HAYWARD, Calif., Oct. 26, 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 third quarter ended
September 23, 2016.
"Strong momentum led to record revenues and significant
improvement on the bottom line this quarter," said Jim Scholhamer, President and CEO. "As a result
of our strategic focus on the semiconductor capital equipment
market, we are expanding our capabilities to cost-effectively meet
customers' dynamic needs. As the market continues its upward
trajectory, our solid customer relationships and growing market
position are enabling us to outpace the broader industry."
GAAP Financial Results
Total revenue for the
third quarter of 2016 was $146.2
million, an increase of 12.6% compared to the second quarter
of 2016 and 19.0% compared to the same period a year ago.
Semiconductor revenue increased 10.6% compared to the second
quarter of 2016 and 14.6% compared to the same period a year ago.
Total revenue from outside the U.S. rose 24.1% sequentially and
66.1% compared to the same period a year ago.
Gross margin for the third quarter of 2016 was 16.1%, compared
to 14.7% for the prior quarter and 15.4% for the same period a year
ago.
Net income for the third quarter was $2.6
million, or $0.08 per share
(basic and diluted), compared to net income of $0.7 million, or $0.02 per share (basic and diluted) in the
previous quarter, and net income of $1.7
million, or $0.05 per share
(basic and diluted) for the same period a year ago.
Net cash for the third quarter 2016 increased $3.9 million compared to the second quarter of
2016. Cash and cash equivalents were $47.3
million, an increase of $3.2
million compared to the second quarter of 2016. Outstanding
debt was $69.2 million, a decrease of
$0.7 million compared to the second
quarter of 2016.
Non-GAAP Financial
Results
Non-GAAP net income for the third quarter of
2016 was $5.7 million and non-GAAP
net income per diluted share was $0.17. Non-GAAP net income and non-GAAP net
income per diluted share exclude: (i) pre-tax charges of
$1.4 million for intangible assets
amortization costs, $0.9 million of
costs related to our executive transition, offset partially by the
reversal of a previously accrued expense of $0.1 million related to the closure of one of the
Company's U.S. facilities and by the corresponding increase in tax
expense from these items of approximately $0.6 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 $3.2 million and $0.10, respectively, and non-GAAP net income of
$3.1 million and non-GAAP net income
per diluted share of $0.10 for the
third 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.
Fourth Quarter 2016 Outlook
The Company expects
revenue to be between $146 million to $151
million and GAAP diluted net income per share to be between
$0.12 to $0.15. The Company expects
non-GAAP net income per diluted share to be in the range of
$0.17 to $0.20.
Conference Call
UCT will conduct a conference call
today, Wednesday, October 26, 2016,
beginning at 1:45 p.m. PT. 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 10094208 (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. 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 of non-GAAP results
to U.S. GAAP results are included at the end of this
press release. A reconciliation of our guidance for non-GAAP net
income per diluted share for the fourth quarter of fiscal 2016 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," "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 fourth quarter 2016 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 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:
Sheri
Brumm
UCT Senior VP Finance, CFO
510-576-4705
Annie Leschin
Investor Relations
415-775-1788
ULTRA CLEAN
HOLDINGS, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited; in
thousands, except per share data)
|
|
|
Three months ended
|
|
Nine months ended
|
|
September
23,
|
|
September
25,
|
|
September
23,
|
|
September
25,
|
2016
|
|
2015
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
$
|
146,154
|
|
$
|
122,816
|
|
$
|
388,214
|
|
$
|
365,683
|
Cost of goods
sold
|
|
122,663
|
|
|
103,868
|
|
|
331,132
|
|
|
307,994
|
Gross
profit
|
|
23,491
|
|
|
18,948
|
|
|
57,082
|
|
|
57,689
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
2,447
|
|
|
2,352
|
|
|
7,082
|
|
|
7,319
|
Sales and
marketing
|
|
2,819
|
|
|
2,844
|
|
|
8,537
|
|
|
8,494
|
General and
administrative
|
|
11,525
|
|
|
10,673
|
|
|
31,742
|
|
|
32,721
|
Total operating expenses
|
|
16,791
|
|
|
15,869
|
|
|
47,361
|
|
|
48,534
|
Income from
operations
|
|
6,700
|
|
|
3,079
|
|
|
9,721
|
|
|
9,155
|
Interest and other
income (expense), net
|
|
(1,336)
|
|
|
(756)
|
|
|
(3,263)
|
|
|
(2,071)
|
Income before
provision for income taxes
|
|
5,364
|
|
|
2,323
|
|
|
6,458
|
|
|
7,084
|
Income tax
provision
|
|
2,750
|
|
|
647
|
|
|
6,360
|
|
|
2,028
|
Net
income
|
$
|
2,614
|
|
$
|
1,676
|
|
$
|
98
|
|
$
|
5,056
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.08
|
|
$
|
0.05
|
|
$
|
—
|
|
$
|
0.16
|
Diluted
|
$
|
0.08
|
|
$
|
0.05
|
|
$
|
—
|
|
$
|
0.16
|
Shares used in
computing net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
32,759
|
|
|
31,993
|
|
|
32,544
|
|
|
31,359
|
Diluted
|
|
33,100
|
|
|
32,155
|
|
|
32,887
|
|
|
31,653
|
ULTRA CLEAN
HOLDINGS, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited; in
thousands)
|
|
|
|
|
|
|
|
September
23,
|
|
December
25,
|
2016
|
2015
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
47,270
|
|
$
|
50,103
|
Accounts
receivable, net of allowance
|
|
65,805
|
|
|
59,148
|
Inventory
|
|
89,015
|
|
|
72,716
|
Other current
assets
|
|
6,941
|
|
|
8,172
|
Total current assets
|
|
209,031
|
|
|
190,139
|
|
|
|
|
|
|
Equipment and
leasehold improvements, net
|
|
18,809
|
|
|
17,267
|
Goodwill
|
|
85,248
|
|
|
85,248
|
Purchased
intangibles, net
|
|
38,464
|
|
|
42,782
|
Other non-current
assets
|
|
743
|
|
|
717
|
Total
assets
|
$
|
352,295
|
|
$
|
336,153
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Bank
borrowings
|
$
|
15,196
|
|
$
|
12,744
|
Accounts
payable
|
|
51,954
|
|
|
39,660
|
Other current
liabilities
|
|
17,873
|
|
|
12,307
|
Total current liabilities
|
|
85,023
|
|
|
64,711
|
|
|
|
|
|
|
Bank borrowings, net
of current portion
|
|
54,023
|
|
|
62,795
|
Other long-term
liabilities
|
|
8,344
|
|
|
7,704
|
Total liabilities
|
|
147,390
|
|
|
135,210
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Common
stock
|
|
176,744
|
|
|
172,975
|
Retained
earnings
|
|
28,084
|
|
|
27,986
|
Accumulated
other comprehensive income (loss)
|
|
77
|
|
|
(18)
|
Total stockholders' equity
|
|
204,905
|
|
|
200,943
|
Total liabilities and
stockholders' equity
|
$
|
352,295
|
|
$
|
336,153
|
ULTRA CLEAN
HOLDINGS, INC.
|
UNAUDITED
RECONCILATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
23,
|
|
June 24,
|
|
March 26,
|
|
September
25,
|
|
September
23,
|
|
September
25,
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP Net Income to Non-GAAP Net Income (in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income
on a GAAP basis
|
$
2,614
|
|
$
723
|
|
$
(3,239)
|
|
$
1,676
|
|
$
98
|
|
$
5,056
|
Amortization of
intangible assets (1)
|
1,438
|
|
1,440
|
|
1,440
|
|
1,550
|
|
4,318
|
|
4,044
|
Executive transition
costs (2)
|
925
|
|
-
|
|
-
|
|
-
|
|
925
|
|
2,400
|
Restructuring charges
(3)
|
(105)
|
|
70
|
|
177
|
|
-
|
|
142
|
|
-
|
Acquisition costs
(4)
|
-
|
|
-
|
|
-
|
|
460
|
|
-
|
|
602
|
Income tax effect of
non-GAAP adjustments (5)
|
(574)
|
|
(406)
|
|
(385)
|
|
(563)
|
|
(1,365)
|
|
(2,017)
|
Income tax effect of
valuation allowance (6)
|
1,391
|
|
1,384
|
|
1,876
|
|
-
|
|
4,712
|
|
-
|
Non-GAAP net
income
|
$
5,689
|
|
$ 3,211
|
|
$
(131)
|
|
$
3,123
|
|
$
8,830
|
|
$
10,085
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP Income from operations to Non-GAAP Income from operations (in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Reported income from
operations on a GAAP basis
|
$
6,700
|
|
$ 3,719
|
|
$
(698)
|
|
$
3,079
|
|
$
9,721
|
|
$
9,155
|
Amortization of
intangible assets (1)
|
1,438
|
|
1,440
|
|
1,440
|
|
1,550
|
|
4,318
|
|
4,044
|
Executive transition
costs (2)
|
925
|
|
-
|
|
-
|
|
-
|
|
925
|
|
2,400
|
Restructuring charges
(3)
|
(105)
|
|
70
|
|
177
|
|
-
|
|
142
|
|
-
|
Acquisition costs
(4)
|
-
|
|
-
|
|
-
|
|
460
|
|
-
|
|
602
|
Non-GAAP income from
operations
|
$
8,958
|
|
$ 5,229
|
|
$
919
|
|
$
5,089
|
|
$
15,106
|
|
$
16,201
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP Operating margin to Non-GAAP Operating margin
|
|
|
|
|
|
|
|
|
|
|
|
Reported operating
margin on a GAAP basis
|
4.6%
|
|
2.9%
|
|
(0.6%)
|
|
2.5%
|
|
2.5%
|
|
2.6%
|
Amortization of
intangible assets (1)
|
1.0%
|
|
1.1%
|
|
1.3%
|
|
1.3%
|
|
1.1%
|
|
1.1%
|
Executive transition
costs (2)
|
0.6%
|
|
-
|
|
-
|
|
-
|
|
0.2%
|
|
0.7%
|
Restructuring charges
(3)
|
(0.1%)
|
|
0.0%
|
|
0.2%
|
|
-
|
|
0.0%
|
|
-
|
Acquisition costs
(4)
|
-
|
|
-
|
|
-
|
|
0.3%
|
|
-
|
|
0.2%
|
Non-GAAP operating
margin
|
6.1%
|
|
4.0%
|
|
0.9%
|
|
4.1%
|
|
3.8%
|
|
4.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Amortization of
intangible assets related to the Company's acquisitions of AIT,
Marchi and Miconex
|
|
|
2
|
Represents expense
for termination benefits paid to former executives of the
Company
|
|
|
3
|
Adjustment to
previous restructuring reserve related to the abandonment of one of
the Company's facilities
|
|
|
4
|
Costs incurred
related to the acquisitions of Marchi and Miconex
|
|
|
5
|
Tax effect of
amortization of intangible assets, executive transition costs,
restructuring charges and acquisition costs based on the non-gaap
tax rate shown below
|
|
|
6
|
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
|
|
Nine Months
Ended
|
|
September
23,
|
|
June 24,
|
|
March 25,
|
|
September
25,
|
|
September
23,
|
|
September
25,
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP Earnings Per Diluted Share to Non-GAAP Earnings Per Diluted
Share
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income
on a GAAP basis
|
$
0.08
|
|
$
0.02
|
|
$
(0.10)
|
|
$
0.05
|
|
$
0.00
|
|
$
0.16
|
Amortization of
intangible assets
|
0.04
|
|
0.05
|
|
0.04
|
|
0.05
|
|
0.13
|
|
0.13
|
Executive transition
costs
|
0.03
|
|
-
|
|
-
|
|
-
|
|
0.03
|
|
0.07
|
Restructuring
charges
|
0.00
|
|
0.00
|
|
0.01
|
|
-
|
|
0.00
|
|
-
|
Acquisition
costs
|
-
|
|
-
|
|
-
|
|
0.01
|
|
-
|
|
0.02
|
Income tax effect of
non-GAAP adjustments
|
(0.02)
|
|
(0.01)
|
|
(0.01)
|
|
(0.01)
|
|
(0.04)
|
|
(0.06)
|
Income tax effect of
valuation allowance
|
0.04
|
|
0.04
|
|
0.06
|
|
-
|
|
0.14
|
|
-
|
Non-GAAP net
income
|
$
0.17
|
|
$
0.10
|
|
$
(0.00)
|
|
$
0.10
|
|
$
0.26
|
|
$
0.32
|
Weighted average
number of diluted shares (thousands)
|
33,100
|
|
32,792
|
|
32,309
|
|
32,155
|
|
32,887
|
|
31,653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ULTRA CLEAN
HOLDINGS, INC.
|
UNAUDITED
RECONCILIATION OF GAAP TO NON-GAAP EFFECTIVE INCOME TAX
RATE
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
23,
|
|
June 24,
|
|
March 25,
|
|
September
23,
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
(in thousands,
except percentages)
|
|
|
|
|
|
|
|
Provision for income
taxes on a GAAP basis
|
$
2,750
|
|
$ 2,160
|
|
$
1,450
|
|
$
6,360
|
Income tax effect of
non-GAAP adjustments (1)
|
574
|
|
406
|
|
385
|
|
1,365
|
Income tax effect of
valuation allowance (2)
|
(1,391)
|
|
(1,384)
|
|
(1,876)
|
|
(4,712)
|
Non-GAAP provision
for income taxes
|
$
1,933
|
|
$ 1,182
|
|
$
(41)
|
|
$
3,013
|
|
|
|
|
|
|
|
|
Income before income
taxes on a GAAP basis
|
$
5,364
|
|
$ 2,883
|
|
$
(1,789)
|
|
$
6,458
|
Amortization of
intangible assets
|
1,438
|
|
1,440
|
|
1,440
|
|
4,318
|
Executive transition
costs
|
925
|
|
-
|
|
-
|
|
925
|
Restructuring
charges
|
(105)
|
|
70
|
|
177
|
|
142
|
Non-GAAP income
before income taxes
|
$
7,622
|
|
$ 4,393
|
|
$
(172)
|
|
$
11,843
|
|
|
|
|
|
|
|
|
Effective income tax
rate on a GAAP basis
|
51.3%
|
|
74.9%
|
|
(81.1%)
|
|
98.5%
|
Non-GAAP effective
income tax rate
|
25.4%
|
|
26.9%
|
|
23.8%
|
|
25.4%
|
|
|
|
|
|
|
|
|
|
1
|
Tax effect of
amortization of intangible assets, executive transition costs,
restructuring charges and acquisition costs based on the 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-announces-third-quarter-2016-financial-results-300351687.html
SOURCE Ultra Clean Holdings, Inc.