Slide 1: FormFactor Investor Presentation
FormFactor Investor Presentation May 2014
Slide 2: Disclosure
Disclosure FORWARD-LOOKING STATEMENTS: This presentation contains forward-looking statements within the meaning of the federal securities laws, including statements regarding business momentum, demand for our products and future growth. These forward-looking statements are based on current informati
Slide 3: FormFactor at a Glance
FormFactor at a Glance ▪ Founded 1993, IPO 2003 (NASDAQ: FORM) ▪ Largest Probe Card supplier in the Semiconductor Industry ▫ 2013 Revenue - $231.5M ▫ Leading supplier of advanced probe cards ~ $890M market in 2013 ▪ Headquarters: Livermore, California ▫ ~940 employees Worldwide ▫ Sales, Service, Des
Slide 4: FormFactor's Place in the Semiconductor Manufacturing Process
FormFactor’s Place in the Semiconductor Manufacturing Process F R O N T E N D Litho Etch Deposition Metrology ATE Probe Card Wafer Test Prober Wafer Dice B A C K E N D Assembly Package ATE & Package Burn In Final Test PAGE: 4 ©2014 FormFactor Inc
Slide 5: Advanced Probe Card Segments
Advanced Probe Card Segments FFI Market Share ~ 25% DRAM DRAM $255M $321M 36% SOC SOC $441M $583M FLASH FLASH 12% $193 $249 26% Source: VLSI, FormFactor 2014 2013 = $890M 2018 = $1153M Market Leadership in Advanced SoC and Memory Segments PAGE: 5 ©2014 FormFactor Inc
Slide 6: FormFactor Recognized by VLSIresearch
FormFactor Recognized by VLSIresearch FormFactor Ranked Top Worldwide VLSIresearch Supplier of Semiconductor Probe Cards in 2013 FormFactor Rated #1 Worldwide in Customer Satisfaction for Suppliers of Sub-Systems PAGE: 6 ©2014 FormFactor, Inc. | Confidential – Proprietary
Slide 7: Customer Value Proposition
FormFactor’s Customer Value Proposition ▪ Technology to meet accelerating customer requirements ▫ MEMS technology leadership enables our customer’s wafer test roadmap ▪ Broadest probe card product portfolio in the semiconductor industry ▫ Wafer test solutions to meet a wide range of customer needs ▪
Slide 8: MEMS Technology
FormFactor’s MEMS Technology A competitive advantage DRAM SOC NAND FormFactor’s Industry Leading MEMS Factory Enabling Capability for SOC, DRAM & Flash Markets PAGE: 8 ©2014 FormFactor Inc
Slide 9: Wafer Test Market Today
Wafer Test Market Today ▪ Mobile computing, automotive, and industrial are driving demand for logic and memory probe cards ▫ Strong broad based demand today ▪ High performance application processors drive advanced wafer test and packaging ▫ Copper pillar packaging adoption at 28nm and below ▪ Mobile
Slide 10: Revenue Growth Drivers 2015-2016
FormFactor’s Revenue Growth Drivers 2015-2016 ▪ SOC - $25M - $30M/year incremental opportunity vs. 2013 ▫ Mobile application processors drive copper pillar packaging at 28nm & below ▫ FFI has >65% market share today ▪ NAND Flash - $15M - $20M/year incremental opportunity vs. 2013 ▫ Continued growth
Slide 11: Bottom Line Growth Drivers 2015-2016
FormFactor’s Bottom Line Growth Drivers 2015-2016 ▪ GM improvement ▫ Increased leverage of existing capacity and technologies/processes ▫ Reduced material costs on incremental volume ▫ New NAND Flash product’s lower cost architecture ▪ Approximately 60% fall through of GM on incremental revenue abov
Slide 12: Progress of our Turn-Around
Progress of our Turn-Around $ 300 M Revenues Op Inc. (Non-GAAP) $ 250 M Cash from Op. $ 200 M $ 150 M 232 $ 100 M 189 178 169 $ 50 M $0M -6 2010 2011 2012 2013 -29 -26 -23 -$ 50 M -42 -73 -55 -$ 100 M -107 -$ 150 M PAGE: 12 ©2014 FormFactor Inc
Slide 13: Summary
Summary ▪ The advanced probe card market provides significant growth opportunities to FormFactor over the next 3 years. ▪ FORM’s industry leading MEMS capability is a competitive advantage in all segments of the advanced probe card market. ▪ Our improving market position and lower cost structure hav