Ultra Clean Revises Fourth Quarter 2022 Guidance

Rhea-AI Summary

Ultra Clean Holdings, Inc. (Nasdaq: UCTT) has revised its fourth quarter 2022 revenue guidance from an expected range of $600 million to $650 million to a new range of $560 million to $570 million. This adjustment is attributed to customer order modifications stemming from a weakening industry environment and manufacturing output declines due to COVID-19 resurgence in its China facility. The Company will implement cost improvement initiatives while maintaining investments for long-term growth. Further details will be shared during the upcoming earnings call.

Positive

• Initiating cost improvement initiatives to reduce operating expenses.

Negative

• Revenue guidance revised downward by $40 million to $80 million.
• Declines in manufacturing output due to COVID-19 in the China facility.
• Weakening industry environment impacting customer orders.

HAYWARD, Calif., Jan. 9, 2023 /PRNewswire/ --Ultra Clean Holdings, Inc. (Nasdaq: UCTT), today announced a revision to its fourth quarter, 2022 revenue guidance.  

On October 26, 2022, the Company announced it expected revenue for the fourth quarter of 2022 in the range of $600 million to $650 million. The Company now expects revenue to be in the range of $560 million to $570 million.

The guidance change is the result of customer order modifications related to the weakening industry environment and manufacturing output declines due to the resurgence of COVID in UCT's China facility. These circumstances were unforeseen when the original guidance was provided, and the Company believes this does not represent a change to its competitive position or capabilities. 

The Company is responding to changing business conditions by initiating a series of cost improvement initiatives to reduce operating expenses while balancing investments to ensure long-term growth. Additional details will be provided during the Company's Fourth Quarter and Full Year 2022 Earnings call.

About Ultra Clean Holdings, Inc.

Ultra Clean Holdings, Inc. is a leading developer and supplier of critical subsystems, components and 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.

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

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SOURCE Ultra Clean Holdings, Inc.

FAQ

What is the updated revenue guidance for Ultra Clean Holdings for Q4 2022?

Ultra Clean Holdings now expects revenue in the range of $560 million to $570 million for Q4 2022.

Why did Ultra Clean revise its revenue guidance downward?

The revision is due to customer order modifications related to a weakening industry environment and manufacturing output declines from COVID-19 in China.

How much was the decrease in revenue guidance for UCTT?

The revenue guidance was decreased by $40 million to $80 million from the previously expected range.

What actions is Ultra Clean taking in response to business conditions?

The Company is implementing a series of cost improvement initiatives to reduce operating expenses while continuing to invest in long-term growth.

When will Ultra Clean Holdings provide more details about its financial performance?

Further details will be provided during the Company’s Fourth Quarter and Full Year 2022 earnings call.