FormFactor (FORM) Prelim. Q1 Results Miss Views

FormFactor, Inc. (NASDAQ: FORM) announced that its first-quarter 2016 results will be below prior guidance. The company expects revenue of between $53 million to $54 million, non-GAAP gross margin of 22% to 24%, and non-GAAP loss per share of $0.10 to $0.12.

*** The Street sees Q1 revenue of $68 million and EPS of $0.05.

This revision is the result of two timing-related factors. First and primarily, to meet a doubling in demand for SoC probe cards by a key customer, the company increased capacity, although at a rate slower than originally planned. The company holds record backlog for this product line, and expects to continue to produce at record levels through the remainder of 2016. Second, the company experienced push-outs of DRAM probe card deliveries by certain customers from the first quarter to the early part of the second quarter. This SoC and DRAM demand is secured by firm customer purchase orders.

In addition, the company provided preliminary second quarter revenue guidance of $72 million to $80 million.

"With the strong demand acceleration for the company's SoC probe cards, and the gradual increase in DRAM new-design activity, we remain confident that we will grow annual revenues for the fourth consecutive year," commented Mike Slessor, FormFactor's Chief Executive Officer.

The company also confirmed that it anticipates closing its acquisition of Cascade Microtech by mid-2016 as previously announced.

Conference Call and Webcast Details

The public is invited to a listen-only live webcast of the conference call at 5:00 p.m. Eastern (2:00 p.m. Pacific). The conference call can be joined by dialing (877) 331-4217, Conference ID 80069448, within the U.S. and (224) 633-1404 for all other locations. To access the webcast, visit the Investors section of FormFactor's web site at http://www.formfactor.com and click on the Events & Presentations section to view the details. A webcast replay will be available on the FormFactor web site approximately three hours after the conference call concludes. The recording will be available by telephone through Tuesday, April 5, 2016 2:00 PM Pacific, and can be accessed by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) and entering confirmation code 80069448.

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