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 GroupSteven C. Pelayo, CFA+1 (360)
808-5154steven@blueshirtgroup.co |
|
|
In China: |
The Blueshirt Group AsiaGary
Dvorchak, CFA+86 (138) 1079-1480gary@blueshirtgroup.co |
|
|
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 |
|
ACM Research (NASDAQ:ACMR)
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