FormFactor, Inc. Reports 2024 Second Quarter Results
FormFactor, Inc. (NASDAQ: FORM) reported strong Q2 2024 financial results, with revenue of $197.5 million, up 17.0% quarter-over-quarter and 26.7% year-over-year. The company's DRAM probe card revenue reached an all-time record, driven by High Bandwidth Memory (HBM) demand doubling for the third consecutive quarter. GAAP net income was $19.4 million ($0.25 per share), while non-GAAP net income was $27.3 million ($0.35 per share). Gross margin improved to 44.0% GAAP and 45.3% non-GAAP. For Q3 2024, FormFactor expects revenue of $200 million ± $5 million and non-GAAP EPS of $0.31 ± $0.04, anticipating steady overall demand but a less favorable DRAM product mix.
FormFactor, Inc. (NASDAQ: FORM) ha riportato risultati finanziari solidi per il secondo trimestre del 2024, con un fatturato di 197,5 milioni di dollari, in aumento del 17,0% rispetto al trimestre precedente e del 26,7% rispetto allo stesso periodo dell'anno scorso. I ricavi dell'azienda dai circuiti di prova DRAM hanno raggiunto un record assoluto, spinti dalla domanda di High Bandwidth Memory (HBM) che è raddoppiata per il terzo trimestre consecutivo. Il reddito netto GAAP è stato di 19,4 milioni di dollari (0,25 dollari per azione), mentre il reddito netto non-GAAP è stato di 27,3 milioni di dollari (0,35 dollari per azione). Il margine lordo è migliorato, raggiungendo il 44,0% GAAP e il 45,3% non-GAAP. Per il terzo trimestre del 2024, FormFactor prevede un fatturato di 200 milioni di dollari ± 5 milioni e un utile per azione non-GAAP di 0,31 dollari ± 0,04 dollari, prevedendo una domanda complessiva costante ma una combinazione di prodotti DRAM meno favorevole.
FormFactor, Inc. (NASDAQ: FORM) reportó sólidos resultados financieros para el segundo trimestre de 2024, con ingresos de 197.5 millones de dólares, un aumento del 17.0% en comparación con el trimestre anterior y del 26.7% en comparación con el año anterior. Los ingresos de la compañía por tarjetas de prueba DRAM alcanzaron un récord histórico, impulsados por la demanda de High Bandwidth Memory (HBM) que se duplicó por tercer trimestre consecutivo. El ingreso neto GAAP fue de 19.4 millones de dólares (0.25 dólares por acción), mientras que el ingreso neto no-GAAP fue de 27.3 millones de dólares (0.35 dólares por acción). El margen bruto mejoró al 44.0% GAAP y al 45.3% no-GAAP. Para el tercer trimestre de 2024, FormFactor espera ingresos de 200 millones de dólares ± 5 millones y una EPS no-GAAP de 0.31 dólares ± 0.04 dólares, anticipando una demanda general constante pero una combinación de productos DRAM menos favorable.
FormFactor, Inc. (NASDAQ: FORM)는 2024년 2분기 강력한 재무 결과를 보고했습니다. 매출은 1억 9750만 달러로, 전 분기 대비 17.0%, 전년 동기 대비 26.7% 증가했습니다. 회사의 DRAM 프로브 카드 수익은 High Bandwidth Memory (HBM) 수요의 세 번째 연속 분기 배가에 힘입어 사상 최고치를 기록했습니다. GAAP 순이익은 1940만 달러 (주당 0.25 달러)였으며, 비 GAAP 순이익은 2730만 달러 (주당 0.35 달러)였습니다. 총 이익률은 GAAP 44.0%, 비 GAAP 45.3%로 개선되었습니다. 2024년 3분기에는 FormFactor가 매출을 2억 달러 ± 500만 달러로 예상하고 비 GAAP EPS는 0.31달러 ± 0.04달러로 예상하며 전반적인 수요는 안정적이지만 DRAM 제품 믹스는 덜 유리할 것으로 보고 있습니다.
FormFactor, Inc. (NASDAQ: FORM) a rapporté des résultats financiers solides pour le deuxième trimestre de 2024, avec des revenus de 197,5 millions de dollars, en hausse de 17,0% par rapport au trimestre précédent et de 26,7% par rapport à l'année précédente. Les revenus de l'entreprise provenant des cartes de test DRAM ont atteint un niveau record, soutenus par une demande de High Bandwidth Memory (HBM) qui a doublé pour le troisième trimestre consécutif. Le revenu net GAAP s'élevait à 19,4 millions de dollars (0,25 dollars par action), tandis que le revenu net non-GAAP était de 27,3 millions de dollars (0,35 dollars par action). La marge brute s'est améliorée à 44,0% GAAP et 45,3% non-GAAP. Pour le troisième trimestre de 2024, FormFactor prévoit des revenus de 200 millions de dollars ± 5 millions et un bénéfice par action non-GAAP de 0,31 dollars ± 0,04 dollars, s'attendant à une demande globale stable mais un mélange de produits DRAM moins favorable.
FormFactor, Inc. (NASDAQ: FORM) hat im zweiten Quartal 2024 starke finanzielle Ergebnisse berichtet, mit einem Umsatz von 197,5 Millionen Dollar, was einem Anstieg von 17,0% im Vergleich zum vorherigen Quartal und 26,7% im Vergleich zum Vorjahr entspricht. Die Einnahmen des Unternehmens aus DRAM-Testkarten erreichten einen Rekordwert, angetrieben durch die Nachfrage nach High Bandwidth Memory (HBM), die im dritten Quartal in Folge sich verdoppelt hat. Der GAAP-Nettoertrag betrug 19,4 Millionen Dollar (0,25 Dollar pro Aktie), während der Non-GAAP-Nettoertrag 27,3 Millionen Dollar (0,35 Dollar pro Aktie) betrug. Die Bruttomarge verbesserte sich auf 44,0% GAAP und 45,3% Non-GAAP. Für das dritte Quartal 2024 erwartet FormFactor einen Umsatz von 200 Millionen Dollar ± 5 Millionen und einen Non-GAAP EPS von 0,31 Dollar ± 0,04 Dollar und geht von einer stabilen Gesamtnachfrage, aber einer weniger vorteilhaften DRAM-Produktmischung aus.
- Q2 revenue increased 17.0% quarter-over-quarter and 26.7% year-over-year to $197.5 million
- DRAM probe card revenue reached an all-time record
- High Bandwidth Memory (HBM) revenue doubled for the third consecutive quarter
- Non-GAAP gross margin improved to 45.3% from 38.7% in Q1 2024
- Q3 2024 revenue guidance of $200 million ± $5 million indicates continued growth
- GAAP net income decreased to $19.4 million in Q2 2024 from $21.8 million in Q1 2024
- Free cash flow decreased to $14.2 million in Q2 2024 from $19.7 million in Q1 2024
- Expected less favorable DRAM product mix in Q3 2024
Insights
FormFactor's Q2 2024 results demonstrate strong performance, with revenue of
Key financial highlights include:
- GAAP net income of
$19.4 million , or$0.25 per diluted share - Non-GAAP net income of
$27.3 million , or$0.35 per diluted share - GAAP gross margin of
44.0% , up from37.2% in Q1 2024 - Non-GAAP gross margin of
45.3% , up from38.7% in Q1 2024
The company's improved profitability is noteworthy, with significant margin expansion both sequentially and year-over-year. This suggests effective cost management and operational efficiency. The strong cash flow generation, with
Looking ahead, FormFactor's Q3 2024 outlook indicates continued stability, with expected revenue of
Overall, FormFactor's financial performance reflects its strong position in growing markets, particularly in advanced packaging and AI-related technologies. The company's ability to capitalize on these trends while maintaining profitability is a positive sign for investors.
FormFactor's Q2 2024 results highlight several important trends in the semiconductor industry. The company's record-breaking performance in DRAM probe cards, particularly in High Bandwidth Memory (HBM), is a clear indicator of the growing demand for AI infrastructure.
Key industry insights:
- HBM revenue doubled for the third consecutive quarter, reflecting the rapid expansion of AI-related semiconductor production.
- Advanced packaging is increasing test intensity and complexity, benefiting companies like FormFactor even as traditional end-markets like PC and mobile experience delayed refresh cycles.
- The steady demand for DDR5 new-design activity suggests ongoing transitions to newer memory technologies.
The company's success in these areas demonstrates its strategic alignment with major industry shifts, particularly the AI boom and the move towards more advanced, complex chip designs. This positions FormFactor well to capitalize on the increasing test and measurement requirements in semiconductor manufacturing.
However, the outlook for Q3 2024 indicates a potential shift in product mix, with a heavier weighting towards DDR5 probe cards. This could impact margins, as suggested by the slightly lower gross margin forecast. It's important to monitor how this mix shift affects FormFactor's profitability and whether it represents a broader industry trend or a temporary fluctuation.
The semiconductor industry's cyclical nature and its sensitivity to macroeconomic factors remain important considerations. While FormFactor's diverse exposure to different market segments provides some resilience, investors should keep an eye on broader industry dynamics and potential impacts from global economic conditions.
Q2 Revenue and Profitability Exceed the Midpoint of the Outlook Range;
Sees Steady Overall Demand in the Third Quarter
LIVERMORE, Calif., July 31, 2024 (GLOBE NEWSWIRE) -- FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the second quarter of fiscal 2024 ended June 29, 2024. Quarterly revenues were
- Probe Card segment strength, which was expected, drove second-quarter results, with sequential increases in Foundry & Logic, DRAM and Flash markets.
- DRAM probe card revenue reached an all-time record; revenue from High Bandwidth Memory (“HBM”) doubled for the third consecutive quarter.
- Revenue growth reflects exposure to expanding areas, like advanced packaging which is increasing test intensity and complexity, enabling FormFactor to grow despite the delayed refresh cycle in important high-unit-volume end-markets like PC and mobile.
“FormFactor set an all-time record for DRAM probe-card revenue in the second quarter, driven by sequential doubling of high-bandwidth-memory revenue and steady DDR5 new-design activity,” said Mike Slessor, CEO of FormFactor, Inc. “The demand for HBM probe cards is the direct result of large hyperscalers’ investments in generative-AI infrastructure, and our customers’ corresponding ramps of HBM semiconductor capacity and output.”
Second Quarter and Fiscal 2024 Highlights
On a GAAP basis, net income for the second quarter of fiscal 2024 was
On a non-GAAP basis, net income for the second 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 second quarter of fiscal 2024 was
Outlook
Dr. Slessor added, “In the third quarter, we expect overall demand to continue at levels similar to those achieved in the second quarter, although we expect a less-favorable DRAM product mix, with heavier weighting towards DDR5 probe cards.”
For the third quarter ending September 28, 2024, 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 and amortization of intangible assets and fixed asset fair value adjustments due to acquisitions, 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 six months ended June 29, 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, and other statements regarding the Company’s business. Forward-looking statements may contain words such as “may,” “might,” “will,” “expect,” “plan,” “anticipate,” 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; 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 | Six Months Ended | |||||||||||||||
| June 29, 2024 | March 30, 2024 | July 1, 2023 | June 29, 2024 | July 1, 2023 | ||||||||||||
| Revenues | $ | 197,474 | $ | 168,725 | $ | 155,916 | $ | 366,199 | $ | 323,364 | ||||||
| Cost of revenues | 110,574 | 105,987 | 95,633 | 216,561 | 202,003 | |||||||||||
| Gross profit | 86,900 | 62,738 | 60,283 | 149,638 | 121,361 | |||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 31,564 | 28,627 | 28,340 | 60,191 | 56,585 | |||||||||||
| Selling, general and administrative | 37,874 | 33,079 | 33,255 | 70,953 | 65,997 | |||||||||||
| Total operating expenses | 69,438 | 61,706 | 61,595 | 131,144 | 122,582 | |||||||||||
| Gain on sale of business | 310 | 20,271 | — | 20,581 | — | |||||||||||
| Operating income (loss) | 17,772 | 21,303 | (1,312 | ) | 39,075 | (1,221 | ) | |||||||||
| Interest income, net | 3,415 | 3,156 | 1,482 | 6,571 | 2,758 | |||||||||||
| Other income, net | 360 | 520 | 450 | 880 | 473 | |||||||||||
| Income before income taxes | 21,547 | 24,979 | 620 | 46,526 | 2,010 | |||||||||||
| Provision (benefit) for income taxes | 2,155 | 3,198 | (208 | ) | 5,353 | (160 | ) | |||||||||
| Net income | $ | 19,392 | $ | 21,781 | $ | 828 | $ | 41,173 | $ | 2,170 | ||||||
| Net income per share: | ||||||||||||||||
| Basic | $ | 0.25 | $ | 0.28 | $ | 0.01 | $ | 0.53 | $ | 0.03 | ||||||
| Diluted | $ | 0.25 | $ | 0.28 | $ | 0.01 | $ | 0.52 | $ | 0.03 | ||||||
| Weighted-average number of shares used in per share calculations: | ||||||||||||||||
| Basic | 77,235 | 77,452 | 77,159 | 77,343 | 77,112 | |||||||||||
| Diluted | 78,717 | 78,490 | 77,616 | 78,746 | 77,450 | |||||||||||
| FORMFACTOR, INC. | |||||||||||||||||||
| NON-GAAP FINANCIAL MEASURE RECONCILIATIONS | |||||||||||||||||||
| (In thousands, except per share amounts) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 29, 2024 | March 30, 2024 | July 1, 2023 | June 29, 2024 | July 1, 2023 | |||||||||||||||
| GAAP Gross Profit | $ | 86,900 | $ | 62,738 | $ | 60,283 | $ | 149,638 | $ | 121,361 | |||||||||
| Adjustments: | |||||||||||||||||||
| Amortization of intangibles, inventory and fixed asset fair value adjustments due to acquisitions, and other | 584 | 630 | 1,106 | 1,214 | 2,462 | ||||||||||||||
| Stock-based compensation | 1,932 | 1,928 | 1,515 | 3,860 | 3,425 | ||||||||||||||
| Restructuring charges | — | — | 332 | — | 357 | ||||||||||||||
| Non-GAAP Gross Profit | $ | 89,416 | $ | 65,296 | $ | 63,236 | $ | 154,712 | $ | 127,605 | |||||||||
| GAAP Gross Margin | 44.0 | % | 37.2 | % | 38.7 | % | 40.9 | % | 37.5 | % | |||||||||
| Adjustments: | |||||||||||||||||||
| Amortization of intangibles, inventory and fixed asset fair value adjustments due to acquisitions, and other | 0.3 | % | 0.4 | % | 0.7 | % | 0.3 | % | 0.8 | % | |||||||||
| Stock-based compensation | 1.0 | % | 1.1 | % | 1.0 | % | 1.1 | % | 1.1 | % | |||||||||
| Restructuring charges | — | % | — | % | 0.2 | % | — | % | 0.1 | % | |||||||||
| Non-GAAP Gross Margin | 45.3 | % | 38.7 | % | 40.6 | % | 42.3 | % | 39.5 | % | |||||||||
| GAAP operating expenses | $ | 69,438 | $ | 61,706 | $ | 61,595 | $ | 131,144 | $ | 122,582 | |||||||||
| Adjustments: | |||||||||||||||||||
| Amortization of intangibles and other | (240 | ) | (240 | ) | (1,550 | ) | (480 | ) | (3,097 | ) | |||||||||
| Stock-based compensation | (8,277 | ) | (8,477 | ) | (7,689 | ) | (16,754 | ) | (15,069 | ) | |||||||||
| Restructuring charges | — | — | (286 | ) | — | (1,183 | ) | ||||||||||||
| Costs related to sale of business | (43 | ) | (646 | ) | — | (689 | ) | — | |||||||||||
| Non-GAAP operating expenses | $ | 60,878 | $ | 52,343 | $ | 52,070 | $ | 113,221 | $ | 103,233 | |||||||||
| GAAP operating income (loss) | $ | 17,772 | $ | 21,303 | $ | (1,312 | ) | $ | 39,075 | $ | (1,221 | ) | |||||||
| Adjustments: | |||||||||||||||||||
| Amortization of intangibles, inventory and fixed asset fair value adjustments due to acquisitions, and other | 824 | 870 | 2,656 | 1,694 | 5,559 | ||||||||||||||
| Stock-based compensation | 10,209 | 10,405 | 9,204 | 20,614 | 18,494 | ||||||||||||||
| Restructuring charges | — | — | 618 | — | 1,540 | ||||||||||||||
| Gain on sale of business and related costs | (267 | ) | (19,625 | ) | — | (19,892 | ) | — | |||||||||||
| Non-GAAP operating income | $ | 28,538 | $ | 12,953 | $ | 11,166 | $ | 41,491 | $ | 24,372 | |||||||||
| FORMFACTOR, INC. | |||||||||||||||||||
| NON-GAAP FINANCIAL MEASURE RECONCILIATIONS | |||||||||||||||||||
| (In thousands, except per share amounts) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 29, 2024 | March 30, 2024 | July 1, 2023 | June 29, 2024 | July 1, 2023 | |||||||||||||||
| GAAP net income | $ | 19,392 | $ | 21,781 | $ | 828 | $ | 41,173 | $ | 2,170 | |||||||||
| Adjustments: | |||||||||||||||||||
| Amortization of intangibles, inventory and fixed asset fair value adjustments due to acquisitions, and other | 824 | 870 | 2,656 | 1,694 | 5,559 | ||||||||||||||
| Stock-based compensation | 10,209 | 10,405 | 9,204 | 20,614 | 18,494 | ||||||||||||||
| Restructuring charges | — | — | 618 | — | 1,540 | ||||||||||||||
| Gain on sale of business and related costs | (267 | ) | (19,625 | ) | — | (19,892 | ) | — | |||||||||||
| Income tax effect of non-GAAP adjustments | (2,835 | ) | 913 | (2,068 | ) | (1,922 | ) | (4,033 | ) | ||||||||||
| Non-GAAP net income | $ | 27,323 | $ | 14,344 | $ | 11,238 | $ | 41,667 | $ | 23,730 | |||||||||
| GAAP net income per share: | |||||||||||||||||||
| Basic | $ | 0.25 | $ | 0.28 | $ | 0.01 | $ | 0.53 | $ | 0.03 | |||||||||
| Diluted | $ | 0.25 | $ | 0.28 | $ | 0.01 | $ | 0.52 | $ | 0.03 | |||||||||
| Non-GAAP net income per share: | |||||||||||||||||||
| Basic | $ | 0.35 | $ | 0.19 | $ | 0.15 | $ | 0.54 | $ | 0.31 | |||||||||
| Diluted | $ | 0.35 | $ | 0.18 | $ | 0.14 | $ | 0.53 | $ | 0.31 | |||||||||
| FORMFACTOR, INC. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (In thousands) | |||||||
| (Unaudited) | |||||||
| Six Months Ended | |||||||
| June 29, 2024 | July 1, 2023 | ||||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 41,173 | $ | 2,170 | |||
| Selected adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation | 14,563 | 15,121 | |||||
| Amortization | 1,280 | 4,766 | |||||
| Stock-based compensation expense | 20,614 | 18,494 | |||||
| Provision for excess and obsolete inventories | 6,277 | 8,628 | |||||
| Gain on sale of business | (20,581 | ) | — | ||||
| Other activity impacting operating cash flows | (8,436 | ) | (14,398 | ) | |||
| Net cash provided by operating activities | 54,890 | 34,781 | |||||
| Cash flows from investing activities: | |||||||
| Acquisition of property, plant and equipment | (21,834 | ) | (40,177 | ) | |||
| Proceeds from sale of business | 21,585 | — | |||||
| Purchases of marketable securities, net | (9,711 | ) | (8,287 | ) | |||
| Net cash used in investing activities | (9,960 | ) | (48,464 | ) | |||
| Cash flows from financing activities: | |||||||
| Purchase of common stock through stock repurchase program | (20,271 | ) | — | ||||
| Proceeds from issuances of common stock | 4,948 | 5,024 | |||||
| Principal repayments on term loans | (534 | ) | (519 | ) | |||
| Tax withholdings related to net share settlements of equity awards | (3,569 | ) | (456 | ) | |||
| Net cash provided by (used in) financing activities | (19,426 | ) | 4,049 | ||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,826 | ) | (1,958 | ) | |||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 22,678 | (11,592 | ) | ||||
| Cash, cash equivalents and restricted cash, beginning of period | 181,273 | 112,982 | |||||
| Cash, cash equivalents and restricted cash, end of period | $ | 203,951 | $ | 101,390 | |||
| FORMFACTOR, INC. | |||||||||||||||||||
| RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOW | |||||||||||||||||||
| (In thousands) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 29, 2024 | March 30, 2024 | July 1, 2023 | June 29, 2024 | July 1, 2023 | |||||||||||||||
| Net cash provided by operating activities | $ | 21,878 | $ | 33,012 | $ | 22,472 | $ | 54,890 | $ | 34,781 | |||||||||
| Adjustments: | |||||||||||||||||||
| Sale of business related payments in working capital | 630 | 47 | — | 677 | — | ||||||||||||||
| Cash paid for interest | 101 | 100 | 106 | 201 | 212 | ||||||||||||||
| Capital expenditures | (8,398 | ) | (13,436 | ) | (20,476 | ) | (21,834 | ) | (40,177 | ) | |||||||||
| Free cash flow | $ | 14,211 | $ | 19,723 | $ | 2,102 | $ | 33,934 | $ | (5,184 | ) | ||||||||
| FORMFACTOR, INC. | |||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
| (In thousands) | |||||||||||
| (Unaudited) | |||||||||||
| June 29, 2024 | March 30, 2024 | December 30, 2023 | |||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 195,914 | $ | 186,296 | $ | 177,812 | |||||
| Marketable securities | 161,710 | 162,863 | 150,507 | ||||||||
| Accounts receivable, net of allowance for credit losses | 113,277 | 96,407 | 102,957 | ||||||||
| Inventories, net | 114,814 | 108,774 | 111,685 | ||||||||
| Restricted cash | 5,939 | 5,865 | 1,152 | ||||||||
| Prepaid expenses and other current assets | 28,964 | 28,291 | 29,667 | ||||||||
| Total current assets | 620,618 | 588,496 | 573,780 | ||||||||
| Restricted cash | 2,098 | 2,220 | 2,309 | ||||||||
| Operating lease, right-of-use-assets | 26,650 | 28,543 | 30,519 | ||||||||
| Property, plant and equipment, net of accumulated depreciation | 204,102 | 205,772 | 204,399 | ||||||||
| Goodwill | 199,548 | 199,653 | 201,090 | ||||||||
| Intangibles, net | 11,657 | 12,297 | 12,938 | ||||||||
| Deferred tax assets | 88,841 | 80,007 | 78,964 | ||||||||
| Other assets | 2,751 | 2,810 | 2,795 | ||||||||
| Total assets | $ | 1,156,265 | $ | 1,119,798 | $ | 1,106,794 | |||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 62,235 | $ | 65,995 | $ | 63,857 | |||||
| Accrued liabilities | 49,523 | 37,716 | 41,037 | ||||||||
| Current portion of term loan, net of unamortized issuance costs | 1,090 | 1,083 | 1,075 | ||||||||
| Deferred revenue | 17,953 | 17,519 | 16,704 | ||||||||
| Operating lease liabilities | 8,240 | 8,245 | 8,422 | ||||||||
| Total current liabilities | 139,041 | 130,558 | 131,095 | ||||||||
| Term loan, less current portion, net of unamortized issuance costs | 12,765 | 13,041 | 13,314 | ||||||||
| Long-term operating lease liabilities | 21,441 | 23,432 | 25,334 | ||||||||
| Deferred grant | 18,000 | 18,000 | 18,000 | ||||||||
| Other liabilities | 17,102 | 11,017 | 10,247 | ||||||||
| Total liabilities | 208,349 | 196,048 | 197,990 | ||||||||
| Stockholders’ equity: | |||||||||||
| Common stock | 77 | 77 | 77 | ||||||||
| Additional paid-in capital | 863,283 | 857,326 | 861,448 | ||||||||
| Accumulated other comprehensive loss | (7,948 | ) | (6,765 | ) | (4,052 | ) | |||||
| Accumulated income | 92,504 | 73,112 | 51,331 | ||||||||
| Total stockholders’ equity | 947,916 | 923,750 | 908,804 | ||||||||
| Total liabilities and stockholders’ equity | $ | 1,156,265 | $ | 1,119,798 | $ | 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 (loss) 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 (loss) 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.
Investor Contact:
Stan Finkelstein
Investor Relations
(925) 290-4273
ir@formfactor.com
Source: FormFactor, Inc.
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