Ichor Holdings, Ltd. Announces Third Quarter 2024 Financial Results

Rhea-AI Summary

Ichor Holdings reported Q3 2024 financial results with revenues of $211 million, exceeding guidance. The company achieved a GAAP gross margin of 13.2% and non-GAAP gross margin of 13.6%. GAAP EPS was $(0.08) while non-GAAP EPS reached $0.12. This marks their sixth consecutive quarter of positive free cash flow. The company noted strengthening customer demand and increased visibility for H2 2024, projecting a healthier business environment for etch and deposition entering 2025. For Q4 2024, Ichor expects revenue between $220-235 million and non-GAAP diluted EPS of $0.21-$0.33.

Positive

• Revenue increased to $211.1M in Q3 2024, up from $203.2M in Q2 2024
• Non-GAAP net income improved to $4.0M from $1.8M in previous quarter
• Cash position strengthened to $116.4M, up $36.5M from year-end 2023
• Q4 2024 guidance projects revenue growth to $220-235M
• Gross margin showed sequential improvement from 12.6% to 13.2%

Negative

• GAAP net loss of $2.8M in Q3 2024
• Operating margin remains negative at -0.2% on GAAP basis
• Accounts receivable increased by $18.9M in Q3
• Inventory levels increased by $7.9M during the quarter

Insights

Financial Analyst

The Q3 2024 results show mixed performance with some positive trends emerging. Revenue of $211.1 million exceeded guidance and grew 3.9% sequentially and 7.3% YoY. While still posting a GAAP loss, the company improved its position with net loss narrowing to $2.8 million from $5.1 million in Q2. Non-GAAP EPS of $0.12 represents significant improvement.

The Q4 guidance of $220-235 million in revenue suggests continued growth momentum. Key positives include six consecutive quarters of positive free cash flow and improved gross margins. The balance sheet strengthened with $116.4 million in cash, up $36.5 million YTD, helped by a March equity offering. The semiconductor equipment market recovery appears to be taking hold, with management noting increased visibility into H2 2024 and 2025.

FREMONT, Calif.--(BUSINESS WIRE)-- Ichor Holdings, Ltd. (NASDAQ: ICHR), a leader in the design, engineering, and manufacturing of critical fluid delivery subsystems and components for semiconductor capital equipment, today announced third quarter 2024 financial results.

Third quarter 2024 highlights:

• Revenues of $211 million, above the guidance range communicated in August;
• Gross margin of 13.2% on a GAAP basis and 13.6% on a non‑GAAP basis;
• Earnings per share of $(0.08) on a GAAP basis and $0.12 on a non-GAAP basis; and
• Sixth consecutive quarter of positive free cash flow generation.

“We are pleased to report third-quarter financial results favorable to our outlook entering Q3,” commented Jeff Andreson, chief executive officer. “As we’ve progressed through the challenging business environment affecting demand for semiconductor process equipment for nearly two years, over the last few months we’ve witnessed steady strengthening in customer demand, with increased visibility for a stronger second half 2024 and a much healthier business environment for etch and deposition as we turn the corner into 2025. We are also making meaningful progress in our strategies to increase the proprietary content of our product portfolio, with continued new design wins and qualifications during the third quarter. Between the sequential increases in revenue volumes and gradual strengthening in proprietary content, we delivered incremental gross margin performance exceeding our 25% target in the third quarter, and expect to do so again in the fourth quarter. As we look ahead to 2025, the strengthening demand environment for etch and deposition process equipment lends optimism for continued momentum driving our top-line results, and we expect continued execution of our gross margin expansion strategies will result in strong earnings leverage and cash flow dynamics as we deliver on our objective to outperform WFE (wafer fab equipment) in the coming year.”

		Q3 2024				Q2 2024				Q3 2023
		(dollars in thousands, except per share amounts)
U.S. GAAP Financial Results:
Net sales		$	211,139			$	203,227			$	196,761
Gross margin			13.2	%			12.6	%			12.2	%
Operating margin			(0.2	)%			(1.1	)%			(2.5	)%
Net loss		$	(2,776	)		$	(5,112	)		$	(10,425	)
Diluted EPS		$	(0.08	)		$	(0.15	)		$	(0.36	)

		Q3 2024				Q2 2024				Q3 2023
		(dollars in thousands, except per share amounts)
Non-GAAP Financial Results:
Gross margin			13.6	%			13.0	%			13.1	%
Operating margin			3.0	%			2.2	%			2.2	%
Net income (loss)		$	4,020			$	1,819			$	2,097
Diluted EPS		$	0.12			$	0.05			$	0.07

U.S. GAAP Financial Results Overview

For the third quarter of 2024, revenue was $211.1 million, net loss was $2.8 million, and net loss per diluted share (“diluted EPS”) was $(0.08). This compares to revenue of $203.2 million and $196.8 million, net loss of $5.1 million and $10.4 million, and diluted EPS of $(0.15) and $(0.36), for the second quarter of 2024 and third quarter of 2023, respectively.

Non-GAAP Financial Results Overview

For the third quarter of 2024, non-GAAP net income was $4.0 million and non-GAAP diluted EPS was $0.12. This compares to non-GAAP net income of $1.8 million and $2.1 million, and non-GAAP diluted EPS of $0.05 and $0.07, for the second quarter of 2024 and third quarter of 2023, respectively.

Fourth Quarter 2024 Financial Outlook

For the fourth quarter of 2024, we expect revenue to be in the range of $220 million to $235 million. We expect GAAP diluted EPS to be in the range of $0.01 to $0.13 and non-GAAP diluted EPS to be in the range of $0.21 to $0.33.

This outlook for non‑GAAP diluted EPS excludes amortization of intangible assets of approximately $2.2 million and share-based compensation expense of approximately $4.7 million, as well as the related income tax effects. Non-GAAP diluted EPS should be considered in addition to, but not as a substitute for, our financial information presented in accordance with GAAP.

Balance Sheet and Cash Flow Results

We ended the third quarter of 2024 with cash and cash equivalents of $116.4 million, an increase of $2.1 million from the prior quarter and an increase of $36.5 million from the prior year ended December 29, 2023.

The increase of $2.1 million in the third quarter of 2024 was primarily due to net cash provided by operating activities of $8.6 million, partially offset by capital expenditures of $6.4 million. The increase of $36.5 million during the nine months ended September 27, 2024 was primarily due to net proceeds of $136.7 million from our issuance of 3.8 million ordinary shares in March 2024 in connection with an underwritten public offering and net cash provided by operating activities of $30.4 million, partially offset by net payments on credit facilities of $118.8 million and capital expenditures of $13.2 million.

Our cash provided by operating activities of $8.6 million for the third quarter of 2024 consisted of net non-cash charges of $12.1 million, consisting primarily of depreciation and amortization of $7.6 million and share-based compensation expense of $4.7 million, partially offset by net loss of $2.8 million. Our cash provided by operating activities of $30.4 million for the nine months ended September 27, 2024 consisted of net non-cash charges of $33.9 million, consisting primarily of depreciation and amortization of $22.8 million and share-based compensation expense of $11.0 million, and a decrease in our net operating assets and liabilities of $13.4 million, partially offset by net loss of $16.9 million.

The increase in our net operating assets and liabilities of $0.8 million during the third quarter of 2024 was primarily due to an increase in accounts receivable of $18.9 million and an increase in inventories of $7.9 million, partially offset by an increase in accounts payable of $22.9 million. The decrease in our net operating assets and liabilities of $13.4 million during the nine months ended September 27, 2024 was primarily due to an increase in accounts payable of $22.7 million and a decrease in inventories of $6.5 million, partially offset by an increase in accounts receivable of $17.4 million.

Use of Non-GAAP Financial Results

In addition to U.S. GAAP ("GAAP") results, this press release also contains non-GAAP financial results, including non‑GAAP gross profit, non‑GAAP operating income, non‑GAAP net income (loss), non‑GAAP diluted EPS, and free cash flow. Management uses non-GAAP metrics to evaluate our operating and financial results. We believe the presentation of non-GAAP results is useful to investors for analyzing business trends and comparing performance to prior periods, along with enhancing investors’ ability to view our results from management’s perspective. Non-GAAP gross profit, operating income, and net income are defined as: gross profit, operating income (loss), or net income (loss), respectively, excluding (1) amortization of intangible assets, share-based compensation expense, and discrete or infrequent charges and gains that are outside of normal business operations, including transaction-related costs, contract and legal settlement gains and losses, facility shutdown costs, and severance costs associated with reduction-in-force programs, to the extent they are present in gross profit, operating income (loss), and net income (loss), respectively; and (2) the tax impacts associated with these non-GAAP adjustments, as well as non-recurring discrete tax items, including the impact of deferred tax asset valuation allowances. All non-GAAP adjustments are presented on a gross basis; the related income tax effects, including current and deferred income tax expense, are included in the adjustment line under the heading "Tax adjustments related to non-GAAP adjustments." Non-GAAP diluted EPS is defined as non-GAAP net income divided by weighted average diluted ordinary shares outstanding during the period. Non-GAAP gross margin and non-GAAP operating margin are defined as non-GAAP gross profit and non-GAAP operating income, respectively, divided by net sales. Free cash flow is defined as cash provided by or used in operating activities, less capital expenditures. Tables showing these metrics on a GAAP and non-GAAP basis, with reconciliation footnotes thereto, are included at the end of this press release.

Non-GAAP results have limitations as an analytical tool, and you should not consider them in isolation or as a substitute for our results reported under GAAP. Other companies may calculate non-GAAP results differently or may use other measures to evaluate their performance, both of which could reduce the usefulness of our non-GAAP results as a tool for comparison.

Because of these limitations, you should consider non-GAAP results alongside other financial performance measures and results presented in accordance with GAAP. In addition, in evaluating non-GAAP results, you should be aware that in the future we will incur expenses such as those that are the subject of adjustments in deriving non-GAAP results, and you should not infer from our presentation of non-GAAP results that our future results will not be affected by these expenses or other discrete or infrequent charges and gains that are outside of normal business operations.

Conference Call

We will conduct a conference call to discuss our third quarter 2024 results and business outlook today at 1:30 p.m. PT.

To listen to a live webcast of the call, please visit our investor relations website at https://ir.ichorsystems.com, or go to the live link at https://www.webcast-eqs.com/register/ichor110424/en.

To listen via telephone, please call (877) 407‑0989 (domestic) or +1 (201) 389‑0921 (international), conference ID: 13748960. After the call, an on-demand replay will be available at the same webcast link.

About Ichor

We are a leader in the design, engineering and manufacturing of critical fluid delivery subsystems and components primarily for semiconductor capital equipment, as well as other industries such as defense/aerospace and medical. Our primary product offerings include gas and chemical delivery subsystems, collectively known as fluid delivery subsystems, which are key elements of the process tools used in the manufacturing of semiconductor devices. Our gas delivery subsystems deliver, monitor and control precise quantities of the specialized gases used in semiconductor manufacturing processes such as etch and deposition. Our chemical delivery subsystems precisely blend and dispense the reactive liquid chemistries used in semiconductor manufacturing processes such as chemical-mechanical planarization, electroplating, and cleaning. We also provide precision-machined components, weldments, e-beam and laser welded components, precision vacuum and hydrogen brazing, surface treatment technologies, and other proprietary products. We are headquartered in Fremont, CA. https://ir.ichorsystems.com.

We use a 52- or 53-week fiscal year ending on the last Friday in December. Our fiscal years ended December 27, 2024 and December 29, 2023 are each 52 weeks. References to 2024 and 2023 relate to the fiscal years then ended. The three-month periods ended September 27, 2024, June 28, 2024, and September 29, 2023 were each 13 weeks. References to the third quarter of 2024, second quarter of 2024, and third quarter of 2023 relate to the three-month periods then ended.

Safe Harbor Statement

Certain statements in this release are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “anticipate,” “believe,” “contemplate,” “designed,” “estimate,” “expect,” “forecast,” “goal,” “guidance,” “intend,” “may,” “outlook,” “plan,” “predict,” “project,” “see,” “seek,” “target,” “would” and similar expressions or variations or negatives of these words are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Examples of forward-looking statements include, but are not limited to, statements regarding our outlook for our fourth fiscal quarter of 2024, statements regarding the current business environment, revenue levels in 2024 and beyond, manufacturers’ investment in water fabrication equipment, our investment in research and development of new products, acquiring new business, and company and industry growth and performance in 2024 and beyond, as well as any other statement that does not directly relate to any historical fact. Such forward-looking statements are based on management’s current expectations about future events as of the date hereof and involve many risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. Our actual results and outcomes could differ materially from those included in these forward-looking statements as a result of various factors, including, but not limited to: geopolitical, economic and market conditions, including high inflation, changes to fiscal and monetary policy, high interest rates, currency fluctuations, challenges in the supply chain and any disruptions in the global economy as a result of the conflicts in Ukraine and the Middle East; dependence on expenditures by manufacturers and cyclical downturns in the semiconductor capital equipment industry; reliance on a very small number of original equipment manufacturers ("OEMs") for a significant portion of sales; negotiating leverage held by our customers; competitiveness and rapid evolution of the industries in which we participate; keeping pace with developments in the industries we serve and with technological innovation generally; designing, developing and introducing new products that are accepted by original equipment manufacturers in order to retain our existing customers and obtain new customers; managing our manufacturing and procurement process effectively; defects in our products that could damage our reputation, decrease market acceptance and result in potentially costly litigation; and our dependence on a limited number of suppliers. Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission (the “SEC”), including other risks, relevant factors, and uncertainties identified in the "Risk Factors" section of our Annual Report on Form 10‑K for the year ended December 29, 2023 and any other periodic reports that we may file with the SEC.

All forward-looking statements in this press release are based upon information available to us as of the date hereof, and qualified in their entirety by this cautionary statement. We undertake no obligation to update or revise any forward-looking statements contained herein, whether as a result of actual results, changes in our expectations, future events or developments, or otherwise, except as required by law.

ICHOR HOLDINGS, LTD.
Consolidated Balance Sheets
(in thousands, except share and per share amounts)
(unaudited)
	September 27, 2024				June 28, 2024				December 29, 2023				September 29, 2023
Assets
Current assets:
Cash and cash equivalents	$	116,447			$	114,349			$	79,955			$	75,933
Accounts receivable, net		84,150				65,216				66,721				103,350
Inventories		239,359				231,475				245,885				266,900
Prepaid expenses and other current assets		7,105				7,596				8,804				5,142
Total current assets		447,061				418,636				401,365				451,325
Property and equipment, net		89,283				89,142				92,755				96,240
Operating lease right-of-use assets		35,136				34,623				36,611				36,948
Other noncurrent assets		14,675				13,727				11,912				12,079
Deferred tax assets, net		3,366				3,103				3,148				1,934
Intangible assets, net		50,979				53,056				57,288				60,456
Goodwill		335,402				335,402				335,402				335,402
Total assets	$	975,902			$	947,689			$	938,481			$	994,384
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	80,963			$	58,961			$	60,490			$	74,011
Accrued liabilities		17,338				15,122				14,871				16,176
Other current liabilities		6,899				6,812				6,638				8,588
Current portion of long-term debt		7,500				7,500				7,500				7,500
Current portion of lease liabilities		10,239				9,721				9,463				9,393
Total current liabilities		122,939				98,116				98,962				115,668
Long-term debt, less current portion, net		122,782				122,665				241,183				272,942
Lease liabilities, less current portion		26,090				26,025				28,187				28,556
Deferred tax liabilities, net		1,169				1,169				1,169				29
Other non-current liabilities		5,647				4,838				4,303				4,510
Total liabilities		278,627				252,813				373,804				421,705
Shareholders’ equity:
Preferred shares ($0.0001 par value; 20,000,000 shares authorized; zero shares issued and outstanding)		—				—				—				—
Ordinary shares ($0.0001 par value; 200,000,000 shares authorized; 33,724,917, 33,629,331, 29,435,398, and 29,375,388 shares outstanding, respectively; 38,162,356, 38,066,770, 33,872,837, and 33,812,827 shares issued, respectively)		3				3				3				3
Additional paid in capital		601,056				595,881				451,581				447,684
Treasury shares at cost (4,437,439 shares)		(91,578	)			(91,578	)			(91,578	)			(91,578	)
Retained earnings		187,794				190,570				204,671				216,570
Total shareholders’ equity		697,275				694,876				564,677				572,679
Total liabilities and shareholders’ equity	$	975,902			$	947,689			$	938,481			$	994,384

ICHOR HOLDINGS, LTD.
Consolidated Statement of Operations
(in thousands, except share and per share amounts)
(unaudited)
	Three Months Ended												Nine Months Ended
	September 27, 2024				June 28, 2024				September 29, 2023				September 27, 2024				September 29, 2023
Net sales	$	211,139			$	203,227			$	196,761			$	615,749			$	607,639
Cost of sales		183,348				177,670				172,692				539,407				524,588
Gross profit		27,791				25,557				24,069				76,342				83,051
Operating expenses:
Research and development		5,872				5,926				5,188				17,168				14,689
Selling, general, and administrative		20,227				19,807				20,066				59,253				59,733
Amortization of intangible assets		2,077				2,086				3,639				6,309				11,565
Total operating expenses		28,176				27,819				28,893				82,730				85,987
Operating loss		(385	)			(2,262	)			(4,824	)			(6,388	)			(2,936	)
Interest expense, net		1,638				1,858				5,136				7,592				14,716
Other expense, net		587				50				29				876				913
Loss before income taxes		(2,610	)			(4,170	)			(9,989	)			(14,856	)			(18,565	)
Income tax expense		166				942				436				2,021				12,521
Net loss	$	(2,776	)		$	(5,112	)		$	(10,425	)		$	(16,877	)		$	(31,086	)
Net loss per share:
Basic	$	(0.08	)		$	(0.15	)		$	(0.36	)		$	(0.52	)		$	(1.07	)
Diluted	$	(0.08	)		$	(0.15	)		$	(0.36	)		$	(0.52	)		$	(1.07	)
Shares used to compute Net loss per share:
Basic		33,700,246				33,548,071				29,297,347				32,419,762				29,132,879
Diluted		33,700,246				33,548,071				29,297,347				32,419,762				29,132,879

ICHOR HOLDINGS, LTD.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
	Three Months Ended												Nine Months Ended
	September 27, 2024				June 28, 2024				September 29, 2023				September 27, 2024				September 29, 2023
Cash flows from operating activities:
Net loss	$	(2,776	)		$	(5,112	)		$	(10,425	)		$	(16,877	)		$	(31,086	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		7,608				7,604				8,891				22,768				26,036
Share-based compensation		4,672				3,938				4,752				10,985				12,666
Deferred income taxes		(263	)			(95	)			(661	)			(218	)			9,388
Amortization of debt issuance costs		117				116				116				349				349
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net		(18,934	)			8,155				(7,590	)			(17,429	)			32,971
Inventories		(7,884	)			9,204				(710	)			6,526				16,760
Prepaid expenses and other assets		1,182				143				2,624				3,060				8,610
Accounts payable		22,890				(3,549	)			10,291				22,746				(34,756	)
Accrued liabilities		2,792				(967	)			(1,145	)			2,845				(7,106	)
Other liabilities		(813	)			(2,464	)			(2,155	)			(4,387	)			(13,774	)
Net cash provided by operating activities		8,591				16,973				3,988				30,368				20,058
Cash flows from investing activities:
Capital expenditures		(6,420	)			(2,328	)			(2,405	)			(13,238	)			(13,239	)
Net cash used in investing activities		(6,420	)			(2,328	)			(2,405	)			(13,238	)			(13,239	)
Cash flows from financing activities:
Issuance of ordinary shares, net of fees		—				—				—				136,738				—
Issuance of ordinary shares under share-based compensation plans		880				1,384				2,170				5,599				6,151
Employees' taxes paid upon vesting of restricted share units		(953	)			(1,929	)			(553	)			(4,225	)			(2,882	)
Repayments on revolving credit facility		—				—				(10,000	)			(115,000	)			(15,000	)
Repayments on term loan		—				(1,875	)			(1,875	)			(3,750	)			(5,625	)
Net cash provided by (used in) financing activities		(73	)			(2,420	)			(10,258	)			19,362				(17,356	)
Net increase (decrease) in cash		2,098				12,225				(8,675	)			36,492				(10,537	)
Cash at beginning of period		114,349				102,124				84,608				79,955				86,470
Cash at end of period	$	116,447			$	114,349			$	75,933			$	116,447			$	75,933
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	$	1,665			$	2,703			$	5,281			$	9,201			$	15,132
Cash paid during the period for taxes, net of refunds	$	352			$	750			$	512			$	1,804			$	3,852
Supplemental disclosures of non-cash activities:
Capital expenditures included in accounts payable	$	569			$	1,458			$	145			$	569			$	145
Right-of-use assets obtained in exchange for new operating lease liabilities	$	2,292			$	(431	)		$	—			$	4,671			$	3,103

ICHOR HOLDINGS, LTD.
Reconciliation of U.S. GAAP Gross Profit to Non-GAAP Gross Profit
(dollars in thousands)
(unaudited)
	Three Months Ended												Nine Months Ended
	September 27, 2024				June 28, 2024				September 29, 2023				September 27, 2024				September 29, 2023
U.S. GAAP gross profit	$	27,791			$	25,557			$	24,069			$	76,342			$	83,051
Non-GAAP adjustments:
Share-based compensation		955				717				840				2,448				2,352
Other (1)		—				160				774				908				2,061
Non-GAAP gross profit	$	28,746			$	26,434			$	25,683			$	79,698			$	87,464
U.S. GAAP gross margin		13.2	%			12.6	%			12.2	%			12.4	%			13.7	%
Non-GAAP gross margin		13.6	%			13.0	%			13.1	%			12.9	%			14.4	%

(1)

Represents severance costs associated with our global reduction-in-force programs.

ICHOR HOLDINGS, LTD.
Reconciliation of U.S. GAAP Operating Loss to Non-GAAP Operating Income
(dollars in thousands)
(unaudited)
	Three Months Ended												Nine Months Ended
	September 27, 2024				June 28, 2024				September 29, 2023				September 27, 2024				September 29, 2023
U.S. GAAP operating loss	$	(385	)		$	(2,262	)		$	(4,824	)		$	(6,388	)		$	(2,936	)
Non-GAAP adjustments:
Amortization of intangible assets		2,077				2,086				3,639				6,309				11,565
Share-based compensation		4,672				3,938				4,752				10,985				12,666
Transaction-related costs (1)		—				—				—				785				—
Other (2)		—				733				793				1,600				2,117
Non-GAAP operating income	$	6,364			$	4,495			$	4,360			$	13,291			$	23,412
U.S. GAAP operating margin		(0.2	)%			(1.1	)%			(2.5	)%			(1.0	)%			(0.5	)%
Non-GAAP operating margin		3.0	%			2.2	%			2.2	%			2.2	%			3.9	%

(1)		Represents transaction-related costs incurred in connection with our acquisitions pipeline.
(2)		Represents severance costs associated with our global reduction-in-force programs. Additionally, for the second quarter of 2024 and the nine months ended September 27, 2024, this amount includes $0.5 million of costs incurred in connection with exiting and consolidating one of our U.S.-based manufacturing facilities.

ICHOR HOLDINGS, LTD.
Reconciliation of U.S. GAAP Net Loss to Non-GAAP Net Income
(in thousands, except share and per share amounts)
(unaudited)
	Three Months Ended												Nine Months Ended
	September 27, 2024				June 28, 2024				September 29, 2023				September 27, 2024				September 29, 2023
U.S. GAAP net loss	$	(2,776	)		$	(5,112	)		$	(10,425	)		$	(16,877	)		$	(31,086	)
Non-GAAP adjustments:
Amortization of intangible assets		2,077				2,086				3,639				6,309				11,565
Share-based compensation		4,672				3,938				4,752				10,985				12,666
Transaction-related costs (1)		—				—				—				785				—
Other (2)		—				733				793				1,600				2,117
Tax adjustments related to non-GAAP adjustments (3)		47				174				3,338				325				7,576
Tax expense from valuation allowance (4)		—				—				—				—				11,094
Non-GAAP net income	$	4,020			$	1,819			$	2,097			$	3,127			$	13,932
U.S. GAAP diluted EPS	$	(0.08	)		$	(0.15	)		$	(0.36	)		$	(0.52	)		$	(1.07	)
Non-GAAP diluted EPS	$	0.12			$	0.05			$	0.07			$	0.10			$	0.47
Shares used to compute non-GAAP diluted EPS		33,986,269				34,043,870				29,733,904				32,851,091				29,507,060

(1)		Represents transaction-related costs incurred in connection with our acquisitions pipeline.
(2)		Represents severance costs associated with our global reduction-in-force programs. Additionally, for the second quarter of 2024 and the nine months ended September 27, 2024, this amount includes $0.5 million of costs incurred in connection with exiting and consolidating one of our U.S.-based manufacturing facilities.
(3)		Adjusts GAAP income tax expense for the impact of our non-GAAP adjustments, which are presented on a gross basis. During the second quarter of 2023, we recorded a valuation allowance against our U.S. federal and state deferred tax assets on a GAAP basis. In the first quarter of 2024, we determined that the valuation allowance should be recognized against our U.S. federal and state deferred tax assets on a non-GAAP basis as we were not in a three-year cumulative U.S. income position on a non-GAAP basis. Accordingly, from the first quarter of 2024 and forward, tax expense on a GAAP and non-GAAP basis reflects a valuation allowance against our U.S. federal and state deferred tax assets.
(4)		During the second quarter of 2023, we recorded a valuation allowance of $11.1 million against our U.S. federal and state deferred tax assets. The valuation allowance was recorded based on an assessment of available positive and negative evidence, including an estimate of being in a three-year cumulative loss position in the U.S. by the end of 2023, projections of future taxable income, and other quantitative and qualitative information.

ICHOR HOLDINGS, LTD.
Reconciliation of U.S. GAAP Net Cash Provided by Operating Activities to Free Cash Flow
(in thousands)
(unaudited)
	Three Months Ended												Nine Months Ended
	September 27, 2024				June 28, 2024				September 29, 2023				September 27, 2024				September 29, 2023
Net cash provided by operating activities	$	8,591			$	16,973			$	3,988			$	30,368			$	20,058
Capital expenditures		(6,420	)			(2,328	)			(2,405	)			(13,238	)			(13,239	)
Free cash flow	$	2,171			$	14,645			$	1,583			$	17,130			$	6,819

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241104137003/en/

Greg Swyt, CFO 510-897-5200

Claire McAdams, IR & Strategic Initiatives 530-265-9899

ir@ichorsystems.com

Source: Ichor Holdings, Ltd.

FAQ

What was Ichor Holdings (ICHR) revenue in Q3 2024?

Ichor Holdings reported revenue of $211.1 million in Q3 2024, exceeding their guidance range.

What is ICHR's earnings guidance for Q4 2024?

Ichor expects Q4 2024 revenue between $220-235 million and non-GAAP diluted EPS between $0.21-$0.33.

What was Ichor's (ICHR) cash position at the end of Q3 2024?

Ichor ended Q3 2024 with $116.4 million in cash and cash equivalents, an increase of $2.1 million from the previous quarter.

What was ICHR's GAAP EPS for Q3 2024?

Ichor reported GAAP EPS of $(0.08) for Q3 2024.