Ultra Clean Holdings (NASDAQ: UCTT) reported Q4 EPS of $0.23, $0.02 worse than the analyst estimate of $0.25. Revenue for the quarter came in at $257.4 million versus the consensus estimate of $249 million.

Fourth Quarter 2018 GAAP Financial Results

• Total revenue was $257.4 million, an increase of 10.0% compared to the third quarter and an increase of 3.4% compared to the same period a year ago.
• Gross margin was 17.9% compared to 15.0% last quarter and 17.7% a year ago. Operating margin was 4.0% compared to 0.4% last quarter and 8.8% for the same period last year.
• Net loss was $1.1 million or $0.03 per basic and diluted share. This compares to net loss of $6.0 million or $0.15 per basic and diluted share in the previous quarter, and net income of $20.8 million or $0.62 and $0.60 per basic and diluted share last year.
• Cash and cash equivalents were $144.1 million, a decrease of $16.2 million compared to the end of the third quarter.

Fourth Quarter Non-GAAP Financial Results

• Non-GAAP net income was $8.7 million, or $0.23 per diluted share. This compares to non-GAAP net income of $11.9 million or $0.30 per diluted share in the previous quarter and non-GAAP net income of $20.3 million or $0.59 for the prior year.
• Non-GAAP operating margin was 6.5% compared to 6.4% in the previous quarter and 9.5% in the same period a year ago.
• The Company has provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables included in this press release.

"A full quarter of revenue from our new services business, driven by our acquisition of Quantum, contributed to top line growth for the fourth quarter and delivered greater than 18 percent revenue growth for the year," said Jim Scholhamer, CEO. "We expect the overall semiconductor industry to remain challenged for the near-term so we are implementing a series of rigorous cost structure improvements. These initiatives will improve profitability without compromising our ability to react quickly by seizing opportunities with IDM's and OEM's when industry growth resumes."

GUIDANCE:

Ultra Clean Holdings sees Q1 2019 EPS of $0.09-$0.19, versus the consensus of $0.24. Ultra Clean Holdings sees Q1 2019 revenue of $230-250 million, versus the consensus of $244.04 million.

For earnings history and earnings-related data on Ultra Clean Holdings (UCTT) click here.