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FREMONT, Calif., May 05, 2023 (GLOBE NEWSWIRE) -- ACM Research, Inc. (“ACM” or the “Company”) (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, 2023.
“We delivered 76% revenue growth and good profitability. Our team executed well through the relaxed COVID policy, initial impacts from the U.S. advanced node export restrictions, and the Chinese New Year holiday,” said ACM’s President and Chief Executive Officer, Dr. David Wang. “Our results demonstrate the positive trajectory of ACM’s multi-product portfolio strategy. We had good growth from cleaning and increased contribution from our ECP, furnace, and other technologies. I am also pleased with our technical progress and growing customer interest in our new Track and PECVD platforms.”
Dr. Wang continued, “We are moving forward with our global expansion efforts. We purchased land in South Korea, to serve as a site for a new R&D and production facility, in an effort to further leverage local expertise in the close proximity to large potential customers. The evaluation of two cleaning tools at the U.S. facility of a major U.S.-based semiconductor manufacturer is going well, and we recently leased a facility in Oregon to add to our services and demonstration capabilities in the region. We are excited to begin initial production at our new facility in Lingang, Shanghai in the second half of 2023.”
Dr. Wang concluded, “As we look to the rest of 2023, we expect growth to continue driven by new products, mature node investments in China, and initial contribution from certain international customers.” Three Months Ended March 31, GAAP Non-GAAP(1) 2023 2022 2023 2022 (dollars in thousands, except EPS)Revenue$74,256 $42,186 $74,256 $42,186 Gross margin 53.8% 46.7% 54.0% 46.9%Income (loss) from operations$8,862 $(9,306) $10,930 $(7,932)Net income (loss) attributable to ACM Research, Inc.$7,145 $(5,786) $9,867 $(554)Basic EPS$0.12 $(0.10) $0.17 $(0.01)Diluted EPS (2)(3)$0.11 $(0.10) $0.15 $(0.01)
(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 (loss) attributable to ACM Research, Inc. and basic and diluted earnings per share, also exclude unrealized loss on trading securities.
(2) Prior period results have been adjusted to reflect the three-for-one stock split effected in the form of a stock dividend in March 2022.
(3) GAAP Diluted EPS for the first quarter of 2022 was incorrectly reported as ($0.09) on May 6, 2022.
Outlook
The Company is maintaining its revenue guidance range of $515 million to $585 million for fiscal year 2023. This expectation is based on ACM management’s current assessment of the continuing impact from current U.S.-China 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
Financial Summary
Unless otherwise noted, the following figures refer to the first quarter of 2023 and comparisons are with the first quarter of 2022.
Conference Call Details
A conference call to discuss results will be held on Friday, May 5, 2023, 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/BI87673465a34d43ce843a1e8c7ed05148
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 (loss) 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 non-cash change in fair value of financial assets and liabilities and unrealized gain on trading securities, 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.
The Company 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. The Company 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. ULTRA C, SAPS and the ACM Research logo are trademarks of ACM Research, Inc. For convenience, these trademarks appear in this press release without ™ symbols, 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 Yujia Zhai +1 (860) 214-0809 yujia@blueshirtgroup.com In China:The Blueshirt Group Asia Gary Dvorchak, CFA +86 (138) 1079-1480 gary@blueshirtgroup.comACM RESEARCH, INC.Condensed Consolidated Balance Sheets March 31, 2023 December 31, 2022 (Unaudited) (In thousands, except for par value)Assets Current assets: Cash and cash equivalents$260,387 $247,951 Restricted cash 460 500 Short-term time deposits 2,999 70,492 Trading securities 12,733 20,209 Accounts receivable 186,130 182,936 Other receivables 36,178 29,617 Inventories 473,299 393,172 Advances to related party 2,306 3,322 Prepaid expenses 19,319 15,607 Total current assets 993,811 963,806 Property, plant and equipment, net 149,904 82,875 Land use right, net 8,761 8,692 Operating lease right-of-use assets, net 7,408 2,489 Intangible assets, net 1,233 1,255 Long-term time deposits 117,855 101,956 Deferred tax assets 13,035 6,703 Long-term investments 17,265 17,459 Other long-term assets 3,479 50,265 Total assets$1,312,751 $1,235,500 Liabilities and Equity Current liabilities: Short-term borrowings$56,745 $56,004 Current portion of long-term borrowings 2,369 2,322 Related party accounts payable 18,354 14,468 Accounts payable 116,558 101,735 Advances from customers 180,453 153,773 Deferred revenue 4,400 4,174 Income taxes payable 8,579 3,469 FIN-48 payable 6,774 6,686 Other payables and accrued expenses 52,966 52,201 Current portion of operating lease liability 3,013 1,382 Total current liabilities 450,211 396,214 Long-term borrowings 18,245 18,687 Long-term operating lease liability 4,395 1,107 Other long-term liabilities 7,195 7,321 Total liabilities 480,046 423,329 Commitments and contingencies Equity: Stockholders’ equity: Class A Common stock 5 5 Class B Common stock 1 1 Additional paid-in capital 606,398 604,089 Retained earnings 101,410 94,426 Statutory surplus reserve 16,881 16,881 Accumulated other comprehensive loss (32,768) (40,546)Total ACM Research, Inc. stockholders’ equity 691,927 674,856 Non-controlling interests 140,778 137,315 Total equity 832,705 812,171 Total liabilities and equity$1,312,751 $1,235,500 ACM RESEARCH, INC.Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) Three Months Ended March 31, 2023 2022 (Unaudited) ( In thousands, except share and per share data)Revenue$74,256 $42,186 Cost of revenue 34,270 22,500 Gross profit 39,986 19,686 Operating expenses: Sales and marketing 9,337 6,697 Research and development 14,029 17,346 General and administrative 7,758 4,949 Total operating expenses 31,124 28,992 Income from (loss) operations 8,862 (9,306)Interest income 1,785 1,805 Interest expense (695) (261)Realized gain from sale of trading securities 3,994 - Unrealized loss on trading securities (654) (3,858)Other income (expense), net (1,418) 237 Equity loss in net loss of affiliates (32) (71)Income (loss) before income taxes 11,842 (11,454)Income tax benefit (expense) (2,879) 4,011 Net income (loss) 8,963 (7,443)Less: Net income (loss) attributable to non-controlling interests 1,818 (1,657)Net income (loss) attributable to ACM Research, Inc.$7,145 $(5,786)Comprehensive income (loss): Net income (loss) 8,963 (7,443)Foreign currency translation adjustment 9,423 2,454 Comprehensive Income (loss) 18,386 (4,989)Less: Comprehensive income (loss) attributable to non-controlling interests and redeemable non-controlling interests 3,462 (1,073)Comprehensive income (loss) attributable to ACM Research, Inc.$14,924 $(3,916) Net income (loss) attributable to ACM Research, Inc. per share of common stock: Basic$0.12 $(0.10)Diluted$0.11 $(0.10) Weighted average shares of common stock outstanding used in computing per share amounts: Basic 59,736,764 58,827,390 Diluted 65,058,777 58,827,390 ACM RESEARCH, INC.Total Revenue by Product Category, by Equipment Type and by Region Three Months Ended March 31, 2023 2022 ($ in thousands)Single wafer cleaning, Tahoe and semi-critical cleaning equipment$36,614$26,033ECP (front-end and packaging), furnace and other technologies 26,598 12,248Advanced packaging (excluding ECP), services & spares 11,044 3,905Total Revenue By Product Category$74,256$42,186 Wet-cleaning and other front-end processing tools$56,382$31,702Advanced packaging, other processing tools, services and spares 17,874 10,484Total Revenue Front-End and Back-End$74,256$42,186 Three Months Ended March 31, 2023 2022Mainland China$72,458$42,130Other Regions 1,798 56Total Revenue By Region$74,256$42,186
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 gain on trading securities. The following table reconciles 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, 2023 2022 ActualSBC Other non-
operating
adjustmentsAdjustedActualSBC Other non-
operating
adjustmentsAdjusted(GAAP)(Non-GAAP)(GAAP)(Non-GAAP) (In thousands) Revenue$74,256 $- $- $74,256 $42,186 $- $- $42,186 Cost of revenue (34,270) (125) - (34,145) (22,500) (113) - (22,387)Gross profit 39,986 (125) - 40,111 19,686 (113) - 19,799 Operating expenses: Sales and marketing (9,337) (431) - (8,906) (6,697) (354) - (6,343)Research and development (14,029) (701) - (13,328) (17,346) (411) - (16,935)General and administrative (7,758) (811) - (6,947) (4,949) (496) - (4,453)Total operating expenses (31,124) (1,943) - (29,181) (28,992) (1,261) - (27,731)Income (loss) from operations$8,862 $(2,068)$- $10,930 $(9,306)$(1,374)$- $(7,932)Unrealized loss on trading securities (654) - (654) - (3,858) - (3,858) - Net income (loss) attributable to ACM Research, Inc.$7,145 $(2,068)$(654)$9,867 $(5,786)$(1,374)$(3,858)$(554)Basic EPS$0.12 $0.17 $(0.10) $(0.01)Diluted EPS$0.11 $0.15 $(0.10) $(0.01)