We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
FormFactor (FORM - Free Report) reported fourth-quarter 2021 adjusted earnings of 44 cents per share, which surpassed the Zacks Consensus Estimate by 7.3%. Also, the bottom line increased 10% on a sequential basis and came in line with the year-ago reported figure.
Revenues increased 4% year over year and 7.9% from the third quarter to $205 million. Further, the figure surpassed the Zacks Consensus Estimate by 3.5%.
The year-over-year growth in the top line was driven by strong demand for DRAM, Flash and Systems. Further, the launch of cryogenic testing as a service for quantum applications remained a tailwind.
Yet, weak momentum in the foundry and logic market remained a concern.
FormFactor, Inc. Price, Consensus and EPS Surprise
Probe card: Revenues from this segment were $165.9 million for the fourth quarter, up 7.1% sequentially and 2.1% year over year.
Foundry & Logic (accounting for 55.6% of revenues) revenues were $114 million, down 7% year over year but up 8.9% sequentially.
Revenues for DRAM products (19.7% of revenues) were $40.3 million, reflecting an increase of 16.5% year over year and 1.3% sequentially.
Flash revenues (5.7% of revenues) were $11.6 million, up 123.1% from the year-ago period and 11.5% from the third quarter.
Systems: Revenues from this segment were $39.1 million (19.1% of revenues), up 11.4% sequentially and 13.3% year over year.
Regional Details
Revenues generated from Taiwan (accounting for 23% of revenues), China (18%), Europe (5%), and the rest of the world (1%) were $46.9 million, $37.6 million, $11.2 million and $1.4 million, respectively. The respective revenues decreased 4.3%, 30.4%, 16.4% and 58.8% year over year.
Then again, revenues generated from South Korea (19%), the United States (17%), Asia Pacific (12%) and Japan (4%) were $39.2 million, $34.5 million, $25.4 million and $8.8 million, respectively. The respective revenues were up 39%, 10.2%, 161.9% and 10% year over year.
Operating Results
On a non-GAAP basis, gross margin expanded 90 basis points (bps) year over year to 44.3%. Also, the Probe card segment’s gross margin was 44.1%, expanding 20 bps year over year. The Systems segment’s gross margin was 45.5%, expanding 440 bps year over year.
Non-GAAP operating expenses increased 3.3% year over year to $49.7 million. As a percentage of total fourth-quarter revenues, the metric contracted 17 bps year over year to 24.2%.
Non-GAAP operating income was $41.2 million, up 9.7% year over year. As a percentage of revenues, it expanded 103 bps year over year to 20.1%.
Balance Sheet & Cash Flow
As of Dec 25, 2021, cash & cash equivalents and marketable securities were $276.1 million compared with $264.7 million on Sep 25, 2021.
Further, cash generated from operating activities was $38.9 million for the reported quarter, up from $34.3 million in the previous quarter.
Capital expenditure was $15.1 million, down from $20 million in the third quarter.
Further, free cash flow was $23.9 million for the fourth quarter, up from $14.4 million in the third quarter.
Guidance
FormFactor expects first-quarter 2022 revenues between $188 million and $200 million. The Zacks Consensus Estimate for revenues is currently pegged at $200.1 million.
The company expects a seasonal decline in Foundry and Logic revenues and a moderate decrease in DRAM revenues.
Further, management expects non-GAAP gross margin between 44% and 47%.
On a non-GAAP basis, it projects earnings in the band of 35-43 cents per share. The consensus mark for earnings is pegged at 43 cents per share.
Bruker is scheduled to release fourth-quarter 2021 results on Feb 15.It has gained 19.6% over a year. The long-term earnings growth rate for BRKR is currently projected at 20.6%.
Intuit is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 43.2% over a year. The long-term earnings growth rate for INTU is currently projected at 15.7%.
Zscaler is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 20.5% over a year. The long-term earnings growth rate for ZS is currently projected at 37.1%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
FormFactor (FORM) Q4 Earnings Beat, Revenues Increase Y/Y
FormFactor (FORM - Free Report) reported fourth-quarter 2021 adjusted earnings of 44 cents per share, which surpassed the Zacks Consensus Estimate by 7.3%. Also, the bottom line increased 10% on a sequential basis and came in line with the year-ago reported figure.
Revenues increased 4% year over year and 7.9% from the third quarter to $205 million. Further, the figure surpassed the Zacks Consensus Estimate by 3.5%.
The year-over-year growth in the top line was driven by strong demand for DRAM, Flash and Systems. Further, the launch of cryogenic testing as a service for quantum applications remained a tailwind.
Yet, weak momentum in the foundry and logic market remained a concern.
FormFactor, Inc. Price, Consensus and EPS Surprise
FormFactor, Inc. price-consensus-eps-surprise-chart | FormFactor, Inc. Quote
Segments in Detail
Probe card: Revenues from this segment were $165.9 million for the fourth quarter, up 7.1% sequentially and 2.1% year over year.
Foundry & Logic (accounting for 55.6% of revenues) revenues were $114 million, down 7% year over year but up 8.9% sequentially.
Revenues for DRAM products (19.7% of revenues) were $40.3 million, reflecting an increase of 16.5% year over year and 1.3% sequentially.
Flash revenues (5.7% of revenues) were $11.6 million, up 123.1% from the year-ago period and 11.5% from the third quarter.
Systems: Revenues from this segment were $39.1 million (19.1% of revenues), up 11.4% sequentially and 13.3% year over year.
Regional Details
Revenues generated from Taiwan (accounting for 23% of revenues), China (18%), Europe (5%), and the rest of the world (1%) were $46.9 million, $37.6 million, $11.2 million and $1.4 million, respectively. The respective revenues decreased 4.3%, 30.4%, 16.4% and 58.8% year over year.
Then again, revenues generated from South Korea (19%), the United States (17%), Asia Pacific (12%) and Japan (4%) were $39.2 million, $34.5 million, $25.4 million and $8.8 million, respectively. The respective revenues were up 39%, 10.2%, 161.9% and 10% year over year.
Operating Results
On a non-GAAP basis, gross margin expanded 90 basis points (bps) year over year to 44.3%. Also, the Probe card segment’s gross margin was 44.1%, expanding 20 bps year over year. The Systems segment’s gross margin was 45.5%, expanding 440 bps year over year.
Non-GAAP operating expenses increased 3.3% year over year to $49.7 million. As a percentage of total fourth-quarter revenues, the metric contracted 17 bps year over year to 24.2%.
Non-GAAP operating income was $41.2 million, up 9.7% year over year. As a percentage of revenues, it expanded 103 bps year over year to 20.1%.
Balance Sheet & Cash Flow
As of Dec 25, 2021, cash & cash equivalents and marketable securities were $276.1 million compared with $264.7 million on Sep 25, 2021.
Further, cash generated from operating activities was $38.9 million for the reported quarter, up from $34.3 million in the previous quarter.
Capital expenditure was $15.1 million, down from $20 million in the third quarter.
Further, free cash flow was $23.9 million for the fourth quarter, up from $14.4 million in the third quarter.
Guidance
FormFactor expects first-quarter 2022 revenues between $188 million and $200 million. The Zacks Consensus Estimate for revenues is currently pegged at $200.1 million.
The company expects a seasonal decline in Foundry and Logic revenues and a moderate decrease in DRAM revenues.
Further, management expects non-GAAP gross margin between 44% and 47%.
On a non-GAAP basis, it projects earnings in the band of 35-43 cents per share. The consensus mark for earnings is pegged at 43 cents per share.
Zacks Rank & Stocks to Consider
Currently, FormFactor has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector include Bruker (BRKR - Free Report) , Intuit (INTU - Free Report) and Zscaler (ZS - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bruker is scheduled to release fourth-quarter 2021 results on Feb 15.It has gained 19.6% over a year. The long-term earnings growth rate for BRKR is currently projected at 20.6%.
Intuit is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 43.2% over a year. The long-term earnings growth rate for INTU is currently projected at 15.7%.
Zscaler is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 20.5% over a year. The long-term earnings growth rate for ZS is currently projected at 37.1%.