LIVERMORE, Calif. - FormFactor, Inc. (NASDAQ:FORM), a $2.47 billion market cap leader in precision test and measurement solutions with a robust current ratio of 4.61, has announced a strategic partnership with Delft Circuits, known for its innovative cryogenic cabling solutions. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt, positioning it well for strategic growth initiatives. This collaboration aims to enhance quantum computing’s scalability and efficiency by integrating Delft Circuits’ Cri/oFlex® cabling into FormFactor’s cryogenic test systems.
Quantum computing is rapidly advancing, with growing demands for computation power and efficient system interfacing. FormFactor’s cryogenic test systems, which currently support up to 300 channels across 12 ISO-100 ports, will now incorporate Delft Circuits’ Cri/oFlex® cabling to facilitate up to 160 channels per port. This integration significantly increases the system’s total capacity to 1920 channels, marking a substantial improvement in performance and scalability, particularly in space-constrained environments.
Thomas Fries, VP and GM of the Emerging Growth Business Unit at FormFactor, highlighted the synergy between the two companies’ technologies, stating, "Delft Circuits’ technology perfectly complements our systems, allowing us to offer our customers some of the highest channel densities in the industry while maintaining the precision and reliability FormFactor is known for."
The partnership is set to drive the scalability needed for next-generation quantum computers. It offers a scalable pathway for growth, starting with initial support for 80-160 channels and the potential for future expansion to meet the accelerating pace of quantum computing development. FormFactor’s revenue grew by 15.16% in the last twelve months, reflecting its market momentum. Currently trading near its 52-week low of $30.96, analysts have set price targets ranging from $34 to $55, suggesting potential upside. For detailed analysis and more insights, check out the comprehensive research report available on InvestingPro, which covers over 1,400 US stocks.
Daan Kuitenbrouwer, Chief Commercial Officer and Founder at Delft Circuits, expressed enthusiasm for the collaboration, emphasizing the Cri/oFlex® technology’s role in meeting the critical needs of quantum computing infrastructures.
This alliance between FormFactor and Delft Circuits is poised to transform quantum computing interfacing by combining precision measurement with state-of-the-art cabling technology, thus accelerating the scalability and reliability of next-generation quantum systems. With FormFactor currently appearing undervalued according to InvestingPro’s Fair Value analysis, and maintaining strong financial health metrics, the company seems well-positioned to capitalize on the growing quantum computing market. The information for this news article is based on a press release statement and financial data from InvestingPro.
In other recent news, FormFactor reported its fourth-quarter earnings, revealing an earnings per share (EPS) of $0.27, slightly below the consensus estimate by $0.02, and revenue of $189.5 million, which missed the expected $190.12 million. Despite a 12.7% increase in revenue compared to the same quarter last year, the company’s guidance for the first quarter of 2025 fell short of expectations, with anticipated EPS between $0.15 and $0.23 and revenue between $165 million and $175 million. This outlook contributed to a downgrade by B.Riley from Buy to Neutral, with a price target reduction to $34, citing weaker demand in PC and smartphone markets as affecting probe card demand. Stifel analysts maintained a Hold rating with a price target of $48, noting FormFactor’s stable position in the High Bandwidth Memory (HBM) DRAM market, despite muted growth signals in other sectors. Additionally, FormFactor announced the acquisition of a minority interest in FICT Limited, a supplier of advanced probe card components, which is not expected to materially impact operations. The semiconductor equipment sector, including FormFactor, has seen a positive shift following upgrades by industry analysts, despite ongoing challenges such as U.S. restrictions impacting China’s domestic spending. Analysts expect continued investments in AI to provide tailwinds for the sector, though they remain cautious about the broader industry’s capital expenditure outlook for 2025.
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