Ultra Clean Reports Fourth Quarter and Fiscal 2010 Financial Results

HAYWARD, Calif., Feb. 14, 2011 /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 reported its financial results for the fourth quarter of fiscal year 2010 ended December 31, 2010.  Revenue for the fourth quarter was $120.3 million, an increase of 1.5% from the third quarter 2010 and an increase of 65.3% from the same period a year ago.  Gross margin for the fourth quarter was 12.3%, compared to 14.5% for the third quarter 2010 and 11.6% for the same period a year ago. The company recorded net income of $3.9 million, or $0.17 per share, compared to net income of $6.7 million, or $0.29 per share, for the third quarter 2010 and net income of $2.5 million, or $0.11 per share, for the fourth quarter of 2009.  Net income for the fourth quarter 2010 included one-time employment related cash charges of $400,000.

Cash at the end of the fourth quarter 2010 was $34.7 million, an increase of $6.9 million from the prior quarter.  Net inventory was $59.3 million at the end of the fourth quarter, a decrease of $4.8 million from the prior quarter.

Clarence Granger, Ultra Clean's Chairman and Chief Executive Officer stated: "In the fourth quarter of 2010 UCT again set an all-time record for revenue, however, our gross margins were lower than anticipated and remain a key focus of the company.  Our tax rate of 31% for the fourth quarter was unfavorably impacted by California legislation enacted in October which increased our effective tax rate for the quarter. The impact of this tax rate change was $730,000 in tax expense, or $0.03 per share. Moving ahead to the first quarter of 2011 we anticipate a continued increase in overall demand as well as continued progress in penetrating the HB-LED market".

Commenting on Ultra Clean's corporate guidance, Granger noted: "Revenue guidance for the first quarter 2011 is $119 million to $124 million, with earnings per share in the range of $0.19 to $0.23. We are forecasting a tax rate of 28%".

Ultra Clean will conduct a conference call today, Monday, February 14, 2011, beginning at 1:45 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 replay is 40880314 (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 first quarter 2011 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 and quarterly report on Form 10-Q for the quarter ended October 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.