FormFactor Inc. (FORM) shares plummeted over 27% in pre-market trading on Thursday, following the company's disappointing fourth-quarter results and weak guidance for the first quarter of 2025, attributed to sluggish demand across key high-volume markets like client PCs and mobile handsets.
For the fourth quarter, FormFactor reported adjusted earnings per share of $0.27, missing analysts' expectations of $0.29. Revenue of $189.48 million also fell short of the consensus estimate of $191.12 million, representing a 12.7% year-over-year increase. The company's first-quarter guidance was even more concerning, with projected revenue of $170 million plus or minus $5 million, significantly below analysts' expectations of $192.93 million.
According to CEO Mike Slessor, FormFactor continues to face "slow demand in important high-volume markets like client PCs and mobile handsets," impacting its foundry and logic probe card sales. Additionally, the company's non-HBM DRAM probe card revenue is expected to face headwinds due to recent U.S. export controls limiting shipments of advanced node DRAM designs to China. The challenging product mix has also weighed on the company's gross margins.
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