Ultra Clean Holdings Reports Positive Financial Performance for 2024
On February 24, 2025, Ultra Clean Holdings, Inc. (NASDAQ: UCTT) disclosed its financial outcomes for the fourth quarter and the full year concluding on December 27, 2024. The figures reveal a strong upward trend, reinforcing the company's position in the semiconductor industry, significantly driven by advancements in technology, including artificial intelligence.
CEO Jim Scholhamer highlighted a notable 21% rise in total revenue over the previous year, which notably surpassed the overall market growth in the wafer fabrication equipment (WFE) sector. He credited Ultra Clean's unique capability to advance semiconductor innovations, emphasizing how this positions the company for enduring success in an ever-evolving technological landscape.
Sheri Savage, the CFO, further noted that the company’s robust cash flow this year has paved the way for strategic investments aimed at fostering long-term growth. She stated that Ultra Clean now boasts a global manufacturing capacity aligned with a revenue target of $4 billion.
In the fourth quarter of 2024, Ultra Clean reported total revenues of $563.3 million, comprising $503.5 million from products and $59.8 million from services, indicating strong demand across its offerings. The gross margin stood at 16.3%, while the operating margin was recorded at 4.6%, resulting in a net income of $16.3 million or $0.36 per diluted share. In comparison, the previous quarter saw lower revenues of $540.4 million, with a net loss of $(2.3) million or $(0.05) per diluted share, reflecting the volatility of market conditions.
When evaluated on a non-GAAP basis, the fourth quarter gross margin improved to 16.8%, with operating margins hitting 7.0%. The net income under this metric reached $22.9 million, translating to $0.51 per diluted share, an increase from $15.9 million or $0.35 per diluted share in the prior quarter.
For the full year, Ultra Clean registered total revenues of $2,097.6 million, with $1,853.7 million coming from products and $243.9 million from services. Notably, the gross margin improved to 17.0% with an operating margin of 4.3%, culminating in a net income of $23.7 million or $0.52 per diluted share. Comparatively, the year 2023 saw revenue at $1,734.5 million, characterized by a gross margin of 16.0% and a net loss of $(31.1) million.
On a non-GAAP basis, the annual figures showcased a gross margin of 17.5%, with operating margins at 6.9% and net income totaling $65.2 million, or $1.44 per diluted share.
Looking ahead, Ultra Clean foresees revenues in a spectrum between $505 million and $555 million for the first quarter of 2025. The expected GAAP diluted net income per share is projected to fluctuate between $(0.11) to $0.09 while the non-GAAP diluted net income per share is anticipated to land between $0.22 and $0.42.
The company will hold a conference call at 2:45 PM PT, accessible via dialing 1-800-836-8184 or 1-646-357-8785. A replay of the discussion will be available, and interested parties can also access a recording through the Investor Relations section of the Ultra Clean website.
Ultra Clean Holdings, Inc. stands as a premier developer and supplier of critical subsystems and ultra-high purity cleaning solutions primarily catered to the semiconductor industry. Through its comprehensive product offerings, the company aids customers with an integrated outsourced solution that enhances design efficiency, manufacturing precision, and delivery timelines. Headquartered in Hayward, California, Ultra Clean continues to prioritize fostering innovation within the semiconductor sector and remains committed to delivering best-in-class service to its clients.
CEO Jim Scholhamer highlighted a notable 21% rise in total revenue over the previous year, which notably surpassed the overall market growth in the wafer fabrication equipment (WFE) sector. He credited Ultra Clean's unique capability to advance semiconductor innovations, emphasizing how this positions the company for enduring success in an ever-evolving technological landscape.
Sheri Savage, the CFO, further noted that the company’s robust cash flow this year has paved the way for strategic investments aimed at fostering long-term growth. She stated that Ultra Clean now boasts a global manufacturing capacity aligned with a revenue target of $4 billion.
Fourth Quarter 2024 Financial Highlights
In the fourth quarter of 2024, Ultra Clean reported total revenues of $563.3 million, comprising $503.5 million from products and $59.8 million from services, indicating strong demand across its offerings. The gross margin stood at 16.3%, while the operating margin was recorded at 4.6%, resulting in a net income of $16.3 million or $0.36 per diluted share. In comparison, the previous quarter saw lower revenues of $540.4 million, with a net loss of $(2.3) million or $(0.05) per diluted share, reflecting the volatility of market conditions.
Non-GAAP Financial Performance
When evaluated on a non-GAAP basis, the fourth quarter gross margin improved to 16.8%, with operating margins hitting 7.0%. The net income under this metric reached $22.9 million, translating to $0.51 per diluted share, an increase from $15.9 million or $0.35 per diluted share in the prior quarter.
Yearly Overview for 2024
For the full year, Ultra Clean registered total revenues of $2,097.6 million, with $1,853.7 million coming from products and $243.9 million from services. Notably, the gross margin improved to 17.0% with an operating margin of 4.3%, culminating in a net income of $23.7 million or $0.52 per diluted share. Comparatively, the year 2023 saw revenue at $1,734.5 million, characterized by a gross margin of 16.0% and a net loss of $(31.1) million.
On a non-GAAP basis, the annual figures showcased a gross margin of 17.5%, with operating margins at 6.9% and net income totaling $65.2 million, or $1.44 per diluted share.
Outlook for Q1 2025
Looking ahead, Ultra Clean foresees revenues in a spectrum between $505 million and $555 million for the first quarter of 2025. The expected GAAP diluted net income per share is projected to fluctuate between $(0.11) to $0.09 while the non-GAAP diluted net income per share is anticipated to land between $0.22 and $0.42.
Conference Call
The company will hold a conference call at 2:45 PM PT, accessible via dialing 1-800-836-8184 or 1-646-357-8785. A replay of the discussion will be available, and interested parties can also access a recording through the Investor Relations section of the Ultra Clean website.
Company Background
Ultra Clean Holdings, Inc. stands as a premier developer and supplier of critical subsystems and ultra-high purity cleaning solutions primarily catered to the semiconductor industry. Through its comprehensive product offerings, the company aids customers with an integrated outsourced solution that enhances design efficiency, manufacturing precision, and delivery timelines. Headquartered in Hayward, California, Ultra Clean continues to prioritize fostering innovation within the semiconductor sector and remains committed to delivering best-in-class service to its clients.
Topics Business Technology）
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