Shares of probe cards and systems provider FormFactor (NASDAQ:FORM) are plummeting today after its outlook failed to impress investors.
Third-quarter revenue dropped 4.8% year-over-year to $180.9 million, lagging expectations by ~$2.1 million. Further, the company experienced a sequential decline in revenue, gross margin as well as profitability owing to lower Foundry and Logic probe card demand.
EPS at $0.24, on the other hand, came in better than expectations by $0.03. The company has undertaken an operational restructuring to better align with the lower demand levels.
Moreover, FORM expects an impact from the new U.S.-China trade restrictions, lower demand for DRAM probe cards, and subdued Foundry and Logic probe card demand.
Consequently, for the fourth quarter, revenue is expected at $115 million (+/-$5 million) and EPS is seen landing at $0.03 (+/-$0.03).
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