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Mar 29, 2025
Formfactor Q1 2025 Earnings Report
Reported sequential decrease in revenue and profitability due to reduced demand for DRAM probe cards and Systems, and announced a $75 million stock repurchase authorization
Key Takeaways
FormFactor reported a decrease in revenue and profitability in the first quarter of 2025 compared to the previous quarter and the same quarter last year. This was primarily attributed to lower demand for DRAM probe cards and Systems, partially impacted by export controls to China. Despite the sequential decline, the company's revenue and EPS were above the mid-point of their outlook range.
Quarterly revenues were $171.4 million, a decrease of 9.6% sequentially and an increase of 1.6% year-over-year.
GAAP net income was $6.4 million, or $0.08 per diluted share.
Non-GAAP net income was $18.0 million, or $0.23 per diluted share.
The Board of Directors authorized a new $75 million stock repurchase plan.
Forward Guidance
For the second quarter ending June 28, 2025, FormFactor expects to deliver double-digit sequential revenue growth with increases across all major served markets and segments, although the outlook is tempered by uncertainty from the current tariff situation.
Positive Outlook
- Expected double-digit sequential revenue growth.
- Anticipated revenue increase across all major served markets and segments.
- Non-GAAP Gross Margin expected to improve to 40% +/- 1.5%.
- Non-GAAP net income per diluted share expected to increase to $0.30 +/- $0.04.
- Confidence in longer-term growth prospects driven by Advanced Packaging, High-Bandwidth-Memory, and Co-Packaged Optics.
Challenges Ahead
- Sequential growth outlook tempered by uncertainty from the current tariff situation.
- GAAP Gross Margin expected to be 38.5% +/- 1.5%.
- GAAP net income per diluted share expected to be $0.18 +/- $0.04.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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