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 second fiscal quarter ended June 30, 2019.
ACM’s President and Chief Executive Officer Dr. David Wang
commented, "We are pleased with our second quarter results, and the
momentum we have been building throughout 2019. Despite the
industry cycle, we executed well in the June quarter, achieving
strong top- and bottom-line growth. As we look ahead to the
remainder of 2019, we are excited by our business
opportunities. We have strong demand, our visibility remains
solid, and the team is executing to plan."
Dr. Wang continued, “We recently secured an initial order from a
new DRAM customer in China, bringing our total to five front-end IC
manufacturing customers. This is a key milestone for ACM, a
testament to our proven single-wafer cleaning solutions. We
are also encouraged by positive traction for our new electrical
copper plating (ECP) products at front-end customers and advanced
wafer level package (WLP) customers. On the strategic front,
I am pleased with the progress we have made towards our plan to
list shares of our ACM Shanghai subsidiary on the STAR
Market. In summary, we have made great progress so far this
year on our mission to become a major player in the semiconductor
equipment market.”
Operating Highlights
- Shipments. Total shipments in the second
quarter of 2019 were $33 million, versus $14 million last quarter
and $21 million in the second quarter of 2018. Shipments
include deliveries for revenue in the quarter and deliveries of
systems awaiting customer acceptance for potential revenue in
future quarters.
- Expanding Customer Base in Memory. ACM
received a purchase order for a SAPS-V single wafer cleaning tool
from an emerging manufacturer of DRAM memory chips in China.
The Company intends to deliver this first tool in the fourth
quarter of 2019, with revenue recognition upon qualification and
acceptance.
- Update on Ultra-C Tahoe. ACM delivered
its first Ultra-C Tahoe evaluation tool to an important strategic
customer in January of 2019. Evaluation of this first tool is
progressing as planned, and the test results are encouraging.
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.
Financial Summary
|
Three Months Ended June 30, |
|
GAAP |
|
Non-GAAP(1) |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
Revenue |
$ |
29,010 |
|
|
$ |
20,873 |
|
|
$ |
29,010 |
|
|
$ |
20,873 |
|
Gross margin |
|
45.3 |
% |
|
|
41.8 |
% |
|
|
45.4 |
% |
|
|
41.8 |
% |
Income from operations |
$ |
4,661 |
|
|
$ |
2,331 |
|
|
$ |
5,279 |
|
|
$ |
2,515 |
|
Net income |
$ |
4,311 |
|
|
$ |
3,215 |
|
|
$ |
4,929 |
|
|
$ |
3,399 |
|
Basic EPS |
$ |
0.27 |
|
|
$ |
0.20 |
|
|
$ |
0.31 |
|
|
$ |
0.21 |
|
Diluted EPS |
$ |
0.23 |
|
|
$ |
0.18 |
|
|
$ |
0.26 |
|
|
$ |
0.19 |
|
|
Six Months Ended June 30, |
|
GAAP |
|
Non-GAAP(1) |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
Revenue |
$ |
49,489 |
|
|
$ |
30,616 |
|
|
$ |
49,489 |
|
|
$ |
30,616 |
|
Gross margin |
|
44.4 |
% |
|
|
45.2 |
% |
|
|
44.5 |
% |
|
|
45.3 |
% |
Income from operations |
$ |
6,912 |
|
|
$ |
427 |
|
|
$ |
8,274 |
|
|
$ |
2,787 |
|
Net income |
$ |
6,168 |
|
|
$ |
435 |
|
|
$ |
7,530 |
|
|
$ |
2,795 |
|
Basic EPS |
$ |
0.38 |
|
|
$ |
0.03 |
|
|
$ |
0.47 |
|
|
$ |
0.18 |
|
Diluted EPS |
$ |
0.33 |
|
|
$ |
0.02 |
|
|
$ |
0.41 |
|
|
$ |
0.16 |
|
- 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.” Non-GAAP financial measures
(excluding revenue) exclude stock-based compensation.
The following figures refer to the second quarter of 2019
compared with the second quarter of 2018, unless otherwise
noted.
- Revenue increased 39.0% to $29.0 million, due
to an increased volume of tools shipped for revenue and higher
prices associated with these tools. Revenue for the second
quarter included repeat shipments and several customer acceptances
of tools shipped in previous quarters.
- Gross margin was 45.3%, compared to 41.8% in
the second quarter of 2018. Gross margin was slightly above
the high-end of the range of 40.0% to 45.0% set forth in the
Company’s long-term business model. The strong gross margin
performance was due to a higher mix of higher-margin products. The
Company expects gross margin to continue to vary from period to
period due to a variety of factors, such as sales volume and
product mix.
- Operating expenses were $8.5 million, an
increase of 32.5%. GAAP operating expenses as a percent of
revenue decreased to 29.2%, compared to 30.6% in the second quarter
of 2018. Non-GAAP operating expenses, which remove
stock-based compensation, were $7.9 million, an increase of
26.7%. Non-GAAP operating expenses as a percent of revenue
decreased to 27.2%, compared to 29.7% in the second quarter of
2018.
- Net income was $4.3 million,
compared to $3.2 million in the second quarter of 2018.
Non-GAAP net income was $4.9 million, compared to $3.4 million in
the second quarter of 2018.
- Net income per diluted share was $0.23,
compared to $0.18 in the second quarter of 2018. Non-GAAP net
income per diluted share was $0.26, compared to $0.19 in the second
quarter of 2018.
- Cash and equivalents at quarter-end were $27.6
million, up from $27.4 million at the end of the first quarter of
2019 and $17.4 million at the end of the second quarter of
2018.
Outlook
The Company has increased its full year 2019 revenue guidance to
$105 million, an increase of $5 million from the Company’s previous
2019 revenue guidance.
Conference Call Details
A conference call to discuss results will be held on Thursday,
August 8, 2019, at 8:00 a.m. Eastern Time (8:00 p.m. China Time).
Dial-in details for the call are as follows. Please reference
conference ID 8986804.
|
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 website at www.acmrcsh.com for one week following
the call.
Use of Non-GAAP Financial Measures
ACM presents non-GAAP gross margin, operating expenses,
operating income, net income, and basic and diluted earnings per
share as supplemental measures to GAAP financial measures regarding
ACM’s operational performance. These supplemental measures exclude
the impact of stock-based compensation, which ACM 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 believes these non-GAAP financial measures are useful to
investors in assessing its operating performance. ACM 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
also believes it is in the best interests of investors for ACM to
provide this non-GAAP information.
While ACM 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’s consolidated financial
statements prepared in accordance with GAAP.
Forward-Looking Statements
Information presented in the second and third paragraphs 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’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’s demands on a timely basis; volatile
global economic, market, industry, regulatory 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’s failure to successfully manage
its operations; and trade regulations, currency fluctuations,
political instability and war may materially adversely affect ACM
due to its substantial non-U.S. customer and supplier base and its
substantial non-U.S. manufacturing operations. ACM cannot guarantee
any future results, levels of activity, performance or
achievements. ACM expressly disclaims any obligation to update
forward-looking statements after the date of this press
release.
About ACM Research, Inc.
ACM 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 logo, SAPS and ULTRA C are
trademarks of ACM Research, Inc. For convenience, these trademarks
appear in this press release without ™ symbols, but that practice
does not mean that ACM will not assert, to the fullest extent under
applicable law, its rights to the trademarks. This press release
also contains other companies’ trademarks, registered marks and
trade names, which are the property of those companies.
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) 1079-1480gary@blueshirtgroup.com |
ACM RESEARCH,
INC.Condensed Consolidated Balance
Sheets
|
June 30, 2019 |
|
|
December 31, 2018 |
|
|
(unaudited) |
|
|
(in thousands, except share and per share data) |
|
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
27,578 |
|
|
$ |
27,124 |
|
Accounts receivable, less
allowance for doubtful accounts of $0 as of June 30, 2019 and $0 as
of December 31, 2018 |
31,393 |
|
|
24,608 |
|
Other receivables |
2,388 |
|
|
3,547 |
|
Inventories |
45,494 |
|
|
38,764 |
|
Prepaid expenses |
1,547 |
|
|
1,985 |
|
Total current assets |
108,400 |
|
|
96,028 |
|
Property, plant and equipment,
net |
3,376 |
|
|
3,708 |
|
Operating lease right-of-use
assets, net |
4,550 |
|
|
- |
|
Intangible assets, net |
307 |
|
|
274 |
|
Deferred tax assets |
1,635 |
|
|
1,637 |
|
Long-term investments |
1,738 |
|
|
1,360 |
|
Other long-term assets |
263 |
|
|
40 |
|
Total assets |
120,269 |
|
|
103,047 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Short-term borrowings |
15,110 |
|
|
9,447 |
|
Accounts payable |
18,238 |
|
|
16,673 |
|
Advances from customers |
5,684 |
|
|
8,417 |
|
Income taxes payable |
1,016 |
|
|
1,193 |
|
Other payables and accrued expenses |
11,993 |
|
|
10,410 |
|
Current portion of operating lease liability |
1,360 |
|
|
- |
|
Total current liabilities |
53,401 |
|
|
46,140 |
|
Long-term operating lease liability |
3,190 |
|
|
- |
|
Other long-term
liabilities |
3,963 |
|
|
4,583 |
|
Total liabilities |
60,554 |
|
|
50,723 |
|
Commitments and
contingencies |
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
|
Common stock – Class A, par
value $0.0001: 50,000,000 shares authorized as of June 30, 2019 and
December 31, 2018; 14,229,942 shares issued and outstanding as of
June 30, 2019 and 14,110,315 shares issued and outstanding as of
December 31, 2018 |
1 |
|
|
1 |
|
Common stock–Class B, par
value $0.0001: 2,409,738 shares authorized as of June 30, 2019 and
December 31, 2018; 1,883,423 shares issued and outstanding as of
June 30, 2019 and 1,898,423 shares issued and outstanding as of
December 31, 2018 |
- |
|
|
- |
|
Additional paid in
capital |
58,101 |
|
|
56,567 |
|
Accumulated surplus
(deficit) |
2,781 |
|
|
(3,387 |
) |
Accumulated other
comprehensive loss |
(1,168 |
) |
|
(857 |
) |
Total stockholders’ equity |
59,715 |
|
|
52,324 |
|
Total liabilities and stockholders’
equity |
$ |
120,269 |
|
|
$ |
103,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACM RESEARCH,
INC.Condensed Consolidated Statements of
Operations and Comprehensive Income
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
(Unaudited) |
|
|
(In thousands, except share and per share data) |
|
|
(In thousands, except share and per share data) |
|
Revenue |
$ |
29,010 |
|
|
$ |
20,873 |
|
|
$ |
49,489 |
|
|
$ |
30,616 |
|
Cost of revenue |
15,879 |
|
|
12,149 |
|
|
27,532 |
|
|
16,770 |
|
Gross profit |
13,131 |
|
|
8,724 |
|
|
21,957 |
|
|
13,846 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
2,924 |
|
|
2,682 |
|
|
4,793 |
|
|
4,537 |
|
Research and development |
3,341 |
|
|
2,419 |
|
|
6,106 |
|
|
3,960 |
|
General and administrative |
2,205 |
|
|
1,292 |
|
|
4,146 |
|
|
4,922 |
|
Total operating expenses, net |
8,470 |
|
|
6,393 |
|
|
15,045 |
|
|
13,419 |
|
Income from operations |
4,661 |
|
|
2,331 |
|
|
6,912 |
|
|
427 |
|
Interest income |
24 |
|
|
14 |
|
|
33 |
|
|
17 |
|
Interest expense |
(194 |
) |
|
(149 |
) |
|
(333 |
) |
|
(252 |
) |
Other income
, net |
543 |
|
|
1,066 |
|
|
282 |
|
|
311 |
|
Equity income in net income of affiliates |
153 |
|
|
117 |
|
|
269 |
|
|
118 |
|
Income before income taxes |
5,187 |
|
|
3,379 |
|
|
7,163 |
|
|
621 |
|
Income tax expense |
(876 |
) |
|
(164 |
) |
|
(995 |
) |
|
(186 |
) |
Net income |
4,311 |
|
|
3,215 |
|
|
6,168 |
|
|
435 |
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
Net income |
4,311 |
|
|
3,215 |
|
|
6,168 |
|
|
435 |
|
Foreign currency translation adjustment |
(968 |
) |
|
(1,036 |
) |
|
(311 |
) |
|
(331 |
) |
Total comprehensive income |
3,343 |
|
|
2,179 |
|
|
5,857 |
|
|
104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to ACM Research, Inc. per common share : |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.27 |
|
|
$ |
0.20 |
|
|
$ |
0.38 |
|
|
$ |
0.03 |
|
Diluted |
$ |
0.23 |
|
|
$ |
0.18 |
|
|
$ |
0.33 |
|
|
$ |
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding used in computing per share amounts: |
|
Basic |
16,090,937 |
|
|
15,838,540 |
|
|
16,067,924 |
|
|
15,611,863 |
|
Diluted |
18,604,347 |
|
|
18,119,733 |
|
|
18,455,534 |
|
|
17,669,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACM RESEARCH,
INC.Reconciliation of GAAP to Non-GAAP Financial
Measures
As described under “Use of Non-GAAP Financial Measures” above,
ACM 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 table reconciles gross
margin, operating income and net income (loss) to the related
non-GAAP financial measures:
|
Three Months Ended June 30, |
|
2019 |
|
|
|
2018 |
|
|
|
|
Actual(GAAP) |
|
SBC |
|
Adjusted(Non-GAAP) |
|
Actual(Non-GAAP) |
|
SBC |
|
Adjusted(Non-GAAP) |
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
29,010 |
|
$ - |
|
$ |
29,010 |
|
$ |
20,873 |
|
$ - |
|
$ |
20,873 |
|
Cost of revenue |
(15,879 |
) |
(29 |
) |
(15,850 |
) |
(12,149 |
) |
(11 |
) |
(12,138 |
) |
Gross profit |
13,131 |
|
(29 |
) |
13,160 |
|
8,724 |
|
(11 |
) |
8,735 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
(2,924 |
) |
(46 |
) |
(2,878 |
) |
(2,682 |
) |
(39 |
) |
(2,643 |
) |
Research and development |
(3,341 |
) |
(94 |
) |
(3,247 |
) |
(2,419 |
) |
(40 |
) |
(2,379 |
) |
General and administrative |
(2,205 |
) |
(449 |
) |
(1,756 |
) |
(1,292 |
) |
(94 |
) |
(1,198 |
) |
Income from operations |
$ |
4,661 |
|
$ |
(618 |
) |
$ |
5,279 |
|
$ |
2,331 |
|
$ |
(184 |
) |
$ |
2,515 |
|
Net income |
$ |
4,311 |
|
$ |
(618 |
) |
$ |
4,929 |
|
$ |
3,215 |
|
$ |
(184 |
) |
$ |
3,399 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
2,019 |
|
|
|
2,018 |
|
|
|
|
Actual (GAAP) |
|
SBC |
|
Adjusted (Non-GAAP) |
|
Actual (Non-GAAP) |
|
SBC |
|
Adjusted (Non-GAAP) |
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
49,489 |
|
$ - |
|
$ |
49,489 |
|
$ |
30,616 |
|
|
|
$ |
30,616 |
|
Cost of revenue |
(27,532 |
) |
(59 |
) |
(27,473 |
) |
(16,770 |
) |
(19 |
) |
(16,751 |
) |
Gross profit |
21,957 |
|
(59 |
) |
22,016 |
|
13,846 |
|
(19 |
) |
13,865 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
(4,793 |
) |
(80 |
) |
(4,713 |
) |
(4,537 |
) |
(73 |
) |
(4,464 |
) |
Research and development |
(6,106 |
) |
(180 |
) |
(5,926 |
) |
(3,960 |
) |
(67 |
) |
(3,893 |
) |
General and administrative |
(4,146 |
) |
(1,043 |
) |
(3,103 |
) |
(4,922 |
) |
(2,201 |
) |
(2,721 |
) |
Income from operations |
$ |
6,912 |
|
$ |
(1,362 |
) |
$ |
8,274 |
|
$ |
427 |
|
$ |
(2,360 |
) |
$ |
2,787 |
|
Net income |
$ |
6,168 |
|
$ |
(1,362 |
) |
$ |
7,530 |
|
$ |
435 |
|
$ |
(2,360 |
) |
$ |
2,795 |
|
ACM Research (NASDAQ:ACMR)
Historical Stock Chart
From Aug 2024 to Sep 2024
ACM Research (NASDAQ:ACMR)
Historical Stock Chart
From Sep 2023 to Sep 2024