For probe card companies like FormFactor (NASDAQ:FORM), business is often difficult to forecast from quarter to quarter, as customers in the memory and logic space will often quickly change their orders in response to market conditions. While the addition of Cascade should take away some of the volatility by adding in a steadier R&D-driven engineering business, the reality is that the demand for chips for PCs, servers, and phones (not to mention memory) will remain predictably unpredictable.
At this point, though, business seems to be pointing up for FormFactor. Intel (NASDAQ:INTC) has significantly increased its orders and while the year-over-year comparisons in memory are weak, they are improving on a sequential basis. Looking ahead to the next generation of smartphones and servers, not to mention growing demand for sensors and connectivity chips for use in auto and IoT applications, FormFactor should be looking at some good revenue growth and margin leverage prospects in the coming years.
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FormFactor Starting To See A Ramp