FormFactor Opens Singapore Plant

SAN JOSE, Calif. -- Seeking to cut costs amid losses, FormFactor Inc. has announced the official opening of its new wafer probe card manufacturing facility and global business center in Singapore. FormFactor (Livermore, Calif.) expects to employ approximately 300 people in its first phase of growth over the next two years. In addition to manufacturing and corporate functions, the company's system-on-a-chip (SOC) product business unit will also make its home in the new location. The new manufacturing capability is targeted to reduce product cycle times, and to diversify supply of the company's product components. Not long ago, FormFactor was a star in probe cards. More recently, the company has been hit hard by the ATE downturn. It has seen a string of losses, layoffs and management changes. There has a string of product miscues. In January, the company announced its financial results for the fourth quarter of fiscal 2009, that ended on Dec. 26. Quarterly revenues were $33.0 million, down 24.6 percent from $43.8 million in the third quarter of fiscal 2009, and down 17.3 percent from $39.9 million in the fourth quarter of fiscal 2008. Net loss for the fourth quarter of fiscal 2009 was $28.0 million or minus $0.56 per share, compared to a net loss for the third quarter of fiscal 2009 of $23.9 million or minus $0.48 per share and a net loss for the fourth quarter of fiscal 2008 of $30.0 million or minus $0.61 per share. For fiscal 2009, FormFactor posted revenue of $135.3 million, down 35.6 percent from $210.2 million in fiscal 2008. Net loss for fiscal 2009 was $155.7 million or minus $3.15 per share, compared to a net loss for fiscal 2008 of $80.6 million or minus $1.65 per share. Last year, the Delaware Bankruptcy Court has approved of FormFactor's acquisition of intellectual property (IP) rights and certain technology assets of Electroglas Inc. related to precision motion control automation.