02.06.06
ULTRA CLEAN HOLDINGS REPORTS 41% SEQUENTIAL
REVENUE GROWTH IN FOURTH QUARTER
Record Quarter for Shanghai Product Sales and Non-Gas Panel Revenue
MENLO PARK, CA, February 6, 2006 /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 fourth quarter and the full year ended December 31, 2005. Revenue
for the fourth quarter of 2005 totaled $38.8 million, compared to revenue
for the third quarter ended September 30, 2005 of $27.5 million, an increase
of 40.8%, and compared to revenue of $41.3 million for the same period
a year ago, a 6.2% decline. The company recorded net income of $686,000,
or $0.04 per share during the fourth quarter of 2005, compared to a net
loss of $566,000, or $0.03 per share for the third quarter of 2005 and
net income of $2.1 million, or $0.13 per share for the same period a
year ago. Gross margin for the fourth quarter of 2005 was 13.6% versus
9.3% for the third quarter of 2005 and 15.5% for the same period a year
ago.
Net income reflects a $480,000 after tax charge for costs related to
legal, accounting and consulting fees incurred in connection with Ultra
Clean’s evaluation of a potential acquisition for which negotiations
were terminated during the fourth quarter of fiscal 2005. This charge
reduced earnings per share by $0.03.
Revenue for the fiscal year 2005 was $147.5 million, down $36.7 million
or 19.9% compared to revenue of $184.2 million for fiscal year 2004. Net
income for the fiscal year 2005 was $2.0 million or $0.12 per share compared
with the fiscal year 2004 net income of $8.6 million or $0.55 per share.
Cash at the end of the fourth quarter of 2005 was $10.7 million, a decrease
of $3.4 million from $14.1 million at the end of the third quarter of
2005, and a decrease of $700,000 from $11.4 million at the end of the
fourth quarter of 2004.
Clarence Granger, UCT’s President and Chief Executive Officer,
commented on the fourth quarter results: "We are very pleased with
UCT’s performance during the fourth quarter. The Company exceeded
guidance with respect to revenues, and earnings per share was at the
high end of the guidance range, despite the $0.03 per share charge associated
with the termination of negotiations on a potential acquisition. As
importantly, we made significant progress during the fourth quarter on
our two main strategic initiatives."
Granger continued: "During the fourth quarter, we increased revenue
from products other than gas panel subsystems (including process modules,
top plate and frame assemblies, and chemical delivery systems)
to $4.4 million or 11% of total revenue, from $2.4 million or 9% of total
revenue in the quarter ending September 30, 2005. We also increased
revenue from products manufactured at our Shanghai facility to $4.7 million
or 12% of total revenue, from $1.7 million or 6% of revenue in the prior
quarter. In both cases, we achieved the strategic objectives we
set for ourselves at the beginning of last year."
Commenting on UCT’s corporate outlook, Granger noted,
"We expect revenue for the first quarter of 2006 to increase to
between $47 million and $51 million, and net income per share to increase
to between $0.10 and $0.14 per share, inclusive of an expected $0.01
per share charge associated with the implementation of SFAS 123(R). We
are well positioned to benefit from the current upturn in the broader
semiconductor capital equipment industry and from the continued trend
toward outsourcing on the part of our OEM customers."
Ultra Clean will conduct a conference call on Monday, February 6, 2006,
beginning at 2:00 p.m. PDT at 888/882-0144 (domestic) and 415/908-6251
(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 21282733 (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 a complete 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.
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
and purchase orders placed by a significant customer for the manufacture
of entire process modules. 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
31, 2004 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.
