FormFactor Inc. (NASDAQ:FORM) Q1 2018 Earnings Conference Call - Preliminary Transcript

May 02, 2018 • 04:30 am ET

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FormFactor Inc. (NASDAQ:FORM) Q1 2018 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the FormFactor Inc. First Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow given at that time. (Operator Instructions) As a reminder, today's conference is being recorded.

I would like to introduce your host for today's conference Mr. Jason Cohen, Company's General Counsel. Sir, please go ahead.

Executive
Jason Cohen

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 releases 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 conditions, foreign exchange rates, business momentum, business seasonality, the anticipated demand for products; customer requirements; our future ability to produce and sell products; the development of future products and technologies; and the assumptions upon which such statements are based.

These statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed during this call.

Information on risk factors and uncertainties is contained in our most recent filing on Form 10-K with the SEC for the fiscal year ended 2017 and our other SEC filings, which are available on the SEC's website at www.sec.gov and in our press release issued today. Forward-looking statements are made as of today, May 2, 2018, and we assume no obligation to update them.

With that, we will now turn the call over to FormFactor's CEO, Mike Slessor.

Executive
Mike Slessor

Thanks, Jason, and thank you, everyone, for joining us today. The first quarter of 2018 demonstrated the benefits of FormFactor's opportunity set as a diversified leader in electrical test and measurement. As anticipated, revenues from our largest customer were at their lowest levels since 2016, but we continued to capitalize on our line-of-sight opportunities in advanced packaging, mobile data and automotive applications, enabling us to deliver revenue and non-GAAP earnings per share at the top end of our outlook.

Highlights were solid probe card demand in both Foundry and Logic and DRAM markets, driven by growth in advanced packaging applications and a robust memory investment environment. Momentum also continued in our engineering systems business, driven by multiple applications in regions in what is typically the seasonally weakest quarter of the year. These drivers are continuing in the second quarter, augmented by a forecasted sequential increase in demand from our largest customer.

For 2018 overall, we continue to expect and plan for revenue growth as we progress through the year. Our revenue trajectory will depend on three key factors, namely: recovery and production probe card demand from our largest customer, further adoption of our technologies and advanced packaging applications at the