Ultra Clean Holdings Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 29, 2017. For the fourth quarter of 2017, the company reported total revenue was $248.9 million, an increase of 2.6% compared to the third quarter of 2017 and 42.6% compared to the same period a year ago. Net income was $20.8 million, or $0.62 and $0.60 per basic and diluted share respectively, compared to net income of $19.7 million, or $0.59 and $0.57 per basic and diluted share respectively, in the third quarter of 2017, and net income of $10.0 million, or $0.30 per basic and diluted share for the same period a year ago. Outstanding debt was $52.3 million, a decrease of $5.1 million compared to the third quarter of 2017. Non-GAAP net income was $20.3 million and non-GAAP net income per diluted share was $0.59. Non-GAAP net income and non-GAAP net income per diluted share exclude pre-tax charges of $1.7 million for intangible assets amortization in addition to the corresponding decrease in tax expense of approximately $2.3 million. This compares to non-GAAP net income of $21.3 million and non-GAAP net income per diluted share of $0.62 for the third quarter of 2017, and non-GAAP net income of $12.0 million and non-GAAP net income per diluted share of $0.36 for the fourth quarter of 2016. Income from operations was $21,957,000 against $12,489,000 a year ago. Income before provision for income taxes was $21,579,000 against $12,489,000 a year ago. In the fourth quarter, the company generated $11.3 million in cash from operating activities. This compares to $17.4 million in the third quarter, as invested in working capital such as inventory buildup to support ongoing customer demand in 2018.

For fiscal year 2017, the company reported revenue was $924.4 million, an increase of 64.3% from fiscal year 2016. Semiconductor revenue was 92.9% of total revenue for fiscal year 2017 and 90.3% for fiscal year 2016. Net income for fiscal year 2017 was $75.1 million, or $2.25 and $2.19 per basic and diluted share respectively, compared to net income of $10.1 million, or $0.31 and $0.30 per basic and diluted share respectively, in fiscal year 2016. Non-GAAP net income for fiscal year 2017 was $80.3 million and non-GAAP net income per diluted share was $2.34. Non-GAAP net income and non-GAAP net income per diluted share exclude pre-tax charges of $5.4 million for intangible assets amortization in addition to the corresponding decrease in tax expense of approximately $0.2 million. This compares to prior fiscal year non-GAAP net income and non-GAAP net income per diluted share of $21.4 million and $0.65, respectively. Income from operations was $86,942,000 against $18,947,000 a year ago. Income before provision for income taxes was $86,942,000 against $18,947,000 a year ago. For the year, the company generated $48.9 million in cash from operations, far surpassing the $17.6 million generated in 2016.

For the first quarter of 2018, the company expects revenue to be between $275 million to $290 million. Taking into account the additional shares issued during the recent financing, the company anticipates GAAP net income per diluted share to be in the range of $0.52 to $0.59 and non-GAAP net income per diluted share to be in the range of $0.56 to $0.63. Non-GAAP operating margin is expected to be within the targeted range of 8% to 10% and the non-GAAP tax rate should be between 14% and 16%.

For the full year 2018, the company expected non-GAAP tax rate to be in the range of 14% to 16%.