Ultra Clean Reports Fourth Quarter and Fiscal Year 2015 Financial Results

Q4 Results at high end of guidance; Record semiconductor revenue in 2015

Feb 23, 2016, 16:05 ET from Ultra Clean Holdings, Inc.

HAYWARD, Calif., Feb. 23, 2016 /PRNewswire/ -- 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 fourth quarter and fiscal year ended December 25, 2015.

Fourth Quarter Results Total revenue for the fourth quarter of 2015 was $103.4 million, a decrease of 15.8% compared to the third quarter of 2015 and a decrease of 13.8% compared to the same period a year ago. Semiconductor revenue was 93.9% of total revenue for the fourth quarter of 2015 compared to 92.0% in previous quarter, and 85.1% in the same period a year ago. Revenue outside the U.S. was 38.4% for the fourth quarter of 2015 compared to 35.6% in the previous quarter, and 29.9% in the four quarter of fiscal 2014. Gross margin for the fourth quarter of 2015 was 12.9%, compared to 15.4% for the previous quarter and 15.3% for the same period a year ago. During the fourth quarter, the Company recorded a non-cash charge of $13.9 million for a valuation allowance on its deferred tax assets related to its net operating loss carryforwards.

Net loss for the fourth quarter of fiscal 2015 was $15.8 million, or $0.49 per share (basic and diluted) compared to net income of $1.7 million, or $0.05 per share (basic and diluted), in the previous quarter and net income of $3.5 million, or $0.12 per share (basic and diluted), for the same period a year ago. Excluding the non-cash charge of $13.9 million for the valuation allowance, pre-tax charges of $2.2 million for intangible asset amortization costs and $0.6 million of costs related to severance payments and the closure of one of the Company's U.S. facilities, the Company would have reported a loss of $0.4 million, or $0.01 per diluted share for the fourth quarter of 2015.

Cash and cash equivalents at the end of the fourth quarter of fiscal year 2015 were $50.1 million, a decrease of $9.7 million from the previous quarter. Outstanding debt was $75.5 million at the end of the fourth quarter of fiscal year 2015, a decrease of $1.4 million from the previous quarter.

"Overall, 2015 was a very productive year as we achieved record semiconductor revenue and began to lay the foundation for future growth," said Jim Scholhamer, UCT's Chief Executive Officer. "We successfully completed two significant acquisitions that expanded our capabilities, invested strategically in areas outside of our core business, strengthened our team, and optimized our worldwide footprint. With these accomplishments we believe we are setting the stage to outperform the broader semiconductor capital equipment market as the industry begins to recover."

Fiscal Year 2015 Results For fiscal year 2015 revenue was $469.1 million or a decline of 8.7% from fiscal year 2014. Semiconductor revenue was 92.4% of total revenue for fiscal year 2015 and 82.4% for fiscal 2014. Revenue outside the U.S. was 34.5% of total revenue in fiscal year 2015 compared to 29.6% in fiscal 2014.

Gross margin for fiscal year 2015 was 15.1% compared to 14.2% for fiscal year 2014.

Net loss for fiscal 2015 was $10.7 million, or $0.34 per share (basic and diluted), compared to net income of $11.4 million, or $0.38 per share (diluted) and $0.39 per share (basic), for fiscal year 2014. Excluding the non-cash charge of $13.9 million for the valuation allowance, pre-tax charges of $6.2 million for intangible asset amortization costs, $0.6 million of costs related to the acquisitions of Marchi and Miconex and $3.0 million of costs related to severance payments and the closure of one of the Company's U.S. facilities, the Company would have reported net income of $10.2 million, or $0.32 per share (diluted) for fiscal year 2015. Net income for fiscal year 2014 included pre-tax charges of $4.9 million for intangible asset amortization costs. Excluding these charges, the Company would have reported net income of $15.3 million, or $0.51 per share (diluted) for fiscal 2014.

First Quarter 2016 Outlook The Company expects revenue to be in the range between $108.0 million to $113.0 million and diluted net income (loss) per share in the range of $(0.02) to $0.01 based on an effective tax rate of 28.0%. Excluding intangible asset amortization costs of $1.4 million, the Company expects diluted income per share to be in the range of $0.01 to $0.04.

Conference Call UCT will conduct a conference call today, Tuesday, February 23, 2016, 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 23022728 (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.

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", "forecast", "believes," "plan," "expect," "future,"' "intends," "may," "will," "estimates," "predicts,"  and similar expressions to identify these forward-looking statements. Forward looking statements included in this press release include our expectations with respect to first quarter 2016 revenue and earnings per share and our forecasted tax rate for the first quarter of fiscal 2016. 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 26, 2014 and our quarterly report on Form 10-Q for the quarter ended September 25, 2015, each as filed with the Securities and Exchange Commission. Additional information will also be set forth in our annual report on Form 10-K for the year ended December 25, 2015. 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.

 

ULTRA CLEAN HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; in thousands, except per share data)

Three months ended

Twelve months ended

December 25,

December 26,

December 25,

December 26,

2015

2014

2015

2014

Sales

$

103,420

$

120,015

$

469,103

$

513,957

Cost of goods sold

90,079

101,652

398,073

440,824

Gross profit

13,341

18,363

71,030

73,133

Operating expenses:

  Research and development

2,259

1,696

9,578

7,067

  Sales and marketing

3,005

2,686

11,499

10,432

  General and administrative

11,391

9,055

44,112

37,450

    Total operating expenses

16,655

13,437

65,189

54,949

Income (loss) from operations

(3,314)

4,926

5,841

18,184

Interest and other income (expense), net

(163)

(334)

(2,234)

(1,854)

Income (loss) before provision for income taxes

(3,477)

4,592

3,607

16,330

Income tax provision

12,311

1,060

14,339

4,973

Net income (loss) 

$

(15,788)

$

3,532

$

(10,732)

$

11,357

Net income (loss) per share:

  Basic

$

(0.49)

$

0.12

$

(0.34)

$

0.39

  Diluted

$

(0.49)

$

0.12

$

(0.34)

$

0.38

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

  Basic

32,212

29,498

31,564

29,301

  Diluted

32,212

29,944

31,564

29,936

 

ULTRA CLEAN HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited; in thousands)

December 25,

December 26,

2015

2014

ASSETS

Current assets:

  Cash and cash equivalents

$

50,103

$

78,997

  Accounts receivable, net of allowance

59,148

61,817

  Inventory

72,716

56,850

  Other current assets

8,172

10,783

    Total current assets

190,139

208,447

Equipment and leasehold improvements, net

17,267

10,841

Goodwill

85,248

55,918

Purchased intangibles, net

42,782

16,824

Other non-current assets

717

4,112

Total assets

$

336,153

$

296,142

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

  Bank borrowings

$

12,744

$

9,541

  Accounts payable

39,660

48,944

  Other current liabilities

12,307

7,683

    Total current liabilities

64,711

66,168

Bank borrowings, net of current portion

62,795

38,614

Other long-term liabilities

7,704

2,808

    Total liabilities

135,210

107,590

Stockholders' equity:

  Common stock

172,975

149,834

  Retained earnings

27,986

38,718

  Accumulated other comprehensive loss

(18)

    Total stockholders' equity

200,943

188,552

Total liabilities and stockholders' equity

$

336,153

$

296,142

 

SOURCE Ultra Clean Holdings, Inc.



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