UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934
Date of
Report (Date of earliest event reported): May 7, 2019
ACM
Research, Inc.
(Exact name of registrant as specified in its charter)
Delaware
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001-38273
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94-3290283
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(State
or Other Jurisdiction of
Incorporation or Organization)
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(Commission
File Number)
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(I.R.S.
Employer
Identification No.)
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42307 Osgood Road, Suite I, Fremont, California 94539
(Address of principal executive offices) (Zip code)
Registrant’s telephone number, including area code:
(510) 445-3700
Check
the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
⬜ Written
communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
⬜ Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⬜ Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
⬜ Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
Indicate
by check mark whether the registrant is an emerging growth company
as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2
of the Securities Exchange Act of 1934 (§240.12b-2 of this
chapter). Emerging growth company ☑
If an
emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided
pursuant to Section 13(a) of the Exchange Act.
☑
Securities
registered pursuant to Section 12(b) of the Act:
Title
of each class
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Trading
Symbol
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Name of
each exchange on which registered
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Class A
Common Stock, $0.0001 par value
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ACMR
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Nasdaq
Global Market
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Item 2.02 Results of Operations and Financial
Condition
On May
7, 2019, we issued a press release announcing financial results for
the first quarter of 2019. The full text of the press release is
furnished as Exhibit 99.01 hereto and is incorporated herein by
reference.
The
information contained herein, including the exhibit furnished
hereto, is intended to be furnished and shall not be deemed
“filed” for purposes of Section 18 of the Securities
Exchange Act of 1934 or otherwise subject to the liabilities of
that section, nor shall it be deemed incorporated by reference in
any filing under the Securities Act of 1933 or the Securities
Exchange Act of 1934, except as expressly set forth by specific
reference in such filing.
Item
9.01
Financial Statements and Exhibits
(d)
Exhibits.
Exhibit Number
|
|
Description
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|
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Press
Release of ACM Research, Inc. dated May 7, 2019
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SIGNATURE
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be filed on its behalf by the
undersigned hereunto duly authorized.
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ACM Research, Inc.
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Dated: May 7,
2019
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By:
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/s/ David H.
Wang
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David H.
Wang
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Chief Executive
Officer and President
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ACM Research Reports First Quarter 2019 Results
FREMONT,
California, May 7, 2019 (Globe Newswire) – ACM Research, Inc.
(“ACM” or the “Company”) (NASDAQ:ACMR), a
provider of single-wafer wet cleaning equipment used by
manufacturers of advanced semiconductors, today reported financial
results for its first fiscal quarter ended March 31,
2019.
ACM’s
President and Chief Executive Officer Dr. David Wang commented,
“Business momentum continued, and we executed well relative
to our expectations. We delivered solid revenue growth and
profitability, and we introduced two new electrochemical plating
products. First quarter results demonstrate the competitive
strength of our technical expertise, product differentiation and
production scale. All of our products, from SAPS, TEBO and Tahoe to
our new Ultra ECP products, incorporate our innovative and
differentiated technologies, which we have committed to
continuously develop to exceed the expectations of our
customers.”
Dr.
Wang continued, “As we look ahead to the remainder of 2019,
we are excited by our business prospects and are committed to
continuing to gain market share with new products, new customers,
and more production steps. We are executing our strategy, and
remain focused on achieving our vision of becoming a major player
in the semiconductor equipment market.”
Operating Highlights
●
Shipments. Total shipments in the first
quarter of 2019 were $14 million, versus $10 million in the first
quarter of 2018. Shipments include deliveries for revenue in the
quarter and deliveries of systems awaiting customer acceptance for
potential revenue in future quarters.
●
Ultra-C Tahoe. ACM delivered its first
Ultra-C Tahoe evaluation tool to an important strategic customer in
January of 2019. Evaluation of this first tool is on schedule. The
Ultra-C Tahoe tool incorporates innovative and patented technology
to deliver high cleaning performance, but uses 10% or less of the
sulfuric acid typically consumed by conventional high temperature
single wafer cleaning tools.
●
New Product Introduction. ACM introduced
two electro-plating products at SEMICON China in March of 2019 -
Ultra ECP AP and Ultra ECP MAP. Ultra ECP AP is a back-end assembly
tool used for bumping, or applying copper, tin and nickel to wafers
at the die level before packaging. Ultra ECP MAP is used in
front-end wafer fabrication processes and designed to deliver
world-class electrochemical copper plating for advanced copper
interconnect applications. Both ECP tools offer significant
performance advantages relative to available competitive products,
including greater performance, increased flexibility, and improved
cycle times.
Financial Summary
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Three Months Ended
March 31,
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(dollars
in thousands, except per share data)
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Revenue
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$20,479
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$9,743
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$20,479
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$9,743
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Gross
margin(2)
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43.1%
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52.6%
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43.2%
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52.7%
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Income from
operations(2)
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$2,251
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$(1,904)
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$2,995
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$271
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Net income
attributable to ACM Research, Inc.(2)
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$1,857
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$(2,780)
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$2,601
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$(605)
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Basic
EPS(2)
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$0.12
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$(0.18)
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$0.16
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$(0.04)
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Diluted
EPS(2)
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$0.10
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$(0.18)
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$0.14
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$(0.04)
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(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.”
(2)
Non-GAAP financial
measures exclude stock-based compensation.
The following figures refer to the first quarter of 2019, unless
noted otherwise. All comparisons are with the first quarter of
2018, unless otherwise noted.
●
Revenue increased 110% to $20.5 million,
due to an increased volume of tools shipped for revenue and higher
prices associated with these tools. Revenue for the first quarter
included repeat shipments, and several customer acceptances of
tools shipped in previous quarters.
●
Gross margin was 43.1%, compared to
52.6% in the first quarter of 2018. Gross margin was within the
range of 40.0% to 45.0% set forth in the Company’s long-term
business model. Gross margin in the year-ago period was elevated
due to a concentrated mix of higher-margin SAPS-II tools. The
Company expects gross margin to continue to vary from period to
period due to a variety of factors, such as sales volume and
product mix.
●
Operating expenses were $6.6 million, a
decrease of 6%. Non-GAAP operating expenses, which remove
stock-based compensation, were $5.9 million, up 21%. Non-GAAP
operating expenses as a percent of revenue decreased to 29%,
compared to 50% in the first quarter of 2018.
●
Net income was $1.9 million, compared to
a net loss of $2.8 million in the first quarter of 2018. Non-GAAP
net income was $2.6 million, compared to a non-GAAP net loss of
$0.6 million in the first quarter of 2018.
●
Net income per diluted share was $0.10,
versus a net loss of $0.18 in the first quarter of 2018. Non-GAAP
net income per diluted share was $0.14, versus a net loss of $0.04
in the first quarter of 2018.
●
Cash and equivalents at quarter-end were
$27.4 million, up from $27.1 million at the end of the fourth
quarter of 2018 and $15.2 million at the end of the first quarter
of 2018.
Outlook
For
fiscal year 2019, the Company continues to expect revenue to be
approximately $100 million.
Conference Call Details
A
conference call to discuss results will be held on Thursday, May 8,
2019, at 8:00 a.m. Eastern Time (8:00 p.m. China Time). Dial-in
details for the call are as follows. Please reference conference ID
6982685.
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Phone
Number
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Toll-Free Number
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United
States
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+1
(845) 675-0437
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+1
(866) 519-4004
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Hong
Kong
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+852 3018
6771
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+852 8009
06601
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Mainland
China
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+86 (800) 819
0121
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+86 (400) 620
8038
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Other
International
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+65 6713
5090
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A
recording of the webcast will be available on the investor page of
the ACM website at www.acmrcsh.com for one week following the
call.
Use of Non-GAAP Financial Measures
ACM
presents non-GAAP gross margin, operating income, net income
(loss), 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. A reconciliation of each
non-GAAP financial measure to the most directly comparable GAAP
financial measure is provided below under “Reconciliation of
Non-GAAP to 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
Information
presented in the second and third paragraphs of this press release
and under the heading “Outlook” above contains
forward-looking statements for purposes of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Actual results may vary significantly from ACM’s expectations
based on a number of risks and uncertainties, including but not
limited to the following: anticipated customer orders or identified
market opportunities may not grow or develop as anticipated;
customer orders already received may be postponed or canceled;
suppliers may not be able to meet ACM’s demands on a timely
basis; volatile global economic, market, industry and other
conditions could result in sharply lower demand for products
containing semiconductors and for the company's products and in
disruption of capital and credit markets; ACM’s failure to
successfully manage its operations; and trade regulations, currency
fluctuations, political instability and war may materially
adversely affect ACM due to its substantial non-U.S. customer and
supplier base and its substantial non-U.S. manufacturing
operations. ACM cannot guarantee any future results, levels of
activity, performance or achievements. ACM expressly disclaims any
obligation to update forward-looking statements after the date of
this press release.
About ACM Research, Inc.
ACM
develops, manufactures and sells single-wafer wet cleaning
equipment, which semiconductor manufacturers can use in numerous
manufacturing steps to remove particles, contaminants and other
random defects, and thereby improve product yield, in fabricating
advanced integrated circuits.
©
ACM Research, Inc. The ACM logo, SAPS, TEBO and ULTRA C are
trademarks of ACM Research, Inc. For convenience, these trademarks
appear in this press release without ™ symbols, but that
practice does not mean that ACM will not assert, to the fullest
extent under applicable law, its rights to the trademarks. This
press release also contains other companies’ trademarks,
registered marks and trade names, which are the property of those
companies.
For investor and media inquiries, please contact:
In the United
States:
|
The Blueshirt
Group
|
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Ralph
Fong
+1
(415) 489-2195
ralph@blueshirtgroup.com
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In China:
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The Blueshirt Group
Asia
|
|
Gary
Dvorchak, CFA
+86
(138) 1079-1480
gary@blueshirtgroup.com
|
ACM RESEARCH, INC.
Condensed Consolidated Balance Sheets
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March
31,
2019
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December
31,
2018
|
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(unaudited)
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(in thousands, except share and per share data)
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Assets
|
|
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Current
assets:
|
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Cash
and cash equivalents
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$27,367
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$27,124
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Accounts
receivable, less allowance for doubtful accounts of $0 as of March
31, 2019 and $0 as of December 31, 2018
|
25,070
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24,608
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Other
receivables
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2,982
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3,547
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Inventories
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42,253
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38,764
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Prepaid
expenses
|
1,833
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1,985
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Total
current assets
|
99,505
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96,028
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Property,
plant and equipment, net
|
3,719
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3,708
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Operating
lease right-of-use assets, net
|
4,787
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-
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Intangible
assets, net
|
263
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274
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Deferred
tax assets
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1,669
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1,637
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Investment
in affiliates, equity method
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1,476
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1,360
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Other
long-term assets
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-
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40
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Total
assets
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$111,419
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$103,047
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Liabilities and Stockholders’ Equity
|
|
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Current
liabilities:
|
|
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Short-term
borrowings
|
12,829
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9,447
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Accounts
payable
|
13,333
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16,673
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Advances
from customers
|
8,469
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8,417
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Income
taxes payable
|
1,228
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1,193
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Other
payables and accrued expenses
|
11,834
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10,410
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Current
portion of operating lease liability
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1,326
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-
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Total
current liabilities
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49,019
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46,140
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Long-term
operating lease liability
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3,462
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-
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Other
long-term liabilities
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3,296
|
4,583
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Total
liabilities
|
55,777
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50,723
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Commitments and contingencies
|
|
|
Stockholders’
equity:
|
|
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Common
stock – Class A, par value $0.0001: 100,000,000 shares
authorized as of March 31, 2019 and December 31, 2018. 14,176,690
shares issued and outstanding as of March 31, 2019 and 14,110,315
shares issued and outstanding as of December 31, 2018
|
1
|
1
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Common
stock–Class B, par value $0.0001: 7,303,533 shares authorized
as of March 31, 2019 and December 31, 2018. 1,898,423 shares issued
and outstanding as of March 31, 2019 and 1,898,423 shares issued
and outstanding as of December 31, 2018
|
-
|
-
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Additional
paid in capital
|
57,371
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56,567
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Accumulated
deficit
|
(1,530)
|
(3,387)
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Accumulated
other comprehensive loss
|
(200)
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(857)
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Total
stockholders’ equity
|
55,642
|
52,324
|
Total
liabilities and stockholders’ equity
|
$111,419
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$103,047
|
ACM RESEARCH, INC.
Condensed Consolidated Statements of Operations and Comprehensive
Income (Loss)
|
Three
Months Ended March 31,
|
|
|
2018
|
|
(unaudited)
|
|
( In thousands, except share and per share
data)
|
Revenue
|
$20,479
|
$9,743
|
Cost of revenue
|
11,653
|
4,621
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Gross profit
|
8,826
|
5,122
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Operating expenses:
|
|
|
Sales and marketing
|
1,869
|
1,855
|
Research and development
|
2,765
|
1,541
|
General and administrative
|
1,941
|
3,630
|
Total operating expenses, net
|
6,575
|
7,026
|
Income
(loss) from operations
|
2,251
|
(1,904)
|
Interest income
|
9
|
3
|
Interest expense
|
(139)
|
(103)
|
Other expense, net
|
(261)
|
(755)
|
Equity income in net income of affiliates
|
116
|
1
|
Income
(loss) before income taxes
|
1,976
|
(2,758)
|
Income tax expense
|
(119)
|
(22)
|
Net income
(loss)
|
$1,857
|
$(2,780)
|
Comprehensive income
(loss):
|
|
|
Net
income (loss)
|
1,857
|
(2,780)
|
Foreign currency translation adjustment
|
657
|
705
|
Total comprehensive income
(loss)
|
$2,514
|
$(2,075)
|
|
|
|
Net income
(loss) per common share :
|
|
|
Basic
|
$0.12
|
$(0.18)
|
Diluted
|
$0.10
|
$(0.18)
|
|
|
|
Weighted
average common shares outstanding used in computing per share amounts:
|
|
Basic
|
16,044,655
|
15,383,086
|
Diluted
|
18,225,317
|
15,383,086
|
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 income and net
income (loss) as supplemental measures to GAAP financial measures,
each of which excludes stock-based compensation (“SBC”)
from the equivalent GAAP financial line items. The following table
reconciles gross margin, operating income and net income (loss) to
the related non-GAAP financial measures:
|
Three
Months Ended March 31,
|
|
2019
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2018
|
|
|
|
|
|
|
|
|
(GAAP)
|
SBC
|
(Non-GAAP)
|
(GAAP)
|
SBC
|
(Non-GAAP)
|
|
(in thousands)
|
|
|
|
|
|
|
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Revenue
|
$20,479
|
$-
|
$20,479
|
$9,743
|
$-
|
$9,743
|
|
(11,653)
|
(30)
|
(11,623)
|
(4,621)
|
(8)
|
(4,613)
|
Gross
profit
|
8,826
|
(30)
|
8,856
|
5,122
|
(8)
|
5,130
|
Operating
expenses:
|
|
|
|
|
|
|
Sales
and marketing
|
(1,869)
|
(34)
|
(1,835)
|
(1,855)
|
(34)
|
(1,821)
|
Research
and development
|
(2,765)
|
(86)
|
(2,679)
|
(1,541)
|
(27)
|
(1,514)
|
General
and administrative
|
(1,941)
|
(594)
|
(1,347)
|
(3,630)
|
(2,106)
|
(1,524)
|
Income
(Loss) from operations
|
$2,251
|
$(744)
|
$2,995
|
$(1,904)
|
$(2,175)
|
$271
|
|
$1,857
|
$(744)
|
$2,601
|
$(2,780)
|
$(2,175)
|
$(605)
|