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|
Three Months Ended March 31,
|
||||||||||||||||
|
GAAP
|
Non-GAAP(1)
|
|||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
|||||||||||||
|
(dollars in thousands, except EPS)
|
||||||||||||||||
|
Revenue
|
$
|
42,186
|
$
|
43,732
|
$
|
42,186
|
$
|
43,732
|
||||||||
|
Gross margin
|
46.7
|
%
|
41.3
|
%
|
46.9
|
%
|
41.4
|
%
|
||||||||
|
Income (loss) from operations
|
$
|
(9,306
|
)
|
$
|
3,450
|
$
|
(7,932
|
)
|
$
|
4,660
|
||||||
|
Net income (loss) attributable to ACM Research, Inc.
|
$
|
(5,786
|
)
|
$
|
5,470
|
$
|
(554
|
)
|
$
|
7,727
|
||||||
|
Basic EPS (2)
|
$
|
(0.10
|
)
|
$
|
0.10
|
$
|
(0.01
|
)
|
$
|
0.14
|
||||||
|
Diluted EPS (2)(3)
|
$
|
(0.09
|
)
|
$
|
0.08
|
$
|
(0.01
|
)
|
$
|
0.12
|
||||||
| (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 EPS, also exclude unrealized loss on trading
securities.
|
| (2) |
Prior period results have been adjusted to reflect the three-for-one stock split effected in the form of a stock dividend in March 2022.
|
| (3) |
Diluted EPS includes an impact of $86,000 in the first quarter of 2022 from dilutive shares of ACM Research (Shanghai), Inc.
|
| • |
Shipments. Total shipments in the
first quarter of 2022 were $67 million, versus $74 million in the first quarter of 2021. Total shipments include deliveries for revenue in the quarter and deliveries of first tool systems awaiting customer acceptance for potential revenue in
future quarters. The lockdown resulted in ACM’s having to defer shipment of 13 tools that had been scheduled to ship during the first quarter of 2022.
|
| • |
Mass Production for 18 Chamber, 300mm Ultra C VI Single-Wafer Cleaning
Tool. In April 2022, ACM announced that its 18 chamber, 300mm Ultra C VI single wafer cleaning tool had been qualified by a customer and successfully moved to mass production in ACM’s factory. First
introduced to the market in the second quarter of 2020, the tool has also been qualified for mass production by a mainstream memory chip manufacturer in China.
|
| • |
Completion of 3-for-1 Stock Split Effected in Form of a Stock Dividend. In March 2022, ACM completed a 3-for-1 stock split of ACM’s Class A common stock and Class B common stock in the form of a stock dividend.
|
| • |
Revenue was $42.2 million, down
3.5%, reflecting lower revenue from single wafer wet cleaning tools, advanced packaging and other back-end processing equipment as the result ofCOVID-19 restrictions in Shanghai. Revenue from both repeat shipments and customer acceptances was
negatively impacted by the Shanghai lockdown.
|
| • |
Gross margin was 46.7%, up from
41.3%. Non-GAAP gross margin, which excludes stock-based compensation, was 46.9%, up from 41.4%. Gross margin exceeded the range of 40% to 45% reflected in the Company’s long-term business model. The Company expects gross margin to vary from
period to period due to a variety of factors, such as sales volume and product mix.
|
| • |
Operating expenses were $29.0
million, an increase of 98.6%. Non-GAAP operating expenses, which exclude the effect of stock-based compensation, were $27.7 million, up 106.1%. Non-GAAP operating expenses as a percent of revenue increased to 65.7% from 30.8%. The increase
in operating expenses was due primarily to higher research and development spending, including increased spending on new products and costs incurred for development tools.
|
| • |
Operating loss was $9.3 million, up from $3.5 million. Non-GAAP operating loss, which excludes the effect of stock-based compensation, was $7.9 million, up from $4.7 million.
|
| • |
Unrealized loss on trading securities
was $3.9 million. The loss reflects the change in market value of the indirect investment by ACM Research (Shanghai), Inc. in STAR Market IPO shares of Semiconductor
Manufacturing International Corporation (SMIC). The value is marked-to-market quarterly and is excluded from non-GAAP results.
|
| • |
Income tax benefit was $4.0
million, compared to $2.8 million. The income tax benefit for the period ending March 31, 2022 primarily resulted from the tax effect of the operating loss together with a significant increase in ACM’s effective income tax rate. As a result
of a change in Section 174 of the U.S. Internal Revenue Code of 1986 that became effective on January 1, 2022, the effective tax rate for 2022 has increased, primarily due to a new requirement to capitalize and amortize previously deductible research and experimental expenses. The income tax benefit for the period ended March
31, 2021 resulted from discrete tax benefits associated with stock-based compensation, and a lower effective tax rate prior to the change in Section 174.
|
| • |
Net loss attributable to ACM Research, Inc. was $5.8 million, compared to net income of $5.5 million. Non-GAAP net loss attributable to ACM Research, Inc., which excludes the effect of stock-based compensation and unrealized loss on trading securities, was $0.6 million, as
compared to non-GAAP net income of $7.7 million.
|
| • |
Net loss per diluted share attributable to ACM Research, Inc. was $0.09, compared to net income per diluted share of $0.08. Non-GAAP net loss per diluted share, which excludes the effect of stock-based compensation and unrealized loss on trading securities, was $0.01, compared to non-GAAP net income per diluted share of $0.12.
|
| • |
Cash and cash equivalents were
$380.3 million at March 31, 2022, versus $563.1 million at December 31, 2021. Cash and cash equivalents plus short-term and long-term time deposits were $533.1 million at March 31, 2022, versus $563.1 million at December 31, 2021.
|
|
Phone Number
|
Toll-Free Number
|
|
|
United States
|
+1 (661) 567-1217
|
+1 (833) 562-0137
|
|
Hong Kong
|
+852 5819 4851
|
+852 8009 66253
|
|
Mainland China
|
+86 8008700169
+86 4006828609
|
|
In the United States:
|
The Blueshirt Group
|
|
|
Yujia Zhai
|
||
|
+1 (860) 214-0809
|
||
|
yujia@blueshirtgroup.com
|
||
|
In China:
|
The Blueshirt Group Asia
|
|
|
Gary Dvorchak, CFA
|
||
|
+86 (138) 1079-1480
|
||
|
gary@blueshirtgroup.com
|
|
March 31, 2022
|
December 31, 2021
|
|||||||
|
(Unaudited)
|
||||||||
|
(In thousands, except share
and per share data)
|
||||||||
|
Assets
|
||||||||
|
Current assets:
|
||||||||
|
Cash and cash equivalents
|
$
|
380,311
|
$
|
563,067
|
||||
|
Short-term time deposits
|
74,025
|
-
|
||||||
|
Trading securities
|
25,772
|
29,498
|
||||||
|
Accounts receivable, less allowance for doubtful accounts of $0 as of March 31, 2022 and
December 31, 2021
|
106,351
|
105,553
|
||||||
|
Income tax recoverable
|
1,607
|
1,082
|
||||||
|
Other receivables
|
23,602
|
18,979
|
||||||
|
Inventories
|
271,538
|
218,116
|
||||||
|
Prepaid expenses
|
21,771
|
16,639
|
||||||
|
Total current assets
|
904,977
|
952,934
|
||||||
|
Property, plant and equipment, net
|
57,680
|
14,042
|
||||||
|
Land use right, net
|
9,661
|
9,667
|
||||||
|
Operating lease right-of-use assets, net
|
4,028
|
4,182
|
||||||
|
Intangible assets, net
|
748
|
477
|
||||||
|
Long-term time deposits
|
78,750
|
-
|
||||||
|
Deferred tax assets
|
15,303
|
13,166
|
||||||
|
Long-term investments
|
12,666
|
12,694
|
||||||
|
Other long-term assets
|
3,559
|
45,017
|
||||||
|
Total assets
|
1,087,372
|
1,052,179
|
||||||
|
Liabilities and Stockholders’ Equity
|
||||||||
|
Current liabilities:
|
||||||||
|
Short-term borrowings
|
9,600
|
9,591
|
||||||
|
Current portion of long-term borrowings
|
2,441
|
2,410
|
||||||
|
Accounts payable
|
108,494
|
101,350
|
||||||
|
Advances from customers
|
82,036
|
52,824
|
||||||
|
Deferred revenue
|
2,699
|
3,180
|
||||||
|
Income taxes payable
|
(1,744
|
)
|
254
|
|||||
|
FIN-48 payable
|
2,292
|
2,282
|
||||||
|
Other payables and accrued expenses
|
36,555
|
31,735
|
||||||
|
Current portion of operating lease liability
|
2,076
|
2,313
|
||||||
|
Total current liabilities
|
244,449
|
205,939
|
||||||
|
Long-term borrowings
|
22,344
|
22,957
|
||||||
|
Long-term operating lease liability
|
1,952
|
1,869
|
||||||
|
Deferred tax liability
|
1,308
|
1,302
|
||||||
|
Other long-term liabilities
|
8,545
|
8,447
|
||||||
|
Total liabilities
|
278,598
|
240,514
|
||||||
|
Commitments and contingencies
|
||||||||
|
Stockholders’ equity:
|
||||||||
|
Common stock (1) – Class A, par value $0.0001: 150,000,000 shares authorized as of March 31,
2022 and December 31, 2021; 54,035,280 shares issued and outstanding as of March 31, 2022 and 53,608,929 shares issued and outstanding as of December 31, 2021
|
5
|
5
|
||||||
|
Common stock (1) – Class B, par value $0.0001: 5,307,816 shares authorized as of March 31, 2022
and December 31, 2021; 5,086,812 shares issued and outstanding as of March 31, 2022 and 5,087,814 shares issued and outstanding as of December 31, 2021
|
1
|
1
|
||||||
|
Additional paid in capital
|
597,143
|
595,045
|
||||||
|
Accumulated surplus
|
66,258
|
72,044
|
||||||
|
Accumulated other comprehensive income
|
10,979
|
9,109
|
||||||
|
Total ACM Research, Inc. stockholders’ equity
|
674,386
|
676,204
|
||||||
|
Non-controlling interests
|
134,388
|
135,461
|
||||||
|
Total stockholders’ equity
|
808,774
|
811,665
|
||||||
|
Total liabilities and stockholders’ equity
|
$
|
1,087,372
|
$
|
1,052,179
|
||||
|
Three Months Ended March 31,
|
||||||||
|
2022
|
2021
|
|||||||
|
(Unaudited)
|
||||||||
|
( In thousands, except share and per share data)
|
||||||||
|
Revenue
|
$
|
42,186
|
$
|
43,732
|
||||
|
Cost of revenue
|
22,500
|
25,687
|
||||||
|
Gross profit
|
19,686
|
18,045
|
||||||
|
Operating expenses:
|
||||||||
|
Sales and marketing
|
6,697
|
5,308
|
||||||
|
Research and development
|
17,346
|
5,504
|
||||||
|
General and administrative
|
4,949
|
3,783
|
||||||
|
Total operating expenses, net
|
28,992
|
14,595
|
||||||
|
Income (loss) from operations
|
(9,306
|
)
|
3,450
|
|||||
|
Interest income
|
1,805
|
49
|
||||||
|
Interest expense
|
(261
|
)
|
(189
|
)
|
||||
|
Unrealized loss on trading securities
|
(3,858
|
)
|
(1,047
|
)
|
||||
|
Other income, net
|
237
|
469
|
||||||
|
Equity income (loss) in net income (loss) of affiliates
|
(71
|
)
|
320
|
|||||
|
Income (loss) before income taxes
|
(11,454
|
)
|
3,052
|
|||||
|
Income tax benefit
|
4,011
|
2,770
|
||||||
|
Net income (loss)
|
(7,443
|
)
|
5,822
|
|||||
|
Less: Net income (loss) attributable to non-controlling interests
|
(1,657
|
)
|
352
|
|||||
|
Net income (loss) attributable to ACM Research, Inc.
|
$
|
(5,786
|
)
|
$
|
5,470
|
|||
|
Comprehensive income:
|
||||||||
|
Net income (loss)
|
(7,443
|
)
|
5,822
|
|||||
|
Foreign currency translation adjustment
|
2,454
|
(1,332
|
)
|
|||||
|
Comprehensive Income (loss)
|
(4,989
|
)
|
4,490
|
|||||
|
Less: Comprehensive income (loss) attributable to non-controlling interests
|
(1,073
|
)
|
(83
|
)
|
||||
|
Comprehensive income (loss) attributable to ACM Research, Inc.
|
$
|
(3,916
|
)
|
$
|
4,573
|
|||
|
|
||||||||
|
Net income (loss) attributable to ACM Research, Inc. per common share (1):
|
||||||||
|
Basic
|
$
|
(0.10
|
)
|
$
|
0.10
|
|||
|
Diluted
|
$
|
(0.09
|
)
|
$
|
0.08
|
|||
|
|
||||||||
|
Weighted average common shares outstanding used in computing per share amounts (1):
|
||||||||
|
Basic
|
58,827,390
|
56,360,610
|
||||||
|
Diluted
|
65,950,922
|
65,604,840
|
||||||
|
`
|
Three Months Ended March 31,
|
|||||||
|
2022
|
2021
|
|||||||
|
Single wafer cleaning, Tahoe and semi-critical cleaning equipment
|
$
|
26,033
|
$
|
32,413
|
||||
|
ECP (front-end and packaging), furnace and other technologies
|
12,248
|
5,550
|
||||||
|
Advanced packaging (excluding ECP), services & spares
|
3,905
|
5,769
|
||||||
|
Total Revenue By Product Category
|
$
|
42,186
|
$
|
43,732
|
||||
|
Wet cleaning and other front-end processing tools
|
$
|
31,702
|
$
|
31,900
|
||||
|
Advanced packaging, other processing tools, services and spares
|
10,484
|
11,832
|
||||||
|
Total Revenue Front-end and Back-End
|
$
|
42,186
|
$
|
43,732
|
||||
|
Three Months Ended March 31,
|
||||||||
|
2022
|
2021
|
|||||||
|
Mainland China
|
$
|
42,130
|
$
|
43,696
|
||||
|
Other Regions
|
56
|
36
|
||||||
|
|
$
|
42,186
|
$
|
43,732
|
||||
|
Three Months Ended March 31,
|
||||||||||||||||||||||||||||||||
|
2022
|
2021
|
|||||||||||||||||||||||||||||||
|
Actual
(GAAP)
|
SBC
|
Other non-operating adjustments
|
Adjusted
(Non-GAAP)
|
Actual
(GAAP)
|
SBC
|
Other non-operating adjustments
|
Adjusted
(Non-GAAP)
|
|||||||||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||
|
Revenue
|
$
|
42,186
|
$
|
-
|
$
|
-
|
$
|
42,186
|
$
|
43,732
|
$
|
-
|
$
|
-
|
$
|
43,732
|
||||||||||||||||
|
Cost of revenue
|
(22,500
|
)
|
(113
|
)
|
-
|
(22,387
|
)
|
(25,687
|
)
|
(71
|
)
|
-
|
(25,616
|
)
|
||||||||||||||||||
|
Gross profit
|
19,686
|
(113
|
)
|
-
|
19,799
|
18,045
|
(71
|
)
|
-
|
18,116
|
||||||||||||||||||||||
|
Operating expenses:
|
||||||||||||||||||||||||||||||||
|
Sales and marketing
|
(6,697
|
)
|
(354
|
)
|
-
|
(6,343
|
)
|
(5,308
|
)
|
(505
|
)
|
-
|
(4,803
|
)
|
||||||||||||||||||
|
Research and development
|
(17,346
|
)
|
(411
|
)
|
-
|
(16,935
|
)
|
(5,504
|
)
|
(229
|
)
|
-
|
(5,275
|
)
|
||||||||||||||||||
|
General and administrative
|
(4,949
|
)
|
(496
|
)
|
-
|
(4,453
|
)
|
(3,783
|
)
|
(405
|
)
|
-
|
(3,378
|
)
|
||||||||||||||||||
|
Income (loss) from operations
|
$
|
(9,306
|
)
|
$
|
(1,374
|
)
|
$
|
-
|
$
|
(7,932
|
)
|
$
|
3,450
|
$
|
(1,210
|
)
|
$
|
-
|
$
|
4,660
|
||||||||||||
|
Unrealized loss on trading securities
|
(3,858
|
)
|
-
|
(3,858
|
)
|
-
|
(1,047
|
)
|
-
|
(1,047
|
)
|
-
|
||||||||||||||||||||
|
Net income (loss) attributable to ACM Research, Inc.
|
$
|
(5,786
|
)
|
$
|
(1,374
|
)
|
$
|
(3,858
|
)
|
$
|
(554
|
)
|
$
|
5,470
|
$
|
(1,210
|
)
|
$
|
(1,047
|
)
|
$
|
7,727
|
||||||||||
|
Basic EPS(1)
|
$
|
(0.10
|
)
|
$
|
(0.01
|
)
|
$
|
0.10
|
$
|
0.14
|
||||||||||||||||||||||
|
Diluted EPS(1)
|
$
|
(0.09
|
)
|
$
|
(0.01
|
)
|
$
|
0.08
|
$
|
0.12
|
||||||||||||||||||||||
