On July 31, 2024, FormFactor Inc (FORM, Financial) released its 8-K filing for the second quarter of fiscal 2024, showcasing impressive financial results that surpassed analyst expectations. The company, which designs, develops, manufactures, sells, and supports semiconductor probe card products, operates in two segments: Probe Cards and Systems. The Probe Cards segment, which includes sales of probe cards and analytical probes, generates the majority of the company's revenue.
Performance Overview
FormFactor Inc (FORM, Financial) reported quarterly revenues of $197.5 million, a 17.0% increase from $168.7 million in the first quarter of fiscal 2024 and a 26.7% rise from $155.9 million in the second quarter of fiscal 2023. This performance was driven by the strength in the Probe Card segment, particularly in the Foundry & Logic, DRAM, and Flash markets. Notably, DRAM probe card revenue reached an all-time high, with High Bandwidth Memory (HBM) revenue doubling for the third consecutive quarter.
Financial Achievements
On a GAAP basis, FormFactor Inc (FORM, Financial) reported a net income of $19.4 million, or $0.25 per fully-diluted share, compared to $21.8 million, or $0.28 per fully-diluted share, in the first quarter of fiscal 2024. This is a significant improvement from the $0.8 million, or $0.01 per fully-diluted share, reported in the second quarter of fiscal 2023. The gross margin for the second quarter of 2024 was 44.0%, up from 37.2% in the first quarter of 2024 and 38.7% in the second quarter of 2023.
“FormFactor set an all-time record for DRAM probe-card revenue in the second quarter, driven by sequential doubling of high-bandwidth-memory revenue and steady DDR5 new-design activity,” said Mike Slessor, CEO of FormFactor, Inc.
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Revenue | $197.5 million | $168.7 million | $155.9 million |
| Net Income (GAAP) | $19.4 million | $21.8 million | $0.8 million |
| Gross Margin (GAAP) | 44.0% | 37.2% | 38.7% |
| Net Income per Share (GAAP) | $0.25 | $0.28 | $0.01 |
Income Statement Highlights
FormFactor Inc (FORM, Financial) reported a gross profit of $86.9 million for the second quarter of 2024, compared to $62.7 million in the first quarter of 2024 and $60.3 million in the second quarter of 2023. Operating expenses for the second quarter were $69.4 million, up from $61.7 million in the first quarter of 2024 and $61.6 million in the second quarter of 2023. The company also recorded a gain on the sale of a business amounting to $310,000.
Cash Flow and Balance Sheet
Net cash provided by operating activities for the second quarter of fiscal 2024 was $21.9 million, compared to $33.0 million in the first quarter of fiscal 2024 and $22.5 million in the second quarter of fiscal 2023. Free cash flow for the second quarter was $14.2 million, down from $19.7 million in the first quarter of fiscal 2024 but significantly higher than the $2.1 million reported in the second quarter of 2023.
Outlook
Looking ahead to the third quarter of fiscal 2024, FormFactor Inc (FORM, Financial) expects overall demand to remain steady, with projected revenues of $200 million +/- $5 million. The company anticipates a gross margin of 42% +/- 1.5% on a GAAP basis and 43% +/- 1.5% on a non-GAAP basis. Net income per diluted share is expected to be $0.20 +/- $0.04 on a GAAP basis and $0.31 +/- $0.04 on a non-GAAP basis.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from FormFactor Inc for further details.
