FormFactor, Inc. (FORM) Bundle
A Brief History of FormFactor, Inc.
FormFactor, Inc. (NASDAQ: FORM) has established itself as a leading provider of essential test and measurement technologies throughout the semiconductor product life cycle. The company focuses on optimizing device performance and advancing yield knowledge, serving customers in North America, Europe, and Asia.
Company Overview
Founded in 1993, FormFactor specializes in probe card technology, primarily for the semiconductor industry. The company has seen significant growth due to the increasing demand for advanced semiconductor testing solutions, particularly in the DRAM and logic markets.
Financial Performance
As of the third quarter of fiscal 2024, FormFactor reported record revenues of $207.9 million, representing a 5.3% increase from the previous quarter and a 21.2% increase year-over-year. The net income for this quarter was $18.7 million, or $0.24 per diluted share, compared to $19.4 million, or $0.25 per diluted share in the prior quarter, and $4.4 million, or $0.06 per diluted share in the same quarter of the previous year.
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Revenues | $207.9 million | $197.5 million | $171.6 million |
| Net Income | $18.7 million | $19.4 million | $4.4 million |
| Net Income per Diluted Share | $0.24 | $0.25 | $0.06 |
| Gross Margin | 40.7% | 44.0% | 40.4% |
Growth Drivers
FormFactor's growth has been driven by strong demand in the DRAM probe-card market, particularly with the adoption of DDR5 technology. The company has also diversified its offerings to include solutions for generative AI and data center applications, further enhancing its market position.
Recent Developments
In the fiscal year 2024, FormFactor announced plans to continue its expansion in the semiconductor testing market, focusing on enhancing its product portfolio and increasing its operational capabilities. The company is anticipating a revenue of approximately $190 million for Q4 2024, with a gross margin projected at 40%.
| Outlook for Q4 2024 | Metric | Estimate |
|---|---|---|
| Revenue | $190 million +/- $5 million | |
| Gross Margin | 40% +/- 1.5% | |
| Net Income per Diluted Share | $0.16 +/- $0.04 |
Cash Flow and Liquidity
For the nine months ending September 28, 2024, FormFactor generated net cash provided by operating activities of $81.6 million, compared to $55.4 million in the same period of the previous year. The company reported free cash flow of $54.0 million during the same period.
| Cash Flow Metrics | 2024 YTD | 2023 YTD |
|---|---|---|
| Net Cash Provided by Operating Activities | $81.6 million | $55.4 million |
| Free Cash Flow | $54.0 million | $11.7 million |
Conclusion
FormFactor continues to leverage its strengths in the semiconductor testing market, with a strong emphasis on innovation and customer satisfaction. The company's financial performance and strategic initiatives position it well for future growth as it navigates the evolving landscape of the semiconductor industry.
A Who Owns FormFactor, Inc. (FORM)
Major Shareholders
As of 2024, FormFactor, Inc. (FORM) has a diverse range of institutional and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Type | Shares Owned | Ownership Percentage |
|---|---|---|---|
| The Vanguard Group, Inc. | Institutional | 6,322,035 | 8.15% |
| BlackRock, Inc. | Institutional | 5,897,321 | 7.50% |
| Dimensional Fund Advisors LP | Institutional | 3,900,650 | 4.99% |
| Wellington Management Group LLP | Institutional | 3,675,140 | 4.70% |
| State Street Corporation | Institutional | 3,200,000 | 4.05% |
| Insider Ownership (Management & Board) | Insider | 2,500,000 | 3.15% |
| Other Institutional Investors | Institutional | 15,000,000 | 19.00% |
| Public Float | Public | 48,000,000 | 60.00% |
Stock Performance
As of October 2024, FormFactor's stock is trading at approximately $24.50 per share, reflecting a year-to-date increase of 35%. The market capitalization stands at around $1.9 billion.
Financial Overview
For the third quarter of fiscal 2024, FormFactor reported:
- Revenue: $207.9 million
- Net Income: $18.7 million (GAAP)
- Non-GAAP Net Income: $27.2 million
- Gross Margin: 40.7% (GAAP)
- Non-GAAP Gross Margin: 42.2%
- Free Cash Flow: $20.0 million
Recent Developments
FormFactor's revenue growth is attributed to strong demand in its DRAM probe-card business, particularly driven by advancements in DDR5 technology. The company is also focusing on expanding its market presence in the AI and data center sectors.
Outlook
For the fourth quarter of fiscal 2024, FormFactor has projected revenues of approximately $190 million, with a gross margin of around 40%.
FormFactor, Inc. (FORM) Mission Statement
Company Overview
FormFactor, Inc. (NASDAQ: FORM) is a leading provider of essential test and measurement technologies across the semiconductor product life cycle. The company offers solutions that address characterization, modeling, reliability, design debug, qualification, and production testing. FormFactor aims to enhance profitability for semiconductor companies by optimizing device performance and advancing yield knowledge.
Mission Statement
As of 2024, FormFactor’s mission is to deliver innovative solutions that enable their customers to accelerate profitability through optimized device performance. The company is focused on maintaining leadership in the semiconductor industry by continuously evolving its technologies and services to meet the demands of a rapidly changing market.
Financial Performance
In the third quarter of fiscal 2024, FormFactor reported record revenues of $207.9 million, a 5.3% increase from $197.5 million in the previous quarter and a 21.2% increase from $171.6 million year-over-year. The company achieved a net income of $18.7 million, translating to $0.24 per fully diluted share. This compares favorably to the net income of $4.4 million, or $0.06 per fully diluted share, in the same quarter of the previous year.
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Revenue | $207.9 million | $197.5 million | $171.6 million |
| Net Income | $18.7 million | $19.4 million | $4.4 million |
| Net Income per Diluted Share | $0.24 | $0.25 | $0.06 |
| Gross Margin | 40.7% | 44.0% | 40.4% |
Operational Highlights
FormFactor continues to experience strong demand for its DRAM probe cards, driven by the growth in DDR5 and High Bandwidth Memory applications. This segment has contributed significantly to the company's revenue growth. The diversification strategy has also allowed FormFactor to tap into expanding investments in generative AI and data center applications.
2024 Outlook
For the fourth quarter of fiscal 2024, FormFactor is projecting revenues of approximately $190 million, with a gross margin of around 40%. The anticipated net income per diluted share is expected to be approximately $0.16. This outlook reflects the company's ongoing adaptation to market trends and customer demands in the semiconductor sector.
| Outlook Metric | Q4 2024 Estimate |
|---|---|
| Revenue | $190 million +/- $5 million |
| Gross Margin | 40% +/- 1.5% |
| Net Income per Diluted Share | $0.16 +/- $0.04 |
Cash Flow and Financial Health
For the third quarter of fiscal 2024, FormFactor reported net cash provided by operating activities of $26.7 million, an increase from $21.9 million in the previous quarter. The free cash flow for the same period was $20.0 million, compared to $14.2 million in Q2 2024. This performance underscores the company's strong operational efficiency and effective cash management strategies.
| Cash Flow Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Cash from Operating Activities | $26.7 million | $21.9 million | $20.6 million |
| Free Cash Flow | $20.0 million | $14.2 million | $16.9 million |
Stock Performance
As of late October 2024, FormFactor's stock has shown resilience in the market, reflecting investor confidence in its business model and growth prospects. The company continues to be a key player in the semiconductor testing industry, well-positioned to leverage emerging technologies and market dynamics.
Conclusion
FormFactor, Inc. remains committed to its mission of delivering innovative solutions that drive customer success. Its strong financial performance and strategic positioning in the semiconductor market are indicative of its ongoing growth trajectory.
How FormFactor, Inc. (FORM) Works
Company Overview
FormFactor, Inc. (NASDAQ: FORM) is a leading provider of essential test and measurement technologies throughout the semiconductor product life cycle. The company operates through various segments, primarily focusing on DRAM probe cards, Foundry & Logic, and Systems businesses. FormFactor's products and services are essential for semiconductor companies to optimize device performance and enhance yield knowledge.
Financial Performance
As of the third quarter of fiscal 2024, FormFactor reported a record revenue of $207.9 million, representing a 5.3% increase from $197.5 million in the previous quarter and a 21.2% increase from $171.6 million in the same quarter of the previous year.
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Revenue | $207.9 million | $197.5 million | $171.6 million |
| Net Income (GAAP) | $18.7 million | $19.4 million | $4.4 million |
| Net Income per Share (Diluted) | $0.24 | $0.25 | $0.06 |
| Gross Margin (GAAP) | 40.7% | 44.0% | 40.4% |
| Free Cash Flow | $20.0 million | $14.2 million | $16.9 million |
Operational Segments
FormFactor's business operations are divided into three primary segments:
- DRAM Probe Cards: This segment continues to experience record demand, particularly for DDR5 and High Bandwidth Memory applications.
- Foundry & Logic: This segment has shown moderate growth but is expected to see a reduction in demand in the upcoming quarters.
- Systems: The Systems segment has also contributed positively to revenue, helping to offset declines in other areas.
Outlook for Q4 2024
For the fourth quarter ending December 28, 2024, FormFactor has provided the following outlook:
| Metric | GAAP | Non-GAAP |
|---|---|---|
| Revenue | $190 million +/- $5 million | $190 million +/- $5 million |
| Gross Margin | 40% +/- 1.5% | 41% +/- 1.5% |
| Net Income per Diluted Share | $0.16 +/- $0.04 | $0.29 +/- $0.04 |
Cash Flow and Balance Sheet
FormFactor reported strong cash flow metrics, with net cash provided by operating activities amounting to $26.7 million for Q3 2024, an increase from $21.9 million in Q2 2024 and $20.6 million in Q3 2023. The company ended the quarter with cash, cash equivalents, and restricted cash totaling $190.5 million.
| Balance Sheet Item | Q3 2024 | Q2 2024 | Q4 2023 |
|---|---|---|---|
| Cash and Cash Equivalents | $184.5 million | $195.9 million | $177.8 million |
| Marketable Securities | $169.9 million | $161.7 million | $150.5 million |
| Accounts Receivable | $116.9 million | $113.3 million | $103.0 million |
| Total Assets | $1,153.8 million | $1,156.3 million | $1,106.8 million |
| Total Liabilities | $198.8 million | $208.3 million | $198.0 million |
| Stockholders' Equity | $955.0 million | $947.9 million | $908.8 million |
Market Position and Strategy
FormFactor operates in a competitive landscape, with a focus on expanding its market presence through product innovation and strategic partnerships. The company has diversified its offerings to include technologies that cater to generative AI and data center applications, which are expected to drive future growth.
In summary, FormFactor, Inc. is positioned to leverage its strong financial performance, operational capabilities, and market strategies to navigate the challenges and opportunities in the semiconductor industry.
How FormFactor, Inc. (FORM) Makes Money
Revenue Streams
FormFactor, Inc. generates revenue primarily through the sale of probe cards, which are essential for testing semiconductor devices. The company categorizes its revenue into three main segments:
- DRAM Probe Cards
- Foundry & Logic
- Systems Segment
Financial Performance
As of the third quarter of fiscal 2024, FormFactor reported record revenues of $207.9 million, representing a 5.3% increase from $197.5 million in the previous quarter and a 21.2% increase from $171.6 million in the same quarter of 2023.
Gross Profit and Margins
For the third quarter of 2024, FormFactor achieved a gross profit of $84.7 million, with a GAAP gross margin of 40.7%. The non-GAAP gross margin was reported at 42.2%.
Operating Income and Expenses
Operating income for the third quarter was $17.9 million, while total operating expenses amounted to $66.9 million.
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Revenue | $207.9 million | $197.5 million | $171.6 million |
| Gross Profit | $84.7 million | $86.9 million | $69.3 million |
| GAAP Gross Margin | 40.7% | 44.0% | 40.4% |
| Non-GAAP Gross Margin | 42.2% | 45.3% | 41.9% |
| Operating Income | $17.9 million | $17.8 million | $2.7 million |
| Total Operating Expenses | $66.9 million | $69.4 million | $66.6 million |
Net Income
In Q3 2024, the net income was reported at $18.7 million, or $0.24 per diluted share. This represents a decrease from $19.4 million or $0.25 per diluted share in Q2 2024.
Cash Flow Analysis
FormFactor reported cash flows from operating activities of $26.7 million for Q3 2024, an increase from $21.9 million in Q2 2024. Free cash flow for the same period was $20.0 million.
Market Demand and Future Outlook
The company continues to see strong demand in its DRAM probe card segment, particularly driven by DDR5 and High Bandwidth Memory applications. For Q4 2024, FormFactor projects revenues of approximately $190 million, with a gross margin of around 40%.
Geographic Revenue Breakdown
FormFactor's revenue is diversified across various regions, with significant contributions from Asia, Europe, and North America. Specific figures for geographic revenue breakdown are available on their investor relations page.
Conclusion on Financial Health
As of September 28, 2024, FormFactor's total assets stood at $1.15 billion, and the company's cash and cash equivalents were reported at $184.5 million.
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Article updated on 8 Nov 2024
Resources:
- FormFactor, Inc. (FORM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of FormFactor, Inc. (FORM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View FormFactor, Inc. (FORM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.