#USA #Hayward #Q1 2025 #Ultra Clean Holdings #Nasdaq UCTT

Ultra Clean Holdings Reports First Quarter 2025 Financial Results

On April 28, 2025, Ultra Clean Holdings, Inc. (Nasdaq: UCTT) disclosed its financial outcomes for the quarter that ended on March 28, 2025. The report highlighted the impacts of a slowing demand as businesses reassess spending in light of market uncertainties.

Performance Overview

Clarence Granger, the interim CEO of UCT, noted that the company witnessed a dip in demand toward the end of the quarter and emphasized the importance of maintaining focus on efficient execution and customer satisfaction amidst these challenges. In the first quarter of 2025, UCT reported total revenues of $518.6 million. Of that, the product segment accounted for $457.0 million, while service segments contributed $61.6 million.

When analyzing the margins, the gross margin stood at 16.2% and the operating margin was 2.5%, culminating in a net loss of $0.5 million, translating to $0.11 per diluted share. This represents a noteworthy decline compared to the total revenue of $563.3 million, with a gross margin of 16.3%, and an operating margin of 4.6% recorded in the preceding quarter. Last quarter, UCT achieved a net income of $16.3 million, equating to $0.36 per diluted share.

Non-GAAP Financial Results

In addition to GAAP performance metrics, UCT also provided insights into its non-GAAP results. Gross margin on a non-GAAP basis measured 16.7%, with an operating margin of 5.2%, reflecting a net income of $12.7 million or $0.28 per diluted share. Compared to the previous quarter, where the non-GAAP gross margin was 16.8%, these results indicate the significant challenges facing the company in the current environment.

Future Guidance

Looking ahead to the second quarter of 2025, the company anticipates revenue in the range of $475 million to $525 million. The projected diluted net loss per share on a GAAP basis is expected to range from $0.06 to $0.26, while the anticipated non-GAAP diluted net income is forecasted to be between $0.17 and $0.37.

Conference Call Details

Ultra Clean will hold a conference call at 1:45 PM PT, which interested parties can attend by dialing 1-800-836-8184 or 1-646-357-8785 (no passcode required). A recorded version of the call will be available by calling 1-888-660-6345 or 1-646-517-4150 and entering confirmation code 84790#. Additionally, the call will be streamed on their Investor Relations webpage at uct.com/investors/events/.

About Ultra Clean Holdings, Inc.

Ultra Clean Holdings is a prominent provider of essential subsystems, components, parts, and ultra-high purity cleaning and analytical services, primarily catering to the semiconductor industry. With its headquarters in Hayward, California, UCT delivers integrated outsourcing solutions in areas such as subassemblies and high-precision manufacturing.

The financial results reported are part of a broader communication strategy aimed at keeping investors informed about the company's standing and operational nuances amid a volatile market.

Non-GAAP Measure Clarification

Moreover, UCT provided insights into its use of non-GAAP measures in assessing its performance. The management believes that such metrics provide useful insights to investors for a clearer understanding of core business operations and trends, though these should not be viewed as a substitute for GAAP results.

The company has affirmed its commitment to transparency and clarity, ensuring stakeholders are well-informed as it navigates these challenging times.