Ultra Clean Reports Second Quarter 2014 Financial Results Ultra Clean reports revenues at high end of guidance and exceeds EPS guidance for quarter on strong margin performance.

HAYWARD, Calif., July 21, 2014 /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 second quarter ended June 27, 2014.

Revenue for the second quarter of 2014 was $132.7 million, a decrease of 8.0% compared to the first quarter of 2014 and an increase of 20.5% compared to the same period a year ago.  Semiconductor equipment revenue was 76.6% of total revenue and revenue outside the U.S. accounted for 32.8% of total revenue for the second quarter of 2014. Gross margin for the second quarter of 2014 was 15.9%, compared to 16.2% for the previous quarter and 14.6% for the same period a year ago.

The Company recorded net income of $6.0 million, or $0.20 per share (basic and diluted) in the second quarter of 2014 compared to net income of $7.1 million, or $0.24 per share (basic and diluted), in the previous quarter and a net income of $2.3 million, or $0.08 per share (basic and diluted), for the second quarter of 2013. Net income includes pre-tax charges for amortization costs associated with the AIT transaction of $1.2 million, $1.2 million and $1.4 million for the second quarter of 2014, the first quarter of 2014 and the second quarter of 2013, respectively. Excluding these charges the Company would have reported net income of $0.23, $0.27 and $0.12 per diluted share for the second quarter of 2014, first quarter of 2014 and the second quarter of the previous year, respectively. The Company's tax rate for the second quarter of 2014 was 20.7%.

Cash and cash equivalents at the end of the second quarter of 2014 was $69.4 million, an increase of $9.0 million from the end of fiscal year 2013. Outstanding debt was $55.9 million at the end of the second quarter of 2014, an increase of $0.7 million from the end of fiscal year 2013 and a decrease of $7.9 million from the end of the first quarter of 2014.

Clarence Granger, Ultra Clean's Chairman and Chief Executive Officer, stated: "I am pleased with our overall performance for the quarter. Despite slowing demand, we were able to achieve revenues at the high end of our guidance and exceed EPS guidance while maintaining our margins within our targeted range of 15% to 18%. Our balance sheet is strong and we achieved the highest net liquidity since our acquisition of AIT two years ago.

Commenting on Ultra Clean's corporate guidance, Granger noted: "We expect revenue for the third quarter of 2014 to range between $115 million to $120 million, with diluted earnings per share in the range of $0.10 to $0.13. Excluding amortization costs of $1.2 million associated with the merger with AIT we expect diluted earnings per share to be in the range of $0.13 to $0.16. We are forecasting a tax rate of 20% for the third quarter of 2014."

Ultra Clean will conduct a conference call today, Monday, July 21, 2014, 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 59541239 (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 third quarter 2014 revenue and earnings per share and our forecasted tax rate for the third quarter of fiscal 2014. 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 27, 2013 as filed with the Securities and Exchange Commission. Additional information will also be set forth in our quarterly report on Form 10-Q for the quarter ended June 27, 2014 to be filed with the Securities and Exchange Commission.  Our periodic filings with the Securities and Exchange Commission are publicly available on the Securities and Exchange Commission's website at www.sec.gov.  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


Six months ended


June 27,



June 28,


June 27,



June 28,

2014



2013

2014



2013













Sales

$

132,677


$

110,107


$

276,901


$

210,571

Cost of goods sold


111,525



94,004



232,438



180,645

Gross profit


21,152



16,103



44,463



29,926













Operating expenses:












  Research and development


1,798



1,489



3,565



2,746

  Sales and marketing


2,592



2,465



5,254



4,784

  General and administrative


8,703



8,522



18,424



18,148

    Total operating expenses


13,093



12,476



27,243



25,678

Income from operations


8,059



3,627



17,220



4,248













Interest and other income (expense), net


(452)



(730)



(1,081)



(1,687)

Income before provision for income taxes


7,607



2,897



16,139



2,561

Income tax provision


1,575



581



3,051



556

Net income

$

6,032


$

2,316


$

13,088


$

2,005













Net income per share:












  Basic

$

0.20


$

0.08


$

0.45


$

0.07

  Diluted

$

0.20


$

0.08


$

0.44


$

0.07

Shares used in computing net income per share:












  Basic


29,438



28,370



29,157



28,172

  Diluted


29,882



28,757



29,905



28,750

  

 

ULTRA CLEAN HOLDINGS, INC.


CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited; in thousands, except share amounts)










June 27,


December 27,

2014

2013

ASSETS







Current assets:







  Cash and cash equivalents


$

69,365


$

60,415

  Accounts receivable



67,947



67,450

  Inventory



67,060



63,942

  Other current assets



10,331



8,652

    Total current assets



214,703



200,459








Equipment and leasehold improvements, net



8,207



8,534

Goodwill



55,918



55,918

Purchased intangibles, net



19,266



21,708

Other non-current assets



5,733



5,924

Total assets


$

303,827


$

292,543








LIABILITIES AND STOCKHOLDERS' EQUITY







Current liabilities:







  Bank borrowings


$

43,857


$

37,705

  Accounts payable



45,525



53,962

  Other current liabilities



10,301



8,377

    Total current liabilities



99,683



100,044








Bank debt and other long-term liabilities



15,012



20,570

  Total liabilities



114,695



120,614








Stockholders' equity:







  Common stock



148,683



144,568

  Retained Earnings



40,449



27,361

    Total stockholders' equity



189,132



171,929

Total liabilities and stockholders' equity


$

303,827


$

292,543

 

 

 

SOURCE Ultra Clean Holdings, Inc.



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