ACM Research Reports Third Quarter 2022 Results

FREMONT, Calif., Nov. 04, 2022 (GLOBE NEWSWIRE) — ACM Research, Inc. (“ACM” or the “Company”) (NASDAQ: ACMR), a number one provider of wafer processing options for semiconductor and superior wafer-level packaging purposes, as we speak reported monetary outcomes for its third fiscal quarter ended September 30, 2022.

“Third quarter results represent another solid performance, with record revenue as operations largely returned to normal following the COVID-related restrictions in the first half,” stated Dr. David Wang, ACM’s President and Chief Executive Officer. “Revenue nearly doubled and shipments grew by 64% year-over-year, with strong performance from our flagship cleaning tools and incremental contribution from our new ECP and furnace products.”

Dr. Wang continued, “We saw good progress at major semiconductor manufacturers outside of China. The evaluation is going well of two cleaning tools at the U.S. facility of a large U.S.-based manufacturer, and we are gaining traction with potential new customers in Europe and other regions. Construction of our Lingang production and R&D center is on track, and we are in the final stages of selecting a site to expand our R&D and production facilities in South Korea.”

“We have lowered the upper end of our 2022 revenue outlook to reflect the impact of the new U.S. trade policies and supply chain constraints. We anticipate our PRC-based customers to adapt to the new regulations, and to increase investments in capacity for mature nodes and power devices. Meanwhile, we are accelerating our efforts to participate in advanced node development for leading-edge fabs of global customers.”

(1) Reconciliations to U.S. usually accepted accounting rules (“GAAP”) monetary measures from non-GAAP monetary measures are introduced beneath underneath “Reconciliation of GAAP to Non-GAAP Financial Measures.” Non-GAAP monetary measures exclude stock-based compensation and, with respect to internet revenue (loss) attributable to ACM Research, Inc. and primary and diluted earnings per share, additionally exclude unrealized loss on buying and selling securities.

(2) Prior interval outcomes have been adjusted to mirror the three-for-one inventory cut up effected within the type of a inventory dividend in March 2022.

Outlook

For fiscal 12 months 2022, the Company now expects income to be within the vary of $365 million to $385 million, versus the earlier steerage vary of $365 million to $405 million. The vary of the Company’s 2022 outlook displays, amongst different issues, the influence from the brand new US commerce coverage, provide chain constraints, varied spending eventualities for the manufacturing ramps of key clients, and the timing of acceptances for first instruments underneath analysis within the discipline, and assumes stability with respect to the COVID-19 pandemic in China.

Impact of New Department of Commerce’s Bureau of Industry and Security Controls on Exports

On October 7, 2022, the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) imposed further controls on exports to and transfers throughout the PRC regarding superior built-in circuit (“IC”) merchandise, sure IC manufacturing gear and know-how, and supercomputers. Several of the related controls, which encompass export license necessities with a presumption of denial, deal with exports of specified merchandise from the U.S. when destined to PRC-based fabrication amenities producing chips assembly sure superior node standards or destined to the PRC for the manufacturing of things assembly the parameters of sure export management classification numbers (“ECCNs”) on the Commerce Control List (“CCL”) (and help by U.S. individuals of the provision of such merchandise that aren’t topic to U.S. export controls).

As of now, our subsidiary ACM Research (Shanghai), Inc. (“ACM Shanghai”) has decided that a number of of its clients have PRC-based amenities that meet the desired standards, and has additionally decided that a number of of its merchandise could also be gadgets assembly the parameters of the recognized ECCNs. Accordingly, ACM could not be capable of import elements from the U.S. to help device shipments to such amenities, or to import elements to be embedded into instruments outlined by such ECCN’s, if a license is required for, and the presumption of denial applies to, such imports. ACM Shanghai is working with its varied suppliers to proceed to supply device elements that we and our suppliers assess will not be impacted by the brand new controls, to allow shipments to its buyer base. ACM is constant to judge the results of the brand new restrictions, together with these imposed on U.S. individuals. In the curiosity of guaranteeing compliance with the brand new laws, ACM has adjusted the actions of a few of its U.S. individuals and its provide chain throughout these efforts.

Operating Highlights and Recent Announcements

• Shipments. Total shipments within the third quarter of 2022 have been $163 million, versus $99 million within the third quarter of 2021. Total shipments embrace deliveries for income within the quarter and deliveries of first device methods awaiting buyer acceptance for potential income in future quarters.
• Launched and Shipped First New Furnace Tool to China-Based Foundry Customer. In the third quarter, ACM expanded its 300mm Ultra Fn furnace dry processing platform with the introduction of its Ultra Fn A furnace device. The Ultra Fn A system provides thermal atomic layer deposition to ACM’s in depth record of supported furnace purposes. The first Ultra Fn A furnace device has been shipped to a top-tier China-based foundry producer, and is anticipated to be certified in 2023.

Financial Summary

Unless in any other case famous, the next figures discuss with the third quarter of 2022 and comparisons are with the third quarter of 2021.

• Revenue was $133.7 million, up 99.5%, reflecting a rise in income from single wafer cleansing, Tahoe and semi-critical cleansing, and incremental contribution from ECP, furnace and different applied sciences.
• Gross margin was 49.3%, up from 44.3%. Non-GAAP gross margin, which excludes stock-based compensation, was 49.4%, up from 44.5%. Gross margin exceeded the vary of 40% to 45% mirrored within the Company’s long-term business mannequin. The Company expects gross margin to range from interval to interval as a consequence of quite a lot of components, reminiscent of gross sales quantity, product combine and favorable foreign money impacts from a stronger greenback versus the Chinese RMB.

• Operating bills have been $34.3 million, a rise of 91.9%. Non-GAAP working bills, which exclude the impact of stock-based compensation, have been $32.6 million, up 94.8%. Operating bills as a % of income decreased to 25.7% from 26.7%. Non-GAAP working bills as a % of income decreased to 24.4% from 25.0%.
• Operating revenue was $31.6 million, up from $11.8 million. Non-GAAP working revenue, which excludes the impact of stock-based compensation, was $33.5 million, up from $13.1 million.
• Unrealized loss on buying and selling securities was $5.3 million. The loss displays the change in market worth of the oblique funding by ACM Shanghai within the STAR Market IPO shares of Semiconductor Manufacturing International Corporation (“SMIC”). The worth is marked-to-market quarterly and is excluded within the non-GAAP monetary metrics.
• Realized acquire from sale of buying and selling securities was $1.1 million because of the sale of a portion of ACM Shanghai’s shares of SMIC, and which generated internet proceeds of $4.5 million.
• Other revenue (expense), internet was $7.2 million, which displays $6.4 million as a consequence of good points acknowledged from the influence of alternate charges on overseas currency-denominated working capital transactions, versus ($0.3) million.
• Income tax expense was $10.5 million, in comparison with a good thing about $0.3 million. As a results of a change in Section 174 of the U.S. Internal Revenue Code of 1986 that grew to become efficient on January 1, 2022, the efficient tax fee for 2022 has elevated, primarily as a consequence of a brand new requirement to capitalize and amortize beforehand deductible analysis and experimental bills. The Company’s tax provision for the 9 months ended September 30, 2022 assumes the rule is not going to be overturned and is predicated on capitalization of all of its R&D bills for tax functions.
• Net revenue attributable to ACM Research, Inc. was $21.0 million, in comparison with internet revenue of $10.2 million. Non-GAAP internet revenue attributable to ACM Research, Inc., which excludes the impact of stock-based compensation and unrealized loss on buying and selling securities, was $28.2 million, as in comparison with non-GAAP internet revenue of $12.4 million.
• Net revenue per diluted share attributable to ACM Research, Inc. was $0.32, in comparison with $0.15. Non-GAAP internet revenue per diluted share, which excludes the impact of stock-based compensation and unrealized loss on buying and selling securities, was $0.42, in comparison with $0.19.
• Cash and money equivalents have been $336.3 million at September 30, 2022, versus $323.7 million at June 30, 2022. Cash and money equivalents, plus restricted money and time deposits have been $473.2 million at September 30, 2022, versus $468.9 million at June 30, 2022.

Conference Call Details

A convention name to debate outcomes can be held on Friday, November 4, 2022, at 8:00 a.m. Eastern Time (8:00 p.m. China Time). To be a part of the convention name through phone, members should use the next hyperlink to finish a web based registration course of. Upon registering, every participant will obtain e mail directions to entry the convention name, together with dial-in data and a PIN quantity permitting entry to the convention name. This pre-registration course of is designed by the operator to scale back delays as a consequence of operator congestion when accessing the reside name.

Online Registration: https://register.vevent.com/register/BI0816b9546a0844788d1501bc0975e22f

Participants who haven’t pre-registered could be a part of the webcast by accessing the hyperlink at ir.acmrcsh.com/occasions.

A reside and archived webcast can be obtainable on the Investors part of the ACM web site at www.acmrcsh.com.

Use of Non-GAAP Financial Measures

ACM presents non-GAAP gross margin, working bills, working revenue, internet revenue (loss) attributable to ACM Research, Inc. and primary and diluted earnings per share as supplemental measures to GAAP monetary measures relating to ACM’s operational efficiency. These supplemental measures exclude the influence of stock-based compensation, which ACM doesn’t consider is indicative of its core working outcomes. In addition, non-GAAP internet revenue attributable to ACM Research, Inc. and primary and diluted earnings per share exclude non-cash change in truthful worth of economic belongings and liabilities and unrealized acquire on buying and selling securities, which ACM additionally believes will not be indicative of its core working outcomes. A reconciliation of every non-GAAP monetary measure to probably the most immediately comparable GAAP monetary measure is offered beneath underneath “Reconciliation of GAAP to non-GAAP Financial Measures.”

ACM believes these non-GAAP monetary measures are helpful to buyers in assessing its working efficiency. ACM makes use of these monetary measures internally to judge its working efficiency and for planning and forecasting of future intervals. Financial analysts could deal with and publish each historic outcomes and future projections primarily based on the non-GAAP monetary measures. ACM additionally believes it’s in the perfect pursuits of buyers for ACM to supply this non-GAAP data.

While ACM believes these non-GAAP monetary measures present helpful supplemental data to buyers, there are limitations related to using these non-GAAP monetary measures. These non-GAAP monetary measures might not be reported by opponents, they usually might not be immediately similar to equally titled measures of different corporations as a consequence of variations in calculation methodologies. The non-GAAP monetary measures will not be an alternative choice to GAAP data and will not be meant to be thought-about in isolation or as an alternative choice to comparable GAAP monetary measures. They needs to be used solely as a complement to GAAP data and needs to be thought-about solely along side ACM’s consolidated monetary statements ready in accordance with GAAP.

Forward-Looking Statements

Certain statements contained within the third and fourth paragraphs of this press launch, and underneath the heading “Outlook” and within the bullet “Launched and Shipped First New Furnace Tool to China-Based Foundry Customer” underneath the heading “Operating Highlights and Recent Announcements” above will not be historic information and could also be forward-looking statements throughout the which means of the Private Securities Litigation Reform Act of 1995. Forward-looking statements embrace statements relating to the intent, perception and present expectations with respect to: the Company’s evaluation of alternatives with potential clients within the U.S., Europe and different areas; development and collection of the Company’s Lingang and South Korea manufacturing and R&D amenities; the Company’s expectations with respect to a renewed focus of investments in mature nodes and energy units; the Company’s assumptions with respect to the COVID-19 pandemic, buyer demand, provide chain stability, and acceptances of instruments; and the influence of the brand new U.S. Department of Commerce commerce laws on the Company’s business. Forward-looking statements are primarily based on ACM administration’s present expectations and beliefs, and contain quite a few dangers and uncertainties which can be troublesome to foretell and that would trigger precise outcomes to vary materially from these said or implied by the forward-looking statements. Those dangers and uncertainties embrace, however will not be restricted to, the next, any of which might be exacerbated even additional by the persevering with COVID-19 outbreak in China and globally: anticipated buyer orders or recognized market alternatives could not develop or develop as anticipated; buyer orders already acquired could also be postponed or canceled; ACM could also be unable to acquire the qualification and acceptance of its delivered instruments when anticipated or in any respect, which might delay or preclude ACM’s recognition of income from the sale of these instruments; suppliers could not be capable of meet ACM’s calls for on a well timed foundation; ACM’s applied sciences and instruments could not acquire market acceptance; ACM could also be unable to compete successfully by, amongst different issues, enhancing its current instruments, including further manufacturing capability and fascinating further main clients; ACM could incur important bills lengthy earlier than it may possibly acknowledge income from new merchandise, if in any respect, because of the prices and size of analysis, improvement, manufacturing and buyer analysis course of cycles; unstable international financial, market, business and different situations might lead to sharply decrease demand for merchandise containing semiconductors and for ACM’s merchandise and in disruption of capital and credit score markets; ACM’s failure to efficiently handle its operations, together with its lack of ability to rent, prepare, combine and handle further certified engineers for analysis and improvement actions; and commerce laws, together with these not too long ago printed by the U.S. Department of Commerce imposing sure restrictions on gear shipments and business practices with China-based semiconductor producers, foreign money fluctuations, political instability and struggle, all of which can materially and adversely have an effect on ACM as a consequence of its substantial non-U.S. buyer and provider base and its substantial non-U.S. manufacturing operations. An extra description of those dangers, uncertainties and different issues may be present in filings ACM makes with the U.S. Securities and Exchange Commission. Because forward-looking statements contain dangers and uncertainties, precise outcomes and occasions could differ materially from outcomes and occasions at the moment anticipated by ACM. ACM undertakes no obligation to publicly replace these forward-looking statements to mirror occasions or circumstances that happen after the date hereof or to mirror any change in its expectations with regard to those forward-looking statements or the incidence of unanticipated occasions.

About ACM Research, Inc.

The Company develops, manufactures and sells semiconductor course of gear for single-wafer or batch moist cleansing, electroplating, stress-free sharpening and thermal processes which can be crucial to superior semiconductor machine manufacturing, in addition to wafer-level packaging. The Company is dedicated to delivering custom-made, excessive efficiency, cost-effective course of options that semiconductor producers can use in quite a few manufacturing steps to enhance productiveness and product yield.

© ACM Research, Inc. ULTRA C and the ACM Research brand are logos of ACM Research, Inc. For comfort, these logos seem on this press launch with out ™ symbols, however that observe doesn’t imply that ACM is not going to assert, to the fullest extent underneath relevant legislation, its rights to the logos.

ACM RESEARCH, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures

As described underneath “Use of Non-GAAP Financial Measures” above, ACM presents non-GAAP gross margin, working bills, working revenue, internet revenue attributable to ACM Research, Inc., and primary and diluted earnings per share as supplemental measures to GAAP monetary measures, every of which excludes stock-based compensation (SBC) from the equal GAAP monetary line gadgets. In addition, non-GAAP internet revenue attributable to ACM Research, Inc., and primary and diluted earnings per share exclude unrealized acquire on buying and selling securities. The following desk reconciles gross margin, working bills, working revenue, internet revenue attributable to ACM Research, Inc., and primary and diluted earnings per share to the associated non-GAAP monetary measures: