EX-99.1 2 dp08708_ex9901.htm
Exhibit 99.1
 
Press Release
Source: Ultra Clean Holdings, Inc.

Ultra Clean Reports Fourth Quarter Results in Line with Guidance
Tuesday, February 19, 2008 4:30 pm ET

Industry Demand Softens: Ultra Clean Gains Orders in Two New Markets
MENLO PARK, Calif., February 19, 2008 /PRNewswire/ -- Ultra Clean Holdings, Inc. (Nasdaq: UCTT), a leading developer and supplier of critical subsystems for the semiconductor capital equipment, flat panel, solar and medical device industries, today reported its financial results for the fourth quarter ended on December 28, 2007.  Revenues for the fourth quarter of 2007 were $92.8 million, compared to revenues of $95.5 million in the third quarter of 2007, a decrease of 2.9%, and compared to revenues of $107.5 million for the same period a year ago, a 13.7% decrease.  The company recorded net income of $2.3 million, or $0.10 per diluted share, during the fourth quarter of 2007, compared to $3.5 million or $0.16 per diluted share, for the third quarter of 2007 and net income of $4.7 million, or $0.22 per diluted share, for the same period a year ago.  Gross margin for the fourth quarter of 2007 was 12.7%, compared to 14.0% for the third quarter of 2007, and 15.3% for the same period a year ago.

Clarence Granger, Ultra Clean’s Chairman and Chief Executive Officer commented:  “Our results reflect very challenging industry conditions.  Though industry demand was down, increased year-end rescheduling actions by our customers resulted in inefficiencies which drove higher operating costs.    While we hit our guidance range for both revenue and earnings per share, and generated $11.2 million in cash, we look to significantly improve our performance in the short term.”

Cash at the end of the fourth quarter of 2007 was $33.4 million, an increase of $5.4 million from $28.0 million at the end of the third quarter of 2007, and an increase of $10.1 million from $23.3 million at the end of the fourth quarter of 2006.  Third party debt at the end of the fourth quarter was $22.2 million, a decrease of $5.8 million from $28.0 million at the end of the third quarter of 2007 and a decrease of $9.4 million from $31.6 million at the end of the fourth quarter of 2006.

Granger continued, “I am pleased to announce two new product orders from recently added customers.  One is for a sub-system which brings new functionality to a medical device assembly which we currently produce.  The other is our first non-gas delivery process module for a customer who previously had purchased only gas-delivery equipment.  These wins reflect further success toward our stated objective to grow faster than the semiconductor capital equipment industry by capturing a significant share of the expanding outsourced equipment market.”

Commenting on Ultra Clean’s corporate outlook, Granger noted, “While we remain very confident in our strategic direction and our long term ability to grow faster than the industry, we remain cautious about the near term outlook, due to uncertain market conditions.  We expect that revenue for the first quarter of 2008 will range between $90 million and $97 million, and net income per share to range between $0.08 and $0.14 per share, inclusive of an expected $0.01 per share charge for amortization of intangibles and $0.04 per share charge related to SFAS 123(R).
 
 
About Ultra Clean Holdings, Inc.
 
Ultra Clean Holdings, Inc. is a developer and supplier of critical subsystems for the semiconductor capital equipment, flat panel, solar and medical device 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 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 fourth 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 annual report on Form 10-K for the year ended December 29, 2006 and quarterly report on Form 10-Q for the quarter ended September 28, 2007 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
  
                         
   
Three months ended   
    
Twelve months ended   
  
   
December 28,
    
December 29,
    
December 28,
    
December 29,
  
   
2007
    
2006
    
2007
    
2006
  
                         
Sales
   $
92,758
     $
107,499
     $
403,807
     $
337,228
  
                                 
Cost of goods sold
    
80,944
      
91,085
      
346,050
      
286,542
  
                                 
Gross profit
    
11,814
      
16,414
      
57,757
      
50,686
  
                                 
Operating expenses:
                                
Research and development
    
710
      
914
      
2,985
      
3,051
  
Sales and marketing
    
1,661
      
1,333
      
5,914
      
4,644
  
General and administrative
    
6,612
      
5,846
      
25,091
      
17,657
  
Total operating expenses
    
8,983
      
8,093
      
33,990
      
25,352
  
                                 
Income from operations
    
2,831
      
8,321
      
23,767
      
25,334
  
                                 
Interest and other income (expense), net
     (347 )     (619 )     (1,797 )     (1,758 )
                                 
Income  before income tax provision
    
2,484
      
7,702
      
21,970
      
23,576
  
                                 
Income tax provision
    
223
      
3,040
      
5,887
      
7,266
  
                                 
Net income
   $
2,261
     $
4,662
     $
16,083
     $
16,310
  
                                 
Net income per share:
                                
Basic
   $
0.11
     $
0.22
     $
0.75
     $
0.85
  
Diluted
   $
0.10
     $
0.22
     $
0.73
     $
0.83
  
                                 
Shares used in computing net income per share:
                          
Basic
    
21,510
      
20,941
      
21,317
      
19,220
  
Diluted
    
22,225
      
21,624
      
22,118
      
19,649
  
                                 
 
 
 
 
 
Ultra Clean Holdings, Inc
  
Condensed Consolidated Balance Sheets
  
             
             
   
December 28,
    
December 29,
  
   
2007
    
2006
  
             
ASSETS
            
Current assets:
            
   Cash and cash equivalents
   $
33,447
     $
23,321
  
   Accounts receivable
    
34,846
      
44,543
  
   Inventory
    
49,646
      
47,914
  
   Other current assets
    
6,552
      
5,489
  
      Total current assets
    
124,491
      
121,267
  
                 
Equipment and leasehold improvements, net
    
14,094
      
9,433
  
Goodwill
    
34,248
      
33,490
  
Other intangible assets
    
20,762
      
22,112
  
Other non-current assets
    
4,389
      
745
  
Total assets
   $
197,984
     $
187,047
  
                 
LIABILITIES & STOCKHOLDERS' EQUITY
                
Current liabilities
                
Bank borrowings
   $
3,575
     $
4,206
  
Accounts payable
    
36,826
      
37,583
  
Other current liabilities
    
4,478
      
7,891
  
      Total current liabilities
    
44,879
      
49,680
  
                 
Bank debt and other long-term liabilities
    
23,511
      
30,199
  
      Total liabilities
    
68,390
      
79,879
  
                 
Stockholders' equity
                
Common stock
    
89,008
      
82,046
  
Retained earnings
    
40,586
      
25,122
  
Total stockholders' equity
    
129,594
      
107,168
  
Total liabilities and stockholders' equity
   $
197,984
     $
187,047