Formfactor ( (FORM) ) has realeased its Q3 earnings. Here is a breakdown of the information Formfactor presented to its investors.
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FormFactor, Inc. is a prominent player in the semiconductor industry, specializing in test and measurement technologies essential throughout the semiconductor product lifecycle, including characterization, modeling, and production testing. Based in Livermore, California, the company serves a global clientele across Asia, Europe, and North America.
In their third-quarter earnings for fiscal 2024, FormFactor reported a record revenue of $207.9 million, reflecting a growth of 5.3% from the previous quarter and a substantial increase of 21.2% year-over-year. The company attributes this strong performance to robust demand for DRAM probe cards, specifically driven by DDR5 and High Bandwidth Memory applications.
Key financial highlights for the quarter include a net income of $18.7 million on a GAAP basis and $27.2 million on a non-GAAP basis, with diluted earnings per share of $0.24 and $0.35, respectively. The company also recorded a gross margin of 40.7% on a GAAP basis and 42.2% on a non-GAAP basis. Free cash flow improved to $20 million, up from $14.2 million in the previous quarter.
Looking ahead, FormFactor anticipates some challenges, with expectations of reduced demand for Foundry and Logic products in the fourth quarter. However, it remains optimistic due to continued strong demand in the DRAM segment and contributions from its Systems Segment, which are expected to partially offset the decline. The company projects fourth-quarter revenue to be around $190 million, with a gross margin of approximately 41% on a non-GAAP basis.
