Ultra Clean Issues Mid-Quarter Update

HAYWARD, Calif., Aug. 21, 2012 /PRNewswire/ -- Ultra Clean Holdings, Inc. (Nasdaq: UCTT), a leading developer and supplier of critical subsystems for the semiconductor capital equipment, flat panel, medical, energy, and research industries, today provided a mid-quarter update for its third quarter ending September 28, 2012. 

The company is revising its revenue guidance for the third quarter of 2012 to range between $96 million to $101 million. While the company is not providing new earnings per share guidance it is reconfirming the forecasted tax rate for the quarter. During the company's second quarter earnings conference call on July 23, 2012 the company stated that it expected revenue for the third quarter of 2012 to range between $107 million to $112 million, with earnings per share in the range of $0.10 to $0.14. In addition, the company forecasted a tax rate of 32% for the third quarter and a tax rate of 28% for the year.

Clarence Granger, Ultra Clean's Chairman and Chief Executive Officer stated: "As discussed during our second quarter conference call, we continue to see a decline in demand within the semiconductor capital equipment industry in the second half of 2012. This decline has been greater than previously expected but we project it to flatten out during the fourth quarter of 2012. The decline is occurring primarily on the UCT side of our business.  During this difficult time in the industry we will continue our focus on operational improvement and inventory management.

Additionally, one of our larger semiconductor equipment customers has decided to insource a portion of their gas panel business in the future. While this decision will not have a material impact on our revenue in the second half of 2012, it could have a negative quarterly impact of 7% to 9% on total revenue by the end of 2013."  Mr. Granger added: "It's disappointing that our long-term partnership with this customer will be diminished in the future but we will continue to provide the same level of support and commitment that customers have come to expect from UCT.

On July 3, we announced that UCT completed the merger with Advanced Integration Technologies which we continue to believe will significantly strengthen the value proposition for existing customers and open up many new business opportunities going forward." The integration of the two companies is on track. "The business rational for this combination is clear to our customers and potential new customers as we continue to identify new ways that we can add value and support them in the future," stated Mr. Granger.

Ultra Clean will conduct a conference call today, Tuesday, August 21, beginning at 2:00 p.m. PDT at 866-297-2991 (domestic) and 706-679-7569 (international). A replay of the webcast will be available for fourteen days following the conference call at 855-859-2056 (domestic) and 404-537-3406 (international). The confirmation number for the live broadcast and replay is 23227554 (all callers). The conference call will also be webcast live and be available for fourteen days on our website.

About Ultra Clean Holdings, Inc.

Ultra Clean Holdings, Inc. is a leading developer and supplier of critical 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," "should," "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 2012 revenue and earnings per share and our forecasted tax rate for the third quarter of fiscal 2012 and the full fiscal year 2012. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, our 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 30, 2011 and our quarterly report on Form 10-Q for the quarter ended March 30, 2012 and June 29, 2012 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.

SOURCE Ultra Clean Holdings, Inc.