Financial Data and Key Metrics Changes - Q2 revenues reached $240 million, reflecting an 18% year-over-year increase and at the upper end of expectations, although 2% lower than Q1 [14] - Q2 gross margin was 12.5%, a slight increase of 10 basis points from Q1 but at the lower end of expectations due to hiring challenges [14] - Operating income for Q2 was $6.1 million, with net interest expense aligned with expectations at $1.6 million [14] Business Line Data and Key Metrics Changes - The revenue upside in Q2 was primarily driven by the lower margin gas panel integration business [4] - Hiring and retention challenges have limited output volumes, impacting the ability to achieve expected gross margins [5][6] - Significant progress was made in qualifying new proprietary components, including a major milestone with the flow control product [9][10] Market Data and Key Metrics Changes - Customer demand environment remains steady, with expectations for modest growth in wafer fab equipment (WFE) for 2025 [6] - Year-to-date revenues are up 20% year-over-year, with expectations to outperform overall WFE growth for 2025 [6] - Demand for NAND investments is continuing into the second half, while advanced packaging has plateaued [35] Company Strategy and Development Direction - The company is focused on ramping internal supply to meet strong customer demand and improve gross margins [6][10] - A new product strategy is gaining traction, with ongoing qualifications and commercialization of proprietary components [10] - The company aims to achieve a gross margin target of 20% as it scales production and aligns output with customer needs [77] Management's Comments on Operating Environment and Future Outlook - Management expressed a more conservative view on hiring and gross margin expectations for the upcoming quarters [12] - The second half of 2025 is expected to be slightly front-half weighted, with potential for a slower quarter in December [11] - Management remains confident in the long-term strategy but acknowledges the need for improved visibility on revenue growth and cost targets before raising gross margin expectations significantly [12] Other Important Information - The company announced CEO succession plans, with the current CEO remaining until a successor is identified [18][19] - The balance sheet shows cash and equivalents totaling $92 million, down from Q1, reflecting working capital investments [15] Q&A Session Summary Question: Can you unpack the dynamics that affected gross margins in Q2? - Management indicated that hiring challenges and turnover impacted the ability to meet production needs, which affected gross margins [25][26] Question: Where is the demand coming from in Q3? - Demand is strong in foundry logic and NAND, while advanced packaging has plateaued [35] Question: Are there any market share issues arising from hiring or retention challenges? - Management noted that market share is impacted by internal supply issues, as external purchases prevent capturing market share [44] Question: What are the expectations for the second half of the year? - Management expects a slight decline in the second half, primarily due to timing of shipments and customer demand patterns [90][91] Question: Are tariffs impacting the business? - Management confirmed that tariffs are being passed on to customers, and regulations are clearer now, allowing for better management of impacts [61][62]

Financial Data and Key Metrics Changes - Q2 2025 revenues were $240 million, reflecting an 18% year-over-year increase and at the upper end of expectations, but 2% lower than Q1 [16][17] - Q2 gross margin was 12.5%, a slight increase of 10 basis points from Q1, but at the lower end of expectations due to hiring challenges [17] - Operating income for Q2 was $6.1 million, with net interest expense aligned with expectations at $1.6 million [17] - EPS for the quarter was $0.03 per share, impacted by a higher-than-expected tax expense of $3.2 million [17] Business Line Data and Key Metrics Changes - The revenue upside in Q2 was primarily driven by the lower margin gas panel integration business [5] - The company faced hiring and retention challenges that limited output volumes, impacting gross margins [6][14] - Significant progress was made in qualifying new products, including a major milestone with the flow control product [10][11] Market Data and Key Metrics Changes - The customer demand environment remains steady, with expectations for modest growth in wafer fab equipment (WFE) for 2025 [7] - Year-to-date revenues were up 20% year-over-year, indicating that the company expects to outperform overall WFE growth for 2025 [7] - Demand for NAND and foundry logic remains strong, while advanced packaging has plateaued [37][39] Company Strategy and Development Direction - The company is focused on ramping internal supply to meet strong customer demand and improve gross margins [7][9] - A new product strategy is gaining traction, with ongoing qualifications and commercializations of proprietary components [12] - The company is proactively reducing costs elsewhere to secure necessary headcount in US machining operations [6] Management's Comments on Operating Environment and Future Outlook - Management expressed a more conservative view on hiring and gross margin expectations for the upcoming quarters [14] - The outlook for 2025 is slightly front-half weighted, with potential for a slower quarter in December [13] - Management remains confident in the long-term gross margin targets but emphasizes the need for improved visibility on revenue growth [14] Other Important Information - The company announced CEO succession plans, with the current CEO remaining until a successor is identified [21][22] - The company recorded exit costs of $5.7 million related to personnel and facility costs, with potential for additional charges in Q3 and Q4 [18] Q&A Session Summary Question: Can you unpack the dynamics that affected gross margins in Q2? - Management indicated that hiring challenges and turnover impacted the ability to meet production needs, which affected gross margins [28][30] Question: Where is the demand coming from for Q3? - Demand is primarily coming from foundry logic and NAND, while advanced packaging has plateaued [37][39] Question: Are there any market share issues arising from hiring and retention challenges? - Management stated that market share is affected by internal supply issues, as external purchases do not capture market share [46] Question: What are the expected tax implications from recent legislation? - Management indicated no near-term material benefits from new tax legislation due to the current tax position [74] Question: Is the target of 20% gross margin still attainable? - Management confirmed that the 20% gross margin target remains a goal, contingent on successful product qualifications and internal sourcing [78][80]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) This section provides an overview of Ichor Holdings, Ltd.'s Q2 2025 financial performance and key strategic commentary from the CEO [Q2 2025 Financial Highlights (GAAP & Non-GAAP)](index=1&type=section&id=Q2%202025%20Financial%20Highlights%20(GAAP%20%26%20Non-GAAP)) Ichor reported Q2 2025 revenue of **$240.3 million**, GAAP net loss of **$(9.4) million**, and non-GAAP net income of **$1.1 million** | Metric | Q2 2025 (GAAP) | Q2 2025 (Non-GAAP) | | :--- | :--- | :--- | | Net sales | $240,285 | N/A | | Gross margin | 11.3 % | 12.5 % | | Operating margin | (2.0)% | 2.6 % | | Net loss/income | $(9,408) | $1,097 | | Diluted EPS | $(0.28) | $0.03 | - Revenue of **$240.3 million** exceeded the mid-point of the company's guidance range communicated in May[4](index=4&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Jeff Andreson highlighted steady customer demand, proprietary product expansion, and anticipated 2025 revenue growth outperforming the wafer fab equipment industry - Progress made in driving the expansion of the proprietary product portfolio within a relatively steady customer demand environment year-to-date[1](index=1&type=chunk) - **2025** is shaping up to be a solid revenue growth year for Ichor, with expectations to outperform the wafer fab equipment industry's growth[1](index=1&type=chunk) - Focus for the second half of the year remains on increasing manufacturing capacity and aligning production to meet targeted product margins[1](index=1&type=chunk) [Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) This section details Ichor's GAAP and non-GAAP financial results for Q2 2025 and provides the financial outlook for Q3 2025 [U.S. GAAP Financial Results](index=1&type=section&id=U.S.%20GAAP%20Financial%20Results) Q2 2025 GAAP revenue was **$240.3 million**, with a net loss of **$(9.4) million** and diluted EPS of **$(0.28)** | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net sales | $240,285 | $244,465 | $203,227 | | Net loss | $(9,408) | $(4,559) | $(5,112) | | Diluted EPS | $(0.28) | $(0.13) | $(0.15) | [Non-GAAP Financial Results](index=1&type=section&id=Non-GAAP%20Financial%20Results) Non-GAAP net income for Q2 2025 was **$1.1 million**, a decrease from prior quarters, with diluted EPS at **$0.03** | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Non-GAAP Net income | $1,097 | $4,236 | $1,819 | | Non-GAAP Diluted EPS | $0.03 | $0.12 | $0.05 | [Third Quarter 2025 Financial Outlook](index=2&type=section&id=Third%20Quarter%202025%20Financial%20Outlook) Ichor projects Q3 2025 revenue between **$225 million** and **$245 million**, with GAAP diluted EPS from **$(0.12)** to **$0.00** and non-GAAP diluted EPS from **$0.06** to **$0.18** | Metric | Low-End | Mid-Point | High-End | | :--- | :--- | :--- | :--- | | Revenue | $225 million | $235 million | $245 million | | GAAP diluted EPS | $(0.12) | $(0.06) | $0.00 | | Non-GAAP diluted EPS | $0.06 | $0.12 | $0.18 | - The outlook for non-GAAP diluted EPS excludes approximately **$2.1 million** for amortization of intangible assets and **$4.4 million** for share-based compensation expense, as well as related income tax effects[5](index=5&type=chunk) [Balance Sheet and Cash Flow Analysis](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Analysis) This section analyzes Ichor's cash position, operating cash flow, and changes in operating assets and liabilities for Q2 2025 [Cash and Cash Equivalents](index=2&type=section&id=Cash%20and%20Cash%20Equivalents) Ichor ended Q2 2025 with **$92.2 million** in cash, a **$17.1 million** decrease from the prior quarter and **$16.4 million** from the prior year-end | Period | Cash and Cash Equivalents ($ in millions) | | :--- | :--- | | June 27, 2025 | $92.2 million | | Decrease from Q1 2025 | $(17.1) million | | Decrease from Dec 27, 2024 | $(16.4) million | - The **$17.1 million** decrease in Q2 2025 was primarily due to net cash used in operating activities (**$7.5 million**), capital expenditures (**$7.3 million**), net payments on credit facilities (**$1.9 million**), and net cash payments related to share-based compensation (**$0.4 million**)[7](index=7&type=chunk) [Operating Activities Cash Flow](index=2&type=section&id=Operating%20Activities%20Cash%20Flow) Q2 2025 saw **$7.5 million** in cash used in operating activities, driven by increased net operating assets and a net loss, partially offset by non-cash charges - Net cash used in operating activities for Q2 2025: **$(7.5) million**[8](index=8&type=chunk) - Primary drivers for cash used: increase in net operating assets and liabilities (**$12.8 million**) and net loss (**$9.4 million**)[8](index=8&type=chunk) - Partially offset by net non-cash charges (**$14.7 million**), primarily depreciation and amortization (**$8.0 million**) and share-based compensation expense (**$4.2 million**)[8](index=8&type=chunk) [Changes in Operating Assets and Liabilities](index=2&type=section&id=Changes%20in%20Operating%20Assets%20and%20Liabilities) The **$12.8 million** increase in net operating assets and liabilities in Q2 2025 was mainly due to decreased accounts payable, partially offset by lower inventories - Q2 2025 increase in net operating assets and liabilities (**$12.8 million**) primarily due to a decrease in accounts payable of **$14.8 million**, partially offset by a decrease in inventories of **$4.1 million**[9](index=9&type=chunk) - Six months ended June 27, 2025, increase in net operating assets and liabilities (**$1.8 million**) primarily due to an increase in inventory of **$9.3 million** and a decrease in other liabilities of **$2.9 million**, partially offset by a decrease in accounts receivable of **$5.8 million** and a decrease in prepaid expenses and other assets of **$4.8 million**[10](index=10&type=chunk) [Company Information & Disclosures](index=3&type=section&id=Company%20Information%20%26%20Disclosures) This section outlines Ichor's use of non-GAAP metrics, company profile, fiscal year details, and forward-looking statement disclaimers [Use of Non-GAAP Financial Results](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Results) Ichor uses non-GAAP metrics to assess performance, excluding items like amortization and share-based compensation, but cautions against their use as sole indicators - Management uses non-GAAP metrics (gross profit, operating income, net income/loss, diluted EPS, free cash flow) to evaluate operating and financial results, believing they are useful for investors to analyze business trends and compare performance[11](index=11&type=chunk) - Non-GAAP adjustments typically exclude amortization of intangible assets, share-based compensation expense, discrete or infrequent charges/gains (e.g., transaction-related costs, facility shutdown costs, severance), and their associated tax impacts[12](index=12&type=chunk) - Non-GAAP results have limitations as analytical tools and should not be considered in isolation or as substitutes for results reported under GAAP[13](index=13&type=chunk) [About Ichor](index=3&type=section&id=About%20Ichor) Ichor Holdings, Ltd. is a leading designer and manufacturer of critical fluid delivery subsystems and components for semiconductor capital equipment and other industries - Ichor is a leader in the design, engineering, and manufacturing of critical fluid delivery subsystems and components[16](index=16&type=chunk) - Primarily serves the semiconductor capital equipment industry, also other industries like defense/aerospace and medical[16](index=16&type=chunk) - Primary product offerings include gas and chemical delivery subsystems, precision-machined components, weldments, e-beam and laser welded components, precision vacuum and hydrogen brazing, and surface treatment technologies[16](index=16&type=chunk) [Fiscal Year Information](index=4&type=section&id=Fiscal%20Year%20Information) Ichor operates on a 52- or 53-week fiscal year ending the last Friday in December, with Q2 2025, Q1 2025, and Q2 2024 each being 13-week periods - The company uses a 52- or 53-week fiscal year ending on the last Friday in December. The three-month periods ended June 27, 2025, March 28, 2025, and June 28, 2024, were each **13 weeks**[17](index=17&type=chunk) [Safe Harbor Statement](index=4&type=section&id=Safe%20Harbor%20Statement) The release contains forward-looking statements subject to risks like geopolitical conditions, personnel retention, and industry cycles, with no obligation to update - The release contains "forward-looking statements" regarding future events, including the outlook for Q3 2025, revenue levels, industry growth, and investments in R&D[18](index=18&type=chunk) - Actual results could differ materially due to various factors, including geopolitical/economic conditions, inability to attract/retain key personnel, dependence on semiconductor capital equipment industry cycles and a small number of OEMs, competitiveness, technological innovation, product development, litigation, manufacturing/procurement management, product defects, and dependence on limited suppliers[19](index=19&type=chunk) - The company undertakes no obligation to update or revise any forward-looking statements, except as required by law[19](index=19&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents Ichor's consolidated balance sheets, statements of operations, and cash flows for the reported periods [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 27, 2025, total assets were **$985.1 million**, total liabilities **$290.9 million**, and total shareholders' equity **$694.1 million** | Metric | June 27, 2025 | March 28, 2025 | December 27, 2024 | June 28, 2024 | | :--- | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $92,224 | $109,281 | $108,669 | $114,349 | | Total current assets | $439,128 | $459,834 | $452,620 | $418,636 | | Total assets | $985,068 | $1,006,613 | $995,564 | $947,689 | | Total current liabilities | $136,423 | $148,916 | $135,670 | $98,116 | | Total liabilities | $290,921 | $306,252 | $297,228 | $252,813 | | Total shareholders' equity | $694,147 | $700,361 | $698,336 | $694,876 | [Consolidated Statement of Operations](index=6&type=section&id=Consolidated%20Statement%20of%20Operations) Q2 2025 net sales were **$240.3 million**, resulting in a gross profit of **$27.2 million** (11.3% margin), an operating loss of **$(4.8) million**, and a net loss of **$(9.4) million** | Metric | Three Months Ended June 27, 2025 | Three Months Ended March 28, 2025 | Three Months Ended June 28, 2024 | | :--- | :--- | :--- | :--- | | Net sales | $240,285 | $244,465 | $203,227 | | Cost of sales | $213,083 | $215,943 | $177,670 | | Gross profit | $27,202 | $28,522 | $25,557 | | Operating expenses | $32,042 | $29,694 | $27,819 | | Operating loss | $(4,840) | $(1,172) | $(2,262) | | Net loss | $(9,408) | $(4,559) | $(5,112) | | Diluted EPS | $(0.28) | $(0.13) | $(0.15) | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In Q2 2025, Ichor experienced net cash outflows of **$(7.5) million** from operations, **$(7.3) million** from investing, and **$(2.3) million** from financing, totaling a **$(17.1) million** decrease in cash | Cash Flow Activity | Three Months Ended June 27, 2025 | Three Months Ended March 28, 2025 | Three Months Ended June 28, 2024 | | :--- | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(7,508) | $18,977 | $17,492 | | Net cash used in investing activities | $(7,291) | $(18,481) | $(2,847) | | Net cash provided by (used in) financing activities | $(2,258) | $116 | $(2,420) | | Net increase (decrease) in cash | $(17,057) | $612 | $12,225 | | Cash at end of period | $92,224 | $109,281 | $114,349 | [Non-GAAP Reconciliations](index=8&type=section&id=Non-GAAP%20Reconciliations) This section provides reconciliations of GAAP to non-GAAP gross profit, operating income, net income, and free cash flow [Reconciliation of Gross Profit](index=8&type=section&id=Reconciliation%20of%20U.S.%20GAAP%20Gross%20Profit%20to%20Non-GAAP%20Gross%20Profit) Q2 2025 GAAP gross profit was **$27.2 million** (11.3% margin), adjusted to a non-GAAP gross profit of **$30.0 million** (12.5% margin) after **$2.8 million** in adjustments | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | U.S. GAAP gross profit | $27,202 | $28,522 | $25,557 | | Non-GAAP adjustments (total) | $2,771 | $1,794 | $877 | | Non-GAAP gross profit | $29,973 | $30,316 | $26,434 | | U.S. GAAP gross margin | 11.3 % | 11.7 % | 12.6 % | | Non-GAAP gross margin | 12.5 % | 12.4 % | 13.0 % | - Non-GAAP adjustments for Q2 2025 included **$774k** for share-based compensation, **$1,619k** for facility shutdown costs (related to Scotland operations exit, including obsolete inventory write-off and severance), and **$378k** for other severance costs[29](index=29&type=chunk)[30](index=30&type=chunk) [Reconciliation of Operating Income (Loss)](index=9&type=section&id=Reconciliation%20of%20U.S.%20GAAP%20Operating%20Loss%20to%20Non-GAAP%20Operating%20Income) Q2 2025 GAAP operating loss was **$(4.8) million** ((2.0)% margin), adjusted to a non-GAAP operating income of **$6.1 million** (2.6% margin) after **$11.1 million** in adjustments | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | U.S. GAAP operating loss | $(4,840) | $(1,172) | $(2,262) | | Non-GAAP adjustments (total) | $11,087 | $7,747 | $6,757 | | Non-GAAP operating income | $6,147 | $6,575 | $4,495 | | U.S. GAAP operating margin | (2.0)% | (0.5)% | (1.1)% | | Non-GAAP operating margin | 2.6 % | 2.7 % | 2.2 % | - Non-GAAP adjustments for Q2 2025 included **$2,078k** for amortization of intangible assets, **$4,227k** for share-based compensation, **$4,296k** for facility shutdown costs (related to Scotland operations exit, including inventory write-off, lease impairment, accelerated depreciation, and severance), and **$386k** for other severance costs[31](index=31&type=chunk)[33](index=33&type=chunk) [Reconciliation of Net Income (Loss)](index=10&type=section&id=Reconciliation%20of%20U.S.%20GAAP%20Net%20Loss%20to%20Non-GAAP%20Net%20Income%20(Loss)) Q2 2025 GAAP net loss was **$(9.4) million**, adjusted to a non-GAAP net income of **$1.1 million** (diluted EPS of **$0.03**) after **$10.5 million** in adjustments | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | U.S. GAAP net loss | $(9,408) | $(4,559) | $(5,112) | | Non-GAAP adjustments (total) | $10,505 | $8,795 | $6,927 | | Non-GAAP net income (loss) | $1,097 | $4,236 | $1,819 | | U.S. GAAP diluted EPS | $(0.28) | $(0.13) | $(0.15) | | Non-GAAP diluted EPS | $0.03 | $0.12 | $0.05 | - Non-GAAP adjustments for Q2 2025 included **$2,078k** for amortization of intangible assets, **$4,227k** for share-based compensation, **$4,296k** for facility shutdown costs, **$386k** for other severance costs, and **$(482)k** for tax adjustments related to non-GAAP adjustments[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) [Reconciliation of Free Cash Flow](index=11&type=section&id=Reconciliation%20of%20U.S.%20GAAP%20Net%20Cash%20Provided%20by%20Operating%20Activities%20to%20Free%20Cash%20Flow) In Q2 2025, net cash used in operating activities was **$(7.5) million**, leading to a free cash flow of **$(14.8) million** after **$(7.3) million** in capital expenditures | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(7,508) | $18,977 | $17,492 | | Capital expenditures | $(7,291) | $(18,481) | $(2,847) | | Free cash flow | $(14,799) | $496 | $14,645 |

Core Viewpoint - Ichor Holdings (ICHR) is anticipated to report a year-over-year increase in earnings and revenues for the quarter ended June 2025, with earnings expected to be $0.14 per share, reflecting a 180% increase, and revenues projected at $235.48 million, up 15.9% from the previous year [1][3]. Earnings Expectations - The upcoming earnings report is scheduled for August 4, and the stock may rise if the reported numbers exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +12.28% for Ichor Holdings, suggesting analysts have recently become more optimistic about the company's earnings prospects [12]. - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. Historical Performance - In the last reported quarter, Ichor Holdings had an expected EPS of $0.26 but reported only $0.12, resulting in a surprise of -53.85% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [14]. Industry Context - Qualcomm (QCOM), a peer in the electronics-semiconductors industry, is expected to report earnings of $2.68 per share, reflecting a 15% year-over-year increase, with revenues projected at $10.36 billion, up 10.3% from the previous year [18]. - Qualcomm's consensus EPS estimate has been revised up by 0.3% over the last 30 days, and it has an Earnings ESP of +0.6%, indicating a likelihood of beating the consensus EPS estimate [19].

Core Insights - DPRG IM is a management-owned partnership with over 50 years of experience in real estate and financial markets, focusing on understanding industries and investment cycles [1] - The company aims to manage real estate equity that is often underutilized, providing a product that addresses the need for managing equity locked in properties [1] - DPRG IM has developed a Leveraged Long Only Absolute Return Strategy (LLARS) that prioritizes regular income while aiming for long-term growth, making it suitable for commercial real estate owners [1] Company Overview - DPRG IM originated from DPRG's private equity business and has established a track record in managing released funds through client mortgage facility banking [1] - The company has built strong banking relationships to finance European and UK real estate, adapting to country-specific pricing [1] - DPRG IM operates with a strong management team located in Nicosia, Cyprus, and has a presence in London, Monaco, and Dubai & Abu Dhabi [1] Investment Strategy - LLARS focuses on providing regular income on a quarterly basis, which is beneficial for servicing debt payments and maintenance costs [1] - The strategy enhances rental and free cash flow streams for commercial real estate owners without correlating to the asset's operations [1] - DPRG IM also offers structuring services, including legal, taxation, and cross-jurisdiction expertise to optimize capital efficiency [1] Regulatory Compliance - DPRG IM is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) with License No. 454/25, ensuring compliance with regulatory standards [1]

Core Insights - The article highlights the investment strategies of Paul Franke, a seasoned investor with 39 years of trading experience, emphasizing his contrarian stock selection style and the development of a system called "Victory Formation" for identifying stocks based on supply/demand imbalances [1] Group 1: Investment Strategies - Paul Franke suggests using a diversified approach by owning at least 50 well-positioned stocks to achieve regular stock market outperformance [1] - The "Bottom Fishing Club" articles focus on deep value candidates or stocks that are experiencing a significant reversal in technical momentum [1] - The "Volume Breakout Report" articles discuss positive trend changes supported by strong price and volume trading action [1] Group 2: Performance and Recognition - Franke was consistently ranked among the top investment advisors nationally during the 1990s and was recognized for his stock market and commodity macro views [1] - He achieved a top ranking in the Motley Fool® CAPS stock picking contest during parts of 2008 and 2009, out of over 60,000 portfolios [1] - As of June 2025, he was ranked in the Top 4% of bloggers by TipRanks® for 12-month stock picking performance based on suggestions made over the last decade [1]

Core Insights - Holzer & Holzer, LLC is investigating Ichor Holdings, Ltd. for potential compliance issues with federal securities laws following disappointing Q1 2025 financial results [1] - Ichor's CEO indicated that the company's strategy did not yield the expected margin flow due to higher-than-forecasted external supply purchases [1] - The announcement of these results led to a decline in Ichor's stock price [1] Company Overview - Ichor Holdings, Ltd. trades on NASDAQ under the ticker ICHR [1] - The company reported its Q1 2025 financial results on May 5, 2025 [1] Legal Context - Holzer & Holzer, LLC is a law firm specializing in securities litigation, representing shareholders and investors in various legal actions [3] - The firm has a history of recovering significant amounts for shareholders affected by corporate misconduct [3]

Core Viewpoint - Ichor Holdings, Ltd. is under investigation for potential violations of federal securities laws and unlawful business practices following disappointing financial results in Q1 2025, which led to a significant drop in stock price [1][2]. Financial Performance - On May 5, 2025, Ichor reported its Q1 2025 financial results, missing both EPS and revenue consensus estimates [2]. - The company reported a gross margin of 12.4%, which is below the forecasted midpoint of 14.5% [2]. - Ichor attributed the margin shortfall to purchasing more external supply than anticipated, which did not translate into expected margin flow [2]. Legal Investigation - Bragar Eagel & Squire, P.C. is investigating potential claims against Ichor on behalf of stockholders who may have suffered losses [1][3]. - The investigation focuses on whether Ichor has engaged in unlawful business practices or violated federal securities laws [1].

Financial Performance - Net sales for the three months ended March 28, 2025, were $244,465,000, representing a 21.4% increase from $201,383,000 for the same period in 2024[62] - The net loss for the three months ended March 28, 2025, was $4,559,000, an improvement from a net loss of $8,989,000 in the same period of 2024[62] - Non-GAAP net income for the same period was $4,236,000, compared to a non-GAAP net loss of $2,712,000 in the prior year[62] - Non-GAAP gross profit increased by $5,798 thousand (23.6%) from $24,518 thousand in Q1 2024 to $30,316 thousand in Q1 2025, with a non-GAAP gross margin of 12.4%[80] - Non-GAAP operating income rose to $6,575 thousand in Q1 2025 from $2,432 thousand in Q1 2024, reflecting a significant improvement in non-GAAP operating margin from 1.2% to 2.7%[80] - Non-GAAP net income increased to $4,236 thousand in Q1 2025 from a loss of $2,712 thousand in Q1 2024, with non-GAAP diluted EPS improving from -$0.09 to $0.12[82] Expenses - Research and development expenses increased by 9.4% to $5,874,000, driven by higher material and service costs related to new product development[71] - Selling, general, and administrative expenses rose by 13.1% to $21,742,000, primarily due to increased share-based compensation and IT system costs[72] - Interest expense, net decreased by $2,450 thousand (59.8%) from $4,096 thousand in Q1 2024 to $1,646 thousand in Q1 2025, primarily due to a reduction in weighted average borrowings outstanding and borrowing rate[74] - Other expense, net decreased by $158 thousand (66.1%) from $239 thousand in Q1 2024 to $81 thousand in Q1 2025, mainly due to currency exchange rate fluctuations[75] - Income tax expense increased by $747 thousand (81.8%) from $913 thousand in Q1 2024 to $1,660 thousand in Q1 2025, attributed to additional tax provisions in Singapore and valuation allowances in Scotland and Korea[76] Margins - Gross margin improved to 11.7% for the three months ended March 28, 2025, up from 11.4% in the prior year, attributed to lower excess and obsolete inventory expense[70] - Operating margin improved to (0.5)% for the three months ended March 28, 2025, compared to (1.9)% in the same period of 2024[62] Cash Flow and Liquidity - Cash provided by operating activities increased from $4,804 thousand in Q1 2024 to $18,977 thousand in Q1 2025, driven by favorable changes in working capital[89] - Cash and cash equivalents at the end of Q1 2025 were $109.3 million, an increase of $0.6 million from the previous year[88] - The company expects its cash and cash equivalents, along with available credit facilities, to be sufficient to meet business obligations for at least the next 12 months[86] Market Outlook - The semiconductor capital equipment industry is expected to see growth in 2025, particularly in etch and deposition markets, despite uncertain global trade conditions[63] - Future demand for semiconductors and related capital equipment is anticipated to grow, driven by the need for expanded manufacturing capacity[64] Company Operations - The company has a global footprint with production facilities in multiple countries, including the United States, Singapore, and Mexico[60] - There have been no material changes to the market risk information disclosed in the 2024 Annual Report on Form 10-K[95]

Core Viewpoint - Ichor Holdings reported quarterly earnings of $0.12 per share, missing the Zacks Consensus Estimate of $0.26 per share, and showing a significant decline from a loss of $0.09 per share a year ago, indicating a negative earnings surprise of -53.85% [1] Financial Performance - The company posted revenues of $244.47 million for the quarter ended March 2025, which was slightly below the Zacks Consensus Estimate by 0.19%, but an increase from $201.38 million in the same quarter last year [2] - Over the last four quarters, Ichor Holdings has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Ichor Holdings shares have declined approximately 34.9% since the beginning of the year, contrasting with the S&P 500's decline of -3.3% [3] - The current Zacks Rank for Ichor Holdings is 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.31 on revenues of $243.93 million, and for the current fiscal year, it is $1.27 on revenues of $972.13 million [7] - The trend for estimate revisions ahead of the earnings release was unfavorable, which may impact future stock performance [6] Industry Context - The Electronics - Semiconductors industry, to which Ichor Holdings belongs, is currently ranked in the top 28% of over 250 Zacks industries, suggesting a relatively strong industry performance [8] - The performance of Ichor Holdings may be influenced by the overall outlook for the industry [8]