FormFactor, Inc. (NASDAQ:FORM) Q1 2024 Earnings Call Transcript

Tom Diffely: So, maybe just to follow on to that then, if you look at your target model, was that based on a mix that was more favorable for you or is the increase in amount of memory going to impact your target model?

A – Shai Shahar: Mike talked a little bit about it that. Since we published our target model, there have been many puts and takes, some of them positive, some of them negative. We’re encouraged to see the second quarter outlook with a significant step-up in both revenue and gross margin. It is true that DRAM having a lower gross margin in Foundry & Logic that the increase in DRAM put some pressure on our target model. But, as we said, there were a few others positive and negative puts and takes. We do have a few internal ongoing initiatives to improve gross margin, things like automation, manufacturing efficiency, the increased focus on quality that we talked about today, which is part of the reason for consolidating our operations. So, these are all things that will help us to achieve the 47% gross margin and we’re still committed to it.

Tom Diffely: Great. Appreciate the color.

Operator: Thank you. This does conclude the question-and-answer session of today’s program. I’d like to hand the program back to Mike Slessor for any further remarks.

A – Mike Slessor: Thanks everybody for joining us today. Over the next, month, month-and-a-half, we’re going to be presenting and attending a variety of conferences and would welcome the chance to speak with any of you and provide more color on FormFactor, our current growth and our future growth prospects. Until then, take care.

Operator: Thank you, ladies and gentlemen, for your participation in today’s conference. This does conclude the program. You may now disconnect. Good day.