Ultra Clean Reports Second Quarter 2011 Financial Results

HAYWARD, Calif., July 25, 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 second quarter of fiscal year 2011 ended July 1, 2011.  

Revenue for the second quarter was $133.7 million, an increase of 5.5% from the first quarter 2011 and an increase of 26.3% from the same period a year ago.  Semiconductor revenue was 74% of total revenue for the second quarter compared to 80% in the previous quarter and revenue outside the US accounted for 31% of the total revenue for the second quarter compared to 29% for the previous quarter. Gross margin for the second quarter was 14.2%, compared to 13.9% for the first quarter 2011 and 14.0% for the second quarter a year ago.

The company recorded net income of $7.0 million, or $0.30 per share in the second quarter compared to net income of $5.8 million, or $0.25 per share in the first quarter of 2011 and net income of $5.7 million, or $0.25 per share for the second quarter of 2010.  

Cash at the end of the second quarter 2011 was $37.6 million, an increase of $2.3 million from the prior quarter.  Net liquidity was $11.4 million, an increase of $3.4 million from the prior quarter.

Clarence Granger, Ultra Clean's Chairman and Chief Executive Officer stated: "We are extremely pleased with our operating results for the second quarter of 2011, as we surpassed our guidance for both revenue and earnings per share.  Revenue, again, was at an all-time high and we continued to improve our operational efficiencies during the quarter as evidenced by the increase in our gross margins. We continue to drive more revenue through our Asian operations as well as increase the proportion of revenues from non-semiconductor equipment industries."

Commenting on Ultra Clean's corporate guidance, Granger noted: "Revenue guidance for the third quarter 2011 is $105 million to $110 million, with earnings per share in the range of $0.14 to $0.18. This projection reflects the declines in demand projected by all of our major semiconductor equipment customers for the third quarter of 2011. During the third quarter we are forecasting a tax rate of 24%."

Ultra Clean will conduct a conference call today, Monday, July 25, 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 855-859-2056 (domestic) and 404-537-3406 (international). The confirmation number for the live broadcast and replay is 82775093 (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 third 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 December 31, 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.