FormFactor (FORM) Raises Q4 Guidance

FormFactor, Inc. (Nasdaq: FORM) today updated its prior outlook for Revenue, Gross Margins and Earnings Per share for its fiscal fourth quarter of 2019 ending December 28, 2019.

FormFactor now expects the following outlook*:

*This outlook assumes consistent foreign currency rates.**Reconciling items are amortization of intangibles, stock-based compensation, restructuring charges, and acquisition related expenses.

(*Consensus sees Q4 EPS of $0.26 on revenue of $147.53 million)

Mike Slessor, CEO of FormFactor, Inc., said, “The incremental demand driving our increased outlook ranges reflects the same factors that contributed to our previously disclosed, sequentially-stronger fourth quarter outlook: Strength in Foundry and Logic, overlaid on continued robust demand in our other businesses. This incremental demand is more significant than we anticipated on October 30, as major Foundry and Logic customers are aggressively ramping both new designs and new nodes.

“Consistent with our October 30 remarks, we are adding flexible capacity during the fourth quarter, enabling us to capture this incremental, perishable demand. Our ability to add capacity faster and more efficiently than we expected reflects excellent execution by our operations teams.

“We anticipate some of this momentum will continue into the first quarter of 2020, as our customers’ new-design and node activity normalizes. As we have noted in the past, our business has limited visibility, as illustrated by the upside opportunity we are capitalizing on this quarter.

“This increase in our revenue outlook does not signal a structural change, though we are excited about our continued progress towards our target financial model of $650M revenue and $1.25 non-GAAP EPS,” Slessor concluded.

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