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In a recent filing with the Securities and Exchange Commission, FormFactor Inc. (NASDAQ:FORM) disclosed that its CEO, Mike Slessor, sold shares of the company on January 2, 2025. The transactions involved a total of 4,000 shares of common stock, with sales prices ranging from $44.38 to $45.01 per share. The aggregate value of these sales amounted to $177,772. The stock has experienced significant pressure, declining about 27% over the past six months, though it maintains strong fundamentals with a healthy current ratio of 4.76 and profitable operations.
These transactions were executed automatically under a Rule 10b5-1 trading plan, which Slessor had adopted on November 20, 2023. Following the sales, Slessor holds 522,531 shares of FormFactor. According to InvestingPro analysis, the company appears fairly valued, with 8 analysts recently revising earnings expectations downward. Discover more insights and 10 additional ProTips for FormFactor in the comprehensive Pro Research Report.
In other recent news, FormFactor, a semiconductor test equipment supplier, reported record Q3 revenue of $207.9 million, marking a 5.3% sequential increase and a 21.2% rise from the previous year. The company's non-GAAP earnings per share reached the top end of expectations, reflecting its strong revenue performance. Despite this robust growth, FormFactor anticipates a dip in Foundry and Logic probe-card demand, while expecting DRAM probe-card revenue to continue to grow in Q4, particularly with initial HBM4 designs.
FormFactor's operating expenses decreased to $59.3 million, contributing to stable operating income figures. The company also reported an increase in free cash flow to $20 million, with cash and investments totaling $360 million. Looking ahead, FormFactor projects Q4 revenue at $190 million, with a non-GAAP gross margin of 41%. The company is also implementing a share buyback program with $36.6 million remaining under its current authorization.
As part of its future strategy, FormFactor plans to focus on diversification in Foundry and Logic to offset weak demand in mobile and client PC markets. The company is also preparing for growth opportunities in co-packaged optics, with volume production projected to start in late 2025 to early 2026. These are the recent developments in the company's business operations and strategy.
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