Start Time: 16:30 January 1, 0000 5:00 PM ET Ichor Holdings, Ltd. (NASDAQ:ICHR) Q1 2023 Earnings Conference Call May 09, 2023, 16:30 PM ET Company Participants Jeff Andreson - CEO Larry Sparks - CFO Claire McAdams - IR Conference Call Participants Brian Chin - Stifel Craig Ellis - B. Riley Securities Quinn Bolton - Needham & Company Robert Mertens - Cowen & Company Operator Claire McAdams Good afternoon and thank you for joining today's First Quarter 2023 Conference Call. As you read our earnings press rele ...

Financial Performance - Revenue for 2022 was $1,280.1 million, an increase from $1,096.9 million in 2021, representing a growth of approximately 16.7%[19] - Net income for 2022 was $72.8 million, compared to $70.9 million in 2021, reflecting a growth of about 2.7%[19] - Total capital expenditures in 2022 were $29.4 million, which is 2.3% of sales, significantly up from $20.8 million (1.9% of sales) in 2021[24] Market Position and Strategy - The company aims to grow its market share within existing customers by leveraging specialized engineering talent and early collaboration, targeting a broader range of process tools[25] - The acquisition of IMG Companies in November 2021 expanded the company's product offerings and customer base, including entry into medical and aerospace sectors[27] - The company has established long-standing relationships with top-tier customers, including Lam Research, Applied Materials, and ASML, which are critical for competitive positioning[22] - The semiconductor capital equipment market is cyclical, and the company has structured its business to minimize fixed costs, allowing for growth in net income at a higher rate than sales during growth periods[24] - The company is actively engaging with new customers in various sectors, including those considering outsourcing their gas and chemical delivery needs[28] - The semiconductor equipment market is highly concentrated, with five companies accounting for over 70% of all process tool revenues[37] - In 2022, the two largest customers, Lam Research and Applied Materials, accounted for a combined 79% of sales[37] Innovation and Development - As of December 30, 2022, the engineering team consisted of approximately 90 engineers and designers, enhancing the company's product development capabilities[46] - The company has established an ESG council to support sustainable practices and community involvement, with a five-year roadmap initiated in 2022[58] - As of December 30, 2022, the company had 59 granted patents and 67 pending patent applications, indicating a strong focus on intellectual property[50] - The company is focused on improving manufacturing process efficiency to reduce cycle times and costs, enhancing profitability and product attractiveness[29] - The average order-to-delivery cycle time for manufacturing a gas delivery system can be as little as 20 to 30 days[40] Operations and Manufacturing - The company operates ISO 9001 certified manufacturing locations and adheres to strict design tolerances and specifications[41] - The company utilizes just-in-time stocking programs to manage component inventories and respond to changing customer requirements[44] - Approximately 2,280 full-time employees and 700 contract or temporary workers were employed as of December 30, 2022, supporting operational flexibility[53] Financial Management and Risks - Total indebtedness as of December 30, 2022, was $302.5 million, with $7.5 million payable within the next 12 months[209] - The interest rate on outstanding debt is based on the Bloomberg Short-Term Bank Yield Index, with a hypothetical 100 basis point change resulting in a $3.0 million change to annual interest expense[209] - The company does not expect foreign currency exchange rate fluctuations to materially affect its results, as most sales and supplier arrangements are in U.S. dollars[207] - Operating expenses may be subject to fluctuations due to foreign currency exchange rates, particularly in currencies such as the Singapore dollar and euro[208] - The company has not engaged in foreign currency hedging transactions, and foreign currency transaction gains and losses have not been material to financial statements[208] - The company has not used derivative financial instruments to manage interest rate risk exposure[209] Compliance and Environmental - The company believes it operates in substantial compliance with environmental regulations, but future compliance costs could be significant[206] - There are no known environmental investigations, lawsuits, or claims against the company at this time[206] Investor Relations - The company maintains a variety of information available on its Investor Relations website, including annual and quarterly reports[60] - The SEC maintains a site with reports and information regarding issuers that file documents electronically[61]

Financial Data and Key Metrics Changes - Q4 revenues were $302 million, up 5% year-over-year but down 15% from the record third quarter [41] - Gross margin improved to 16.7%, with a flow-through of approximately 25% compared to Q3 [41] - Q1 revenue guidance is between $210 million to $240 million, reflecting a 25% decline from Q4 [42] - Operating expenses are expected to decline to approximately $21.7 million in Q1 due to headcount and spending reductions [42] Business Line Data and Key Metrics Changes - The company expects significant growth in the gas delivery business, particularly serving the EUV lithography market [39] - The lithography segment is expected to increase by 25%, while non-litho segments are projected to decline by 25% to 30% [48] - The company anticipates a 5% outperformance in the non-litho WFE segment compared to the overall market decline [15][84] Market Data and Key Metrics Changes - The overall WFE market is expected to decline by 20% to 25% in 2023, with the memory market potentially down by 50% [65] - The company has reduced its exposure to the memory market to below 40% of revenues [65] - The company expects a recovery in customer demand towards the end of the year, contingent on the slope of the recovery [66] Company Strategy and Development Direction - The company is focusing on qualifying new components and expanding its market share, particularly in the components business [49] - Continued investments in R&D and optimization of capacity are planned to support future growth [40] - The company aims to manage its variable operating model to adjust to lower levels of WFE demand while maintaining discipline on operating expenses [40] Management's Comments on Operating Environment and Future Outlook - Management noted a softening business environment and reduced shipment levels expected for the March quarter [37] - The company remains confident in showing solid financial results and strong cash flow performance during 2023 [50] - Management expects to see a balanced WFE demand environment between the first and second half of 2023 [37] Other Important Information - Cash conversion of working capital improved, generating $32 million of free cash flow in Q4 [52] - Total cash at quarter end was $86 million, with total debt at $303 million [52] - The company plans to be more aggressive with debt paydowns as cash flow generation improves [23] Q&A Session Summary Question: How is the gas delivery segment performing compared to other segments? - Management indicated that gas delivery is expected to perform relatively well compared to other segments, particularly in the first half of the year [7] Question: What are the expectations for operating expenses and staffing? - Management confirmed that most SG&A-focused reductions have been implemented, with operating expenses expected to decline significantly in Q1 [8][11] Question: Can you clarify the company's ability to outperform WFE? - Management stated that they expect to outperform the non-litho WFE segment by about five percentage points, despite the overall market decline [15][16] Question: What is the outlook for gross margins in the upcoming quarters? - Management expects gross margins to remain stable between Q1 and Q2, with potential improvements in the second half of the year due to share gains [25] Question: How does the company plan to address debt and interest expenses? - Management plans to use strong cash flow generation to pay down debt, with interest expenses expected to rise due to increasing rates [23][70] Question: What is the timeline for new product revenue generation? - Management indicated that significant revenue from new gas panel products is expected to start in late 2023, with ongoing evaluations [78][99]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) Cayman Islands Not Applicable ( State or other jurisdiction of incorporation or organization) 3185 Laurelview Ct. Fremont, CA 94538 (Address of principal executive offices) (Zip Code) (I.R.S. Employer Identification No.) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF TH ...

Ichor Holdings, Ltd. (NASDAQ:ICHR) Q3 2022 Earnings Conference Call November 8, 2022 4:30 PM ET Company Participants Claire McAdams - Investor Relations Jeff Andreson - Chief Executive Officer Larry Sparks - Chief Financial Officer Conference Call Participants Quinn Bolton - Needham & Co Craig Ellis - B. Riley Securities Robert Burns - Cowen Hans Chung - D.A. Davidson Operator Good day, ladies and gentlemen and welcome to Ichor's Third Quarter 2022 Earnings Conference Call. At this time, all participants ar ...

chor Investor Presentation Jefferies Semiconductor, IT Hardware & Communications Infrastructure Summit August 30, 2022 Proprietary Forward-Looking Statements, Non-GAAP Financials and COVID-19 This Presentation and the accompanying oral presentation include "forward‐looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding Ichor Holdings, Ltd. and its subsidiaries ("Ichor" or the "Company"), i ...

ichor D.A. Davidson Big Sky Technology Summit August 22, 2022 Proprietary Investor Presentation Forward-Looking Statements, Non-GAAP Financials and COVID-19 This Presentation and the accompanying oral presentation include "forward‐looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding Ichor Holdings, Ltd. and its subsidiaries ("Ichor" or the "Company"), its financial condition, its results ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 1, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __ to __ Commission File Number: 001-37961 ICHOR HOLDINGS, LTD. (Exact Name of Registrant as Specified in its Charter) Cayman Islands Not Applicable ( State or ot ...

Ichor Holdings, Ltd. (NASDAQ:ICHR) Q2 2022 Earnings Conference Call August 9, 2022 4:30 PM ET Company Participants Claire McAdams - Investor Relations Jeff Andreson - Chief Executive Officer Larry Sparks - Chief Financial Officer Conference Call Participants Tom Diffely - D.A. Davidson Patrick Ho - Stifel Trevor Janoski - Needham & Company Robert Mertens - Cowen Michael Manny - B. Riley Operator Good day, ladies and gentlemen and welcome to Ichor's Second Quarter 2022 Earnings Conference Call. [Operator Ins ...

418 ichor Proprietary Investor Presentation Q1 2022 Update Forward-Looking Statements, Non-GAAP Financials and COVID-19 This Presentation and the accompanying oral presentation include "forward‐looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding Ichor Holdings, Ltd. and its subsidiaries ("Ichor" or the "Company"), its financial condition, its results of operations and the potential offe ...