Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was 518.6million,downfrom563.3 million in the previous quarter, missing the midpoint of revenue guidance by approximately 12million[15][21]−Earningspershare(EPS)forthequarterwere0.28, compared to 0.51inthepriorquarter,primarilyduetolowerrevenueandhigheroperatingexpenses[19]−TotalgrossmarginforQ1was16.7457 million, down from 503.5millioninQ4,attributedtoweakeningdemand[15]−Servicesrevenueincreasedfrom59.8 million in Q4 to 61.6millioninQ1,primarilydrivenbytwotopcustomers[15]MarketDataandKeyMetricsChanges−ThecompanyanticipatesamodestdeclineindemandforQ22025,projectingtotalrevenuebetween475 million and 525million[21]−Thesemiconductormarketrecoveryisexpectedtobeslowerthanpreviouslyanticipated,withthecompanyexpectingtomaintainrevenuelevelsaround500 million per quarter for the foreseeable future [6][34] Company Strategy and Development Direction - The company is focusing on optimizing its operations and cost structures in response to current market conditions, including reviewing headcount and organizational structure [15][61] - A localized supply chain strategy has been initiated to mitigate future supply chain disruptions, enhancing resilience by securing reliable local supply sources [10] - The company is committed to maintaining technology leadership and manufacturing excellence while reinforcing its competitive position in the semiconductor industry [13] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the ongoing geopolitical landscape and its impact on the semiconductor market, indicating that uncertainty may extend the current downturn [6][34] - Despite challenges, management remains optimistic about long-term growth in the semiconductor industry, citing its essential role in transformative megatrends [13] Other Important Information - The company has repurchased 182,000 shares at a cost of 3.4millionaspartofitssharerepurchaseprogram[20]−ThetaxrateforQ1was2012 million shortfall in revenue guidance [26] Question: What is the revenue percentage from China for March? - Management refrained from providing specific numbers but indicated a slight revenue increase anticipated in Q2, with confidence in the China strategy [28][30] Question: Will the current weakness have a longer-term impact? - Management acknowledged uncertainty in the market but indicated that they do not expect a dramatic downturn, although minor fluctuations may occur [34] Question: What impact will tariffs have on the business? - Management has been actively analyzing potential tariff impacts and believes that the long-term effects will be minimal due to their "China for China" strategy [39][42] Question: Can you provide an update on the CEO search? - The search for a new CEO is ongoing, with an expected timeline of three to four more months [80]
Ultra Clean (UCTT)2025-04-29 01:36