Ichor (ICHR) Q4 2023 earnings summary

Executive summary

• Q4 revenue of $203.5M reached the upper end of guidance, but less favorable product and customer mix pressured margins; FY 2023 revenue fell to $811.1M from $1.28B in 2022.

• Q4 generated $37.6M of operating cash flow and reduced total debt by $32M; management expects revenue to remain near current levels through mid-2024.

Financial highlights

• Q4 revenue was $203.5M versus $196.8M in Q3 2023 and $301.7M in Q4 2022; GAAP net loss was $11.9M, or $(0.40) diluted EPS.

• Q4 adjusted non-GAAP net loss was $1.7M, or $(0.06) diluted EPS, versus non-GAAP net income of $2.1M in Q3 2023 and $21.0M in Q4 2022.

• FY 2023 revenue was $811.1M, GAAP net loss was $43.0M and diluted EPS was $(1.47); FY 2022 recorded $1.28B revenue, $72.8M net income and $2.51 diluted EPS.

• Adjusted FY 2023 non-GAAP net income was $12.3M and diluted EPS was $0.42, versus $104.9M and $3.62 in FY 2022.

Outlook and guidance

• Q1 2024 revenue guidance is $190M–$210M; GAAP diluted EPS is $(0.24)–$(0.14) and non-GAAP diluted EPS is $(0.05)–$0.05.

• Non-GAAP Q1 EPS guidance excludes ~$2.1M of intangible amortization and ~$3.9M of share-based compensation, plus related tax effects.

• Revenue is expected to stay at similar levels through mid-2024, with meaningful gross-margin and profitability improvement targeted; management expects stronger industry growth in 2025.