FormFactor Shares Take Shape

Shares of FormFactor ( FORM) surged Friday, a day after the chip-equipment maker reported strong second-quarter sales.

The Livermore, Calif., company said it had revenue of $92.4 million in the three months ended July 1, an increase of 77% from the same time a year ago. Net income was $15.3 million, or 32 cents a share.

Analysts polled by Thomson Financial were expecting FormFactor to earn 28 cents a share on $87.9 million in sales.

Investors bid up the stock more than 18%, or $6.53, to $41.93 in midday trading Friday.

Bookings in the second quarter totaled $96.5 million, a record for the company, which makes equipment that allows semiconductor manufacturers to test their chips and improve yields.

"Key to our growth strategy is our ongoing focus on R&D, where our pipeline remains stronger than ever," said CEO Igor Khandros in a press statement late Thursday. "Innovative new products, manufacturing execution and world-wide infrastructure put FormFactor in a unique position to enable the ongoing reduction in the cost of wafer test for our customers and for continuing long-term growth."

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