Latest news with #MikeSlessor
Globe and Mail
5 days ago
- Business
- Globe and Mail
FormFactor, Inc. Announces Purchase of New Manufacturing Facility
LIVERMORE, Calif., June 02, 2025 (GLOBE NEWSWIRE) -- FormFactor, Inc. (NASDAQ: FORM), a leading provider of test and measurement technologies for the semiconductor industry, today announced that it has purchased a manufacturing site in Farmers Branch, Texas. The site, which comprises four structures and includes 50,000 square feet of clean room space, was purchased for $55 million dollars. Commenting on the purchase, Mike Slessor, CEO of FormFactor, Inc., said, 'FormFactor's purchase of the Farmers Branch, Texas manufacturing facility enables us to acquire a scarce, fit-for-purpose asset that aligns with our strategic roadmap and provides significant operational flexibility. Located in a lower-operating cost region, it is one of a handful of existing facilities in the U.S. that has a clean room and comes equipped with the infrastructure to meet our future manufacturing needs.' Slessor added, 'As we've said for some time, we are seeing increased test intensity driven by the adoption of advanced packaging technologies, which is in turn driving increased demand for FormFactor's probe-card products. This is evident in the recent rapid growth of our High Bandwidth Memory, or HBM, probe-card revenue, and we expect this advanced-packaging driven growth to continue.'. 'The purchase of this facility, for a competitive price, creates optionality for us in cost-effectively meeting this anticipated increasing long-term demand, and it will be an important step forward as we refine our operational strategy.' About FormFactor: FormFactor, Inc. (NASDAQ: FORM), is a leading provider of essential test and measurement technologies along the full semiconductor product life cycle - from characterization, modeling, reliability, and design de-bug, to qualification and production test. Semiconductor companies rely upon FormFactor's products and services to accelerate profitability by optimizing device performance and advancing yield knowledge. The Company serves customers through its network of facilities in Asia, Europe, and North America. For more information, visit the Company's website at Forward-looking Statements: This press release contains forward-looking statements within the meaning of the 'safe harbor' provisions of the federal securities laws, including with respect to the Company's future financial and operating results, and the Company's plans, strategies and objectives for future operations. These statements are based on management's current expectations and beliefs as of the date of this release, and are subject to a number of risks and uncertainties, many of which are beyond the Company's control, that could cause actual results to differ materially from those described in the forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding future financial and operating results, including under the heading 'Outlook' above, market trends, conditions in and the growth of the semiconductor industry and the Company's performance, and other statements regarding the Company's business. Forward-looking statements may contain words such as 'may,' 'might,' 'will,' 'expect,' 'plan,' 'anticipate,' 'forecast,' 'continue,' and "prospect," and the negative or plural of these words and similar expressions, and include the assumptions that underlie such statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in and impacts from export control, tariffs and other trade barriers; changes in demand for the Company's products; customer-specific demand; market opportunity; anticipated industry trends; the availability, benefits, and speed of customer acceptance or implementation of new products and technologies; manufacturing, processing, and design capacity, goals, expansion, volumes, and progress; difficulties or delays in research and development; industry seasonality; risks to the Company's realization of benefits from acquisitions; reliance on customers or third parties (including suppliers); changes in macro-economic environments; events affecting global and regional economic and market conditions and stability such as tariffs, military conflicts, political volatility, infectious diseases and pandemics, and similar factors, operating separately or in combination; and other factors, including those set forth in the Company's most current annual report on Form 10-K, quarterly reports on Form 10-Q and other filings by the Company with the U.S. Securities and Exchange Commission. In addition, there are varying barriers to international trade, including restrictive trade and export regulations such as the US-China restrictions, dynamic tariffs, trade disputes between the U.S. and other countries, and national security developments or tensions, that may substantially restrict or condition our sales to or in certain countries, increase the cost of doing business internationally, and disrupt our supply chain. No assurances can be given that any of the events anticipated by the forward-looking statements within this press release will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company. Unless required by law, the Company is under no obligation (and expressly disclaims any such obligation) to update or revise its forward-looking statements whether as a result of new information, future events, or otherwise.
Yahoo
14-05-2025
- Business
- Yahoo
FORM Q1 Earnings Call: Tariffs and AI-Driven Demand Shape FormFactor's Outlook
Semiconductor testing company FormFactor (NASDAQ:FORM) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 1.6% year on year to $171.4 million. The company expects next quarter's revenue to be around $190 million, close to analysts' estimates. Its non-GAAP profit of $0.23 per share was 21.7% above analysts' consensus estimates. Is now the time to buy FORM? Find out in our full research report (it's free). Revenue: $171.4 million vs analyst estimates of $169.9 million (1.6% year-on-year growth, 0.9% beat) Adjusted EPS: $0.23 vs analyst estimates of $0.19 (21.7% beat) Adjusted EBITDA: $27.44 million vs analyst estimates of $21.81 million (16% margin, 25.8% beat) Revenue Guidance for Q2 CY2025 is $190 million at the midpoint, roughly in line with what analysts were expecting Adjusted EPS guidance for Q2 CY2025 is $0.30 at the midpoint, above analyst estimates of $0.29 Operating Margin: 1.9%, down from 12.6% in the same quarter last year Free Cash Flow Margin: 2.9%, down from 11.7% in the same quarter last year Inventory Days Outstanding: 94, up from 80 in the previous quarter Market Capitalization: $2.5 billion FormFactor's first quarter results reflected anticipated declines in DRAM probe card and systems demand, partially offset by stable foundry and logic markets. CEO Mike Slessor attributed sequential revenue softness to tighter export controls and lower non-high bandwidth memory (HBM) demand, but noted that ongoing investments in generative AI and advanced packaging are increasing test intensity and driving opportunities in HBM and co-packaged optics. Slessor stated, 'HBM represents a much larger portion of the total silicon area and wafers produced,' highlighting the significance of this trend for the business. Looking ahead, FormFactor's guidance for the second quarter assumes revenue growth across all major segments, with particular emphasis on rising HBM probe card and foundry logic demand fueled by AI and new chip designs. However, management emphasized uncertainty from evolving tariff policies, indicating that the company is taking a cautious, wait-and-see approach regarding potential supply chain adjustments. CFO Shai Shahar noted, 'We estimate a mid-single-digit million-dollar reduction in revenues and a one percentage point reduction in gross margins due to tariffs,' underscoring the external pressures factored into the company's outlook. FormFactor's first quarter was shaped by shifting demand in key semiconductor testing markets, ongoing product innovation, and the impact of global trade policies. Management focused on how product mix, tariffs, and industry trends are influencing both short-term results and long-term positioning. AI and HBM Demand: Generative AI adoption is increasing demand for HBM (high bandwidth memory) probe cards and co-packaged optics test systems. Slessor highlighted a ramp in HBM4 shipments and growing contributions from multiple HBM customers, positioning FormFactor to benefit from rising test complexity and intensity tied to AI-driven chip production. Tariff and Export Controls: New U.S. tariffs and export controls have directly reduced sales in China and increased costs for U.S.-manufactured products. Management noted that 80% of FormFactor's manufacturing is in the U.S., meaning tariffs on imported subcomponents and exported finished goods are impacting both revenue and gross margin, with further uncertainty ahead. Customer Diversification: The company's diversification strategy has lessened prior dependence on single large customers. Recent increases in client PC probe card demand reflect a rebound, but management stressed the importance of exposure to broader industry trends like advanced packaging and AI. Acquisition of FICT Limited: The completed acquisition of FICT Limited, a supplier of multilayer organic substrates, is expected to enhance FormFactor's technology access and production efficiency for advanced probe cards, addressing new technical requirements in foundry and logic segments. Systems Segment Growth: Demand for FormFactor's measurement systems is being driven by customer innovation in quantum computing and data center applications. The company plans to ship multiple systems supporting pilot production of co-packaged optics photonic integrated circuits, which management believes could fuel mid-term growth. Management's outlook for the coming quarters centers on continued AI-driven demand, increased test complexity, and ongoing supply chain risks from tariffs. The company expects sequential growth but sees external factors as critical to achieving margin and revenue targets. AI and Advanced Packaging Expansion: Rising adoption of generative AI and advanced chip packaging is expected to drive higher sales of HBM probe cards and test systems, increasing both revenue potential and market share in these segments. Tariff and Geopolitical Uncertainty: Management identified tariffs and evolving trade policies as significant risks, with potential for further cost increases and revenue headwinds depending on future regulatory developments. The company is monitoring the situation but has not committed to supply chain changes. Product and Customer Portfolio Mix: Achieving targeted gross margins and earnings will depend on a recovery in end markets, a favorable shift toward higher-margin products, and increased market share in foundry and logic probe cards. Internal efforts such as lean manufacturing and new product architectures are also expected to contribute to future profitability. Charles Shi (Needham & Company): Asked about the quantified impact of tariffs on revenue and margin; CFO Shai Shahar explained that the guidance includes an estimated mid-single-digit million-dollar revenue reduction and a one percentage point gross margin hit, mainly related to costs of imported components and customer impacts in China. Craig Ellis (B. Riley Securities): Inquired about the rebound in sales to a major client PC customer and confidence in ongoing demand; CEO Mike Slessor highlighted the customer's renewed investment in advanced test equipment as part of their turnaround strategy, along with FormFactor's broader diversification into AI and HBM markets. Tom Diffely (D.A. Davidson): Asked about the transition between HBM3 and HBM4 probe cards and whether the product mix affects margins; Slessor noted that HBM generally carries higher margins than commodity DRAM, with incremental margin improvement possible as HBM4 ramps, though not matching foundry/logic margins. Christian Schwab (Craig Hallum Capital): Sought clarity on foundry and logic revenue outlook given possible PC demand from Windows 10 end-of-life; Slessor acknowledged the potential but flagged tariff uncertainty as a key headwind to realizing this growth. David Duley (Steelhead Securities): Asked about FormFactor's position with a major GPU manufacturer and the significance of co-package optics; Slessor indicated the company is making progress in both switch and GPU probe cards, with co-package optics representing a new production opportunity. In upcoming quarters, the StockStory team will monitor (1) the pace of HBM and co-packaged optics adoption, particularly as customers transition to new AI-driven designs; (2) the impact of tariffs and export controls on both revenue and gross margins as global trade policies evolve; and (3) progress in integrating FICT Limited's substrate technology to support advanced probe card offerings. The company's ability to capture share in emerging applications and adjust to external pressures will be key indicators of execution. FormFactor currently trades at a forward P/E ratio of 21.9×. Should you double down or take your chips? See for yourself in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
08-04-2025
- Business
- Yahoo
Q4 Earnings Highs And Lows: FormFactor (NASDAQ:FORM) Vs The Rest Of The Semiconductor Manufacturing Stocks
Looking back on semiconductor manufacturing stocks' Q4 earnings, we examine this quarter's best and worst performers, including FormFactor (NASDAQ:FORM) and its peers. The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment. The 14 semiconductor manufacturing stocks we track reported a satisfactory Q4. As a group, revenues beat analysts' consensus estimates by 1.6% while next quarter's revenue guidance was 1.7% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 26% since the latest earnings results. With customers across the foundry and fabless markets, FormFactor (NASDAQ:FORM) is a US-based provider of test and measurement technologies for semiconductors. FormFactor reported revenues of $189.5 million, up 12.7% year on year. This print was in line with analysts' expectations, but overall, it was a softer quarter for the company with a significant miss of analysts' adjusted operating income and EPS estimates. 'As expected, FormFactor reported sequentially lower fourth-quarter revenue, gross margin, and non-GAAP earnings per share, driven by the forecasted reduction in Foundry & Logic probe-card revenue,' said Mike Slessor, CEO of FormFactor, Unsurprisingly, the stock is down 39.8% since reporting and currently trades at $24.78. Read our full report on FormFactor here, it's free. Headquartered in Singapore, Kulicke & Soffa (NASDAQ: KLIC) is a provider of production equipment and tools used to assemble semiconductor devices Kulicke and Soffa reported revenues of $166.1 million, down 3% year on year, outperforming analysts' expectations by 0.7%. The business had a very strong quarter with a significant improvement in its inventory levels and an impressive beat of analysts' EPS estimates. The stock is down 24% since reporting. It currently trades at $32.99. Is now the time to buy Kulicke and Soffa? Access our full analysis of the earnings results here, it's free. Moving away from a low margin storage device management chips in one of the biggest semiconductor business model pivots of the past decade, Marvell Technology (NASDAQ: MRVL) is a fabless designer of special purpose data processing and networking chips used by data centers, communications carriers, enterprises, and autos. Marvell Technology reported revenues of $1.82 billion, up 27.4% year on year, exceeding analysts' expectations by 1.2%. Still, it was a slower quarter as it posted revenue guidance for next quarter slightly missing analysts' expectations and an increase in its inventory levels. As expected, the stock is down 41.4% since the results and currently trades at $52.85. Read our full analysis of Marvell Technology's results here. With fabs representing the company's largest customer type, Entegris (NASDAQ:ENTG) supplies products that purify, protect, and generally ensure the integrity of raw materials needed for advanced semiconductor manufacturing. Entegris reported revenues of $849.8 million, up 4.6% year on year. This number topped analysts' expectations by 3.3%. It was a strong quarter as it also logged a solid beat of analysts' EPS estimates and an impressive beat of analysts' adjusted operating income estimates. The stock is down 34.8% since reporting and currently trades at $67.83. Read our full, actionable report on Entegris here, it's free. A public company since the late 1960s, Semtech (NASDAQ:SMTC) is a provider of analog and mixed-signal semiconductors used for Internet of Things systems and cloud connectivity. Semtech reported revenues of $251 million, up 30.1% year on year. This print met analysts' expectations. Overall, it was a strong quarter as it also recorded an impressive beat of analysts' EPS estimates and a solid beat of analysts' adjusted operating income estimates. The stock is down 11% since reporting and currently trades at $29.05. Read our full, actionable report on Semtech here, it's free. Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Sign in to access your portfolio
