FormFactor Reports Q1 Fiscal 2025 Revenue Growth to $171.4M, Net Income Declines

FormFactor, Inc. reported its financial results for the first quarter of fiscal 2025, revealing revenues of $171.4 million, a 1.6% increase from $168.7 million in the same period last year. The company’s net income, however, decreased significantly to $6.4 million, down from $21.8 million in the prior year, primarily due to a one-time gain of $20.3 million recognized in the first quarter of fiscal 2024 from the sale of its China operations. This decline in profitability was also reflected in the net income per share, which remained at $0.08 for both basic and diluted shares, compared to $0.28 in the previous year.

In terms of operational performance, FormFactor's gross profit increased to $64.5 million, up from $62.7 million, resulting in a gross margin of 37.7%, compared to 37.2% in the prior year. The increase in gross profit was attributed to a favorable product mix and higher production volumes, despite rising manufacturing costs. The company’s operating expenses slightly decreased to $61.3 million from $61.7 million, with research and development expenses totaling $27.8 million, down from $28.6 million, reflecting lower project material costs.

FormFactor's strategic developments included a significant equity investment of $67.2 million in FICT Limited, a semiconductor test and high-performance computing provider, which was completed in February 2025. This investment is expected to enhance FormFactor's capabilities in the semiconductor industry. Additionally, the company continued its stock repurchase program, buying back 665,000 shares for $22.1 million during the quarter, as part of a broader initiative to offset potential dilution from stock-based compensation.

Geographically, FormFactor saw varied performance, with revenues from Taiwan increasing to $45.4 million, representing 26.5% of total revenues, while sales in South Korea decreased to $43.2 million. The company reported a notable increase in demand for its DRAM products, particularly those used in generative artificial intelligence applications, which contributed to a 6.5% rise in DRAM revenue. However, revenue from the Flash segment declined by 40.8% due to decreased customer production activity.

Looking ahead, FormFactor anticipates continued growth driven by demand for its semiconductor testing solutions, particularly in the DRAM and Systems segments. The company remains focused on optimizing its product offerings and expanding its market presence, while also managing costs effectively to enhance profitability. The outlook for the remainder of fiscal 2025 suggests cautious optimism, contingent on market conditions and customer demand trends.