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FormFactor FORM reported first-quarter 2025 non-GAAP earnings of 23 cents per share, surpassing the Zacks Consensus Estimate by 21.05%. The bottom line increased 27.8% from the year-ago quarter.
Revenues of $171.4 million beat the Zacks Consensus Estimate by 0.79% and increased 1.6% year over year. However, FormFactor reported a 9.6% sequential decline in first-quarter revenues due to anticipated reductions in demand for DRAM probe cards and Systems.
Following the earnings release, FormFactor’s shares jumped more than 10% in the pre-market trading on April 30, driven by a strong second-quarter 2025 outlook that projects double-digit sequential revenue growth across all major segments.
FORM’s earnings beat the Zacks Consensus Estimate twice and missed in the remaining two, the surprise being 3.41%, on average. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
FormFactor, Inc. Price, Consensus and EPS Surprise
FormFactor, Inc. price-consensus-eps-surprise-chart | FormFactor, Inc. Quote
FormFactor’s Segmental Revenue Details
Probe card revenues were $136.6 million, down 0.1% year over year. The decrease was led by lower DRAM and Flash revenues.
Foundry and Logic revenues (49.8% of the total revenues) were $85.3 million, down 1.7% year over year.
DRAM revenues (28.5% of the total revenues) were $48.9 million, up 6.5% year over year.
Flash revenues (1.4% of the total revenues) were $2.4 million. The reported figure fell 40% year over year.
Systems revenues (20.3% of the total revenues) were $34.8 million, up 8.7% year over year.
Revenues generated from Malaysia, Taiwan, Japan and Singapore increased 36.8%, 51.8%, 21.2% and 29.2%, year over year, respectively.
However, revenues from the United States, South Korea, China, Europe and the rest of the world declined 12%, 14.8%, 12.8%, 11.4%, and 25.9%, year over year, respectively.
FORM’s Operating Results
In the first quarter of 2025, the gross margin expanded 50 basis points (bps) year over year to 39.2%.
Non-GAAP operating expenses decreased 4% year over year to $50.2 million. As a percentage of revenues, operating expenses moved down 170 bps year over year to 29.3%.
The non-GAAP operating margin improved 220 bps year over year to 9.9%.
FormFactor’s Balance Sheet & Cash Flow
As of March 29, 2025, cash and cash equivalents, and marketable securities were $299.0 million compared with $360 million as of Dec. 28, 2024.
Cash generated from operating activities was $23.5 million in the reported quarter, down from $35.9 million in the previous quarter.
The company generated a free cash flow of $6.3 million in the first quarter, down from $28.8 million in the prior quarter. The decline was primarily due to reduced operating cash flows, led by lower profitability, higher working capital use and increased capital expenditure.