Ichor (ICHR) - 2025 Q1 - Quarterly Report

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]