Ultra Clean Holdings, Inc. (UCTT) Bundle
A Brief History of Ultra Clean Holdings, Inc.
Ultra Clean Holdings, Inc. (UCTT) has experienced significant growth and transformation in recent years, particularly as of 2024. The company, which operates in the semiconductor capital equipment and services industry, has seen its revenues rise sharply, reflecting increased demand from its customer base.
Financial Performance Overview
For the three months ended September 27, 2024, UCTT reported total revenues of $540.4 million, a 24.2% increase from $435.0 million in the same period of the previous year. For the nine months ended September 27, 2024, total revenues reached $1,534.3 million, up 19.0% from $1,289.8 million in 2023.
| Period | Total Revenues (in millions) | Year-over-Year Change |
|---|---|---|
| Q3 2024 | $540.4 | 24.2% |
| 9 Months 2024 | $1,534.3 | 19.0% |
Segment Performance
Revenues from the Products segment were $479.0 million for the three months ended September 27, 2024, reflecting a 25.8% increase compared to $380.9 million in 2023. The Services segment contributed $61.4 million, a 13.5% increase from $54.1 million in the prior year.
| Segment | Q3 2024 Revenues (in millions) | Year-over-Year Change |
|---|---|---|
| Products | $479.0 | 25.8% |
| Services | $61.4 | 13.5% |
Cost and Gross Margin
The cost of revenues for the three months ended September 27, 2024, was $447.0 million, resulting in a gross margin of $93.4 million, representing a gross margin percentage of 17.3%. This is an improvement from the 15.0% gross margin percentage in the same quarter of the previous year.
| Period | Cost of Revenues (in millions) | Gross Margin (in millions) | Gross Margin Percentage |
|---|---|---|---|
| Q3 2024 | $447.0 | $93.4 | 17.3% |
Net Income and Earnings Per Share
Net income for the three months ended September 27, 2024, was reported at $0.3 million, resulting in a net income per share of $(0.05) on a basic and diluted basis. In contrast, the same period in 2023 saw a net loss of $12.8 million, or $(0.32) per share.
| Period | Net Income (in millions) | Earnings Per Share (Basic) | Earnings Per Share (Diluted) |
|---|---|---|---|
| Q3 2024 | $0.3 | $(0.05) | $(0.05) |
| Q3 2023 | $(12.8) | $(0.32) | $(0.32) |
Debt and Financial Position
As of September 27, 2024, UCTT had a total debt of $492.2 million, with a weighted average interest rate of 8.9%. The company had cash and cash equivalents totaling $318.2 million, reflecting an increase from $307.0 million at the end of December 2023.
| Financial Metric | Amount |
|---|---|
| Total Debt (in millions) | $492.2 |
| Weighted Average Interest Rate | 8.9% |
| Cash and Cash Equivalents (in millions) | $318.2 |
Market Position and Acquisitions
In October 2023, UCTT acquired HIS, which has significantly enhanced its market position, particularly in the U.S. market. This acquisition contributed to the revenue growth observed in 2024, as HIS's customer base aligns with UCTT’s strategic focus on the semiconductor sector.
Overall, Ultra Clean Holdings, Inc. has demonstrated resilience and adaptability in a competitive market, leveraging strategic acquisitions and operational efficiencies to drive growth.
A Who Owns Ultra Clean Holdings, Inc. (UCTT)
Major Shareholders
As of 2024, the ownership structure of Ultra Clean Holdings, Inc. (UCTT) reflects a combination of institutional and retail investors. The following table provides an overview of the major shareholders and their respective ownership stakes:
| Shareholder Type | Shareholder Name | Ownership Percentage | Number of Shares Owned |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.2% | 3.68 million |
| Institutional Investor | BlackRock, Inc. | 7.5% | 3.39 million |
| Institutional Investor | State Street Corporation | 4.9% | 2.22 million |
| Retail Investor | Insider Ownership (Executives & Directors) | 2.3% | 1.04 million |
| Other | Other Institutional Investors | 12.1% | 5.48 million |
| Public Float | Public Investors | 65.0% | 29.35 million |
Recent Changes in Ownership
In recent quarters, significant changes in ownership have occurred, particularly with institutional investors increasing their stakes. For instance, The Vanguard Group increased its holding by approximately 1.0% over the last fiscal year. The overall trend indicates a greater institutional interest in UCTT, likely due to the company's strategic acquisitions and growth in revenue.
Share Performance Overview
As of September 27, 2024, UCTT's stock has demonstrated notable performance, reflecting the confidence of its shareholders:
| Metric | Value |
|---|---|
| Current Stock Price | $25.50 |
| 52-Week High | $30.00 |
| 52-Week Low | $18.00 |
| Market Capitalization | $1.15 billion |
| Volume (Average Daily) | 350,000 shares |
Institutional Ownership Analysis
Institutional ownership of UCTT has been on the rise. As of the latest quarter, institutional investors own approximately 32.5% of the total shares outstanding. This reflects a growing interest from larger investors, which can be indicative of strong future growth potential. The following table summarizes the institutional ownership over the past year:
| Quarter | Institutional Ownership Percentage |
|---|---|
| Q1 2024 | 30.2% |
| Q2 2024 | 31.0% |
| Q3 2024 | 32.5% |
Future Ownership Trends
Looking forward, analysts forecast that institutional ownership may continue to increase as UCTT expands its operations and enhances its market position, especially in the semiconductor and display capital equipment markets. The company's recent acquisition of HIS in October 2023 is expected to further attract institutional investors, bolstering its growth trajectory.
Ultra Clean Holdings, Inc. (UCTT) Mission Statement
Company Overview
Ultra Clean Holdings, Inc. (UCTT) focuses on providing critical subsystems, ultra-high purity cleaning, and analytical services primarily for the semiconductor industry. The company is committed to innovation, operational excellence, and sustainability, aiming to support its customers with advanced technologies and solutions that enhance productivity and efficiency.
Core Values
- Customer Commitment: UCTT prioritizes customer satisfaction through tailored solutions.
- Integrity: The company adheres to high ethical standards in all operations.
- Innovation: Continuous investment in research and development to foster technological advancement.
- Sustainability: Commitment to environmentally responsible practices in manufacturing and operations.
Financial Performance Overview
As of September 27, 2024, UCTT reported significant growth in revenue and operational efficiency across its segments. The company generated total revenues of $1,534.3 million for the nine months ended September 27, 2024, compared to $1,289.8 million for the same period in 2023, reflecting a year-over-year increase of 19.0%.
| Financial Metrics | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Total Revenues | $540.4 | $435.0 | 24.2% |
| Net Income (Loss) | $0.3 | $(12.8) | 102.3% |
| Gross Margin | $93.4 | $65.2 | 43.2% |
| Operating Income | $25.2 | $5.7 | 342.1% |
Market Position and Strategy
Ultra Clean Holdings operates in the semiconductor capital equipment sector, providing essential cleaning and analytical services. The company’s strategic focus on enhancing product offerings through acquisitions, such as the HIS acquisition in October 2023, has significantly contributed to its revenue growth and market expansion.
Segment Performance
UCTT’s revenues are primarily derived from two segments: Products and Services. The Products segment reported revenues of $1,350.2 million for the nine months ended September 27, 2024, a substantial increase compared to $1,112.0 million in the same period of the prior year. The Services segment also saw growth, achieving revenues of $184.1 million, up from $177.8 million.
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Products | $479.0 | $380.9 | 25.8% |
| Services | $61.4 | $54.1 | 13.5% |
Research and Development
UCTT continues to invest in research and development to maintain its competitive edge. For the nine months ended September 27, 2024, R&D expenses totaled $21.2 million, representing 1.4% of total revenues.
Liquidity and Cash Flow
The company reported cash and cash equivalents of $318.2 million as of September 27, 2024, an increase from $307.0 million at the end of the previous fiscal year. This growth in liquidity positions UCTT favorably for future investments and operational needs.
| Cash Flow Metrics | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Operating Activities | $47.9 | $100.6 |
| Investing Activities | $(46.2) | $(56.9) |
| Financing Activities | $8.8 | $(61.0) |
Conclusion
Ultra Clean Holdings, Inc. exemplifies a strong commitment to its mission of providing unparalleled service and innovative solutions within the semiconductor industry. Its financial performance and strategic initiatives reflect a robust operational model poised for future growth.
How Ultra Clean Holdings, Inc. (UCTT) Works
Business Overview
Ultra Clean Holdings, Inc. (UCTT) is a leading provider of critical subsystems for the semiconductor capital equipment industry. The company operates primarily through three segments: Products, Services, and HIS (which includes acquired technologies and solutions). UCTT focuses on assembly, weldments, machining, and fabrication for the semiconductor sector.
Financial Performance
As of September 27, 2024, UCTT reported significant growth in revenues and profitability compared to the previous year.
| Financial Metrics | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|
| Total Revenues | $540.4 million | $435.0 million | $1,534.3 million | $1,289.8 million |
| Gross Profit | $93.4 million | $65.2 million | $264.5 million | $206.3 million |
| Net Income (Loss) | $0.3 million | ($12.8 million) | $14.5 million | ($20.6 million) |
| Net Income (Loss) per Share | $ (0.05) | $ (0.32) | $ 0.16 | $ (0.61) |
| Cash and Cash Equivalents | $318.2 million | N/A | N/A | N/A |
Revenue Breakdown
Revenue for the third quarter of 2024 was driven by a strong performance in both product and service segments, with notable increases in customer demand.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | 9 Months 2024 Revenue | 9 Months 2023 Revenue |
|---|---|---|---|---|
| Products | $479.0 million | $380.9 million | $1,350.2 million | $1,112.0 million |
| Services | $61.4 million | $54.1 million | $184.1 million | $177.8 million |
Cost Structure
Cost of revenues increased significantly due to higher sales volumes and increased material costs. The following table summarizes the cost of revenues by segment.
| Segment | Q3 2024 Cost of Revenues | Q3 2023 Cost of Revenues | 9 Months 2024 Cost of Revenues | 9 Months 2023 Cost of Revenues |
|---|---|---|---|---|
| Products | $403.3 million | $329.3 million | $1,141.2 million | $955.5 million |
| Services | $43.7 million | $40.5 million | $128.6 million | $128.0 million |
Operating Expenses
Operating expenses also saw an increase, reflecting higher spending in research and development, sales and marketing, and general administrative functions.
| Expense Type | Q3 2024 Expense | Q3 2023 Expense | 9 Months 2024 Expense | 9 Months 2023 Expense |
|---|---|---|---|---|
| Research and Development | $7.1 million | $7.4 million | $21.2 million | $21.7 million |
| Sales and Marketing | $14.4 million | $12.8 million | $42.9 million | $38.6 million |
| General and Administrative | $46.7 million | $39.3 million | $135.1 million | $115.3 million |
Segment Performance
Each segment's performance contributes differently to the overall profitability of UCTT. The following table summarizes the operating income by segment.
| Segment | Q3 2024 Operating Income | Q3 2023 Operating Income | 9 Months 2024 Operating Income | 9 Months 2023 Operating Income |
|---|---|---|---|---|
| Products | $22.4 million | $7.7 million | $55.9 million | $27.3 million |
| Services | $2.8 million | ($2.0 million) | $9.4 million | $3.4 million |
Debt and Financing
As of September 27, 2024, UCTT had significant debt obligations, which included a term loan with an outstanding balance of $493.8 million at an interest rate of 8.9%.
| Debt Type | Amount Outstanding | Interest Rate |
|---|---|---|
| Term Loan | $493.8 million | 8.9% |
| Revolving Credit Facility | $146.0 million available | N/A |
Cash Flow and Liquidity
For the nine months ended September 27, 2024, UCTT generated cash from operating activities of $47.9 million, a decrease from $100.6 million in the prior year.
| Cash Flow Activities | 9 Months 2024 | 9 Months 2023 |
|---|---|---|
| Operating Activities | $47.9 million | $100.6 million |
| Investing Activities | ($46.2 million) | ($56.9 million) |
| Financing Activities | $8.8 million | ($61.0 million) |
| Net Increase (Decrease) in Cash and Cash Equivalents | $11.2 million | ($16.8 million) |
How Ultra Clean Holdings, Inc. (UCTT) Makes Money
Revenue Streams
Ultra Clean Holdings, Inc. (UCTT) generates revenue primarily through two segments: Products and Services.
| Segment | Three Months Ended September 27, 2024 (in millions) | Three Months Ended September 29, 2023 (in millions) | Percent Change | Nine Months Ended September 27, 2024 (in millions) | Nine Months Ended September 29, 2023 (in millions) | Percent Change |
|---|---|---|---|---|---|---|
| Products | $479.0 | $380.9 | 25.8% | $1,350.2 | $1,112.0 | 21.4% |
| Services | $61.4 | $54.1 | 13.5% | $184.1 | $177.8 | 3.5% |
| Total Revenues | $540.4 | $435.0 | 24.2% | $1,534.3 | $1,289.8 | 19.0% |
Cost of Revenues
The cost of revenues is a critical component in determining gross profit for UCTT.
| Segment | Three Months Ended September 27, 2024 (in millions) | Three Months Ended September 29, 2023 (in millions) | Percent Change | Nine Months Ended September 27, 2024 (in millions) | Nine Months Ended September 29, 2023 (in millions) | Percent Change |
|---|---|---|---|---|---|---|
| Products | $403.3 | $329.3 | 22.5% | $1,141.2 | $955.5 | 19.4% |
| Services | $43.7 | $40.5 | 7.9% | $128.6 | $128.0 | 0.5% |
| Total Cost of Revenues | $447.0 | $369.8 | 20.9% | $1,269.8 | $1,083.5 | 17.2% |
Gross Margin
Gross margin reflects the profitability of UCTT’s operations.
| Segment | Three Months Ended September 27, 2024 (in millions) | Three Months Ended September 29, 2023 (in millions) | Percent Change | Nine Months Ended September 27, 2024 (in millions) | Nine Months Ended September 29, 2023 (in millions) | Percent Change |
|---|---|---|---|---|---|---|
| Products | $75.7 | $51.6 | 46.7% | $209.0 | $156.5 | 33.5% |
| Services | $17.7 | $13.6 | 30.1% | $55.5 | $49.8 | 11.4% |
| Total Gross Margin | $93.4 | $65.2 | 43.3% | $264.5 | $206.3 | 28.2% |
Operating Expenses
Operating expenses include research and development, sales and marketing, and general and administrative costs.
| Category | Three Months Ended September 27, 2024 (in millions) | Three Months Ended September 29, 2023 (in millions) | Nine Months Ended September 27, 2024 (in millions) | Nine Months Ended September 29, 2023 (in millions) |
|---|---|---|---|---|
| Research and Development | $7.1 | $7.4 | $21.2 | $21.7 |
| Sales and Marketing | $14.4 | $12.8 | $42.9 | $38.6 |
| General and Administrative | $46.7 | $39.3 | $135.1 | $115.3 |
| Total Operating Expenses | $68.2 | $59.5 | $199.2 | $175.6 |
Net Income
Net income reflects the company's profitability after all expenses.
| Period | Net Income (Loss) (in millions) | Net Income (Loss) per Share (Basic) | Net Income (Loss) per Share (Diluted) |
|---|---|---|---|
| Three Months Ended September 27, 2024 | $0.3 | $(0.05) | $(0.05) |
| Three Months Ended September 29, 2023 | $(12.8) | $(0.32) | $(0.32) |
| Nine Months Ended September 27, 2024 | $14.5 | $0.16 | $0.16 |
| Nine Months Ended September 29, 2023 | $(20.6) | $(0.61) | $(0.61) |
Liquidity and Cash Flow
As of September 27, 2024, UCTT had cash and cash equivalents of $318.2 million compared to $307.0 million as of December 29, 2023.
| Cash Flow Activities (in millions) | Nine Months Ended September 27, 2024 | Nine Months Ended September 29, 2023 |
|---|---|---|
| Cash from Operating Activities | $47.9 | $100.6 |
| Cash Used in Investing Activities | $(46.2) | $(59.2) |
| Cash Provided by Financing Activities | $8.8 | $(61.0) |
| Net Increase (Decrease) in Cash | $11.2 | $(16.8) |
Debt Obligations
As of September 27, 2024, UCTT had total bank debt of $492.2 million, with an outstanding term loan of $493.8 million at an interest rate of 8.9%.
| Debt Type | Amount (in millions) | Interest Rate |
|---|---|---|
| U.S. Term Loan | $493.8 | 8.9% |
| Other Facilities (Israel) | $6.1 | 7.1% |
| Total Bank Debt | $492.2 |
Market Position and Future Outlook
UCTT has positioned itself in the semiconductor manufacturing sector, capitalizing on increased demand for its products and services. The acquisition of HIS in October 2023 has further strengthened its market presence, particularly in the U.S. market.
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Article updated on 8 Nov 2024
Resources:
- Ultra Clean Holdings, Inc. (UCTT) Financial Statements – Access the full quarterly financial statements for Q4 2024 to get an in-depth view of Ultra Clean Holdings, Inc. (UCTT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Ultra Clean Holdings, Inc. (UCTT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.