FormFactor, Inc. Updates Third Quarter Revenue Plan
August 31 2010 - 4:05PM
Marketwired
FormFactor, Inc. (NASDAQ: FORM) today announced that it expects
revenue for fiscal third quarter 2010 to be between $46 and $48
million, lower than the previous expectation of the low to mid $50
millions. The lower than expected results are due to the timing of
completion of qualifications for the Matrix product family at major
customers, the company's decision to turn away low margin business
and longer lead times quoted than customers requested.
"Our new Matrix platform is gaining traction," said Carl
Everett, CEO. "I believe as our Matrix products become fully
adopted at all major DRAM manufacturers, it will become the
preferred full-wafer-contact probe solution."
FormFactor also announced today its intent to file a program in
which it will offer a voluntary stock option exchange for its
employees. The exchange program offer is designed to help the
company retain and incentivize employees, with the aim of enhancing
value for all shareholders. The program, which was approved by the
Board of Directors, will provide FormFactor employees the
opportunity to exchange certain stock options with exercise prices
that are currently underwater, for replacement options that can be
exercised at a price that more closely reflects FormFactor's
current share value. The program excludes named executive officers
and Board members.
"Retaining our experienced employees is essential to executing
our turnaround plan for FormFactor," Everett continued. "The stock
option exchange provides an opportunity for our employees to
eliminate the negative impact of having options that are
substantially underwater. It will also encourage them to take part
in the turnaround and to create a company that delivers long-term
shareholder value."
A conference call to discuss the financial guidance and the
stock option exchange program will be held tomorrow, September 1 at
2:30 p.m. PDT, or 5:30 p.m. EDT. The public is invited to listen to
a live web cast of FormFactor's conference call on the Investors
section of the company's website at www.formfactor.com. An audio
replay of the conference call will also be made available
approximately two hours after the conclusion of the call. The audio
replay will remain available until September 3, 2010 at 9:00 p.m.
PDT, and can be accessed by dialing (800) 642-1687 (domestic) or
(706) 645-9291 (international) and entering confirmation code
98363594.
This press release is for informational purposes only and is not
an offer to buy, or the solicitation of an offer to sell, any stock
options. FormFactor, Inc. expects to announce further information
on the details of the proposed exchange offer in the near future.
The exchange offer, if commenced, will be made solely by and
subject to the terms and conditions set forth in a Schedule TO
(including the Offer to Exchange Certain Outstanding Stock Options
for New Stock Options (the "Offer to Exchange")) that will be filed
by FormFactor, Inc. with the Securities and Exchange Commission
("SEC"). The Schedule TO and related materials will contain
important information, including complete instructions on how to
tender stock options, and should be read carefully and in their
entirety before any decision is made with respect to the exchange
offer. The Offer to Exchange will be delivered to all eligible
holders of eligible stock options. Once the Schedule TO and offer
documents are filed with the SEC, they will be available free of
charge on the SEC's website at www.sec.gov.
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.
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 anticipated
results, market conditions, expectations and operating plans. 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
actual results for the third quarter as compared to the updated
information contained in this release, our ability to qualify our
Matrix products and have them be adopted at all major DRAM
manufacturers as the preferred full-wafer-contact probe solution,
our ability to take steps to increase our profit margins, our
ability to make the decision to forego certain product orders but
retain the customer for other existing or future orders, the demand
for semiconductor devices, especially memory devices, the timing
and extent of a semiconductor industry recovery, our ability to
retain and incentivize employees and to complete an employee stock
option program exchange, and our ability to deliver long-term
shareholder value. 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 Form 10-K for the fiscal year ended December 26, 2009, as
filed with the SEC, and subsequent SEC filings, including the
company's Form 10-Q for its fiscal quarterly period ending March
27, 2010 and the company's Form 10-Q for its fiscal quarterly
period ending June 26, 2010. 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.
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.
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Investor Contact: Stan Finkelstein Investor Relations
(925) 290-4321 Email Contact Trade Press Contact: David
Viera Corporate Communications (925) 290-4681 Email Contact
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