Revenue Performance - For the three months ended March 28, 2025, total revenues increased by 8.6% to $518.6 million compared to $477.7 million for the same period in 2024[100]. - Products segment revenues rose by 9.2% to $457.0 million, driven by increased customer demand and market improvement in the semiconductor industry[100]. - International revenues increased by 18.4% to $398.8 million, while U.S. revenues decreased by 15.0% to $119.8 million, reflecting a shift in product revenues to international markets[102]. Cost and Profitability - Cost of revenues increased by 10.0% to $434.6 million, with Products cost rising by 10.3% and Services cost increasing by 7.8%[104]. - Gross profit for the three months ended March 28, 2025, was $84.0 million, a 1.7% increase from $82.6 million in the prior year, with a total gross margin of 16.2%[106]. - Operating profit decreased by 25.4% to $12.9 million, with an operating margin of 2.5%, down from 3.6% in the prior year[109]. Expenses - Research and development expenses increased by 8.6% to $7.6 million, maintaining 1.5% of total revenues[112]. - General and administrative expenses rose by 9.0% to $48.6 million, primarily due to non-recurring separation costs related to the resignation of the former CEO[114]. Market Outlook - The semiconductor market is expected to continue growing due to multi-year industry demand driven by advancements in cloud, AI, and ML applications[96]. - The Services segment is benefiting from increased reliance on precision cleaning and coating by device manufacturers[96]. Interest and Other Income - Interest income for the three months ended March 28, 2025, was $1.1 million, a decrease of 21.4% compared to $1.4 million in the same period in 2024[115]. - Interest expense decreased to $9.9 million, down 18.9% from $12.2 million year-over-year, primarily due to lower interest rates[116]. - Other income (expense), net, increased by $4.6 million to $0.8 million, compared to a loss of $3.8 million in the prior year, driven by favorable foreign exchange transactions[116]. Tax and Cash Flow - Provision for income taxes was $7.4 million, a decrease of 25.3% from $9.9 million in the prior year, with an effective tax rate of 151.0% compared to 366.7%[118]. - Cash and cash equivalents increased to $317.6 million as of March 28, 2025, from $313.9 million at the end of December 2024, reflecting a net increase of $3.7 million[120]. - Operating activities generated cash of $28.2 million, a significant increase of $18.4 million compared to $9.8 million in the same period last year[120]. Capital Expenditures and Debt - Capital expenditures were $12.4 million for the three months ended March 28, 2025, primarily for investments in manufacturing facilities[131]. - The company had total bank debt of $480.9 million as of March 28, 2025, with a weighted average interest rate of 7.6%[126]. - As of March 28, 2025, the company had $146.4 million available under its revolving credit facility, in compliance with financial covenants[127]. - The company anticipates that existing cash and cash equivalents, along with operating cash flow, will be sufficient to meet liquidity needs for at least the next twelve months[123]. Management and Internal Controls - Management is in the process of designing and implementing change management and user access review controls for certain Fluid Solutions operating subsidiaries not yet migrated to the primary ERP system[143]. - Management continues to design and implement user access controls to ensure appropriate segregation of duties for financial applications and data[143]. - Controls over segregation of duties assessment are being established to identify key conflicts and maintain effective segregation of duties for international operating subsidiaries in the Products segment[143]. - Management believes that the actions taken will remediate the material weaknesses, but there is no assurance on the exact timing of completion[143]. - There were no changes in internal control over financial reporting during the quarter ended March 28, 2025, that materially affected internal controls[144].

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $518.6 million, down from $563.3 million in the previous quarter, missing the midpoint of revenue guidance by approximately $12 million [15][21] - Earnings per share (EPS) for the quarter were $0.28, compared to $0.51 in the prior quarter, primarily due to lower revenue and higher operating expenses [19] - Total gross margin for Q1 was 16.7%, slightly down from 16.8% in Q4 [16] - Operating margin for the quarter was 5.2%, down from 7.7% in the previous quarter [18] Business Line Data and Key Metrics Changes - Revenue from products was $457 million, down from $503.5 million in Q4, attributed to weakening demand [15] - Services revenue increased from $59.8 million in Q4 to $61.6 million in Q1, primarily driven by two top customers [15] Market Data and Key Metrics Changes - The company anticipates a modest decline in demand for Q2 2025, projecting total revenue between $475 million and $525 million [21] - The semiconductor market recovery is expected to be slower than previously anticipated, with the company expecting to maintain revenue levels around $500 million per quarter for the foreseeable future [6][34] Company Strategy and Development Direction - The company is focusing on optimizing its operations and cost structures in response to current market conditions, including reviewing headcount and organizational structure [15][61] - A localized supply chain strategy has been initiated to mitigate future supply chain disruptions, enhancing resilience by securing reliable local supply sources [10] - The company is committed to maintaining technology leadership and manufacturing excellence while reinforcing its competitive position in the semiconductor industry [13] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the ongoing geopolitical landscape and its impact on the semiconductor market, indicating that uncertainty may extend the current downturn [6][34] - Despite challenges, management remains optimistic about long-term growth in the semiconductor industry, citing its essential role in transformative megatrends [13] Other Important Information - The company has repurchased 182,000 shares at a cost of $3.4 million as part of its share repurchase program [20] - The tax rate for Q1 was 20%, with expectations for the full year to be in the low to mid-20s [19] Q&A Session Summary Question: What caused the softening demand late in the quarter? - Management indicated that the softening demand was related to two customers facing technical issues, which resulted in a $12 million shortfall in revenue guidance [26] Question: What is the revenue percentage from China for March? - Management refrained from providing specific numbers but indicated a slight revenue increase anticipated in Q2, with confidence in the China strategy [28][30] Question: Will the current weakness have a longer-term impact? - Management acknowledged uncertainty in the market but indicated that they do not expect a dramatic downturn, although minor fluctuations may occur [34] Question: What impact will tariffs have on the business? - Management has been actively analyzing potential tariff impacts and believes that the long-term effects will be minimal due to their "China for China" strategy [39][42] Question: Can you provide an update on the CEO search? - The search for a new CEO is ongoing, with an expected timeline of three to four more months [80]

Group 1 - Ultra Clean Holdings (UCTT) reported quarterly earnings of $0.28 per share, missing the Zacks Consensus Estimate of $0.31 per share, and showing a slight increase from $0.27 per share a year ago, resulting in an earnings surprise of -9.68% [1] - The company posted revenues of $518.6 million for the quarter ended March 2025, which was 1.03% below the Zacks Consensus Estimate, but an increase from $477.7 million year-over-year [2] - Ultra Clean shares have declined approximately 37.4% since the beginning of the year, contrasting with the S&P 500's decline of -6.1% [3] Group 2 - The earnings outlook for Ultra Clean is mixed, with the current consensus EPS estimate for the upcoming quarter at $0.24 on revenues of $507.4 million, and $0.99 on revenues of $2.1 billion for the current fiscal year [7] - The Zacks Industry Rank indicates that the Electronics - Manufacturing Machinery sector is currently in the bottom 5% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [8] Group 3 - The estimate revisions trend for Ultra Clean is mixed, leading to a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] - Entegris, another company in the same industry, is expected to report quarterly earnings of $0.69 per share, reflecting a year-over-year change of +1.5%, with revenues anticipated to be $788.96 million, up 2.3% from the previous year [9][10]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $518.6 million, down from $563.3 million in the previous quarter, missing the midpoint of revenue guidance by approximately $12 million [16][21] - Earnings per share (EPS) for the quarter were $0.28, compared to $0.51 in the prior quarter, primarily due to lower revenue and higher operating expenses [19] - Total gross margin for Q1 was 16.7%, slightly down from 16.8% in Q4 [17] Business Line Data and Key Metrics Changes - Revenue from products decreased to $457 million from $503.5 million in the previous quarter due to weakening demand [16] - Services revenue increased from $59.8 million in Q4 to $61.6 million in Q1, primarily driven by two top customers [16] Market Data and Key Metrics Changes - The company anticipates a modest decline in demand for June and expects to bounce around current revenue levels for the remainder of the year [7][21] - The semiconductor market recovery is expected to be slower than previously anticipated, with geopolitical uncertainties impacting demand [6][13] Company Strategy and Development Direction - The company is focusing on optimizing its operations and cost structures to align with current revenue levels, including reviewing headcount and organizational structure [15][61] - A localized supply chain strategy has been initiated to mitigate future disruptions and enhance market responsiveness [10] - The company aims to enhance its leadership position in the semiconductor equipment industry, despite ongoing uncertainties [13] Management's Comments on Operating Environment and Future Outlook - Management expressed that the current semiconductor market downturn is expected to extend, with a cautious outlook for the second half of the year [7][38] - The company remains confident in its "China for China" strategy, which is expected to mitigate tariff impacts [41][44] - Management believes that the semiconductor industry will continue to outperform other markets in the long term, driven by transformative megatrends [13] Other Important Information - The company has repurchased 182,000 shares at a cost of $3.4 million as part of its repurchase program [20] - The tax rate for the quarter was 20%, with expectations for a low to mid-20s rate for 2025 [19] Q&A Session Summary Question: What caused the softening demand late in the quarter? - Management indicated that the softening demand was related to two customers facing technical issues, which resulted in a $12 million shortfall in revenue guidance [26] Question: What is the outlook for China revenue? - Management anticipates a slight revenue increase in Q2 and further growth in the second half of the year, indicating that the "China for China" strategy is effective [27][31] Question: Will the current weakness have a longer-term impact? - Management acknowledged uncertainty in the market but does not expect a dramatic downturn, suggesting a minor downturn may occur [36] Question: What impact will tariffs have on the business? - Management has been analyzing potential tariff impacts and believes that the long-term effects will be minimal due to the "China for China" strategy [44] Question: What is the status of the CEO search? - The search for a new CEO is ongoing, with an expected timeline of three to four more months [79]

Financial Performance (Q1'25) - Total revenue reached $518.6 million[36] - Gross margin was 16.7%[36] - Operating margin was 5.2%[36] - Operating cash flow amounted to $28.2 million[36] - Cash balance stood at $317.6 million[36] - Earnings per share (EPS) was $0.28[36] Segment Performance (Q1'25) - Products revenue was $457.0 million with a gross margin of 14.9% and an operating margin of 4.6%[37] - Services revenue was $61.6 million with a gross margin of 29.8% and an operating margin of 10.2%[37] Q2'25 Guidance - Revenue is projected to be between $475 million and $525 million[38] - EPS is expected to be between $0.17 and $0.37[38] Growth Strategy - The company has a proven growth strategy through acquisitions, as demonstrated by past purchases that led to significant revenue growth and gross margin expansion[7]

Exhibit 99.1 Press Release Source: Ultra Clean Holdings, Inc. Ultra Clean Reports First Quarter 2025 Financial Results HAYWARD, Calif., April 28, 2025 /PRNewswire/ Ultra Clean Holdings, Inc. (Nasdaq: UCTT), today reported its financial results for the first quarter ended March 28, 2025. "UCT's first quarter results were impacted by softening demand late in the quarter as customers reassessed their spending in reaction to an increasingly uncertain and volatile business environment," said Clarence Granger, UC ...

Core Viewpoint - Ultra Clean Holdings, Inc. reported a decline in financial performance for the first quarter of 2025, attributing this to softening demand and an uncertain business environment [2][3]. Financial Results - Total revenue for Q1 2025 was $518.6 million, down from $563.3 million in the previous quarter, with product revenue at $457.0 million and service revenue at $61.6 million [2]. - The gross margin was 16.2%, operating margin was 2.5%, and the company reported a net loss of $0.5 million or $0.11 per diluted share, compared to a net income of $16.3 million or $0.36 per diluted share in the prior quarter [2]. - On a non-GAAP basis, gross margin was 16.7%, operating margin was 5.2%, and net income was $12.7 million or $0.28 per diluted share, down from $22.9 million or $0.51 per diluted share in the previous quarter [3]. Outlook - For Q2 2025, the company expects revenue to be in the range of $475 million to $525 million, with GAAP diluted net loss per share projected between $(0.06) and $(0.26) and non-GAAP diluted net income per share expected to be between $0.17 and $0.37 [4]. Company Overview - Ultra Clean Holdings, Inc. specializes in developing and supplying critical subsystems and components primarily for the semiconductor industry, offering integrated outsourced solutions and ultra-high purity cleaning services [6].

Group 1 - The Rosen Law Firm is reminding purchasers of Ultra Clean Holdings, Inc. securities from May 6, 2024, to February 24, 2025, about the lead plaintiff deadline on May 23, 2025 [1] - Investors who purchased Ultra Clean securities during the specified period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2] - A class action lawsuit has already been filed, and those wishing to serve as lead plaintiff must act by May 23, 2025 [3] Group 2 - The lawsuit alleges that Ultra Clean misrepresented its market position and growth potential, failing to account for declining demand from a major customer and issues in the semiconductor industry [5] - The firm has a strong track record in securities class actions, having achieved significant settlements, including over $438 million for investors in 2019 [4]

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Ultra Clean Holdings, Inc. due to allegations of misleading statements regarding demand for its products in the Chinese market, which led to significant stock price declines following the company's earnings report [4][6][8]. Group 1: Legal Investigation - Faruqi & Faruqi is encouraging investors who suffered losses in Ultra Clean between May 6, 2024, and February 24, 2025, to discuss their legal options [1][4]. - A federal securities class action has been filed against Ultra Clean, with a deadline of May 23, 2025, for investors to seek the role of lead plaintiff [4][9]. - The firm has a history of recovering hundreds of millions of dollars for investors since its founding in 1995 [5]. Group 2: Allegations Against Ultra Clean - The complaint alleges that Ultra Clean and its executives violated federal securities laws by making false or misleading statements about the demand for its products in China during fiscal year 2024 [6]. - The company faced a customer ramp issue and inventory and demand corrections, which were not disclosed, leading to a misrepresentation of the true state of demand [6]. Group 3: Market Reaction - On February 24, 2025, Ultra Clean reported "demand softness" in China, which was attributed to extended qualification timelines and inventory absorption [7]. - Following this announcement, Ultra Clean's stock price plummeted from $36.06 per share to $25.90 per share, a decline of over 28% in one day [8].

Core Viewpoint - A class action securities lawsuit has been filed against Ultra Clean Holdings, Inc. due to alleged securities fraud that affected investors between May 6, 2024, and February 24, 2025 [1] Group 1: Lawsuit Details - The lawsuit claims that Ultra Clean misled investors about the demand for its products in the Chinese market, falsely reporting increased demand and revenue while concealing issues such as customer ramp problems and inventory corrections [2] - On February 24, 2025, Ultra Clean disclosed "demand softness" in China during its earnings call, leading to a significant stock price drop from $36.06 to $25.90, a decline of over 28% in one day [2] Group 2: Investor Information - Investors who suffered losses during the specified period have until May 23, 2025, to request to be appointed as lead plaintiff, although participation in any recovery does not require serving as a lead plaintiff [3] - Class members may be entitled to compensation without any out-of-pocket costs or fees [3] Group 3: Legal Firm Background - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions for shareholders over the past 20 years and consistently ranking among the top securities litigation firms in the U.S. [4]