HAYWARD, Calif., July 28, 2016 /PRNewswire/ -- Ultra Clean
Holdings, Inc. (Nasdaq: UCTT), a leading developer and supplier of
critical systems and subsystems for the semiconductor capital
equipment, flat panel, medical, energy and research industries,
today reported its financial results for the second quarter ended
June 24, 2016.
"The second quarter saw double digit sequential revenue growth,
reflecting continued strength in the semiconductor capital
equipment market," said Jim
Scholhamer, UCT's Chief Executive Officer. "We again made
strides on our strategic initiatives as an integrated manufacturing
partner through our continued investments to better meet our
customers' needs. With the ongoing transition to 3D semiconductor
device architectures and 10nm investments, our exposure to these
high growth areas presents us with more opportunities to play an
integral role with our customers."
GAAP Financial Results
Total revenue for the
second quarter of 2016 was $129.8
million, an increase of 15.7% compared to the first quarter
of 2016 and 10.4% compared to the same period a year ago.
Semiconductor revenue increased 10.6% compared to the first quarter
of 2016 and 6.0% compared to the same period a year ago. Total
revenue from outside the U.S. in the second quarter of 2016 rose
18.9% sequentially and 52.6% compared to the same period a year
ago.
Gross margin for the second quarter of 2016 was 14.7%, compared
to 13.0% for the first quarter of 2016 and 16.0% for the same
period a year ago.
Net income for the second quarter of fiscal 2016 was
$0.7 million, or $0.02 per share (basic and diluted), compared to
net loss of $3.2 million, or
$0.10 per share (basic and diluted),
in the previous quarter and net income of $2.2 million, or $0.07 per share (basic and diluted), for the same
period a year ago.
Net cash increased $2.2 million
compared to the first quarter of 2016. Cash and cash equivalents at
the end of the second quarter of 2016 were $44.1 million, a decrease of $1.5 million compared to the first quarter of
2016. Outstanding debt was $69.9
million at the end of the second quarter of 2016, a decrease
of $3.7 million compared to the first
quarter of 2016.
Non-GAAP Financial
Results
Non-GAAP net income for the second quarter of
2016 was $3.2 million and non-GAAP
net income per diluted share was $0.10 for the second quarter of 2016. Non-GAAP
net income and non-GAAP net income per diluted share for the second
quarter of 2016 exclude (i) pre-tax charges of $1.4 million for intangible assets amortization
costs and $70,000 of costs related to
the closure of one of the Company's U.S. facilities, offset
partially by a corresponding increase in tax expense of
approximately $0.4 million, and (ii)
$1.4 million of income tax expense
related to income tax valuation allowances. This compares to
non-GAAP net income and non-GAAP net income per diluted share of
approximately breakeven for the first quarter of 2016 and non-GAAP
net income of $3.2 million and
non-GAAP net income per diluted share of $0.10 for the second quarter of 2015.
The Company has provided a reconciliation of GAAP to non-GAAP
financial measures in the financial statement tables included in
this press release.
Third Quarter 2016 Outlook
The Company expects revenue
to be between $133.0 million to $138.0
million and GAAP diluted net income per share to be
approximately breakeven. The Company expects non-GAAP net income
per diluted share, which excludes pre-tax charges for intangible
assets amortization costs of $1.4
million and costs associated with the executive transition
of $1.2 million to be in the range of
$0.11 to $0.14.
Conference Call
UCT will conduct a conference call
today, Thursday, July 28, 2016,
beginning at 1:45 p.m. PDT.
The call-in number is (877) 870-4263 (domestic) and (412) 317-0790
(international). A replay of the conference will be available
for seven days following the call at (877) 344-7529 (domestic) and
(412) 317-0088 (international). The confirmation number for
live broadcast and replay is 10089596 (all callers).
About Ultra Clean Holdings, Inc.
Ultra Clean
Holdings, Inc. is a leading developer and supplier of critical
systems and subsystems for the semiconductor capital equipment,
flat panel, medical, energy and research industries. Ultra Clean
offers its customers an integrated outsourced solution for gas
delivery systems and other subassemblies, improved
design-to-delivery cycle times, component neutral design and
manufacturing and component testing capabilities. Ultra Clean's
customers are primarily original equipment manufacturers for the
semiconductor capital equipment, flat panel, medical, energy and
research industries. Ultra Clean is headquartered in Hayward, California. Additional information is
available at www.uct.com.
Use of Non-GAAP Measures
Management uses non-GAAP net
income and net income per diluted share to evaluate the Company's
operating and financial results. The Company believes 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 of non-GAAP results
to U.S. GAAP results are included at the end of this
press release.
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", "forecast", "believes," "plan," "expect," "future,"'
"intends," "may," "will," "estimates," "predicts," 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 with respect to our third quarter 2016 revenue, diluted net
income per share and non-GAAP net income per diluted share. 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 25, 2015 as filed with the Securities
and Exchange Commission and subsequently filed quarterly reports on
Form 10-Q. 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:
Ultra Clean Holdings, Inc.
Sheri Brumm
Senior VP Finance and Chief Financial Officer
(510) 576-4704
|
ULTRA CLEAN
HOLDINGS, INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited; in
thousands, except per share data)
|
|
|
Three months ended
|
|
Six months ended
|
|
June
24,
|
|
June
26,
|
|
June
24,
|
|
June
26,
|
|
2016
|
|
2015
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
$
|
129,831
|
|
$
|
117,549
|
|
$
|
242,060
|
|
$
|
242,867
|
|
Cost of goods
sold
|
|
110,810
|
|
|
98,727
|
|
|
208,469
|
|
|
204,126
|
|
Gross
profit
|
|
19,021
|
|
|
18,822
|
|
|
33,591
|
|
|
38,741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
2,359
|
|
|
2,401
|
|
|
4,635
|
|
|
4,967
|
|
Sales and
marketing
|
|
2,785
|
|
|
2,805
|
|
|
5,718
|
|
|
5,650
|
|
General and
administrative
|
|
10,158
|
|
|
10,188
|
|
|
20,217
|
|
|
22,048
|
|
Total operating expenses
|
|
15,302
|
|
|
15,394
|
|
|
30,570
|
|
|
32,665
|
|
Income from
operations
|
|
3,719
|
|
|
3,428
|
|
|
3,021
|
|
|
6,076
|
|
Interest and other
income (expense), net
|
|
(836)
|
|
|
(359)
|
|
|
(1,927)
|
|
|
(1,315)
|
|
Income before
provision for income taxes
|
|
2,883
|
|
|
3,069
|
|
|
1,094
|
|
|
4,761
|
|
Income tax
provision
|
|
2,160
|
|
|
862
|
|
|
3,610
|
|
|
1,381
|
|
Net income
(loss)
|
$
|
723
|
|
$
|
2,207
|
|
$
|
(2,516)
|
|
$
|
3,380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.02
|
|
$
|
0.07
|
|
$
|
(0.08)
|
|
$
|
0.11
|
|
Diluted
|
$
|
0.02
|
|
$
|
0.07
|
|
$
|
(0.08)
|
|
$
|
0.11
|
|
Shares used in
computing net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
32,565
|
|
|
31,615
|
|
|
32,437
|
|
|
31,042
|
|
Diluted
|
|
32,792
|
|
|
31,777
|
|
|
32,437
|
|
|
31,358
|
|
ULTRA CLEAN
HOLDINGS, INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited; in
thousands)
|
|
|
|
|
|
|
|
|
|
June
24,
|
|
December
25,
|
|
2016
|
2015
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
44,053
|
|
$
|
50,103
|
|
Accounts
receivable, net of allowance
|
|
|
73,069
|
|
|
59,148
|
|
Inventory
|
|
|
90,302
|
|
|
72,716
|
|
Other current
assets
|
|
|
6,891
|
|
|
8,172
|
|
Total current assets
|
|
|
214,315
|
|
|
190,139
|
|
|
|
|
|
|
|
|
Equipment and
leasehold improvements, net
|
|
|
18,117
|
|
|
17,267
|
|
Goodwill
|
|
|
85,248
|
|
|
85,248
|
|
Purchased
intangibles, net
|
|
|
39,903
|
|
|
42,782
|
|
Other non-current
assets
|
|
|
753
|
|
|
717
|
|
Total
assets
|
|
$
|
358,336
|
|
$
|
336,153
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Bank
borrowings
|
|
$
|
12,992
|
|
$
|
12,744
|
|
Accounts
payable
|
|
|
64,712
|
|
|
39,660
|
|
Other current
liabilities
|
|
|
15,188
|
|
|
12,307
|
|
Total current liabilities
|
|
|
92,892
|
|
|
64,711
|
|
|
|
|
|
|
|
|
Bank borrowings, net
of current portion
|
|
|
56,934
|
|
|
62,795
|
|
Other long-term
liabilities
|
|
|
8,232
|
|
|
7,704
|
|
Total liabilities
|
|
|
158,058
|
|
|
135,210
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Common
stock
|
|
|
174,828
|
|
|
172,975
|
|
Retained
earnings
|
|
|
25,470
|
|
|
27,986
|
|
Accumulated
other comprehensive loss
|
|
|
(20)
|
|
|
(18)
|
|
Total stockholders' equity
|
|
|
200,278
|
|
|
200,943
|
|
Total liabilities and
stockholders' equity
|
|
$
|
358,336
|
|
$
|
336,153
|
|
ULTRA CLEAN
HOLDINGS, INC.
|
|
UNAUDITED
RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
|
|
|
|
Three Months
Ended
|
|
|
June 24,
2016
|
|
March 25,
2016
|
|
June 26,
2015
|
|
(in
thousands)
|
|
|
|
|
|
|
|
Reconciliation of
GAAP Net Income to Non-GAAP Net Income
|
|
|
|
|
|
|
|
Reported net income
(loss) on a GAAP basis
|
|
$
723
|
|
$
(3,239)
|
|
$
2,207
|
|
Amortization of
intangible assets (1)
|
|
1,440
|
|
1,440
|
|
1,355
|
|
Restructuring charges
(2)
|
|
70
|
|
177
|
|
-
|
|
Income tax effect of
non-GAAP adjustments (3)
|
|
(406)
|
|
(385)
|
|
(381)
|
|
Income tax effect of
valuation allowance (4)
|
|
1,384
|
|
1,876
|
|
-
|
|
Non-GAAP net income
(loss)
|
|
$
3,211
|
|
$
(131)
|
|
$
3,181
|
|
|
|
|
|
|
|
|
1
|
Amortization of intangible assets related to the
Company's acquisitions of AIT,
Marchi and Miconex
|
|
|
|
|
|
|
|
|
|
2
|
Adjustment to
previous restructuring reserve related to the abandonment
of one of the Company's
facilities
|
|
|
|
|
|
|
|
|
|
3
|
Tax effect on
amortization of intangible assets and restructuring charges based
on non-gaap tax rate
|
|
|
|
|
|
|
|
4
|
The Company's GAAP
tax expense is substantially higher than the Company's
non-GAAP tax expense, primarily
due to losses in the U.S. with full federal and state
valuation allowances. The
Company's non-GAAP tax rate and resulting non-GAAP tax
expense considers the tax
implications as if there was no federal or state valuation
allowance position in
effect.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
June 24,
2016
|
|
March 25,
2016
|
|
June 26,
2015
|
|
Reconciliation of
GAAP Earnings Per Diluted Share to Non-GAAP
|
|
|
|
|
|
|
|
Earnings Per Diluted
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income
(loss) on a GAAP basis
|
|
$
0.02
|
|
$
(0.10)
|
|
$
0.07
|
|
Amortization of
intangible assets
|
|
0.05
|
|
0.04
|
|
0.04
|
|
Restructuring
charges
|
|
0.00
|
|
0.01
|
|
-
|
|
Income tax effect of
non-GAAP adjustments
|
|
(0.01)
|
|
(0.01)
|
|
(0.01)
|
|
Income tax effect of
valuation allowance
|
|
0.04
|
|
0.06
|
|
-
|
|
Non-GAAP net income
(loss)
|
|
$
0.10
|
|
$
(0.00)
|
|
$
0.10
|
|
Weighted average
number of diluted shares (in thousands)
|
|
32,792
|
|
32,309
|
|
31,777
|
|
ULTRA CLEAN
HOLDINGS, INC.
|
|
UNAUDITED
RECONCILIATION OF GAAP TO NON-GAAP EFFECTIVE INCOME TAX
RATE
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
June 24,
2016
|
|
March 25,
2016
|
|
(in thousands, except
percentages)
|
|
|
|
|
|
Provision for income
taxes on a GAAP basis
|
|
$
2,160
|
|
$
1,450
|
|
Income tax effect of
non-GAAP adjustments (1)
|
|
406
|
|
385
|
|
Income tax effect of
valuation allowance (2)
|
|
(1,384)
|
|
(1,876)
|
|
Non-GAAP provision
for income taxes
|
|
$
1,182
|
|
$
(41)
|
|
|
|
|
|
|
Income before income
taxes on a GAAP basis
|
|
$
2,883
|
|
$
(1,789)
|
|
Amortization of
intangible assets
|
|
1,440
|
|
1,440
|
|
Restructuring
charges
|
|
70
|
|
177
|
|
Non-GAAP income
before income taxes
|
|
4,393
|
|
(172)
|
|
|
|
|
|
|
Effective income tax
rate on a GAAP basis
|
|
74.9%
|
|
(81.1%)
|
|
Non-GAAP effective
income tax rate
|
|
26.9%
|
|
23.9%
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Tax effect on
amortization of intangible assets and restructuring charges based
on non-gaap tax rate
|
|
|
|
|
|
|
|
2
|
The Company's GAAP
tax expense is substantially higher than the Company's
non-GAAP tax expense, primarily
due to losses in the U.S. with full federal and state
valuation allowances. The
Company's non-GAAP tax rate and resulting non-GAAP tax
expense considers the tax
implications as if there was no federal or state valuation
allowance position in
effect.
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ultra-clean-reports-second-quarter-2016-financial-results-300305880.html
SOURCE Ultra Clean Holdings, Inc.