Acm Research, Inc. (ACMR) SEC Filing 10-K Annual report for the fiscal year ending Thursday, December 31, 2020

ACM Research Reports Fourth Quarter and Fiscal Year 2020 Results

 

FREMONT, California, February 25, 2021 (Globe Newswire) – ACM Research, Inc. (“ACM” or the “Company”) (NASDAQ:ACMR), a leading supplier of wafer cleaning technologies for advanced semiconductor devices, today reported financial results for its fourth quarter and fiscal year ended December 31, 2020.

 

ACM’s President and Chief Executive Officer Dr. David Wang commented, “2020 was another productive year for ACM, as we expanded our customer base, launched additional products, increased production capacity, and added key hires to our global salesforce.  We grew revenue by 46% and shipments by 58%, as we continue on our mission to become a major global player in the semiconductor equipment industry.  We continued to make good progress on our long-term facility plans in the Lingang Region of Shanghai, including making the deposit for our employee housing development in the fourth quarter.”

 

Dr. Wang continued, “Our operating plans for 2021 anticipate solid growth from our SAPS, Ultra C Tahoe, and TEBO product offerings, and meaningful contributions from our semi-critical cleaning and electrochemical plating (ECP) products.  We plan to further broaden our product offering with innovative new products, expand production capacity, and continue efforts to win additional major customers.  Although the timing of the STAR Market IPO of our subsidiary ACM Research (Shanghai), Inc. has extended longer than we had previously expected, we remain confident that the IPO will be completed successfully.”

 

 

 

 

For fiscal year 2021, the Company expects revenue to be in the range of $205 million to $230 million, unchanged from its January 5, 2021 announcement. This expectation assumes, among other factors, improvement with respect to the global COVID-19 pandemic and stability in US-China trade policy. The range of ACM’s 2021 outlook reflects, among other things, variances in spending scenarios for the production ramps of key customers, the trajectory of the DRAM recovery, and the timing of acceptances for first tools under evaluation in the field.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A conference call to discuss results will be held on Friday, February 26, 2021, at 8:00 a.m. Eastern Time (9:00 p.m. China Time).

Please register in advance to join the conference call using the link provided below and dial in 10 minutes before the call is scheduled to begin. Conference call access information will be provided upon registration.

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.

 

 

ACM presents non-GAAP gross margin, operating expenses, operating income, net income attributable to ACM Research, Inc., 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. In addition, non-GAAP net income attributable to ACM Research, Inc. and basic and diluted EPS exclude non-cash change in fair value of financial assets and liabilities, which ACM also believes is not 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.

 

 

Certain statements contained in the third paragraph of this press release, under the heading “Outlook” above, and in the sixth bullet under “Operating Highlights and Recent Developments” above are not historical facts and may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding the intent, belief and current expectations with respect to: the demand for ACM’s tools, including specifically in fiscal year 202; the expansion in 2021 of ACM’s product offering, production capacity and base of major customers;  ACM’s plans for completion of the STAR Market initial public offering of shares of ACM Shanghai; and ACM’s plans and timing for its employee housing development in the Lingang Region of Shanghai. Such statements, which are expectations only, reflect management's current views, are based on certain assumptions, and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to, the following, any of which could be exacerbated even further by the continuing COVID-19 outbreak in China and globally: anticipated customer orders or identified market opportunities may not grow or develop as anticipated; customer orders already received may be postponed or canceled; ACM may be unable to obtain the qualification and acceptance of its delivered tools when anticipated or at all, which would delay or preclude ACM’s recognition of revenue from the sale of those tools; suppliers may not be able to meet ACM’s demands on a timely basis; ACM’s technologies and tools may not gain market acceptance; ACM may be unable to compete effectively by, among other things, enhancing its existing tools, adding additional production capacity and engaging additional major customers; 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; 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. The completion and timing of ACM Shanghai’s obtaining of remaining regulatory approval for the STAR Market IPO and listing of its shares and for the construction and receipt of ownership of the Lingang employee housing are subject to numerous risks, such as the receipt of all necessary Chinese governmental approvals, that are outside ACM’s control. ACM cannot guarantee any future results, levels of activity, performance or achievements.  ACM undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in its expectations with regard to these forward-looking statements or the occurrence of unanticipated events.

 

ACM develops, manufactures and sells semiconductor process equipment for single-wafer or batch wet cleaning, electroplating, stress-free polishing and thermal processes that are critical to advanced semiconductor device manufacturing, as well as wafer-level packaging. The Company is committed to delivering customized, high performance, cost-effective process solutions that semiconductor manufacturers can use in numerous manufacturing steps to improve productivity and product yield.

 

© ACM Research, Inc. SAPS, TEBO, ULTRA C and the ACM Research logo 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.

 

For investor and media inquiries, please contact:

 

ACM RESEARCH, INC.

Condensed Consolidated Balance Sheets

(unaudited)

		December 31, 2020				December 31, 2019
		(Unaudited)
		(In thousands, except share and per share data)
Assets
Current assets:
Cash and cash equivalents		$	71,766			$	58,261
Restricted cash			-				59,598
Trading securities			28,239				-
Accounts receivable, less allowance for doubtful accounts of $0 as of December 31, 2020 and December 31, 2019			56,441				31,091
Other receivables			9,679				2,603
Inventories			88,639				44,796
Prepaid expenses			5,892				2,047
Total current assets			260,656				198,396
Property, plant and equipment, net			8,192				3,619
Land use right, net			9,646				-
Operating lease right-of-use assets, net			4,297				3,887
Intangible assets, net			554				344
Deferred tax assets			11,076				5,331
Long-term investments			6,340				5,934
Other long-term assets			40,496				192
Total assets			341,257				217,703
Liabilities, Redeemable Non-controlling Interests and Stockholders’ Equity
Current liabilities:
Short-term borrowings			26,147				13,753
Current portion of long-term borrowings			1,591				-
Accounts payable			35,603				13,262
Advances from customers			17,888				9,129
Deferred revenue			1,343				-
Income taxes payable			31				3,129
FIN-48 payable			83				-
Other payables and accrued expenses			18,805				12,874
Current portion of operating lease liability			1,417				1,355
Total current liabilities			102,908				53,502
Long-term borrowings			17,979				-
Long-term operating lease liability			2,880				2,532
Deferred tax liability			1,286				-
Other long-term liabilities			8,034				4,186
Total liabilities			133,087				60,220
Commitments and contingencies
Redeemable non-controlling interests			-				60,162
Stockholders’ equity:
Common stock – Class A, par value $0.0001: 50,000,000 shares authorized as of December 31, 2020 and December 31, 2019; 16,896,693 shares issued and outstanding as of December 31, 2020 and 16,182,151 shares issued and outstanding as of December 31, 2019			2				2
Common stock–Class B, par value $0.0001: 2,409,738 shares authorized as of December 31, 2020 and December 31, 2019; 1,802,606 shares issued and outstanding as of December 31, 2020 and 1,862,608 shares issued and outstanding as of December 31, 2019			-				-
Additional paid in capital			102,004				83,487
Accumulated surplus			34,287				15,507
Accumulated other comprehensive income (loss)			4,857				(1,675	)
Total ACM Research, Inc. stockholders’ equity			141,150				97,321
Non-controlling interests			67,020				-
Total stockholders’ equity			208,170				97,321
Total liabilities, redeemable non-controlling interests, and stockholders’ equity		$	341,257			$	217,703

ACM RESEARCH, INC.

Condensed Consolidated Statements of Operations and Comprehensive Income

		Three Months Ended December 31,								Year Ended December 31,
		2020				2019				2020				2019
		(Unaudited)								(Unaudited)
		( In thousands, except share and per share data)								( In thousands, except share and per share data)
Revenue		$	45,562			$	24,608			$	156,624			$	107,524
Cost of revenue			25,888				12,165				87,025				56,870
Gross profit			19,674				12,443				69,599				50,654
Operating expenses:
Sales and marketing			5,249				3,223				16,773				11,902
Research and development			5,878				3,302				19,119				12,900
General and administrative			3,115				2,069				12,215				8,061
Total operating expenses, net			14,242				8,594				48,107				32,863
Income from operations			5,432				3,849				21,492				17,791
Interest income			63				205				897				333
Interest expense			(371	)			(207	)			(982	)			(745	)
Change in fair value of financial liability			-				-				(11,964	)			-
Unrealized gain on trading securities			3,604				-				12,574				-
Other income (expense), net			(2,444	)			(739	)			(3,377	)			1,393
Equity income (loss) in net income (loss) of affiliates			116				(92	)			655				168
Income before income taxes			6,400				3,016				19,295				18,940
Income tax benefit			2,798				1,185				2,382				518
Net income			9,198				4,201				21,677				19,458
Less: Net income attributable to non-controlling interests and redeemable non-controlling interests			669				257				2,897				564
Net income attributable to ACM Research, Inc.		$	8,529			$	3,944			$	18,780			$	18,894
Comprehensive income:
Net income			9,198				4,201				21,677				19,458
Foreign currency translation adjustment			6,394				2,003				10,493				(899	)
Comprehensive Income			15,592				6,204				32,170				18,559
Less: Comprehensive income attributable to non-controlling interests and redeemable non-controlling interests			3,244				176				6,858				483
Comprehensive income attributable to ACM Research, Inc.		$	12,348			$	6,028			$	25,312			$	18,076
Net income attributable to ACM Research, Inc. per common share:
Basic		$	0.46			$	0.22			$	1.03			$	1.12
Diluted		$	0.39			$	0.19			$	0.89			$	0.99
Weighted average common shares outstanding used in computing per share amounts:
Basic			18,557,085				18,043,007				18,233,361				16,800,623
Diluted			21,794,203				20,373,336				21,183,469				19,135,497

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 expenses, operating income, net income attributable to ACM Research, Inc., and basic and diluted earnings per share as supplemental measures to GAAP financial measures, each of which excludes stock-based compensation (“SBC”) from the equivalent GAAP financial line items. In addition, non-GAAP net income (loss) attributable to ACM Research, Inc., and basic and diluted earnings per share exclude non-cash change in fair value of financial liabilities and unrealized gain on trading securities. The following table reconciles gross margin, operating expenses, operating income, net income attributable to ACM Research, Inc., and basic and diluted earnings per share to the related non-GAAP financial measures:

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