Q2 2024 FormFactor Inc Earnings Call Transcript
Key Points
- FormFactor Inc (FORM) exceeded the midpoint of its revenue, non-GAAP gross margin, and non-GAAP EPS outlook for Q2 2024.
- DRAM probe-card revenue reached record levels, with high-bandwidth memory (HBM) revenue doubling for the third consecutive quarter.
- The company's diversification strategy across foundry and logic, DRAM, and Flash probe-cards, along with Systems segment products, provides stable results and growth.
- FormFactor Inc (FORM) is well-positioned in expanding areas like high-bandwidth memory, DRAM probe-cards, and co-packaged silicon photonics.
- Non-GAAP operating income for Q2 more than doubled to $28.5 million from $13 million in Q1, demonstrating strong leverage in the operating model.
- FormFactor Inc (FORM) expects a shift in DRAM product mix with a reduction in HBM shipments in Q3, which could impact revenue.
- The company operates with lead times of less than a quarter, limiting its visibility into future demand.
- Non-GAAP gross margin for Q3 is expected to decrease due to a less favorable product mix, with higher DRAM revenue and lower HBM revenue.
- GAAP operating expenses increased to $69.4 million in Q2 from $61.7 million in Q1, impacting overall profitability.
- The geopolitical and regulatory environment, including US-China trade restrictions, poses ongoing risks to the company's operations and supply chain.
Thank you, and welcome, everyone, to FormFactor's second-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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