ACM Research(US:ACMR)2023-11-07 16:00Financial Performance - Revenue for the three months ended September 30, 2023, was $168,569 million, a 26% increase from $133,709 million in the same period of 2022[18]. - Gross profit for the nine months ended September 30, 2023, reached $197,139 million, up from $129,810 million, reflecting a 52% increase year-over-year[18]. - Net income attributable to ACM Research, Inc. for the three months ended September 30, 2023, was $25,679 million, up from $21,004 million in the same period of 2022, representing a 22% increase[18]. - Net income for the nine months ended September 30, 2023, was $73,554 thousand, compared to $36,381 thousand for the same period in 2022, representing a 102% increase[26]. - Basic net income attributable to ACM Research, Inc. per share for the three months ended September 30, 2023, was $0.43, compared to $0.35 in the same period of 2022[18]. - For the three months ended September 30, 2023, net income was $30,994,000, an increase of 14.1% compared to $27,076,000 for the same period in 2022[93]. - For the nine months ended September 30, 2023, total revenue reached $387,402,000, compared to $280,290,000 for the same period in 2022, indicating a growth of 38.2%[102]. Assets and Liabilities - Total current assets increased to $1,115,894 thousand as of September 30, 2023, compared to $963,806 thousand at December 31, 2022, representing a growth of approximately 15.8%[15]. - Total liabilities grew to $532,118 thousand from $423,329 thousand, an increase of approximately 25.7%[15]. - Stockholders' equity increased to $729,050 thousand from $674,856 thousand, representing a growth of about 8%[15]. - Total equity as of September 30, 2023, was $878,130 thousand, up from $774,098 thousand as of June 30, 2023, indicating a growth of approximately 13.4%[23]. - Property, plant, and equipment net value rose to $190.9 million as of September 30, 2023, from $82.9 million as of December 31, 2022[119]. - Long-term borrowings rose to $39,753 thousand from $18,687 thousand, an increase of approximately 112.5%[15]. Cash Flow and Investments - Cash flow used in operating activities for the nine months ended September 30, 2023, was $(42,117) thousand, an improvement from $(61,397) thousand in the same period of 2022[26]. - Cash, cash equivalents, and restricted cash at the end of the period were $207,661 thousand, down from $336,642 thousand at the end of the previous period[27]. - The company reported a net decrease in cash of $(40,790) thousand for the nine months ended September 30, 2023, compared to $(226,425) thousand for the same period in 2022[27]. - The company has significant time deposits totaling $118,834 as of September 30, 2023, down from $172,448 on December 31, 2022, a decrease of 31.1%[80]. - The company incurred a total of $7,952 in purchases from related party Ninebell for the three months ended September 30, 2023, down from $12,132 in the same period of 2022, representing a decrease of 34.9%[164]. Operating Expenses - Operating expenses for the three months ended September 30, 2023, totaled $55,341 million, compared to $34,331 million in the same period of 2022, marking a 61% increase[18]. - The total operating expenses for the nine months ended September 30, 2023, were $124,674 million, compared to $87,445 million in the same period of 2022, reflecting a 43% increase[18]. - Research and development expenses for the three months ended September 30, 2023, were $26,151 million, a significant increase from $15,678 million in the same period of 2022, reflecting a 67% rise[18]. Regulatory and Market Risks - The company is facing regulatory risks due to new export controls from Japan and the Netherlands, which may adversely impact shipments and sales in mainland China[59]. - ACM Shanghai's customers and operations are primarily based in mainland China, which poses risks due to recent U.S. export restrictions affecting semiconductor manufacturing[53]. - The U.S. government enacted new rules in October 2022 and revised them in October 2023, impacting ACM's ability to support customers in mainland China[53]. Stock and Equity - ACM issued 623,244 shares of Class A common stock during the three months ended September 30, 2023, compared to 231,710 shares issued in the same period of 2022, reflecting a 169.5% increase[166]. - The number of shares of Class A common stock issued and outstanding increased to 55,574,734 as of September 30, 2023, from 54,655,286 as of December 31, 2022[166]. - The total stock-based compensation expense for the nine months ended September 30, 2023, was $14,666 thousand, compared to $5,236 thousand for the same period in 2022, representing an increase of 180%[187]. Taxation - The company recorded an income tax expense of $11,235 thousand for the nine months ended September 30, 2023, down from $14,138 thousand in the same period of 2022[193]. - The effective income tax rate for ACM differs from statutory rates due to valuation allowances and permanent differences, impacting the overall tax expense recorded[193]. - The Company has total unrecognized tax benefits of $8,448, with a potential net impact of $6,178 on the effective tax rate if recognized[195].