ACM Research (ACMR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $202.5M, up 40% year-over-year, with shipments of $203M, driven by strong demand from mainland China-based customers and new product introductions.

• Gross margin was 47.8% (non-GAAP: 48.2%), and operating margin was 18.6% (non-GAAP: 25.6%), both above long-term targets.

• Net income attributable was $24.2M (non-GAAP: $37.3M), with diluted EPS of $0.35 (non-GAAP: $0.55).

• Cash, equivalents, and time deposits ended at $366.8M, with positive operating cash flow and facility expansion in the U.S. and Asia.

• First half 2024 revenue was $354.7M, up 62% year-over-year, outpacing China WFE market growth.

Financial highlights

• Single wafer cleaning, Tahoe, and semi-critical cleaning revenue grew 36% to $153.2M, representing 76% of total revenue.

• ECP, furnace, and other technology revenue grew 104% to $39M, 19% of total revenue.

• Advanced packaging revenue (excluding ECP, services, and spares) was $10.3M, down 20% for Q2 but up 13.5% for the first half.

• Operating income was $51.9M (non-GAAP), up from $32.4M; net income for Q2 was $31.4M, with six-month net income at $53.5M.

• Cash flow from operations was $61M for Q2; capital expenditures were $13.6M.

Outlook and guidance

• 2024 revenue outlook raised to $695M–$735M, midpoint representing 28% year-over-year growth.

• Gross margin for the full year expected above the high end of the 40%-45% target range.

• Long-term revenue target increased to $3B, with half expected from China and half from international markets.

• Operating expenses are anticipated to increase as the company expands its customer base and R&D activities globally.

• The company believes existing cash, deposits, and cash flow from operations will be sufficient to meet anticipated needs.