Ultra Clean Holdings Reports Q3 Revenue Growth

By Tamara Parker • Tuesday, October 29 06:10 • Permanent Link

Ultra Clean Holdings, Inc. (NASDAQ: UCTT) has reported its financial results for the third quarter ended September 27, 2024. The company's total revenue for the quarter was $540.4 million, with products contributing $479.0 million and services adding $61.4 million. This represents an increase from the prior quarter's total revenue of $516.1 million.

On a GAAP basis, the company reported a total gross margin of 17.3%, operating margin of 4.7%, and a net loss of $(2.3) million or $(0.05) per diluted share, in contrast to the prior quarter's gross margin of 17.1%, operating margin of 4.4%, and net income of $19.1 million or $0.42 per diluted share.

Looking at non-GAAP metrics, the gross margin for the third quarter of 2024 was 17.8%, operating margin was 7.3%, and net income was $15.9 million or $0.35 per diluted share. This is an improvement from the prior quarter's non-GAAP gross margin of 17.7%, operating margin of 6.9%, and net income of $14.4 million or $0.32 per diluted share.

For the fourth quarter of 2024, Ultra Clean Holdings, Inc. expects revenue in the range of $535 million to $585 million. The company anticipates GAAP diluted net income per share to be between $0.06 and $0.26, and non-GAAP diluted net income per share to be between $0.34 and $0.54.

The company's CEO, Jim Scholhamer, commented that the third quarter results were driven by broader equipment demand for AI infrastructure build-out and sustained domestic China market spending. He also emphasized the rationale for significant long-term investment in wafer fab equipment (WFE) and expressed confidence in the company's vertical integration capabilities and strategic manufacturing network to provide a competitive edge and increase share as demand expands.

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. The company is headquartered in Hayward, California.

For further details on the financial results and reconciliations from GAAP results to non-GAAP results, the complete press release can be found on the investor relations section of the company's website at www.uct.com. Today the company's shares have moved -1.5% to a price of $35.05. Check out the company's full 8-K submission here.

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