Thomas St. Dennis
Thank you for joining us this morning. FormFactor’s second quarter revenue is developing to being stronger than we first anticipated. We are seeing strengths across the DRAM and Flash Memory segments. Historically, the second and third calendar quarters are generally the strongest quarters for FormFactor, with the fourth quarter and first quarter being seasonally weaker.
Several industry analysts as well as key semiconductor manufacturers have pointed to a stronger forecast for the second half of 2012. We also expect to see more investments in Q3 than in Q2 this year and in fact some of the revenue growth in Q2 is coming from customers accelerating demand from early Q3. Additionally some of the growth is coming from market share gains in Flash, while DRAM market share is flat to slightly up.
The growth in DRAM is surprising, given the recent negative announcements related to personal computer shipments. The mobile portion of our DRAM revenue is up quarter-over-quarter to about 40% which is the highest percentage in the past year. With the growth of mobile devices and the growth of DRAM content in some tablets and smart phones, we believe the DRAM manufacturers are allocating more of their capacity in this area.Our Matrix product line revenue continued to grow for both DRAM as well as Flash. In this quarter, we expect to have record unit shipments of Matrix products. Well we are encouraged by the marketplace momentum for our Matrix product line, our outlook for the second half of the year is tempered by concerns about softness in the personal computer market and the potential impact of the macroeconomic forces. We will continue last years (inaudible) and provide more updates at the second quarter earnings call at the end of July. With that I will turn it over to Mike to give you our updated Q2 guidance.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV