Ichor (US:ICHR)2024-08-06 20:05Financial Performance - Revenue for Q2 2024 was $203.2 million, an increase from $201.4 million in Q1 2024 and $185.0 million in Q2 2023[2]. - Net loss for Q2 2024 was $5.1 million, improving from a net loss of $9.0 million in Q1 2024 and $20.7 million in Q2 2023[2][4]. - Non-GAAP net income was $1.8 million with a non-GAAP diluted EPS of $0.05, compared to a loss of $2.7 million and an EPS of $(0.09) in Q1 2024[5]. - Operating loss for the quarter was $(2.262) million, an improvement from $(3.741) million in the previous quarter[17]. - The company reported a net loss of $(5.112) million for the quarter, compared to a net loss of $(20.656) million in the same quarter last year, showing a significant reduction of 75.3%[17]. - Ichor Holdings reported a net loss of $5,112 thousand for the three months ended June 28, 2024, an improvement from a net loss of $8,989 thousand in the previous quarter[19]. - Ichor Holdings' diluted EPS for the three months ended June 28, 2024, was $(0.15), while the non-GAAP diluted EPS was $0.05[25]. Cash Flow and Liquidity - Free cash flow for Q2 2024 was $15 million, supported by net cash provided by operating activities of $17.5 million[1][7]. - Cash and cash equivalents at the end of Q2 2024 were $114.3 million, an increase of $12.2 million from the prior quarter[7]. - Cash at the end of the period was $114,349 thousand, an increase from $102,124 thousand at the end of the previous quarter[19]. - For the three months ended June 28, 2024, net cash provided by operating activities was $17,492 thousand, with capital expenditures of $2,847 thousand[28]. - For the six months ended June 28, 2024, net cash provided by operating activities was $22,296 thousand, with capital expenditures of $7,337 thousand[28]. Inventory and Assets - The company reported a decrease in inventories of $9.2 million and accounts receivable of $8.2 million during Q2 2024[7]. - Total current assets were $418.636 million, slightly down from $421.221 million in the previous quarter[14]. - Cash and cash equivalents increased to $114.349 million as of June 28, 2024, up from $79.955 million at the end of December 29, 2023[14]. - Total liabilities decreased to $252.813 million from $260.156 million in the previous quarter, reflecting a reduction of 2.6%[15]. - The company maintained goodwill at $335.402 million, unchanged from the previous reporting periods[14]. - Total shareholders' equity was $694.876 million, a slight decrease from $697.232 million in the previous quarter[14]. Margins and Profitability - Gross margin was 12.6% on a GAAP basis and 13.0% on a non-GAAP basis, compared to 11.4% and 13.9% respectively in the previous year[2][4]. - Gross profit for the quarter was $25.557 million, compared to $25.742 million in the previous year, indicating a slight decrease of 0.7%[17]. - U.S. GAAP gross profit for the three months ended June 28, 2024, was $25,557 thousand, representing a gross margin of 12.6%, up from 11.4% in the previous quarter[20]. - Non-GAAP gross profit for the same period was $26,434 thousand, with a non-GAAP gross margin of 13.0%[20]. - Ichor Holdings' U.S. GAAP operating loss for the three months ended June 28, 2024, was $(2,262) thousand, while the non-GAAP operating income was $4,495 thousand[22]. Future Outlook - The company expects Q3 2024 revenue to be in the range of $195 million to $210 million, with GAAP diluted EPS projected between $(0.17) and $(0.06)[6]. - The company is seeing signs of recovery in customer demand for wafer fab processing equipment, anticipating a stronger second half of 2024[1]. - New proprietary product introductions and customer qualifications are underway, contributing to positive momentum[1]. Research and Development - Research and development expenses for the quarter were $5.926 million, up from $5.188 million in the same quarter last year, indicating an increase of 14.2%[17]. Tax and Valuation - A valuation allowance of $11.1 million was recorded against U.S. federal and state deferred tax assets during the second quarter of 2023[26]. - The company recorded a tax expense on a GAAP and non-GAAP basis reflecting the valuation allowance from the first quarter of 2024 onward[26]. - The valuation allowance against U.S. deferred tax assets reflects an assessment of both positive and negative evidence[26]. - The company projected being in a three-year cumulative loss position in the U.S. by the end of 2023, impacting future taxable income assessments[26]. - The company incurred $0.5 million in severance costs related to global reduction-in-force programs for the three and six months ended June 28, 2024[26].