Ultra Clean Reports Second Quarter 2012 Financial Results

HAYWARD, Calif., July 23, 2012 /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 ended June 29, 2012.

Revenue for the second quarter of 2012 was $101.9 million, a decrease of 7.8% from the first quarter of 2012 and a decrease of 23.8% from the same period a year ago. Semiconductor revenue was 86.1% of total revenue for the second quarter of 2012 compared to 85.1% in the previous quarter and revenue outside the U.S. accounted for 36.7% of the total revenue for the second quarter of 2012 compared to 32.2% for the previous quarter. Gross margin for the second quarter of 2012 was 14.0%, compared to 14.2% for the previous quarter and 14.2% for the same period a year ago.

The Company recorded net income of $3.9 million, or $0.17 per share in the second quarter of 2012 compared to net income of $4.7 million, or $0.20 per share in the previous quarter, and net income of $7.0 million, or $0.30 per share for the same period a year ago. The company's tax rate for the second quarter of 2012 was 20.0%.

Cash at the end of the second quarter of 2012 was $51.1 million, a decrease of $3.6 million from the previous quarter after paying off our line of credit balance of $19.5 million. Net liquidity was $47.5 million, an increase of $16.5 million from the prior quarter.

Clarence Granger, Ultra Clean's Chairman and Chief Executive Officer stated: "I am pleased with UCT's operating performance in the second quarter. Our continued focus on operational improvement and inventory management resulted in a decrease in inventory of $16.5 million which helped contribute to the highest net liquidity in the history of UCT. Also, on July 3, we announced that UCT completed the merger with Advanced Integration Technologies, which we believe significantly strengthens the value proposition for customers in all of our markets."

Commenting on Ultra Clean's corporate guidance, Granger noted: "With the combination of Advanced Integration Technologies we expect revenue for the third quarter of 2012 to range between $107 million to $112 million, with earnings per share in the range of $0.10 to $0.14. We are forecasting a tax rate of 32% for the third quarter and a tax rate of 28% for the year."

Ultra Clean will conduct a conference call today, Monday, July 23, beginning at 1:45 p.m. PDT at 866-297-2991 (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 98323838 (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," "projection," "forecast," "believes," "plan," "expect," "future,"' "intends," "may," "will," "should," "estimates," "predicts," and similar expressions to identify these forward-looking statements. Forward looking statements included in this press release include our expectations with respect to third quarter 2012 revenue and earnings per share and our forecasted tax rate for the third quarter of fiscal 2012 and the full fiscal year 2012. 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 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 30, 2011 and our quarterly report on Form 10-Q for the quarter ended March 30, 2012 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 Income

(Unaudited; in thousands, except per share data)

For the three months ended

For the six months ended

June 29, 2012

July 1, 2011

June 29, 2012

July 1, 2011

Sales

$ 101,949

$ 133,741

$ 212,514

$ 260,460

Cost of goods sold

87,695

114,748

182,600

223,915

Gross profit

14,254

18,993

29,914

36,545

Operating expenses:

Research and development

1,288

1,437

2,694

3,042

Sales and marketing

1,666

2,018

3,410

4,075

General and administrative

6,384

6,045

12,627

11,748

Total operating expenses

9,338

9,500

18,731

18,865

Income from operations

4,916

9,493

11,183

17,680

Interest and other income (expense), net

(14)

(367)

(119)

(735)

Income before income taxes

4,902

9,126

11,064

16,945

Income tax provision

979

2,168

2,481

4,167

Net income

$ 3,923

$ 6,958

$ 8,583

$ 12,778

Net income per share:

Basic

$ 0.17

$ 0.31

$ 0.37

$ 0.57

Diluted

$ 0.17

$ 0.30

$ 0.36

$ 0.54

Shares used in computing net income per share:

Basic

23,292

22,734

23,289

22,597

Diluted

23,710

23,482

23,893

23,528

Ultra Clean Holdings, Inc

Condensed Consolidated Balance Sheets

(Unaudited; in thousands)

June 29,

December 30,

ASSETS

2012

2011

Current assets:

Cash and cash equivalents

$ 51,137

$ 52,155

Accounts receivable

41,942

41,051

Inventory

44,451

55,473

Other current assets

6,364

5,441

Total current assets

143,894

154,120

Equipment and leasehold improvements, net

8,762

10,009

Purchased intangibles, net

8,987

8,987

Other non-current assets

5,177

5,183

Total assets

$ 166,820

$ 178,299

LIABILITIES & STOCKHOLDERS' EQUITY

Current liabilities:

Bank borrowings

$ 2,736

$ 2,931

Accounts payable

25,797

29,451

Other current liabilities

7,083

4,360

Total current liabilities

35,616

36,742

Bank debt and other long-term liabilities

2,928

24,272

Total liabilities

38,544

61,014

Stockholders' equity

Common stock

108,032

105,501

Accumulated other comprehensive loss

(123)

-

Retained earnings

20,367

11,784

Total stockholders' equity

128,276

117,285

Total liabilities and stockholders' equity

$ 166,820

$ 178,299

SOURCE Ultra Clean Holdings, Inc.