Slide 1: FormFactor Investor Presentation
FormFactor Investor Presentation January 2016
Slide 2: Disclosure
Disclosure FORWARD-LOOKING STATEMENTS: This presentation contains forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements other than s
Slide 3: FormFactor at a Glance
FormFactor at a Glance ▪ Largest supplier of probe cards to the semiconductor industry ▫ Leading >$1B market growing at >5% CAGR over next 5 years ▫ Revenue of $268.5M in 2014, grew 16% over 2013 ▫ Grew share of advanced probe card market to >25% in 2014 −Continued momentum through 2015 along simila
Slide 4: FormFactor Owns a Strategic Position in the Semiconductor Manufacturing Process
FormFactor Owns a Strategic Position 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 ©2015 FormFactor Inc.
Slide 5: FormFactor - Gaining Share in a Growing Market
FormFactor - Gaining Share in a Growing Market PAGE: 5 ©2015 FormFactor Inc. Source: VLSIresearch, and FormFactor internal
Slide 6: FormFactor's MEMS Technology Leadership
FormFactor’s MEMS Technology Leadership Enabling Customers’ Roadmaps With A Key Competitive Advantage SoC DRAM Flash In 2014, probe cards manufactured with MEMS technology were both the largest and fastest growing part of the market Source: VLSIresearch PAGE: 6 ©2015 FormFactor Inc.
Slide 7: Update on FormFactor's Recent Performance
Update on FormFactor’s Recent Performance Structural profitability today with future growth components Initiative Result $22.5M of non-GAAP net income and $36.5M of cash in last Sustained profitability and 12 months (excluding $7.0M stock buyback) cash generation Profitable & cash-flow positive
Slide 8: Financial Results and Guidance
Financial Results and Guidance 2014 Actual Q3 2015 Actual Q4 2015 Guidance* Revenue ($M) $268.5 $65.9 $68M-$73M Gross Margin ($M**) $95.8 $22.0 Gross Margin (%) 35.7% 33.4% 34%-37% Operating Expenses ($M**) $79.0 $18.5 Net Income ($M**) $18.2 $3.3 Diluted EPS** $0.32 $0.06 $0.07 to $0.12 Cash Flow**
Slide 9: Near-Term Model at $300M Annual Revenue
Near-Term Model at $300M Annual Revenue Financial Metric (non-GAAP) Result Revenue ~ $300M Gross Margin 36% - 38% Operating Expenses 27% - 28% Operating and Net Income 9% - 10% EBITDA 13% - 14% Incremental revenue above ~$250M* breakeven annual revenue level “falls through” to Operating Income at ~6
Slide 10: Near-Term Components of Revenue & Earnings Growth
Near-Term Components of Revenue & Earnings Growth ▪ SoC ($516M TAM in 2014, 25% FormFactor share): ▫ Increasing devices with demanding technical requirements (e.g., copper pillars) at ≤28nm ▫ Strong leadership position in advanced SoC probe cards ▪ DRAM ($293M TAM in 2014, 38% FormFactor share): ▫ C
Slide 11: Long-Term Revenue and Earnings Growth Path
Long-Term Revenue and Earnings Growth Path Strategic Element Result Revenue and EPS growth from Continued share gains along “line-of- increasing share to mid-30’s% in sight” components in SoC, DRAM, Flash large and growing advanced probe card market Leverage and re-use of key roadmap EPS growth from
Slide 12: Summary
Summary ▪ FormFactor owns a structurally profitable market leadership position in production probe cards ▪ Advanced probe cards offer an attractive growth opportunity ▫ >$1B market growing at >5% CAGR over next 5 years ▫ Growth opportunities targeted to produce 8-10% market share gain ▪ Industry-lea