EX-99.1 2 dp06337e_ex9901.htm Unassociated Document
Exhibit 99.1
 
Press Release
Source: Ultra Clean Holdings, Inc.

Ultra Clean Technology Reports Second Quarter Revenue and Earnings in Line with Guidance
Monday, July 23, 2007 4:30 pm ET

UCT Also Announces Two Major New Product Awards
MENLO PARK, Calif., July 23, 2007 /PRNewswire/ -- Ultra Clean Holdings, Inc. (Nasdaq: UCTT), a leading developer and supplier of critical subsystems for the semiconductor capital equipment industry, today reported its financial results for the second quarter ended June 29, 2007.  Revenue for the second quarter of 2007 totaled $104.7 million, compared to $110.8 million in the first quarter ended March 30, 2007, a decrease of 6%, and compared to revenue of $68.5 million for the same period a year ago, a 53% increase, 31 percentage points of which was due to the acquisition of Sieger Engineering, Inc.  The company recorded net income of $5.1 million, or $0.23 per diluted share, during the second quarter of 2007, compared to $5.2 million or $0.24 per diluted share, for the first quarter of 2007 and net income of $4.0 million, or $0.21 per diluted share, for the same period a year ago.  Gross margin for the second quarter of 2007 was 15.1%, compared to 15.1% for the first quarter of 2007, and 15.6% for the same period a year ago.

Clarence Granger, UCT’s Chairman and Chief Executive Officer commented:  “We are pleased with the company’s operating performance in the second quarter.  We hit the middle of our guidance range for both revenue and earnings per share, in a moderately declining market.  We continued to execute on the new product awards announced in our first quarter 2007 earnings call, and we received two significant new awards in the second quarter of 2007.  Our new awards consist of a cleaner module award estimated to generate $15-$20 million in incremental annual revenue, and a next generation strip module award expected to generate $10-$15 million in annual revenue.  Volume production for both of these products is targeted for early 2008.”

Granger added, “In addition to capturing new product awards from our existing EOM customers, we also increased revenue out of our Shanghai China facility by 22% during the second quarter.  We are confident in the continued growth of our Asian operation.”
 
Commenting on UCT’s corporate outlook, Granger noted, “We expect that revenue for the third quarter of 2007 will range between $95 million and $103 million, and net income per share to range between $0.16 and $0.22 per share, inclusive of an expected $0.01 per share charge for amortization of intangibles and $0.03 per share charge related to SFAS 123(R).  This projection reflects the expectation of a moderate sequential decline in industry demand in the third quarter of 2007.  We remain confident in our strategic direction and our long term ability to grow faster than the industry.”
 
Ultra Clean will conduct a conference call on Monday, July 23, 2007, beginning at 2:00 p.m. PDT at 800-952-6697 (domestic) and 212-231-2900 (international). A replay of the webcast will be available for fourteen days following the conference call at 800/633-8284 (domestic) and 402/977-9140 (international). The confirmation number for the live broadcast and replays is 21342392 (all callers). The conference call will also be webcast live and be available for fourteen days on our website.
 
 
Ultra Clean Holdings, Inc. is a developer and supplier of critical subsystems for the semiconductor capital equipment industry.  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 of semiconductor capital equipment. Ultra Clean is headquartered in Menlo Park, 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 U.S. 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 revenue and diluted 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 quarterly report on Form 10-Q for the quarter ended March 30, 2007 and annual report on Form 10-K for the year ended December 31, 2006 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 Income Statements

   
For the three months ended
   
For the six months ended
 
   
June 29, 2007
   
June 30, 2006
   
June 29, 2007
   
June 30, 2006
 
                                 
Sales
  $
104,722
    $
68,469
    $
215,514
    $
125,664
 
                                 
Cost of goods sold
   
88,906
     
57,759
     
182,941
     
106,763
 
                                 
Gross profit
   
15,816
     
10,710
     
32,573
     
18,901
 
                                 
Operating expenses:
                               
Research and development
   
785
     
733
     
1,627
     
1,331
 
Sales and marketing
   
1,336
     
1,124
     
2,759
     
2,080
 
General and administrative
   
6,182
     
3,638
     
12,779
     
6,527
 
Total operating expenses
   
8,303
     
5,495
     
17,165
     
9,938
 
                                 
Income from operations
   
7,513
     
5,215
     
15,408
     
8,963
 
                                 
Interest and other income (expense), net
    (459 )     (36 )     (990 )     (523 )
                                 
Income before income taxes
   
7,054
     
5,179
     
14,418
     
8,440
 
                                 
Income tax provision
   
1,958
     
1,222
     
4,137
     
2,352
 
                                 
Net income
  $
5,096
    $
3,957
    $
10,281
    $
6,088
 
                                 
Net income per share:
                               
Basic
  $
0.24
    $
0.22
    $
0.49
    $
0.35
 
Diluted
  $
0.23
    $
0.21
    $
0.47
    $
0.33
 
                                 
Shares used in computing
                               
net income per share:
                               
Basic
   
21,229
     
18,250
     
21,178
     
17,566
 
Diluted
   
22,068
     
19,168
     
22,032
     
18,502
 






 
             
Ultra Clean Holdings, Inc
 
Condensed Consolidated Balance Sheets
 
             
             
   
June 29, 2007
   
December 29, 2006 
ASSETS
             
Current assets:
             
   Cash
  $
19,942
    $
23,321
 
   Accounts receivable
   
49,844
     
44,543
 
   Inventory
   
48,361
     
47,914
 
   Other current assets
   
5,527
     
5,489
 
      Total current assets
   
123,674
     
121,267
 
                 
Equipment and leasehold improvements, net
   
11,064
     
9,433
 
Goodwill
   
34,248
     
33,490
 
Tradename
   
21,437
     
22,112
 
Other non-current assets
   
757
     
745
 
Total assets
  $
191,180
    $
187,047
 
                 
LIABILITIES & STOCKHOLDERS' EQUITY
               
Current liabilities:
               
   Bank borrowings
  $
3,335
    $
4,206
 
   Accounts payable
   
32,979
     
37,583
 
   Other current liabilities
   
6,207
     
7,891
 
      Total current liabilities
   
42,521
     
49,680
 
                 
Long-term debt and other liabilities
   
28,904
     
30,199
 
      Total liabilities
   
71,425
     
79,879
 
                 
Commitments and contingencies
               
Stockholders' equity:
               
   Common stock
   
85,362
     
82,198
 
   Deferred stock-based compensation
    (391 )     (152 )
   Retained earnings
   
34,784
     
25,122
 
   Total stockholders' equity
   
119,755
     
107,168
 
Total liabilities and stockholders' equity
  $
191,180
    $
187,047