FormIssue, Inc. Reports 2022 Third Quarter Results

LIVERMORE, Calif., Oct. 26, 2022 (GLOBE NEWSWIRE) — FormIssue, Inc. (Nasdaq: FORM) right this moment introduced its monetary outcomes for the third quarter of fiscal 2022 ended September 24, 2022. Quarterly revenues have been $180.9 million, a lower of 11.3% in comparison with $203.9 million within the second quarter of fiscal 2022, and a lower of 4.8% from $190.0 million within the third quarter of fiscal 2021.

• As anticipated, third quarter income, gross margin and profitability have been down sequentially, mainly because of the anticipated discount in Foundry & Logic probe card demand
• To higher align FormIssue’s value construction with these lowered demand ranges, which are actually anticipated to increase nicely into subsequent 12 months, the Company has applied an operational restructuring in the course of the fourth quarter of 2022
• Systems Segment’s report third quarter income anticipated to proceed within the fourth quarter, highlighting advantages of lab-to-fab diversification technique and constructive impression of latest tuck-in acquisitions

“We expect the current cyclical downturn in demand, which impacted FormFactor’s third quarter revenue and profitability, to extend well into next year,” mentioned Mike Slessor, CEO of FormIssue, Inc. “To preserve profitability at the revenue run rates we believe are likely to prevail until the downturn ends, we have announced decisive steps to better align FormFactor’s cost structure with these temporarily reduced demand levels.”

Third Quarter Highlights

On a GAAP foundation, web revenue for the third quarter of fiscal 2022 was $4.4 million, or $0.06 per fully-diluted share, in comparison with web revenue for the second quarter of fiscal 2022 of $30.2 million, or $0.38 per fully-diluted share, and web revenue for the third quarter of fiscal 2021 of $20.5 million, or $0.26 per fully-diluted share. Gross margin for the third quarter of fiscal 2022 was 34.4%, in contrast with 46.3% within the second quarter of fiscal 2022, and 42.2% within the third quarter of fiscal 2021.

On a non-GAAP foundation, web revenue for the third quarter of fiscal 2022 was $18.3 million, or $0.24 per fully-diluted share, in comparison with web revenue for the second quarter of fiscal 2022 of $36.8 million, or $0.46 per fully-diluted share, and web revenue for the third quarter of fiscal 2021 of $31.6 million, or $0.40 per fully-diluted share. On a non-GAAP foundation, gross margin for the third quarter of fiscal 2022 was 39.0%, in contrast with 47.4% within the second quarter of fiscal 2022, and 46.0% within the third quarter of fiscal 2021.

A reconciliation of GAAP to non-GAAP measures is offered within the schedules included under.

GAAP web money offered by working actions for the third quarter of fiscal 2022 was $24.2 million, in comparison with $42.6 million for the second quarter of fiscal 2022, and $34.3 million for the third quarter of fiscal 2021. Free money circulate for the third quarter of fiscal 2022 was $15.5 million, in comparison with free money circulate for the second quarter of fiscal 2022 of $28.3 million, and free money circulate for the third quarter of 2021 of $14.4 million. A reconciliation of web money offered by working actions to non-GAAP free money circulate is offered within the schedules included under.

Outlook

Dr. Slessor added, “Our sequentially weaker outlook is due to three primary factors; one, the new US-China trade restrictions announced on October 7th; two, weaker DRAM probe card demand; and three, further softness in Foundry & Logic probe card demand, with specific weakness in RF probe cards. These factors notwithstanding, we remain confident in the long-term growth prospects for the industry overall, driven by the fundamental trends of semiconductor content growth and innovations like advanced packaging.”

For the fourth quarter ending December 31, 2022, FormIssue is offering the next outlook*:

*This outlook assumes constant overseas foreign money charges.
**Reconciling gadgets are stock-based compensation, restructuring prices, and amortization of intangibles, stock, and stuck asset truthful worth changes as a consequence of acquisitions.

We posted our income breakdown by geographic area, by market phase and with clients with higher than 10% of complete income on the Investor Relations part of our web site at www.formfactor.com. We will conduct a convention name at 1:25 p.m. PDT, or 4:25 p.m. EDT, right this moment.

The public is invited to hearken to a reside webcast of FormIssue’s convention name on the Investor Relations part of our web page at www.formfactor.com. A phone replay of the convention name can be obtainable roughly two hours after the conclusion of the decision. The replay can be obtainable on the Investor Relations part of our web site, www.formfactor.com. 

Use of Non-GAAP Financial Information:

To complement our condensed consolidated monetary outcomes ready below usually accepted accounting ideas, or GAAP, we disclose sure non-GAAP measures of non-GAAP web revenue, non-GAAP web revenue per primary and diluted share, non-GAAP income, non-GAAP gross revenue, non-GAAP gross margin, non-GAAP working bills and non-GAAP working revenue, which might be adjusted from the closest GAAP monetary measure to exclude sure prices, bills, beneficial properties and losses. Reconciliations of the changes to GAAP outcomes for the three and 9 months ended September 24, 2022, and for outlook offered earlier than, in addition to for the comparable intervals of fiscal 2021, are offered under, and on the Investor Relations part of our web site at www.formfactor.com. Information relating to the methods by which administration makes use of non-GAAP monetary data to guage its business, administration’s causes for utilizing this non-GAAP monetary data, and limitations related to the usage of non-GAAP monetary data, is included below “About our Non-GAAP Financial Measures” following the tables under.

About FormIssue:

FormIssue, Inc. (Nasdaq: FORM), is a number one supplier of important take a look at and measurement applied sciences alongside the complete semiconductor product life cycle – from characterization, modeling, reliability, and design de-bug, to qualification and manufacturing take a look at. Semiconductor corporations depend on FormIssue’s services to speed up profitability by optimizing gadget efficiency and advancing yield information. The Company serves clients by means of its community of services in Asia, Europe, and North America. For extra data, go to the Company’s web site at www.formfactor.com. 

Forward-looking Statements:

This press launch incorporates forward-looking statements inside the which means of the “safe harbor” provisions of the federal securities legal guidelines, together with with respect to the Company’s future monetary and working outcomes, and the Company’s plans, methods and aims for future operations. These statements are primarily based on administration’s present expectations and beliefs as of the date of this launch, and are topic to a lot of dangers and uncertainties, a lot of that are past the Company’s management, that might trigger precise outcomes to vary materially from these described within the forward-looking statements. These forward-looking statements embrace, however aren’t restricted to, statements relating to future monetary and working outcomes, buyer demand, circumstances within the semiconductor trade, and development alternatives, and different statements relating to the Company’s business. Forward-looking statements could comprise phrases resembling “may,” “might,” “will,” “expect,” “plan,” “anticipate,” and “continue,” the adverse or plural of those phrases and related expressions, and embrace the assumptions that underlie such statements. The following components, amongst others, may trigger precise outcomes to vary materially from these described within the forward-looking statements: modifications in demand for the Company’s merchandise; customer-specific demand; market alternative; anticipated trade developments; the provision, advantages, and pace of buyer acceptance or implementation of recent merchandise and applied sciences; manufacturing, processing, and design capability, targets, growth, volumes, and progress; difficulties or delays in analysis and growth; trade seasonality; dangers to the Company’s realization of advantages from acquisitions, investments in capability and investments in new digital knowledge techniques and data expertise; reliance on clients or third events (together with suppliers); modifications in macro-economic environments; occasions affecting world and regional financial and market circumstances and stability resembling infectious illnesses and pandemics, navy conflicts, political volatility and related components, working individually or together; and different components, together with these set forth within the Company’s most present annual report on Form 10-Okay, quarterly experiences on Form 10-Q and different filings by the Company with the U.S. Securities and Exchange Commission. We proceed to function in an setting with substantial uncertainties arising from world, regional and nationwide well being crises such because the COVID-19 pandemic, together with with respect to their impression on our operations, capability, buyer demand, and provide chain, in addition to the macroeconomic setting. In addition, there are various obstacles to worldwide commerce, together with restrictive commerce and export rules, dynamic tariffs, commerce disputes between the U.S. and different international locations, such because the latest US-China restrictions, and nationwide safety developments or tensions, which will considerably prohibit or situation our gross sales to or in sure international locations, enhance the price of doing business internationally, and disrupt our provide chain. No assurances may be on condition that any of the occasions anticipated by the forward-looking statements inside this press launch will transpire or happen, or if any of them achieve this, what impression they may have on the outcomes of operations or monetary situation of the Company. Unless required by legislation, the Company is below no obligation (and expressly disclaims any such obligation) to replace or revise its forward-looking statements whether or not because of new data, future occasions, or in any other case.

Investor Contact:

Stan Finkelstein
Investor Relations
(925) 290-4321
[email protected] 

FORMFACTOR, INC. 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In hundreds, besides per share quantities)
(Unaudited)

FORMFACTOR, INC. 
NON-GAAP FINANCIAL MEASURE RECONCILIATIONS
(In hundreds, besides per share quantities)
(Unaudited)

FORMFACTOR, INC. 
NON-GAAP FINANCIAL MEASURE RECONCILIATIONS
(In hundreds, besides per share quantities)
(Unaudited)

FORMFACTOR, INC. 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In hundreds)
(Unaudited)

FORMFACTOR, INC. 
RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOW
(In hundreds)
(Unaudited)

FORMFACTOR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In hundreds)
(Unaudited) 

About our Non-GAAP Financial Measures:

We imagine that the presentation of non-GAAP web revenue, non-GAAP web revenue per primary and diluted share, non-GAAP income, non-GAAP gross revenue, non-GAAP gross margin, non-GAAP working bills, non-GAAP working revenue and free money circulate offers supplemental data that’s essential to understanding monetary and business developments and different components referring to our monetary situation and outcomes of operations. Non-GAAP web revenue, non-GAAP web revenue per primary and diluted share, non-GAAP income, non-GAAP gross revenue, non-GAAP gross margin, non-GAAP working bills, and non-GAAP working revenue are among the many main indicators utilized by administration as a foundation for planning and forecasting future intervals, and by administration and our board of administrators to find out whether or not our working efficiency has met sure targets and thresholds. Management makes use of non-GAAP web revenue, non-GAAP web revenue per primary and diluted share, non-GAAP income, non-GAAP gross revenue, non-GAAP gross margin, non-GAAP working bills, and non-GAAP working revenue when evaluating working efficiency as a result of it believes that the exclusion of the gadgets indicated herein, for which the quantities or timing could range considerably relying upon our actions and different components, facilitates comparability of our working efficiency from interval to interval. We use free money circulate to conduct and consider our business as a further method of viewing our liquidity that, when seen with our GAAP outcomes, offers a extra full understanding of things and developments affecting our money flows. Many buyers additionally desire to trace free money circulate, versus solely GAAP earnings. Free money circulate has limitations as a consequence of the truth that it doesn’t signify the residual money circulate obtainable for discretionary expenditures, and subsequently it is very important view free money circulate as a complement to our total consolidated statements of money flows. We have chosen to supply this non-GAAP data to buyers to allow them to analyze our working outcomes nearer to the best way that administration does, and use this data of their evaluation of our business and the valuation of our Company. We compute non-GAAP web revenue, non-GAAP web revenue per primary and diluted share, non-GAAP income, non-GAAP gross revenue, non-GAAP gross margin, non-GAAP working bills, and non-GAAP working revenue, by adjusting GAAP web revenue, GAAP web revenue per primary and diluted share, GAAP income, GAAP gross revenue, GAAP gross margin, GAAP working bills, and GAAP working revenue to take away the impression of sure gadgets and the tax impact, if relevant, of these changes. These non-GAAP measures aren’t in accordance with, or an alternative choice to, GAAP, and could also be materially completely different from different non-GAAP measures, together with equally titled non-GAAP measures utilized by different corporations. The presentation of this extra data shouldn’t be thought of in isolation from, as an alternative choice to, or superior to, web revenue, web revenue per primary and diluted share, income, gross revenue, gross margin, working bills, or working revenue in accordance with GAAP. Non-GAAP monetary measures have limitations in that they don’t replicate sure gadgets which will have a fabric impression upon our reported monetary outcomes. We could anticipate to proceed to incur bills of a nature much like the non-GAAP changes described above, and exclusion of this stuff from our non-GAAP web revenue, non-GAAP web revenue per primary and diluted share, non-GAAP income, non-GAAP gross revenue, non-GAAP gross margin, non-GAAP working bills, and non-GAAP working revenue shouldn’t be construed as an inference that these prices are uncommon, rare or non-recurring. For extra data on the non-GAAP changes, please see the desk captioned “Non-GAAP Financial Measure Reconciliations” and “Reconciliation of Cash Provided by Operating Activities to non-GAAP Free Cash Flow” included on this press launch.

Source: FormIssue, Inc.
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