On a GAAP basis, net loss for the third quarter of fiscal 2013 was $10.7 million or $(0.20) per fully-diluted share, compared to a net loss for the second quarter of fiscal 2013 of $8.4 million or $(0.16) per fully-diluted share, and a net loss for the third quarter of fiscal 2012 of $14.5 million or $(0.29) per fully-diluted share.
On a Non-GAAP basis, net loss for the third quarter of fiscal 2013 was $3.5 million, or $(0.06) per fully-diluted share, compared to a net loss for the second quarter of fiscal 2013 of $0.3 million or $(0.01) per fully-diluted share, and a net loss for the third quarter of fiscal 2012 of $7.7 million or $(0.15) per fully-diluted share.
Although third quarter revenue was within the anticipated range, Non-GAAP gross profit at 24% of sales was significantly below the anticipated range, due to a combination of factors including lower than forecasted manufacturing utilization during September due to a significant drop in demand, lower margins on a specific high-volume DRAM design, increased warranty and service expenses caused by execution challenges at a specific customer and increased excess inventory charges.
For the third quarter, the difference between GAAP gross profit of $12.5 million, 19% of sales, and Non-GAAP gross profit of $16.3 million, 24% of sales, is that Non-GAAP gross profit excludes $0.6 million of stock-based compensation expense and $3.2 million of intangible asset amortization expense.
A reconciliation of GAAP to non-GAAP net loss and net loss per share is provided in the schedules included below.
Cash generation for the third quarter of fiscal 2013 was $1.8 million, compared to cash generation of $1.0 million for the second quarter of fiscal 2013 and cash usage of $1.6 million for the third quarter of fiscal 2012.
"We are currently addressing our Q3 operational execution challenges," said Tom St. Dennis, CEO and Executive Chairman of FormFactor. "Despite our financial performance in Q3, the company made progress in products addressing all markets and delivered positive cash flow for the second consecutive quarter."
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 5:30 a.m. PDT, or 8:30 a.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 October 26, 2013, 9:00 p.m. Pacific Daylight Time, and can be accessed by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) and entering confirmation code 72494882. 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 the company's manufacturing utilization, greater than anticipated warranty and service expenses, variances in margins on specific product designs, increased inventory charges, and seasonal industry trends; risks of the company's ability to realize further operational efficiencies and achieve synergies through the MicroProbe integration; 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 29, 2012, 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/edgar.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 Nine Months Ended
---------------------- ----------------------
September September September September
28, 2013 29, 2012 28, 2013 29, 2012
---------- ---------- ---------- ----------
Revenues $ 67,634 $ 41,262 $ 182,987 $ 130,881
Cost of revenues 55,088 33,110 144,961 102,406
---------- ---------- ---------- ----------
Gross profit 12,546 8,152 38,026 28,475
---------- ---------- ---------- ----------
Operating expenses:
Research and development 10,301 8,573 32,145 30,355
Selling, general and
administrative 12,952 11,594 41,057 34,273
Restructuring charges, net 143 2,481 4,215 2,584
Loss on sale of subsidiary -- -- 300 --
Impairment of long-lived
assets 15 143 194 372
---------- ---------- ---------- ----------
Total operating expenses 23,411 22,791 77,911 67,584
---------- ---------- ---------- ----------
Operating loss (10,865) (14,639) (39,885) (39,109)
Interest income, net 95 163 298 557
Other income, net (91) 171 541 1,127
---------- ---------- ---------- ----------
Loss before income taxes (10,861) (14,305) (39,046) (37,425)
Provision for (benefit from)
income taxes (147) 173 (152) (1,276)
---------- ---------- ---------- ----------
Net loss $ (10,714) $ (14,478) $ (38,894) $ (36,149)
========== ========== ========== ==========
Net loss per share:
Basic and Diluted $ (0.20) $ (0.29) $ (0.72) $ (0.73)
========== ========== ========== ==========
Weighted-average number of
shares used in per share
calculations:
Basic and Diluted 54,437 50,154 54,070 49,805
========== ========== ========== ==========
FORMFACTOR, INC.
RECONCILIATION OF NON-GAAP NET LOSS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
---------------------- ----------------------
September September September September
28, 2013 29, 2012 28, 2013 29, 2012
---------- ---------- ---------- ----------
GAAP net loss $ (10,714) $ (14,478) $ (38,894) $ (36,149)
Stock-based compensation 2,958 2,968 9,125 9,489
Restructuring charges, net 143 2,481 4,215 2,584
Acquisition and integration
related expenses 106 1,175 1,300 1,175
Amortization of intangibles,
inventory and fixed assets
fair value adjustment due
to acquisition 3,955 -- 12,947 --
Impairment of long-lived
assets and loss on sale of
subsidiary 15 143 494 372
Income tax valuation
allowance -- -- 150 --
---------- ---------- ---------- ----------
Non-GAAP net loss $ (3,537) $ (7,711) $ (10,663) $ (22,529)
========== ========== ========== ==========
Non-GAAP net loss per share:
Basic and Diluted $ (0.06) $ (0.15) $ (0.20) $ (0.45)
========== ========== ========== ==========
Weighted-average number of
shares used in per share
calculations:
Basic and Diluted 54,437 50,154 54,070 49,805
========== ========== ========== ==========
FORMFACTOR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
September 28, December 29,
2013 2012
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 59,470 $ 72,243
Marketable securities 96,868 93,545
Accounts receivable, net 46,320 28,919
Inventories, net 22,369 23,616
Deferred tax assets 4,206 4,613
Refundable income taxes 1,568 5,667
Prepaid expenses and other current assets 7,844 10,569
------------- -------------
Total current assets 238,645 239,172
Restricted cash 436 318
Property, plant and equipment, net 36,945 45,515
Goodwill 30,731 30,994
Intangibles, net 61,495 74,276
Deferred tax assets 4,460 4,207
Other assets 1,004 1,200
------------- -------------
Total assets $ 373,716 $ 395,682
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 28,676 $ 21,015
Accrued liabilities 15,313 17,270
Capital leases, current portion 400 573
Income taxes payable 1,344 --
Deferred revenue 6,937 6,189
------------- -------------
Total current liabilities 52,670 45,047
Long-term income taxes payable 2,453 3,028
Capital leases, net of current portion -- 340
Deferred rent and other liabilities 7,910 8,009
------------- -------------
Total liabilities 63,033 56,424
------------- -------------
Stockholders' equity:
Common stock and capital in excess of par
value 692,940 681,211
Accumulated other comprehensive income 305 1,715
Accumulated deficit (382,562) (343,668)
------------- -------------
Total stockholders' equity 310,683 339,258
------------- -------------
Total liabilities and stockholders' equity $ 373,716 $ 395,682
============= =============
