In This Article:
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Total Revenue: $540.4 million, up from $516.1 million in the prior quarter.
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Products Revenue: $479 million, increased from $452.7 million last quarter.
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Services Revenue: $61.4 million, compared to $63.4 million in Q2.
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Total Gross Margin: 17.8%, slightly up from 17.7% last quarter.
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Products Gross Margin: 16.1%, compared to 15.6% in Q2.
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Services Gross Margin: 30.5%, down from 32.7% in Q2.
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Operating Expense: $56.5 million, compared with $55.8 million in Q2.
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Operating Margin: 7.3%, increased from 6.9% in the second quarter.
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Net Income: $15.9 million, compared to $14.4 million in the prior quarter.
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Earnings Per Share (EPS): $0.35, up from $0.32 in the prior quarter.
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Cash and Cash Equivalents: $318.2 million, compared to $319.5 million in Q2.
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Cash Flow from Operations: $14.9 million, down from $23.2 million last quarter.
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Q4 Revenue Guidance: Projected between $535 million and $585 million.
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Q4 EPS Guidance: Expected range of $0.34 to $0.54.
Release Date: October 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Revenue for the third quarter came in at the high end of the guided range, driven by increased equipment spending for AI infrastructure and strong demand from the domestic China market.
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Ultra Clean Holdings Inc (NASDAQ:UCTT) is on track to achieve over 20% revenue growth this year compared to last year, surpassing the growth of its largest customers.
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The company has seen a significant increase in revenue from its Shanghai manufacturing facility, with expectations for continued high levels of spending supported by local government investment.
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Revenue from the Malaysia facility has increased nearly 150% year-over-year, contributing to greater economies of scale for customers.
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The company has a diversified product line that extends beyond gas and fluid delivery solutions, indirectly touching nearly every semiconductor chip used in AI applications.
Negative Points
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Services revenue decreased from $63.4 million in Q2 to $61.4 million in Q3, indicating a decline in this segment.
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The overall tax rate increased from 24.7% last quarter to 27.1% this quarter, impacting net income.
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Foreign exchange headwinds, particularly related to the Malaysian ringgit, negatively impacted earnings per share by $0.06.
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Cash flow from operations decreased from $23.2 million last quarter to $14.9 million, primarily due to timing of cash collections and vendor payments.
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Revenue from China, although strong, showed a slight decline from the previous quarter, indicating potential volatility in this market.