Ultra Clean Holdings, Inc. Reports Decreased First Quarter Earnings

Ultra Clean Holdings, Inc. Financial Overview

Ultra Clean Holdings, Inc. (NASDAQ: UCTT) has recently published its financial results for the first quarter of the year. This report captures critical insights into the company's performance and the economic landscape influencing its operations.

First Quarter 2025 Earnings Results

The company's total revenue for this quarter reached $518.6 million, showing a slight decline from the previous quarter's $563.3 million. The products segment contributed $457.0 million, while the services segment added $61.6 million. The total gross margin stood at 16.2%, with an operating margin of 2.5% and a net loss of $(0.5) million which translates to $(0.11) per diluted share.

Comparative Performance

When compared to the previous quarter, Ultra Clean Holdings, Inc. displayed a gross margin decrease from 16.3% and an operating margin that fell from 4.6%. The net income during the last quarter was positive at $16.3 million or $0.36 per diluted share. In contrast, the current net loss reflects the company’s challenge in navigating the fluctuating demand and economic uncertainties.

Non-GAAP Financial Metrics

On a non-GAAP basis, Ultra Clean reported a gross margin of 16.7% and an operating margin of 5.2%. The net income for this quarter amounted to $12.7 million, or $0.28 per diluted share. This is significantly lower than the $22.9 million or $0.51 per diluted share reported in the previous quarter, highlighting a squeeze on profitability.

Outlook for the Second Quarter

For the upcoming second quarter, Ultra Clean Holdings, Inc. anticipates revenue to fall between $475 million to $525 million. It projects a GAAP diluted net loss per share ranging from $(0.06) to $(0.26). Meanwhile, on a non-GAAP basis, a diluted net income per share could range from $0.17 to $0.37.

Impact of Market Conditions

The interim CEO, Clarence Granger, commented on the ongoing volatility in market conditions that has affected company performance. The management is focusing on executing its operational strategies while maintaining cost control amidst a backdrop of reduced visibility in the industry.

Conference Call Details

Details of a scheduled conference call will provide more insights into the company’s strategies, which can be accessed via calling major telecommunication numbers, with no passcode required. Availability for a recording will follow soon after the live event.

About Ultra Clean Holdings, Inc.

Ultra Clean Holdings, Inc. specializes in the development and supply of essential subsystems, components, parts, and ultra-high purity cleaning and analytical services. Its primary clientele is within the semiconductor industry. The company prides itself on providing integrated outsourced solutions for complex subassemblies, enhancing delivery cycles, and advocating for high-quality precision in manufacturing. Its operational footprint centers on delivering significant value through manufacturing excellence.

Frequently Asked Questions

What were Ultra Clean's total revenues for the first quarter of 2025?

The total revenue for Ultra Clean in the first quarter of 2025 was $518.6 million.

How does the first quarter performance compare to the previous quarter?

The first quarter performance showed a decline in revenue from $563.3 million to $518.6 million, reflecting some challenges due to market volatility.

What financial outlook does Ultra Clean project for the second quarter?

For the second quarter, Ultra Clean expects revenue between $475 million and $525 million, with potential net losses projected.

What is the primary market focus of Ultra Clean Holdings, Inc.?

Ultra Clean focuses on the semiconductor industry, providing essential subsystems and cleaning services.

Who is the current CEO of Ultra Clean Holdings, Inc.?

The interim CEO of Ultra Clean Holdings, Inc. is Clarence Granger.

About The Author

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