Financial Data and Key Metrics Changes - Total revenue for Q1 2024 was $477.7 million, up from $444.8 million in the prior quarter [33] - Gross margin increased to 17.9% from 16.7% in the previous quarter, with product gross margin at 15.8% compared to 14.6% [13][33] - Earnings per share for the quarter were $0.27 on net income of $12.1 million, compared to $0.19 on net income of $8.5 million in the prior quarter [14] Business Line Data and Key Metrics Changes - Revenue from Products increased to $418.5 million from $389.7 million in the prior quarter, while Services revenue rose to $59.2 million from $55.1 million [33] - Operating margin for the quarter increased to 6.5% compared to 5.2% in Q4 [34] Market Data and Key Metrics Changes - Elevated demand from the domestic China market was noted, particularly in the semiconductor sector, driven by local chip manufacturing investments [5][26] - The company anticipates demand levels in China to remain consistent or slightly increase through the end of the year [27] Company Strategy and Development Direction - The company is focused on expanding and diversifying its vertical capabilities to participate in all levels of industry growth, from pad construction to production services [10] - UCT aims to leverage its strong relationships with technology leaders to advance their roadmaps and capitalize on the growing demand for localized chip manufacturing [9][29] Management's Comments on Operating Environment and Future Outlook - Management expects a broader-based recovery in the semiconductor market by 2025, with incremental rebalancing of supply and demand throughout the year [32] - The company is well-positioned to outperform in the next phase of industry growth, supported by strategic mapping of its global footprint [32] Other Important Information - The company received Intel's 2024 EPIC Distinguished Supplier Award for the second consecutive year, highlighting its performance among suppliers [11] - The company amended its Term B debt facility to extend it to February 2028 and increased the offering by $20 million while reducing the interest rate [15] Q&A Session Summary Question: How is the business trending with major customers like Intel and Samsung? - Management indicated that business with major customers is trending positively, with growth observed in the services segment due to fab relocations [21] Question: What is the exposure to Chinese OEMs? - Management clarified that while Chinese revenue is a small percentage of total revenue, it has doubled over the last few quarters, indicating healthy growth [49][55] Question: What are the expectations for WFE growth in 2025? - Management anticipates low-double digit growth in WFE for 2025, with the potential for stronger than expected results depending on market conditions [44] Question: When will memory customer utilization improve? - Management expects improvements in memory customer utilization to not show significant results until 2025, with services side being more difficult to predict [61]

Financial Performance - Non-GAAP net income for Q1'24 was $12.1 million[92], compared to $186.1 million in FY'21[92], $181.9 million in FY'22[92], and $25.2 million in FY'23[92] - Net income (Loss) per GAAP basis was $(0.21) million in Q1'24[15], compared to $2.69 million in FY'21[15], $0.88 million in FY'22[15], and $(0.70) million in FY'23[15] - Q1'24 gross margin was 17.9%[81] and the company had an operating cash flow of $9.8 million[81] with a cash balance of $293.0 million[82] - Q2'24 revenue is guided between $465 million and $515 million[84], with EPS between $0.16 and $0.36[93] Revenue Segmentation - In Q1'24, Memory WFE accounted for 32% of revenue, while Foundry & Logic WFE accounted for 51%[50] - Other OEMs accounted for 29% of revenue, with Applied contributing 23%[50] - Products revenue was $418.5 million with a gross margin of 15.8% and operating margin of 6.0%[83] - Services revenue was $59.2 million with a gross margin of 32.3% and operating margin of 10.1%[83] Strategic Initiatives - The company aims to expand its presence at other major OEMs and further diversify revenue by leveraging new high-growth device markets such as AI, 5G, IoT, and automotive, while also supporting the domestic China market[42] - The company intends to increase its share in manufactured components and further penetrate current >10% customers, with a goal to add additional >10% customers over the next several years[56] - The company is focused on opportunistic consolidation within the fragmented supply chain[56]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________________ Form 10-Q __________________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 29, 2024 or o 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 000-50646 _________ ...

HAYWARD, Calif., April 2, 2024 /PRNewswire/ -- Ultra Clean Holdings, Inc. (Nasdaq: UCTT), will announce its first quarter, 2024 financial results after market close on Monday, May 6, 2024, and will host a conference call and webcast beginning at 1:45 pm Pacific Time (4:45 pm Eastern Time) the same day. The conference call can be accessed by dialing 1-800-836-8184 or 1-646-357-8785. No passcode is required. A replay of the call will be available by dialing 1-888-660-6345 or 1-646-517-4150 and entering the co ...

HAYWARD, Calif., April 1, 2024 /PRNewswire/ -- Ultra Clean Holdings, Inc. (Nasdaq: UCTT), is proud to announce that it has earned Intel's EPIC Distinguished Supplier Award for the second year in a row. Through its dedication to Excellence, Partnership, Inclusion, and Continuous (EPIC) quality improvement, UCTT has achieved a level of performance that consistently exceeds Intel's expectations. "As one of the 27 Distinguished Supplier Award recipients in 2024, UCTT stands out among suppliers in Intel's truste ...

HAYWARD, Calif., March 19, 2024 /PRNewswire/ -- Ultra Clean Holdings, Inc. (Nasdaq: UCTT), today announced that it has received the Texas Instruments 2023 Supplier Excellence Award. The annual award honors companies whose dedication and commitment in supplying products and services meet TI's high standards for excellence. UCT is part of an elite group of suppliers chosen for their exemplary performance in the areas of cost, environmental and social responsibility, technology, responsiveness, assurance of su ...

Acquisition and Investments - Ultra Clean Holdings, Inc. acquired 100% of HIS Innovations Group for an initial cash consideration of $46.5 million, with potential additional cash consideration of up to $70.0 million based on performance through fiscal years 2023, 2024, and 2025[15]. - The company has made significant investments in advanced analytical and automated test equipment to improve testing capabilities for gas delivery products[19]. - The company has made acquisitions in the past and may continue to do so, facing potential integration difficulties and financial risks[77]. - The company’s acquisition agreements may include contingent earn-out arrangements based on future operating income thresholds, which are reassessed quarterly[183]. Revenue and Market Performance - Total revenues for fiscal year 2023 decreased by 26.9% to $1,734.5 million from $2,374.3 million in fiscal year 2022, primarily due to weaker demand in the semiconductor industry[188]. - International revenues accounted for 69.6% of total revenues in fiscal year 2023, up from 68.9% in 2022 and 65.1% in 2021[17]. - Approximately 93.2% of total revenues for fiscal year 2023 came from various segments of the semiconductor industry, including IDM, Foundry, OEM, and sub-tier suppliers[28]. - The two largest customers, Applied Materials, Inc. and Lam Research Corporation, represented 57.4% of total revenues in fiscal year 2023[27]. - U.S. revenues fell by 28.6% to $526.8 million, while international revenues decreased by 26.2% to $1,207.7 million[189]. Financial Performance - Gross profit declined by 40.4% to $277.3 million, with a gross margin of 16.0% compared to 19.6% in the previous year[195]. - Operating profit dropped by 70.8% to $35.2 million, resulting in an operating margin of 2.0%[196]. - The effective tax rate for fiscal year 2023 was significantly reduced to (96.5%) from 42.9% in the previous year, reflecting changes in geographic earnings distribution[205]. - Cash and cash equivalents decreased by $51.8 million to $307.0 million, primarily due to cash used in investing and financing activities[209]. Market Trends and Competition - The semiconductor market is expected to grow due to demand from new CPU architectures for cloud, AI, and machine learning applications[14]. - The company anticipates increased competitive pressures leading to intensified price-based competition, potentially requiring price reductions for its products[42]. - The company operates in highly competitive and rapidly evolving industries, facing intense competition that may lead to price reductions and loss of market share[91]. - Competitors may possess greater financial and technical resources, enabling them to respond quickly to market changes and potentially gain an advantage through mergers and acquisitions[92]. Operational Risks and Challenges - The company faces risks from the cyclical and volatile nature of the semiconductor and display industries, which could adversely affect operating results[69]. - The company relies on a limited number of OEMs and IDMs for a significant portion of its revenues, which could lead to challenges if these customers reduce orders[73]. - The company is exposed to risks associated with global economic volatility, which may impact customer spending and capital expenditures[81]. - The qualification process for customers is lengthy and complex, impacting the ability to quickly add new customers and maintain existing relationships[111]. Employee and Social Responsibility - The company emphasizes the importance of employee engagement and social responsibility, conducting 31 community support events in 2023[53]. - The company is committed to a sustainability program titled "SuCCESS2030" aimed at enhancing its supply chain's ethical and sustainable practices[44]. Intellectual Property and Confidentiality - The company has over 100 patents with various expiration dates, relying on a combination of trade secrets and confidentiality provisions to protect its proprietary rights[37]. - The company requires confidentiality agreements with employees, suppliers, and customers to protect sensitive information regarding its products and technology[38]. - The company relies heavily on trade secrets and contractual confidentiality to protect its intellectual property, which may be more vulnerable than if protected by patents[117]. Cash Flow and Liquidity - Operating activities generated cash inflows of $135.9 million for the year ended December 29, 2023, compared to $47.2 million in 2022[210]. - The company maintains sufficient capital to fund working capital needs, satisfy debt obligations, and make strategic acquisitions[211]. - Cash generated from operations and borrowings under a term loan were the principal sources of liquidity as of December 29, 2023[211]. Environmental and Regulatory Risks - The company may face significant liabilities due to environmental contamination at its production facilities, which could result in fines and remediation costs[128]. - The company is subject to various international laws and regulations that may evolve and conflict, posing compliance risks[88]. - The ongoing trade tensions between the U.S. and China have adversely impacted the company, particularly due to new export license requirements imposed in October 2022[123].

Ultra Clean Holdings, Inc. (NASDAQ:UCTT) Q4 2023 Earnings Conference Call February 21, 2024 4:45 PM ET Company Participants Rhonda Bennetto - SVP IR Jim Scholhamer - CEO Sheri Savage - CF Conference Call Participants Krish Sankar - TD Cowen Christian Schwab - Craig-Hallum Capital Group Operator Good day, ladies and gentlemen, and welcome to the Ultra Clean Technology Q4 and Full Year 2023 Earnings Call and Webcast Conference. [Operator Instructions] This call is being recorded on Wednesday, February 21, 202 ...

HAYWARD, Calif., Jan. 29, 2024 /PRNewswire/ -- Ultra Clean Holdings, Inc. (Nasdaq: UCTT), will announce its fourth quarter and full year 2023 financial results after market close on Wednesday, February 21, 2024, and will host a conference call and webcast beginning at 1:45 pm Pacific Time (4:45 pm Eastern Time) the same day. The conference call can be accessed by dialing 1-800-836-8184 or 1-646-357-8785. No passcode is required. A replay of the call will be available by dialing 1-888-660-6345 or 1-646-517-4 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 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 September 29, 2023 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 000-50646 Ultra Clean Holdings, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of inco ...