FormFactor, Inc. Announces Cost Reduction Plan
January 13 2009 - 4:15PM
Marketwired
FormFactor, Inc. (NASDAQ: FORM) today announced a global
reorganization and cost reduction plan. As part of the plan the
company will reduce its workforce by 22%.
FormFactor expects to incur approximately $8 million in charges
related to the plan, which will be recorded in the first quarter of
fiscal 2009.
"These are extraordinary times for the semiconductor market and
our customers," said Mario Ruscev, FormFactor CEO. "We have seen a
rapid slowdown in our customers' investment plans, which has driven
significant volatility in our forecasts. Therefore, we are moving
aggressively to lower our cash breakeven level, which will enable
the company to sustain itself financially through these difficult
times."
FormFactor, Inc. will report financial results for its 2008
fourth quarter on Wednesday, January 28, 2009, at 1:30 p.m. Pacific
Standard Time. The public is invited to listen to a live webcast
and archived replay of FormFactor's conference call on the
Investors section of the company's web site at www.formfactor.com.
A telephone replay of the conference call will be available
approximately two hours after the conclusion of the call. The
telephone replay will be available through January 30, 2009, 9:00
p.m. Pacific Standard Time, and can be accessed by dialing
888-203-1112 (domestic) or 719-457-0820 (international) and
entering confirmation code 4718123.
About FormFactor:
Founded in 1993, FormFactor, Inc. (NASDAQ: FORM) is the leader
in advanced wafer probe cards, which are used by semiconductor
manufacturers to electrically test integrated circuits, or ICs. The
company's wafer sort, burn-in and device performance testing
products move IC testing upstream from post-packaging to the wafer
level, enabling semiconductor manufacturers to lower their overall
production costs, improve yields, and bring next-generation devices
to market. FormFactor is headquartered in Livermore, California
with operations in Europe, Asia and North America. For more
information, visit the company's website at www.formfactor.com.
FORM-F
FormFactor and the FormFactor logo are registered trademarks of
FormFactor, Inc. All other product, trademark, company or service
names mentioned herein are the property of their respective
owners.
Forward-looking Statements
Statements in this press release that are not strictly
historical in nature are forward-looking statements within the
meaning of the federal securities laws, including statements
regarding business momentum, demand for our products and future
growth. These forward-looking statements are based on current
information and expectations that are inherently subject to change
and involve a number of risks and uncertainties. Actual events or
results might differ materially from those in any forward-looking
statement due to various factors, including, but not limited to:
changes in the semiconductor market environment, including DRAM and
Flash memories; changes in the company's customers' announced
capital equipment investment plans; the volatility of demand for
certain semiconductor devices; and the company's ability to execute
its cost reduction plan, to lower its cash breakeven level and to
implement and execute measures for enabling efficiencies and still
support future growth. Additional information concerning factors
that could cause actual events or results to differ materially from
those in any forward-looking statement is contained in the
company's SEC filings, including the Form 10-K for the fiscal year
ended December 29, 2007 and the Form 10-Qs for the first three
quarters of 2008. Copies of the company's SEC filings are available
at http://investors.formfactor.com/edgar.cfm. The company assumes
no obligation to update the information in this press release, to
revise any forward-looking statements or to update the reasons
actual results could differ materially from those anticipated in
forward-looking statements.
Contacts: Investor Contact: Michael Magaro Investor Relations
(925) 290-4321 Email Contact Trade Press Contact: David Viera
Director of Corporate Communications (925) 290-4681 Email
Contact
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