EX-99.1 3 dp14334_ex9901.htm EXHIBIT 99.1
 
Exhibit 99.1
 
Press Release
Source: Ultra Clean Holdings, Inc.

Ultra Clean Reports Q2 ’09 Financial Results
Monday, August 3, 2009 4:30 pm EDT

Results in Line with Guidance as Industry Forecast Improves

HAYWARD, Calif., August 3, 2009 /PRNewswire/ -- Ultra Clean Holdings, Inc. (Nasdaq: UCTT), a leading developer and supplier of critical subsystems for the semiconductor capital equipment, medical device, research, flat panel and solar industries, today reported its financial results for the second quarter of 2009 ended July 3, 2009.  Revenue for the second quarter of 2009 was $23.3 million, an increase of 4% from the first quarter of 2009 and a decrease of 66% from the same period a year ago.  Gross margin (loss) for the second quarter of 2009 was (4%), compared to (13%) for the first quarter of 2009, and 11% for the same period a year ago.

On a GAAP basis, the company recorded a net loss of ($14.1) million or ($0.66) per share compared to a net loss of ($7.0) million or ($0.33) per share, for the first quarter of 2009 and net loss of ($0.2) million, or ($0.01) per share, for the same period a year ago. The second quarter 2009 net loss per share is inclusive of a non-cash income tax valuation allowance of $10.0 million or $0.47 per share. The non-GAAP net loss was ($4.1) million or ($0.19) per share during the second quarter of 2009.

Clarence Granger, Ultra Clean’s Chairman and Chief Executive Officer commented:   “We exceeded the mid-range of our second quarter revenue and EPS guidance on a non-GAAP basis in what continued to be a challenging economic environment.”

Cash at the end of the second quarter of 2009 was $30.2 million, an increase of $0.4 million from $29.8 million at the end of the first quarter of 2009. Third party debt at the end of the second quarter was $16.1 million, a decrease of $1.2 million from $17.3 million at the end of the first quarter of 2009.  Net cash at the end of the second quarter of 2009 increased $1.6 million to $14.1 from $12.5 reported at the end of the first quarter.

Commenting on Ultra Clean’s financial condition and corporate outlook, Granger noted, “During these turbulent times, we are steadfast in our commitment to maintain a strong balance sheet and focus on cash flow.   While we remain cautious about the long-term outlook, we are seeing an improvement in business conditions during the second half of 2009.  Revenue for the third quarter of 2009 will be in the range of $30 million to $36 million, and loss per share will be in the range of $(0.09) to $(0.17), on a non-GAAP basis.  On a GAAP basis, loss per share will be in the range of $(0.16) to $(0.24) including the tax valuation allowance.”
 
 
About Ultra Clean Holdings, Inc.
 
Ultra Clean Holdings, Inc. is a leading developer and supplier of critical subsystems for the semiconductor capital equipment, medical device, research, flat panel and solar 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 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," "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 2009 revenue and loss 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 January 2, 2009 and quarterly report on Form 10-Q for the quarter ended April 3, 2009, 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 Operations
(Unaudited; in thousands, except per share data)
 


   
For the three months ended
    
For the six months ended
  
   
July 3, 2009
    
June 27, 2008
    
July 3, 2009
    
June 27, 2008
  
                                 
Sales
   $ 23,252     $ 67,364     $ 45,652     $ 159,721  
                                 
Cost of goods sold
     24,106       59,842       49,376       140,139  
                                 
Gross profit (loss)
     (854 )     7,522       (3,724 )     19,582  
                                 
Operating expenses:
                                
Research and development
     748       606       1,664       1,391  
Sales and marketing
     1,165       1,327       2,195       2,960  
General and administrative
     3,517       6,252       8,859       12,882  
        Total operating expenses
     5,430       8,185       12,718       17,233  
                                 
Income (loss) from operations
     (6,284 )     (663 )     (16,442 )     2,349  
                                 
Interest and other income (expense), net
     (228 )     (246 )     (423 )     (590 )
                                 
Income (loss) before income taxes
     (6,512 )     (909 )     (16,865 )     1,759  
                                 
Income tax provision (benefit)
     7,551       (747 )     4,238       32  
                                 
Net income (loss)
   $ (14,063 )   $ (162 )   $ (21,103 )   $ 1,727  
                                 
Net income (loss) per share:
                                
Basic
   $ (0.66 )   $ (0.01 )   $ (0.99 )   $ 0.08  
Diluted
   $ (0.66 )   $ (0.01 )   $ (0.99 )   $ 0.08  
                                 
Shares used in computing
net income (loss) per share:
                                
Basic
     21,379       21,643       21,341       21,604  
Diluted
     21,379       21,643       21,341       22,126  



 
 
 


Ultra Clean Holdings, Inc
Condensed Consolidated Balance Sheets
(Unaudited; in thousands)

             
   
July 3,
    
January 2,
  
ASSETS
  
2009
    
2009
  
             
Current assets:
            
   Cash and cash equivalents
   $ 30,200     $ 29,620  
   Accounts receivable
     10,326       13,790  
   Inventory
     32,022       39,814  
   Other current assets
     5,056       11,268  
      Total current assets
     77,604       94,492  
                 
Equipment and leasehold improvements, net
     7,812       8,954  
Purchased intangibles, net
     8,987       8,987  
Other non-current assets
     306       4,978  
Total assets
   $ 94,709     $ 117,411  
                 
LIABILITIES & STOCKHOLDERS' EQUITY
                
Current liabilities
                
Bank borrowings
   $ 1,971     $ 5,736  
Accounts payable
     11,192       11,275  
Other current liabilities
     3,955       4,284  
      Total current liabilities
     17,118       21,295  
                 
Bank debt and other long-term liabilities
     18,685       17,717  
      Total liabilities
     35,803       39,012  
                 
Stockholders' equity
                
Common stock
     92,030       90,420  
Accumulated deficit
     (33,124 )     (12,021 )
Total stockholders' equity
     58,906       78,399  
Total liabilities and stockholders' equity
   $ 94,709     $ 117,411  


 
 
 


Ultra Clean Holding, Inc.
Financial Bridge
August 3, 2009 Press Release

   
Net Charge
    
EPS Impact
  
   
July 3,
    
July 3,
  
Reconciliation of GAAP Net Loss to Non-GAAP Net Loss
  
2009
    
2009
  
GAAP net loss
   $ (14,063 )   $ (0.66 )
   Tax valuation allowance
     7,551       0.35  
   Tax benefit
     2,421       0.12  
Non-GAAP net loss
   $ (4,091 )   $ (0.19 )
                 
Diluted shares used in computing net loss per share
             21,379  
                 
                 
   
Net Charge
    
EPS Impact
  
   
July 3,
    
July 3,
  
GAAP Net Loss on a Cash Basis
  
2009
    
2009
  
Net loss
   $ (14,063 )   $ (0.66 )
Adjustments to reconcile net loss to net cash:
                
Depreciation and amortization
     646       0.03  
Stock-based compensation
     775       0.04  
Adjusted income on a cash basis
   $ (12,642 )   $ (0.59 )
                 
Diluted shares used in computing net loss per share
             21,379