Q2 marks Company’s first quarter of positive cash flow since Q4’07

LIVERMORE, Calif. — July 31, 2013 — FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the second quarter of fiscal 2013 that ended on June 29, 2013. Quarterly revenues were $62.7 million, up 19% from $52.6 million in the first quarter of fiscal 2013, and up 14% from $54.8 million in the second quarter of fiscal 2012.

On a GAAP basis, net loss for the second quarter of fiscal 2013 was $8.4 million or $(0.16) per fully-diluted share, compared to a net loss for the first quarter of fiscal 2013 of $19.8 million or $(0.37) per fully-diluted share, and a net loss for the second quarter of fiscal 2012 of $4.2 million or $(0.08) per fully-diluted share.

On a Non-GAAP basis, net loss for the second quarter of fiscal 2013 was $0.3 million, or $(0.01) per fully-diluted share, compared to a net loss for the first quarter of fiscal 2013 of $6.9 million or $(0.13) per fully-diluted share, and a net loss for the second quarter of fiscal 2012 of $0.5 million or $(0.01) per fully-diluted share. A reconciliation of GAAP to non-GAAP net loss and net loss per share is provided in the schedules included below.

Cash generation for the second quarter of fiscal 2013 was $1.0 million, compared to cash usage of $12.1 million for the first quarter of fiscal 2013 and cash usage of $2.6 million for the second quarter of fiscal 2012.

“Q2 marked an important step in the company’s turnaround as we generated our first quarter of positive cash flow since Q4’07,” said Tom St. Dennis, CEO of FormFactor. “Revenue in Q2 showed nice improvement over Q1 in all markets, and our overall results benefited from our continuing focus on the gross margins and operating expenses of the combined FormFactor/MicroProbe businesses.”

The company has posted its revenue breakdown by region and market segment on the Investors section of its website at www.formfactor.com. FormFactor will conduct a conference call at 1:30 p.m. PDT, or 4:30 p.m. EDT, today.

The public is invited to listen to a live webcast of FormFactor’s conference call on the Investors section of the company’s web site at www.formfactor.com. A telephone replay of the conference call will be available approximately two hours after the conclusion of the call. The telephone replay will be available through August 2, 2013, 9:00 p.m. Pacific Daylight Time, and can be accessed by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) and entering confirmation code 13038714. Additionally, the replay will be available on the Investors section of our website, www.formfactor.com.

Non-GAAP Financial Measures:
This press release highlights the company’s financial results on both a GAAP and a non-GAAP basis. The GAAP results include certain charges that are excluded from non-GAAP results. By publishing the non-GAAP measures, management intends to provide investors with additional information to further analyze the company’s performance, core results and underlying trends. FormFactor’s management evaluates results and makes operating decisions using both GAAP and non-GAAP measures included in this press release. Non-GAAP results are not prepared in accordance with GAAP, and non-GAAP information should be considered a supplement to, and not a substitute for, financial statements prepared in accordance with GAAP. Investors and potential investors are encouraged to review the reconciliation of non-GAAP financial measures to their most directly comparable GAAP measures attached to this press release.