The wafer probe card market continues to struggle as mobile devices continue to disrupt the desktop and laptop markets, and companies like FormFactor (NASDAQ:FORM) scramble to make the adjustment in a very competitive business.
While FormFactor blamed restructuring costs and the timing of shipments as the reason for weak cash flow in the first quarter, it guided for cash flow in the second quarter to be level or possibly come in at $3 million. That suggests there are more problems with cash flow than restructuring costs and timing issues experienced in the quarter.
The core issue is the general cost structure the company operates under, which is primarily affected by product architecture. Attempting to offer cost-effective solutions is...
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