FormFactor, Inc.

Thank you and welcome everyone to FormFactor's third quarter, 2026 earnings conference call. On today's call, our chief executive officer, Mike Slessor, and chief financial officer, Eric McKinnis. 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 GetPNL results and some important non-GAAP results intended to supplement your understanding of the company's financials. Reconciliations of GAAP to non-GAAP measures and other financial information are available in the press release issued today by the company and in 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, including the ramp up of manufacturing facilities, anticipated industry trends, potential disruptions in our supply chain, the impacts of regulatory changes, including tariffs and changes in export controls, The anticipated volatility in 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 differ 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 physical year ended December 27, 2025, 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 28, 2026, and we assume no obligation to update them. With that, we will now turn the call over to FormFactor CEO, Mike Slessor.

Thanks for joining us today. During the third quarter, FormFactor again grew revenue, gross margin, and earnings per share, with each metric exceeding the high end of our outlook range. These results continue a theme you've seen from us for the past year. namely broad-based growth in demand from our diversified leadership position at the intersection of high performance compute and advanced packaging and our ability to serve this demand by producing more output from our existing manufacturing footprint. On a year over year basis, we grew quarterly revenue close to 40% within essentially the same manufacturing footprint. Our fourth quarter outlook extends this trend. Although we are now reaching the limits of our ability to extract more output from our existing manufacturing footprint, we're also bringing our new farmers branch factory online. We recently qualified the assembly and test portion of this new facility, and only a few days ago shipped the first production unit to a leading customer. We celebrated these milestones last week together with almost 200 customers, suppliers, partners, employees, and government officials, at a ribbon cutting event that formally launched our nearly 300,000 square foot facility. Over the course of 2027, our top priority is the ramp up of Farmer's Branch. We'll ramp as quickly as we can while ensuring we both sustain the efficiency improvements we've demonstrated in the last year and maintain the market leading product quality that is one of FormFactor's foundational competitive advantages. Eric will provide more details on the status and plans for Farmer's Branch later in the call. Earlier this month, we announced the expansion of our long-standing partnership with Teradyne, one of the world's leading automated test equipment, or ATE suppliers. Together with our multi-year partnership with Advantest, this announcement formalizes the collaboration and partnership between FormFactor and both market-leading ATE suppliers. The goal of these collaborations is to speed up the development, validation, and high-volume production of next-generation semiconductor applications enabling high-performance compute, like high-bandwidth memory and co-package optics. These partnerships also reinforce and solidify the open ecosystem market structure that provides our mutual customers with full probe card ATE interoperability. enabling customers to select the optimum probe card and ATE combination for their specific chip architectures and designs. Turning now to segment and market details, Foundry and Logic was one of the key drivers of our third quarter growth, increasing 10% sequentially on the expected broad-based strength across multiple applications. We expect continued demand growth and breadth in the current fourth quarter. In this market, we're building on our established positions in PCs, mobile, data center CPUs, and networking, while adding new growth vectors like GPUs and hyperscaler custom ASICs. Specifically, during the third quarter, we shipped probe carts to the world's leading foundry for a single GPU design in multi-million dollar volumes. Building on this successful qualification and initial ramp, were well positioned to meaningfully grow share in this important part of the Foundry and Logic market in 2027, with Farmer's Branch providing the required capacity. Looking ahead in Foundry and Logic, accelerating trends of higher speed interfaces, greater power density, and increasingly complex advanced packaging chiplet architectures for next generation GPUs and custom ASICs are increasing probe card performance requirements. These higher performance requirements make FormFactor's advanced MEMS probe technology a requirement for cost-effective production tests, and we're building the foundation to achieve share gains in 2027 across a diverse set of GPU and custom ASIC designs. Our exposure to multiple customers and applications provides us with several ways to participate in the growth of high-performance compute and shows the benefits of our diversification strategy. reducing reliance on any single customer, program, or architecture to drive our revenue and growth. Turning to DRAM probe cards, third quarter revenue was, as expected, essentially unchanged from the record levels of the second quarter, but the mix shifted significantly. This mix shift was also expected, with HBM revenue declining and DDR5 revenue increasing. As our customers moved their wafer start mix to more DDR designs, to capture the profit opportunity provided by significant DDR market price increases. Since probe cards are specific to each customer chip design, our DRAM probe card mix tracks these dynamic customer product shifts. And we expect these quarter to quarter shifts between DDR and HBM to continue so long as the current bit constrained DRAM market conditions persist. Another important point related to this mix shift is that at the same time we achieved record DRAM probe card revenues with a DDR5 heavy and HBM light product mix, we delivered record gross margin performance. Compared to the form factor of years past, this is evidence of a very different profitability profile, demonstrating the impact of the successful execution of several DRAM probe card manufacturing cost production programs. The net result is improved DRAM probe card gross margins, which in turn lessen the dependence of our company-level gross margins on product mix. Turning now to our system segment, systems delivered a record quarter, growing 20% sequentially on accelerating demand for our Triton system for co-package optics for CPO applications. This accelerating demand has been evident in the steady increase in our expectations for this business in 2026. We started the year expecting between $10 and $20 million of Triton revenue and now expect upwards of $30 million in 2026. In tandem with this growing CPO business, we're also serving demand for additional photonics applications, such as CPO's close cousin Near Package Optics, or NPO, as well as pluggable devices. This beyond CPO application coverage is the result of our intentional focus on developing the world's leading optical probing technologies applicable across a wide range of photonics applications. In this case, we've prioritized building leadership in test insertion one, which ensures known good dye, or KGD, of the photonic integrated circuit, or PIC. Both CPO and NPO architectures require KGD PICs before they are combined with the electronic ICs to form the optical module and scale up and scale out network switches. As a result, form factor benefits from broader photonics adoption, whether it be CPO or NPO. Part of our leadership position in photonics probing stems from the acquisition of Keystone Photonics a year ago. As we've discussed, Keystone's innovative and differentiated optical probe technology enables high-efficiency optical coupling to our customers' photonic devices in much the same way our advanced MEMS probes provide best-in-class electrical connectivity to our customers' chips. To maximize our competitive advantage from this acquisition, we've made the decision to more tightly integrate the Keystone team and technologies into FormFactor with an exclusive focus on enhancing FormFactor's development and delivery of the world's leading photonics probing solutions. We believe the exciting growth in CPO, NPO, and pluggables represents the very early stages of widespread adoption of photonics in the broader semiconductor industry. Traditional copper interconnect is reaching physical limits in speed, heat, and energy consumption, and photonics provides a fundamentally more efficient way to transmit data within and between data centers using light instead of electricity. FormFactor is ideally positioned to help lead tests for this new area, as our lab-to-fab strategy has produced a decade-long first-mover advantage paired with key customer and partner relationships. Before turning the call over to Eric, I want to once again thank the global FormFactor team for continuing to demonstrate remarkable agility and perseverance in navigating the current challenging supply environment, quickly resolving internal and external constraints to again grow in the third quarter. With our recent qualifications and farmers branch coming online, we're well positioned to accelerate our growth as test intensity and complexity continue to rise at the intersection of high performance compute and advanced packaging. The midpoint of our fourth quarter outlook puts us on track to exceed $1 billion of revenue in 2026. And we're excited to cross this important milestone perform factor on the way to the $1.6 billion revenue level and $5 of non-GAAP earnings per share of our target model. Eric, you're up.