| Press Release | Source: Ultra Clean Holdings, Inc. |
| Ultra Clean Reports Q2 ’09 Financial Results |
Monday, August 3, 2009 4:30 pm EDT
Results in Line with Guidance as Industry Forecast Improves
HAYWARD, Calif., August 3, 2009 /PRNewswire/ -- 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 solar industries, today reported its financial results for the second quarter of 2009 ended July 3, 2009. Revenue for the second quarter of 2009 was $23.3 million, an increase of 4% from the first quarter of 2009 and a decrease of 66% from the same period a year ago. Gross margin (loss) for the second quarter of 2009 was (4%), compared to (13%) for the first quarter of 2009, and 11% for the same period a year ago.
On a GAAP basis, the company recorded a net loss of ($14.1) million or ($0.66) per share compared to a net loss of ($7.0) million or ($0.33) per share, for the first quarter of 2009 and net loss of ($0.2) million, or ($0.01) per share, for the same period a year ago. The second quarter 2009 net loss per share is inclusive of a non-cash income tax valuation allowance of $10.0 million or $0.47 per share. The non-GAAP net loss was ($4.1) million or ($0.19) per share during the second quarter of 2009.
Clarence Granger, Ultra Clean’s Chairman and Chief Executive Officer commented: “We exceeded the mid-range of our second quarter revenue and EPS guidance on a non-GAAP basis in what continued to be a challenging economic environment.”
Cash at the end of the second quarter of 2009 was $30.2 million, an increase of $0.4 million from $29.8 million at the end of the first quarter of 2009. Third party debt at the end of the second quarter was $16.1 million, a decrease of $1.2 million from $17.3 million at the end of the first quarter of 2009. Net cash at the end of the second quarter of 2009 increased $1.6 million to $14.1 from $12.5 reported at the end of the first quarter.
Commenting on Ultra Clean’s financial condition and corporate outlook, Granger noted, “During these turbulent times, we are steadfast in our commitment to maintain a strong balance sheet and focus on cash flow. While we remain cautious about the long-term outlook, we are seeing an improvement in business conditions during the second half of 2009. Revenue for the third quarter of 2009 will be in the range of $30 million to $36 million, and loss per share will be in the range of $(0.09) to $(0.17), on a non-GAAP basis. On a GAAP basis, loss per share will be in the range of $(0.16) to $(0.24) including the tax valuation allowance.”
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 solar 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, solar and medical device 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 2009 revenue and loss 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 April 3, 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 Statements of Operations |
| (Unaudited; in thousands, except per share data) |
| |
| | | For the three months ended | | | For the six months ended | |
| | | July 3, 2009 | | | June 27, 2008 | | | July 3, 2009 | | | June 27, 2008 | |
| | | | | | | | | | | | | | | | | |
| Sales | | $ | 23,252 | | | $ | 67,364 | | | $ | 45,652 | | | $ | 159,721 | |
| | | | | | | | | | | | | | | | | |
| Cost of goods sold | | | 24,106 | | | | 59,842 | | | | 49,376 | | | | 140,139 | |
| | | | | | | | | | | | | | | | | |
| Gross profit (loss) | | | (854 | ) | | | 7,522 | | | | (3,724 | ) | | | 19,582 | |
| | | | | | | | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | | | | | | | |
| Research and development | | | 748 | | | | 606 | | | | 1,664 | | | | 1,391 | |
| Sales and marketing | | | 1,165 | | | | 1,327 | | | | 2,195 | | | | 2,960 | |
| General and administrative | | | 3,517 | | | | 6,252 | | | | 8,859 | | | | 12,882 | |
| Total operating expenses | | | 5,430 | | | | 8,185 | | | | 12,718 | | | | 17,233 | |
| | | | | | | | | | | | | | | | | |
| Income (loss) from operations | | | (6,284 | ) | | | (663 | ) | | | (16,442 | ) | | | 2,349 | |
| | | | | | | | | | | | | | | | | |
| Interest and other income (expense), net | | | (228 | ) | | | (246 | ) | | | (423 | ) | | | (590 | ) |
| | | | | | | | | | | | | | | | | |
| Income (loss) before income taxes | | | (6,512 | ) | | | (909 | ) | | | (16,865 | ) | | | 1,759 | |
| | | | | | | | | | | | | | | | | |
| Income tax provision (benefit) | | | 7,551 | | | | (747 | ) | | | 4,238 | | | | 32 | |
| | | | | | | | | | | | | | | | | |
| Net income (loss) | | $ | (14,063 | ) | | $ | (162 | ) | | $ | (21,103 | ) | | $ | 1,727 | |
| | | | | | | | | | | | | | | | | |
| Net income (loss) per share: | | | | | | | | | | | | | | | | |
| Basic | | $ | (0.66 | ) | | $ | (0.01 | ) | | $ | (0.99 | ) | | $ | 0.08 | |
| Diluted | | $ | (0.66 | ) | | $ | (0.01 | ) | | $ | (0.99 | ) | | $ | 0.08 | |
| | | | | | | | | | | | | | | | | |
Shares used in computing net income (loss) per share: | | | | | | | | | | | | | | | | |
| Basic | | | 21,379 | | | | 21,643 | | | | 21,341 | | | | 21,604 | |
| Diluted | | | 21,379 | | | | 21,643 | | | | 21,341 | | | | 22,126 | |
| Ultra Clean Holdings, Inc |
| Condensed Consolidated Balance Sheets |
| (Unaudited; in thousands) |
| | | | | | | |
| | | July 3, | | | January 2, | |
| ASSETS | | 2009 | | | 2009 | |
| | | | | | | |
| Current assets: | | | | | | |
| Cash and cash equivalents | | $ | 30,200 | | | $ | 29,620 | |
| Accounts receivable | | | 10,326 | | | | 13,790 | |
| Inventory | | | 32,022 | | | | 39,814 | |
| Other current assets | | | 5,056 | | | | 11,268 | |
| Total current assets | | | 77,604 | | | | 94,492 | |
| | | | | | | | | |
| Equipment and leasehold improvements, net | | | 7,812 | | | | 8,954 | |
| Purchased intangibles, net | | | 8,987 | | | | 8,987 | |
| Other non-current assets | | | 306 | | | | 4,978 | |
| Total assets | | $ | 94,709 | | | $ | 117,411 | |
| | | | | | | | | |
| LIABILITIES & STOCKHOLDERS' EQUITY | | | | | | | | |
| Current liabilities | | | | | | | | |
| Bank borrowings | | $ | 1,971 | | | $ | 5,736 | |
| Accounts payable | | | 11,192 | | | | 11,275 | |
| Other current liabilities | | | 3,955 | | | | 4,284 | |
| Total current liabilities | | | 17,118 | | | | 21,295 | |
| | | | | | | | | |
| Bank debt and other long-term liabilities | | | 18,685 | | | | 17,717 | |
| Total liabilities | | | 35,803 | | | | 39,012 | |
| | | | | | | | | |
| Stockholders' equity | | | | | | | | |
| Common stock | | | 92,030 | | | | 90,420 | |
| Accumulated deficit | | | (33,124 | ) | | | (12,021 | ) |
| Total stockholders' equity | | | 58,906 | | | | 78,399 | |
| Total liabilities and stockholders' equity | | $ | 94,709 | | | $ | 117,411 | |
| Ultra Clean Holding, Inc. |
| Financial Bridge |
| August 3, 2009 Press Release |
| | | Net Charge | | | EPS Impact | |
| | | July 3, | | | July 3, | |
| Reconciliation of GAAP Net Loss to Non-GAAP Net Loss | | 2009 | | | 2009 | |
| GAAP net loss | | $ | (14,063 | ) | | $ | (0.66 | ) |
| Tax valuation allowance | | | 7,551 | | | | 0.35 | |
| Tax benefit | | | 2,421 | | | | 0.12 | |
| Non-GAAP net loss | | $ | (4,091 | ) | | $ | (0.19 | ) |
| | | | | | | | | |
| Diluted shares used in computing net loss per share | | | | | | | 21,379 | |
| | | | | | | | | |
| | | | | | | | | |
| | | Net Charge | | | EPS Impact | |
| | | July 3, | | | July 3, | |
| GAAP Net Loss on a Cash Basis | | 2009 | | | 2009 | |
| Net loss | | $ | (14,063 | ) | | $ | (0.66 | ) |
| Adjustments to reconcile net loss to net cash: | | | | | | | | |
| Depreciation and amortization | | | 646 | | | | 0.03 | |
| Stock-based compensation | | | 775 | | | | 0.04 | |
| Adjusted income on a cash basis | | $ | (12,642 | ) | | $ | (0.59 | ) |
| | | | | | | | | |
| Diluted shares used in computing net loss per share | | | | | | | 21,379 | |
