Q2 2024 Ultra Clean Holdings Inc Earnings Call Transcript
Key Points
- Second quarter revenue and earnings were at the high end of the guided range, indicating strong financial performance.
- Revenue from the domestic China market and customers supplying high bandwidth memory and equipment for AI applications showed significant growth.
- Ultra Clean Holdings Inc (UCTT) received the Outstanding Partner Award from Piotech China, highlighting strong industry recognition.
- The company has expanded and diversified its content, allowing it to engage in all stages of industry growth, from fab construction to equipment buildup.
- Investments in capacity expansion and operational efficiency are on track, supporting future growth and customer innovation roadmaps.
- Total gross margin for the second quarter decreased slightly to 17.7% from 17.9% in the previous quarter.
- Product gross margin also saw a slight decline from 15.8% to 15.6%, indicating some pressure on profitability.
- Operating expenses increased to $55.8 million from $54.5 million in the prior quarter, although they decreased as a percentage of revenue.
- The tax rate increased from 19.7% to 24.7%, impacting net income and earnings per share.
- Guidance for the third quarter projects flat revenue growth, indicating potential challenges in maintaining the current growth momentum.
Good afternoon, ladies and gentlemen, and welcome to the Ultra Clean Technology Q2 2024 Earnings Call and Webcast. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. (Operator Instructions) This call is being recorded on Thursday, July 25, 2024.
I would now like to turn the conference over to Rhonda Bennetto, Investor Relations. Please go ahead.
Thank you, operator. Good afternoon, everyone, and thank you for joining us. With me today are Jim Scholhamer, Chief Executive Officer, and Sheri Savage, Chief Financial Officer. Jim will begin with some prepared remarks about the business and Sheri will follow with the financial review. And then we'll open up the call for questions.
Today's call contains forward-looking statements that are subject to risks and uncertainties. For more information, please refer to the Risk Factors section in our SEC filings.
All forward-looking statements are based on estimates, projections
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