Ultra Clean Reports Third Quarter Financial Results
Ultra Clean Technology Systems & Service, Inc.
150 Independence Dr.
Menlo Park, CA, 94025
Press release date: October 21, 2013
Company delivers strong gross margin performance and EPS at the high-end of guidance.
HAYWARD, Calif. — Ultra Clean Holdings, Inc. (Nasdaq: UCTT), a leading developer and supplier of critical systems and subsystems for the semiconductor capital equipment, flat panel, medical, energy and research industries, today reported its financial results for the third quarter ended September 27, 2013.
Revenue for the third quarter of 2013 was $107.2 million, a decrease of 2.7% compared to the second quarter of 2013 and an increase of 6.3% compared to the same period a year ago. Semiconductor revenue was 88.4% of total revenue and revenue outside the U.S. accounted for 33.1% of total revenue for the third quarter of 2013. Gross margin was 14.8%, compared to 14.6% for the previous quarter and 14.2% for the same period a year ago.
The Company recorded net income of $2.0 million, or $0.07 per share in the third quarter of 2013 compared to net income of $2.3 million, or $0.08 per share, in the previous quarter and a net loss of $1.1 million, or $(0.04) per share, for the same period a year ago. The net income for the third quarter of 2013 includes pre-tax charges of $1.5 million for amortization costs associated with the AIT transaction. Excluding these charges the Company would have reported earnings of $0.12 per share. The Company’s tax rate for the third quarter of 2013 was 15.5%.
Cash at the end of the third quarter of fiscal year 2013 was $65.9 million, a decrease of $5.4 million from the previous quarter. Outstanding debt was $56.5 million at the end of the third quarter of fiscal year 2013, a decrease of $11.9 million from the previous quarter.
Clarence Granger, Ultra Clean’s Chairman and Chief Executive Officer, stated: “Our net liquidity increased by nearly $6.5 million from the previous quarter as we continue to generate cash through operations and significantly reduce our bank debt. Our gross margins were the highest since the second quarter of 2007. Overall, I am pleased with the strength of our balance sheet, the progress we are making on gross margin, and our business outlook into the future.”
Commenting on Ultra Clean’s corporate guidance, Granger noted: “We expect revenue for the fourth quarter of 2013 to range between $120 million to $125 million, with earnings per share in the range of $0.14 to $0.18. Excluding amortization associated with the merger with AIT we expect earnings per share to be in the range of $0.18 to $0.22. We are forecasting a tax rate of 20% for the fourth quarter.”
Ultra Clean will conduct a conference call today, Monday, October 21, beginning at 1:45 p.m. PDT. The call-in number is (888) 561-5097 (domestic) and (706) 679-7569 (international). A replay of the conference will be available for fourteen days following the call at (855) 859-2056 (domestic) and (404) 537-3406 (international). The confirmation number for live broadcast and replay is 73327438 (all callers).
About Ultra Clean Holdings, Inc.
Ultra Clean Holdings, Inc. is a leading developer and supplier of critical systems and subsystems for the semiconductor capital equipment, flat panel, medical, energy and research industries. Ultra Clean offers its customers an integrated outsourced solution for gas delivery systems and other subassemblies, improved design-to-delivery cycle times, component neutral design and manufacturing and component testing capabilities. Ultra Clean’s customers are primarily original equipment manufacturers for the semiconductor capital equipment, flat panel, medical, energy and research industries. Ultra Clean is headquartered in Hayward, California. Additional information is available at www.uct.com.
Ultra Clean Holdings, Inc.
Casey Eichler, CFO