ACM Research Reports First Quarter 2024 Results

FREMONT, Calif., May 08, 2024 (GLOBE NEWSWIRE) — ACM Research, Inc. (“ACM”) (NASDAQ: ACMR), a leading supplier of wafer processing solutions for semiconductor and advanced wafer-level packaging applications, today reported financial results for its first quarter ended March 31, 2024.

“I am pleased with our first quarter results, a solid start for 2024. We delivered 105% revenue growth, record shipments, and strong profitability,” said ACM’s President and Chief Executive Officer, Dr. David Wang. “Our results demonstrate continued spending on mature nodes by our mainland China customers, contribution from new products, and market share gains at both existing and new customers.”

Dr. Wang continued, “We anticipate growth for 2024 as a result of our broadening product portfolio and expanding global footprint. We expect additional market share gains in cleaning with increased customer traction for Tahoe, single wafer high temperature SPM, and supercritical CO2 dry products, continued strength in ECP, and accelerating customer adoption for our furnace products. We expect to begin initial production at our facility in Lingang, Shanghai this year, and we continue to invest in our U.S. and Korea operations to support the global market opportunity.”

  Three Months Ended March 31,
  GAAP   Non-GAAP(1)
    2024       2023       2024       2023  
  (dollars in thousands, except EPS)
Revenue $ 152,191     $ 74,256     $ 152,191     $ 74,256  
Gross margin   52.0 %     53.8 %     52.5 %     54.0 %
Income from operations $ 25,232     $ 8,862     $ 39,801     $ 10,930  
Net income attributable to ACM Research, Inc. $ 17,433     $ 7,145     $ 34,597     $ 9,867  
Basic EPS $ 0.28     $ 0.12     $ 0.56     $ 0.17  
Diluted EPS $ 0.26     $ 0.11     $ 0.52     $ 0.15  
(1) Reconciliations to U.S. generally accepted accounting principles (“GAAP”) financial measures from non-GAAP financial measures are presented below under “Reconciliation of GAAP to Non-GAAP Financial Measures.” Non-GAAP financial measures exclude stock-based compensation and, with respect to net income attributable to ACM Research, Inc. and basic and diluted earnings per share, also exclude unrealized loss on short-term investments.
   

Outlook

ACM is maintaining its revenue guidance range of $650 million to $725 million for fiscal year 2024. This expectation is based on ACM management’s current assessment of the continuing impact from international trade policy, together with various expected spending scenarios of key customers, supply chain constraints, and the timing of acceptances for first tools under evaluation in the field, among other factors.

Operating Highlights and Recent Announcements

  • Shipments. Total shipments in the first quarter of 2024 were $245 million, up 175% from the first quarter of 2023. Total shipments include deliveries for revenue in the quarter and deliveries of first tool systems awaiting customer acceptance for potential revenue in future quarters.
  • Expanded Advanced Packaging Portfolio with Introduction of Frame Wafer Cleaning Tool. We introduced our Frame Wafer Cleaning Tool for advanced packaging. The tool effectively cleans semiconductor wafers during the post-debonding cleaning process. The Frame Wafer Cleaning Tool also includes an innovative solvent reclamation system that provides environmental and cost benefits. We have also successfully completed the installation and qualification of the first tool with a major Chinese manufacturer.

First Quarter 2024 Financial Summary

Unless otherwise noted, the following figures refer to the first quarter of 2024 and comparisons are with the first quarter of 2023.

  • Revenue was $152.2 million, up 105.0%, reflecting higher sales of single wafer cleaning, Tahoe and semi-critical cleaning equipment and advanced packaging (excluding ECP), and services and spares.
  • Gross margin was 52.0% versus 53.8%. Non-GAAP gross margin, which excludes stock-based compensation, was 52.5% versus 54.0%. Gross margin exceeded ACM’s long-term business model range of 40% to 45%. ACM expects gross margin to vary from period to period due to a variety of factors, such as product mix, currency impacts and sales volume.
  • Operating expenses were $53.9 million, an increase of 73.1%. Operating expenses as a percentage of revenue decreased to 35.4% from 41.9%. Non-GAAP operating expenses, which exclude the effect of stock-based compensation, were $40.1 million, up 37.4%. Non-GAAP operating expenses as a percentage of revenue decreased to 26.3% from 39.3%.
  • Operating income was $25.2 million, up from $8.9 million. Operating margin was 16.6% versus 11.9%. Non-GAAP operating income, which excludes the effect of stock-based compensation, was $39.8 million, up from $10.9 million. Non-GAAP operating margin, which excludes stock-based compensation, was 26.2% versus 14.7%.
  • Unrealized loss on short-term investments was $2.6 million. The loss reflects the change in market value of the investments by ACM’s principal operating subsidiary, ACM Research (Shanghai), Inc., in short-term investments. The value is marked-to-market quarterly and is excluded in the non-GAAP financial metrics.
  • Income tax expense was $4.4 million, compared to $2.9 million.
  • Net income attributable to ACM Research, Inc. was $17.4 million, up from $7.1 million. Non-GAAP net income attributable to ACM Research, Inc., which excludes the effect of stock-based compensation and unrealized loss on short-term investments, was $34.6 million, up from $9.9 million.
  • Net income per diluted share attributable to ACM Research, Inc. was $0.26, compared to $0.11. Non-GAAP net income per diluted share, which excludes the effect of stock-based compensation and unrealized loss on short-term investments, was $0.52, up from $0.15.
  • Cash and cash equivalents, plus restricted cash and short-term and long-term time deposits were $288.3 million at March 31, 2024, versus $304.5 million at December 31, 2023.

Conference Call Details

A conference call to discuss results will be held on Wednesday, May 8, 2024, at 8:00 a.m. Eastern Time (8:00 p.m. China Time). To join the conference call via telephone, participants must use the following link to complete an online registration process. Upon registering, each participant will receive email instructions to access the conference call, including dial-in information and a PIN number allowing access to the conference call. This pre-registration process is designed by the operator to reduce delays due to operator congestion when accessing the live call.

Online Registration: https://register.vevent.com/register/BI7d8a11ab6f694bde910596cd97b8276d

Participants who have not pre-registered may join the webcast by accessing the link at ir.acmrcsh.com/events.

A live and archived webcast will be available on the Investors section of the ACM website at www.acmrcsh.com.

Use of Non-GAAP Financial Measures

ACM presents non-GAAP gross margin, operating expenses, operating income, net income attributable to ACM Research, Inc. and basic and diluted earnings per share as supplemental measures to GAAP financial measures regarding ACM’s operational performance. These supplemental measures exclude the impact of stock-based compensation, which ACM does not believe is indicative of its core operating results. In addition, non-GAAP net income attributable to ACM Research, Inc. and basic and diluted earnings per share exclude the effect of stock-based compensation and unrealized loss on short-term investments, which ACM also believes are not indicative of its core operating results. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is provided below under “Reconciliation of GAAP to non-GAAP Financial Measures.”

ACM believes these non-GAAP financial measures are useful to investors in assessing its operating performance. ACM uses these financial measures internally to evaluate its operating performance and for planning and forecasting of future periods. Financial analysts may focus on and publish both historical results and future projections based on the non-GAAP financial measures. ACM also believes it is in the best interests of investors for ACM to provide this non-GAAP information.

While ACM believes these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures may not be reported by competitors, and they may not be directly comparable to similarly titled measures of other companies due to differences in calculation methodologies. The non-GAAP financial measures are not an alternative to GAAP information and are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures. They should be used only as a supplement to GAAP information and should be considered only in conjunction with ACM’s consolidated financial statements prepared in accordance with GAAP.

Forward-Looking Statements

Certain statements contained in this press release are not historical facts and may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “plans,” “expects,” “believes,” “anticipates,” “designed,” and similar words are intended to identify forward-looking statements. Forward-looking statements are based on ACM management’s current expectations and beliefs, and involve a number of risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from those stated or implied by the forward-looking statements. A description of certain of these risks, uncertainties and other matters can be found in filings ACM makes with the U.S. Securities and Exchange Commission, all of which are available at www.sec.gov. Because forward-looking statements involve risks and uncertainties, actual results and events may differ materially from results and events currently expected by ACM. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. ACM undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in its expectations with regard to these forward-looking statements or the occurrence of unanticipated events.

About ACM Research, Inc.

ACM develops, manufactures and sells semiconductor process equipment for single-wafer or batch wet cleaning, electroplating, stress-free polishing and thermal processes that are critical to advanced semiconductor device manufacturing, as well as wafer-level packaging. ACM is committed to delivering customized, high performance, cost-effective process solutions that semiconductor manufacturers can use in numerous manufacturing steps to improve productivity and product yield.

© ACM Research, Inc. The ACM Research logo is a trademark of ACM Research, Inc. For convenience, this trademark appears in this press release without a ™ symbol, but that practice does not mean that ACM will not assert, to the fullest extent under applicable law, its rights to the trademarks.

For investor and media inquiries, please contact:

In the United States: The Blueshirt Group
Steven C. Pelayo, CFA
+1 (360) 808-5154
[email protected]
   
In China: The Blueshirt Group Asia
Gary Dvorchak, CFA
+86 (138) 1079-1480
[email protected]
   
ACM RESEARCH, INC.
Condensed Consolidated Balance Sheets
 
   
  March 31, 2024   December 31, 2023
  (Unaudited)    
  (In thousands)
Assets      
Current assets:      
Cash and cash equivalents $ 211,305     $ 182,090  
Restricted cash   808       1,083  
Short-term time deposits   48,364       80,524  
Short-term investment   18,648       21,312  
Accounts receivable, net   296,371       283,186  
Other receivables   51,316       40,065  
Inventories, net   581,140       545,395  
Advances to related party   1,338       2,432  
Prepaid expenses   20,066       20,023  
Total current assets   1,229,356       1,176,110  
Property, plant and equipment, net   218,822       201,848  
Land use right, net   8,305       8,367  
Operating lease right-of-use assets, net   6,498       7,026  
Intangible assets, net   2,803       2,538  
Long-term time deposits   27,841       40,818  
Deferred tax assets   21,360       20,271  
Long-term investments   31,293       27,880  
Other long-term assets   10,471       6,050  
Total assets $ 1,556,749     $ 1,490,908  
Liabilities and Equity      
Current liabilities:      
Short-term borrowings $ 54,706     $ 31,335  
Current portion of long-term borrowings   6,549       6,783  
Related party accounts payable   16,243       11,407  
Accounts payable   135,499       141,814  
Advances from customers   182,547       181,368  
Deferred revenue   4,405       3,687  
Income taxes payable   11,403       6,401  
FIN-48 payable   12,131       12,149  
Other payables and accrued expenses   107,098       102,951  
Current portion of operating lease liability   2,668       2,764  
Total current liabilities   533,249       500,659  
Long-term borrowings   53,408       53,952  
Long-term operating lease liability   3,830       4,262  
Other long-term liabilities   5,469       5,873  
Total liabilities   595,956       564,746  
Commitments and contingencies      
Equity:      
Stockholders’ equity:      
Class A Common stock   6       6  
Class B Common stock   1       1  
Additional paid-in capital   646,800       629,845  
Retained earnings   174,260       156,827  
Statutory surplus reserve   30,060       30,060  
Accumulated other comprehensive loss   (54,925 )     (49,349 )
Total ACM Research, Inc. stockholders’ equity   796,202       767,390  
Non-controlling interests   164,591       158,772  
Total equity   960,793       926,162  
Total liabilities and equity $ 1,556,749     $ 1,490,908  
ACM RESEARCH, INC.
Condensed Consolidated Statements of Operations and Comprehensive Income
 
  Three Months Ended March 31,
    2024       2023  
  (Unaudited)
  (In thousands, except share and per share data)
Revenue $ 152,191     $ 74,256  
Cost of revenue   73,070       34,270  
Gross profit   79,121       39,986  
Operating expenses:      
Sales and marketing   14,173       9,337  
Research and development   23,918       14,029  
General and administrative   15,798       7,758  
Total operating expenses   53,889       31,124  
Income from operations   25,232       8,862  
Interest income   1,774       1,785  
Interest expense   (783 )     (695 )
Realized gain from sale of short-term investments   273       3,994  
Unrealized loss on short-term investments   (2,595 )     (654 )
Other income (expense), net   3,080       (1,418 )
Loss from equity method investments   (520 )     (32 )
Income before income taxes   26,461       11,842  
Income tax expense   (4,369 )     (2,879 )
Net income   22,092       8,963  
Less: Net income attributable to non-controlling interests   4,659       1,818  
Net income attributable to ACM Research, Inc. $ 17,433     $ 7,145  
Comprehensive income (loss):      
Net income   22,092       8,963  
Foreign currency translation adjustment, net of tax   (6,829 )     9,423  
Comprehensive Income   15,263       18,386  
Less: Comprehensive income attributable to non-controlling interests   3,406       3,462  
Comprehensive income attributable to ACM Research, Inc. $ 11,857     $ 14,924  
       
Net income attributable to ACM Research, Inc. per common share:      
Basic $ 0.28     $ 0.12  
Diluted $ 0.26     $ 0.11  
       
Weighted average common shares outstanding used in computing per share amounts:    
Basic   61,367,184       59,736,764  
Diluted   66,242,321       65,058,777  
ACM RESEARCH, INC.
Total Revenue by Product Category and by Region
     
` Three Months Ended
March 31,
  2024 2023
  (Unaudited)
  ($ in thousands)
Single wafer cleaning, Tahoe and semi-critical cleaning equipment $ 109,470 $ 36,614
ECP (front-end and packaging), furnace and other technologies   25,800   26,598
Advanced packaging (excluding ECP), services & spares   16,921   11,044
Total Revenue by Product Category $ 152,191 $ 74,256
     
    2023   2022
Mainland China $ 152,135 $ 72,458
Other Regions   56   1,798
Total Revenue by Region $ 152,191 $ 74,256
 

ACM RESEARCH, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures

As described under “Use of Non-GAAP Financial Measures” above, ACM presents non-GAAP gross margin, operating expenses, operating income, net income attributable to ACM Research, Inc., and basic and diluted earnings per share as supplemental measures to GAAP financial measures, each of which excludes stock-based compensation (“SBC”) from the equivalent GAAP financial line items. In addition, non-GAAP net income attributable to ACM Research, Inc., and basic and diluted earnings per share exclude unrealized loss on short-term investments. The following tables reconcile gross margin, operating expenses, operating income, net income attributable to ACM Research, Inc., and basic and diluted earnings per share to the related non-GAAP financial measures:

  Three Months Ended March 31,
    2024     2023  
  Actual SBC Other non-operating adjustments Adjusted Actual SBC Other non-operating adjustments Adjusted
(GAAP) (Non-GAAP) (GAAP) (Non-GAAP)
  (In thousands)
                 
Revenue $ 152,191   $   $   $ 152,191   $ 74,256   $   $   $ 74,256  
Cost of revenue   (73,070 )   (781 )       (72,289 )   (34,270 )   (125 )       (34,145 )
Gross profit   79,121     (781 )       79,902     39,986     (125 )       40,111  
Gross margin   52.0 %   0.5 %       52.5 %   53.8 %   0.2 %       54.0 %
Operating expenses:                
Sales and marketing   (14,173 )   (3,027 )       (11,146 )   (9,337 )   (431 )       (8,906 )
Research and development   (23,918 )   (4,503 )       (19,415 )   (14,029 )   (701 )       (13,328 )
General and administrative   (15,798 )   (6,258 )       (9,540 )   (7,758 )   (811 )       (6,947 )
Total operating expenses   (53,889 )   (13,788 )       (40,101 )   (31,124 )   (1,943 )       (29,181 )
Income (loss) from operations $ 25,232   $ (14,569 ) $   $ 39,801   $ 8,862   $ (2,068 ) $   $ 10,930  
Unrealized loss on short-term investments   (2,595 )       (2,595 )       (654 )       (654 )    
Net income (loss) attributable to ACM Research, Inc. $ 17,433   $ (14,569 ) $ (2,595 ) $ 34,597   $ 7,145   $ (2,068 ) $ (654 ) $ 9,867  
Basic EPS $ 0.28       $ 0.56   $ 0.12       $ 0.17  
Diluted EPS $ 0.26       $ 0.52   $ 0.11       $ 0.15  


Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. TheTechOutlook.com takes no editorial responsibility for the same.




Readers like you help support The Tech Outlook. When you make a purchase using links on our site, we may earn an affiliate commission. We cannot guarantee the Product information shown is 100% accurate and we advise you to check the product listing on the original manufacturer website. Thetechoutlook is not responsible for price changes carried out by retailers. The discounted price or deal mentioned in this item was available at the time of writing and may be subject to time restrictions and/or limited unit availability. Amazon and the Amazon logo are trademarks of Amazon.com, Inc. or its affiliates Read More

Advertisement

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More