ACM Research Reports Third Quarter 2024 Results
ACM Research Reports Third Quarter 2024 Results . (MENAFN - GlobeNewsWire - Nasdaq) FREMONT, Calif., Nov. 07, 2024 (GLOBE NEWSWIRE) -- ACM Research, Inc. (–ACM–) (NASDAQ: ACMR), a leading supplier of wafer processing solutions for semiconductor and ...
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(MENAFN- GlobeNewsWire - Nasdaq) FREMONT, Calif., Nov. 07, 2024 (GLOBE NEWSWIRE) -- ACM Research, (“ACM”) (NASDAQ: ACMR), a leading supplier of wafer processing solutions for and advanced wafer-level packaging applications, today reported results for its third quarter ended September 30, 2024. "I am pleased to report another strong quarter for ACM, with record revenue and shipments, good profitability, and positive cash flow from operations," said ACM's President and Chief Executive Officer, Dr. David Wang. "We believe our results demonstrate ACM's role as an innovator, delivering world-class tools that drive value for our customers and strengthen our position in the global market. Tahoe is gaining momentum with multiple logic and memory customers in production. This tool now delivers the same advanced cleaning performance as single-wafer tools, and at the same time up to 75% reduction of sulfuric acid use. We also believe the unique approach of our new panel products – including the Ultra ECP ap-p Horizontal Plating tool, the Ultra C vac-p Flux Cleaning tool, and the Ultra C bev-p Bevel Etching Tool – position ACM to become a significant contributor to the global adoption of AI chip manufacturing.” Dr. Wang continued, "Looking ahead, we anticipate continued growth of our business in mainland China through market share gains and new product ramps. We have begun initial operations at our Lingang facility, and we remain committed to support major customers in the US, Europe, and Southeast Asia. Our near-term outlook has improved, and as a result, we have raised our 2024 revenue outlook."

Three Months Ended September 30, GAAP Non-GAAP(1) 2024 2023 2024 2023 (dollars in thousands, except EPS) Revenue $ 203,976 $ 168,569 $ 203,976 $ 168,569 Gross margin 51.4 % 52.5 % 51.6 % 52.9 % Income from operations $ 44,184 $ 33,173 $ 56,065 $ 43,754 Net income attributable to ACM Research, Inc. $ 30,904 $ 25,679 $ 42,372 $ 37,579 Basic EPS $ 0.49 $ 0.43 $ 0.68 $ 0.62 Diluted EPS $ 0.45 $ 0.39 $ 0.63 $ 0.57





Nine Months Ended September 30, GAAP Non-GAAP(1) 2024 2023 2024 2023 (dollars in thousands, except EPS) Revenue $ 558,647 $ 387,402 $ 558,647 $ 387,402 Gross margin 50.3 % 50.9 % 50.6 % 51.1 % Income from operations $ 107,009 $ 72,465 $ 147,801 $ 87,131 Net income attributable to ACM Research, Inc. $ 72,547 $ 59,649 $ 114,490 $ 78,743 Basic EPS $ 1.17 $ 0.99 $ 1.85 $ 1.31 Diluted EPS $ 1.07 $ 0.90 $ 1.70 $ 1.19





(1) Reconciliations to U.S. generally accepted accounting principles (“GAAP”) financial measures from non-GAAP financial measures are presented below under“Reconciliation of GAAP to Non-GAAP Financial Measures.” Non-GAAP financial measures exclude stock-based compensation and, with respect to net income (loss) attributable to ACM Research, Inc. and basic and diluted earnings per share, also exclude unrealized gain (loss) on short-term investments.

Outlook

ACM has raised its revenue guidance range for fiscal year 2024 to a range of $725 million to $745 million from the prior range of $695 million to $735 million. This expectation is based on ACM management's current assessment of the continuing impact from international trade policy, together with various expected spending scenarios of key customers, supply chain constraints, and the timing of acceptances for first tools under evaluation in the field, among other factors.

Operating Highlights and Recent Announcements

Shipments. Total shipments in the third quarter of 2024 were $261 million, up 23% from the third quarter of 2023. Total shipments include deliveries for revenue in the quarter and deliveries of first tool systems awaiting customer acceptance for potential revenue in future quarters.



Major Performance Breakthrough for Flagship Ultra C Tahoe Cleaning Tool . The upgraded Ultra C Tahoe now achieves the performance of standalone single-wafer cleaning tools on low-to-medium temperature sulfuric peroxide mix (SPM) processes. The hybrid architecture delivers enhanced cleaning performance, high throughput, and process flexibility, with an up to 75% reduction in chemical consumption. The upgraded Ultra C Tahoe is now in production at several high-volume customer facilities in mainland China. Additional logic and memory customers are evaluating the tool, and we expect to deliver additional units through the end 2024.

Launched Ultra C bev-p Panel Bevel Etching Tool for Panel-Level Packaging Applications. The new tool is specifically designed for bevel etching and cleaning in copper-related processes and is capable of handling both the front and back side etching within a single system. This capability enhances process efficiency and product reliability.

Received Orders for Wafer-Level Packaging Tools from U.S. Customer and R&D Center. ACM has received purchase orders for four wafer-level packaging tools, including two from a U.S.-based customer and two from a U.S.-based research and development (R&D) center. The four tools support a range of advanced packaging processes and are scheduled for delivery in the first half of 2025. Completed Purchase of Commercial Facility in Oregon. On October 1, 2024, ACM completed the purchase of a 39,500 square foot facility, including a 5,200 square foot functional clean room. This facility is intended to augment ACM's current Oregon facility and further expand ACM's R&D and demonstration capability in the U.S. market.

Opening of R&D and Production Facility . On October 20, 2024, ACM Shanghai celebrated the official opening of its new R&D and production facility in Lingang, China.



Third Quarter 2024 Financial Summary

Unless otherwise noted, the following figures refer to the third quarter of 2024 and comparisons are with the third quarter of 2023.



Revenue was $204.0 million, up 21%, reflecting higher sales of single wafer cleaning, Tahoe and semi-critical cleaning equipment and ECP (front-end and packaging), furnace and other technologies, partly offset by lower sales of advanced packaging (excluding ECP), services & spares.

Gross margin was 51.4% versus 52.5%. Non-GAAP gross margin, which excludes stock-based compensation, was 51.6% versus 52.9%. Gross margin exceeded ACM's long-term business model range of 40% to 45%. ACM expects gross margin to vary from period to period due to a variety of factors, such as product mix, currency impacts and sales volume.

Operating expenses were $60.7 million, an increase of 10%. Operating expenses as a percentage of revenue decreased to 29.7% from 32.8%. Non-GAAP operating expenses, which exclude the effect of stock-based compensation, were $49.2 million, up 8.5%. Non-GAAP operating expenses as a percentage of revenue decreased to 24.1% from 26.9%.

Operating income was $44.2 million, compared to $33.2 million. Operating margin was 21.7% compared to 19.7%. Non-GAAP operating income, which excludes the effect of stock-based compensation, was $56.1 million, compared to $43.8 million. Non-GAAP operating margin, which excludes stock-based compensation, was 27.5% compared to 26.0%.

Unrealized gain (loss) on short-term investments was $0.4 million, compared to an unrealized gain (loss) of $(1.3) million. Unrealized gain (loss) reflects the change in market value of the investments by ACM's principal operating subsidiary, ACM Research (Shanghai), Inc. The value is marked-to-market quarterly and is excluded in the non-GAAP financial metrics.

Income tax expense was $4.0 million, compared to $0.7 million.

Net income attributable to ACM Research, Inc. was $30.9 million, compared to $25.7 million. Non-GAAP net income attributable to ACM Research, Inc., which excludes the effect of stock-based compensation and unrealized gain (loss) on short-term investments, was $42.4 million, compared to $37.6 million.

Net income per diluted share attributable to ACM Research, Inc. was $0.45, compared to $0.39. Non-GAAP net income per diluted share, which excludes the effect of stock-based compensation and unrealized gain (loss) on short-term investments, was $0.63, compared to $0.57. Cash and cash equivalents, plus restricted cash and short-term and long-term time deposits were $369.1 million at September 30, 2024, compared to $366.8 million at June 30, 2024.



Conference Call Details

A conference call to discuss results will be held on Thursday, November 7, 2024, at 8:00 a.m. Eastern Time (9:00 p.m. China Time). To join the conference call via telephone, participants must use the following link to complete an online registration process. Upon registering, each participant will receive email instructions to access the conference call, including dial-in information and a PIN number allowing access to the conference call. This pre-registration process is designed by the operator to reduce delays due to operator congestion when accessing the live call.

Online Registration:

Participants who have not pre-registered may join the webcast by accessing the link at ir.acmrcsh.com/events.

A live and archived webcast will be available on the Investors section of the ACM website at .

Use of Non-GAAP Financial Measures

ACM presents non-GAAP gross margin, operating expenses, operating income, net income attributable to ACM Research, Inc. and basic and diluted earnings per share as supplemental measures to GAAP financial measures regarding ACM's operational performance. These supplemental measures exclude the impact of stock-based compensation, which ACM does not believe is indicative of its core operating results. In addition, non-GAAP net income attributable to ACM Research, Inc. and basic and diluted earnings per share exclude the effect of stock-based compensation and unrealized gain (loss) on short-term investments, which ACM also believes are not indicative of its core operating results. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is provided below under“Reconciliation of GAAP to non-GAAP Financial Measures.”

ACM believes these non-GAAP financial measures are useful to investors in assessing its operating performance. ACM uses these financial measures internally to evaluate its operating performance and for planning and forecasting of future periods. Financial analysts may focus on and publish both historical results and future projections based on the non-GAAP financial measures. ACM also believes it is in the best interests of investors for ACM to provide this non-GAAP information.

While ACM believes these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures may not be reported by competitors, and they may not be directly comparable to similarly titled measures of other companies due to differences in calculation methodologies. The non-GAAP financial measures are not an alternative to GAAP information and are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures. They should be used only as a supplement to GAAP information and should be considered only in conjunction with ACM's consolidated financial statements prepared in accordance with GAAP.

Forward-Looking Statements

Certain statements contained in this press release are not historical facts and may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as“plans,”“expects,”“believes,”“anticipates,”“designed,” and similar words are intended to identify forward-looking statements. Forward-looking statements are based on ACM management's current expectations and beliefs, and involve a number of risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from those stated or implied by the forward-looking statements. A description of certain of these risks, uncertainties and other matters can be found in filings ACM makes with the U.S. Securities and Exchange Commission, all of which are available at Because forward-looking statements involve risks and uncertainties, actual results and events may differ materially from results and events currently expected by ACM. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. ACM undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in its expectations with regard to these forward-looking statements or the occurrence of unanticipated events.

About ACM Research, Inc.

ACM develops, manufactures and sells semiconductor process equipment for single-wafer or batch wet cleaning, electroplating, stress-free polishing, vertical furnace processes, Track and PECVD, which are critical to advanced semiconductor device manufacturing and wafer-level packaging. ACM is committed to delivering customized, high performance, cost-effective process solutions that semiconductor manufacturers can use in numerous manufacturing steps to improve productivity and product yield. For more information, visit .

© ACM Research, Inc. ULTRA C and the ACM Research logo are trademarks of ACM Research, Inc. For convenience, these trademarks appear in this press release without TM symbols, but that practice does not mean that ACM will not assert, to the fullest extent under applicable law, its rights to the trademarks.

For investor and media inquiries, please contact:

In the United States: The Blueshirt Group Steven C. Pelayo, CFA (360)808-5154 ... In China: The Blueshirt Group Asia Gary Dvorchak, CFA +86 (138) 1079-1480 ...





ACM RESEARCH, INC.

Condensed Consolidated Balance Sheets September 30, 2024 December 31, 2023 (Unaudited) (In thousands) Assets Current assets: Cash and cash equivalents $ 333,472 $ 182,090 Restricted cash 1,782 1,083 Short-term time deposits 20,304 80,524 Short-term investment 20,351 21,312 Accounts receivable, net 370,589 283,186 Other receivables 57,849 40,065 Inventories, net 628,720 545,395 Advances to related party 1,453 2,432 Prepaid expenses 10,794 20,023 Total current assets 1,445,314 1,176,110 Property, plant and equipment, net 250,099 201,848 Land use right, net 8,320 8,367 Operating lease right-of-use assets, net 5,680 7,026 Intangible assets, net 2,838 2,538 Long-term time deposits 13,517 40,818 Deferred tax assets 13,400 20,271 Long-term investments 33,655 27,880 Other long-term assets 21,352 6,050 Total assets $ 1,794,175 $ 1,490,908 Liabilities and Equity Current liabilities: Short-term borrowings $ 33,795 $ 31,335 Current portion of long-term borrowings 30,670 6,783 Related party accounts payable 15,392 11,407 Accounts payable 170,810 141,814 Advances from customers 215,678 181,368 Deferred revenue 10,138 3,687 Income taxes payable 6,796 6,401 FIN-48 payable 8,991 12,149 Other payables and accrued expenses 115,388 102,951 Current portion of operating lease liability 2,377 2,764 Total current liabilities 610,035 500,659 Long-term borrowings 106,069 53,952 Long-term operating lease liability 3,303 4,262 Other long-term liabilities 5,685 5,873 Total liabilities 725,092 564,746 Commitments and contingencies Equity: Stockholders' equity: Class A Common stock 6 6 Class B Common stock 1 1 Additional paid-in capital 669,540 629,845 Retained earnings 229,374 156,827 Statutory surplus reserve 30,060 30,060 Accumulated other comprehensive loss (40,815 ) (49,349 ) Total ACM Research, Inc. stockholders' equity 888,166 767,390 Non-controlling interests 180,917 158,772 Total equity 1,069,083 926,162 Total liabilities and equity $ 1,794,175 $ 1,490,908





ACM RESEARCH, INC.

Condensed Consolidated Statements of Operations and Comprehensive Income Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (Unaudited) ( In thousands, except share and per share data) Revenue $ 203,976 $ 168,569 $ 558,647 $ 387,402 Cost of revenue 99,142 80,055 277,908 190,263 Gross profit 104,834 88,514 280,739 197,139 Operating expenses: Sales and marketing 15,759 16,803 47,067 37,579 Research and development 27,837 26,151 77,723 60,244 General and administrative 17,054 12,387 48,940 26,851 Total operating expenses 60,650 55,341 173,730 124,674 Income from operations 44,184 33,173 107,009 72,465 Interest income 2,967 2,152 7,122 6,283 Interest expense (1,208 ) (640 ) (2,923 ) (1,984 ) Realized gain from sale of short-term investments 171 656 444 8,569 Unrealized gain (loss) on short-term investments 413 (1,319 ) (1,151 ) (4,428 ) Other income (expense), net (5,164 ) (2,150 ) (727 ) 156 Income (loss) from equity method investments 1,316 (160 ) 101 3,728 Income before income taxes 42,679 31,712 109,875 84,789 Income tax expense (4,007 ) (718 ) (17,712 ) (11,235 ) Net income 38,672 30,994 92,163 73,554 Less: Net income attributable to non-controlling interests 7,768 5,315 19,616 13,905 Net income attributable to ACM Research, Inc. $ 30,904 $ 25,679 $ 72,547 $ 59,649 Comprehensive income (loss): Net income 38,672 30,994 92,163 73,554 Foreign currency translation adjustment, net of tax 17,089 4,015 10,376 (21,831 ) Comprehensive Income 55,761 35,009 102,539 51,723 Less: Comprehensive income attributable to non-controlling interests 10,842 7,768 21,458 11,882 Comprehensive income (loss) attributable to ACM Research, Inc. $ 44,919 $ 27,241 $ 81,081 $ 39,841 Net income attributable to ACM Research, Inc. per common share: Basic $ 0.49 $ 0.43 $ 1.17 $ 0.99 Diluted $ 0.45 $ 0.39 $ 1.07 $ 0.90 Weighted average common shares outstanding used in computing per share amounts: Basic 62,500,903 60,219,218 62,017,257 59,953,144 Diluted 66,671,526 65,450,941 66,512,143 64,834,051





ACM RESEARCH, INC.

Total Revenue by Product Category and by Region Three Months Ended

September 30, Nine Months Ended

September 30, 2024 2023 2024 2023 (Unaudited) ($ in thousand) Single wafer cleaning, Tahoe and semi-critical cleaning equipment $ 160,985 $ 132,417 $ 423,676 $ 281,559 ECP (front-end and packaging), furnace and other technologies 34,600 25,508 99,362 71,223 Advanced packaging (excluding ECP), services & spares 8,391 10,644 35,609 34,620 Total Revenue By Product Category $ 203,976 $ 168,569 $ 558,647 $ 387,402





Three Months Ended

September 30, Nine Months Ended

September 30, 2024 2023 2024 2023 Mainland China $ 203,672 $ 168,302 $ 552,642 $ 375,528 Other Regions 304 267 6,005 11,874 Total Revenue By Region $ 203,976 $ 168,569 $ 558,647 $ 387,402





ACM RESEARCH, INC.

Reconciliation of GAAP to Non-GAAP Financial Measures



As described under“Use of Non-GAAP Financial Measures” above, ACM presents non-GAAP gross margin, operating expenses, operating income, net income attributable to ACM Research, Inc., and basic and diluted earnings per share as supplemental measures to GAAP financial measures, each of which excludes stock-based compensation (“SBC”) from the equivalent GAAP financial line items. In addition, non-GAAP net income attributable to ACM Research, Inc., and basic and diluted earnings per share exclude unrealized gain (loss) on short-term investments. The following tables reconcile gross margin, operating expenses, operating income, net income attributable to ACM Research, Inc., and basic and diluted earnings per share to the related non-GAAP financial measures:

Three Months Ended September 30, 2024 2023 Actual

(GAAP) SBC Other non-

operating adjustments Adjusted

(Non-GAAP) Actual

(GAAP) SBC Other non-

operating adjustments Adjusted

(Non-GAAP) (In thousands) Revenue $ 203,976 $ - $ - $ 203,976 $ 168,569 $ - $ - $ 168,569 Cost of revenue (99,142 ) (447 ) - (98,695 ) (80,055 ) (588 ) - (79,467 ) Gross profit 104,834 (447 ) - 105,281 88,514 (588 ) - 89,102 Gross margin 51.4 % 0.2 % - 51.6 % 52.5 % 0.3 % - 52.9 % Operating expenses: Sales and marketing (15,759 ) (2,594 ) - (13,165 ) (16,803 ) (2,543 ) - (14,260 ) Research and development (27,837 ) (3,373 ) - (24,464 ) (26,151 ) (3,421 ) - (22,730 ) General and administrative (17,054 ) (5,467 ) - (11,587 ) (12,387 ) (4,029 ) - (8,358 ) Total operating expenses (60,650 ) (11,434 ) - (49,216 ) (55,341 ) (9,993 ) - (45,348 ) Income (loss) from operations $ 44,184 $ (11,881 ) $ - $ 56,065 $ 33,173 $ (10,581 ) $ - $ 43,754 Unrealized gain (loss) on short-term investments 413 - 413 - (1,319 ) - (1,319 ) - Net income (loss) attributable to ACM Research, Inc. $ 30,904 $ (11,881 ) $ 413 $ 42,372 $ 25,679 $ (10,581 ) $ (1,319 ) $ 37,579 Basic EPS $ 0.49 $ 0.68 $ 0.43 $ 0.62 Diluted EPS $ 0.45 $ 0.63 $ 0.39 $ 0.57





Nine Months Ended September 30, 2024 2023 Actual

(GAAP) SBC Other non-

operating adjustments Adjusted

(Non-GAAP) Actual

(GAAP) SBC Other non-

operating adjustments Adjusted

(Non-GAAP) (In thousands) Revenue $ 558,647 $ - $ - $ 558,647 $ 387,402 $ - $ - $ 387,402 Cost of revenue (277,908 ) (2,020 ) - (275,888 ) (190,263 ) (838 ) - (189,425 ) Gross profit 280,739 (2,020 ) - 282,759 197,139 (838 ) - 197,977 Gross margin 50.3 % 0.4 % - 50.6 % 50.9 % 0.2 % - 51.1 % Operating expenses: Sales and marketing (47,067 ) (8,645 ) - (38,422 ) (37,579 ) (3,405 ) - (34,174 ) Research and development (77,723 ) (12,082 ) - (65,641 ) (60,244 ) (4,831 ) - (55,413 ) General and administrative (48,940 ) (18,045 ) - (30,895 ) (26,851 ) (5,592 ) - (21,259 ) Total operating expenses (173,730 ) (38,772 ) - (134,958 ) (124,674 ) (13,828 ) - (110,846 ) Income (loss) from operations $ 107,009 $ (40,792 ) $ - $ 147,801 $ 72,465 $ (14,666 ) $ - $ 87,131 Unrealized gain (loss) on short-term investments (1,151 ) - (1,151 ) - (4,428 ) - (4,428 ) - Net income (loss) attributable to ACM Research, Inc. $ 72,547 $ (40,792 ) $ (1,151 ) $ 114,490 $ 59,649 $ (14,666 ) $ (4,428 ) $ 78,743 Basic EPS $ 1.17 $ 1.85 $ 0.99 $ 1.31 Diluted EPS $ 1.07 $ 1.70 $ 0.90 $ 1.19
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(MENAFN - GlobeNewsWire - Nasdaq) FREMONT, Calif., Nov. 07, 2024 (GLOBE NEWSWIRE) -- ACM Research, Inc. (–ACM–) (NASDAQ: ACMR), a leading supplier of wafer processing solutions for semiconductor and ...
ACM Research Reports Third Quarter 2024 Results