HAYWARD, Calif., May 6, 2024 /PRNewswire/ -- Ultra Clean Holdings, Inc. (NASDAQ:UCTT), today reported its financial results for the first quarter ended March 29, 2024. "UCT's first quarter revenue and earnings came in above midpoint due to pockets of strength in shipments related to High Bandwidth Memory and advanced packaging supporting AI as well as the operational efficiencies associated with those shipments," said Jim Scholhamer. "While not a clear sign of a broader industry recovery right now, we anticipate these areas remaining strong." First Quarter 2024 GAAP Financial ResultsTotal revenue was $477.7 million. Products contributed $418.5 million and Services added $59.2 million. Total gross margin was 17.3%, operating margin was 3.6%, and net loss was $(9.4) million or $(0.21) per diluted share. This compares to total revenue of $444.8 million, gross margin of 16.0%, operating margin of 1.0%, and net loss of $(3.8) million or $(0.08) per diluted share, in the prior quarter. First Quarter 2024 Non-GAAP Financial ResultsOn a non-GAAP basis, gross margin was 17.9%, operating margin was 6.5%, and net income was $12.1 million or $0.27 per diluted share. This compares to gross margin of 16.7%, operating margin of 5.2%, and net income of $8.5 million or $0.19 per diluted share in the prior quarter. Second Quarter 2024 OutlookThe Company expects revenue in the range of $465 million to $515 million. The Company expects GAAP diluted net loss per share to be between $(0.13) and $0.07 and non-GAAP diluted net income per share to be between $0.16 and $0.36. Conference CallThe conference call and webcast will take place on Monday, May 6, 2024 at 1:45 p.m. PT and can be accessed by dialing 1-800-836-8184 or 1-646-357-8785. No passcode is required. A replay of the call will be available by dialing 1-888-660-6345 or 1-646-517-4150 and entering the confirmation code 78395#. The Webcast will be available on the Investor Relations section of the Company's website at http://uct.com/investors/events/. About Ultra Clean Holdings, Inc.Ultra Clean Holdings, Inc. is a leading developer and supplier of critical subsystems, components, parts, and ultra-high purity cleaning and analytical services, primarily for the semiconductor industry. Under its Products division, UCT offers its customers an integrated outsourced solution for major subassemblies, improved design-to-delivery cycle times, design for manufacturability, prototyping, and high-precision manufacturing. Under its Services Division, UCT offers its customers tool chamber parts cleaning and coating, as well as micro-contamination analytical services. Ultra Clean is headquartered in Hayward, California. Additional information is available at www.uct.com.  Use of Non-GAAP MeasuresIn addition to providing results that are determined in accordance with Generally Accepted Accounting Principles in the United States of America ("GAAP"), management uses non-GAAP gross margin, non-GAAP operating margin and non-GAAP net income to evaluate the Company's operating and financial results. We believe the presentation of non-GAAP results is useful to investors for analyzing our core business and business trends and comparing performance to prior periods, along with enhancing investors' ability to view the Company's results from management's perspective. The presentation of this additional information should not be considered a substitute for results prepared in accordance with GAAP. Tables presenting reconciliations from GAAP results to non-GAAP results are included at the end of this press release. The Company defines non-GAAP net income as net loss before amortization of intangible assets, stock-based compensation, restructuring charges, acquisition activity costs, fair value adjustments, legal-related costs and the tax effects of the foregoing adjustments. A reconciliation of our guidance for non-GAAP net income per diluted share for the subsequent quarter is not available due to fluctuations in the geographic mix of our earnings from quarter to quarter, which impacts our tax rate and cannot be reasonably predicted or determined. As a result, such reconciliation is not available without unreasonable efforts and we are unable to determine the probable significance of the unavailable information. Safe Harbor StatementThe 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," "projection," "outlook," "forecast," "believes," "plan," "expect," "future," "intends," "may," "will," "estimates," "see," "predicts," "should" and similar expressions to identify these forward-looking statements. Forward looking statements included in this press release include our expectations about the semiconductor capital equipment market and outlook. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, the Company's actual results may differ materially from the results predicted or implied by these forward-looking statements. These risks, uncertainties and other factors also 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 29, 2023, as 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 unless required by law.  Contact:Rhonda BennettoSVP Investor    ULTRA CLEAN HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited; in millions, except per share data) Three Months Ended March 29, 2024 March 31, 2023 Revenues: Product $               418.5 $               368.6 Services 59.2 64.7 Total revenues 477.7 433.3 Cost of revenues: Product 354.0 315.1 Services 41.1 45.2 Total cost revenues 395.1 360.3 Gross margin 82.6 73.0 Operating expenses: Research and development 7.0 7.1 Sales and marketing 13.7 13.1 General and administrative 44.6 40.4 Total operating expenses 65.3 60.6 Income from operations 17.3 12.4 Interest income 1.4 0.5 Interest expense (12.2) (11.8) Other income (expense), net (3.8) 2.8 Income before provision for income taxes 2.7 3.9 Provision for income taxes 9.9 3.5 Net income (loss) (7.2) 0.4 Less: Net income attributable to noncontrolling interests 2.2 3.8 Net loss attributable to UCT $                 (9.4) $                 (3.4) Net loss per share attributable to UCT common stockholders: Basic $               (0.21) $               (0.08) Diluted $               (0.21) $               (0.08) Shares used in computing net loss per share: Basic 44.6 44.8 Diluted 44.6 44.8   ULTRA CLEAN HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited; in millions) March 29,2024 December 29,2023 ASSETS Current assets: Cash and cash equivalents $             293.0 $               307.0 Accounts receivable, net of allowance for credit losses 194.5 180.8 Inventories 388.1 374.5 Prepaid expenses and other current assets 33.1 30.9 Total current assets 908.7 893.2 Property, plant and equipment, net 329.2 328.3 Goodwill 265.2 265.2 Intangible assets, net 207.6 215.3 Deferred tax assets, net 3.3 3.1 Operating lease right-of-use assets 163.4 151.7 Other non-current assets 10.2 10.9 Total assets $          1,887.6 $            1,867.7 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Bank borrowings $               17.0 $                 17.6 Accounts payable 215.7 192.9 Accrued compensation and related benefits 37.1 47.7 Operating lease liabilities 18.3 18.1 Other current liabilities 41.3 33.7 Total current liabilities 329.4 310.0 Bank borrowings, net of current portion 458.2 461.2 Deferred tax liabilities 18.9 19.0 Operating lease liabilities 153.4 143.0 Other liabilities 38.6 37.3 Total liabilities 998.5 970.5 Equity: UCT stockholders' equity: Common stock 500.1 496.6 Retained earnings 337.3 346.7 Accumulated other comprehensive loss (6.5) (4.4) Total UCT stockholders' equity 830.9 838.9 Noncontrolling interests 58.2 58.3 Total equity 889.1 897.2 Total liabilities and equity $          1,887.6 $            1,867.7   ULTRA CLEAN HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited; in millions)