Wafer probe card company FormFactor (FORM)
has had a terrible time of it on a long-term basis. After trading in
the $40's back in 2007/08, the shares have chopped steadily down into
the single-digits as the company has gone from being a cash-generating
double-digit margin company to one that has posted years of losses. This
decline has been spurred in part by major fundamental shifts in the
company's previously core memory markets and company-specific execution
issues.
The view in the rearview mirror is decidedly ugly, but the
real question is whether FormFactor has positioned itself for a better
future. The 2012 acquisition of MicroProbe has positioned the company as
a meaningful player in the faster-growing system-on-a-chip (SoC)
market, but manufacturing issues in the third quarter draw attention
back to years of execution and performance issues. This is definitely a
high-risk situation, and I'm not sure FormFactor can or will build on
what MicroProbe brought them, but expectations are at a point where I
think aggressive investors may want to take a closer look.
Continue here:
FormFactor Hoping That SoCs Drive A New Leg Of Growth
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