SAN JOSE, Calif. - FormFactor Inc. has issued a warning amid product shipment delays.
The troubled probe-card maker expects revenue for fiscal third quarter 2010 to be between $46 and $48 million, lower than the previous expectation of the low to mid $50 millions.
The lower than expected results are due to the timing of completion of qualifications for the Matrix product family at major customers, the company's decision to turn away low margin business and longer lead times quoted than customers requested.
"Our new Matrix platform is gaining traction," said Carl Everett, CEO, in a statement. "I believe as our Matrix products become fully adopted at all major DRAM manufacturers, it will become the preferred full-wafer-contact probe solution."
FormFactor also announced its intent to file a program in which it will offer a voluntary stock option exchange for its employees.
In recent times loss-ridden FormFactor has been dogged by executive shake ups and layoffs. The company replaced its CEO and chief financial officer in May after its existing officers stepped down. The company announced recently it would cut about 8 percent of its workforce, the fifth time in a little more than two years that t FormFactor announced a significant layoff.