 77,340 | 77,370 | ||||||||||||||
| Diluted | 77,982 | 78,439 | 78,410 | 78,437 | 78,159 | ||||||||||||||
| FORMFACTOR, INC. NON-GAAP FINANCIAL MEASURE RECONCILIATIONS (In thousands, except per share amounts) (Unaudited) | |||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| December 28, 2024 | September 28, 2024 | December 30, 2023 | December 28, 2024 | December 30, 2023 | |||||||||||||||
| GAAP Gross Profit | $ | 73,580 | $ | 84,705 | $ | 67,934 | $ | 307,923 | $ | 258,580 | |||||||||
| Adjustments: | |||||||||||||||||||
| Amortization of intangibles, inventory and fixed asset fair value adjustments due to acquisitions | 555 | 530 | 756 | 2,216 | 4,336 | ||||||||||||||
| Stock-based compensation | 1,944 | 1,934 | 2,053 | 7,738 | 6,854 | ||||||||||||||
| Restructuring charges | 32 | 524 | — | 639 | 357 | ||||||||||||||
| Non-GAAP Gross Profit | $ | 76,111 | $ | 87,693 | $ | 70,743 | $ | 318,516 | $ | 270,127 | |||||||||
| GAAP Gross Margin | 38.8 | % | 40.7 | % | 40.4 | % | 40.3 | % | 39.0 | % | |||||||||
| Adjustments: | |||||||||||||||||||
| Amortization of intangibles, inventory and fixed asset fair value adjustments due to acquisitions | 0.4 | % | 0.3 | % | 0.5 | % | 0.3 | % | 0.6 | % | |||||||||
| Stock-based compensation | 1.0 | % | 0.9 | % | 1.2 | % | 1.0 | % | 1.0 | % | |||||||||
| Restructuring charges | — | % | 0.3 | % | — | % | 0.1 | % | 0.1 | % | |||||||||
| Non-GAAP Gross Margin | 40.2 | % | 42.2 | % | 42.1 | % | 41.7 | % | 40.7 | % | |||||||||
| GAAP operating expenses | $ | 65,730 | $ | 66,850 | $ | 59,617 | $ | 263,724 | $ | 248,777 | |||||||||
| Adjustments: | |||||||||||||||||||
| Amortization of intangibles and other | (191 | ) | (191 | ) | (518 | ) | (764 | ) | (4,081 | ) | |||||||||
| Stock-based compensation | (8,269 | ) | (7,002 | ) | (7,230 | ) | (32,025 | ) | (31,762 | ) | |||||||||
| Restructuring charges | (371 | ) | (298 | ) | — | (767 | ) | (1,183 | ) | ||||||||||
| Costs related to sale and acquisition of businesses | (1,689 | ) | (13 | ) | (268 | ) | (2,391 | ) | (2,407 | ) | |||||||||
| Non-GAAP operating expenses | $ | 55,210 | $ | 59,346 | $ | 51,601 | $ | 227,777 | $ | 209,344 | |||||||||
| GAAP operating income | $ | 7,850 | $ | 17,855 | $ | 81,270 | $ | 64,780 | $ | 82,756 | |||||||||
| Adjustments: | |||||||||||||||||||
| Amortization of intangibles, inventory and fixed asset fair value adjustments due to acquisitions, and other | 746 | 721 | 1,274 | 2,980 | 8,417 | ||||||||||||||
| Stock-based compensation | 10,213 | 8,936 | 9,283 | 39,763 | 38,616 | ||||||||||||||
| Restructuring charges | 403 | 822 | — | 1,406 | 1,540 | ||||||||||||||
| Gain on sale of business, net of cost related to sale and acquisition of businesses | 1,689 | 13 | (72,685 | ) | (18,190 | ) | (70,546 | ) | |||||||||||
| Non-GAAP operating income | $ | 20,901 | $ | 28,347 | $ | 19,142 | $ | 90,739 | $ | 60,783 | |||||||||
| FORMFACTOR, INC. NON-GAAP FINANCIAL MEASURE RECONCILIATIONS (In thousands, except per share amounts) (Unaudited) | |||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| December 28, 2024 | September 28, 2024 | December 30, 2023 | December 28, 2024 | December 30, 2023 | |||||||||||||||
| GAAP net income | $ | 9,705 | $ | 18,736 | $ | 75,846 | $ | 69,614 | $ | 82,387 | |||||||||
| Adjustments: | |||||||||||||||||||
| Amortization of intangibles, inventory and fixed asset fair value adjustments due to acquisitions, and other | 746 | 721 | 1,274 | 2,980 | 8,417 | ||||||||||||||
| Stock-based compensation | 10,213 | 8,936 | 9,283 | 39,763 | 38,616 | ||||||||||||||
| Restructuring charges | 415 | 822 | — | 1,418 | 1,540 | ||||||||||||||
| Gain on sale of business, net of cost related to sale and acquisition of businesses | 1,689 | 13 | (72,685 | ) | (18,190 | ) | (70,546 | ) | |||||||||||
| Income tax effect of non-GAAP adjustments | (1,445 | ) | (2,002 | ) | 2,026 | (5,368 | ) | (3,624 | ) | ||||||||||
| Non-GAAP net income | $ | 21,323 | $ | 27,226 | $ | 15,744 | $ | 90,217 | $ | 56,790 | |||||||||
| GAAP net income per share: | |||||||||||||||||||
| Basic | $ | 0.13 | $ | 0.24 | $ | 0.98 | $ | 0.90 | $ | 1.06 | |||||||||
| Diluted | $ | 0.12 | $ | 0.24 | $ | 0.97 | $ | 0.89 | $ | 1.05 | |||||||||
| Non-GAAP net income per share: | |||||||||||||||||||
| Basic | $ | 0.28 | $ | 0.35 | $ | 0.20 | $ | 1.17 | $ | 0.73 | |||||||||
| Diluted | $ | 0.27 | $ | 0.35 | $ | 0.20 | $ | 1.15 | $ | 0.73 | |||||||||
| FORMFACTOR, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | |||||||
| Twelve Months Ended | |||||||
| December 28, 2024 | December 30, 2023 | ||||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 69,614 | $ | 82,387 | |||
| Selected adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation | 30,321 | 30,603 | |||||
| Amortization | 2,582 | 6,850 | |||||
| Stock-based compensation expense | 39,763 | 38,616 | |||||
| Provision for excess and obsolete inventories | 12,342 | 15,003 | |||||
| Gain on sale of business | (20,581 | ) | (72,953 | ) | |||
| Non-cash restructuring charges | 428 | — | |||||
| Other activity impacting operating cash flows | (16,507 | ) | (35,904 | ) | |||
| Net cash provided by operating activities | 117,534 | 64,602 | |||||
| Cash flows from investing activities: | |||||||
| Acquisition of property, plant and equipment | (38,436 | ) | (56,027 | ) | |||
| Proceeds from sale of business | 21,585 | 101,785 | |||||
| Purchases of marketable securities, net | (15,129 | ) | (16,709 | ) | |||
| Purchase of promissory note receivable | (1,500 | ) | — | ||||
| Net cash provided by (used in) investing activities | (33,480 | ) | 29,049 | ||||
| Cash flows from financing activities: | |||||||
| Purchase of common stock through stock repurchase program | (53,302 | ) | (19,801 | ) | |||
| Proceeds from issuances of common stock | 9,748 | 8,822 | |||||
| Principal repayments on term loans | (1,075 | ) | (1,045 | ) | |||
| Tax withholdings related to net share settlements of equity awards | (19,983 | ) | (10,687 | ) | |||
| Net cash used in financing activities | (64,612 | ) | (22,711 | ) | |||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3,509 | ) | (2,649 | ) | |||
| Net increase in cash, cash equivalents and restricted cash | 15,933 | 68,291 | |||||
| Cash, cash equivalents and restricted cash, beginning of period | 181,273 | 112,982 | |||||
| Cash, cash equivalents and restricted cash, end of period | $ | 197,206 | $ | 181,273 | |||
| FORMFACTOR, INC. RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOW (In thousands) (Unaudited) | |||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| December 28, 2024 | September 28, 2024 | December 30, 2023 | December 28, 2024 | December 30, 2023 | |||||||||||||||
| Net cash provided by operating activities | $ | 35,913 | $ | 26,731 | $ | 9,250 | $ | 117,534 | $ | 64,602 | |||||||||
| Adjustments: | |||||||||||||||||||
| Sale of business and acquisition related payments in working capital | 506 | 2,134 | 268 | 3,317 | 2,407 | ||||||||||||||
| Cash paid for interest | 93 | 97 | 105 | 391 | 422 | ||||||||||||||
| Capital expenditures | (7,663 | ) | (8,939 | ) | (9,933 | ) | (38,436 | ) | (56,027 | ) | |||||||||
| Free cash flow | $ | 28,849 | $ | 20,023 | $ | (310 | ) | $ | 82,806 | $ | 11,404 | ||||||||
| FORMFACTOR, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) | ||||||||||||
| December 28, 2024 | September 28, 2024 | December 30, 2023 | ||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 190,728 | $ | 184,506 | $ | 177,812 | ||||||
| Marketable securities | 169,295 | 169,961 | 150,507 | |||||||||
| Accounts receivable, net of allowance for credit losses | 104,294 | 116,866 | 102,957 | |||||||||
| Inventories, net | 101,676 | 105,374 | 111,685 | |||||||||
| Restricted cash | 3,746 | 3,773 | 1,152 | |||||||||
| Prepaid expenses and other current assets | 35,389 | 34,302 | 29,667 | |||||||||
| Total current assets | 605,128 | 614,782 | 573,780 | |||||||||
| Restricted cash | 2,732 | 2,210 | 2,309 | |||||||||
| Operating lease, right-of-use-assets | 22,579 | 25,034 | 30,519 | |||||||||
| Property, plant and equipment, net of accumulated depreciation | 210,230 | 204,108 | 204,399 | |||||||||
| Goodwill | 199,171 | 200,137 | 201,090 | |||||||||
| Intangibles, net | 10,355 | 11,017 | 12,938 | |||||||||
| Deferred tax assets | 92,012 | 92,826 | 78,964 | |||||||||
| Other assets | 4,008 | 3,669 | 2,795 | |||||||||
| Total assets | $ | 1,146,215 | $ | 1,153,783 | $ | 1,106,794 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | $ | 62,287 | $ | 52,086 | $ | 63,857 | ||||||
| Accrued liabilities | 43,742 | 46,508 | 41,037 | |||||||||
| Current portion of term loan, net of unamortized issuance costs | 1,106 | 1,098 | 1,075 | |||||||||
| Deferred revenue | 15,847 | 20,972 | 16,704 | |||||||||
| Operating lease liabilities | 8,363 | 8,512 | 8,422 | |||||||||
| Total current liabilities | 131,345 | 129,176 | 131,095 | |||||||||
| Term loan, less current portion, net of unamortized issuance costs | 12,208 | 12,488 | 13,314 | |||||||||
| Long-term operating lease liabilities | 17,550 | 19,731 | 25,334 | |||||||||
| Deferred grant | 18,000 | 18,000 | 18,000 | |||||||||
| Other liabilities | 19,344 | 19,378 | 10,247 | |||||||||
| Total liabilities | 198,447 | 198,773 | 197,990 | |||||||||
| Stockholders’ equity: | ||||||||||||
| Common stock | 77 | 77 | 77 | |||||||||
| Additional paid-in capital | 837,586 | 845,466 | 861,448 | |||||||||
| Accumulated other comprehensive loss | (10,840 | ) | (1,773 | ) | (4,052 | ) | ||||||
| Accumulated income | 120,945 | 111,240 | 51,331 | |||||||||
| Total stockholders’ equity | 947,768 | 955,010 | 908,804 | |||||||||
| Total liabilities and stockholders’ equity | $ | 1,146,215 | $ | 1,153,783 | $ | 1,106,794 | ||||||
About our Non-GAAP Financial Measures:
We believe that the presentation of non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and free cash flow provides supplemental information that is important to understanding financial and business trends and other factors relating to our financial condition and results of operations. Non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income are among the primary indicators used by management as a basis for planning and forecasting future periods, and by management and our board of directors to determine whether our operating performance has met certain targets and thresholds. Management uses non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income when evaluating operating performance because it believes that the exclusion of the items indicated herein, for which the amounts or timing may vary significantly depending upon our activities and other factors, facilitates comparability of our operating performance from period to period. We use free cash flow to conduct and evaluate our business as an additional way of viewing our liquidity that, when viewed with our GAAP results, provides a more complete understanding of factors and trends affecting our cash flows. Many investors also prefer to track free cash flow, as opposed to only GAAP earnings. Free cash flow has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures, and therefore it is important to view free cash flow as a complement to our entire consolidated statements of cash flows. We have chosen to provide this non-GAAP information to investors so they can analyze our operating results closer to the way that management does, and use this information in their assessment of our business and the valuation of our Company. We compute non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income, by adjusting GAAP net income, GAAP net income per basic and diluted share, GAAP gross profit, GAAP gross margin, GAAP operating expenses, and GAAP operating income to remove the impact of certain items and the tax effect, if applicable, of those adjustments. These non-GAAP measures are not in accordance with, or an alternative to, GAAP, and may be materially different from other non-GAAP measures, including similarly titled non-GAAP measures used by other companies. The presentation of this additional information should not be considered in isolation from, as a substitute for, or superior to, net income, net income per basic and diluted share, gross profit, gross margin, operating expenses, or operating income in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect certain items that may have a material impact upon our reported financial results. We may expect to continue to incur expenses of a nature similar to the non-GAAP adjustments described above, and exclusion of these items from our non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income should not be construed as an inference that these costs are unusual, infrequent or non-recurring. For more information on the non-GAAP adjustments, please see the table captioned “Non-GAAP Financial Measure Reconciliations” and “Reconciliation of Cash Provided by Operating Activities to non-GAAP Free Cash Flow” included in this press release.
Source: FormFactor, Inc.
FORM-F
Investor Contact:
Stan Finkelstein
Investor Relations
(925) 290-4273
ir@formfactor.com
FAQ
What was FormFactor's (FORM) revenue growth in fiscal year 2024?
How much did FormFactor's (FORM) Q4 2024 revenue decline compared to Q3 2024?
What is FormFactor's (FORM) investment in FICT ?
How much did FormFactor's (FORM) High Bandwidth Memory business grow in 2024?
What is FormFactor's (FORM) Q1 2025 revenue guidance?
