ACM Research(ACMR) - 2024 Q3 - Quarterly Report

Financial Performance - Revenue for Q3 2024 reached $203,976,000, a 21% increase from$ 168,569,000 in Q3 2023[16] - Gross profit for Q3 2024 was $104,834,000, compared to$ 88,514,000 in Q3 2023, reflecting an 18% growth[16] - Net income attributable to ACM Research, Inc. for Q3 2024 was $30,904,000, up from$ 25,679,000 in Q3 2023, representing a 20% increase[16] - Basic net income per share for Q3 2024 was $0.49, up from$ 0.43 in Q3 2023, a 14% increase[16] - Net income for the nine months ended September 30, 2024, was $92,163,000, an increase from$ 73,554,000 for the same period in 2023, representing a growth of approximately 25.3%[25] - For the three months ended September 30, 2024, net income was $38.672 million, compared to$ 30.994 million for the same period in 2023, representing a 24.5% increase[63] - The company reported a foreign currency translation adjustment of $17,089,000 in Q3 2024, compared to$ 4,015,000 in Q3 2023[16] Assets and Liabilities - Total current assets increased to $1,445,314 thousand as of September 30, 2024, up from$ 1,176,110 thousand at December 31, 2023, representing a growth of approximately 22.8%[13] - Total assets reached $1,794,175 thousand, up from$ 1,490,908 thousand, marking an increase of 20.4%[14] - Total liabilities grew to $725,092 thousand, compared to$ 564,746 thousand, which is an increase of 28.4%[14] - Stockholders' equity increased to $888,166 thousand from$ 767,390 thousand, representing a growth of 15.7%[14] - Current liabilities totaled $610,035 thousand, up from$ 500,659 thousand, indicating a rise of 21.8%[14] - Long-term borrowings increased to $106,069 thousand from$ 53,952 thousand, reflecting a growth of 96.8%[14] Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2024, was $63,855,000, compared to cash used in operating activities of$ (36,970,000) for the same period in 2023[25] - The company had net cash provided by financing activities of $77,025,000 for the nine months ended September 30, 2024, compared to$ 7,013,000 for the same period in 2023, indicating a substantial increase[26] - Cash, cash equivalents, and restricted cash at the end of the period on September 30, 2024, totaled $335,254,000, compared to$ 207,661,000 at the end of the same period in 2023, marking an increase of approximately 61.5%[27] - The company received net proceeds of RMB 22,478 ( $3,167) from the Nuode Asset Fund during the three months ended September 30, 2024[116] Expenses - Operating expenses for Q3 2024 totaled$ 60,650,000, a 10% increase from $55,341,000 in Q3 2023[16] - Research and development expenses increased to$ 27,837,000 in Q3 2024 from $26,151,000 in Q3 2023, indicating a 6% rise[16] - Stock-based compensation for the nine months ended September 30, 2024, was$ 40,792,000, significantly higher than $14,666,000 for the same period in 2023, reflecting an increase of approximately 178.5%[25] - The company recorded an income tax expense of$ 17,712,000 for the nine months ended September 30, 2024, compared to $11,235,000 for the same period in 2023, reflecting an increase of approximately 57.7%[153] Inventory and Receivables - Accounts receivable rose to$ 370,589 thousand, compared to $283,186 thousand at the end of 2023, indicating a 30.8% increase[13] - Inventories increased to$ 628,720 thousand from $545,395 thousand, reflecting a growth of 15.3%[13] - Total inventory increased to$ 628,720 thousand as of September 30, 2024, up from $545,395 thousand at December 31, 2023, driven by a rise in finished goods inventory[77] - Finished goods inventory value increased by$ 70,030 thousand, reflecting higher first-tools under evaluation by customers[79] Shareholder Information - The weighted average shares of common stock outstanding for Q3 2024 were 62,500,903, compared to 60,219,218 in Q3 2023[16] - During the nine months ended September 30, 2024, ACM issued 1,488,347 shares of Class A common stock upon option exercises, compared to 919,448 shares for the same period in 2023, representing a 62% increase[128] - As of September 30, 2024, the number of shares of Class A common stock issued and outstanding was 57,524,519, up from 56,036,172 on December 31, 2023, marking an increase of 2.6%[129] Strategic Developments - The company emphasizes that its operations in mainland China are conducted without using a variable interest entity, ensuring compliance with local regulations[5] - ACM Shanghai completed the purchase of additional equity interest in Ninebell for $16,737,000 on October 21, 2024, increasing its ownership to 36.4%[172] - The company acquired a commercial facility in Hillsboro, Oregon, for$ 7.75 million on October 1, 2024, aimed at expanding R&D and demonstration capabilities in the U.S. market[171] - ACM Research plans to offer up to 43.6 million ordinary shares in a private offering, which could generate gross proceeds of up to RMB 4.5 billion ($642.2 million) if fully consummated[189][190]