ACM Research Reports Third Quarter 2018 Results
November 07 2018 - 4:30PM
ACM Research, Inc. (“ACM” or the “Company”) (NASDAQ:ACMR), a
provider of single-wafer wet cleaning equipment used by
manufacturers of advanced semiconductors, today reported financial
results for its third fiscal quarter ended September 30, 2018.
ACM Research’s President and Chief Executive Officer Dr. David
Wang commented, “Our business momentum continued in the third
quarter. We delivered strong financial results, with revenue
more than tripling from the third quarter of 2017. Strength
was driven by solid demand and great execution, with additional
contribution from customer acceptance on an important evaluation
tool. Operating highlights included significant delivery of
first-tools, which contributed to record total shipments for the
quarter, the launch of the “Ultra-C” Tahoe product, and the start
of production at our second factory in Shanghai.”
Dr. Wang continued, “We are excited by our business prospects,
and remain committed to gaining additional market share by
increasing our business with leading and emerging global IC
manufacturers. For 2018, we have once again raised our
full-year revenue guidance, which represents more than 100%
growth versus last year.”
Third Quarter Operating Highlights
- Record Total Shipments. Total shipments
for the third quarter were approximately $32 million, an increase
from approximately $11 million in the third quarter of 2017, and
approximately $21 million in the second quarter of 2018.
Quarterly shipments include deliveries for revenue in the quarter,
and deliveries of first-tool systems awaiting customer acceptance
for potential revenue in future quarters. ACM views
first-tool deliveries as an important indicator of progress in
moving customers from the qualified pipeline to a more
comprehensive evaluation phase.
- Newest Addition from ACM’s Innovation Pipeline, the
Ultra-C Tahoe. In August 2018, ACM announced the Ultra-C
Tahoe, a new addition to its line of advanced single-wafer cleaning
tools. The Ultra-C Tahoe tool incorporates innovative and
patented technology to deliver high cleaning performance, but uses
10% or less of the sulfuric acid typically consumed by conventional
high temperature single wafer cleaning tools.
- New Production Facility. On September 28,
2018, ACM held an opening ceremony to mark the completion of its
new production facility. The new facility, located in the
Pudong region of Shanghai, is approximately 20 kilometers from the
Company's Shanghai headquarters. The new factory adds 50,000 square
feet of available floor space to the 36,000 square feet of existing
floor space at ACM’s initial facility.
Financial Summary
|
Three Months Ended September 30, |
|
GAAP |
|
Non-GAAP(1) |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
2017 |
|
|
(dollars in thousands) |
Revenue |
$23,179 |
|
|
$4,891 |
|
|
$23,179 |
|
|
$4,891 |
|
Gross margin(2) |
|
44.4% |
|
|
|
45.0% |
|
|
|
44.5% |
|
|
|
45.0% |
|
Income
(loss) from operations(2) |
$3,404 |
|
|
$(1,310 |
) |
|
$3,815 |
|
|
$(967 |
) |
Net
income (loss) attributable to ACM Research, Inc.(2) |
$3,853 |
|
|
$(955 |
) |
|
$4,264 |
|
|
$(612 |
) |
Basic
EPS |
$0.24 |
|
|
$(0.17 |
) |
|
$0.27 |
|
|
$(0.11 |
) |
Diluted
EPS |
$0.21 |
|
|
$(0.17 |
) |
|
$0.23 |
|
|
$(0.11 |
) |
|
Nine Months Ended September 30, |
|
GAAP |
|
Non-GAAP(1) |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
2017 |
|
|
(dollars in thousands) |
Revenue |
$53,795 |
|
|
$19,314 |
|
|
$53,795 |
|
|
$19,314 |
|
Gross margin(2) |
|
44.9% |
|
|
|
41.7% |
|
|
|
44.9% |
|
|
|
41.7% |
|
Income
(loss) from operations(2) |
$3,831 |
|
|
$(3,065 |
) |
|
$6,602 |
|
|
$(1,073 |
) |
Net
income (loss) attributable to ACM Research, Inc.(2) |
$4,288 |
|
|
$(3,702 |
) |
|
$7,059 |
|
|
$(1,710 |
) |
Basic
EPS |
$0.27 |
|
|
$(0.72 |
) |
|
$0.45 |
|
|
$(0.33 |
) |
Diluted
EPS |
$0.24 |
|
|
$(0.72 |
) |
|
$0.40 |
|
|
$(0.33 |
) |
________________________ (1)
Reconciliations to U.S. generally accepted accounting principles
(“GAAP”) financial measures from non-GAAP financial measures are
presented below under “Reconciliation of GAAP to Non-GAAP Financial
Measures.”(2) Non-GAAP financial measures exclude
stock-based compensation.
All figures refer to the third quarter of 2018, unless noted
otherwise. All comparisons are with the third quarter of
2017, unless otherwise noted.
- Revenue increased 374% to $23.2 million, due
to increased volume of tools shipped for revenue, higher price
associated with these tools, and a significant customer acceptance
achieved during the quarter.
- Gross margin was 44.4%, compared to 45.0% in
the third quarter of 2017. Gross margin was within the range
of 40.0% to 45.0% set forth in the Company’s long-term business
model. The Company expects gross margin to vary from period
to period due to a variety of factors, such as sales volume and
product mix.
- Operating expenses were $6.9 million, an
increase of 96%. Non-GAAP operating expenses which removes
stock-based compensation, was $6.5 million, up 105%. Non-GAAP
operating expenses as a percent of revenue decreased to 28%, versus
65% in the third quarter of 2017.
- Net income attributable to
ACM Research, Inc. was $3.9 million, compared to a net loss
attributable to ACM Research, Inc. of $1.0 million in the third
quarter of 2017. Non-GAAP net income attributable to ACM
Research, Inc. was $4.3 million, versus a non-GAAP net loss
attributable to ACM Research, Inc. of $0.6 million in the third
quarter of 2017.
- Cash and equivalents at quarter-end were $18.2
million, up from $17.4 million at the end of the second quarter of
2018.
Outlook
The Company has raised its full year 2018 revenue guidance to
$74 million, an increase of $4 million from the Company’s previous
2018 revenue guidance.
Conference Call Details
A conference call to discuss results will be held on Thursday,
November 8, 2018 at 8:00 a.m. Eastern Time (9:00 p.m. China Time).
Dial-in details for the call are as follows. Please reference
conference ID 9572579.
|
Phone
Number |
Toll-Free
Number |
|
|
|
United States |
+1 (845) 675-0437 |
+1 (866) 519-4004 |
Hong Kong |
+852 3018 6771 |
+852 8009 06601 |
Mainland China |
+86 (800) 819 0121 |
|
|
+86 (400) 620 8038 |
|
Other
International |
+65 6713 5090 |
|
A recording of the webcast will be available on the investor
page of the ACM Research website at www.acmrcsh.com for one week
following the call.
Use of Non-GAAP Financial Measures
ACM Research presents non-GAAP gross margin, operating income
(loss) and net loss as supplemental measures to GAAP financial
measures regarding ACM Research’s operational performance. These
supplemental measures exclude the impact of stock-based
compensation, which ACM Research does not believe is indicative of
its core operating results. A reconciliation of each non-GAAP
financial measure to the most directly comparable GAAP financial
measure is provided below under “Reconciliation of Non-GAAP to GAAP
Financial Measures.”
ACM Research believes these non-GAAP financial measures are
useful to investors in assessing its operating performance. ACM
Research uses these financial measures internally to evaluate its
operating performance and for planning and forecasting of future
periods. Financial analysts may focus on and publish both
historical results and future projections based on the non-GAAP
financial measures. ACM Research also believes it is in the best
interests of investors for ACM Research to provide this non-GAAP
information.
While ACM Research believes these non-GAAP financial measures
provide useful supplemental information to investors, there are
limitations associated with the use of these non-GAAP financial
measures. These non-GAAP financial measures may not be reported by
competitors, and they may not be directly comparable to similarly
titled measures of other companies due to differences in
calculation methodologies. The non-GAAP financial measures are not
an alternative to GAAP information and are not meant to be
considered in isolation or as a substitute for comparable GAAP
financial measures. They should be used only as a supplement to
GAAP information and should be considered only in conjunction with
ACM Research’s consolidated financial statements prepared in
accordance with GAAP.
Forward-Looking Statements
Information presented in the third paragraph of this press
release and under the heading “Outlook” above contains
forward-looking statements for purposes of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Actual results may vary significantly from ACM Research’s
expectations based on a number of risks and uncertainties,
including but not limited to the following: anticipated customer
orders or identified market opportunities may not grow or develop
as anticipated; customer orders already received may be postponed
or canceled; suppliers may not be able to meet ACM Research’s
demands on a timely basis; volatile global economic, market,
industry and other conditions could result in sharply lower demand
for products containing semiconductors and for the company's
products and in disruption of capital and credit markets; ACM
Research’s failure to successfully manage its operations; and trade
regulations, currency fluctuations, political instability and war
may materially adversely affect ACM Research due to its substantial
non-U.S. customer and supplier base and its substantial non-U.S.
manufacturing operations. ACM Research cannot guarantee any future
results, levels of activity, performance or achievements. ACM
Research expressly disclaims any obligation to update
forward-looking statements after the date of this press
release.
About ACM Research, Inc.
ACM Research develops, manufactures and sells single-wafer wet
cleaning equipment, which semiconductor manufacturers can use in
numerous manufacturing steps to remove particles, contaminants and
other random defects, and thereby improve product yield, in
fabricating advanced integrated circuits.
© ACM Research, Inc. The ACM Research logo is a trademark of ACM
Research, Inc. All rights reserved. Any other trademarks are the
property of their respective owners.
For investor and media inquiries, please
contact:
In the United States: |
The Blueshirt GroupRalph
Fong+1 (415) 489-2195ralph@blueshirtgroup.com |
|
|
In China: |
The Blueshirt Group
Asia Gary Dvorchak, CFA +86 (138) 1079-1480
gary@blueshirtgroup.com |
ACM Research, Inc. |
Condensed Consolidated Balance
Sheets |
(unaudited) |
|
|
|
September 30, 2018 |
|
December 31, 2017 |
|
(unaudited) |
|
(in thousands, except share and per share data) |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash
equivalents |
$ |
18,238 |
|
|
$ |
17,681 |
|
Accounts receivable,
less allowance for doubtful accounts of $0 as of September 30, 2018
and $0 as of December 31, 2017 |
|
30,965 |
|
|
|
26,762 |
|
Other receivables |
|
1,591 |
|
|
|
2,491 |
|
Inventories |
|
29,809 |
|
|
|
15,388 |
|
Prepaid expenses |
|
2,142 |
|
|
|
546 |
|
Other current
assets |
|
32 |
|
|
|
46 |
|
Total
current assets |
|
82,777 |
|
|
|
62,914 |
|
Property, plant and
equipment, net |
|
3,593 |
|
|
|
2,340 |
|
Intangible assets,
net |
|
300 |
|
|
|
106 |
|
Deferred tax
assets |
|
1,230 |
|
|
|
1,294 |
|
Investment in
affiliates, equity method |
|
1,472 |
|
|
|
1,237 |
|
Other long-term
assets |
|
41 |
|
|
|
- |
|
Total assets |
|
89,413 |
|
|
|
67,891 |
|
Liabilities and Stockholders’ Equity |
|
|
|
Current
liabilities: |
|
|
|
Short-term borrowings |
|
10,163 |
|
|
|
5,095 |
|
Warrant
liability |
|
- |
|
|
|
3,079 |
|
Accounts
payable |
|
11,991 |
|
|
|
7,419 |
|
Advances
from customers |
|
3,918 |
|
|
|
143 |
|
Income
taxes payable |
|
689 |
|
|
|
44 |
|
Other
payables and accrued expenses |
|
8,090 |
|
|
|
6,037 |
|
Total
current liabilities |
|
34,851 |
|
|
|
21,817 |
|
Other long-term
liabilities |
|
5,230 |
|
|
|
6,217 |
|
Total liabilities |
|
40,081 |
|
|
|
28,034 |
|
Commitments and
contingencies |
|
|
|
Stockholders’
equity: |
|
|
|
Common stock – Class A,
par value $0.0001: 100,000,000 shares authorized as of September
30, 2018 and December 31, 2017; 14,070,065 shares issued and
outstanding as of September 30, 2018 and 12,935,546 shares issued
and outstanding as of December 31, 2017 |
|
1 |
|
|
|
1 |
|
Common stock–Class B,
par value $0.0001: 7,303,533 shares authorized as of September 30,
2018 and December 31, 2017; 1,918,423 shares issued and outstanding
as of September 30, 2018 and 2,409,738 shares issued and
outstanding as of December 31, 2017 |
|
- |
|
|
|
- |
|
Additional paid in
capital |
|
55,959 |
|
|
|
49,695 |
|
Accumulated
deficit |
|
(5,673 |
) |
|
|
(9,961 |
) |
Accumulated other
comprehensive income (loss) |
|
(955 |
) |
|
|
122 |
|
Total stockholders’ equity |
|
49,332 |
|
|
|
39,857 |
|
Total liabilities and stockholders’ equity |
$ |
89,413 |
|
|
$ |
67,891 |
|
|
|
|
|
ACM RESEARCH,
INC.Condensed Consolidated Statements of
Operations and Comprehensive Loss
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
(Unaudited) |
|
(Unaudited) |
|
( In thousands, except share and
per share data) |
|
( In thousands, except share and
per share data) |
Revenue |
$ |
23,179 |
|
|
$ |
4,891 |
|
|
$ |
53,795 |
|
|
$ |
19,314 |
|
Cost of revenue |
|
12,892 |
|
|
|
2,692 |
|
|
|
29,662 |
|
|
|
11,262 |
|
Gross profit |
|
10,287 |
|
|
|
2,199 |
|
|
|
24,133 |
|
|
|
8,052 |
|
Operating expenses: |
|
|
|
|
|
|
|
Sales and marketing |
|
3,229 |
|
|
|
1,036 |
|
|
|
7,766 |
|
|
|
3,619 |
|
Research and development |
|
2,264 |
|
|
|
1,209 |
|
|
|
6,224 |
|
|
|
3,076 |
|
General and administrative |
|
1,390 |
|
|
|
1,264 |
|
|
|
6,312 |
|
|
|
4,422 |
|
Total operating expenses, net |
|
6,883 |
|
|
|
3,509 |
|
|
|
20,302 |
|
|
|
11,117 |
|
Income (loss) from operations |
|
3,404 |
|
|
|
(1,310 |
) |
|
|
3,831 |
|
|
|
(3,065 |
) |
Interest income |
|
3 |
|
|
|
2 |
|
|
|
20 |
|
|
|
7 |
|
Interest expense |
|
(112 |
) |
|
|
(33 |
) |
|
|
(364 |
) |
|
|
(197 |
) |
Other expense, net |
|
902 |
|
|
|
(239 |
) |
|
|
1,213 |
|
|
|
(531 |
) |
Equity income in net income of affiliates |
|
117 |
|
|
|
20 |
|
|
|
235 |
|
|
|
20 |
|
Income
(loss) before income taxes |
|
4,314 |
|
|
|
(1,560 |
) |
|
|
4,935 |
|
|
|
(3,766 |
) |
Income tax benefit (expense) |
|
(461 |
) |
|
|
278 |
|
|
|
(647 |
) |
|
|
(471 |
) |
Net income
(loss) attributable to ACM Research, Inc. |
|
3,853 |
|
|
|
(1,282 |
) |
|
|
4,288 |
|
|
|
(4,237 |
) |
Less: Net income
(loss) attributable to non-controlling interests |
|
- |
|
|
|
(327 |
) |
|
|
- |
|
|
|
(535 |
) |
Net income
(loss) attributable to ACM Research, Inc. |
$ |
3,853 |
|
|
$ |
(955 |
) |
|
$ |
4,288 |
|
|
$ |
(3,702 |
) |
Comprehensive income (loss) |
|
|
|
|
|
|
|
Net
income (loss) |
|
3,853 |
|
|
|
(1,282 |
) |
|
|
4,288 |
|
|
|
(4,237 |
) |
Foreign currency translation adjustment |
|
(746 |
) |
|
|
228 |
|
|
|
(1,077 |
) |
|
|
492 |
|
Comprehensive income (loss) |
|
3,107 |
|
|
|
(1,054 |
) |
|
|
3,211 |
|
|
|
(3,745 |
) |
Less: Comprehensive income
(loss) attributable to non-controlling interests |
|
- |
|
|
|
(237 |
) |
|
|
- |
|
|
|
(347 |
) |
Total comprehensive income
(loss) attributable to ACM Research, Inc. |
$ |
3,107 |
|
|
$ |
(817 |
) |
|
$ |
3,211 |
|
|
$ |
(3,398 |
) |
|
|
|
|
|
|
|
|
Net income (loss) attributable to ACM Research, Inc.
per common share : |
|
|
|
|
|
|
|
Basic |
$ |
0.24 |
|
|
$ |
(0.17 |
) |
|
$ |
0.27 |
|
|
$ |
(0.72 |
) |
Diluted |
$ |
0.21 |
|
|
$ |
(0.17 |
) |
|
$ |
0.24 |
|
|
$ |
(0.72 |
) |
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding used in computing per share amounts: |
Basic |
|
15,915,864 |
|
|
|
5,581,637 |
|
|
|
15,714,310 |
|
|
|
5,148,255 |
|
Diluted |
|
18,169,807 |
|
|
|
5,581,637 |
|
|
|
17,816,101 |
|
|
|
5,148,255 |
|
|
|
|
|
|
|
|
|
ACM RESEARCH,
INC.Reconciliation of GAAP to Non-GAAP Financial
Measures
As described under “Use of Non-GAAP Financial Measures” above,
ACM Research presents non-GAAP gross margin, operating income and
net income (loss) as supplemental measures to GAAP financial
measures, each of which excludes stock-based compensation (“SBC”)
from the equivalent GAAP financial line items. The following tables
reconcile gross margin, operating income and net income (loss) to
the related non-GAAP financial measures:
|
Three Months Ended
September 30, |
|
|
2018 |
|
|
2017 |
|
|
Actual |
SBC |
Adjusted |
Actual |
SBC |
Adjusted |
(GAAP) |
(Non-GAAP) |
(GAAP) |
(Non-GAAP) |
|
(in thousands) |
|
|
|
|
|
|
|
Revenue |
$ |
23,179 |
|
$ |
- |
|
$ |
23,179 |
|
$ |
4,891 |
|
$ |
- |
|
$ |
4,891 |
|
Cost of revenue |
|
(12,892 |
) |
|
(25 |
) |
|
(12,867 |
) |
|
(2,692 |
) |
|
(5 |
) |
|
(2,687 |
) |
Gross profit |
|
10,287 |
|
|
(25 |
) |
|
10,312 |
|
|
2,199 |
|
|
(5 |
) |
|
2,204 |
|
Operating expenses: |
|
|
|
|
|
|
Sales and marketing |
|
(3,229 |
) |
|
(42 |
) |
|
(3,187 |
) |
|
(1,036 |
) |
|
(17 |
) |
|
(1,019 |
) |
Research and development |
|
(2,264 |
) |
|
(64 |
) |
|
(2,200 |
) |
|
(1,209 |
) |
|
(13 |
) |
|
(1,196 |
) |
General and administrative |
|
(1,390 |
) |
|
(280 |
) |
|
(1,110 |
) |
|
(1,264 |
) |
|
(308 |
) |
|
(956 |
) |
Income (Loss) from operations |
$ |
3,404 |
|
$ |
(411 |
) |
$ |
3,815 |
|
$ |
(1,310 |
) |
$ |
(343 |
) |
$ |
(967 |
) |
Net income (loss) attributable to ACM Research,
Inc. |
$ |
3,853 |
|
$ |
(411 |
) |
$ |
4,264 |
|
$ |
(955 |
) |
$ |
(343 |
) |
$ |
(612 |
) |
|
|
|
|
Nine Months Ended
September 30, |
|
|
2018 |
|
|
2017 |
|
|
Actual |
SBC |
Adjusted |
Actual |
SBC |
Adjusted |
(GAAP) |
(Non-GAAP) |
(GAAP) |
(Non-GAAP) |
|
(in thousands) |
|
|
|
|
|
|
|
Revenue |
$ |
53,795 |
|
$ |
- |
|
$ |
53,795 |
|
$ |
19,314 |
|
$ |
- |
|
$ |
19,314 |
|
Cost of revenue |
|
(29,662 |
) |
|
(44 |
) |
|
(29,618 |
) |
|
(11,262 |
) |
|
(15 |
) |
|
(11,247 |
) |
Gross profit |
|
24,133 |
|
|
(44 |
) |
|
24,177 |
|
|
8,052 |
|
|
(15 |
) |
|
8,067 |
|
Operating expenses: |
|
|
|
|
|
|
Sales and marketing |
|
(7,766 |
) |
|
(115 |
) |
|
(7,651 |
) |
|
(3,619 |
) |
|
(35 |
) |
|
(3,584 |
) |
Research and development |
|
(6,224 |
) |
|
(131 |
) |
|
(6,093 |
) |
|
(3,076 |
) |
|
(38 |
) |
|
(3,038 |
) |
General and administrative |
|
(6,312 |
) |
|
(2,481 |
) |
|
(3,831 |
) |
|
(4,422 |
) |
|
(1,904 |
) |
|
(2,518 |
) |
Income (Loss) from operations |
$ |
3,831 |
|
$ |
(2,771 |
) |
$ |
6,602 |
|
$ |
(3,065 |
) |
$ |
(1,992 |
) |
$ |
(1,073 |
) |
Net income (loss) attributable to ACM Research,
Inc. |
$ |
4,288 |
|
$ |
(2,771 |
) |
$ |
7,059 |
|
$ |
(3,702 |
) |
$ |
(1,992 |
) |
$ |
(1,710 |
) |
|
ACM Research (NASDAQ:ACMR)
Historical Stock Chart
From Mar 2024 to Apr 2024
ACM Research (NASDAQ:ACMR)
Historical Stock Chart
From Apr 2023 to Apr 2024