What happened
Shares of Ultra Clean Holdings (UCTT 1.39%) have skyrocketed today, up by 17% as of 12 p.m. EDT, after the company reported first-quarter earnings. Its bottom-line profit easily topped analyst expectations.
So what
Revenue in the first quarter jumped 54% to $314.8 million, which translated into non-GAAP net income of $25.7 million, or $0.69 per share. Analysts were looking for just $0.60 per share in adjusted profit. The company incurred $1.1 million in pre-tax charges for intangible asset amortization, as well as $0.9 million in costs associated with closing machining operations in China. These charges were excluded from its non-GAAP results.
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Gross margin contracted to 15.5%, while international sales jumped 71%.
Now what
"UCT delivered excellent results on the top and bottom line, driven by extraordinary demand as well as new products ramping faster than expected," CEO Jim Scholhamer said in a statement. "Our performance was accentuated by our ability to quickly deliver quality products on short notice, proving our customers are increasingly relying on UCT as a partner to further their success. Continued strength in the semiconductor capital equipment market, together with our elevated focus on growth opportunities, serves to heighten our excitement about the prospects for UCT."
In terms of guidance, UCT expects revenue in the second quarter to be $280 million to $300 million, with GAAP earnings per share of $0.50 to $0.59. On a non-GAAP basis, earnings per share should be $0.52 to $0.62.
