Formfactor, Inc. · NASDAQ:FORM
Formfactor — Investor Presentation (January 2017)
15 slides from Formfactor's investor presentation, January 2017
Slide 1: January 2017 Investor Presentation
JANUARY 2017 INVESTOR PRESENTATION TRANSITIONING FROM SEMICONDUCTOR TEST SUPPLIER TO BROADER TEST AND MEASUREMENT MARKET LEADER ©2017 FormFactor Inc.
Slide 2: Cautions Regarding Forward-Looking Statements
CAUTIONS REGARDING FORWARD-LOOKING STATEMENTS Forward-Looking Statements This communication contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations
Slide 3: Investment Themes
INVESTMENT THEMES Largest supplier of Aligned with Technology Structurally Cascade semiconductor technology leadership profitable financial Microtech probe cards and trends in mobility, enables model delivering acquisition engineering connectivity and customers’ most earnings growth provides scale &
Slide 4: Aligned with Technology Trends in Mobility, Connectivity and Enterprise Infrastructure
ALIGNED WITH TECHNOLOGY TRENDS IN MOBILITY, CONNECTIVITY AND ENTERPRISE INFRASTRUCTURE Mobility Connectivity Enterprise • Application • Modems • High Performance Processors • Near Field MPU • Mobile DRAM Communication • Server DRAM • NAND Flash • Filters (BAW & SAW) • NAND Flash • Sensors ~ 6% Growt
Slide 5: Our Footprint in the Device Life Cycle
OUR FOOTPRINT IN THE DEVICE LIFE CYCLE Engineering/ Development First Silicon Ramp Production YIELD TIME EXTENDING THROUGH THE COMPLETE CUSTOMER PRODUCT LIFE CYCLE 5 ©2017 FormFactor Inc.
Slide 6: We Enable Customers' Most Critical Roadmap Advancements
WE ENABLE CUSTOMERS’ MOST CRITICAL ROADMAP ADVANCEMENTS Foundry & Logic DRAM Flash Continued adoption of Continued growth in Growth in industry Cu Pillar at foundry mobile and server NAND capacity and customers Transition to ≤20nm wafer starts Transition to 10nm node Bit growth at 35-40% node per ye
Slide 7: Expanding Our Addressable Market in Sectors Experiencing Above-Market Growth
EXPANDING OUR ADDRESSABLE MARKET IN SECTORS EXPERIENCING ABOVE-MARKET GROWTH 37% 2015 25% PRO FORMA 2015 6% 25% Foundry & Logic: $552M Foundry & Logic: $552M DRAM: $318M DRAM: $318M Flash: $196M Flash: $196M Eng Systems: $310M TOTAL: TOTAL: $1.1B $1.4B 6% 39% 39% ADDRESSABLE MARKETS FO
Slide 8: Diversifying and Expanding Market Presence and Customer Base
DIVERSIFYING AND EXPANDING MARKET PRESENCE AND CUSTOMER BASE END MARKET Production Engineering Production Engineering 97% Revenue 3% Revenue 75% Revenue 25% Revenue CUSTOMER Top 10 Customers Other Customers Top 10 Customers Other Customers CONCENTRATION 83% Revenue 17% Revenue 62% Revenue 38% Revenu
Slide 9: Expanding Scale and Providing Significant Accretion
EXPANDING SCALE AND PROVIDING SIGNIFICANT ACCRETION 450 45% $ in Millions 400 40% FINANCIALLY 350 35% TRANSFORMATIONAL 300 30% TRANSACTION 250 25% 200 20% 150 15% 100 10% 50 5% - 0% DRIVING (50) -5% IMPROVED FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 GROSS MARGINS Actual Pro Forma AND Non-GAAP $(1.06)
Slide 10: Integration Update
INTEGRATION UPDATE • Committed to delivering annual synergies of $10-$12M in 18 to 24 months • $1.3M savings delivered in 3rd Quarter 2016 with $1.3M to $1.5M expected to capture in 4th Quarter 2016 • Unified sales and service team for single voice to customers • Conservative approach to operations
Slide 11: Recent Results and Outlook
RECENT RESULTS AND OUTLOOK Revenue Gross Margin Diluted Cash Flow ($M) (%)** EPS** ($M)*** Q3 2016 ACTUAL $123.6M 42.9% $0.22 $16.0M Q4 2016 GUIDANCE* $116M-$124M 41%-45% $0.15-$0.21 $11M-$13M 4TH QUARTER 2016 GUIDANCE THEMES*: EXPECT THE PROBE CARD SEGMENT DEMAND NORMALIZATION SYSTEMS SEGMENT DEMAN
Slide 12: Strategic Focus Areas
STRATEGIC FOCUS AREAS Leadership in Enter adjacent Profitability core markers markets Continue share gains along Diversify revenue stream and Drive greater operating “line of sight” components customer mix by leading efficiency by gaining in Foundry & Logic, DRAM, M&A in test, measurement, economies
Slide 13: Appendix
APPENDIX 13 ©2017 FormFactor Inc.
Slide 14: Pro Forma 2015 Reconciliation
PRO FORMA 2015 RECONCILIATION (All am ounts in 000's 2015 except per share am ounts) GAAP Adjustm ents Non-GAAP GAAP Adjustm ents Non-GAAP Deal (2) Non-GAAP Stock-based Am ort. Of Cascade Stock-based Am ort. Of Cascade Adjustm ents Pro form a Form Factor Com pensation Intangibles Other (1) Form Fact
Slide 15: 2015 EBITDA Reconciliation
2015 EBITDA RECONCILIATION Fiscal Year 2015 (Amounts in $000's) Cascade Deal (1) FormFactor Microtech Adjustments Consolidated EBITDA GAAP Income from operations $ (4,103) $ 17,891 $ 7,000 $ 20,788 Adjustments: Depreciation 10,261 3,109 - 13,370 Amortization of intangibles 13,509 2,458 - 15,967 Stoc