FormFactor, Inc. reported a fiscal year 2024 net income of $69.6 million, a decrease from $82.4 million in fiscal 2023, primarily due to a reduced gain from the sale of its China operations, which generated a pre-tax gain of $20.3 million. Total revenues for the year reached $763.6 million, reflecting a 15.2% increase from $663.1 million in the previous year. The growth was driven by a significant rise in demand for high bandwidth memory (HBM) chips, particularly for generative artificial intelligence applications, and the ramp-up of new mobile application processor designs. However, the Systems segment experienced a decline in revenue due to the absence of metrology system sales following the sale of the FRT Metrology business in the fourth quarter of fiscal 2023.
In terms of operational metrics, FormFactor's Probe Cards segment generated $626.0 million in revenue, up from $497.9 million in fiscal 2023, with DRAM sales nearly doubling to $227.4 million, accounting for 29.8% of total revenues. The company also noted a shift in geographic revenue, with South Korea contributing 24.2% of total revenues, driven by increased demand for DRAM probe card products. The company’s workforce stood at 2,238 employees as of December 28, 2024, with a significant presence in North America, Asia, and Europe.
Strategically, FormFactor completed the sale of its China operations in February 2024, receiving $21.4 million in net consideration. This transaction included an exclusive distribution agreement to continue supporting its products in the region. Additionally, the company announced an acquisition of a 20% equity interest in FICT Limited, a provider of semiconductor test and high-performance computing technologies, for $59.6 million. These moves are part of FormFactor's ongoing strategy to enhance its market position and expand its technological capabilities.
The company’s gross profit margin improved to 40.3% in fiscal 2024 from 39.0% in the previous year, attributed to better cost absorption on higher production volumes, despite an unfavorable product mix. Research and development expenses increased to $121.9 million, representing 16.0% of revenues, as the company continued to invest in innovation to meet evolving customer needs. Looking ahead, FormFactor anticipates continued growth driven by advancements in semiconductor technology and increased demand for its products, although it remains cautious about potential market fluctuations and geopolitical challenges that could impact its operations.
About FORMFACTOR INC
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