Q1 2024 FormFactor Inc Earnings Call Transcript
Key Points
- FormFactor Inc (FORM) reported Q1 revenue near the top end of the outlook range provided in February.
- Significant sequential step-up in demand expected in Q2, primarily driven by strength in DRAM and foundry & logic probe cards.
- Recent organizational and talent changes aimed to enhance capability to develop and introduce highly differentiated products.
- Achieved doubled quarterly run rate HBM revenue levels in Q1 earlier than expected, indicating rapid acceleration of HBM capacity and output.
- Received the Intel EPIC Program Distinguished Supplier Award for 2024, marking the third consecutive year of recognition.
- Non-GAAP EPS for Q1 fell short of the midpoint due to lower-than-expected gross margins, primarily from a weaker product mix and higher warranty costs.
- Product mix in the systems segment was weaker than expected, with fewer high-complexity thermal systems shipped.
- Consolidated non-GAAP gross margins decreased due to less favorable product mix in both segments and higher-than-expected warranty expense.
- GAAP operating expenses increased due to higher stock-based compensation and transaction costs related to the sale of China operations.
- Visibility into future quarters remains limited, making it challenging to predict long-term performance accurately.
Thank you, and welcome, everyone, to FormFactor's first quarter 2024 earnings conference call. On today's call are Chief Executive Officer, Mike Slessor; and Chief Financial Officer, Shai Shahar. Before we begin, Stan Finkelstein, the company's VP of Investor Relations, will remind you of some important information.
Thank you. Today, the company will be discussing GAAP P&L results and some important non-GAAP results intended to supplement your understanding of the company's financials. Reconciliations of GAAP to non-GAAP measures and other financial information are available in the press release issued today by the company and on the Investor Relations section of our website.
Today's discussion contains forward-looking statements within the meaning of the federal securities laws. Examples of such forward-looking statements include those with respect to the projections of financial and business performance, future macroeconomic and geopolitical conditions, the benefits of acquisitions and
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