Attached files
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| 8-K - CURRENT REPORT - ACM Research, Inc. | acm_8k.htm |
Exhibit 99.01
ACM Research Reports Third Quarter 2018 Results
FREMONT,
California, November 7, 2018 (Globe Newswire) – ACM Research,
Inc. (“ACM” or the “Company”)
(NASDAQ:ACMR), a provider of single-wafer wet cleaning equipment
used by manufacturers of advanced semiconductors, today reported
financial results for its third fiscal quarter ended September 30,
2018.
ACM
Research’s President and Chief Executive Officer Dr. David
Wang commented, “Our business momentum continued in the third
quarter. We delivered strong financial results, with revenue more
than tripling from the third quarter of 2017. Strength was driven
by solid demand and great execution, with additional contribution
from customer acceptance on an important evaluation tool. Operating
highlights included significant delivery of first-tools, which
contributed to record total shipments for the quarter, the launch
of the “Ultra-C” Tahoe product, and the start of
production at our second factory in Shanghai.”
Dr.
Wang continued, “We are excited by our business prospects,
and remain committed to gaining additional market share by
increasing our business with leading and emerging global IC
manufacturers. For 2018, we have once again raised our full-year
revenue guidance, which represents more than 100% growth versus
last year.”
Third Quarter Operating Highlights
●
Record Total Shipments. Total shipments
for the third quarter were approximately $32 million, an increase
from approximately $11 million in the third quarter of 2017, and
approximately $21 million in the second quarter of 2018. Quarterly
shipments include deliveries for revenue in the quarter, and
deliveries of first-tool systems awaiting customer acceptance for
potential revenue in future quarters. ACM views first-tool
deliveries as an important indicator of progress in moving
customers from the qualified pipeline to a more comprehensive
evaluation phase.
●
Newest Addition from ACM’s Innovation
Pipeline, the Ultra-C Tahoe. In August 2018, ACM announced
the Ultra-C Tahoe, a new addition to its line of advanced
single-wafer cleaning tools. The Ultra-C Tahoe tool incorporates
innovative and patented technology to deliver high cleaning
performance, but uses 10% or less of the sulfuric acid typically
consumed by conventional high temperature single wafer cleaning
tools.
●
New Production Facility. On September
28, 2018, ACM held an opening ceremony to mark the completion of
its new production facility. The new facility, located in the
Pudong region of Shanghai, is approximately 20 kilometers from the
Company's Shanghai headquarters. The new factory adds 50,000 square
feet of available floor space to the 36,000 square feet of existing
floor space at ACM’s initial facility.
-1-
Financial Summary
|
|
Three
Months Ended September 30,
|
|||
|
|
GAAP
|
Non-GAAP(1)
|
||
|
|
2018
|
2017
|
2018
|
2017
|
|
|
(dollars
in thousands)
|
|||
|
Revenue
|
$23,179
|
$4,891
|
$23,179
|
$4,891
|
|
Gross
margin(2)
|
44.4%
|
45.0%
|
44.5%
|
45.0%
|
|
Income (loss) from
operations(2)
|
$3,404
|
$(1,310)
|
$3,815
|
$(967)
|
|
Net income (loss)
attributable to ACM Research, Inc.(2)
|
$3,853
|
$(955)
|
$4,264
|
$(612)
|
|
Basic
EPS
|
$0.24
|
$(0.17)
|
$0.27
|
$(0.11)
|
|
Diluted
EPS
|
$0.21
|
$(0.17)
|
$0.23
|
$(0.11)
|
|
|
Nine
Months Ended September 30,
|
|||
|
|
GAAP
|
Non-GAAP(1)
|
||
|
|
2018
|
2017
|
2018
|
2017
|
|
|
(dollars
in thousands)
|
|||
|
Revenue
|
$53,795
|
$19,314
|
$53,795
|
$19,314
|
|
Gross
margin(2)
|
44.9%
|
41.7%
|
44.9%
|
41.7%
|
|
Income (loss) from
operations(2)
|
$3,831
|
$(3,065)
|
$6,602
|
$(1,073)
|
|
Net income (loss)
attributable to ACM Research, Inc.(2)
|
$4,288
|
$(3,702)
|
$7,059
|
$(1,710)
|
|
Basic
EPS
|
$0.27
|
$(0.72)
|
$0.45
|
$(0.33)
|
|
Diluted
EPS
|
$0.24
|
$(0.72)
|
$0.40
|
$(0.33)
|
(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.”
(2)
Non-GAAP financial
measures exclude stock-based compensation.
All figures refer to the third quarter of 2018, unless noted
otherwise. All comparisons are with the third quarter of 2017,
unless otherwise noted.
●
Revenue increased 374% to $23.2 million,
due to increased volume of tools shipped for revenue, higher price
associated with these tools, and a significant customer acceptance
achieved during the quarter.
●
Gross margin was 44.4%, compared to
45.0% in the third quarter of 2017. Gross margin was within the
range of 40.0% to 45.0% set forth in the Company’s long-term
business model. The Company expects gross margin to vary from
period to period due to a variety of factors, such as sales volume
and product mix.
●
Operating expenses were $6.9 million, an
increase of 96%. Non-GAAP operating expenses which removes
stock-based compensation, was $6.5 million, up 105%. Non-GAAP
operating expenses as a percent of revenue decreased to 28%, versus
65% in the third quarter of 2017.
●
Net income attributable to ACM Research,
Inc. was $3.9 million,
compared to a net loss attributable to ACM Research, Inc. of $1.0
million in the third quarter of 2017. Non-GAAP net income
attributable to ACM Research, Inc. was $4.3 million, versus a
non-GAAP net loss attributable to ACM Research, Inc. of $0.6
million in the third quarter of 2017.
●
Cash and equivalents at quarter-end were
$18.2 million, up from $17.4 million at the end of the second
quarter of 2018.
-2-
Outlook
The
Company has raised its full year 2018 revenue guidance to $74
million, an increase of $4 million from the Company’s
previous 2018 revenue guidance.
Conference Call Details
A
conference call to discuss results will be held on Thursday,
November 8, 2018 at 8:00 a.m. Eastern Time (9:00 p.m. China Time).
Dial-in details for the call are as follows. Please reference
conference ID 9572579.
Phone Number
Toll-Free Number
United
States
+1 (845)
675-0437
+1 (866)
519-4004
Hong
Kong
+852 3018
6771
+852 8009
06601
Mainland
China
+86 (800) 819
0121
+86 (400) 620
8038
Other
International
+65 6713
5090
A
recording of the webcast will be available on the investor page of
the ACM Research website at www.acmrcsh.com
for one week following the call.
Use of Non-GAAP Financial Measures
ACM
Research presents non-GAAP gross margin, operating income (loss)
and net loss as supplemental measures to GAAP financial measures
regarding ACM Research’s operational performance. These
supplemental measures exclude the impact of stock-based
compensation, which ACM Research does not believe is 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 Non-GAAP
to GAAP Financial Measures.”
ACM
Research believes these non-GAAP financial measures are useful to
investors in assessing its operating performance. ACM Research 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 Research also believes it is in the best interests of investors
for ACM Research to provide this non-GAAP information.
While
ACM Research 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 Research’s
consolidated financial statements prepared in accordance with
GAAP.
-3-
Forward-Looking Statements
Information
presented in the third paragraph of this press release and under
the heading “Outlook” above contains forward-looking
statements for purposes of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Actual results
may vary significantly from ACM Research’s expectations based
on a number of risks and uncertainties, including but not limited
to the following: anticipated customer orders or identified market
opportunities may not grow or develop as anticipated; customer
orders already received may be postponed or canceled; suppliers may
not be able to meet ACM Research’s demands on a timely basis;
volatile global economic, market, industry and other conditions
could result in sharply lower demand for products containing
semiconductors and for the company's products and in disruption of
capital and credit markets; ACM Research’s failure to
successfully manage its operations; and trade regulations, currency
fluctuations, political instability and war may materially
adversely affect ACM Research due to its substantial non-U.S.
customer and supplier base and its substantial non-U.S.
manufacturing operations. ACM Research cannot guarantee any future
results, levels of activity, performance or achievements. ACM
Research expressly disclaims any obligation to update
forward-looking statements after the date of this press
release.
About ACM Research, Inc.
ACM
Research develops, manufactures and sells single-wafer wet cleaning
equipment, which semiconductor manufacturers can use in numerous
manufacturing steps to remove particles, contaminants and other
random defects, and thereby improve product yield, in fabricating
advanced integrated circuits.
©
ACM Research, Inc. The ACM Research logo is a trademark of ACM
Research, Inc. All rights reserved. Any other trademarks are the
property of their respective owners.
For investor and media inquiries, please contact:
In the United
States:
The Blueshirt
Group
Ralph
Fong
+1
(415) 489-2195
ralph@blueshirtgroup.com
In
China:
The Blueshirt Group
Asia
Gary
Dvorchak, CFA
+86
(138) 1079-1480
gary@blueshirtgroup.com
-4-
ACM RESEARCH, INC.
Condensed Consolidated Balance Sheets
|
|
September 30,
2018
|
December 31,
2017
|
|
|
(unaudited)
|
|
|
|
(in thousands, except share and per share data)
|
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash
and cash equivalents
|
$18,238
|
$17,681
|
|
Accounts
receivable, less allowance for doubtful accounts of $0 as of
September 30, 2018 and $0 as of December 31, 2017
|
30,965
|
26,762
|
|
Other
receivables
|
1,591
|
2,491
|
|
Inventories
|
29,809
|
15,388
|
|
Prepaid
expenses
|
2,142
|
546
|
|
Other
current assets
|
32
|
46
|
|
Total
current assets
|
82,777
|
62,914
|
|
Property,
plant and equipment, net
|
3,593
|
2,340
|
|
Intangible
assets, net
|
300
|
106
|
|
Deferred
tax assets
|
1,230
|
1,294
|
|
Investment
in affiliates, equity method
|
1,472
|
1,237
|
|
Other
long-term assets
|
41
|
-
|
|
Total
assets
|
$89,413
|
$67,891
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
borrowings
|
$10,163
|
$5,095
|
|
Warrant
liability
|
-
|
3,079
|
|
Accounts
payable
|
11,991
|
7,419
|
|
Advances
from customers
|
3,918
|
143
|
|
Income
taxes payable
|
689
|
44
|
|
Other
payables and accrued expenses
|
8,090
|
6,037
|
|
Total
current liabilities
|
34,851
|
21,817
|
|
Other
long-term liabilities
|
5,230
|
6,217
|
|
Total
liabilities
|
40,081
|
28,034
|
|
Commitments and contingencies
|
|
|
|
Stockholders’
equity:
|
|
|
|
Common
stock – Class A, par value $0.0001: 100,000,000 shares
authorized as of September 30, 2018 and December 31, 2017.
14,070,065 shares issued and outstanding as of September 30, 2018
and 12,935,546 shares issued and outstanding as of December 31,
2017
|
1
|
1
|
|
Common
stock–Class B, par value $0.0001: 7,303,533 shares authorized
as of September 30, 2018 and December 31, 2017. 1,918,423 shares
issued and outstanding as of September 30, 2018 and 2,409,738
shares issued and outstanding as of December 31, 2017
|
-
|
-
|
|
Additional
paid in capital
|
55,959
|
49,695
|
|
Accumulated
deficit
|
(5,673)
|
(9,961)
|
|
Accumulated
other comprehensive income (loss)
|
(955)
|
122
|
|
Total
stockholders’ equity
|
49,332
|
39,857
|
|
Total
liabilities and stockholders’ equity
|
$89,413
|
$67,891
|
-5-
ACM RESEARCH, INC.
Condensed Consolidated Statements of Operations and Comprehensive
Loss
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||
|
|
2018
|
2017
|
2018
|
2017
|
|
|
(Unaudited)
|
(Unaudited)
|
||
|
|
( In thousands, except share and per share data)
|
( In thousands, except share and per share data)
|
||
|
Revenue
|
$23,179
|
$4,891
|
$53,795
|
$19,314
|
|
Cost of revenue
|
12,892
|
2,692
|
29,662
|
11,262
|
|
Gross profit
|
10,287
|
2,199
|
24,133
|
8,052
|
|
Operating expenses:
|
|
|
|
|
|
Sales and marketing
|
3,229
|
1,036
|
7,766
|
3,619
|
|
Research and development
|
2,264
|
1,209
|
6,224
|
3,076
|
|
General and administrative
|
1,390
|
1,264
|
6,312
|
4,422
|
|
Total operating expenses, net
|
6,883
|
3,509
|
20,302
|
11,117
|
|
Income (loss) from operations
|
3,404
|
(1,310)
|
3,831
|
(3,065)
|
|
Interest income
|
3
|
2
|
20
|
7
|
|
Interest expense
|
(112)
|
(33)
|
(364)
|
(197)
|
|
Other expense, net
|
902
|
(239)
|
1,213
|
(531)
|
|
Equity income in net income of affiliates
|
117
|
20
|
235
|
20
|
|
Income (loss) before income taxes
|
4,314
|
(1,560)
|
4,935
|
(3,766)
|
|
Income tax benefit
(expense)
|
(461)
|
278
|
(647)
|
(471)
|
|
Net income
(loss) attributable to ACM Research, Inc.
|
3,853
|
(1,282)
|
4,288
|
(4,237)
|
|
Less: Net income
(loss) attributable to non-controlling interests
|
-
|
(327)
|
-
|
(535)
|
|
Net income
(loss) attributable to ACM Research, Inc.
|
$3,853
|
$(955)
|
$4,288
|
$(3,702)
|
|
Comprehensive income
(loss)
|
|
|
|
|
|
Net
income (loss)
|
3,853
|
(1,282)
|
4,288
|
(4,237)
|
|
Foreign currency translation adjustment
|
(746)
|
228
|
(1,077)
|
492
|
|
Comprehensive income (loss)
|
3,107
|
(1,054)
|
3,211
|
(3,745)
|
|
Less: Comprehensive income
(loss) attributable to non-controlling interests
|
-
|
(237)
|
-
|
(347)
|
|
Total comprehensive income (loss) attributable to ACM Research,
Inc.
|
$3,107
|
$(817)
|
$3,211
|
$(3,398)
|
|
|
|
|
|
|
|
Net income (loss) attributable to ACM Research, Inc.
per common share :
|
|
|
|
|
|
Basic
|
$0.24
|
$(0.17)
|
$0.27
|
$(0.72)
|
|
Diluted
|
$0.21
|
$(0.17)
|
$0.24
|
$(0.72)
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding used in computing per share amounts:
|
|
|
|
|
|
Basic
|
15,915,864
|
5,581,637
|
15,714,310
|
5,148,255
|
|
Diluted
|
18,169,807
|
5,581,637
|
17,816,101
|
5,148,255
|
-6-
ACM RESEARCH, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
As described under “Use of Non-GAAP Financial Measures”
above, ACM Research presents non-GAAP gross margin, operating
income and net income (loss) as supplemental measures to GAAP
financial measures, each of which excludes stock-based compensation
(“SBC”) from the equivalent GAAP financial line items.
The following tables reconcile gross margin, operating income and
net income (loss) to the related non-GAAP financial
measures:
|
|
Three Months Ended September 30,
|
|||||
|
|
2018
|
2017
|
||||
|
|
Actual
|
|
Adjusted
|
Actual
|
|
Adjusted
|
|
|
(GAAP)
|
SBC
|
(Non-GAAP)
|
(GAAP)
|
SBC
|
(Non-GAAP)
|
|
|
(in thousands)
|
|||||
|
|
|
|
|
|
|
|
|
Revenue
|
$23,179
|
$-
|
$23,179
|
$4,891
|
$-
|
$4,891
|
|
Cost
of revenue
|
(12,892)
|
(25)
|
(12,867)
|
(2,692)
|
(5)
|
(2,687)
|
|
Gross
profit
|
10,287
|
(25)
|
10,312
|
2,199
|
(5)
|
2,204
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Sales
and marketing
|
(3,229)
|
(42)
|
(3,187)
|
(1,036)
|
(17)
|
(1,019)
|
|
Research
and development
|
(2,264)
|
(64)
|
(2,200)
|
(1,209)
|
(13)
|
(1,196)
|
|
General
and administrative
|
(1,390)
|
(280)
|
(1,110)
|
(1,264)
|
(308)
|
(956)
|
|
Income
(Loss) from operations
|
$3,404
|
$(411)
|
$3,815
|
$(1,310)
|
$(343)
|
$(967)
|
|
Net income (loss) attributable to ACM Research, Inc.
|
$3,853
|
$(411)
|
$4,264
|
$(955)
|
$(343)
|
$(612)
|
|
|
Nine Months Ended September 30,
|
|||||
|
|
2018
|
2017
|
||||
|
|
Actual
|
|
Adjusted
|
Actual
|
|
Adjusted
|
|
|
(GAAP)
|
SBC
|
(Non-GAAP)
|
(GAAP)
|
SBC
|
(Non-GAAP)
|
|
|
(in
thousands)
|
|||||
|
|
|
|
|
|
|
|
|
Revenue
|
$53,795
|
$-
|
$53,795
|
$19,314
|
$-
|
$19,314
|
|
Cost
of revenue
|
(29,662)
|
(44)
|
(29,618)
|
(11,262)
|
(15)
|
(11,247)
|
|
Gross
profit
|
24,133
|
(44)
|
24,177
|
8,052
|
(15)
|
8,067
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Sales
and marketing
|
(7,766)
|
(115)
|
(7,651)
|
(3,619)
|
(35)
|
(3,584)
|
|
Research
and development
|
(6,224)
|
(131)
|
(6,093)
|
(3,076)
|
(38)
|
(3,038)
|
|
General
and administrative
|
(6,312)
|
(2,481)
|
(3,831)
|
(4,422)
|
(1,904)
|
(2,518)
|
|
Income
(Loss) from operations
|
$3,831
|
$(2,771)
|
$6,602
|
$(3,065)
|
$(1,992)
|
$(1,073)
|
|
Net income (loss) attributable to ACM Research, Inc.
|
$4,288
|
$(2,771)
|
$7,059
|
$(3,702)
|
$(1,992)
|
$(1,710)
|
-7-