What happened

Shares of Ultra Clean Holdings (NASDAQ:UCTT), a supplier of systems and subsystems to the semiconductor equipment industry, jumped on Thursday after the company reported its fourth-quarter results. Ultra Clean beat analyst estimates for both revenue and earnings, sending the stock up 12% by 11:30 a.m. EST.

So what

Ultra Clean reported fourth-quarter revenue of $174.5 million, up 68.8% year over year and about $1.5 million higher than the average analyst estimate. Semiconductor revenue rose 60.7% year over year, while revenue derived from outside the U.S. jumped 126.2%.

The Ultra Clean Holdings logo.

Image source: Ultra Clean Holdings.

Non-GAAP EPS came in at $0.36, up from a loss of $0.01 during the prior-year period and $0.09 better than analysts were expecting. Gross margin increased more than 4 percentage points year over year to 17%, driving earnings higher.

Ultra Clean expects to produce between $190 million and $197 million of revenue during the first quarter of 2017, along with non-GAAP EPS between $0.40 and 0.45. The company produced revenue of just $112 million during the first quarter of 2016.

Now what

Ultra Clean President and CEO Jim Scholhamer said the company was on track to meet its long-term targets:

2016 was a year of extraordinary growth for UCT. Total revenue and semiconductor revenue reached record highs and together with continued focus on operational excellence resulted in a significantly improved bottom line. By expanding our capabilities beyond gas panels and keeping pace with exceptional market demand, we are creating an even stronger link with our customers and have been able to capitalize on new opportunities. We are well positioned to reach our longer-term revenue and profitability goals.

With a solid close to 2016 and guidance calling for continued growth, investors had plenty of reasons to push up the stock on Thursday.