FormFactor, Inc. Reports 2020 Fourth Quarter Results

Sets Quarterly and Annual Records for Revenue and Profitability;
Expects Continued Robust Demand in Q1

LIVERMORE, Calif., Feb. 03, 2021 (GLOBE NEWSWIRE) -- FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the fourth quarter of fiscal 2020 ended December 26, 2020. Quarterly revenues were $197.0 million, an increase of 10.7% compared to $178.0 million in the third quarter of fiscal 2020, an increase of 10.3% from $178.6 million in the fourth quarter of fiscal 2019. For fiscal 2020, FormFactor posted revenues of $693.6 million, up 17.7% from $589.5 million in fiscal 2019.

  • Delivered Q4 revenue and non-GAAP EPS above outlook range
  • Continued to invest in capacity, with increased capital expenditures to meet sustained robust demand
  • Significant progress on integrating recent acquisitions

“FormFactor delivered strong results in the fourth quarter of 2020, setting all-time quarterly and annual company records for revenue, as well as non-GAAP operating profit and net profit,” said Mike Slessor, CEO of FormFactor, Inc. “I want to thank and congratulate the global FormFactor team, who demonstrated a combination of agility and tenacity to overcome a myriad of challenges and deliver these record results.”

Fourth Quarter Highlights

On a GAAP basis, net income for the fourth quarter of fiscal 2020 was $19.3 million, or $0.24 per fully-diluted share, compared to net income for the third quarter of fiscal 2020 of $22.9 million, or $0.29 per fully-diluted share, and net income for the fourth quarter of fiscal 2019 of $18.6 million, or $0.24 per fully-diluted share. Net income for fiscal 2020 was $78.5 million, or $0.99 per fully-diluted share, compared to net income for fiscal 2019 of $39.3 million, or $0.51, per fully-diluted share. Gross margin for the fourth quarter of 2020 was 39.4%, compared with 43.1% in the third quarter of 2020, and 41.6% in the fourth quarter of 2019. Gross margin for fiscal 2020 was 41.5%, compared to 40.3% for fiscal 2019.

On a non-GAAP basis, net income for the fourth quarter of fiscal 2020 was $35.3 million, or $0.44 per fully-diluted share, compared to net income for the third quarter of fiscal 2020 of $30.7 million, or $0.39 per fully-diluted share, and net income for the fourth quarter of fiscal 2019 of $32.0 million, or $0.41 per fully-diluted share. Net income for fiscal 2020 was $118.0 million, or $1.49 per fully-diluted share, compared to net income of $80.6 million, or $1.04 per fully-diluted share for fiscal 2019. On a non-GAAP basis, gross margin for the fourth quarter of 2020 was 43.4%, compared with 46.7% in the third quarter of 2020, and 45.7% in the fourth quarter of 2019. Non-GAAP gross margin for fiscal 2020 was 45.4%, compared to 44.5% for fiscal 2019.

A reconciliation of GAAP to non-GAAP measures is provided in the schedules included below.

Free cash flow for the fourth quarter of fiscal 2020 was $31.4 million, compared to free cash flow for the third quarter of fiscal 2020 of $37.2 million, and free cash flow for the fourth quarter of 2019 of $31.6 million. Free cash flow for fiscal 2020 and fiscal 2019 was $114.8 million and $101.8 million, respectively. A reconciliation of net cash provided by operating activities to free cash flow is provided in the schedules included below.

Outlook

Dr. Slessor added, “As we begin 2021, we are adding capacity to meet long term demand for our products, including a new facility in Livermore that is scheduled to begin revenue shipments in the second half of this year.”

For the first quarter ending March 27, 2021, FormFactor is providing the following outlook*:

   GAAP  Reconciling Items**  Non-GAAP
Revenue $176 million to $188 million  $176 million to $188 million
Gross Margin 40% to 43% $7 million 44% to 47%
Net income per diluted share $0.18 to $0.26 0.16 $0.34 to $0.42

*This outlook assumes consistent foreign currency rates.
**Reconciling items are stock-based compensation, restructuring charges, acquisition related expenses and amortization of intangibles, inventory and fixed asset fair value adjustments due to acquisition.

We posted our revenue breakdown by geographic region, by market segment and with customers with greater than 10% of total revenue on the Investor Relations section of our website at www.formfactor.com. We will conduct a conference call at 1:25 p.m. PDT, or 4:25 p.m. EDT, today.

The public is invited to listen to a live webcast of FormFactor’s conference call on the Investor Relations section of our 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 February 10, 2021 4:25 p.m. PDT, and can be accessed by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) and entering confirmation code 9675656. Additionally, 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 earnings per fully-diluted share, non-GAAP revenue, non-GAAP gross margin, non-GAAP operating expenses and non-GAAP operating income, 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 December 26, 2020 and for outlook provided before, as well as for the comparable periods of fiscal 2019, 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 IC life cycle - from metrology and inspection, 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.

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