Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Ultra Clean Holdings Inc (NASDAQ:UCTT) fell a harrowing 26% Tuesday after the company turned in mixed first-quarter results and lower-than-expected forward guidance.

So what: Quarterly revenue rose 43.6% year over year to $144.2 million, which translated to adjusted net income of $0.27 per diluted share. Analysts, on average, were looking for adjusted earnings of $0.30 per share on sales of $137.56 million.

For the current quarter, Ultra Clean expects revenue in the range of $128 million to $133 million, with adjusted earnings per diluted share of $0.18 to $0.21. By contrast, analysts were modeling significantly higher second-quarter earnings of $0.26 per share on sales of $132.33 million.

Now what: CEO Clarence Granger admitted Ultra Clean's bottom-line miss wasn't ideal as gross margin came in lower than expected at 16.2%. To be fair, however, he also noted that's still within their previously outlined gross margin target range of 15% to 18%.

In the end, though the market remains disappointed, I don't think Ultra Clean is a broken company. I'm not quite ready to dive in just yet, but at the very least, I think investors would be wise to add Ultra Clean to their watchlists and keep tabs on its progress going forward.

Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.