Ultra Clean Reports Second Quarter 2010 Financial Results

HAYWARD, Calif., July 26 /PRNewswire-FirstCall/ -- Ultra Clean Holdings, Inc. (Nasdaq: UCTT), a leading developer and supplier of critical subsystems for the semiconductor capital equipment, flat panel, medical, energy and research industries, today reported its financial results for the second quarter of fiscal year 2010 ended July 2, 2010.  Revenue for the second quarter was $105.9 million, an increase of 7.5% from the first quarter 2010 and an increase of 355.4% from the same period a year ago.  Gross margin for the second quarter was 14.0%, compared to 12.6% for the first quarter 2010 and (3.7)% for the same period a year ago. The company recorded net income of $5.7 million, or $0.25 per share, compared to net income of $3.9 million, or $0.17 per share, for the first quarter 2010 and a net loss of $14.1 million, or $(0.66) per share, for the second quarter of 2009.  The second quarter 2009 net loss and net loss per share is inclusive of a non-cash income tax valuation allowance of $7.0 million, or $(0.33) per share.

Cash at the end of the second quarter 2010 was $23.1 million, a decrease of $4.6 million from the prior quarter.  Net inventory was $55.1 million, a decrease of $1.6 million, compared to $56.7 million at the end of the first quarter.

Clarence Granger, Ultra Clean's Chairman and Chief Executive Officer stated: "In the second quarter of 2010 UCT performed very well, exceeding our revenue and earnings guidance.  Along with improving revenues and earnings per share, improvements in operating efficiency led to improved gross margins.  Also, we were able to support our customers, meeting all of their requirements during the quarter.  In addition to the continued growth in the semiconductor capital equipment market we continue to be optimistic about our growth opportunities in the other related markets we serve. We expect sustained expansion of our gross margin during the balance of the year as we further improve our manufacturing efficiencies and increase the utilization of our Shanghai and Singapore facilities."

Commenting on Ultra Clean's corporate guidance, Granger noted: "In the third quarter, we are projecting record revenues and earnings along with continued improvements in gross margin.  Revenue guidance for the third quarter is $118 million to $123 million, with earnings per share in the range of $0.29 to $0.33."

Ultra Clean will conduct a conference call today, Monday, July 26, 2010, beginning at 2:00 p.m. PDT at 888-561-5097 (domestic) and 706-679-7569 (international). A replay of the webcast will be available for fourteen days following the conference call at 800-642-1687 (domestic) and 706-645-9291 (international). The confirmation number for the live broadcast and replay is 86142972 (all callers). The conference call will also be webcast live and be available for fourteen days on our website.

About Ultra Clean Holdings, Inc.

Ultra Clean Holdings, Inc. is a leading developer and supplier of critical subsystems for the semiconductor capital equipment, flat panel, medical, energy and research industries. Ultra Clean offers its customers an integrated outsourced solution for gas delivery systems and other subassemblies, improved design-to-delivery cycle times, component neutral design and manufacturing and component testing capabilities. Ultra Clean's customers are primarily original equipment manufacturers for the semiconductor capital equipment, flat panel, medical, energy and research industries. Ultra Clean is headquartered in Hayward, California. Additional information is available at www.uct.com.

Safe Harbor Statement

The foregoing information contains, or may be deemed to contain, "forward- looking statements" (as defined in the US Private Securities Litigation Reform Act of 1995) which reflect our current views with respect to future events and financial performance. We use words such as "anticipates," "believes," "plan," "expect," "future,"' "intends," "may," "will," "should," "estimates," "predicts," "potential," "continue" and similar expressions to identify these forward-looking statements. Forward looking statements included in the press release include estimates made with respect to our third quarter 2010 revenue and earnings per share. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, our actual results may differ materially from the results predicted or implied by these forward- looking statements. These risks, uncertainties and other factors include, among others, those identified in "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations'' and elsewhere in our annual report on Form 10-K for the year ended January 1, 2010 and quarterly report on Form 10-Q for the quarter ended April 2, 2010, filed with the Securities and Exchange Commission. Ultra Clean Holdings, Inc. undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information future developments or otherwise.

SOURCE Ultra Clean Holdings, Inc.