FormFactor, Inc.

our Chief Executive Officer, Mike Slessor, and Chief Financial Officer, Shai Shahar. Before we begin, Stan Finkelstein, the company's VP of Investor Relations, will remind you of some important information.

Thank you. Today, the company will be discussing gap panel results and some important non-gap results intended to supplement your understanding of the company's financial Reconciliations of gap to non-gap measures and other financial information are available in the press release issued today by the company and on the investor relations section of our website. Today's discussion contains forward-looking statements within the meaning of the federal securities laws. Examples of such forward-looking statements include those with respect to the projections of financial and business performance future macroeconomic and geopolitical conditions, the benefits of acquisitions and investments in capacity and in new technologies, the impacts of global, regional, and national health crisis, including the COVID-19 pandemic, anticipated industry trends, potential disruptions in our supply chain, the impacts of regulatory changes, including the recent US-China trade restrictions, the anticipated demand for products, our ability to develop, produce, and sell products, and the assumptions upon which such statements are based. These statements are subject to known and unknown risks and uncertainties that could cause actual results to deform materially from those expressed during this call. Information on risk factors and uncertainties is contained in our most recent filing, on Form 10-K with the SEC for the fiscal year end of 2021 and in our other SEC filings, which are available on the SEC's website at www.sec.gov and in our press release issued today. Forward-looking statements are made as of today, October 26, 2022, and we assume no obligation to update them. With that, we will now turn the call over to FormFactor CEO, Mike Schleser.

Thanks, everyone, for joining us today. As anticipated, FormFactor's third quarter revenue was down sequentially from the second quarter, chiefly due to the expected reduction in demand for Foundry and Logic probe cards, and this produced the forecasted decline in gross margins and profitability. Partially offsetting this reduction in probe card demand was record strength in our systems business, highlighting the benefits of our lab to fab diversification strategy. Compared to our outlook range, revenue was slightly below the midpoint, non-GAAP gross margin was at the midpoint, and non-GAAP earnings per share were near the top of the range. We do not view the current reduction in probe card demand as a fundamental change in our business. Rather, we see it as a response by our customers to cyclical declines in their businesses, especially in consumer-driven segments like client PC and mobile. Based on the customer, industry, and macroeconomic data we have at present, we expect this reduced demand to extend well into next year. In response, today we announced decisive steps to better align form factor's cost structure with these temporarily reduced demand levels. Shai will describe in more detail the steps we are implementing during the fourth quarter, which are designed to preserve profitability at the revenue run rates we believe are likely to prevail until the current downturn ends. This operational restructuring notwithstanding, we believe the core tenets of our strategy remain firmly in place, and we remain committed to achieving our target financial model. These core strategic tenets are first, sustained semiconductor content growth in both consumer and enterprise applications. Second, the industry's relentless investments in new technology and capacity. And third, the device-specific consumable nature of advanced probe cards, which when combined with our customers' innovation-driven investment in engineering systems, have historically resulted in less volatile demand cycles than way for fabrication equipment. Consistent with this strategy, we are continuing to invest in both R&D for new product innovation and competitive differentiation, as well as in the long lead time facilities and equipment portions of our capacity increase plans. These investments are designed to position form factor for market share gains and above industry revenue and profit growth when we emerge from the current cyclical downturn. Turning now to our fourth quarter outlook. Our sequentially weaker outlook is due to three primary factors. One, the new U.S.-China trade restrictions announced on October 7th. Two, weaker DRAM probe card demand. And three, further softness in foundry and logic probe card demand with specific weakness in RF probe cards. As we're a U.S.-based supplier with significant exposure to the leading-edge foundry and memory technologies affected by the recent U.S.-China trade regulations, These restrictions are a headwind in all of form factor's businesses. An example is our DRAM probe card business, where approximately half of our forecasted fourth quarter sequential decline in that market is due to hold on shipments and service of advanced DRAM probe cards to leading edge domestic customers in China. FormFactor has taken the necessary steps to ensure full compliance with the new rules by holding shipments and support as required by US-China trade restrictions. As the situation evolves, our local China team is working closely with customers and our trade compliance team to obtain releases and licenses to enable permitted shipments of the existing backlog. In Foundry and Logic Probe Cards, our largest business, we expect a further reduction in demand for core microprocessor and logic probe cards in the fourth quarter, although not as steep a sequential decline as we experienced in the third quarter. Inside the foundry and logic market, RF probe card demand continues to decline as customers burn off excess inventory of existing BAN saw filters and other RF front-end components like modems, switches, and power amplifiers, especially in low- to mid-tier 5G mobile handsets. Significantly, in the microprocessor business, we've begun volume shipments of probe cards to support pilot production of a major chiplet-based client CPU product. Advanced packaging chiplet architectures like EMIB, Foveros, and 3D Fabric are an exciting opportunity for FormFactor. As we've noted in the past, whether based on conventional solder-based assembly processes or more revolutionary processes like copper-to-copper hybrid bonding, These chiplet or tile-based integration schemes drive both higher test intensity, which expands the number of probe cards required per wafer out, and higher test complexity, which raises the performance requirements for the probe card. Advanced probe card architectures like FormFactor's MEMS technologies are essential to meet these challenging technical requirements at a compelling cost of ownership. while also meeting the short delivery lead times needed to support our customers' rapid and dynamic production ramps. Turning to memory probe cards, we expect a significant sequential fourth quarter reduction in DRAM probe card demand, partially offset by moderate strength in flash probe cards. As discussed above, approximately half of the reduction in DRAM is directly attributable to the new U.S.-China trade restrictions. with the other half the result of well-publicized weekend market conditions for DRAM chips, which is causing our customers to reduce the magnitude and speed of their new product ramps. It's worth noting that the third quarter all-time high in system segment revenues is expected to sustain in the fourth quarter, showing the benefit of participating in customers' early-stage R&D programs and the positive impact of successfully integrated tuck-in acquisitions completed during the last several years. Even in the current downturn, customers are aggressively investing in their technology roadmaps, with development of innovations like gate all-around transistors, advanced packaging, silicon photonics, and quantum computing together producing solid results in our systems business. I'd like to close by affirming that we remain confident in the long-term growth prospects for form factor in the industry overall, driven by the fundamental trends of semiconductor content growth and innovations like advanced packaging. These are trends where form factor is well positioned as an industry and technology leader, and we're confident that our resilience and commitment to invest in R&D and capacity will position form factor to emerge from the current downturn a stronger and leaner competitor. enabling us to achieve our target model that delivers $2 of non-GAAP earnings per share on $850 million of revenue. Shai, over to you.