The following is a summary of the Ultra Clean Holdings, Inc. (UCTT) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Ultra Clean Holdings reported an increase in Q1 total revenue to $477.7 million from $444.8 million last quarter.

• Products revenue increased to $418.5 million, while services revenue marked $59.2 million in Q1.

• Total gross margin in Q1 climbed to 17.9%, up from 16.7% in the preceding quarter, even as operating expense stood at $54.5 million.

• Earnings per share improved to $0.27 on net income of $12.1 million, up from $0.19 on net income of $8.5 million in the prior quarter, due to favorable product mix and factory utilization.

Business Progress:

• Ultra Clean expanded its product business within the local China market and seized new demand for AI-supporting products.

• The company's 20-year-celebration of its Shanghai facility strengthens its position to support local customers' growth objectives.

• Ultra Clean's exceptional performance merited prestigious accolades like the Texas Instruments 2023 Supplier Excellence Award and Intel's 2024 EPIC Distinguished Supplier Award.

• Noteworthy growth was recorded in direct business from the Chinese factory to Chinese OEMs, with it doubling in recent quarters.

• Business growth was partly driven by demand in deposition, edge demand, high bandwidth memory, and advanced packaging—all supporting AI.

• Looking forward, Ultra Clean anticipates a broader-based recovery in 2025 and is active in streamlining and expanding capacity to accommodate anticipated technology shifts.

More details: Ultra Clean IR

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