The following is a summary of the Ultra Clean Holdings, Inc. (UCTT) Q4 2023 Earnings Call Transcript:
Financial Performance:
Ultra Clean Holdings reported Q4 2023 revenue of $444.8 million, up from $435 million in Q3.
The gross margin for Q4 increased to 16.7%; operating expense was $51.3 million, with a total operating margin of 5.2%.
Earnings per share for Q4 was $0.19 with a net income of $8.5 million.
Full-year revenue was $1.7 billion, down from $2.4 billion in 2022, with a gross margin of 16.6% and an operating margin of 4.9%.
The company repurchased 1.9 million shares at a cost of $29.4 million and generated nearly $136 million in cash flow from operations.
Business Progress:
Ultra Clean Holdings expanded and optimized its global footprint, by opening optimized manufacturing facilities in various locations including Arizona, the Czech Republic, and a new facility in Ireland.
The company acquired HIS Innovations Group in order to expand its global subfab market offerings.
Expansion of footprint in Malaysia to cater to future regional demand, intending to boost profitability.
Despite tepid current demand, the company indicates 2024 could show a stronger exit in line with improving market dynamics.
The company aims to continue introducing new solutions and expanding market presence, focusing particularly on litho space innovation in alignment with projected semiconductor sales of $1 trillion by end of the decade.
More details: Ultra Clean IR
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