FormFactor Plunges 10% On Poor Guidance

Shares of

were trading lower by more than 10 percent on Wednesday after the company

to its first quarter earnings. FormFactor said that it expects to lose between $0.12 and $0.10 per share in the first quarter on revenue of $53 million to $54 million. Wall Street analysts were expecting the company to earn $0.05 per share on revenue of $68 million. FormFactor cited 2 factors in its disappointing outlook. First, the company noted it increased capacity in the quarter at a rater slower than originally expected to meet a doubling in demand for SoC probe cards by a key customer. Second, the company stated that it experienced push-outs of DRAM probe card delivers by some of its customers. "With the strong demand acceleration for the company's SoC probe cards, and the gradual increase in DRAM new-design activity, we remain confident that we will grow annual revenues for the fourth consecutive year," commented Mike Slessor, FormFactor's Chief Executive Officer.