Ichor Unveils Fourth Quarter Results and First Quarter Forecast

Ichor: A Snapshot of Financial Performance and Future Outlook

In a recent announcement, Ichor Holdings, Ltd. (NASDAQ: ICHR) revealed its preliminary financial results for the fourth quarter of 2024 and shared its promising outlook for the first quarter of 2025. As a leader in the design and manufacturing of critical fluid delivery subsystems for semiconductor capital equipment, Ichor continues to show resilience in a competitive landscape.

Positive Trends in Revenue and Demand

During the fourth quarter, Ichor observed an encouraging trend in customer demand, with revenues expected to reach approximately $233 million. This figure is not only at the high end of the company's guidance range, but it also marks over a 10% sequential increase compared to the third quarter of 2024. Jeff Andreson, Ichor’s CEO, expressed optimism regarding this growth, indicating that the company is ramping up resources to meet heightened customer expectations.

Challenges Affecting Gross Margin

While revenue growth is poised to be strong, Ichor anticipates some headwinds impacting gross margins. The projected gross margin for Q4 is expected to fall between 11% to 12% on a GAAP basis, alongside approximately 12% on a non-GAAP basis. These challenges stem mainly from increased direct manufacturing labor costs that were not fully absorbed, alongside higher inventory charges from year-end procedures. Andreson noted that much of the revenue increase is concentrated in the build-to-print gas panel integration business, which has further affected the product mix.

Forecast for the First Quarter of 2025

Looking ahead, Ichor's preliminary outlook for the first quarter of 2025 reflects revenues in the range of $235 to $250 million, signaling further growth. Executive leadership anticipates a gross margin return to a healthier range of 13% to 15% for both GAAP and non-GAAP measures. Moreover, there is an expectation of sequential growth in earnings per share compared to Q4 of 2024, enhancing the overall financial outlook.

Upcoming Conference Call

Ichor is scheduled to issue its earnings press release and will hold a conference call to discuss fourth quarter results shortly after 1:00 PM Pacific Time on February 4. This call presents an opportunity for stakeholders to gain direct insight into the company’s strategies and market positioning moving into 2025. Interested parties can access the live webcast through Ichor’s investor relations section on their official website.

About Ichor Holdings, Ltd.

Ichor focuses on designing, engineering, and manufacturing critical fluid delivery subsystems primarily for semiconductor capital equipment. Their product portfolio is crucial for various sectors, including defense, aerospace, and medical industries. Ichor's specialized gas and chemical delivery systems are key in manufacturing semiconductor devices, enabling precise control over essential processes. Clients benefit from Ichor's extensive capabilities, including precision machined components and advanced manufacturing techniques.

Frequently Asked Questions

What were Ichor's expected revenues for Q4 of 2024?

Ichor expects revenues for Q4 of 2024 to reach approximately $233 million, which is at the high end of their guidance range.

What is the forecast for Ichor's earnings per share in Q1 of 2025?

The company anticipates a sequential growth in earnings per share for Q1 of 2025 compared to Q4 of 2024.

How has customer demand influenced Ichor's financial outlook?

The increasing customer demand has led Ichor to bolster resources, positively impacting revenue expectations for both Q4 of 2024 and Q1 of 2025.

When will Ichor hold its earnings conference call?

The earnings conference call is scheduled for February 4, starting at 1:30 PM Pacific Time.

What are the key industries Ichor serves?

Ichor serves several industries, primarily focusing on semiconductor capital equipment, as well as defense and medical sectors through its fluid delivery subsystems.

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