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FormFactor Inc. Reports Operating Results (10-Q)

August 04, 2010 | About:

10qk

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FormFactor Inc. (FORM) filed Quarterly Report for the period ended 2010-06-26.

Formfactor Inc. has a market cap of $473.5 million; its shares were traded at around $9.47 with and P/S ratio of 3.5. FORM is in the portfolios of PRIMECAP Management, Chuck Royce of Royce& Associates, RS Investment Management.

Highlight of Business Operations:

We incurred a net loss of $33.9 million in the second quarter of fiscal 2010 as compared to net loss of $65.8 million for the second quarter of fiscal 2009. The net loss for the second quarter of fiscal 2010 includes $2.5 million of pre-tax restructuring charges and $0.6 million of severance costs related to the recent change in executive management, as well as the impairment of certain fixed assets of $1.0 million. The net loss for the second quarter of fiscal 2009 included a $44.7 million valuation allowance recorded against our deferred tax assets. We incurred a net loss of $72.0 million in the first half of fiscal 2010 as compared to net loss of $103.8 million for the first half of fiscal 2009. The net loss for the first half of fiscal 2010 is primarily due to low revenue and margins, $6.1 million of pre-tax restructuring charges, and the impairment of certain fixed assets of $1.0 million. The net loss for the first half of fiscal 2009 is primarily due to the low revenues and margins, the $44.7 million valuation allowance for our deferred tax assets, $7.9 million restructuring charges and the $4.9 million provision for bad debts due to the heightened risk of non-payment of certain accounts receivable.

Our cash, cash equivalents and marketable securities totaled approximately $397.8 million as of June 26, 2010, as compared to $449.2 million at December 26, 2009. We believe that we will be able to satisfy our working capital requirements for the next twelve months with the liquidity provided by our existing cash, cash equivalents and marketable securities. If we are unsuccessful in improving our operating efficiency, reducing our cash outlays or increasing our available cash through financing, our cash, cash equivalents and marketable securities could further decline in the third quarter of fiscal 2010 and in future fiscal quarters.

Revenues for the three and six months ended June 26, 2010 increased 84.8%, or $26.4 million, and 66.1%, or $38.7 million, compared to the revenues of the comparable periods of the prior year. The increases are primarily due to increased demand for our advanced wafer probe cards caused by an overall improvement in the semiconductor market, and in particular the memory segment.

Read the The complete Report

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