MIRA INFORM REPORT

Report Date :

26.10.2013

IDENTIFICATION DETAILS

Name :	FORMFACTOR, INC.
Registered Office :	7005 SouthFront Rd Livermore, CA 94551
Country :	United States
Financials (as on) :	29.12.2012
Date of Incorporation :	15.04.1993
Legal Form :	Public Parent
Line of Business :	Subject is engaged in designs, develops, manufactures, sells and supports precision, semiconductor wafer probe card products and solutions
No. of Employees :	1,021

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
United States	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

UNITED STATES - ECONOMIC OVERVIEW

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $49,800. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income. Imported oil accounts for nearly 55% of US consumption. Crude oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices climbed another 50% between 2006 and 2008, and bank foreclosures more than doubled in the same period. Besides dampening the housing market, soaring oil prices caused a drop in the value of the dollar and a deterioration in the US merchandise trade deficit, which peaked at $840 billion in 2008. The sub-prime mortgage crisis, falling home prices, investment bank failures, tight credit, and the global economic downturn pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, in October 2008 the US Congress established a $700 billion Troubled Asset Relief Program (TARP). The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009 the US Congress passed and President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP. In 2012 the federal government reduced the growth of spending and the deficit shrank to 7.6% of GDP. Wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the budget deficit and public debt. Through 2011, the direct costs of the wars totaled nearly $900 billion, according to US government figures. US revenues from taxes and other sources are lower, as a percentage of GDP, than those of most other countries. In March 2010, President OBAMA signed into law the Patient Protection and Affordable Care Act, a health insurance reform that will extend coverage to an additional 32 million American citizens by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on health care - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010. In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight. In December 2012, the Federal Reserve Board announced plans to purchase $85 billion per month of mortgage-backed and Treasury securities in an effort to hold down long-term interest rates, and to keep short term rates near zero until unemployment drops to 6.5% from the December rate of 7.8%, or until inflation rises above 2.5%. Long-term problems include stagnation of wages for lower-income families, inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, energy shortages, and sizable current account and budget deficits - including significant budget shortages for state governments

Source : CIA

Company name and address

FORMFACTOR, INC.

7005 SouthFront Rd.
Livermore, CA 94551
United States
Map
Tel:	925-290-4000
Fax:	925-290-4010
www.formfactor.com

Employees:

1,021

Company Type:

Public Parent

Corporate Family:

10 Companies

Traded:

NASDAQ:

FORM

Incorporation Date:

15-Apr-1993

Auditor:

PricewaterhouseCoopers LLP

Fiscal Year End:	29-Dec-2012
Reporting Currency:	US Dollar
Annual Sales:	178.5 ^1
Net Income:	(35.5)
Total Assets:	395.7 ^2
Market Value:	356.1
	(11-Oct-2013)

Business Description

FormFactor, Inc. designs, develops, manufactures, sells and supports precision, semiconductor wafer probe card products and solutions. Semiconductor manufacturers use its wafer probe cards to perform wafer sort, and test on the semiconductor die or chips on the semiconductor wafer. Its wafer probe cards are used by its customers in the front end of the semiconductor manufacturing process, as its image sensor, parametric or in-line probe cards. It offers products and solutions that are custom designed for semiconductor manufacturers wafer designs. Its products are based on its MicroSpring interconnect technology and design tools. It has facilities in the United States, Singapore, Japan, Germany, Taiwan, Italy, South Korea and the People's Republic of China. Its customers include manufacturers in the dynamic random access memory, Flash and system-on-chip markets. In October 2012, the Company acquired Astria Semiconductor Holdings, Inc. and its wholly owned subsidiary MicroProbe Inc. For the 26 weeks ended 29 June 2013, FormFactor, Inc. revenues increased 29% to $115.4M. Net loss increased 30% to $28.2M. Revenues reflect North America segment increase from $5.2M to $29.6M, Taiwan segment increase from $13.9M to $31.2M. Higher net loss reflects Restructuring charges (credits), net) increase from $103K to $4.1M (expense), Other income, net decrease of 56% to $423K (income).

Industry

Industry	Semiconductor and Other Electronic Component Manufacturing
ANZSIC 2006:	2429 - Other Electronic Equipment Manufacturing
ISIC Rev 4:	2610 - Manufacture of electronic components and boards
NACE Rev 2:	2611 - Manufacture of electronic components
NAICS 2012:	334515 - Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals
UK SIC 2007:	2611 - Manufacture of electronic components
US SIC 1987:	3674 - Semiconductors and Related Devices

Key Executives   (Emails Available)

Name	Title
Tom St. Dennis	Chief Executive Officer and Director
Michael M. Ludwig	Chief Financial Officer
Stuart L. Merkadeau	Senior Vice President, General Counsel, Secretary
Stan Finkelstein	IR Contact Officer
Bunsaku Nagai	Finance Executive

Significant Developments

Topic	#*	Most Recent Headline	Date
Negative Earnings Pre-Announcement	2	FormFactor Inc Issues Q3 2013 Revenue Guidance Below Analysts' Estimates-Conference Call	31-Jul-2013
Business Deals	1	FormFactor Inc's Advanced Copper Pillar Probing Solutions Selected by Leading Semiconductor Foundries for Volume Production	18-Jun-2013
Other Earnings Pre-Announcement	1	FormFactor Inc Issues Q2 2013 Revenue Guidance In Line With Analysts' Estimates-Conference Call	2-May-2013
Positive Earnings Pre-Announcement	1	FormFactor Inc Issues Q4 2012 Revenue Guidance Above Analysts' Estimates-Conference Call	2-Nov-2012

News

Title	Date
Shares of FormFactor Under Pressure, Down 1.7% Individual.com (44 Words)	18-Oct-2013
WIPO PUBLISHES PATENT OF FORMFACTOR AND SHAWN POWELL FOR "WIRING SUBSTRATE WITH FILLED VIAS TO ACCOMMODATE CUSTOM TERMINALS" (AMERICAN INVENTOR) U.S. Fed News (221 Words)	18-Oct-2013
Advanced Energy Industries is Among the Companies in the Semiconductor Equipment Industry with the Best Relative Performance (AEIS, KLIC, FORM, TER, ENTG) Comtex SmarTrend (176 Words)	14-Oct-2013
Review: ASRock Z87E-ITX Mini-ITX Motherboard @ Custom PC Review PCStats (69 Words)	10-Oct-2013
FormFactor to Announce Third Quarter 2013 Financial Yahoo! Singapore (236 Words)	9-Oct-2013
FormFactor to Announce Third Quarter 2013 Financial Results on October 30 Marketwired Yahoo! Finance (34 Words)	9-Oct-2013

Financial Summary

As of 29-Jun-2013

Key Ratios	Company	Industry
Current Ratio (MRQ)	5.14	3.90
Quick Ratio (MRQ)	4.56	3.02
Debt to Equity (MRQ)	0.0017	0.21
Sales 5 Year Growth	-17.32	11.04
Net Profit Margin (TTM) %	-20.59	19.30
Return on Assets (TTM) %	-11.21	15.21
Return on Equity (TTM) %	-12.95	21.72

Stock Snapshot

Traded: NASDAQ: FORM

As of 11-Oct-2013

   Financials in: USD

Recent Price	6.53	EPS	-0.70
52 Week High	7.75	Price/Sales	1.99
52 Week Low	3.70	Price/Book	1.03
Avg. Volume (mil)	0.47	Beta	1.47
Market Value (mil)	356.10

	Price % Change	Rel S&P 500%
4 Week	-9.74%	-10.55%
13 Week	-6.18%	-7.45%
52 Week	41.96%	19.42%
Year to Date	43.20%	19.91%

Key IDSM Number: 42981578

ABI Number: 974762692

1 - Profit & Loss Item Exchange Rate: USD 1 = USD 1

2 - Balance Sheet Item Exchange Rate: USD 1 = USD 1

Corporate Overview

Location
7005 SouthFront Rd.
Livermore, CA, 94551
Alameda County
United States

Tel:	925-290-4000
Fax:	925-290-4010

www.formfactor.com

Quote Symbol - Exchange
FORM - NASDAQ
Sales USD(mil):	178.5
Assets USD(mil):	395.7
Employees:	1,021
Fiscal Year End:	29-Dec-2012

Industry:

Semiconductors

Incorporation Date:	15-Apr-1993
Company Type:	Public Parent
Quoted Status:	Quoted

Chief Executive Officer and Director:

Tom St. Dennis

Industry Codes

ANZSIC 2006 Codes:
2429	-	Other Electronic Equipment Manufacturing
2421	-	Computer and Electronic Office Equipment Manufacturing

ISIC Rev 4 Codes:
2610	-	Manufacture of electronic components and boards
2620	-	Manufacture of computers and peripheral equipment

NACE Rev 2 Codes:
2611	-	Manufacture of electronic components
2620	-	Manufacture of computers and peripheral equipment

NAICS 2012 Codes:
334515	-	Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals
334112	-	Computer Storage Device Manufacturing
334118	-	Computer Terminal and Other Computer Peripheral Equipment Manufacturing

US SIC 1987:
3674	-	Semiconductors and Related Devices
3577	-	Computer Peripheral Equipment, Not Elsewhere Classified
3572	-	Computer Storage Devices

UK SIC 2007:
2611	-	Manufacture of electronic components
2620	-	Manufacture of computers and peripheral equipment

Business Description

FormFactor, Inc., incorporated on April 15, 1993, designs, develops, manufactures, sells and supports precision, semiconductor wafer probe card products and solutions. Semiconductor manufacturers use its wafer probe cards to perform wafer sort, and test on the semiconductor die or chips on the semiconductor wafer. Its wafer probe cards are used by its customers in the front end of the semiconductor manufacturing process, as its image sensor, parametric or in-line probe cards. The Company offers products and solutions that are custom designed for semiconductor manufacturers wafer designs. The Company’s products are based on its MicroSpring interconnect technology and design tools. The Company has facilities in the United States, Singapore, Japan, Germany, Taiwan, Italy, South Korea and the People's Republic of China. The Company’s customers include manufacturers in the dynamic random access memory (DRAM), Flash and system-on-chip (SoC) markets. In October 2012, the Company acquired Astria Semiconductor Holdings, Inc. and its wholly owned subsidiary MicroProbe Inc.

The MicroSpring interconnect technology includes resilient spring-like contact elements, which enable the Company to produce wafer probe cards for applications that require reliability, speed, precision and signal integrity. The Company manufactures its MicroSpring contact elements through precision micro-machining and scalable semiconductor, such as wafer fabrication processes. Its MicroSpring contacts are springs that optimize the relative amounts of force on, and across, a bond pad during the test process and maintain their shape and position over a range of compression. During the year ended December 31, 2011, the Company shipped 900 units of its second generation wafer contact products, SMART Matrix 100 for DRAM and TouchMatrix for Flash markets.

MicroSpring contacts enable the Company's wafer probe cards to make hundreds of thousands of touchdowns with minimal maintenance for many device applications. The MicroSpring contact can be attached to many surfaces or substrates, including printed circuit boards, silicon wafers, ceramics and metalized surfaces. The Company’s MicroSpring contacts include geometrically precise tip structures. The Company’s technology, including advanced tester resource enhancement (ATRE) technology, enables probe cards for certain applications to be populated with approximately 50,000 contacts.

During 2011, the Company’s revenues were primarily generated by the sale of wafer probe cards to manufacturers of DRAM devices. The customers use the Company’s wafer probe cards to test DRAM chips, including DDR, DDR2, DDR3, SDRAM, PSRAM, mobile DRAM, and Graphic DRAM, NOR and NAND flash memory chips, serial data devices, chipsets, microprocessors, microcontrollers and analog devices.

The Company competes with Advantest Corporation, Aehr Test Systems, AMST Co., Ltd., Cascade Microtech, Inc., Feinmetall GmbH, Korea Instrument Co., Ltd., Japan Electronic Materials Corporation, SV Probe, Inc., Micronics Japan Co., Ltd., Microfriend Inc., Micro-Probe, Inc., TSC MEMSYS Corporation, Technoprobe Asia Pte. Ltd., Tokyo Cathode Laboratory Co., Ltd., Tokyo Electron Ltd., TSE Co., Ltd. and Wentworth Laboratories, Inc

More Business Descriptions

FormFactor, Inc. designs, develops, manufactures, sells and supports precision, semiconductor wafer probe card products and solutions. Semiconductor manufacturers use its wafer probe cards to perform wafer sort, and test on the semiconductor die or chips on the semiconductor wafer. Its wafer probe cards are used by its customers in the front end of the semiconductor manufacturing process, as its image sensor, parametric or in-line probe cards. It offers products and solutions that are custom designed for semiconductor manufacturers wafer designs. Its products are based on its MicroSpring interconnect technology and design tools. It has facilities in the United States, Singapore, Japan, Germany, Taiwan, Italy, South Korea and the People's Republic of China. Its customers include manufacturers in the dynamic random access memory, Flash and system-on-chip markets. In October 2012, the Company acquired Astria Semiconductor Holdings, Inc. and its wholly owned subsidiary MicroProbe Inc. For the 26 weeks ended 29 June 2013, FormFactor, Inc. revenues increased 29% to $115.4M. Net loss increased 30% to $28.2M. Revenues reflect North America segment increase from $5.2M to $29.6M, Taiwan segment increase from $13.9M to $31.2M. Higher net loss reflects Restructuring charges (credits), net) increase from $103K to $4.1M (expense), Other income, net decrease of 56% to $423K (income).

Semiconductor Wafer Probe Cards Mfr & Retailer

Establishments primarily engaged in manufacturing semiconductors and related solid- state devices. Important products of this industry are semiconductor diodes and stacks, including rectifiers, integrated microcircuits (semiconductor networks), transistors, solar cells, and light sensing and emitting semi-conductor (solid-state) devices.

FormFactor, Inc. (FormFactor) designs, develops, manufactures, sells and supports semiconductor wafer probe card products and solutions. The company provides semiconductor wafer probe cards for sorting and testing process of different sized chips. It also provides related support services to the semiconductor manufacturers. The company conducts its business activity under one segment, which deals with the designing, development, manufacturing, selling and supporting of advanced semiconductor wafer probe cards. The wafer testing cards are designed for probing the wafers that required before simulation process. FormFactor designs and develops wafer probe cards that use array sizes ranging from 23 mm × 23 mm up to array sizes applicable for contacting whole die on a 300 mm wafer. It uses wafer probe cards for testing Dynamic Random Access Memory (DRAM). The company also uses wafer probe cards for testing NOR and NAND flash memory chips. It assists the semiconductor manufacturers in bringing new generations of SoC devices that include microprocessors, graphic processors, mobile radio frequency (RF), analog and mixed-signal products, and multi-functional consumer mobile devices. For the fiscal year ended December 2012, the revenues by markets were reported as DRAM with 57.4 %, SoC with 26.1 % and Flash with 16.5%. FormFactor also offers high-frequency test at probe product (HFTAP) for known good die (KGD) devices. It offers wafer testing products under both the registered and unregistered trademarks including FormFactor, Harmony, MicroSpring, MicroForce, the MicroProbe logo, TRE, TrueScale and the FormFactor logo. The company’s TRE trademark allows simultaneous testing of more integrated circuits on a wafer. FormFactor has its manufacturing facilities located in Livermore, San Jose and Carlsbad, California, where it delivers customized wafer designs. Its manufacturing facilities deal with the wirebonding, photolithography, plating and metallurgical processes, dry and electrodeposition, and complex interconnection system design. The company’s customers include Elpida, Spansion, Powerchip and Intel Corporation. The manufacturers of DRAM including DDR, DDR2, DDR3, SDRAM, PSRAM, mobile DRAM, and Graphic DRAM, serial data devices, NOR and NAND flash memory chips, chipsets, microprocessors and microcontrollers are major customers of the company. Its research and development activities include creating structured processes for undertaking, tracking and completing its development projects, and plan to implement those developments into new product or technology offerings. In 2012, its R&D expenses represented USD 40.1m, reporting 22.5% of the company’s total revenue. It has research and development facilities in California, the US; and Tokyo and Hiroshima, Japan. FormFactor has wide distribution network that includes direct sales force, a distributor and one independent sales representative. It employs direct sales force in North America, South Korea, Taiwan and Japan. The company’s local sales team and one independent sales representative hold the responsibility of distribution activity in Europe. The company operates its business through its subsidiaries including FormFactor Electronics Trading (Shanghai) Co., Ltd., FormFactor Germany GmbH, Microprobe Pte Limited (Singapore), FormFactor Hungary Licensing LLC, FormFactor International, Inc., FormFactor, KK, FormFactor Korea, Inc., FormFactor Singapore Pte Ltd., Astria Semiconductor Holdings, Inc, and Microprobe Hong Kong Limited. Geographically, the company operates in six regions, namely, Taiwan, North America, Japan, South Korea, Asia Pacific (includes all countries in the region except Taiwan, South Korea and Japan), and Europe. For the fiscal year ended December 2012, Japan accounted for 11.9%, Taiwan with 20.7%, North America with 15.4%, Europe with 6.5%, South Korea with 32.8 and Asia Pacific accounted 12.7% of the company’s total revenues.

FormFactor, Inc. (FormFactor) designs, develops, manufactures, sells and supports semiconductor wafer probe card products and solutions. The company designs wafer probe cards to conduct wafer sorting and testing on semiconductor chips. FormFactor designs and develops wafer probe cards that use array sizes ranging from 23 mm × 23 mm up to array sizes applicable for contacting whole die on a 300 mm wafer. The company uses wafer probe cards for testing Dynamic Random Access Memory (DRAM), NOR and NAND flash memory chips, and SoC devices including microprocessors, graphic processors, mobile radio frequency (RF) and analog and mixed-signal products. It offers wafer testing products under both the registered and unregistered trademarks including FormFactor, Harmony, MicroSpring, MicroForce, the MicroProbe logo, TRE, TrueScale and the FormFactor logo. FormFactor has its manufacturing facilities located in Livermore, San Jose and Carlsbad, California. The company operates its business through its subsidiaries including FormFactor Electronics Trading (Shanghai) Co., Ltd., FormFactor Germany GmbH, Microprobe Pte Limited (Singapore), FormFactor Hungary Licensing LLC, and FormFactor International, Inc. It operates in Taiwan, North America, Japan, South Korea, Asia Pacific and Europe. FormFactor is headquartered in Livermore, California, the US.The company reported revenues of (U.S. Dollars) USD 178.54 million during the fiscal year ended December 2012, an increase of 5.44% over 2011. The operating loss of the company was USD 64.12 million during the fiscal year 2012, as compared to an operating loss of USD 70.36 million during 2011. The net loss of the company was USD 35.55 million during the fiscal year 2012, as compared to a net loss of USD 65.98 million during 2011.

We design develop manufacture sell and support precision high performance advanced semiconductor wafer probe card products and solutions. Semiconductor manufacturers use our wafer probe cards to perform wafer sort and test on the semiconductor die or chips on the whole semiconductor wafer which is prior to singulation of the wafer into individual separate chips. We work closely with our customers on product design as each wafer probe card is a custom product that is specific to the chip and wafer designs of the customer. During wafer sort and test a wafer probe card is mounted in a prober and electrically connected to a semiconductor tester. The wafer probe card is used as an interface to connect electrically with and test individual chips on a wafer. Our wafer probe cards are used by our customers in the front end of the semiconductor manufacturing process as are our image sensor parametric or in-line probe cards. We operate in a single industry segment and have derived substantially all of our revenues from the sale of wafer probe cards incorporating our proprietary technology including our MicroSpring -« interconnect technology and our ATRE test technology. During the three and nine months ended September 29 2012 we saw revenue decrease as compared to the same period in fiscal 2011 across our DRAM and SoC product markets offset by an increase in Flash product markets. Our revenues decreased by 21% or $10.9 million in the three months ended September 29 2012 as compared to the same period in fiscal 2011 and by 6% or $8.2 million in the nine months ended September 29 2012 as compared to the same period in fiscal 2011. This decrease is attributed primarily to weakening DRAM end market demand. Market demand in SoC was also down in the three and nine months ended September 29 2012 as compared to the same periods in fiscal 2011 driven by macroeconomic conditions. Improved market penetration in NAND Flash in a major NAND Flash manufacturer drove increased revenues in this segment. We incurred a net loss of $14.5 million in the third quarter of fiscal 2012 as compared to a net loss of $9.9 million for the third quarter of fiscal 2011 . Net loss increased quarter over quarter due to decreasing revenue and gross margin levels as well as an increase in operating expenses due to restructuring charges of $2.5 million and acquisition costs of $1.2 million partially offset by the foreign Customs and value-added tax or VAT accrual release of $0.6 million . We incurred a net loss of $36.1 million in the first nine months of fiscal 2012 as compared to $39.0 million in the first nine months of fiscal 2011. The decrease in net loss period over period is primarily attributable to improved gross margin levels driven by favorable product mix lower material costs and lower inventory reserve charges as well as the reduction in operating expenses driven by both our restructuring actions undertaken throughout 2010 and 2011 and our continued focus on cost control efforts. Our cash cash equivalents and marketable securities totaled approximately $276.2 million as of September 29 2012 as compared to $296.7 million at December 31 2011 . The decrease in our cash cash equivalents and marketable securities balances was primarily due to the use of cash for operating activities in the second and third fiscal quarters of 2012 . We believe that we will be able to satisfy our working capital requirements for the next twelve months with the liquidity provided by our existing cash cash equivalents and marketable securities. If we are unsuccessful in improving our operating efficiency reducing our cash outlays or increasing our available cash through financing our cash cash equivalents and marketable securities will further decline in the fourth quarter of...

Founded in 1993, FormFactor is one of the leading companies in the United States, supplying advanced wafer probe cards. The company's products are used by semiconductor and microprocessor manufacturers. It designs, develops, manufactures and sells various high-performance, advanced semiconductor devices. The services provided by the company include device designing, fabrication, assembly and packaging, and final testing. Its wafer test probe cards use proprietary automated design tools to provide signal integrity. In addition, the company provides various support services, such as repair, replacement and personnel training. FormFactor is headquartered in Livermore, Calif., and has operations in Europe, Asia and North America.

Product Codes

Product Code	Product Description
AUT-AT-A	Probe cards
AUT-AT-DI	IC/semiconductor test equipment

Financial Data

Financials in:	USD(mil)
Revenue:	178.5
Net Income:	-35.5
Assets:	395.7
Long Term Debt:	0.3
Total Liabilities:	56.4
Working Capital:	0.3
Date of Financial Data:	29-Dec-2012

1 Year Growth

5.4%

NA

3.3%

Market Data

Quote Symbol:	FORM
Exchange:	NASDAQ
Currency:	USD
Stock Price:	6.5
Stock Price Date:	10-11-2013
52 Week Price Change %:	42.0
Market Value (mil):	356,103.2
SEDOL:	2891826
ISIN:	US3463751087
Equity and Dept Distribution:
Common Stock $.001 Par, 03/11, 250M auth., 50,716,377 issd. Insiders & Stakeholder owns 1.62%. IPO: 6/12/03, 6M shares @ $14 per share by Morgan Stanley. PO: 11/03, 1,499,866 shares @ $26 by Morgan Stanley.

Key Corporate Relationships

Auditor:	PricewaterhouseCoopers LLP
Auditor:	PricewaterhouseCoopers LLP

Additional Infomation
ABI Number:	974762692

Strategic initiatives

Key Organizational Changes

Net loss also decreased year over year due to the reduction in operating expenses driven by both our restructuring actions and our continued focus on cost reduction efforts. The net loss for fiscal 2012 includes MicroProbe operating activity from the acquisition date to fiscal 2012 year-end of $19.8 million in revenue and $6.4 million of net loss, which includes $8.2 million of intangible amortization and other expenses. In addition, the net loss includes restructuring charges of $2.9 million , impairment charges of $0.4 million , and $3.0 million in acquisition and integration costs, offset by a benefit of $25.5 million from the release of the U.S jurisdiction deferred tax asset valuation allowance resulting from the deferred tax liability recorded for the $77.6 million of intangible assets acquired in the acquisition of MicroProbe and a benefit from our patent settlement. The net loss for fiscal 2011 was primarily due to lower gross margins on products sold, $0.5 million of restructuring charges, and the impairment of certain long-lived assets of $0.5 million , offset by a benefit of $2.5 million from the release of the deferred tax asset valuation allowance for a non-U.S. jurisdiction. Recent Acquisition On October 16, 2012, pursuant to an Agreement and Plan of Merger and Reorganization (the “Acquisition Agreement�), dated as of August 31, 2012, as amended, a wholly-owned subsidiary of FormFactor merged with and into Astria Semiconductor Holding, Inc., including its subsidiary MicroProbe, Inc. (together “MicroProbe�), with Astria continuing as the surviving corporation and as a wholly-owned subsidiary of FormFactor (the "MicroProbe Acquisition").

MicroProbe is a semiconductor equipment company that designs, develops, manufactures, sells and services high performance, custom designed advanced SoC wafer probe cards and analytical test equipment used in the semiconductor industry. MicroProbe is a global company with operations in the U.S. and Asia, including China, South Korea, Singapore and Taiwan. The acquisition of MicroProbe enables us to leverage the combination of two advanced wafer probe card manufacturers and expand our SoC product portfolio to meaningfully diversify our business. Our preliminary allocation of the acquisition price at fair value includes intangible assets of $77.6 million and goodwill of $31.0 million. We incurred $3.0 million of acquisition and integration costs which were reported as selling, general and administrative expense in our Consolidated Statement of Operations for fiscal 2012 (see Note 3 - Acquisitions of the Notes to the Consolidated Financial Statements).

Sales and Distribution

During fiscal 2012, we saw revenues increase $9.2 million from $169.3 million in 2011 to $178.5 million in 2012. Revenue growth was driven by SoC and Flash product markets which were up $17.5 million and $4.9 million, respectively, when compared with 2011. SoC product revenue increase was driven by $19.8 million higher sales added in the fourth quarter from our acquisition of MicroProbe. Flash sales growth was driven by increased market share in the NAND Flash market. DRAM revenue was down $13.2 million versus 2011 as the second half of 2012 saw significantly weaker personal computer demand and a less favorable DRAM device pricing environment.

Location

7005 Southfront Rd Livermore, CA 94551-8201 United States
County:	Alameda
MSA:	San Fran, CA
Phone:	925-290-4000
Fax:	925-290-4010
URL:	http://formfactor.com
ABI^©:	974762692
Annual Sales:	$178,535,000 (USD)
Employees:	1,021
Facility Size(ft^2):	40,000+
Facility Own/Lease:	Own
Business Type:	Public
Location Type:	Headquarter
Ticker:	FORM
Exchange:	NASDAQ

Corporate Structure News:

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
FormFactor, Inc.	Parent	Livermore, CA	United States	Semiconductor and Other Electronic Component Manufacturing	178.5	1,021
FormFactor Europe GmbH	Subsidiary	Dresden	Germany	Semiconductor and Other Electronic Component Manufacturing		200
Micro Probe Inc	Subsidiary	Carlsbad, CA	United States	Electromedical and Control Instruments Manufacturing	32.6	120
FormFactor Korea, Inc.	Subsidiary	Seoul	Korea, Republic of	Semiconductor and Other Electronic Component Manufacturing		50
FormFactor Singapore Pte Ltd	Subsidiary	Singapore	Singapore	Metal Products Manufacturing		40
FormFactor K.K.	Subsidiary	Tokyo, Kanagawa	Japan	Semiconductor and Other Electronic Component Manufacturing		25
Form Factor Inc	Branch	Livermore, CA	United States	Electronics Wholesale	18.0	7
Micro Probe Inc	Subsidiary	San Jose, CA	United States	Electronics and Appliances Stores	1.6	7
Micro Probe Inc	Subsidiary	Southbury, CT	United States	Semiconductor and Other Electronic Component Manufacturing	1.3	3
FormFactor Electronics Trading (Shanghai) Co., Ltd.	Subsidiary	Shanghai	China	Electronics Wholesale

Competitors Report

CompanyName	Location	Employees	Ownership
Advantest Corp	Chiyoda-Ku, Japan	4,575	Public
Aehr Test Systems	Fremont, California, United States	72	Public
Cascade Microtech, Inc.	Beaverton, Oregon, United States	383	Public
JAPAN ELECTRONIC MATERIAL CORPORATION	Amagasaki-Shi, Japan	887	Public
MICRONICS JAPAN CO., LTD.	Musashino-Shi, Japan	1,456	Public
TOKYO ELECTRON DEVICE LTD.	Yokohama-Shi, Japan	948	Public

Executives Report

Board of Directors

Name	Title	Function
Carl Everett	Chairman Of The Board	Chairman
Biography: Mr. G. Carl Everett, Jr., is Chairman of the Board of FormFactor, Inc., since December 26, 2010. He has served as a Director since June 2001 and the company's Chairman since December 2010 and served as the company's interim Chief Executive Officer from May 2010 to September 2010, as well as the company's Executive Chairman from September 2010 to December 2010. Mr. Everett founded GCE Ventures, a venture advisement firm, in April 2001. Mr. Everett has served as a venture partner at Accel LLP, a venture capital firm, since 2002. From February 1998 to April 2001, Mr. Everett served as Senior Vice President, Personal Systems Group of Dell Inc. During 1997, Mr. Everett was on a personal sabbatical. From 1978 to December 1996, Mr. Everett held several management positions with Intel Corporation, including Senior Vice President and General Manager of the Microprocessor Products Group, and Senior Vice President and General Manager of the Desktop Products Group. Mr. Everett currently serves on the board of directors of three privately held companies. Mr. Everett holds a B.A. in business administration and an honorary Doctorate of Laws from New Mexico State University. Age: 62 Education: New Mexico State University, BA (Business Administration) Compensation/Salary:$297,462 Compensation Currency: USD Social:
Richard DeLateur	Independent Director	Director/Board Member
Biography: Mr. Richard DeLateur is Independent Director of FormFactor, Inc., since May 16, 2011. Mr. DeLateur has served as a Director since May 2011. Mr. DeLateur served as Chief Financial Officer of FormFactor, Inc. from May 2010 to May 2011. Mr. DeLateur is a 20-year veteran of Intel's finance team, where he held various positions, including the role of Vice President and Group Controller of Worldwide Technology and Manufacturing. Mr. DeLateur more recently served as Chief Financial Officer at the private companies Fluidigm Corporation and Topsin Corporation. Mr. DeLateur had also served as a Director at Numonyx Corp., a manufacturer of Flash memory, which is now part of Micron Technology, Inc. Mr. DeLateur was awarded his Chartered Financial Analyst (CFA) certification in 1999. Mr. DeLateur holds a B.A. in Economics from the University of California, Davis. Age: 54 Education: University of California, BA (Economics) Compensation/Salary:$164,077 Compensation Currency: USD
Chenming C Hu	Board Member	Director/Board Member
Biography: Chenming Calvin Hu was appointed to MoSys board of directors in January 2005. Previously Dr. Hu was chief technology officer of Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) the worlds largest dedicated integrated circuits (IC) manufacturing company. He is currently the TSMC Distinguished Chair Professor in Electrical Engineering and Computer Sciences at the University of California Berkeley. He also was co-founder of Celestry Design Technologies an IC design software company that was acquired by Cadence Design Systems in 2003. Education: National Taiwan University, BS University of California , Berkeley, MS University of California , Berkeley, PhD
Todd Kemmerling	Director	Director/Board Member
Social:
Igor Y Khandros	Board Member	Director/Board Member
Biography: From June 2008 to May 2009 Dr. Igor Khandros founder and former Chief Executive Officer of our company served as Executive Chairman of the Board and Mr. Prestridge served as Lead Independent Director. In his capacity as Executive Chairman Dr. Khandros presided at meetings of the Board. In his capacity as Lead Independent Director Mr. Prestridge presided at executive sessions of the Board and acted as liaison between the Executive Chairman of the Board and the Chief Executive Officer. After Dr. Khandros resignation in May 2009 the Board appointed Mr. Prestridge Chairman of the Board.
Marc Loranger View Email	Director	Director/Board Member	IUSA NP*
Social:
Lothar Maier	Independent Director	Director/Board Member	Reuters
Biography: Mr. Lothar Maier is Independent Director of FormFactor, Inc since November 14, 2006. Mr. Maier has served as the Chief Executive Officer and a member of the board of directors of Linear Technology Corporation (Nasdaq: LLTC), a supplier of high performance analog integrated circuits, which is a publicly traded company, since January 2005. Prior to that, Mr. Maier served as Linear Technology's Chief Operating Officer from April 1999 to December 2004. Before joining Linear Technology, Mr. Maier held various management positions at Cypress Semiconductor Corporation, a provider of high-performance, mixed-signal, programmable solutions, from 1983 to 1999, most recently as Senior Vice President and Executive Vice President of Worldwide Operations. Mr. Maier holds a B.S. in chemical engineering from the University of California at Berkeley. Age: 57 Education: University of California, Berkeley, BS (Chemical Engineering)
Edward Rogas	Independent Director	Director/Board Member
Biography: Mr. Edward Rogas, Jr., is Independent Director of FormFactor, Inc since October 19, 2010. Mr. Rogas currently serves on the Boards of Vitesse Semiconductor Corporation and Vignani Technologies Pvt Ltd. Mr. Rogas served as a Director of Photon Dynamics, Inc., from May 2006 to October 2008. Mr. Rogas held management positions at Teradyne, Inc. for over 30 years, including serving as Senior Vice President from 2000 through 2005. Mr. Rogas holds degrees of M.B.A. (with distinction) from Harvard Business School and B.S. from the United States Naval Academy. Age: 72 Education: Harvard University, MBA United States Naval Academy, BS
Tom St. Dennis View Email	Chief Executive Officer and Director	Director/Board Member
Biography: Mr. Thomas St. Dennis is Chief Executive Officer, Director of FormFactor, Inc., since September 13, 2010. Mr. St. Dennis previously held various positions at Applied Materials, Inc. from 1992 to 1999 and again from 2005 to 2009. His most recent role at Applied Materials, Inc. was the Senior Vice President and General Manager of the Silicon Systems Group. He also worked at Novellus Systems, Inc. as the Executive Vice President of Sales and Marketing from 2003 to 2005. From 1999 to 2003 Mr. St. Dennis was the President and CEO of Wind River Systems, Inc. Mr. St. Dennis holds a B.S. in Physics and a M.S. in Physics, both from UCLA. Age: 57 Education: University of California, Los Angeles, MS (Physics) University of California, Los Angeles, BS (Physics) Compensation/Salary:$476,308 Compensation Currency: USD Social:
Michael W. Zellner	Director	Director/Board Member
Biography: Mr. Michael W. Zellner is Independent Director of FormFactor, Inc., since April 13, 2011. Mr. Zellner, the Chief Financial Officer of PMC-Sierra (Nasdaq: PMCS) since March 2007, has over 25 years of financial experience in the high tech industry. Prior to joining PMC-Sierra, Mr. Zellner was Senior Vice President of Finance and Administration and Chief Financial Officer at Wind River Systems, Inc., a device software solutions provider to the electronics industry. Mr. Zellner completed the Stanford Executive Program at the Stanford Graduate School of Business and also holds an MBA and a BBA in accounting from Florida Atlantic University. Age: 57 Education: Florida Atlantic University, MBA Florida Atlantic University, BBA (Accounting)

Executives

Name	Title	Function
Tom St. Dennis View Email	Chief Executive Officer and Director	Chief Executive Officer
Biography: Mr. Thomas St. Dennis is Chief Executive Officer, Director of FormFactor, Inc., since September 13, 2010. Mr. St. Dennis previously held various positions at Applied Materials, Inc. from 1992 to 1999 and again from 2005 to 2009. His most recent role at Applied Materials, Inc. was the Senior Vice President and General Manager of the Silicon Systems Group. He also worked at Novellus Systems, Inc. as the Executive Vice President of Sales and Marketing from 2003 to 2005. From 1999 to 2003 Mr. St. Dennis was the President and CEO of Wind River Systems, Inc. Mr. St. Dennis holds a B.S. in Physics and a M.S. in Physics, both from UCLA. Age: 57 Education: University of California, Los Angeles, MS (Physics) University of California, Los Angeles, BS (Physics) Compensation/Salary:$476,308 Compensation Currency: USD Social:
Mike Slessor View Email	General Manager MicroProbe Product Business Unit	Division Head Executive
Tony Tryba View Email	General Manager FormFactor Product Business Unit	Division Head Executive
Jon Edwards View Email	Senior Manager - Information Technology Infrastructure and Operations	Operations Executive
Brian Bagnall View Email	Unix Systems Administrator	Administration Executive
Shelley Clark View Email	Administrator	Administration Executive
Kelly Richards View Email	Senior Executive Admin	Administration Executive
Stuart L. Merkadeau	Senior Vice President, General Counsel, Secretary	Company Secretary
Biography: Mr. Stuart L. Merkadeau is Senior Vice President, General Counsel and Secretary of FormFactor, Inc since October 2003. Mr. Merkadeau has served as one of the Senior Vice Presidents since October 2003 and as the company's General Counsel and Secretary since October 2002. Mr. Merkadeau previously served as one of the company's Vice Presidents from October 2002 to September 2003, and as the company's Vice President of Intellectual Property from July 2000 to October 2002. From 1990 to July 2000, Mr. Merkadeau practiced law as an associate and then a partner with Graham & James LLP, where he specialized in licensing and strategic counseling in intellectual property matters. Mr. Merkadeau is admitted to practice in California and registered to practice before the U.S. Patent and Trademark Office. Mr. Merkadeau holds a B.S. in industrial engineering from Northwestern University and a J.D. from the University of California at Los Angeles. Age: 51 Education: University of California, Los Angeles, JD Northwestern University, BS (Industrial Engineering) Compensation/Salary:$280,000 Compensation Currency: USD Social:
Michael M. Ludwig View Email	Chief Financial Officer	Finance Executive
Biography: Mr. Michael M. Ludwig is Chief Financial Officer of FormFactor, Inc., since May 16, 2011. Mr. Ludwig has also served as Vice President, Finance from December 2009 to May 2011, was a consultant to company from February 2009 to December 2009, and served as Vice President and Corporate Controller from April 2001 to April 2007. Mr. Ludwig has also held senior level finance and accounting positions at Force 10 Networks, Inc., a privately held company that builds and secures high performance networks, and at divisions of Tyco Electronics and Beckman Coulter. Mr. Ludwig holds a B.S. in accounting from California State Polytechnic University, Pomona. Age: 51 Education: California State Polytechnic University, Pomona, BS (Accounting) Compensation/Salary:$278,077 Compensation Currency: USD
Bunsaku Nagai	Finance Executive	Finance Executive
Hailey Uy View Email	Senior Accountant	Accounting Executive
Clara Xu View Email	Senior Manager Tax	Corporate Tax Executive
Henry I Feir	Senior Vice President, Human Resources Executive	Human Resources Executive
Thomas P Ho View Email	Sales, Vice President	Sales Executive
Ryan Johnson	Account Manager	Sales Executive
James Mcguire View Email	Senior Vice President Worldwide Sales and Service	International Sales Executive
Monica Chai View Email	Senior Marketing Manager	Marketing Executive
Manish Gulati	Marketing Executive	Marketing Executive
David Viera	Corporate Communications Executive	Corporate Communications Executive
Stan Finkelstein	IR Contact Officer	Investor Relations Executive
Tommie Berry View Email	Senior Director Test Systems Applications	Information Executive
Social:
Benjamin Eldridge View Email	Chief Technology Officer	Information Executive
Biography: Mr. Eldridge is the chief technology officer and a senior vice president of FormFactor, Inc. since 2000. During 1984-94, he served at the TJ Watson Research Center of IBM Corporation. During 1994-95, he served as the manager of development engineering. He was the director of development from 1995 to 1997. During 1997-2000, he served as the vice president of development. Social:
Jay Roadarmel View Email	Senior Director - Information Technology	Information Executive
Stefan Zschiegner	Infrastructure Support, Solutions	Information Executive
Social:
Tim Blomgren	Engineering/Technical	Engineering/Technical Executive
Keith Breinlinger	Engineering/Technical	Engineering/Technical Executive
Social:
Tim Cooper View Email	Vice President, Process & Integration Engineering	Engineering/Technical Executive
Chris Day View Email	Director Development Cad Engineering	Engineering/Technical Executive
Salvador De Castro View Email	Engineering Manager	Engineering/Technical Executive
Delain Frome View Email	Staff Engineer	Engineering/Technical Executive
Social:
Jose Gonzalez View Email	Engineer	Engineering/Technical Executive
Gary Grube View Email	Principal Engineer	Engineering/Technical Executive
Randy Havener View Email	Facilities Engineering Manager	Engineering/Technical Executive
Roy Henson View Email	Engineering/Technical	Engineering/Technical Executive
Eric Hobbs View Email	Engineering/Technical	Engineering/Technical Executive
Susumu Kaneko View Email	Design Engineer	Engineering/Technical Executive
Preeti Kohli View Email	Senior Process Engineer	Engineering/Technical Executive
Wayne Lee	Engineering/Technical	Engineering/Technical Executive
Gaetan Mathieu View Email	Engineer	Engineering/Technical Executive
Ed Milovic View Email	Mechanical Engineer	Engineering/Technical Executive
Uday Nayak View Email	Senior Director, Product Engineering	Engineering/Technical Executive
Andrew Sherman View Email	Engineer	Engineering/Technical Executive
Makarand Shinde View Email	Director Product Engineering	Engineering/Technical Executive
Nelson Troncoso View Email	Manufacturing Engineer	Engineering/Technical Executive
Jim Tseng View Email	Design Engineer	Engineering/Technical Executive
Rahul Jairath View Email	Vice President, Product Development	Product Management Executive
Ofer Bokobza	Business Development, Vice President	Business Development Executive
Bruce Bolliger	Business Development, Vice President	Business Development Executive
Yoshikazu Hatsukano	Business Development, Senior Vice President	Business Development Executive
Bill Greenroad View Email	Senior Manufacturing Director	Manufacturing Executive
Carina Javier View Email	Purchasing Agent	Purchasing Executive
Steve Childress	Manager	Other
Richard M Freeman	Senior Vice President	Other
Matt Giluso View Email	Director Tooling & Fabrication	Other
Cameron Harker View Email	Director Business Management	Other
Mike Herauf View Email	Manager	Other
Alexis Kam View Email	Senior Revenue Manager	Other
Jenson Luis View Email	Mechanical Designer	Other
Marnie Steele View Email	Cost Manager	Other
Parag Vijayvargiya View Email	Architect, IT Solutions	Other

Significant Developments

FormFactor Inc Issues Q3 2013 Revenue Guidance Below Analysts' Estimates-Conference Call

Jul 31, 2013

FormFactor Inc announced that for the third quarter of 2013, it expect revenues to be in the range of $65 million to $69 million. According to I/B/E/S Estimates, analysts on an average were expecting the Company to report revenue of revenue of $70 million for the third quarter 2013.

FormFactor Inc's Advanced Copper Pillar Probing Solutions Selected by Leading Semiconductor Foundries for Volume Production

Jun 18, 2013

FormFactor Inc. announced that it has shipped multiple units of Apollo MF100 probe cards to two leading semiconductor foundries. Following an extensive engineering evaluation, the foundries selected the Apollo MF100 to test advanced 28nm System-on-Chip products, utilizing copper pillar packaging technology, in volume production.

FormFactor Inc Issues Q2 2013 Revenue Guidance In Line With Analysts' Estimates-Conference Call

May 02, 2013

FormFactor Inc announced that for the second quarter of 2013, it expect revenues to be in the range of $58 million to $62 million. According to I/B/E/S Estimates, analysts on an average were expecting the Company to report revenue of revenue of $61 million for the second quarter 2013.

FormFactor Inc Issues Q1 2013 Revenue Guidance Below Analysts' Estimates-Conference Call

Feb 07, 2013

FormFactor Inc announced that it expects first quarter 2013 revenues to be in the range of $48 million to $53 million. According to I/B/E/S Estimates, analysts on an average were expecting the Company to report revenue of revenue of $55 million for the first quarter 2013.

FormFactor Inc Issues Q4 2012 Revenue Guidance Above Analysts' Estimates-Conference Call

Nov 02, 2012

FormFactor Inc announced that for the fourth quarter of 2012, it expects revenues to be in the range of $46 million to $51 million. According to I/B/E/S Estimates, analysts on an average were expecting the Company to report revenue of revenue of $45 million for the fourth quarter of 2012.

Annual Income Statement

	29-Dec-2012	31-Dec-2011	25-Dec-2010	26-Dec-2009	27-Dec-2008
Period Length	52 Weeks	52 Weeks	52 Weeks	52 Weeks	52 Weeks
UpdateType/Date	Updated Normal 29-Dec-2012	Updated Normal 31-Dec-2011	Updated Normal 25-Dec-2010	Reclassified Normal 25-Dec-2010	Updated Normal 27-Dec-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP
Auditor Opinion	Unqualified with Explanation	Unqualified	Unqualified	Unqualified	Unqualified with Explanation
Net Sales	178.5	169.3	188.6	135.3	210.2
Revenue	178.5	169.3	188.6	135.3	210.2
Total Revenue	178.5	169.3	188.6	135.3	210.2
Cost of Revenue	153.2	148.4	190.8	134.5	173.9
Cost of Revenue, Total	153.2	148.4	190.8	134.5	173.9
Gross Profit	25.3	21.0	-2.3	0.8	36.3
Selling/General/Administrative Expense	49.2	46.7	66.8	78.4	95.2
Total Selling/General/Administrative Expenses	49.2	46.7	66.8	78.4	95.2
Research & Development	40.1	43.5	55.4	57.5	65.5
Amortization of Intangibles	-	-	0.4	-	-
Depreciation/Amortization	-	-	0.4	-	-
Restructuring Charge	2.9	0.5	15.9	8.8	9.2
Litigation	-3.3	-	-	-	-
Impairment-Assets Held for Use	0.4	0.5	56.4	1.3	4.4
Other Unusual Expense (Income)	-	0.0	-	-	-
Unusual Expense (Income)	0.1	1.1	72.3	10.1	13.6
Total Operating Expense	242.7	239.7	385.7	280.5	348.2
Operating Income	-64.1	-70.4	-197.2	-145.2	-138.0
Interest Income - Non-Operating	0.7	1.4	2.5	3.3	12.4
Interest/Investment Income - Non-Operating	0.7	1.4	2.5	3.3	12.4
Interest Income (Expense) - Net Non-Operating Total	0.7	1.4	2.5	3.3	12.4
Other Non-Operating Income (Expense)	1.5	1.1	4.4	-0.5	0.7
Other, Net	1.5	1.1	4.4	-0.5	0.7
Income Before Tax	-62.0	-67.9	-190.2	-142.4	-124.9
Total Income Tax	-26.4	-1.9	-1.9	13.2	-44.3
Income After Tax	-35.5	-66.0	-188.3	-155.7	-80.6
Net Income Before Extraord Items	-35.5	-66.0	-188.3	-155.7	-80.6
Net Income	-35.5	-66.0	-188.3	-155.7	-80.6
Income Available to Common Excl Extraord Items	-35.5	-66.0	-188.3	-155.7	-80.6
Income Available to Common Incl Extraord Items	-35.5	-66.0	-188.3	-155.7	-80.6
Basic/Primary Weighted Average Shares	50.6	50.5	50.2	49.5	48.9
Basic EPS Excl Extraord Items	-0.70	-1.31	-3.75	-3.15	-1.65
Basic/Primary EPS Incl Extraord Items	-0.70	-1.31	-3.75	-3.15	-1.65
Dilution Adjustment	0.0	0.0	0.0	0.0	0.0
Diluted Net Income	-35.5	-66.0	-188.3	-155.7	-80.6
Diluted Weighted Average Shares	50.6	50.5	50.2	49.5	48.9
Diluted EPS Excl Extraord Items	-0.70	-1.31	-3.75	-3.15	-1.65
Diluted EPS Incl Extraord Items	-0.70	-1.31	-3.75	-3.15	-1.65
Dividends per Share - Common Stock Primary Issue	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Interest Expense, Supplemental	-	-	-	-	0.2
Depreciation, Supplemental	16.9	10.8	26.4	32.2	32.3
Total Special Items	0.1	1.1	72.3	10.1	13.6
Normalized Income Before Tax	-61.9	-66.8	-117.9	-132.4	-111.4
Effect of Special Items on Income Taxes	0.0	0.4	25.3	3.5	4.7
Inc Tax Ex Impact of Sp Items	-26.4	-1.5	23.4	16.7	-39.5
Normalized Income After Tax	-35.5	-65.3	-141.3	-149.1	-71.8
Normalized Inc. Avail to Com.	-35.5	-65.3	-141.3	-149.1	-71.8
Basic Normalized EPS	-0.70	-1.29	-2.81	-3.01	-1.47
Diluted Normalized EPS	-0.70	-1.29	-2.81	-3.01	-1.47
Amort of Intangibles, Supplemental	-	1.2	1.7	-	-
Rental Expenses	4.7	4.8	5.4	5.7	6.0
Advertising Expense, Supplemental	-	-	-	-	0.2
Research & Development Exp, Supplemental	40.1	43.5	55.4	57.5	65.5
Normalized EBIT	-64.0	-69.3	-124.9	-135.1	-124.5
Normalized EBITDA	-47.1	-57.3	-96.8	-102.9	-92.2
Current Tax - Domestic	-1.9	-0.2	-2.4	-25.3	-32.2
Current Tax - Foreign	-0.1	-0.5	2.7	0.8	2.2
Current Tax - Local	0.1	0.0	-0.1	0.1	1.0
Current Tax - Total	-2.0	-0.7	0.2	-24.4	-29.0
Deferred Tax - Domestic	0.0	0.0	-0.1	30.9	-9.2
Deferred Tax - Foreign	1.1	-1.2	-2.0	-1.8	0.0
Deferred Tax - Local	-25.5	0.0	0.0	8.5	-6.0
Deferred Tax - Total	-24.5	-1.2	-2.1	37.6	-15.3
Income Tax - Total	-26.4	-1.9	-1.9	13.2	-44.3
Defined Contribution Expense - Domestic	0.8	0.6	0.2	0.9	1.9
Total Pension Expense	0.8	0.6	0.2	0.9	1.9

Annual Balance Sheet

Financials in: USD (mil)

	29-Dec-2012	31-Dec-2011	25-Dec-2010	26-Dec-2009	27-Dec-2008
UpdateType/Date	Updated Normal 29-Dec-2012	Updated Normal 31-Dec-2011	Reclassified Normal 31-Dec-2011	Updated Normal 26-Dec-2009	Updated Normal 27-Dec-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Auditor	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP
Auditor Opinion	Unqualified with Explanation	Unqualified	Unqualified	Unqualified	Unqualified with Explanation
Cash & Equivalents	72.2	139.0	121.2	122.0	337.9
Short Term Investments	93.5	157.6	226.0	327.2	185.0
Cash and Short Term Investments	165.8	296.7	347.2	449.2	522.9
Accounts Receivable - Trade, Gross	29.2	12.9	29.4	38.7	38.3
Provision for Doubtful Accounts	-0.3	-0.2	-0.8	-9.3	-4.2
Trade Accounts Receivable - Net	28.9	12.7	28.6	29.4	34.1
Other Receivables	5.7	0.9	0.0	26.8	29.4
Total Receivables, Net	34.6	13.6	28.6	56.2	63.5
Inventories - Finished Goods	6.2	6.4	5.5	11.7	9.5
Inventories - Work In Progress	8.7	5.9	16.8	11.5	7.1
Inventories - Raw Materials	8.7	5.7	2.7	2.4	2.1
Total Inventory	23.6	18.1	25.0	25.5	18.8
Prepaid Expenses	10.6	7.5	14.7	12.3	14.7
Restricted Cash - Current	-	0.0	0.4	0.0	-
Deferred Income Tax - Current Asset	4.6	1.2	0.3	3.3	23.0
Other Current Assets, Total	4.6	1.2	0.7	3.3	23.0
Total Current Assets	239.2	337.0	416.3	546.6	643.0
Buildings	71.4	70.1	69.9	71.8	70.7
Land/Improvements	0.8	0.8	0.0	-	0.0
Machinery/Equipment	187.0	169.7	157.5	157.9	145.0
Construction in Progress	13.4	12.5	17.8	14.4	15.0
Property/Plant/Equipment - Gross	272.6	253.1	245.3	244.1	230.7
Accumulated Depreciation	-227.1	-218.0	-208.0	-146.4	-116.9
Property/Plant/Equipment - Net	45.5	35.1	37.3	97.8	113.8
Goodwill, Net	31.0	0.0	-	-	-
Intangibles - Gross	83.5	5.9	5.9	-	-
Accumulated Intangible Amortization	-9.3	-2.7	-1.5	-	-
Intangibles, Net	74.3	3.2	4.4	-	-
Deferred Income Tax - Long Term Asset	4.2	6.0	5.4	2.2	20.6
Restricted Cash - Long Term	0.3	0.3	0.3	0.7	0.7
Other Long Term Assets	1.2	1.5	2.3	8.7	7.7
Other Long Term Assets, Total	5.7	7.8	8.1	11.6	28.9
Total Assets	395.7	383.1	466.1	656.0	785.7
Accounts Payable	21.0	9.7	14.9	29.3	33.2
Accrued Expenses	17.1	13.8	23.8	22.9	25.7
Notes Payable/Short Term Debt	0.0	0.0	0.0	0.0	0.0
Current Portion - Long Term Debt/Capital Leases	0.6	0.0	-	-	-
Customer Advances	6.2	4.8	4.6	10.9	4.9
Income Taxes Payable	0.0	0.1	1.9	0.5	1.9
Other Current Liabilities	0.1	0.1	0.2	0.5	0.5
Other Current liabilities, Total	6.3	5.0	6.7	11.8	7.3
Total Current Liabilities	45.0	28.6	45.5	64.0	66.2
Capital Lease Obligations	0.3	0.0	-	-	-
Total Long Term Debt	0.3	0.0	0.0	0.0	0.0
Total Debt	0.9	0.0	0.0	0.0	0.0
Deferred Income Tax - LT Liability	-	-	-	2.1	0.0
Deferred Income Tax	-	-	-	2.1	0.0
Other Long Term Liabilities	11.0	7.8	9.3	12.0	13.4
Other Liabilities, Total	11.0	7.8	9.3	12.0	13.4
Total Liabilities	56.4	36.4	54.9	78.2	79.6
Common Stock	0.1	0.1	0.1	0.1	0.0
Common Stock	0.1	0.1	0.1	0.1	0.0
Additional Paid-In Capital	681.2	652.0	651.3	630.3	602.3
Retained Earnings (Accumulated Deficit)	-343.7	-308.1	-242.1	-53.9	101.8
Other Comprehensive Income	1.7	2.7	2.0	1.3	1.9
Other Equity, Total	1.7	2.7	2.0	1.3	1.9
Total Equity	339.3	346.7	411.2	577.8	706.1
Total Liabilities & Shareholders’ Equity	395.7	383.1	466.1	656.0	785.7
Shares Outstanding - Common Stock Primary Issue	53.3	49.3	50.6	49.8	49.1
Total Common Shares Outstanding	53.3	49.3	50.6	49.8	49.1
Treasury Shares - Common Stock Primary Issue	0.0	0.0	0.0	0.0	0.0
Employees	1,021	709	729	808	940
Number of Common Shareholders	154	58	62	68	80
Accumulated Intangible Amort, Suppl.	9.3	2.7	1.5	-	-
Deferred Revenue - Current	6.2	4.8	4.6	10.9	4.9
Total Capital Leases, Supplemental	0.9	-	-	-	-
Capital Lease Payments Due in Year 1	0.6	-	-	-	-
Capital Lease Payments Due in Year 2	0.2	-	-	-	-
Capital Lease Payments Due in Year 3	0.2	-	-	-	-
Capital Lease Payments Due in Year 4	0.0	-	-	-	-
Capital Lease Payments Due in Year 5	0.0	-	-	-	-
Capital Lease Payments Due in 2-3 Years	0.3	-	-	-	-
Capital Lease Payments Due in 4-5 Years	0.0	-	-	-	-
Cap. Lease Pymts. Due in Year 6 & Beyond	0.0	-	-	-	-
Total Operating Leases, Supplemental	24.4	27.7	30.1	19.2	22.4
Operating Lease Payments Due in Year 1	3.7	3.8	3.9	5.6	5.2
Operating Lease Payments Due in Year 2	2.9	3.3	2.8	4.0	4.3
Operating Lease Payments Due in Year 3	2.9	3.3	2.8	4.0	4.3
Operating Lease Payments Due in Year 4	2.5	2.4	2.8	0.6	1.8
Operating Lease Payments Due in Year 5	2.5	2.4	2.8	0.6	1.8
Operating Lease Pymts. Due in 2-3 Years	5.7	6.5	5.7	7.9	8.6
Operating Lease Pymts. Due in 4-5 Years	5.0	4.8	5.6	1.2	3.6
Oper. Lse. Pymts. Due in Year 6 & Beyond	10.0	12.5	15.0	4.5	5.1

Annual Cash Flows

Financials in: USD (mil)

	29-Dec-2012	31-Dec-2011	25-Dec-2010	26-Dec-2009	27-Dec-2008
Period Length	52 Weeks	52 Weeks	52 Weeks	52 Weeks	52 Weeks
UpdateType/Date	Updated Normal 29-Dec-2012	Updated Normal 31-Dec-2011	Updated Normal 25-Dec-2010	Reclassified Normal 31-Dec-2011	Updated Normal 27-Dec-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP
Auditor Opinion	Unqualified with Explanation	Unqualified	Unqualified	Unqualified	Unqualified with Explanation
Net Income/Starting Line	-35.5	-66.0	-188.3	-155.7	-80.6
Depreciation	16.9	10.8	28.2	32.7	32.2
Depreciation/Depletion	16.9	10.8	28.2	32.7	32.2
Deferred Taxes	-24.5	-2.0	-2.1	39.1	-15.3
Unusual Items	0.9	-1.0	65.4	1.7	6.0
Other Non-Cash Items	18.4	22.3	24.6	31.6	43.0
Non-Cash Items	19.3	21.2	90.0	33.3	49.0
Accounts Receivable	5.1	15.9	29.1	3.3	3.8
Inventories	-0.9	-1.2	-11.6	-9.4	-6.1
Prepaid Expenses	0.8	5.6	-1.6	0.4	-0.2
Other Assets	0.4	1.9	0.1	6.4	2.3
Accounts Payable	-5.9	-5.1	-13.0	-0.3	-1.6
Accrued Expenses	-1.1	-9.6	4.6	-5.6	-3.5
Taxes Payable	-2.1	-1.3	-0.7	-3.0	-3.4
Other Liabilities	1.2	0.2	-8.1	5.7	-1.0
Other Operating Cash Flow	0.0	0.0	0.4	0.4	-
Changes in Working Capital	-2.4	6.6	-0.9	-2.1	-9.6
Cash from Operating Activities	-26.2	-29.3	-73.1	-52.7	-24.4
Purchase of Fixed Assets	-8.0	-7.7	-30.9	-19.2	-30.2
Capital Expenditures	-8.0	-7.7	-30.9	-19.2	-30.2
Acquisition of Business	-96.7	0.0	0.0	-12.0	0.0
Sale of Fixed Assets	0.0	0.0	0.3	0.2	-
Sale/Maturity of Investment	146.3	314.7	441.8	444.4	343.3
Purchase of Investments	-82.4	-246.7	-341.3	-587.8	-273.9
Other Investing Cash Flow	0.0	0.4	0.0	0.0	1.6
Other Investing Cash Flow Items, Total	-32.7	68.4	100.8	-155.2	71.0
Cash from Investing Activities	-40.7	60.7	69.8	-174.4	40.7
Other Financing Cash Flow	-0.1	0.0	0.0	4.3	0.3
Financing Cash Flow Items	-0.1	0.0	0.0	4.3	0.3
Sale/Issuance of Common	2.3	3.5	3.7	7.1	5.7
Repurchase/Retirement of Common	0.0	-16.4	-0.6	0.0	0.0
Common Stock, Net	2.3	-12.9	3.1	7.1	5.7
Issuance (Retirement) of Stock, Net	2.3	-12.9	3.1	7.1	5.7
Cash from Financing Activities	2.1	-12.9	3.1	11.5	6.0
Foreign Exchange Effects	-2.0	-0.6	-0.7	-0.3	0.4
Net Change in Cash	-66.8	17.8	-0.8	-215.9	22.7
Net Cash - Beginning Balance	139.0	121.2	122.0	337.9	315.2
Net Cash - Ending Balance	72.2	139.0	121.2	122.0	337.9
Cash Taxes Paid	0.0	1.4	-24.9	-25.8	-1.2

 Annual Income Statement

	29-Dec-2012	31-Dec-2011	25-Dec-2010	26-Dec-2009	27-Dec-2008
Period Length	52 Weeks	52 Weeks	52 Weeks	52 Weeks	52 Weeks
UpdateType/Date	Updated Normal 29-Dec-2012	Updated Normal 31-Dec-2011	Updated Normal 25-Dec-2010	Reclassified Normal 25-Dec-2010	Updated Normal 27-Dec-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP
Auditor Opinion	Unqualified with Explanation	Unqualified	Unqualified	Unqualified	Unqualified with Explanation
Revenues	178.5	169.3	188.6	135.3	210.2
Total Revenue	178.5	169.3	188.6	135.3	210.2
Gain on settlement of litigation	-3.3	-	-	-	-
Cost of Revenues	153.2	148.4	190.8	134.5	173.9
Research and development	40.1	43.5	55.4	57.5	65.5
Amortization	-	-	0.4	-	-
Selling, general and administrative	49.2	46.7	66.8	78.4	95.2
Gain on litigation	-	0.0	-	-	-
Impairments of long-lived assets	0.4	0.5	56.4	1.3	4.4
Restructuring charges (credits), net)	2.9	0.5	15.9	8.8	9.2
Total Operating Expense	242.7	239.7	385.7	280.5	348.2
Interest income, net	0.7	1.4	2.5	3.3	-
Interest Income	-	-	-	-	12.4
Other income, net	1.5	1.1	4.4	-0.5	0.7
Net Income Before Taxes	-62.0	-67.9	-190.2	-142.4	-124.9
Provision for Income Taxes	-26.4	-1.9	-1.9	13.2	-44.3
Net Income After Taxes	-35.5	-66.0	-188.3	-155.7	-80.6
Net Income Before Extra. Items	-35.5	-66.0	-188.3	-155.7	-80.6
Net Income	-35.5	-66.0	-188.3	-155.7	-80.6
Income Available to Com Excl ExtraOrd	-35.5	-66.0	-188.3	-155.7	-80.6
Income Available to Com Incl ExtraOrd	-35.5	-66.0	-188.3	-155.7	-80.6
Basic Weighted Average Shares	50.6	50.5	50.2	49.5	48.9
Basic EPS Excluding ExtraOrdinary Items	-0.70	-1.31	-3.75	-3.15	-1.65
Basic EPS Including ExtraOrdinary Items	-0.70	-1.31	-3.75	-3.15	-1.65
Dilution Adjustment	0.0	0.0	0.0	0.0	0.0
Diluted Net Income	-35.5	-66.0	-188.3	-155.7	-80.6
Diluted Weighted Average Shares	50.6	50.5	50.2	49.5	48.9
Diluted EPS Excluding ExtraOrd Items	-0.70	-1.31	-3.75	-3.15	-1.65
Diluted EPS Including ExtraOrd Items	-0.70	-1.31	-3.75	-3.15	-1.65
DPS-Ordinary Shares	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Normalized Income Before Taxes	-61.9	-66.8	-117.9	-132.4	-111.4
Inc Tax Ex Impact of Sp Items	-26.4	-1.5	23.4	16.7	-39.5
Normalized Income After Taxes	-35.5	-65.3	-141.3	-149.1	-71.8
Normalized Inc. Avail to Com.	-35.5	-65.3	-141.3	-149.1	-71.8
Basic Normalized EPS	-0.70	-1.29	-2.81	-3.01	-1.47
Diluted Normalized EPS	-0.70	-1.29	-2.81	-3.01	-1.47
Research and development	40.1	43.5	55.4	57.5	65.5
Interest Expense	-	-	-	-	0.2
Advertising Costs	-	-	-	-	0.2
BC - Depreciation of Fixed Assets	16.9	-	-	-	-
Depreciation	-	10.8	26.4	32.2	32.3
Rental Expense	4.7	4.8	5.4	5.7	6.0
Amort of Intangibles, Supplemental	-	1.2	1.7	-	-
Current Tax - Domestic	-1.9	-0.2	-2.4	-25.3	-32.2
Current Tax - State	0.1	0.0	-0.1	0.1	1.0
Current Tax - Foreign	-0.1	-0.5	2.7	0.8	2.2
Current Tax - Total	-2.0	-0.7	0.2	-24.4	-29.0
Deferred Tax - Federal	0.0	0.0	-0.1	30.9	-9.2
Deferred Tax - State	-25.5	0.0	0.0	8.5	-6.0
Deferred Tax - Foreign	1.1	-1.2	-2.0	-1.8	0.0
Deferred Tax - Total	-24.5	-1.2	-2.1	37.6	-15.3
Income Tax - Total	-26.4	-1.9	-1.9	13.2	-44.3
401(k) Savings Plan	0.8	0.6	0.2	0.9	1.2
Tax Qlfd.-Profit Sharing Retirement Plan	-	-	-	-	0.7
Total Pension Expense	0.8	0.6	0.2	0.9	1.9

Annual Balance Sheet

Financials in: USD (mil)

	29-Dec-2012	31-Dec-2011	25-Dec-2010	26-Dec-2009	27-Dec-2008
UpdateType/Date	Updated Normal 29-Dec-2012	Updated Normal 31-Dec-2011	Reclassified Normal 31-Dec-2011	Updated Normal 26-Dec-2009	Updated Normal 27-Dec-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Auditor	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP
Auditor Opinion	Unqualified with Explanation	Unqualified	Unqualified	Unqualified	Unqualified with Explanation
Cash and cash equivalents	72.2	139.0	121.2	122.0	337.9
Marketable securities	93.5	157.6	226.0	327.2	185.0
Restricted cash	-	0.0	0.4	0.0	-
A/R - Gross	29.2	12.9	29.4	38.7	38.3
Doubtful Account	-0.3	-0.2	-0.8	-9.3	-4.2
Raw Materials	8.7	5.7	2.7	2.4	2.1
Work in Progress	8.7	5.9	16.8	11.5	7.1
Finished Goods	6.2	6.4	5.5	6.1	1.8
Manufacturing & Other Expenses	-	-	-	5.6	7.8
Deferred Taxes	4.6	1.2	0.3	3.3	23.0
Refundable income taxes	5.7	0.9	0.0	26.8	29.4
Prepaid expenses and other current asset	10.6	7.5	14.7	12.3	14.7
Total Current Assets	239.2	337.0	416.3	546.6	643.0
Intangible, net	-	0.0	-	-	-
Goodwill	31.0	-	-	-	-
Goodwill	-	0.0	-	-	-
Restricted Cash	0.3	0.3	0.3	0.7	0.7
Land	-	-	-	-	0.0
Buildings	0.8	0.8	0.0	-	0.0
Mach. & Equip.	142.7	127.3	115.8	115.9	109.8
Computer	38.1	36.3	35.5	34.8	28.4
Furn. & Fixt.	6.2	6.1	6.2	7.2	6.9
Leasehold improvements	71.4	70.1	69.9	71.8	70.7
Construction	13.4	12.5	17.8	14.4	15.0
Depreciation	-227.1	-218.0	-208.0	-146.4	-116.9
Deferred Taxes	4.2	6.0	5.4	2.2	20.6
Intangible, Gross	83.5	5.9	5.9	-	-
Amortization	-9.3	-2.7	-1.5	-	-
Other Assets	1.2	1.5	2.3	8.7	7.7
Total Assets	395.7	383.1	466.1	656.0	785.7
Cur. Portion LT Debt excl Capital Lease	0.6	-	-	-	-
Capital leases, current portion	-	0.0	-	-	-
Accounts Payable	21.0	9.7	14.9	29.3	33.2
Deferred Rent	0.1	0.1	0.2	0.5	0.5
Accrued liabilities	17.1	13.8	23.8	22.9	25.7
Income taxes payable	0.0	0.1	1.9	0.5	1.9
Deferred Revenue	6.2	4.8	4.6	10.9	4.9
Total Current Liabilities	45.0	28.6	45.5	64.0	66.2
Capital leases, net of current portion	0.3	-	-	-	-
Capital leases, net of current portion	-	0.0	-	-	-
Total Long Term Debt	0.3	0.0	-	-	-
Long-term income taxes payable	3.0	4.1	4.2	6.4	7.7
Deferred tax liability	-	-	-	2.1	0.0
Deferred rent and other liabilities	8.0	3.7	5.1	5.6	5.7
Total Liabilities	56.4	36.4	54.9	78.2	79.6
Common Stock	0.1	0.1	0.1	0.1	0.0
Paid-In Capital	681.2	652.0	651.3	630.3	602.3
Accumulated other comprehensive income	1.7	2.7	2.0	1.3	1.9
Accumulated deficit	-343.7	-308.1	-242.1	-53.9	101.8
Total Equity	339.3	346.7	411.2	577.8	706.1
Total Liabilities & Shareholders' Equity	395.7	383.1	466.1	656.0	785.7
S/O-Ordinary Shares	53.3	49.3	50.6	49.8	49.1
Total Common Shares Outstanding	53.3	49.3	50.6	49.8	49.1
T/S-Ordinary Shares	0.0	0.0	0.0	0.0	0.0
Accumulated Intangible Amort, Suppl.	9.3	2.7	1.5	-	-
Deferred Revenue - Current	6.2	4.8	4.6	10.9	4.9
Full-Time Employees	1,021	709	729	808	940
Number of Common Shareholders	154	58	62	68	80
Capital Lease Payments Due within 1 Year	0.6	-	-	-	-
Capital Lease Payments Due in Year 3	0.3	-	-	-	-
Capital Lease Payments Due in Year 5	0.0	-	-	-	-
Capital Leases - Remaining Maturities	0.0	-	-	-	-
Total Capital Leases, Supplemental	0.9	-	-	-	-
Operating Lease due Within 1 Year	3.7	3.8	3.9	5.6	5.2
Operating Leases due Within 3 Years	5.7	6.5	5.7	7.9	8.6
Operating Leases due Within 5 Years	5.0	4.8	5.6	1.2	3.6
Operating Leases due After 5 Years	10.0	12.5	15.0	4.5	5.1
Total Operating Leases, Supplemental	24.4	27.7	30.1	19.2	22.4

Annual Cash Flows

Financials in: USD (mil)

	29-Dec-2012	31-Dec-2011	25-Dec-2010	26-Dec-2009	27-Dec-2008
Period Length	52 Weeks	52 Weeks	52 Weeks	52 Weeks	52 Weeks
UpdateType/Date	Updated Normal 29-Dec-2012	Updated Normal 31-Dec-2011	Updated Normal 25-Dec-2010	Reclassified Normal 31-Dec-2011	Updated Normal 27-Dec-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP
Auditor Opinion	Unqualified with Explanation	Unqualified	Unqualified	Unqualified	Unqualified with Explanation
Net Income	-35.5	-66.0	-188.3	-155.7	-80.6
Depreciation	16.9	10.8	28.2	32.7	32.2
Gain on settlement of litigation	-3.3	-	-	-	-
Amortization of investments	0.1	0.5	0.5	0.2	-
Stock-based compensation expense	13.0	13.8	17.6	20.8	22.9
Deferred Taxes	-24.5	-2.0	-2.1	39.1	-15.3
Excess tax benefits from equity based co	-	0.0	0.0	-0.8	-0.3
Prov. Doubtful Acct.	0.1	-0.3	-1.1	5.0	4.1
Write-offs and loss on disposal of long-	0.0	0.0	0.4	0.4	-
Prov. Inventories	7.2	7.9	11.4	7.0	16.3
Disposal of Assets	-	-	-	-	0.6
Restructuring	0.5	-1.6	9.0	0.4	1.0
Foreign currency transaction (gains) / l	1.3	0.3	-0.3	-0.6	0.0
Gain on release of secured borrowing	0.0	0.0	-3.5	0.0	0.0
Impairment of long-lived assets	0.4	0.5	56.4	1.3	4.4
Accounts Receivable	5.2	16.8	3.2	0.6	31.2
Inventories	-0.9	-1.2	-11.6	-9.4	-6.1
Prepaid & Other	0.8	5.6	-1.6	0.4	-0.2
Refundable income taxes	0.0	-0.9	25.8	2.7	-27.4
Other assets	0.4	1.9	0.1	6.4	2.3
Accounts Payable	-5.9	-5.1	-13.0	-0.3	-1.6
Accrued Liabs.	-1.1	-9.6	4.6	-5.6	-3.5
Income Tax Payable	-2.1	-1.3	-0.7	-3.0	-3.4
Deferred Rent	0.2	0.0	-1.9	-0.2	-0.4
Deferred Revenues	1.1	0.2	-6.2	5.9	-0.6
Cash from Operating Activities	-26.2	-29.3	-73.1	-52.7	-24.4
Proceeds from sales of property and equi	0.0	0.0	0.3	0.2	-
Capital Expenditures	-8.0	-7.7	-30.9	-19.2	-30.2
Purch. of Investment	-82.4	-246.7	-341.3	-587.8	-273.9
Maturities of Inv.	135.3	308.7	432.5	399.0	56.0
Acquisition of Business	-96.7	-	-	-	-
Payments made in connection with acquisi	-	0.0	0.0	-12.0	0.0
Sales of marketable securities	11.0	6.0	9.2	45.4	287.3
Change in restricted cash	0.0	0.4	0.0	0.0	1.6
Cash from Investing Activities	-40.7	60.7	69.8	-174.4	40.7
Issue Common Stock	2.3	3.5	3.7	7.1	5.7
Purchase and retirement of common stock	0.0	-16.4	-0.6	0.0	0.0
Proceeds from secured borrowing (see Not	-0.1	0.0	0.0	3.5	0.0
Excess tax benefits from equity based co	-	0.0	0.0	0.8	0.3
Cash from Financing Activities	2.1	-12.9	3.1	11.5	6.0
Foreign Exchange Effects	-2.0	-0.6	-0.7	-0.3	0.4
Net Change in Cash	-66.8	17.8	-0.8	-215.9	22.7
Net Cash - Beginning Balance	139.0	121.2	122.0	337.9	315.2
Net Cash - Ending Balance	72.2	139.0	121.2	122.0	337.9
Cash Taxes Paid	0.0	1.4	-24.9	-25.8	-1.2

 Financial Health

Key Indicators USD (mil)
Â	Quarter Ending 29-Jun-2013	Quarter Ending Yr Ago	Annual Year End 29-Dec-2012	1 Year Growth	3 Year Growth	5 Year Growth
Total Revenue (?)	62.7	14.45%	178.5	5.44%	9.67%	-17.32%
Research & Development (?)	10.1	-7.87%	40.1	-7.84%	-11.30%	-8.02%
Operating Income (?)	-8.5	-	-64.1	-	-	-
Income Available to Common Excl Extraord Items (?)	-8.4	-	-35.5	-	-	-
Basic EPS Excl Extraord Items (?)	-0.16	-	-0.70	-	-	-
Capital Expenditures (?)	5.1	29.10%	8.0	3.27%	-25.42%	-30.39%
Cash from Operating Activities (?)	-5.6	-	-26.2	-	-	-
Free Cash Flow (?)	-10.7	-	-34.2	-	-	-
Total Assets (?)	372.3	-1.61%	395.7	3.29%	-15.51%	-14.29%
Total Liabilities (?)	55.4	20.57%	56.4	54.93%	-10.30%	-10.52%
Total Long Term Debt (?)	0.0	-	0.3	-	-	-
Employees (?)	-	-	1021	44.01%	8.11%	-1.90%
Total Common Shares Outstanding (?)	54.2	8.50%	53.3	8.16%	2.31%	1.84%
Market Cap (?)	366.1	13.20%	243.0	-2.53%	-39.24%	-31.49%

Key Ratios
Â	29-Dec-2012	31-Dec-2011	25-Dec-2010	26-Dec-2009	27-Dec-2008
Profitability
Gross Margin (?)	14.19%	12.38%	-1.20%	0.61%	17.25%
Operating Margin (?)	-35.91%	-41.55%	-104.57%	-107.28%	-65.66%
Pretax Margin (?)	-34.71%	-40.09%	-100.87%	-105.25%	-59.43%
Net Profit Margin (?)	-19.91%	-38.97%	-99.85%	-115.01%	-38.36%
Financial Strength
Current Ratio (?)	5.31	11.78	9.14	8.54	9.71
Long Term Debt/Equity (?)	0.00	0.00	0.00	0.00	0.00
Total Debt/Equity (?)	0.00	0.00	0.00	0.00	0.00
Management Effectiveness
Return on Assets (?)	-9.13%	-15.54%	-33.56%	-21.59%	-9.83%
Return on Equity (?)	-10.36%	-17.41%	-38.08%	-24.25%	-11.02%
Efficiency
Receivables Turnover (?)	7.41	8.03	4.45	2.26	3.11
Inventory Turnover (?)	7.35	6.89	7.55	6.07	7.23
Asset Turnover (?)	0.46	0.40	0.34	0.19	0.26

Market Valuation USD (mil)
Enterprise Value (?)	202.1	.	Price/Sales (TTM) (?)	1.74
Enterprise Value/Revenue (TTM) (?)	0.99	.	Price/Book (MRQ) (?)	1.12
Market Cap as of 11-Oct-2013 (?)	356.1	.

Ratio Comparisons

	Company	Industry	Sector	S&P 500
Valuation Ratios
P/E Excluding Extraordinary (TTM) (?)	-	19.99	22.09	19.68
P/E High Excluding Extraordinary - Last 5 Yrs (?)	-	36.86	42.91	32.79
P/E Low Excluding Extraordinary - Last 5 Yrs (?)	-	12.99	12.36	10.71
Beta (?)	1.47	1.28	1.19	1.00
Price/Revenue (TTM) (?)	1.74	3.44	4.07	2.57
Price/Book (MRQ) (?)	1.12	3.87	4.73	3.67
Price to Tangible Book (MRQ) (?)	1.61	4.36	6.85	5.21
Price to Cash Flow Per Share (TTM) (?)	-	15.83	17.48	14.22
Price to Free Cash Flow Per Share (TTM) (?)	-	26.54	23.00	26.26
Dividends
Dividend Yield (?)	-	2.44%	1.65%	2.26%
Dividend Per Share - 5 Yr Avg (?)	0.00	1.35	0.71	1.99
Dividend 5 Yr Growth (?)	-	21.22%	7.13%	0.08%
Payout Ratio (TTM) (?)	-	18.90%	10.38%	25.98%
Growth Rates (%)
Revenue (MRQ) vs Qtr 1 Yr Ago (?)	14.45%	32.22%	28.50%	15.58%
Revenue (TTM) vs TTM 1 Yr Ago (?)	18.79%	40.54%	18.25%	17.69%
Revenue 5 Yr Growth (?)	-17.32%	11.04%	16.94%	8.97%
EPS (MRQ) vs Qtr 1 Yr Ago (?)	-83.56%	50.47%	41.24%	19.49%
EPS (TTM) vs TTM 1 Yr Ago (?)	31.67%	130.87%	49.53%	32.55%
EPS 5 Yr Growth (?)	-	7.09%	20.44%	9.86%
Capital Spending 5 Yr Growth (?)	-30.39%	-26.65%	9.78%	-2.04%
Financial Strength
Quick Ratio (MRQ) (?)	4.56	3.02	1.98	1.24
Current Ratio (MRQ) (?)	5.14	3.90	2.38	1.79
LT Debt/Equity (MRQ) (?)	0.00	0.19	0.31	0.64
Total Debt/Equity (MRQ) (?)	0.00	0.21	0.36	0.73
Interest Coverage (TTM) (?)	-	11.34	11.30	13.80
Profitability Ratios (%)
Gross Margin (TTM) (?)	14.93%	54.52%	55.32%	45.21%
Gross Margin - 5 Yr Avg (?)	9.20%	49.69%	53.24%	44.91%
EBITD Margin (TTM) (?)	-14.58%	27.82%	25.78%	24.43%
EBITD Margin - 5 Yr Avg (?)	-44.93%	18.02%	21.39%	22.84%
Operating Margin (TTM) (?)	-33.62%	24.80%	22.29%	20.63%
Operating Margin - 5 Yr Avg (?)	-69.72%	13.57%	17.62%	18.28%
Pretax Margin (TTM) (?)	-32.82%	24.89%	22.54%	17.95%
Pretax Margin - 5 Yr Avg (?)	-66.60%	14.88%	18.75%	17.10%
Net Profit Margin (TTM) (?)	-20.59%	19.30%	17.35%	13.65%
Net Profit Margin - 5 Yr Avg (?)	-59.65%	10.91%	12.72%	12.10%
Effective Tax Rate (TTM) (?)	-	21.71%	23.73%	28.45%
Effective Tax rate - 5 Yr Avg (?)	-	23.58%	24.82%	29.92%
Management Effectiveness (%)
Return on Assets (TTM) (?)	-11.21%	15.21%	12.89%	8.54%
Return on Assets - 5 Yr Avg (?)	-18.04%	8.48%	10.70%	8.40%
Return on Investment (TTM) (?)	-12.65%	15.22%	13.09%	7.90%
Return on Investment - 5 Yr Avg (?)	-19.86%	8.60%	11.50%	8.27%
Return on Equity (TTM) (?)	-12.95%	21.72%	25.23%	19.72%
Return on Equity - 5 Yr Avg (?)	-20.31%	11.50%	21.05%	20.06%
Efficiency
Revenue/Employee (TTM) (?)	200,067.60	514,699.51	617,868.03	927,613.77
Net Income/Employee (TTM) (?)	-41,190.01	106,063.20	132,630.14	116,121.92
Receivables Turnover (TTM) (?)	6.13	10.12	8.08	13.25
Inventory Turnover (TTM) (?)	7.45	5.67	19.61	14.53
Asset Turnover (TTM) (?)	0.54	0.82	0.75	0.93

 Annual Ratios

	29-Dec-2012	31-Dec-2011	25-Dec-2010	26-Dec-2009	27-Dec-2008
Financial Strength
Current Ratio (?)	5.31	11.78	9.14	8.54	9.71
Quick/Acid Test Ratio (?)	4.45	10.85	8.26	7.90	8.86
Working Capital (?)	194.1	308.4	370.8	482.6	576.8
Long Term Debt/Equity (?)	0.00	0.00	0.00	0.00	0.00
Total Debt/Equity (?)	0.00	0.00	0.00	0.00	0.00
Long Term Debt/Total Capital (?)	0.00	0.00	0.00	0.00	0.00
Total Debt/Total Capital (?)	0.00	0.00	0.00	0.00	0.00
Payout Ratio (?)	0.00%	0.00%	0.00%	0.00%	0.00%
Total Capital (?)	340.2	346.7	411.2	577.8	706.1
Efficiency
Asset Turnover (?)	0.46	0.40	0.34	0.19	0.26
Inventory Turnover (?)	7.35	6.89	7.55	6.07	7.23
Days In Inventory (?)	49.68	53.01	48.34	60.15	50.47
Receivables Turnover (?)	7.41	8.03	4.45	2.26	3.11
Days Receivables Outstanding (?)	49.23	45.45	82.06	161.45	117.28
Revenue/Employee (?)	174,863	238,822	258,663	167,494	223,605
Operating Income/Employee (?)	-62,799	-99,241	-270,477	-179,686	-146,820
EBITDA/Employee (?)	-46,246	-82,316	-231,931	-139,834	-112,459
Profitability
Gross Margin (?)	14.19%	12.38%	-1.20%	0.61%	17.25%
Operating Margin (?)	-35.91%	-41.55%	-104.57%	-107.28%	-65.66%
EBITDA Margin (?)	-26.45%	-34.47%	-89.67%	-83.49%	-50.29%
EBIT Margin (?)	-35.91%	-41.55%	-104.57%	-107.28%	-65.66%
Pretax Margin (?)	-34.71%	-40.09%	-100.87%	-105.25%	-59.43%
Net Profit Margin (?)	-19.91%	-38.97%	-99.85%	-115.01%	-38.36%
R&D Expense/Revenue (?)	22.48%	25.72%	29.37%	42.49%	31.17%
COGS/Revenue (?)	85.81%	87.62%	101.20%	99.39%	82.75%
SG&A Expense/Revenue (?)	27.58%	27.58%	35.43%	57.95%	45.30%
Management Effectiveness
Return on Assets (?)	-9.13%	-15.54%	-33.56%	-21.59%	-9.83%
Return on Equity (?)	-10.36%	-17.41%	-38.08%	-24.25%	-11.02%
Valuation
Free Cash Flow/Share (?)	-0.64	-0.75	-2.06	-1.44	-1.11
Operating Cash Flow/Share  (?)	-0.49	-0.60	-1.44	-1.06	-0.50

Current Market Multiples
Market Cap/Earnings (TTM) (?)	-8.20
Market Cap/Equity (MRQ) (?)	1.12
Market Cap/Revenue (TTM) (?)	1.74
Market Cap/EBIT (TTM) (?)	-5.65
Market Cap/EBITDA (TTM) (?)	-11.95
Enterprise Value/Earnings (TTM) (?)	-4.65
Enterprise Value/Equity (MRQ) (?)	0.64
Enterprise Value/Revenue (TTM) (?)	0.99
Enterprise Value/EBIT (TTM) (?)	-3.21
Enterprise Value/EBITDA (TTM) (?)	-6.79

Stock Report

Stock Snapshot

Traded: NASDAQ: FORM

As of 11-Oct-2013    US Dollars

Recent Price	$6.53	EPS	$-0.70
52 Week High	$7.75	Price/Sales	1.99
52 Week Low	$3.70	Price/Book	1.03
Avg. Volume (mil)	0.47	Beta	1.47
Market Value (mil)	$356.10

	Price % Change	Rel S&P 500%
4 Week	-9.74%	-10.55%
13 Week	-6.18%	-7.45%
52 Week	41.96%	19.42%
Year to Date	43.20%	19.91%

2 Year Weekly End Price & Volume

Tooltip

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Stock History

Market Cap History
	29-Jun-13	% Chg	30-Mar-13	% Chg	29-Dec-12	% Chg	29-Sep-12	% Chg	30-Jun-12	% Chg
Total Common Shares Outstanding	54	0.5	54	1.2	53	6.0	50	0.5	50	0.8
Market Cap	366.1	44.4	253.5	4.3	243.0	-13.5	280.9	-13.2	323.4	16.8

Yearly Price History
	2013	% Chg	2012	% Chg	2011	% Chg	2010	% Chg	2009	% Chg
High Price	7.75	12.0	6.92	-37.4	11.05	-50.0	22.10	-15.3	26.08	-23.0
Low Price	4.30	16.2	3.70	-20.9	4.68	-32.1	6.89	-47.4	13.10	15.3
Year End Price	6.53	43.2	4.56	-9.9	5.06	-43.0	8.88	-59.2	21.77	49.1

Monthly Price History
Price Ending Date	Open	High	Low	Close	Volume
11-Oct-13	6.87	6.95	6.16	6.53	2,882,704
30-Sep-13	6.14	7.35	6.04	6.86	8,225,160
30-Aug-13	7.50	7.73	5.86	6.07	12,554,994
31-Jul-13	6.82	7.75	6.28	7.27	10,088,455
28-Jun-13	5.95	7.00	5.88	6.75	11,428,569
31-May-13	5.02	5.94	4.73	5.89	12,967,373
30-Apr-13	5.20	5.20	4.30	4.95	6,311,034
28-Mar-13	4.99	5.11	4.60	4.70	3,831,677
28-Feb-13	4.99	5.25	4.58	5.02	5,139,608
31-Jan-13	4.69	5.25	4.56	5.01	4,941,742
31-Dec-12	4.44	4.82	4.24	4.56	4,212,279
30-Nov-12	4.58	4.99	3.70	4.43	4,526,280
31-Oct-12	5.62	5.69	4.49	4.56	6,102,641

Standard & Poor’s

United States of America Long-Term Rating Lowered To 'AA+' Due To Political Risks, Rising Debt Burden; Outlook Negative

Publication date: 05-Aug-2011 20:13:14 EST

---

• We have lowered our long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA' and affirmed the 'A-1+' short-term rating.

· We have also removed both the short- and long-term ratings from CreditWatch negative.

· The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics.

· More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011.

· Since then, we have changed our view of the difficulties in bridging the gulf between the political parties over fiscal policy, which makes us pessimistic about the capacity of Congress and the Administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government's debt dynamics any time soon.

· The outlook on the long-term rating is negative. We could lower the long-term rating to 'AA' within the next two years if we see that less reduction in spending than agreed to, higher interest rates, or new fiscal pressures during the period result in a higher general government debt trajectory than we currently assume in our base case.

TORONTO (Standard & Poor's) Aug. 5, 2011--Standard & Poor's Ratings Services said today that it lowered its long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA'. Standard & Poor's also said that the outlook on the long-term rating is negative. At the same time, Standard & Poor's affirmed its 'A-1+' short-term rating on the U.S. In addition, Standard & Poor's removed both ratings from CreditWatch, where they were placed on July 14, 2011, with negative implications.

The transfer and convertibility (T&C) assessment of the U.S.--our assessment of the likelihood of official interference in the ability of U.S.-based public- and private-sector issuers to secure foreign exchange for

debt service--remains 'AAA'.

We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, especially on entitlements, or on reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process. We also believe that the fiscal consolidation plan that Congress and the Administration agreed to this week falls short of the amount that we believe is necessary to stabilize the general government debt burden by the middle of the decade.

Our lowering of the rating was prompted by our view on the rising public debt burden and our perception of greater policymaking uncertainty, consistent with our criteria (see "Sovereign Government Rating Methodology and Assumptions ," June 30, 2011, especially Paragraphs 36-41). Nevertheless, we view the U.S. federal government's other economic, external, and monetary credit attributes, which form the basis for the sovereign rating, as broadly unchanged.

We have taken the ratings off CreditWatch because the Aug. 2 passage of the Budget Control Act Amendment of 2011 has removed any perceived immediate threat of payment default posed by delays to raising the government's debt ceiling. In addition, we believe that the act provides sufficient clarity to allow us to evaluate the likely course of U.S. fiscal policy for the next few years.

The political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy. Despite this year's wide-ranging debate, in our view, the differences between political parties have proven to be extraordinarily difficult to bridge, and, as we see it, the resulting agreement fell well short of the comprehensive fiscal consolidation program that some proponents had envisaged until quite recently. Republicans and Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating to the Select Committee decisions on more comprehensive measures. It appears that for now, new revenues have dropped down on the menu of policy options. In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements,

the containment of which we and most other independent observers regard as key to long-term fiscal sustainability.

Our opinion is that elected officials remain wary of tackling the structural issues required to effectively address the rising U.S. public debt burden in a manner consistent with a 'AAA' rating and with 'AAA' rated sovereign peers (see Sovereign Government Rating Methodology and Assumptions," June 30, 2011, especially Paragraphs 36-41). In our view, the difficulty in framing a consensus on fiscal policy weakens the government's ability to manage public finances and diverts attention from the debate over how to achieve more balanced and dynamic economic growth in an era of fiscal stringency and private-sector deleveraging (ibid). A new political consensus might (or might not) emerge after the 2012 elections, but we believe that by then, the government debt burden will likely be higher, the needed medium-term fiscal adjustment potentially greater, and the inflection point on the U.S. population's demographics and other age-related spending drivers closer at hand (see "Global Aging 2011: In The U.S., Going Gray Will Likely Cost Even More Green, Now," June 21, 2011).

Standard & Poor's takes no position on the mix of spending and revenue measures that Congress and the Administration might conclude is appropriate for putting the U.S.'s finances on a sustainable footing.

The act calls for as much as $2.4 trillion of reductions in expenditure growth over the 10 years through 2021. These cuts will be implemented in two steps: the $917 billion agreed to initially, followed by an additional $1.5 trillion that the newly formed Congressional Joint Select Committee on Deficit Reduction is supposed to recommend by November 2011. The act contains no measures to raise taxes or otherwise enhance revenues, though the committee could recommend them.

The act further provides that if Congress does not enact the committee's recommendations, cuts of $1.2 trillion will be implemented over the same time period. The reductions would mainly affect outlays for civilian discretionary spending, defense, and Medicare. We understand that this fall-back mechanism is designed to encourage Congress to embrace a more balanced mix of expenditure savings, as the committee might recommend.

We note that in a letter to Congress on Aug. 1, 2011, the Congressional Budget Office (CBO) estimated total budgetary savings under the act to be at least $2.1 trillion over the next 10 years relative to its baseline assumptions. In updating our own fiscal projections, with certain modifications outlined below, we have relied on the CBO's latest "Alternate Fiscal Scenario" of June 2011, updated to include the CBO assumptions contained in its Aug. 1 letter to Congress. In general, the CBO's "Alternate Fiscal Scenario" assumes a continuation of recent Congressional action overriding existing law.

We view the act's measures as a step toward fiscal consolidation. However, this is within the framework of a legislative mechanism that leaves open the details of what is finally agreed to until the end of 2011, and Congress and the Administration could modify any agreement in the future. Even assuming that at least $2.1 trillion of the spending reductions the act envisages are implemented, we maintain our view that the U.S. net general government debt burden (all levels of government combined, excluding liquid financial assets) will likely continue to grow. Under our revised base case fiscal scenario--which we consider to be consistent with a 'AA+' long-term rating and a negative outlook--we now project that net general government debt would rise from an estimated 74% of GDP by the end of 2011 to 79% in 2015 and 85% by 2021. Even the projected 2015 ratio of sovereign indebtedness is high in relation to those of peer credits and, as noted, would continue to rise under the act's revised policy settings.

Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act. Key macroeconomic assumptions in the base case scenario include trend real GDP growth of 3% and consumer price inflation near 2% annually over the decade.

Our revised upside scenario--which, other things being equal, we view as consistent with the outlook on the 'AA+' long-term rating being revised to stable--retains these same macroeconomic assumptions. In addition, it incorporates $950 billion of new revenues on the assumption that the 2001 and 2003 tax cuts for high earners lapse from 2013 onwards, as the Administration is advocating. In this scenario, we project that the net general government debt would rise from an estimated 74% of GDP by the end of 2011 to 77% in 2015 and to 78% by 2021.

Our revised downside scenario--which, other things being equal, we view as being consistent with a possible further downgrade to a 'AA' long-term rating--features less-favorable macroeconomic assumptions, as outlined below and also assumes that the second round of spending cuts (at least $1.2 trillion) that the act calls for does not occur. This scenario also assumes somewhat higher nominal interest rates for U.S. Treasuries. We still believe that the role of the U.S. dollar as the key reserve currency confers a government funding advantage, one that could change only slowly over time, and that Fed policy might lean toward continued loose monetary policy at a time of fiscal tightening. Nonetheless, it is possible that interest rates could rise if investors re-price relative risks. As a result, our alternate scenario factors in a 50 basis point (bp)-75 bp rise in 10-year bond yields relative to the base and upside cases from 2013 onwards. In this scenario, we project the net public debt burden would rise from 74% of GDP in 2011 to 90% in 2015 and to 101% by 2021.

Our revised scenarios also take into account the significant negative revisions to historical GDP data that the Bureau of Economic Analysis announced on July 29. From our perspective, the effect of these revisions underscores two related points when evaluating the likely debt trajectory of the U.S. government. First, the revisions show that the recent recession was deeper than previously assumed, so the GDP this year is lower than previously thought in both nominal and real terms. Consequently, the debt burden is slightly higher. Second, the revised data highlight the sub-par path of the current economic recovery when compared with rebounds following previous post-war recessions. We believe the sluggish pace of the current economic recovery could be consistent with the experiences of countries that have had financial crises in which the slow process of debt deleveraging in the private sector leads to a persistent drag on demand. As a result, our downside case scenario assumes relatively modest real trend GDP growth of 2.5% and inflation of near 1.5% annually going forward.

When comparing the U.S. to sovereigns with 'AAA' long-term ratings that we view as relevant peers--Canada, France, Germany, and the U.K.--we also observe, based on our base case scenarios for each, that the trajectory of the U.S.'s net public debt is diverging from the others. Including the U.S., we estimate that these five sovereigns will have net general government debt to GDP ratios this year ranging from 34% (Canada) to 80% (the U.K.), with the U.S. debt burden at 74%. By 2015, we project that their net public debt to GDP ratios will range between 30% (lowest, Canada) and 83% (highest, France), with the U.S. debt burden at 79%. However, in contrast with the U.S., we project that the net public debt burdens of these other sovereigns will begin to decline, either before or by 2015.

Standard & Poor's transfer T&C assessment of the U.S. remains 'AAA'. Our T&C assessment reflects our view of the likelihood of the sovereign restricting other public and private issuers' access to foreign exchange needed to meet debt service. Although in our view the credit standing of the U.S. government has deteriorated modestly, we see little indication that official interference of this kind is entering onto the policy agenda of either Congress or the Administration. Consequently, we continue to view this risk as being highly remote.

The outlook on the long-term rating is negative. As our downside alternate fiscal scenario illustrates, a higher public debt trajectory than we currently assume could lead us to lower the long-term rating again. On the other hand, as our upside scenario highlights, if the recommendations of the Congressional Joint Select Committee on Deficit Reduction--independently or coupled with other initiatives, such as the lapsing of the 2001 and 2003 tax cuts for high earners--lead to fiscal consolidation measures beyond the minimum mandated, and we believe they are likely to slow the deterioration of the government's debt dynamics, the long-term rating could stabilize at 'AA+'.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.63
UK Pound	1	Rs.99.94
Euro	1	Rs.85.14

INFORMATION DETAILS

Report Prepared by :

NIS

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.