FormFactor (FORM) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue reached $764 million, up 15.2% year-over-year, driven by strong HBM probe card growth and advanced packaging market expansion, while Q4 2024 revenue was $189.5 million, down 8.9% sequentially but up 12.7% year-over-year.

• Q4 2024 saw sequential declines in revenue, gross margin, and non-GAAP EPS, mainly due to lower foundry and logic probe card sales, partially offset by record DRAM probe card revenue for the third consecutive quarter.

• Announced acquisition of a 20% minority stake in FICT Limited, a key supplier for advanced probe card components, with a $60 million investment, and expanded partnerships with Advantest.

Financial highlights

• Q4 2024 GAAP net income was $9.7 million ($0.12 per share); non-GAAP net income was $21.3 million ($0.27 per share); fiscal 2024 non-GAAP net income was $90.2 million ($1.15 per share), up from $56.8 million in 2023.

• Q4 2024 GAAP gross margin was 38.8%, non-GAAP gross margin was 40.2%; fiscal 2024 GAAP gross margin was 40.3%, non-GAAP gross margin was 41.7%.

• Q4 2024 free cash flow was $28.8 million; fiscal 2024 free cash flow was $82.8 million, up from $11.4 million in 2023.

• Cash and investments at year-end 2024 totaled $367 million; cash and cash equivalents were $190.7 million; total assets $1.15 billion; stockholders' equity $947.8 million.

• Fiscal 2024 capital expenditures were $38.4 million; repurchased $19.8 million of common stock in 2024.

Outlook and guidance

• Q1 2025 revenue expected at $170 million ±$5 million; GAAP gross margin projected at 36.5% ±1.5%; non-GAAP gross margin at 38% ±1.5%; non-GAAP EPS expected at $0.19 ±$0.04.

• Anticipates continued slow demand in client PCs and mobile handsets in Q1 2025, with sequential reductions in non-HBM DRAM probe cards and Systems; expects overall demand to increase through 2025, driven by HBM4 ramp, PC recovery, and new customer qualifications.