FormFactor Inc. (NASDAQ:FORM) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 04:30 pm ET

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FormFactor Inc. (NASDAQ:FORM) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Thank you and welcome everyone to FormFactor's Second Quarter 2020 Earnings Conference Call. On today's call are Chief Executive Officer, Mike Slessor; and Chief Financial Officer, Shai Shahar. Before we begin, Jason Cohen, the company's General Counsel will remind you of important information.

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 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 conditions, the benefits of acquisitions and investments, the impacts of the COVID-19 pandemic, the impacts of regulatory changes, the anticipated demand for products, our future ability to produce and sell products, the development of future products and technologies and the assumptions upon which these 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 2019 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, July 30, 2020, and we assume no obligation to update them. Also as an aside, since this is an entirely remote earnings call for us, please bear with us on any audio delays or issues.

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. FormFactor delivered second quarter results that were near carbon copy of our first quarter, again validating our target financial model. These results were a testament to the dedication, resilience and commitment of our worldwide team, and I'd like to start our call by recognizing and thanking our 2,000 plus employees for their contributions to this impressive performance.

Although the top level financial results are similar, the underlying path to achieving the second quarter was very different than the first quarter. During the second quarter, we experienced no significant shutdowns or disruptions in our internal operations and external supply chain, allowing us to steadily increase factory output in a safety focused and socially distance manufacturing environment. This enabled us to exceed the outlook we provided on May 6, and deliver revenue of $158 million, only $3 million less than the first quarter.

In our Foundry and Logic probe card business, we again experienced strong demand from multiple customers that continues into the current quarter. This demand strength is coming from several end market drivers including acceleration of 5G handset pilot production as well as continued work from home infrastructure