HAYWARD, Calif., April 26, 2017 /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 first quarter ended
March 31, 2017.
"Disciplined and focused execution by the UCT team enabled us to
outperform for the fifth consecutive quarter," said Jim Scholhamer, President and CEO. "During this
period of extraordinary semiconductor equipment demand, we have
consistently responded and quickly ramped our operations, allowing
us to meet our customers' needs and be a vital contributor to their
success. We continue to increase UCT's presence on our customers'
product platforms and are expanding our opportunities for future
growth."
GAAP Financial Results
Total revenue for the first quarter of 2017 was $204.6 million, an increase of 17.2% compared to
the fourth quarter of 2016 and 82.3% compared to the same period a
year ago. Semiconductor revenue increased 22.4% compared to the
fourth quarter of 2016 and 80.4% compared to the same period a year
ago. Total revenue from outside the U.S. rose 17.7% sequentially
and 115.0% compared to the same period a year ago. Gross margin for
the first quarter of 2017 was 18.3% compared to 17.0% for the prior
quarter and 13.0% for the same period a year ago. Net income for
the first quarter was $14.3 million,
or $0.43 and $0.42 per basic and diluted share compared to net
income of $10.0 million, or
$0.30 per basic and diluted share in
the previous quarter, and net loss of $3.2
million, or $0.10 per basic
and diluted share for the same period a year ago.
Net cash for the first quarter 2017 increased $6.1 million compared to the fourth quarter of
2016. Cash and cash equivalents were $54.9
million, an increase of $2.5
million compared to the fourth quarter of 2016. Outstanding
debt was $64.2 million, a decrease of
$3.6 million compared to the fourth
quarter of 2016.
Non-GAAP Financial Results
Non-GAAP net income for the first quarter of 2017 was $15.9 million, or $0.47 per diluted share. Non-GAAP net income and
non-GAAP net income per diluted share exclude (i) pre-tax charges
of $1.2 million for intangible assets
amortization, offset by the corresponding increase in tax expense
from these items of approximately $0.3
million, and (ii) $0.6 million
of income tax expense related to income tax valuation allowances.
This compares to fourth quarter non-GAAP net income and non-GAAP
net income per diluted share of $12.0
million and $0.36
respectively, and non-GAAP net loss of $0.1
million and non-GAAP breakeven for the first quarter of
2016.
The Company has provided a reconciliation of GAAP to non-GAAP
financial measures in the financial statement tables included in
this press release.
Second Quarter 2017 Outlook
The Company expects revenue to be between $210.0 million to $220.0 million and GAAP diluted
net income per share to be in the range of $0.46 to $0.52. The Company expects non-GAAP net
income per diluted share to be in the range of $0.49 to $0.55.
Conference Call
UCT will conduct a conference call today, Wednesday, April 26, 2017, beginning at
1:45 p.m. PDT. The call-in number is
(844) 826-3034 (domestic) and (412) 317-5179
(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 10105232 (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 first quarter of 2017 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 second quarter 2017 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, 2016 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
|
|
|
March
31,
|
|
March
25,
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
Sales
|
$
|
204,594
|
|
$
|
112,229
|
|
Cost of goods
sold
|
|
167,099
|
|
|
97,659
|
|
Gross
profit
|
|
37,495
|
|
|
14,570
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Research and
development
|
|
2,906
|
|
|
2,276
|
|
Sales and
marketing
|
|
3,051
|
|
|
2,933
|
|
General and
administrative
|
|
11,765
|
|
|
10,059
|
|
Total operating expenses
|
|
17,722
|
|
|
15,268
|
|
Income (loss) from
operations
|
|
19,773
|
|
|
(698)
|
|
Interest and other
income (expense), net
|
|
(938)
|
|
|
(1,091)
|
|
Income (loss) before
provision for income taxes
|
|
18,835
|
|
|
(1,789)
|
|
Income tax
provision
|
|
4,494
|
|
|
1,450
|
|
Net income
(loss)
|
$
|
14,341
|
|
$
|
(3,239)
|
|
|
|
|
|
|
|
|
Net income (loss) per
share:
|
|
|
|
|
|
|
Basic
|
$
|
0.43
|
|
$
|
(0.10)
|
|
Diluted
|
$
|
0.42
|
|
$
|
(0.10)
|
|
Shares used in
computing net income (loss) per share:
|
|
|
|
|
|
|
Basic
|
|
33,061
|
|
|
32,309
|
|
Diluted
|
|
33,865
|
|
|
32,309
|
|
ULTRA CLEAN
HOLDINGS, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited; in
thousands)
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
30,
|
2017
|
2016
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
54,935
|
|
$
|
52,465
|
Accounts
receivable, net of allowance
|
|
|
94,848
|
|
|
74,663
|
Inventory
|
|
|
123,037
|
|
|
103,861
|
Other current
assets
|
|
|
6,221
|
|
|
6,461
|
Total current assets
|
|
|
279,041
|
|
|
237,450
|
|
|
|
|
|
|
|
Equipment and
leasehold improvements, net
|
|
|
20,929
|
|
|
18,858
|
Goodwill
|
|
|
85,248
|
|
|
85,248
|
Purchased
intangibles, net
|
|
|
35,793
|
|
|
37,024
|
Deferred tax asset,
net
|
|
|
1,262
|
|
|
1,355
|
Other non-current
assets
|
|
|
1,007
|
|
|
762
|
Total
assets
|
|
$
|
423,280
|
|
$
|
380,697
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Bank
borrowings
|
|
$
|
16,108
|
|
$
|
16,819
|
Accounts
payable
|
|
|
95,522
|
|
|
71,189
|
Other current
liabilities
|
|
|
19,502
|
|
|
13,053
|
Total current liabilities
|
|
|
131,132
|
|
|
101,061
|
|
|
|
|
|
|
|
Bank borrowings, net
of current portion
|
|
|
48,056
|
|
|
50,931
|
Deferred tax
liability
|
|
|
9,766
|
|
|
9,917
|
Other long-term
liabilities
|
|
|
2,553
|
|
|
2,657
|
Total liabilities
|
|
|
191,507
|
|
|
164,566
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Common
stock
|
|
|
179,660
|
|
|
178,477
|
Retained
earnings
|
|
|
52,378
|
|
|
38,037
|
Accumulated
other comprehensive income (loss)
|
|
|
(265)
|
|
|
(383)
|
Total stockholders' equity
|
|
|
231,773
|
|
|
216,131
|
Total liabilities and
stockholders' equity
|
|
$
|
423,280
|
|
$
|
380,697
|
ULTRA CLEAN
HOLDINGS, INC.
|
UNAUDITED
RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
March 25,
|
|
December
30,
|
|
|
2017
|
|
2016
|
|
2016
|
Reconciliation of
GAAP Net Income to Non-GAAP Net Income (in
thousands)
|
|
|
|
|
|
|
Reported net income
(loss) on a GAAP basis
|
|
$
14,341
|
|
$
(3,239)
|
|
$
9,953
|
Amortization of
intangible assets (1)
|
|
1,231
|
|
1,440
|
|
1,439
|
Restructuring charges
(2)
|
|
-
|
|
177
|
|
109
|
Impairment of "held
for sale" assets (3)
|
|
-
|
|
-
|
|
666
|
Termination of
contractual obligation (4)
|
|
-
|
|
-
|
|
438
|
Income tax effect of
non-GAAP adjustments (5)
|
|
(256)
|
|
(385)
|
|
(549)
|
Income tax effect of
valuation allowance (6)
|
|
576
|
|
1,876
|
|
(49)
|
Non-GAAP net income
(loss)
|
|
$
15,892
|
|
$
(131)
|
|
$
12,007
|
|
|
|
|
|
|
|
Reconciliation of
GAAP Income from operations to Non-GAAP Income from operations (in
thousands)
|
|
|
|
|
|
|
Reported income
(loss) from operations on a GAAP basis
|
|
$
19,773
|
|
$
(698)
|
|
$
12,670
|
Amortization of
intangible assets (1)
|
|
1,231
|
|
1,440
|
|
1,439
|
Restructuring charges
(2)
|
|
-
|
|
177
|
|
109
|
Impairment of "held
for sale" assets (3)
|
|
-
|
|
-
|
|
666
|
Termination of
contractual obligation (4)
|
|
-
|
|
-
|
|
438
|
Non-GAAP income from
operations
|
|
$
21,004
|
|
$
919
|
|
$
15,322
|
|
|
|
|
|
|
|
Reconciliation of
GAAP Operating margin to Non-GAAP Operating margin
|
|
|
|
|
|
|
Reported operating
margin (loss) on a GAAP basis
|
|
9.7%
|
|
(0.6%)
|
|
7.3%
|
Amortization of
intangible assets (1)
|
|
0.6%
|
|
1.3%
|
|
0.8%
|
Restructuring charges
(2)
|
|
0.0%
|
|
0.2%
|
|
0.1%
|
Impairment of "held
for sale" assets (3)
|
|
0.0%
|
|
0.0%
|
|
0.4%
|
Termination of
contractual obligation (4)
|
|
0.0%
|
|
0.0%
|
|
0.2%
|
Non-GAAP operating
margin
|
|
10.3%
|
|
0.9%
|
|
8.8%
|
|
|
|
|
|
|
|
Reconciliation of
GAAP Gross profit to Non-GAAP Gross profit (in
thousands)
|
|
|
|
|
|
|
Reported gross profit
on a GAAP basis
|
|
$
37,495
|
|
$
14,570
|
|
$
29,701
|
Impairment of "held
for sale"assets (3)
|
|
-
|
|
-
|
|
636
|
Non-GAAP gross
profit
|
|
$
37,495
|
|
$
14,570
|
|
$
30,337
|
|
|
|
|
|
|
|
Reconciliation of
GAAP Gross margin to Non-GAAP Gross margin
|
|
|
|
|
|
|
Reported gross margin
on a GAAP basis
|
|
18.3%
|
|
13.0%
|
|
17.0%
|
Impairment of "held
for sale"assets (3)
|
|
0.0%
|
|
0.0%
|
|
0.4%
|
Non-GAAP gross
margin
|
|
18.3%
|
|
13.0%
|
|
17.4%
|
|
|
|
|
|
|
|
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
Impairment of assets classified as "held for sale" related to our
3D printing business in Singapore
|
4
Amount paid related to the termination of a long-term contractual
obligation related to our 3D printing business in
Singapore
|
5
Tax effect of items (1) through (4) above based on the non-gaap tax
rate shown below
|
6
The Company's GAAP tax expense is generally 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
|
|
|
March 31,
|
|
March 25,
|
|
December
30,
|
|
|
2017
|
|
2016
|
|
2016
|
Reconciliation of
GAAP Earnings Per Diluted Share to Non-GAAP Earnings Per Diluted
Share
|
|
|
|
|
|
|
Reported net income
(loss) on a GAAP basis
|
|
$
0.42
|
|
$
(0.10)
|
|
$
0.30
|
Amortization of
intangible assets
|
|
0.04
|
|
0.04
|
|
0.04
|
Restructuring
charges
|
|
-
|
|
0.01
|
|
-
|
Impairment of "held
for sale" equipment
|
|
-
|
|
-
|
|
0.02
|
Termination of
contractual obligation
|
|
-
|
|
-
|
|
0.01
|
Income tax effect of
non-GAAP adjustments
|
|
(0.01)
|
|
(0.01)
|
|
(0.01)
|
Income tax effect of
valuation allowance
|
|
0.02
|
|
0.06
|
|
-
|
Non-GAAP net
income
|
|
$
0.47
|
|
$
-
|
|
$
0.36
|
Weighted average
number of diluted shares (thousands)
|
33,865
|
|
32,309
|
|
33,526
|
ULTRA CLEAN
HOLDINGS, INC.
|
UNAUDITED
RECONCILIATION OF GAAP TO NON-GAAP EFFECTIVE INCOME TAX
RATE
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
March 25,
|
|
December
30,
|
|
|
2017
|
|
2016
|
|
2016
|
(in thousands,
except percentages)
|
|
|
|
|
|
|
Provision for income
taxes on a GAAP basis
|
|
$
4,494
|
|
$
1,450
|
|
$
2,536
|
Income tax effect of
non-GAAP adjustments (1)
|
|
256
|
|
385
|
|
549
|
Income tax effect of
valuation allowance (2)
|
|
(576)
|
|
(1,876)
|
|
49
|
Non-GAAP provision
for income taxes
|
|
$
4,174
|
|
$
(41)
|
|
$
3,134
|
|
|
|
|
|
|
|
Income before income
taxes on a GAAP basis
|
|
$
18,835
|
|
$
(1,789)
|
|
$
12,489
|
Amortization of
intangible assets
|
|
1,231
|
|
1,440
|
|
1,439
|
Restructuring
charges
|
|
-
|
|
177
|
|
109
|
Impairment of "held
for sale" assets
|
|
-
|
|
-
|
|
666
|
Termination of a
long-term contractual obligation
|
|
-
|
|
-
|
|
438
|
Non-GAAP income
before income taxes
|
|
$
20,066
|
|
$
(172)
|
|
$
15,141
|
|
|
|
|
|
|
|
Effective income tax
rate on a GAAP basis
|
|
23.9%
|
|
(81.1%)
|
|
20.3%
|
Non-GAAP effective
income tax rate
|
|
20.8%
|
|
23.8%
|
|
20.7%
|
1
Tax effect of items (1) through (4) above based on the non-gaap tax
rate
|
2 The
Company's GAAP tax expense is generally 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-first-quarter-2017-financial-results-300446437.html
SOURCE Ultra Clean Holdings, Inc.