Ichor (ICHR) Prelim. Q3 Results Miss Consensus
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Ichor Holdings, Ltd. (NASDAQ: ICHR), a leader in the design, engineering, and manufacturing of critical fluid delivery subsystems for semiconductor capital equipment, today announced preliminary third quarter 2021 financial results.
For the third quarter of 2021, Ichor expects to report:
- Revenue of approximately $263 million;
- Gross margin of 16.6% to 16.7% on both a GAAP and non‑GAAP basis; and
- Diluted earnings per share of $0.63 to $0.65 on a GAAP basis and $0.80 to $0.82 on a non‑GAAP basis.
(Consensus sees Q3 EPS of $0.99 on revenue of $306 million)
Commenting on the announcement, Jeffrey Andreson, chief executive officer, said, “As we discussed during our August conference call, in response to a sharp increase in COVID‑19 cases, in June 2021 the Malaysian government instituted an Enhanced Movement Control Order (EMCO), which impacted our Selangor weldment operations (located near Kuala Lumpur) through both on-site employee restrictions as well as a complete shutdown of all manufacturing in the region during early July. The facility shut down requirement impacted businesses in the state of Selangor but did not impact business located in most areas of the country, such as Penang. While we were able to reopen our factory in mid-July, once the government confirmed that Ichor was an essential business, we remained under the headcount limitations until the third week of August. With 50% of our weldment capacity located in Selangor, our overall output in Malaysia was reduced by 40% in the third quarter due to the EMCO restrictions. In alignment with our global manufacturing strategy, we were able to increase supply in our other sites as well as through other partners in our supply chain to offset a large portion of the reduced capacity; however, we were not able to completely offset the impact on our integration sites for fluid delivery subsystems and as a result our revenues for the quarter came in below our guidance range.” Mr. Andreson concluded, “There has been no change in demand for our products as we look to the fourth quarter and into 2022, and today our Malaysia operation is running at full capacity. We continue to see strengthening demand and expect that the fourth quarter will set a new quarterly revenue record for Ichor. Given our current visibility and assessment of supply chain dynamics, we expect fourth quarter 2021 revenues of approximately $290 million, plus or minus $15 million, with continued growth expected to extend into 2022.”
Third Quarter 2021 Earnings Conference Call Information
Just after 1:00 pm Pacific Time on November 2nd, we will issue our third quarter 2021 earnings press release. Both the earnings press release and supplemental financial information will be available on our investor website, https://ir.ichorsystems.com, after the market close. We will conduct a conference call to discuss our third quarter 2021 results and business outlook on November 2, 2021, at 1:30 p.m. Pacific Time.
To listen to a live webcast of the call, please visit our investor relations website at https://ir.ichorsystems.com, or go to the live link at https://webcast-eqs.com/ichorholdings11022021. To listen via telephone, please call (877) 407‑0989 (domestic) or +1 (201) 389‑0921 (international), conference ID: 13723666. After the call, an on-demand replay will be available at the same webcast link.
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