Core Insights - FormFactor (FORM) reported fourth-quarter 2024 adjusted earnings of 27 cents per share, missing the Zacks Consensus Estimate by 6.90%, but showing a 35% increase from the previous year [1] - Revenues for the quarter were $189.5 million, which missed the Zacks Consensus Estimate by 19% and increased by 12.7% year over year, driven by a 77.2% surge in the DRAM probe-card business [2] Financial Performance - Probe card revenues reached $150.6 million, up 18.6% year over year, while Foundry & Logic revenues were $83.3 million, down 0.6% year over year [4] - DRAM revenues accounted for 33.6% of total revenues at $63.6 million, marking a record-setting quarter, whereas Flash revenues fell 49.3% year over year to $3.7 million [4] - Systems revenues were $39.2 million, down 4.9% year over year [5] Geographic Revenue Breakdown - Revenues from Malaysia, Taiwan, China, the rest of the world, South Korea, and Europe saw significant year-over-year increases of 66.7%, 45.4%, 43.3%, 40.7%, 26.5%, and 1.1%, respectively [5] - Conversely, revenues from the United States, Singapore, and Japan declined by 26.6%, 16.9%, and 11%, respectively [5] Operating Metrics - The gross margin contracted by 190 basis points year over year to 40.2%, while non-GAAP operating expenses increased by 7% year over year to $55.2 million [6] - The non-GAAP operating margin compressed by 40 basis points year over year to 11% [6] Cash Flow and Balance Sheet - As of December 28, 2024, cash and cash equivalents, along with marketable securities, totaled $360.0 million, up from $354.5 million as of September 28, 2024 [7] - Cash generated from operating activities was $35.9 million in the reported quarter, significantly up from $9.2 million in the previous quarter [7] - Free cash flow increased to $28.8 million from $20 million in the previous quarter, driven by higher operating cash flows and reduced working capital outflows [8] Future Guidance - FormFactor anticipates first-quarter 2025 revenues of $170 million (+/- $5 million), which is below the Zacks Consensus Estimate of $192.72 million, indicating a cautious outlook due to weaker demand in high-volume markets [9] - The company expects a non-GAAP gross margin of 38% (+/- 1.5%) and earnings of 19 cents (+/- 4 cents) per share, compared to the Zacks Consensus Estimate of 33 cents per share [10]

Operator Thank you, and welcome, everyone to FormFactor's Fourth Quarter 2024 Earnings Conference Call. On today's call are Chief Executive Officer, Mike Slessor; and Chief Financial Officer, Shai Shahar. Before we begin, Stan Finkelstein, the Company's VP of Investor Relations will remind you of some important information. Stan Finkelstein Thank you. Today the company will be discussing GAAP P&L results and some important non-GAAP results intended to supplement your understanding of the company's financial ...

FormFactor (FORM) came out with quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.29 per share. This compares to earnings of $0.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -6.90%. A quarter ago, it was expected that this integrated circuits diagnostic company would post earnings of $0.31 per share when it actually produced earnings of $0.35, delivering a surprise of 12.90%.Over the last f ...

Financial Data and Key Metrics Changes - In Q4, revenues were $189.5 million, a decrease of 9% from the record revenues in Q3 and an increase of 12.7% year-over-year from Q4 2023 [16] - Non-GAAP gross margin for Q4 was 40.2%, down 0.8 percentage points from the midpoint of the outlook range [16] - Non-GAAP EPS for Q4 was $0.27, down from $0.35 in Q3 [24] - For fiscal 2024, total revenues were $764 million, up 15.2% from $663 million in fiscal 2023 [16] Business Line Data and Key Metrics Changes - Probe card segment revenues in Q4 were $150.3 million, a decrease of 12.7% from Q3, driven by lower Foundry and Logic and Flash revenues, partially offset by record DRAM revenue [17] - DRAM revenues reached a record $63.3 million in Q4, accounting for 33.4% of total quarterly revenues [18] - Foundry and Logic revenues were $83 million in Q4, a decrease of 22.5% from Q3, representing 44% of total revenues [18] Market Data and Key Metrics Changes - The semiconductor industry is experiencing contrasting dynamics, with strong growth in generative AI and high bandwidth memory (HBM) while facing weak demand in client PCs and mobile handsets [5][6] - HBM revenues for fiscal 2024 totaled $126 million, nearly a $100 million increase from fiscal 2023 [19] Company Strategy and Development Direction - The company announced the acquisition of FICT Limited to enhance its capabilities in advanced packaging and strengthen its supply chain [7][8] - Partnerships with Advantest Corporation aim to accelerate innovation in wafer-level testing for high-performance computing applications [8] Management's Comments on Operating Environment and Future Outlook - Management expects a sequential reduction in demand for non-HBM DRAM probe cards due to export controls affecting shipments to China [10] - The company anticipates an overall increase in demand for its products as it moves through 2025, driven by HBM and new customer qualifications [11][55] Other Important Information - The company generated free cash flow of $28.8 million in Q4, an increase from $20 million in Q3 [25] - The company repurchased shares worth $16.1 million during Q4, with $20.5 million remaining under the buyback program [26] Q&A Session Summary Question: Can you unpack the foundry logic DRAM between non-HBM and HBM? - The largest component of the non-HBM DRAM reduction in Q1 is associated with advanced DRAM probe cards shipping into China, which is expected to be zero due to export controls [33][34] Question: What is the outlook for non-HBM DRAM? - Non-HBM DRAM continues to operate at cyclical lows around $20 million per quarter, with limited activity expected [38] Question: Why is volume impacting the business in the near term? - Volume is impacted due to the need for new design releases to ramp in volume, which is currently limited by weak demand in markets like PCs and mobile [42][45] Question: What is the impact of the large U.S. customer not appearing on the 10% list? - There is broad-based weakness across foundry and logic, particularly in the microprocessor business, which did not contribute significantly to revenue [48] Question: What is the outlook for HBM and foundry logic business? - HBM and the transition to HBM4 are expected to drive growth, with a reasonable assumption of returning to $100 million levels in foundry and logic [55] Question: Can you elaborate on the hyperscalers' engagement? - The company is engaging with hyperscalers developing custom ASICs for AI applications, which is a new growth area [65] Question: What are the growth drivers in the systems business? - Growth in the systems segment is expected from the transition of silicon photonics and co-package optics to pilot production, alongside investments in quantum computing [76] Question: What is the margin outlook for HBM versus traditional DRAM? - HBM revenue has higher margins compared to traditional DRAM, but specific margin breakdowns were not provided [78]

Revenue and Growth - Fiscal 2024 revenue reached $764 million, a 15.2% increase from $663 million in fiscal 2023, driven by growth in HBM revenue[2] - High Bandwidth Memory (HBM) revenue grew fourfold in fiscal 2024, driven by the adoption of Generative AI[6] - Fourth quarter revenue was $189.5 million, down 8.9% from $207.9 million in the previous quarter, but up 12.7% from $168.2 million in Q4 2023[2] - For Q1 2025, FormFactor projects revenue of $170 million +/- $5 million[11] Net Income and Earnings - Net income for Q4 2024 was $9.7 million, or $0.12 per fully-diluted share, compared to $18.7 million, or $0.24 per share in Q3 2024, and $75.8 million, or $0.97 per share in Q4 2023[7] - Non-GAAP net income for Q4 2024 was $21.3 million, or $0.27 per fully-diluted share, compared to $27.2 million, or $0.35 per share in Q3 2024, and $15.7 million, or $0.20 per share in Q4 2023[8] - Net income for the twelve months ended December 28, 2024, was $69.6 million, compared to $82.4 million in the previous year, reflecting a decrease of 15.5%[19] - Non-GAAP net income for the three months ended December 28, 2024, was $21.3 million, compared to $27.2 million in the previous quarter, a decrease of 21.6%[23] Gross Margin and Profitability - Gross margin for Q4 2024 was 38.8%, down from 40.7% in Q3 2024 and 40.4% in Q4 2023; fiscal 2024 gross margin was 40.3%, up from 39.0% in fiscal 2023[7] - Gross profit for the twelve months ended December 28, 2024, increased to $307.9 million, up 19.0% from $258.6 million in the previous year[19] - The company reported a GAAP gross margin of 38.8% for the three months ended December 28, 2024, down from 40.7% in the previous quarter[21] Cash Flow and Financial Health - Free cash flow for fiscal 2024 was $82.8 million, compared to $11.4 million for fiscal 2023[10] - Cash provided by operating activities for the twelve months ended December 28, 2024, was $117.5 million, significantly higher than $64.6 million in the previous year[25] - Net cash provided by operating activities for the three months ended December 28, 2024, was $35,913 thousand, an increase from $26,731 thousand in the previous quarter[27] - Free cash flow for the twelve months ended December 28, 2024, was $82,806 thousand, significantly higher than $11,404 thousand in the previous year[27] Expenses and Investments - Total operating expenses for the three months ended December 28, 2024, were $65.7 million, a slight decrease from $66.9 million in the previous quarter[19] - Research and development expenses for the twelve months ended December 28, 2024, were $121.9 million, an increase from $115.8 million in the previous year[19] - Capital expenditures for the twelve months ended December 28, 2024, were $38,436 thousand, down from $56,027 thousand in the previous year, reflecting a reduction in investment spending[27] Balance Sheet and Assets - Total current assets as of December 28, 2024, amounted to $605,128 thousand, compared to $573,780 thousand a year earlier, reflecting a growth of approximately 5.4%[29] - Cash and cash equivalents increased to $190,728 thousand from $177,812 thousand year-over-year, representing a growth of about 7.3%[29] - Total liabilities decreased slightly to $198,447 thousand from $197,990 thousand year-over-year, indicating a stable financial position[29] - Stockholders' equity as of December 28, 2024, was $947,768 thousand, up from $908,804 thousand a year earlier, showing an increase of approximately 4.3%[29] - Accounts receivable decreased to $104,294 thousand from $116,866 thousand in the previous quarter, indicating improved collection efficiency[29] Strategic Moves - FormFactor announced the acquisition of a 20% minority interest in FICT Limited for approximately $60 million, expected to close within the current quarter[4] - The company anticipates slow demand in high-unit-volume markets like client PCs and mobile handsets in Q1 2025, but expects overall product demand to increase throughout 2025[11] Management Insights - The company reported a non-GAAP net income, which is a key indicator for management's planning and forecasting, although specific figures were not disclosed in the provided content[30] - Management emphasizes the importance of free cash flow as a measure of liquidity, which is preferred by many investors for assessing the company's financial health[30]

FY24 revenue of $764 million, up 15.2% from $663 million in FY23, driven by growth in HBM revenue;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 $189.5 million, a decrease of 8.9% compared to $207.9 millio ...

The global semiconductor industry is experiencing massive growth fueled by the demand for chips across high-performance computing, artificial intelligence, automotive and electric vehicle market, consumer electronics, networking, the Internet of Things, cloud computing and data centers.In the Jan. 7, 2025 report, the Semiconductor Industry Association reported that global semiconductor sales touched $57.8 billion in November 2024 with a year-over-year increase of 20.7%. The semiconductor chip sales increase ...

LIVERMORE, Calif., Jan. 15, 2025 (GLOBE NEWSWIRE) -- FormFactor, Inc. (Nasdaq: FORM) will report financial results for its 2024 fiscal fourth quarter on Wednesday, February 5th, 2025, at 1:25 p.m. Pacific Time. 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. To Listen via Telephone: Preregistration is required. Please preregister by clicking here. Upon registering, you will be emailed a dial-in number ...

FormFactor’s (FORM) shares have lost 26.1% in the trailing six months, underperforming the broader Zacks Computer and Technology sector’s return of 3.7% and the Zacks Electronics- Semiconductors industry’s appreciation of 15.7%.FORM shares have lagged industry peers like Marvell Technology (MRVL) , which have surged 63.8% over the same time frame.FormFactor's share price decline can be attributed to expected declines in demand for foundry and logic probe cards, which contributed to a sequential revenue decl ...

LIVERMORE, Calif., Jan. 07, 2025 (GLOBE NEWSWIRE) -- FormFactor, Inc. (NASDAQ:FORM), a leading supplier of electrical test and measurement solutions for the semiconductor industry, announced today that it has entered into technology partnership and share purchase agreements with Advantest Corporation (TSE: 6857). The expanded partnership and purchase of FormFactor shares by Advantest build upon a multi-year collaboration between the companies, including FormFactor's 2020 purchase of Advantest's probe-card a ...