Ultra Clean Reports Fourth Quarter and Fiscal Year 2012 Financial Results

  Ultra Clean Reports Fourth Quarter and Fiscal Year 2012 Financial Results

Results in line with updated guidance as industry outlook improves

PR Newswire

HAYWARD, Calif., Feb. 19, 2013

HAYWARD, Calif., Feb. 19, 2013 /PRNewswire/ --Ultra Clean Holdings, Inc.
(Nasdaq: UCTT), a leading developer and supplier of critical systems and
subsystems for the semiconductor capital equipment, flat panel, medical,
energy and research industries, today reported its financial results for the
fourth quarter ended December 28, 2012.

Revenue for the fourth quarter of 2012 was $90.1 million, a decrease of 10.7%
compared to the third quarter of 2012 and an increase of 3.7% compared to the
same period a year ago. Semiconductor revenue was 85% of total revenue for
the fourth quarter and 86% for the third quarter of fiscal year 2012. Revenue
outside the U.S. accounted for 18% of total revenue for the fourth quarter of
2012 compared to 25% for the previous quarter. Gross margin for the fourth
quarter of 2012 was 12.8%, compared to 14.2% for the previous quarter and
11.0% for the same period a year ago.

The Company recorded a net loss of $1.7 million, or $(0.06) per share in the
fourth quarter of 2012 compared to a net loss of $1.7 million, or $(0.06) per
share in the previous quarter and net income of $7.8 million, or $0.34 per
share for the same period a year ago. The net loss for the fourth quarter of
2012 includes pre-tax charges of $2.0 million for amortization and other costs
associated with the AIT transaction. Excluding these charges the Company would
have reported earnings of $0.00 per share. The company's tax rate for the
fourth quarter of 2012 was 18.7%. Net income in the fourth quarter of 2011
includes the tax benefit of $6.4 million, or $0.28 per share resulting from
the reversal of a valuation allowance on the Company's deferred tax assets.

The financial information presented for the fiscal year 2012 includes two full
quarters of operations of Advanced Integration Technologies ("AIT"), which
Ultra Clean merged with on July 3, 2012.

For fiscal year 2012 revenue was $403.4 million, a decrease of $49.2 million,
or 10.9%, over fiscal year 2011. Gross margin for fiscal year 2012 was 13.8%
compared to 13.0% for fiscal year 2011. The company recorded net income of
$5.2 million, or $0.20 per share for fiscal year 2012 compared to net income
of $23.7 million, or $1.01 per share, for fiscal year 2011. Net income for
fiscal year 2012 includes pretax charges of $3.8 million for amortization and
$2.8 million of one-time transaction costs, each associated with the AIT
transaction. Excluding these charges the Company would have reported net
income of $10.2 million, or $0.39 per share for fiscal year 2012. The
company's tax rate for the fiscal year 2012 was 23.1%. Net income for fiscal
year 2011 includes the tax benefit of $6.4 million, or $0.28 per share
resulting from the reversal of a valuation allowance.

Cash at the end of the fourth quarter of fiscal year 2012 was $54.3 million, a
decrease of $4.0 million from the previous quarter. Outstanding debt on our
new bank facility, which was used to finance the AIT transaction, was $75.6
million at the end of the fourth quarter of fiscal year 2012.

Clarence Granger, Ultra Clean's Chairman and Chief Executive Officer, stated:
"The second half of 2012 has been a challenging, yet exciting time for UCT. In
July, we acquired Advanced Integration Technologies (AIT) and since then have
made significant progress with its integration into UCT. And, although we
experienced a slowdown in the semiconductor industry during that period of
time, we believe business conditions are improving as we move into fiscal year
2013."

Commenting on Ultra Clean's corporate guidance, Granger noted: "We expect
revenue for the first quarter of 2013 to range between $96 million to $101
million, with earnings (loss) per share in the range of $(0.02) to $0.02.
Excluding amortization associated with the merger with AIT we expect earnings
per share to be in the range of $0.02 to $0.06. We are forecasting a tax rate
of 27% for the first quarter and a tax rate of 24% for the year."

Ultra Clean will conduct a conference call today, Tuesday, February 19,
beginning at 1:45 p.m. PDT at888-561-5097 (domestic) and 706-679-7569
(international). A replay of the webcast will be available for fourteen days
following the conference call at 855-859-2056 (domestic) and 404-537-3406
(international). The confirmation number for the live broadcast and replay is
90534693 (all callers). The conference call will also be webcast live and be
available for fourteen days on our website.

About Ultra Clean Holdings, Inc.

Ultra Clean Holdings, Inc. is a leading developer and supplier of critical
systems and subsystems for the semiconductor capital equipment, flat panel,
medical, energy and research 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, medical, energy and research 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,",
"projection", "forecast", "believes," "plan," "expect," "future,"' "intends,"
"may," "will," "estimates," "predicts," and similar expressions to identify
these forward-looking statements. Forward looking statements included in this
press release include our expectations with respect to first quarter 2013
revenue and earnings per share and our forecasted tax rate for the first
quarter of fiscal 2013 and the full fiscal year 2013 and our expectations with
respect to business conditions in fiscal year 2013. All forward-looking
statements address matters that involve risks and uncertainties. Accordingly,
the Company's actual results may differ materially from the results predicted
or implied by these forward- looking statements. These risks, uncertainties
and other factors also 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 30, 2011 and our quarterly report on Form 10-Q for the
quarter ended September 28, 2012 filed with the Securities and Exchange
Commission. Additional information will also be set forth in our Annual Report
on Form 10-K for the year ended December 28, 2012. 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 unless required by law.

Ultra Clean Holdings, Inc.
Condensed Consolidated Statements of Income
(Unaudited; in thousands, except per share data)
                       For the three months ended  For the twelve months
                                                    ended
                       December 28,   December 30,  December 28,  December 30,
                       2012           2011          2012          2011
Sales                  $          $         $           $   
                       90,067        86,873       403,430      452,639
Cost of goods sold     78,516         77,278        347,642       393,647
Gross profit          11,551         9,595         55,788        58,992
Operating expenses:
Research and           1,118          1,262         5,121         5,556
development
Sales and marketing    1,818          1,503         7,033         7,257
General and            10,026         5,274         35,289        22,633
administrative
 Total          12,962         8,039         47,443        35,446
operating expenses
Income (loss) from     (1,411)        1,556         8,345         23,546
operations
Interest and other     (716)          (96)          (1,648)       (1,106)
income (expense), net
Income (loss) before   (2,127)        1,460         6,697         22,440
income taxes
Income tax provision   (398)          (6,341)       1,544         (1,294)
(benefit)
Net income (loss)      $         $        $         $    
                       (1,729)        7,801        5,153        23,734
Net income (loss) per
share:
Basic                  $        $        $        $     
                       (0.06)          0.34       0.20          1.05
Diluted                $        $        $        $     
                       (0.06)          0.34       0.20          1.01
Shares used in
computing
net income (loss) per
share:
Basic                  27,854         22,850        25,698        22,689
Diluted                27,854         23,279        26,261        23,437



Ultra Clean Holdings, Inc.
Condensed Consolidated Balance Sheets
(Unaudited; in thousands)
                                     December 28,         December 30,
ASSETS                               2012                 2011
Current assets:
 Cash and cash equivalents         $      54,311  $      52,155
 Accounts receivable               50,074               41,051
 Inventory                         54,533               55,473
 Other current assets              6,769                5,441
 Total current assets           165,687              154,120
Equipment and leasehold              9,282                10,009
improvements, net
Goodwill                             56,662               -
Purchased intangibles, net           27,702               8,987
Other non-current assets             7,164                5,183
Total assets                         $     266,497   $     178,299
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Bank borrowings                      $      48,706  $       2,931
Accounts payable                     24,053               29,451
Other current liabilities            7,275                4,360
 Total current liabilities      80,034               36,742
Bank debt and other long-term        29,913               24,272
liabilities
 Total liabilities              109,947              61,014
Stockholders' equity:
Common stock                         139,843              105,501
Other comprehensive loss             (230)                -
Retained earnings                    16,937               11,784
 Total stockholders' equity      156,550              117,285
Total liabilities and stockholders'  $     266,497   $     178,299
equity



SOURCE Ultra Clean Holdings, Inc.

Website: http://www.uct.com
Contact: Casey Eichler, CFO, Ultra Clean Holdings, Inc., 510/576-4704
 
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