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Investor Contact:Stan FinkelsteinInvestor Relations(925) 290-4273ir@formfactor.com FORMFACTOR, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME(In thousands, except per share amounts) (Unaudited) Three Months Ended March 29,2025 December 28,2024 March 30,2024Revenues$171,356 $189,483 $168,725 Cost of revenues 106,833 115,903 105,987 Gross profit 64,523 73,580 62,738 Operating expenses: Research and development 27,800 30,504 28,627 Selling, general and administrative 33,454 35,226 33,079 Total operating expenses 61,254 65,730 61,706 Gain on sale of business — — 20,271 Operating income 3,269 7,850 21,303 Interest income, net 3,317 3,472 3,156 Other income, net 890 617 520 Income before income taxes 7,476 11,939 24,979 Provision for income taxes 1,075 2,234 3,198 Net income$6,401 $9,705 $21,781 Net income per share: Basic$0.08 $0.13 $0.28 Diluted$0.08 $0.12 $0.28 Weighted-average number of shares used in per share calculations: Basic 77,345 77,267 77,452 Diluted 77,884 77,982 78,490 FORMFACTOR, INC. NON-GAAP FINANCIAL MEASURE RECONCILIATIONS(In thousands, except per share amounts)(Unaudited) Three Months Ended March 29,2025 December 28,2024 March 30,2024GAAP Gross Profit$64,523 $73,580 $62,738 Adjustments: Amortization of intangibles and fixed asset fair value adjustments due to acquisitions 542 555 586 Stock-based compensation 2,005 1,944 1,928 Restructuring charges 60 32 44 Non-GAAP Gross Profit$67,130 $76,111 $65,296 GAAP Gross Margin 37.7% 38.8% 37.2%Adjustments: Amortization of intangibles and fixed asset fair value adjustments due to acquisitions 0.3% 0.4% 0.4%Stock-based compensation 1.2% 1.0% 1.1%Restructuring charges —% —% —%Non-GAAP Gross Margin 39.2% 40.2% 38.7% GAAP operating expenses$61,254 $65,730 $61,706 Adjustments: Amortization of intangibles (191) (191) (191)Stock-based compensation (7,791) (8,269) (8,477)Restructuring charges (2,823) (371) (49)Costs related to sale and acquisition of businesses (217) (1,689) (646)Non-GAAP operating expenses$50,232 $55,210 $52,343 GAAP operating income$3,269 $7,850 $21,303 Adjustments: Amortization of intangibles and fixed asset fair value adjustments due to acquisitions 733 746 777 Stock-based compensation 9,796 10,213 10,405 Restructuring charges 2,883 403 93 Gain on sale of business, net of cost related to sale and acquisition of businesses 217 1,689 (19,625)Non-GAAP operating income$16,898 $20,901 $12,953 FORMFACTOR, INC. NON-GAAP FINANCIAL MEASURE RECONCILIATIONS(In thousands, except per share amounts)(Unaudited) Three Months Ended March 29,2025 December 28,2024 March 30,2024GAAP net income$6,401 $9,705 $21,781 Adjustments: Amortization of intangibles and fixed asset fair value adjustments due to acquisitions 733 746 777 Stock-based compensation 9,796 10,213 10,405 Restructuring charges 2,883 415 93 Gain on sale of business, net of cost related to sale and acquisition of businesses 217 1,689 (19,625)Income tax effect of non-GAAP adjustments (2,026) (1,445) 913 Non-GAAP net income$18,004 $21,323 $14,344 GAAP net income per share: Basic$0.08 $0.13 $0.28 Diluted$0.08 $0.12 $0.28 Non-GAAP net income per share: Basic$0.23 $0.28 $0.19 Diluted$0.23 $0.27 $0.18 FORMFACTOR, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)(Unaudited) Three Months Ended March 29,2025 March 30,2024Cash flows from operating activities: Net income$6,401 $21,781 Selected adjustments to reconcile net income to net cash provided by operating activities: Depreciation 8,156 7,193 Amortization 674 640 Stock-based compensation expense 9,796 10,405 Provision for excess and obsolete inventories 2,879 3,146 Gain on sale of business — (20,271)Non-cash restructuring charges 2,102 — Other activity impacting operating cash flows (6,469) 10,118 Net cash provided by operating activities 23,539 33,012 Cash flows from investing activities: Acquisition of property, plant and equipment (18,584) (13,436)Proceeds from sale of business — 21,275 Purchase of equity investment (67,156) — Proceeds from (purchases of) marketable securities, net 1,080 (11,659)Net cash used in investing activities (84,660) (3,820)Cash flows from financing activities: Purchase of common stock through stock repurchase program (22,135) (17,334)Proceeds from issuances of common stock 21,576 4,948 Principal repayments on term loans (273) (266)Tax withholdings related to net share settlements of equity awards (2,132) (1,840)Net cash used in financing activities (2,964) (14,492)Effect of exchange rate changes on cash, cash equivalents and restricted cash 180 (1,592)Net increase (decrease) in cash, cash equivalents and restricted cash (63,905) 13,108 Cash, cash equivalents and restricted cash, beginning of period 197,206 181,273 Cash, cash equivalents and restricted cash, end of period$133,301 $194,381 FORMFACTOR, INC. RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOW(In thousands)(Unaudited) Three Months Ended March 29,2025 December 28,2024 March 30,2024Net cash provided by operating activities$23,539 $35,913 $33,012 Adjustments: Sale of business and acquisition related payments in working capital 1,221 506 47 Cash paid for interest 92 93 100 Capital expenditures (18,584) (7,663) (13,436)Free cash flow$6,268 $28,849 $19,723 FORMFACTOR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands) (Unaudited) March 29,2025 December 28,2024ASSETS Current assets: Cash and cash equivalents$129,889 $190,728 Marketable securities 169,099 169,295 Accounts receivable, net of allowance for credit losses 98,605 104,294 Inventories, net 109,965 101,676 Restricted cash 967 3,746 Prepaid expenses and other current assets 42,716 35,389 Total current assets 551,241 605,128 Restricted cash 2,445 2,732 Operating lease, right-of-use-assets 20,054 22,579 Property, plant and equipment, net of accumulated depreciation 208,317 210,230 Equity investment 68,667 — Goodwill 199,700 199,171 Intangibles, net 9,681 10,355 Deferred tax assets 92,759 92,012 Other assets 3,303 4,008 Total assets$1,156,167 $1,146,215 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable$64,536 $62,287 Accrued liabilities 34,909 43,742 Current portion of term loan, net of unamortized issuance costs 1,113 1,106 Deferred revenue 14,996 15,847 Operating lease liabilities 8,461 8,363 Total current liabilities 124,015 131,345 Term loan, less current portion, net of unamortized issuance costs 11,927 12,208 Long-term operating lease liabilities 15,980 17,550 Deferred grant 18,000 18,000 Other liabilities 20,371 19,344 Total liabilities 190,293 198,447 Stockholders’ equity: Common stock 77 77 Additional paid-in capital 844,488 837,586 Accumulated other comprehensive loss (6,037) (10,840)Accumulated income 127,346 120,945 Total stockholders’ equity 965,874 947,768 Total liabilities and stockholders’ equity$1,156,167 $1,146,215 About our Non-GAAP Financial Measures: We believe that the presentation of non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and free cash flow provides supplemental information that is important to understanding financial and business trends and other factors relating to our financial condition and results of operations.
The replay will be available on the Investor Relations section of our website, Use of Non-GAAP Financial Information: To supplement our condensed consolidated financial results prepared under generally accepted accounting principles, or GAAP, we disclose certain non-GAAP measures of non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and free cash flow, that are adjusted from the nearest GAAP financial measure to exclude certain costs, expenses, gains and losses.
