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FormFactor, Inc. Reports First Quarter Results in Line With Updated Guidance

LIVERMORE, CA, Apr 27, 2016 (Marketwired via COMTEX) -- FormFactor, Inc. FORM, -2.46% today announced its financial results for the first quarter of fiscal 2016 ended March 26, 2016. Results were in line with the Company's updated guidance provided on March 29, 2016. Quarterly revenues were $53.6 million, down 25% from $71.8 million in the fourth quarter of fiscal 2015, and down 24% from $70.8 million in the first quarter of fiscal 2015.

"As previously stated, our first quarter results were impacted by two factors. First, our slower than planned ramp of capacity to meet customer-specific SoC probe card demand, which has been rectified, and second, the push-out of DRAM probe card deliveries by certain customers," said Mike Slessor, CEO of FormFactor, Inc. "While we are not pleased with our first quarter performance, we dealt with these issues swiftly, and they are now behind us. With continued strong customer demand for our SoC products, and improving DRAM market conditions, we remain confident that FormFactor's 2016 revenues will grow for the fourth consecutive year."

On a GAAP basis, net loss for the first quarter of fiscal 2016 was $(13.8) million, or $(0.24) per fully-diluted share, compared to a net loss for the fourth quarter of fiscal 2015 of $(0.6) million, or $(0.01) per fully-diluted share, and a net income for the first quarter of fiscal 2015 of $0.8 million, or $0.01 per fully-diluted share.

On a non-GAAP basis, net loss for the first quarter of fiscal 2016 was $(6.3) million, or $(0.11) per fully-diluted share, compared to a net income for the fourth quarter of fiscal 2015 of $5.8 million, or $0.10 per fully-diluted share, and net income for the first quarter of fiscal 2015 of $5.9 million, or $0.10 per fully-diluted share. A reconciliation of GAAP to non-GAAP net income (loss) and net income (loss) per share is provided in the schedules included below.

Cash usage in the first quarter of fiscal 2016 was $(0.4) million, compared to cash generation of $3.8 million for the fourth quarter of fiscal 2015 and cash generation of $7.8 million for the first quarter of fiscal 2015.

Second Quarter 2016 Guidance

"FormFactor has a structurally profitable and resilient business model, and we currently anticipate significantly improved results in the current quarter," commented Mike Ludwig, CFO of FormFactor, Inc.

Second quarter revenue is currently forecasted to be in the range of $76 million to $80 million, non-GAAP gross margin to be in the range of 34% to 37% and non-GAAP fully diluted earnings per share to be in the range of $0.10 - $0.14. Cash flow is forecasted to be positive $4 million to $6 million. Q2 guidance excludes impact from Cascade Microtech acquisition.

Update on Pending Acquisition of Cascade Microtech

The Company also provided an update on its pending merger with Cascade Microtech. The two companies have cleared the Hart-Scott Rodino waiting period and have filed the S-4 registration and proxy statement on April 1st. As previously communicated, the Company is on track to close the acquisition of Cascade Microtech by mid-2016.

Dr. Slessor commented, "We are excited to be working with the Cascade team on integration planning in order to expand the opportunities for the combined company. We are bringing together two market leaders across complementary semiconductor test and measurement applications - both of whom are growing faster than their respective markets. We are creating significant scale, customer diversification and broadening our addressable market."

On April 26th, Cascade Microtech reported quarterly revenue of $34.8 million, record gross margin of 59.4%, and income from operations of $2.9 million. Cascade Microtech also provided second quarter revenue guidance of $38 million to $42 million.

Cascade's financial results can be found at http://www.cascademicrotech.com/investors

Further Information and Conference Call

The company has posted its revenue breakdown by region and market segment on the Investors section of its website at www.formfactor.com.

The public is invited to listen to a live webcast of FormFactor's conference call at 1:30 p.m. PDT, or 4:30 p.m. EDT, today on the Investors section of the company's web site at www.formfactor.com. A telephone recording of the conference call will be available approximately two hours after the conclusion of the call. The recording will be available by telephone through April 29, 2016, 8:30 p.m. PDT, and can be accessed by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) and entering confirmation code 90803181. The recording will also be available on the Investors section of our website, www.formfactor.com.

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 (loss) and non-GAAP earnings per fully-diluted share that are adjusted from the nearest GAAP financial measure to exclude certain costs, expenses and gains. Reconciliations of the adjustments to GAAP results for the three months ended March 26, 2016 are provided below. Information regarding the ways in which management uses non-GAAP financial information to evaluate its business, management's reasons for using this non-GAAP financial information, and limitations associated with the use of non-GAAP financial information, is included under "About our Non-GAAP Net Income (Loss) and Adjustments" following the tables below.

About FormFactor:

FormFactor, Inc. FORM, -2.46% helps semiconductor manufacturers test the integrated circuits (ICs) that power consumer mobile devices, as well as computing, automotive and other applications. The company is one of the world's leading providers of essential wafer test technologies and expertise, with an extensive portfolio of high-performance probe cards for DRAM, Flash and SoC devices. Customers use FormFactor's products and services to lower overall production costs, improve their yields and...


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