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Ultra Clean Reports Third Quarter 2024 Financial Results

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Ultra Clean Holdings (UCTT) reported Q3 2024 financial results with total revenue of $540.4 million, comprising $479.0 million from Products and $61.4 million from Services. The company posted a GAAP net loss of $(2.3) million or $(0.05) per diluted share, with gross margin at 17.3%. On a non-GAAP basis, net income was $15.9 million or $0.35 per diluted share. Looking ahead, UCTT expects Q4 2024 revenue between $535-585 million with non-GAAP diluted EPS of $0.34-$0.54. The company's performance was driven by increased equipment demand for AI infrastructure and sustained China market spending.

Ultra Clean Holdings (UCTT) ha riportato risultati finanziari per il Q3 2024 con un fatturato totale di $540,4 milioni, di cui $479,0 milioni derivanti dai Prodotti e $61,4 milioni dai Servizi. L'azienda ha registrato una perdita netta GAAP di $(2,3) milioni, ovvero $(0,05) per azione diluita, con un margine lordo del 17,3%. Su base non-GAAP, il reddito netto è stato di $15,9 milioni, o $0,35 per azione diluita. Guardando avanti, UCTT prevede un fatturato per il Q4 2024 compreso tra $535-585 milioni, con un EPS diluito non-GAAP di $0,34-$0,54. Le performance dell'azienda sono state sostenute da un aumento della domanda di attrezzature per le infrastrutture AI e da una spesa sostenuta nel mercato cinese.

Ultra Clean Holdings (UCTT) informó los resultados financieros del Q3 2024, con unos ingresos totales de $540.4 millones, de los cuales $479.0 millones provinieron de Productos y $61.4 millones de Servicios. La compañía reportó una pérdida neta GAAP de $(2.3) millones o $(0.05) por acción diluida, con un margen bruto del 17.3%. En base no-GAAP, el ingreso neto fue de $15.9 millones o $0.35 por acción diluida. Mirando hacia adelante, UCTT espera ingresos para el Q4 2024 entre $535-585 millones, con un EPS diluido no-GAAP de $0.34-$0.54. El rendimiento de la empresa fue impulsado por un aumento en la demanda de equipos para infraestructura de IA y un gasto sostenido en el mercado chino.

Ultra Clean Holdings (UCTT)는 2024년 3분기 재무 결과를 발표하며, 총 매출이 $540.4 백만에 달하며, 그 중 $479.0 백만이 제품에서, $61.4 백만이 서비스에서 발생했습니다. 회사는 GAAP 기준으로 순손실이 $(2.3) 백만 또는 희석 주당 $(0.05)로, 총매출이 17.3%인 상태입니다. 비-GAAP 기준으로 순이익은 $15.9 백만 또는 희석 주당 $0.35였습니다. 앞으로 UCTT는 2024년 4분기 매출이 $535-585 백만에 이를 것으로 예상하며, 비-GAAP 희석 EPS는 $0.34-$0.54로 예상하고 있습니다. 회사의 성과는 AI 인프라를 위한 장비 수요 증가와 중국 시장의 지속적인 지출에 의해 추진되었습니다.

Ultra Clean Holdings (UCTT) a publié les résultats financiers du T3 2024, avec un chiffre d'affaires total de $540,4 millions, comprenant $479,0 millions provenant des Produits et $61,4 millions des Services. L'entreprise a affiché une perte nette GAAP de $(2,3) millions ou $(0,05) par action diluée, avec une marge brute de 17,3 %. Sur une base non-GAAP, le résultat net s'élevait à $15,9 millions ou $0,35 par action diluée. En regardant vers l'avenir, UCTT s'attend à un chiffre d'affaires pour le T4 2024 compris entre $535-585 millions, avec un BPA dilué non-GAAP de $0,34-$0,54. La performance de l'entreprise a été soutenue par une demande accrue d'équipements pour les infrastructures d'IA et des dépenses soutenues sur le marché chinois.

Ultra Clean Holdings (UCTT) veröffentlichte die finanziellen Ergebnisse für das 3. Quartal 2024 mit einem Gesamtumsatz von $540,4 Millionen, der sich aus $479,0 Millionen aus Produkten und $61,4 Millionen aus Dienstleistungen zusammensetzt. Das Unternehmen wies einen GAAP-Reinverlust von $(2,3) Millionen oder $(0,05) pro verwässerter Aktie aus, mit einer Bruttomarge von 17,3%. Auf Non-GAAP-Basis betrug der Nettogewinn $15,9 Millionen oder $0,35 pro verwässerter Aktie. Für das 4. Quartal 2024 rechnet UCTT mit einem Umsatz zwischen $535-585 Millionen und einem Non-GAAP verwässerten EPS von $0,34-$0,54. Die Leistung des Unternehmens wurde durch die gestiegene Nachfrage nach Geräten für KI-Infrastruktur und anhaltende Ausgaben auf dem chinesischen Markt vorangetrieben.

Positive
  • Revenue increased to $540.4M from $516.1M in previous quarter
  • Non-GAAP net income improved to $15.9M from $14.4M quarter-over-quarter
  • Non-GAAP EPS increased to $0.35 from $0.32 in prior quarter
  • Strong demand driven by AI infrastructure build-out
  • Sustained spending in China market
Negative
  • GAAP net loss of $2.3M compared to net income of $19.1M in previous quarter
  • GAAP EPS declined to -$0.05 from $0.42 in prior quarter

Insights

UCTT's Q3 results showcase notable improvements with revenue reaching $540.4M, up 4.7% sequentially from $516.1M. The company's focus on AI infrastructure and China market spending has yielded positive results. Key metrics show incremental progress with non-GAAP operating margin expanding to 7.3% from 6.9%.

The Q4 guidance range of $535M to $585M suggests continued stability. The transition to profitability is evident in the GAAP EPS guidance of $0.06 to $0.26, a significant improvement from Q3's $(0.05) loss per share. The services segment, contributing $61.4M, provides a stable revenue stream alongside the core products business.

The emphasis on AI infrastructure build-out signals UCTT's strategic alignment with high-growth semiconductor market segments. Their vertical integration capabilities and distributed manufacturing network position them well to capture increased market share as WFE (Wafer Fabrication Equipment) demand expands. The sustained spending in China's domestic market, despite global tensions, demonstrates the company's resilient business model and diverse geographic exposure.

HAYWARD, Calif., Oct. 28, 2024 /PRNewswire/ -- Ultra Clean Holdings, Inc. (Nasdaq: UCTT), today reported its financial results for the third quarter ended September 27, 2024.

"UCT's third quarter results came in above expectations driven by broader equipment demand for AI infrastructure build out and sustained domestic China market spending," said Jim Scholhamer, CEO. "The rationale for significant long-term investment in WFE remains strong. UCT's vertical integration capabilities and strategic manufacturing network provide a competitive edge, and should enable us to increase share as demand expands."

Third Quarter 2024 GAAP Financial Results
Total revenue was $540.4 million. Products contributed $479.0 million and Services added $61.4 million. Total gross margin was 17.3%, operating margin was 4.7%, and net loss was $(2.3) million or $(0.05) per diluted share. This compares to total revenue of $516.1 million, gross margin of 17.1%, operating margin of 4.4%, and net income of $19.1 million or $0.42 per diluted share, in the prior quarter.

Third Quarter 2024 Non-GAAP Financial Results
On a non-GAAP basis, gross margin was 17.8%, operating margin was 7.3%, and net income was $15.9 million or $0.35 per diluted share. This compares to gross margin of 17.7%, operating margin of 6.9%, and net income of $14.4 million or $0.32 per diluted share in the prior quarter.

Fourth Quarter 2024 Outlook
The Company expects revenue in the range of $535 million to $585 million. The Company expects GAAP diluted net income per share to be between $0.06 and $0.26 and non-GAAP diluted net income per share to be between $0.34 and $0.54.

Conference Call
The conference call and webcast will take place on Monday, October 28, 2024 at 1:45 p.m. PT and can be accessed by dialing 1-800-836-8184 or 1-646-357-8785. No passcode is required. A replay of the call will be available by dialing 1-888-660-6345 or 1-646-517-4150 and entering the confirmation code 34185#. The Webcast will be available on the Investor Relations section of the Company's website at http://uct.com/investors/events/.

About Ultra Clean Holdings, Inc.
Ultra Clean Holdings, Inc. is a leading developer and supplier of critical subsystems, components, parts, and ultra-high purity cleaning and analytical services, primarily for the semiconductor industry. Under its Products division, UCT offers its customers an integrated outsourced solution for major subassemblies, improved design-to-delivery cycle times, design for manufacturability, prototyping, and high-precision manufacturing. Under its Services Division, UCT offers its customers tool chamber parts cleaning and coating, as well as micro-contamination analytical services. Ultra Clean is headquartered in Hayward, California. Additional information is available at www.uct.com.  

Use of Non-GAAP Measures
In addition to providing results that are determined in accordance with Generally Accepted Accounting Principles in the United States of America ("GAAP"), management uses non-GAAP gross margin, non-GAAP operating margin and non-GAAP net income to evaluate the Company's operating and financial results. We believe the presentation of non-GAAP results is useful to investors for analyzing our core business and business trends and comparing performance to prior periods, along with enhancing investors' ability to view the Company's results from management's perspective. The presentation of this additional information should not be considered a substitute for results prepared in accordance with GAAP. Tables presenting reconciliations from GAAP results to non-GAAP results are included at the end of this press release.

The Company defines non-GAAP net income as net income (loss) before amortization of intangible assets, stock-based compensation, restructuring charges, acquisition activity costs, fair value adjustments, debt refinancing costs, legal-related costs and the tax effects of the foregoing adjustments.

A reconciliation of our guidance for non-GAAP net income per diluted share for the subsequent quarter is not available due to fluctuations in the geographic mix of our earnings from quarter to quarter, which impacts our tax rate and cannot be reasonably predicted or determined. As a result, such reconciliation is not available without unreasonable efforts and we are unable to determine the probable significance of the unavailable information.

Safe Harbor Statement
The foregoing information contains, or may be deemed to contain, "forward-looking statements" (as defined in the US Private Securities Litigation Reform Act of 1995) which reflect our current views with respect to future events and financial performance. We use words such as "anticipates," "projection," "outlook," "forecast," "believes," "plan," "expect," "future," "intends," "may," "will," "estimates," "see," "predicts," "should" and similar expressions to identify these forward-looking statements. Forward looking statements included in this press release include our expectations about the semiconductor capital equipment market and outlook. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, the Company's actual results may differ materially from the results predicted or implied by these forward-looking statements. These risks, uncertainties and other factors also include, among others, those identified in "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations'' and elsewhere in our annual report on Form 10-K for the year ended December 29, 2023, as filed with the Securities and Exchange Commission. Ultra Clean Holdings, Inc. undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise unless required by law.

Contact:
Rhonda Bennetto
SVP Investor Relations
rbennetto@uct.com

 

 ULTRA CLEAN HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; in millions, except per share data)










Three Months Ended


Nine Months Ended


September 27,

2024


September 29,

2023


September 27,

2024


September 29,

2023

Revenues:








Product

$             479.0


$             380.9


$          1,350.2


$          1,112.0

Services

61.4


54.1


184.1


177.8

Total revenues

540.4


435.0


1,534.3


1,289.8

Cost of revenues:








Product

403.3


329.3


1,141.2


955.5

Services

43.7


40.5


128.6


128.0

Total cost revenues

447.0


369.8


1,269.8


1,083.5

Gross margin

93.4


65.2


264.5


206.3

Operating expenses:








Research and development

7.1


7.4


21.2


21.7

Sales and marketing

14.4


12.8


42.9


38.6

General and administrative

46.7


39.3


135.1


115.3

Total operating expenses

68.2


59.5


199.2


175.6

Income from operations

25.2


5.7


65.3


30.7

Interest income

1.1


1.2


3.9


2.5

Interest expense

(12.0)


(12.3)


(35.8)


(35.9)

Other income (expense), net

(4.1)


(2.1)


9.3


(0.8)

Income before provision for income taxes

10.2


(7.5)


42.7


(3.5)

Provision for income taxes

9.9


5.3


28.2


17.1

Net income (loss)

0.3


(12.8)


14.5


(20.6)

Less: Net income attributable to noncontrolling interests

2.6


1.7


7.1


6.7

Net income (loss) attributable to UCT

$               (2.3)


$             (14.5)


$                7.4


$             (27.3)









Net income (loss) per share attributable to UCT common  stockholders:

Basic

$             (0.05)


$             (0.32)


$              0.16


$             (0.61)

Diluted

$             (0.05)


$             (0.32)


$              0.16


$             (0.61)

Shares used in computing net income (loss) per share:

Basic

45.0


44.8


44.8


44.8

Diluted

45.0


44.8


45.4


44.8

 

ULTRA CLEAN HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited; in millions)






September 27,

2024


December 29,

2023

ASSETS




Current assets:




Cash and cash equivalents

$             318.2


$            307.0

Accounts receivable, net of allowance for credit losses

228.1


180.8

Inventories

402.6


374.5

Prepaid expenses and other current assets

36.9


30.9

Total current assets

985.8


893.2

Property, plant and equipment, net

327.7


328.3

Goodwill

265.3


265.2

Intangible assets, net

192.4


215.3

Deferred tax assets, net

3.6


3.1

Operating lease right-of-use assets

162.2


151.7

Other non-current assets

10.5


10.9

Total assets

$           1,947.5


$         1,867.7

LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Bank borrowings

$               16.4


$             17.6

Accounts payable

233.2


192.9

Accrued compensation and related benefits

47.9


47.7

Operating lease liabilities

19.0


18.1

Other current liabilities

42.3


33.7

Total current liabilities

358.8


310.0

Bank borrowings, net of current portion

475.8


461.2

Deferred tax liabilities

18.9


19.0

Operating lease liabilities

155.6


143.0

Other liabilities

16.0


37.3

Total liabilities

1,025.1


970.5

Equity:




UCT stockholders' equity:




Common stock

507.7


496.6

Retained earnings

354.1


346.7

Accumulated other comprehensive loss

(3.9)


(4.4)

Total UCT stockholders' equity

857.9


838.9

Noncontrolling interests

64.5


58.3

Total equity

922.4


897.2

Total liabilities and equity

$           1,947.5


$         1,867.7





 

ULTRA CLEAN HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in millions)






Nine Months Ended


September 27,
2024


September 29,
2023

Cash flows from operating activities:




Net income (loss)

$                14.5


$               (20.6)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:




Depreciation and amortization

34.1


27.9

Amortization of intangible assets

22.9


16.9

Stock-based compensation

12.7


8.7

Amortization of debt issuance costs

2.4


2.9

Change in the fair value of financial instruments

(21.7)


(0.3)

Deferred income taxes

(1.2)


0.1

Loss (gain) on sale of property, plant and equipment

1.2


(1.1)

Changes in assets and liabilities:




Accounts receivable

(47.3)


83.2

Inventories

(28.1)


65.6

Prepaid expenses and other current assets

(2.9)


7.5

Other non-current assets

0.6


0.8

Accounts payable

46.1


(61.2)

Accrued compensation and related benefits

0.2


(11.8)

Income taxes payable

1.4


(8.9)

Operating lease assets and liabilities

8.1


(3.7)

Other liabilities

4.9


(5.4)

Net cash provided by operating activities

47.9


100.6

Cash flows from investing activities:




Purchases of property, plant and equipment

(46.2)


(59.2)

Proceeds from sale of equipment


2.3

Net cash used in investing activities

(46.2)


(56.9)

Cash flows from financing activities:




Proceeds from bank borrowings

67.7


Proceeds from issuance of common stock

0.9


Extinguishment of debt

(44.2)


Principal payments on bank borrowings

(10.1)


(34.7)

Payment of debt issuance costs

(2.5)


(0.3)

Employees' taxes paid upon vesting of restricted stock units

(2.5)


(2.2)

Payments of dividends to a joint venture shareholder

(0.5)


(0.1)

Repurchase of shares


(23.7)

Net cash provided by (used in) financing activities

8.8


(61.0)

Effect of exchange rate changes on cash and cash equivalents

0.7


0.5

Net increase (decrease) in cash and cash equivalents

11.2


(16.8)

Cash and cash equivalents at beginning of period

307.0


358.8

Cash and cash equivalents at end of period

$               318.2


$               342.0

 

ULTRA CLEAN HOLDINGS, INC.

REPORTABLE SEGMENTS

GAAP TO NON-GAAP RECONCILIATION

(Unaudited; dollars in millions)














GAAP


Non-GAAP


Three Months Ended


Three Months Ended


September 27, 2024


September 27, 2024


Products


Services


Consolidated


Products


Services


Consolidated

Revenues

$   479.0


$    61.4


$      540.4


$   479.0


$    61.4


$      540.4

Gross profit

$     75.7


$    17.7


$        93.4


$     77.3


$    18.7


$        96.0

Gross margin

15.8 %


28.8 %


17.3 %


16.1 %


30.5 %


17.8 %

Income from operations

$     22.4


$      2.8


$        25.2


$     33.3


$      6.2


$        39.5

Operating margin

4.7 %


4.6 %


4.7 %


7.0 %


10.1 %


7.3 %




















Three Months Ended








September 27, 2024








Products


Services


Consolidated

Reconciliation of GAAP Gross profit to Non-GAAP Gross profit (in millions)

Reported gross profit on a GAAP basis


$     75.7


$    17.7


$        93.4

Amortization of intangible assets (1)


1.3


1.0


2.3

Stock-based compensation expense (2)


0.3



0.3

Non-GAAP gross profit


$     77.3


$    18.7


$        96.0













Reconciliation of GAAP Gross margin to Non-GAAP Gross margin

Reported gross margin on a GAAP basis


15.8 %


28.8 %


17.3 %

Amortization of intangible assets (1)


0.2 %


1.7 %


0.4 %

Stock-based compensation expense (2)


0.1 %


— %


0.1 %

Non-GAAP gross margin


16.1 %


30.5 %


17.8 %













Reconciliation of GAAP Income from operations to Non-GAAP Income from operations (in millions)

Reported income from operations on a GAAP basis


$     22.4


$      2.8


$        25.2

Amortization of intangible assets (1)


4.7


2.9


7.6

Stock-based compensation expense (2)


4.0


0.5


4.5

Restructuring charges (3)


0.3



0.3

Acquisition related costs (4)


0.6



0.6

Legal-related costs (5)


1.3



1.3

Non-GAAP income from operations


$     33.3


$      6.2


$        39.5













Reconciliation of GAAP Operating margin to Non-GAAP Operating margin

Reported operating margin on a GAAP basis


4.7 %


4.6 %


4.7 %

Amortization of intangible assets (1)


1.0 %


4.7 %


1.4 %

Stock-based compensation expense (2)


0.8 %


0.8 %


0.8 %

Restructuring charges (3)


0.1 %


— %


0.1 %

Acquisition related costs (4)


0.1 %


— %


0.1 %

Legal-related costs (5)


0.3 %


— %


0.2 %

Non-GAAP operating margin


7.0 %


10.1 %


7.3 %













1    Amortization of intangible assets related to the Company's business acquisitions

2    Represents compensation expense for stock granted to employees and directors

3    Represents severance, retention and costs related to facility closures

4    Represents acquisition activity costs

5    Represents estimated costs related to certain legal proceedings

 

ULTRA CLEAN HOLDINGS, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS








Three Months Ended


September 27,

2024


September 29,

2023


June 28,

2024

Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (in millions)

Reported net income (loss) attributable to UCT on a GAAP basis

(2.3)


$          (14.5)


$     19.1

Amortization of intangible assets (1)

7.6


5.5


7.6

Stock-based compensation expense (2)

4.5


3.9


4.7

Restructuring charges (3)

0.3


3.2


0.5

Acquisition related costs (4)

0.6


0.7


Fair value related adjustments (5)

0.8



(24.1)

Debt refinancing costs expensed (6)



3.6

Legal-related costs (7)

1.3



Income tax effect of non-GAAP adjustments (8)

(4.1)


(5.0)


1.9

Income tax effect of valuation allowance (9)

7.2


8.2


1.1

Non-GAAP net income attributable to UCT

$           15.9


$             2.0


$     14.4







Reconciliation of GAAP Income from operations to Non-GAAP Income from operations (in millions)

Reported income from operations on a GAAP basis

$           25.2


$             5.7


$     22.9

Amortization of intangible assets (1)

7.6


5.5


7.6

Stock-based compensation expense (2)

4.5


3.9


4.7

Restructuring charges (3)

0.3


3.2


0.5

Acquisition related costs (4)

0.6


0.7


Legal-related costs (7)

1.3



Non-GAAP income from operations

$           39.5


$           19.0


$     35.7







Reconciliation of GAAP Operating margin to Non-GAAP Operating margin

Reported operating margin on a GAAP basis

4.7 %


1.3 %


4.4 %

Amortization of intangible assets (1)

1.4 %


1.3 %


1.5 %

Stock-based compensation expense (2)

0.8 %


0.9 %


0.9 %

Restructuring charges (3)

0.1 %


0.7 %


0.1 %

Acquisition related costs (4)

0.1 %


0.2 %


— %

Legal-related costs (7)

0.2 %


— %


— %

Non-GAAP operating margin

7.3 %


4.4 %


6.9 %







Reconciliation of GAAP Gross profit to Non-GAAP Gross profit (in millions)

Reported gross profit on a GAAP basis

$           93.4


$           65.2


$     88.5

Amortization of intangible assets (1)

2.3


1.5


2.3

Stock-based compensation expense (2)

0.3


0.2


0.5

Restructuring charges (3)


0.7


0.2

Non-GAAP gross profit

$           96.0


$           67.6


$     91.5







Reconciliation of GAAP Gross margin to Non-GAAP Gross margin

Reported gross margin on a GAAP basis

17.3 %


15.0 %


17.1 %

Amortization of intangible assets (1)

0.4 %


0.3 %


0.5 %

Stock-based compensation expense (2)

0.1 %


0.0 %


0.1 %

Restructuring charges (3)

— %


0.2 %


0.0 %

Non-GAAP gross margin

17.8 %


15.5 %


17.7 %







Reconciliation of GAAP Other income (expense), net to Non-GAAP Other income (expense), net (in millions)

Reported Other income (expense), net on a GAAP basis

$            (4.1)


$            (2.1)


$     17.4

Fair value related adjustments (5)

0.8



(24.1)

Debt refinancing costs expensed (6)



3.6

Non-GAAP Other income (expense), net

$            (3.3)


$            (2.1)


$      (3.1)







Reconciliation of GAAP Income (Loss) Per Diluted Share to Non-GAAP Earnings Per Diluted Share

Reported net income (loss) on a GAAP basis

$          (0.05)


$          (0.32)


$     0.42

Amortization of intangible assets (1)

0.17


0.12


0.17

Stock-based compensation expense (2)

0.10


0.09


0.10

Restructuring charges (3)

0.00


0.07


0.01

Acquisition related costs (4)

0.01


0.02


Fair value related adjustments (5)

0.02



(0.53)

Debt refinancing costs expensed (6)



0.08

Legal-related costs (7)

0.03



Income tax effect of non-GAAP adjustments (8)

(0.09)


(0.11)


0.04

Income tax effect of valuation allowance (9)

0.16


0.17


0.03

Non-GAAP net earnings

$           0.35


$           0.04


$     0.32

Weighted average number of diluted shares (in millions) on a non-GAAP basis

45.5


45.0


45.4








ULTRA CLEAN HOLDINGS, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP EFFECTIVE INCOME TAX RATE








Three Months Ended


September 27,

2024


September 29,

2023


June 28,

2024

Provision for income taxes on a GAAP basis

$             9.9


$             5.3


$       8.5

Income tax effect of non-GAAP adjustments (8)

4.1


5.0


(1.9)

Income tax effect of valuation allowance (9)

(7.2)


(8.2)


(1.1)

Non-GAAP provision for income taxes

$             6.8


$             2.2


$       5.5







Income before income taxes on a GAAP basis

$           10.2


$            (7.5)


$     30.0

Amortization of intangible assets (1)

7.6


5.5


7.6

Stock-based compensation expense (2)

4.5


3.9


4.7

Restructuring charges (3)

0.3


3.2


0.5

Acquisition related costs (4)

0.6


0.7


Fair value related adjustments (5)

0.8



(24.1)

Debt refinancing costs expensed (6)



3.6

Legal-related costs (7)

1.3



Non-GAAP income before income taxes

$           25.3


$             5.8


$     22.3

Effective income tax rate on a GAAP basis

97.1 %


(70.7) %


28.3 %

Non-GAAP effective income tax rate

27.1 %


37.3 %


24.7 %







1    Amortization of intangible assets related to the Company's business acquisitions

2    Represents compensation expense for stock granted to employees and directors

3    Represents severance, retention and costs related to facility closures

4    Represents acquisition activity costs

5    Fair value adjustments related to contingent consideration

6    Represents the third party transaction costs related to the amended credit agreement and the previously capitalized

      costs of extinguished debt

7    Represents estimated costs related to certain legal proceedings

8    Tax effect of items (1) through (7) above based on the non-GAAP tax rate

9    The Company's GAAP tax expense is generally higher than the Company's non-GAAP tax expense, primarily due to

      losses in the U.S. with full federal and state valuation allowances. The Company's non-GAAP tax rate and resulting

      non-GAAP tax expense considers the tax implications as if there was no federal or state valuation allowance position

      in effect

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/ultra-clean-reports-third-quarter-2024-financial-results-302288868.html

SOURCE Ultra Clean Holdings, Inc.

FAQ

What was Ultra Clean Holdings (UCTT) revenue in Q3 2024?

Ultra Clean Holdings reported total revenue of $540.4 million in Q3 2024, with Products contributing $479.0 million and Services adding $61.4 million.

What is UCTT's revenue guidance for Q4 2024?

Ultra Clean Holdings expects revenue in the range of $535 million to $585 million for Q4 2024.

What was Ultra Clean Holdings' (UCTT) earnings per share in Q3 2024?

UCTT reported a GAAP loss of $(0.05) per diluted share and non-GAAP earnings of $0.35 per diluted share in Q3 2024.

What factors drove UCTT's performance in Q3 2024?

UCTT's performance was driven by broader equipment demand for AI infrastructure build-out and sustained domestic China market spending.

Ultra Clean Holdings, Inc.

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