Ultra Clean Reports Fourth Quarter and Fiscal Year 2009 Financial Results
Company Returns To Profitability With Strong Revenue Growth
HAYWARD, Calif., Feb. 16 /PRNewswire-FirstCall/ -- Ultra Clean Holdings, Inc. (Nasdaq: UCTT), a leading developer and supplier of critical subsystems for the semiconductor capital equipment, medical device, research, flat panel and energy industries, today reported its financial results for the fourth quarter and fiscal year 2009 ended January 1, 2010. Revenue for the fourth quarter was $72.8 million, an increase of 76.1% from the third quarter 2009 and an increase of 54.6% from the same period a year ago. Gross margin for the fourth quarter was 11.6%, compared to 7.9% for the third quarter 2009, and 0.9% for the same period a year ago. The company recorded net income of $2.5 million or $0.11 per share compared to a net loss of ($1.4) million, or ($0.07) per share, for the third quarter 2009. Included in the $2.5 million net income in the fourth quarter is a tax benefit of $542,000, or $0.02 per share. In the fourth quarter 2008, the company recorded a net loss of ($52.2) million, or ($2.45) per share, which included a $55.1 million one-time charge for impairment of goodwill and long-term assets.
For fiscal year 2009 revenue was $160.0 million, a decrease of $107 million, or 40.1%, from the same period a year ago. Gross margin for fiscal year 2009 was 5.0% compared to 9.5% for the same period a year ago. The company recorded a net loss of ($20.0) million or ($0.94) per share for fiscal year 2009 compared to a net loss of ($52.4) million, or ($2.43) per share, for the same period a year ago. Included in the net loss for 2008 was a $55.1 million one-time charge for impairment of goodwill and long-term assets.
Cash at the end of the fourth quarter 2009 was $26.7 million, a decrease of $4.0 million from the prior quarter and third party debt at the end of the fourth quarter was $15.1 million, a decrease of $500,000 when compared to $15.6 million at the end of the third quarter 2009. Inventory was $47.0 million, an increase of $10.4 million, compared to $36.6 million at the end of the third quarter.
Clarence Granger, Ultra Clean's Chairman and Chief Executive Officer stated: "We are very pleased that the fourth quarter of 2009 represented a return to profitability for UCT and that we were able to exceed both our revenue and EPS guidance for the quarter. In addition to the continued dramatic growth in the semiconductor capital equipment market, we are very excited about our growth in the other related markets we serve."
Commenting on Ultra Clean's corporate guidance, Granger noted: "As we begin the new year, we are very optimistic about our continued growth and our expansion into other markets. Revenue guidance for the first quarter is $82 million to $87 million, with earnings per share in the range of $0.10 to $0.14. For the first quarter 2010 we are projecting a 10% tax rate."
Ultra Clean will conduct a conference call today, Tuesday, February 16, 2010, beginning at 2:00 p.m. PST 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 53412363 (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, medical device, research, flat panel and energy 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, medical device, flat panel and energy 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 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 2, 2009 and quarterly report on Form 10-Q for the quarter ended October 2, 2009, 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.
Ultra Clean Holdings, Inc.
Condensed Consolidated Balance Sheets
(Unaudited; in thousands)
January 1, January 2,
ASSETS 2010 2009
---- ----
Current assets:
Cash and cash equivalents $26,697 $29,620
Accounts receivable 34,787 13,790
Inventory 46,976 39,814
Other current assets 5,321 11,268
----- ------
Total current assets 113,781 94,492
Equipment and leasehold improvements, net 7,450 8,954
Purchased intangibles, net 8,987 8,987
Other non-current assets 408 4,978
--- -----
Total assets $130,626 $117,411
======== ========
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities
Bank borrowings $2,008 $5,736
Accounts payable 46,098 11,275
Other current liabilities 4,264 4,284
----- -----
Total current liabilities 52,370 21,295
Bank debt and other long-term liabilities 17,077 17,717
------ ------
Total liabilities 69,447 39,012
Stockholders' equity
Common stock 93,226 90,420
Accumulated deficit (32,047) (12,021)
------- -------
Total stockholders' equity 61,179 78,399
------ ------
Total liabilities and stockholders' equity $130,626 $117,411
======== ========
Ultra Clean Holdings, Inc.
Condensed Consolidated Statements of Operations
(Unaudited; in thousands, except per share data)
For the For the
three months twelve months
ended ended
------------- --------------
January 1, January 2, January 1, January 2,
2010 2009 2010 2009
---------- ---------- ---------- ----------
Sales $72,781 $47,070 $159,757 $266,919
Cost of goods sold 64,324 46,654 151,741 241,453
------ ------ ------- -------
Gross profit 8,457 416 8,016 25,466
----- --- ----- ------
Operating expenses:
Research and
development 777 1,029 3,212 2,904
Sales and marketing 1,471 1,315 4,693 5,739
General and
administrative 4,077 5,516 16,186 24,226
Impairment of
goodwill and long-
lived assets - 55,080 - 55,080
--- ------ --- ------
Total operating
expenses 6,325 62,940 24,091 87,949
----- ------ ------ ------
Income (loss) from
operations 2,132 (62,524) (16,075) (62,483)
----- ------- ------- -------
Interest and other
income (expense), net (179) (44) (791) (870)
Income (loss) before
income taxes 1,953 (62,568) (16,866) (63,353)
----- ------- ------- -------
Income tax provision
(benefit) (542) (10,352) 3,160 (10,936)
---- ------- ----- -------
Net income (loss) $2,495 $(52,216) $(20,026) $(52,417)
====== ======== ======== ========
Net income (loss) per share:
Basic $0.12 $(2.45) $(0.94) $(2.43)
Diluted $0.11 $(2.45) $(0.94) $(2.43)
Shares used in computing
net income (loss)
per share:
Basic 21,438 21,325 21,403 21,542
Diluted 22,630 21,325 21,403 21,542
SOURCE Ultra Clean Holdings, Inc.
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