FormFactor, Inc. Reports First Quarter Results

LIVERMORE, CA, Apr 29 (MARKET WIRE) --
FormFactor, Inc. (NASDAQ: FORM) today announced its financial results for
the first quarter of fiscal 2009, that ended on March 28, 2009. Quarterly
revenues were $27.4 million, down 31.4% from $39.9 million in the fourth
quarter of fiscal 2008, and down 58.3% from $65.7 million in the first
quarter of fiscal 2008.

Net loss for the first quarter of fiscal 2009 was $37.9 million or $(0.77)
per share, which included $3.2 million or $0.06 per share of stock-based
compensation, net of tax. This compares to net loss for the fourth quarter
of fiscal 2008 of $30.0 million or $(0.61) per share, which included $3.3
million or $0.07 per share of stock-based compensation, net of tax. Net
loss for the first quarter of fiscal 2008 was $18.0 million or $(0.37) per
share, which included $4.5 million or $0.09 per share of stock-based
compensation, net of tax. The first quarter of fiscal 2009 results include
$7.7 million in pre-tax restructuring charges as well as a $5.2 million
pre-tax provision for bad debts. The fourth quarter of fiscal 2008 results
included $4.9 million in pre-tax non-cash restructuring and asset
impairment charges as well as a $4.1 million pre-tax provision for bad
debts. The first quarter of fiscal 2008 results included $5.3 million in
pre-tax restructuring charges.

"The global economic slowdown continues to limit demand for all
semiconductor devices," said Mario Ruscev, CEO of FormFactor. "In this
challenging environment, we are leveraging our resources to improve our
position in our core markets, and qualifying our next-generation wafer
probe solutions to lower our customers' test costs. We are confident that
these efforts will pay off when market conditions improve."

The company has posted its revenue breakdown by region and market segment
on the Investors section of its website at www.formfactor.com. FormFactor
will conduct a conference call at 1:30 p.m. PDT, or 4:30 p.m. EDT, today.
The public is invited to listen to a live web cast of FormFactor's
conference call on the Investors section of the company's website at
www.formfactor.com. An audio replay of the conference call will also be
made available approximately two hours after the conclusion of the call.
The audio replay will remain available until May 1st, 2009 at 9:00 p.m.
PDT and can be accessed by dialing 888-203-1112 or 719-457-0820 and
entering confirmation code 3456119.

About FormFactor:

Founded in 1993, FormFactor, Inc. (NASDAQ: FORM) is the leader in advanced
wafer probe cards, which are used by semiconductor manufacturers to
electrically test integrated circuits, or ICs. The company's wafer sort,
burn-in and device performance testing products move IC testing upstream
from post-packaging to the wafer level, enabling semiconductor
manufacturers to lower their overall production costs, improve yields, and
bring next-generation devices to market. FormFactor is headquartered in
Livermore, California with operations in Europe, Asia and North America.
For more information, visit the company's website at www.formfactor.com.

FormFactor and the FormFactor logo are registered trademarks of
FormFactor, Inc. All other product, trademark, company or service names
mentioned herein are the property of their respective owners.

Forward-looking Statements

Statements in this press release that are not strictly historical in
nature are forward-looking statements within the meaning of the federal
securities laws, including statements regarding business momentum, demand
for our products and future growth. These forward-looking statements are
based on current information and expectations that are inherently subject
to change and involve a number of risks and uncertainties. Actual events
or results might differ materially from those in any forward-looking
statement due to various factors, including, but not limited to: changes
in the market environment, including the demand for certain semiconductor
devices, such as DRAM and Flash memory devices; the company's ability to
leverage its resources to improve its positions in its core markets; the
company's ability to respond to market conditions as they change; and the
company's ability to timely deliver and qualify new products that meet
its customers' testing requirements and lower their overall cost of test.
Additional information concerning factors that could cause actual events
or results to differ materially from those in any forward-looking
statement is contained in the company's Form 10-K for the fiscal period
ended December 27, 2008 as filed with the Securities and Exchange
Commission ("SEC"), and subsequent SEC filings. Copies of the company's
SEC filings are available at http://investors.formfactor.com/edgar.cfm.
The company assumes no obligation to update the information in this press
release, to revise any forward-looking statements or to update the
reasons actual results could differ materially from those anticipated in
forward-looking statements.

FORM-F

FORMFACTOR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)

Three Months Ended
-------------------------
March 28, March 29,
2009 2008
----------- -----------

Revenues $ 27,369 $ 65,703
Cost of revenues 31,048 53,131
----------- -----------
Gross profit (loss) (3,679) 12,572
----------- -----------
Operating expenses:
Research and development 14,110 16,388
Selling, general and administrative 26,310 22,658
Restructuring charges 7,679 5,320
----------- -----------
Total operating expenses 48,099 44,366
----------- -----------
Operating loss (51,778) (31,794)

Interest income, net 1,115 4,875
Other income (expense), net (416) 793
----------- -----------
Loss before income taxes (51,079) (26,126)
Benefit from income taxes 13,136 8,165
----------- -----------
Net loss $ (37,943) $ (17,961)
=========== ===========
Net loss per share:

Basic $ (0.77) $ (0.37)
=========== ===========
Diluted $ (0.77) $ (0.37)
=========== ===========
Weighted-average number of shares used in per
share calculations:

Basic 49,201 48,743
=========== ===========
Diluted 49,201 48,743
=========== ===========

FORMFACTOR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
(Unaudited)

March 28, December 27,
2009 2008
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 190,855 $ 337,926
Marketable securities 327,800 184,968
Accounts receivable, net 24,899 34,127
Inventories 19,796 18,788
Deferred tax assets 22,862 23,039
Refundable income taxes 10,328 29,413
Prepaid expenses and other current assets 11,933 14,702
------------ ------------
Total current assets 608,473 642,963

Restricted cash 680 680
Property and equipment, net 107,482 113,813
Deferred tax assets 24,972 20,580
Other assets 1,214 7,674
------------ ------------
Total assets $ 742,821 $ 785,710
============ ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 27,339 $ 33,214
Accrued liabilities 18,368 25,693
Income taxes payable 349 1,904
Deferred revenue 8,901 4,946
Deferred rent 453 452
------------ ------------
Total current liabilities 55,410 66,209
Long-term income taxes payable 8,429 7,732
Deferred rent and other liabilities 5,478 5,705
------------ ------------
Total liabilities 69,317 79,646
------------ ------------
Stockholders' equity
Common stock, $0.001 par value 49 49
Additional paid-in capital 608,748 602,295
Accumulated other comprehensive income 851 1,922
Retained earnings 63,856 101,798
------------ ------------
Total stockholders' equity 673,504 706,064
------------ ------------
Total liabilities and stockholders' equity $ 742,821 $ 785,710
============ ============

Investor Contact:
Michael Magaro
Investor Relations
(925) 290-4321
Email Contact

Trade Press Contact:
David Viera
Director of Corporate Communications
(925) 290-4681
Email Contact

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