FormFactor to See Temporary Q1 2025 Weakness, Rebound Expected by Q2 2025

Semiconductor testing company FormFactor (NASDAQ: FORM) reported fourth-quarter revenue of $189.5 million, a -8.9% decline from the previous quarter but a +12.7% rise from a year earlier. Full-year revenue for 2024 reached $764 million, marking a +15.2% increase, a bounce back from two consecutive years of revenue declines.

The company’s DRAM segment remained a bright spot, with revenue climbing +5% sequentially and +76% year-over-year to $63 million, fueled by demand for high-bandwidth memory (HBM) amid the AI boom. However, sales from its foundry/logic probe card business—a key revenue driver—declined notably, due to weakness in the PC and smartphone markets affecting probe card demand.

The outlook for the first quarter of 2025 remains mixed. Foundry logic revenues are projected to slip further to $82.7 million from $83.3 million in Q4 2024, based on Visible Alpha consensus estimates. As for the DRAM segment, while the HBM sub-segment within DRAM is expected to see a marginal -0.2% sequential decline, non-HBM DRAM revenue is expected to drop sharply by -35% from the prior quarter. Overall, first-quarter revenue is forecast at $170 million, representing a -10% decline from Q4 2024 but a modest +1% increase year on year. Analysts expect the headwinds to be near-term as projections indicate a bounce back across segments starting Q2 2025.