PR Newswire
HAYWARD, Calif., July 27, 2023
HAYWARD, Calif., July 27, 2023 /PRNewswire/ -- Ultra Clean Holdings, Inc. (Nasdaq: UCTT), today reported its financial results for the second quarter ended June 30, 2023.
"The semiconductor industry continued to face some near-term headwinds in the second quarter," said Jim Scholhamer, CEO. "Our Products business performed as expected, however, we experienced pockets of weakness in other areas. While recent cost reduction initiatives are reflected in our financial results, we will continue to respond to current market conditions while driving strategic initiatives in preparation for the next industry ramp."
Second Quarter 2023 GAAP Financial Results
Total revenue was $421.5 million. Products contributed $362.5 million and Services added $59.0 million. Total gross margin was 16.2%, operating margin was 3.0%, and net loss was $(9.4) million or $(0.21) per diluted share. This compares to total revenue of $433.3 million, gross margin of 16.8%, operating margin of 2.9%, and net loss was $(3.4) million or $(0.08) per diluted share, in the prior quarter.
Second Quarter 2023 Non-GAAP Financial Results
On a non-GAAP basis, gross margin was 16.7%, operating margin was 5.0%, and net income was $7.1 million or $0.16 per diluted share. This compares to gross margin of 17.3%, operating margin of 5.1%, and net income of $7.6 million or $0.17 per diluted share in the prior quarter.
Third Quarter 2023 Outlook
The Company expects revenue in the range of $405.0 million to $455.0 million. The Company expects GAAP diluted net income (loss) per share to be between $(0.19) and $0.04 and non-GAAP diluted net income per share to be between $0.08 and $0.28.
Conference Call
The conference call and webcast will take place on Thursday, July 27, 2023 at 1:45 p.m. PT and can be accessed by dialing 1-844-826-3034 or 1-412-317-5179. No passcode is required. A replay of the call will be available by dialing 1-877-344-7529 or 1-412-317-0088 and entering the confirmation code 5731157. The Webcast will be available on the Investor Relations section of the Company's website at http://uct.com/investors/events/.
About Ultra Clean Holdings, Inc.
Ultra Clean Holdings, Inc. is a leading developer and supplier of critical subsystems, components and parts, and ultra-high purity cleaning and analytical services, primarily for the semiconductor industry. Under its Products division, UCT offers its customers an integrated outsourced solution for major subassemblies, improved design-to-delivery cycle times, design for manufacturability, prototyping, and high-precision manufacturing. Under its Services Division, UCT offers its customers tool chamber parts cleaning and coating, as well as micro-contamination analytical services. Ultra Clean is headquartered in Hayward, California. Additional information is available at www.uct.com.
Use of Non-GAAP Measures
In addition to providing results that are determined in accordance with Generally Accepted Accounting Principles in the United States of America ("GAAP"), management uses non-GAAP gross margin, non-GAAP operating margin and non-GAAP net income to evaluate the Company's operating and financial results. We believe the presentation of non-GAAP results is useful to investors for analyzing our core business and business trends and comparing performance to prior periods, along with enhancing investors' ability to view the Company's results from management's perspective. The presentation of this additional information should not be considered a substitute for results prepared in accordance with GAAP. Tables presenting reconciliations from GAAP results to non-GAAP results are included at the end of this press release.
The Company defines non-GAAP net income as net income (loss) before amortization of intangible assets, stock-based compensation, restructuring charges, acquisition activity costs, fair value adjustments, legal-related costs, Covid-19 related costs, net loss on divestitures and the tax effects of the foregoing adjustments.
A reconciliation of our guidance for non-GAAP net income per diluted share for the subsequent quarter is not available due to fluctuations in the geographic mix of our earnings from quarter to quarter, which impacts our tax rate and cannot be reasonably predicted or determined. As a result, such reconciliation is not available without unreasonable efforts and we are unable to determine the probable significance of the unavailable information.
Safe Harbor Statement
The foregoing information contains, or may be deemed to contain, "forward-looking statements" (as defined in the US Private Securities Litigation Reform Act of 1995) which reflect our current views with respect to future events and financial performance. We use words such as "anticipates," "projection," "outlook," "forecast," "believes," "plan," "expect," "future," "intends," "may," "will," "estimates," "see," "predicts," "should" and similar expressions to identify these forward-looking statements. Forward looking statements included in this press release include our expectations about the semiconductor capital equipment market and outlook. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, the Company's actual results may differ materially from the results predicted or implied by these forward-looking statements. These risks, uncertainties and other factors also include, among others, those identified in "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations'' and elsewhere in our annual report on Form 10-K for the year ended December 30, 2022, as filed with the Securities and Exchange Commission. Ultra Clean Holdings, Inc. undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise unless required by law.
Contact:
Rhonda Bennetto
SVP Investor Relations
[email protected]
ULTRA CLEAN HOLDINGS, INC. | |||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | July 1, | June 30, | July 1, | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||
Revenues: | |||||||||||||||||||
Product | $ | 362.5 | $ | 532.0 | $ | 731.1 | $ | 1,018.9 | |||||||||||
Services | 59.0 | 76.7 | 123.7 | 154.0 | |||||||||||||||
Total revenues | 421.5 | 608.7 | 854.8 | 1,172.9 | |||||||||||||||
Cost of revenues: | |||||||||||||||||||
Product | 311.1 | 441.1 | 626.2 | 840.6 | |||||||||||||||
Services | 42.3 | 49.2 | 87.5 | 100.1 | |||||||||||||||
Total cost of revenues | 353.4 | 490.3 | 713.7 | 940.7 | |||||||||||||||
Gross profit | 68.1 | 118.4 | 141.1 | 232.2 | |||||||||||||||
Operating expenses: | |||||||||||||||||||
Research and development | 7.2 | 7.2 | 14.3 | 14.1 | |||||||||||||||
Sales and marketing | 12.7 | 13.9 | 25.8 | 27.7 | |||||||||||||||
General and administrative | 35.6 | 46.2 | 76.0 | 93.5 | |||||||||||||||
Net loss on divestitures | — | 56.6 | — | 56.6 | |||||||||||||||
Total operating expenses | 55.5 | 123.9 | 116.1 | 191.9 | |||||||||||||||
Income (loss) from operations | 12.6 | (5.5) | 25.0 | 40.3 | |||||||||||||||
Interest income | 0.8 | 0.1 | 1.3 | 0.2 | |||||||||||||||
Interest expense | (11.8) | (7.3) | (23.6) | (13.7) | |||||||||||||||
Other income (expense), net | (1.5) | (0.3) | 1.3 | (0.4) | |||||||||||||||
Income (loss) before provision for income taxes | 0.1 | (13.0) | 4.0 | 26.4 | |||||||||||||||
Provision for income taxes | 8.3 | 8.7 | 11.8 | 17.3 | |||||||||||||||
Net income (loss) | (8.2) | (21.7) | (7.8) | 9.1 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | 1.2 | 3.4 | 5.0 | 6.3 | |||||||||||||||
Net income (loss) attributable to UCT | $ | (9.4) | $ | (25.1) | $ | (12.8) | $ | 2.8 | |||||||||||
Net income (loss) per share attributable to UCT common stockholders: | |||||||||||||||||||
Basic | $ | (0.21) | $ | (0.56) | $ | (0.29) | $ | 0.06 | |||||||||||
Diluted | $ | (0.21) | $ | (0.56) | $ | (0.29) | $ | 0.06 | |||||||||||
Shares used in computing net income (loss) per share: | |||||||||||||||||||
Basic | 44.7 | 45.2 | 44.8 | 45.1 | |||||||||||||||
Diluted | 44.7 | 45.2 | 44.8 | 45.7 | |||||||||||||||
ULTRA CLEAN HOLDINGS, INC. | ||||||||||
June 30, | December 30, | |||||||||
2023 | 2022 | |||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 320.8 | $ | 358.8 | ||||||
Accounts receivable, net of allowance | 178.6 | 253.7 | ||||||||
Inventories | 398.8 | 443.9 | ||||||||
Prepaid expenses and other current assets | 37.2 | 42.4 | ||||||||
Total current assets | 935.4 | 1,098.8 | ||||||||
Property, plant and equipment, net | 306.5 | 279.6 | ||||||||
Goodwill | 248.8 | 248.8 | ||||||||
Intangible assets, net | 176.5 | 187.9 | ||||||||
Deferred tax assets, net | 37.0 | 36.0 | ||||||||
Operating lease right-of-use assets | 128.3 | 99.0 | ||||||||
Other non-current assets | 11.2 | 10.8 | ||||||||
Total assets | $ | 1,843.7 | $ | 1,960.9 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
Current liabilities: | ||||||||||
Bank borrowings | $ | 17.8 | $ | 20.8 | ||||||
Accounts payable | 183.5 | 253.5 | ||||||||
Accrued compensation and related benefits | 40.0 | 52.5 | ||||||||
Operating lease liabilities | 17.6 | 17.1 | ||||||||
Other current liabilities | 35.4 | 45.3 | ||||||||
Total current liabilities | 294.3 | 389.2 | ||||||||
Bank borrowings, net of current portion | 467.1 | 493.0 | ||||||||
Deferred tax liabilities | 52.4 | 52.2 | ||||||||
Operating lease liabilities | 114.5 | 80.3 | ||||||||
Other liabilities | 9.2 | 9.2 | ||||||||
Total liabilities | 937.5 | 1,023.9 | ||||||||
Equity: | ||||||||||
