FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the first quarter of fiscal 2021 ended March 27, 2021. Quarterly revenues were $186.6 million, a decrease of 5.3% compared to $197.0 million in the fourth quarter of fiscal 2020, and an increase of 16.1% from $160.8 million in the first quarter of fiscal 2020.
- Robust Foundry & Logic and consistent DRAM results led to the second-highest quarterly revenue in Company’s history
- Differentiated strengths in 5G and advanced packaging drove share gains exceeding Foundry & Logic market growth
- Gross margins recovered after successfully addressing two discrete fourth-quarter issues
“Our revenue and gross margin performance, paired with good operating expense control, produced solid quarterly results as we continued to invest in capacity expansion to meet anticipated long-term, broad-based demand,” said Mike Slessor, CEO of FormFactor, Inc. “The underlying components of first quarter demand were similar to Q4’20, driven mostly by strong Foundry and Logic demand coupled with DRAM levels comparable to the previous quarter.”
First Quarter Highlights
On a GAAP basis, net income for the first quarter of fiscal 2021 was $19.6 million, or $0.25 per fully-diluted share, compared to net income for the fourth quarter of fiscal 2020 of $19.3 million, or $0.24 per fully-diluted share, and net income for the first quarter of fiscal 2020 of $15.9 million, or $0.20 per fully-diluted share. Gross margin for the first quarter of 2021 was 41.1%, compared with 39.4% in the fourth quarter of 2020, and 41.9% in the first quarter of 2020.
On a non-GAAP basis, net income for the first quarter of fiscal 2021 was $30.8 million, or $0.38 per fully-diluted share, compared to net income for the fourth quarter of fiscal 2020 of $35.3 million, or $0.44 per fully-diluted share, and net income for the first quarter of fiscal 2020 of $26.1 million, or $0.33 per fully-diluted share. On a non-GAAP basis, gross margin for the first quarter of 2021 was 45.0%, compared with 43.4% in the fourth quarter of 2020, and 46.1% in the first quarter of 2020.
A reconciliation of GAAP to non-GAAP measures is provided in the schedules included below.
Free cash flow for the first quarter of fiscal 2021 was $19.2 million, compared to free cash flow for the fourth quarter of fiscal 2020 of $31.4 million, and free cash flow for the first quarter of 2020 of $27.6 million. A reconciliation of net cash provided by operating activities to free cash flow is provided in the schedules included below.
Outlook
Dr. Slessor added, “In the second quarter we expect that a reduction in Foundry and Logic demand from the timing of certain customer design releases, following especially high first quarter levels, will be offset by increased DRAM probe card shipments.”
For the second quarter ending June 26, 2021, FormFactor is providing the following outlook*:
| GAAP | Reconciling Items** | Non-GAAP | |||
| Revenue | $180 million to $192 million | — | $180 million to $192 million | ||
| Gross Margin | 37% to 40% | $7 million | 41% to 44% | ||
| Net income per diluted share | $0.12 to $0.20 | $0.16 | $0.28 to $0.36 |
*This outlook assumes consistent foreign currency rates.