FormFactor Inc (NASDAQ:FORM) shares are diving in extended trading Wednesday after the company reported fourth-quarter financial results that came up short of analyst expectations.
Total revenue was up 12.7% on a year-over-year basis. FormFactor said High Bandwidth Memory grew fourfold in fiscal 2024 compared to the prior year, driven by adoption of generative AI. DRAM probe-card revenue continued to climb in the quarter, reaching record levels for the third straight quarter.
“As expected, FormFactor reported sequentially lower fourth-quarter revenue, gross margin, and non-GAAP earnings per share, driven by the forecasted reduction in Foundry & Logic probe-card revenue,” said Mike Slessor, CEO of FormFactor. “This was partially offset by growth in DRAM probe-card revenue, with HBM increasing to approximately half of DRAM revenue.”
FormFactor also announced that the company and MBK Partners are acquiring FICT Limited from Advantage Partners. FormFactor will invest $60 million and receive a 20% minority stake and a seat on the company’s board.
“FormFactor’s investment in FICT builds on our long-term collaboration with them as a supplier of the industry-leading, high-performance components we use in our advanced probe cards, and provides a platform for accelerated development of tomorrow’s test and packaging consumables,” Slessor added.
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Outlook: FormFactor expects first-quarter revenue to be in the range of $165 million to $175 million versus estimates of $195.81 million. The company anticipates first-quarter adjusted earnings of 3 cents to 11 cents per share, versus estimates of 33 cents per share.
FormFactor noted it has continued to see “slow demand” in high-volume markets like client PCs and mobile handsets in the first quarter. Despite the slowing demand, the company anticipates an overall demand increase for its products throughout 2025.
FORM Price Action: FormFactor shares were down 22.81% after hours, trading at $31.74 at the time of publication Wednesday, according to Benzinga Pro.
This illustration was generated using AI from MidJourney.
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