Ultra Clean Reports First Quarter 2010 Financial Results

HAYWARD, Calif., April 26 /PRNewswire-FirstCall/ -- 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 reported its financial results for the first quarter of fiscal year 2010 ended April 2, 2010.  Revenue for the first quarter was $98.5 million, an increase of 35% from the fourth quarter 2009 and an increase of 340% from the same period a year ago.  Gross margin for the first quarter was 12.6%, compared to 11.6% for the fourth quarter 2009 and (12.8)% for the same period a year ago. The company recorded net income of $3.9 million, or $0.17 per share, compared to a net profit of $2.5 million, or $0.11 per share, for the fourth quarter 2009 and a net loss of $7.0 million, or $(0.33) per share, for the first quarter of 2009.  

Cash at the end of the first quarter 2010 was $27.7 million, an increase of $1.0 million from the prior quarter.  Net inventory was $56.7 million, an increase of $9.7 million, compared to $47.0 million at the end of the fourth quarter.

Clarence Granger, Ultra Clean's Chairman and Chief Executive Officer stated: "The results of our first quarter of 2010 represent continued revenue and profitability growth for Ultra Clean and we are very pleased that for the second straight quarter we were able to exceed both our revenue and EPS guidance for the quarter.  In addition to the continued growth in the semiconductor capital equipment market we continue to be excited about our growth opportunities in the other related markets we serve. We expect to expand our gross margin as a percent of revenue during the balance of the year through improved manufacturing efficiencies and increased utilization of our Shanghai and Singapore facilities."

Commenting on Ultra Clean's corporate guidance, Granger noted: "As we move into the second quarter we are very optimistic about our growth in profitability and our expansion into other markets.  Revenue guidance for the second quarter is $95 million to $100 million, with earnings per share in the range of $0.17 to $0.21."

Ultra Clean will conduct a conference call today, Monday, April 26, 2010, beginning at 2:00 p.m. PDT at 888-561-5097 (domestic) and 706-679-7569 (international). A replay of the webcast will be available for fourteen days following the conference call at 800-642-1687 (domestic) and 706-645-9291 (international). The confirmation number for the live broadcast and replays is 68219580 (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," "believes," "plan," "expect," "future,"' "intends," "may," "will," "should," "estimates," "predicts," "potential," "continue" and similar expressions to identify these forward-looking statements. Forward looking statements included in the press release include estimates made with respect to our second quarter 2010 revenue and earnings per share. 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 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 January 1, 2010, 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.