Business
FormFactor, Inc. Reports 2023 Second Quarter Results
Strong Gross Margin and Good Expense Control Drive Higher Than Expected Profitability; Experiencing Stable Demand in Q3 LIVERMORE, Calif., Aug. 02, 2023
About this update from Formfactor, Inc.
[{"type":"text","content":"Strong Gross Margin and Good Expense Control Drive Higher Than Expected Profitability; Experiencing Stable Demand in Q3\nLIVERMORE, Calif., Aug. 02, 2023 (GLOBE NEWSWIRE) -- FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the second quarter of fiscal 2023 ended July 1, 2023. Quarterly revenues were $155.9 million, a decrease of 6.9% compared to $167.4 million in the first quarter of fiscal 2023, and a decrease of 23.5% from $203.9 million in the second quarter of fiscal 2022. Higher than expected gross margin and good operating expense control produced non-GAAP EPS at the top end of the range despite revenue below the outlook range due to shipment pushouts.Continued strong Systems segment results, with revenue at near-record levels.Adoption of generative Artificial Intelligence technologies driving strong demand for DDR5 and High Bandwidth Memory probe cards. “As we navigate the current cyclical downturn, we continue to benefit from FormFactor’s diversification strategy and broad Lab-to-Fab product portfolio, which differentiate us from our direct competitors,” said Mike Slessor, CEO of FormFactor, Inc. “We are carefully balancing short-term results and long-term investments, with disciplined cost control that maximizes quarterly profitability and protects our strong balance sheet. These investments are designed to produce market-share gains and above-industry revenue and profit growth when we emerge from the current cyclical trough.” Second Quarter Highlights On a GAAP basis, net income for the second quarter of fiscal 2023 was $0.8 million, or $0.01 per fully-diluted share, compared to net income for the first quarter of fiscal 2023 of $1.3 million, or $0.02 per fully-diluted share, and net income for the second quarter of fiscal 2022 of $30.2 million, or $0.38 per fully-diluted share. Gross margin for the second quarter of fiscal 2023 was 38.7%, compared with 36.5% in the first quarter of fiscal 2023, and 46.3% in the second quarter of fiscal 2022. On a non-GAAP basis, net income for the second quarter of fiscal 2023 was $11.2 million, or $0.14 per fully-diluted share, compared to net income for the first quarter of fiscal 2023 of $12.5 million, or $0.16 per fully-diluted share, and net income for the second quarter of fiscal 2022 of $36.8 million, or $0.46 per fully-diluted share. On a non-GAAP basi...