Exhibit 99.01
 
ACM Research Reports Third Quarter 2018 Results
 
FREMONT, California, November 7, 2018 (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 third fiscal quarter ended September 30, 2018.
 
ACM Research’s President and Chief Executive Officer Dr. David Wang commented, “Our business momentum continued in the third quarter. We delivered strong financial results, with revenue more than tripling from the third quarter of 2017. Strength was driven by solid demand and great execution, with additional contribution from customer acceptance on an important evaluation tool. Operating highlights included significant delivery of first-tools, which contributed to record total shipments for the quarter, the launch of the “Ultra-C” Tahoe product, and the start of production at our second factory in Shanghai.”
 
Dr. Wang continued, “We are excited by our business prospects, and remain committed to gaining additional market share by increasing our business with leading and emerging global IC manufacturers. For 2018, we have once again raised our full-year revenue guidance, which represents more than 100% growth versus last year.”
 
Third Quarter Operating Highlights
 
Record Total Shipments. Total shipments for the third quarter were approximately $32 million, an increase from approximately $11 million in the third quarter of 2017, and approximately $21 million in the second quarter of 2018. Quarterly shipments include deliveries for revenue in the quarter, and deliveries of first-tool systems awaiting customer acceptance for potential revenue in future quarters. ACM views first-tool deliveries as an important indicator of progress in moving customers from the qualified pipeline to a more comprehensive evaluation phase.
 
Newest Addition from ACM’s Innovation Pipeline, the Ultra-C Tahoe. In August 2018, ACM announced the Ultra-C Tahoe, a new addition to its line of advanced single-wafer cleaning tools. 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 Production Facility. On September 28, 2018, ACM held an opening ceremony to mark the completion of its new production facility. The new facility, located in the Pudong region of Shanghai, is approximately 20 kilometers from the Company's Shanghai headquarters. The new factory adds 50,000 square feet of available floor space to the 36,000 square feet of existing floor space at ACM’s initial facility.
 
 
-1-
 
 
Financial Summary
 
 
 
Three Months Ended September 30,
 
 
 
GAAP
 
 
Non-GAAP(1)
 
 
 
2018
 
 
2017
 
 
2018
 
 
2017
 
 
 
(dollars in thousands)
 
Revenue                                                                     
 $23,179 
 $4,891 
 $23,179 
 $4,891 
Gross margin(2)                                                                     
  44.4%
  45.0%
  44.5%
  45.0%
Income (loss) from operations(2)                                                                     
 $3,404 
 $(1,310)
 $3,815 
 $(967)
Net income (loss) attributable to ACM Research, Inc.(2)
 $3,853 
 $(955)
 $4,264 
 $(612)
Basic EPS                                                                     
 $0.24 
 $(0.17)
 $0.27 
 $(0.11)
Diluted EPS                                                                     
 $0.21 
 $(0.17)
 $0.23 
 $(0.11)
 
 
 
Nine Months Ended September 30,
 
 
 
GAAP
 
 
Non-GAAP(1)
 
 
 
2018
 
 
2017
 
 
2018
 
 
2017
 
 
 
(dollars in thousands)
 
Revenue                                                                     
 $53,795 
 $19,314 
 $53,795 
 $19,314 
Gross margin(2)                                                                     
  44.9%
  41.7%
  44.9%
  41.7%
Income (loss) from operations(2)                                                                     
 $3,831 
 $(3,065)
 $6,602 
 $(1,073)
Net income (loss) attributable to ACM Research, Inc.(2)
 $4,288 
 $(3,702)
 $7,059 
 $(1,710)
Basic EPS                                                                     
 $0.27 
 $(0.72)
 $0.45 
 $(0.33)
Diluted EPS                                                                     
 $0.24 
 $(0.72)
 $0.40 
 $(0.33)
 
(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.
 
All figures refer to the third quarter of 2018, unless noted otherwise. All comparisons are with the third quarter of 2017, unless otherwise noted.
 
Revenue increased 374% to $23.2 million, due to increased volume of tools shipped for revenue, higher price associated with these tools, and a significant customer acceptance achieved during the quarter.
 
Gross margin was 44.4%, compared to 45.0% in the third quarter of 2017. Gross margin was within the range of 40.0% to 45.0% set forth 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 $6.9 million, an increase of 96%. Non-GAAP operating expenses which removes stock-based compensation, was $6.5 million, up 105%. Non-GAAP operating expenses as a percent of revenue decreased to 28%, versus 65% in the third quarter of 2017.
 
Net income attributable to ACM Research, Inc. was $3.9 million, compared to a net loss attributable to ACM Research, Inc. of $1.0 million in the third quarter of 2017. Non-GAAP net income attributable to ACM Research, Inc. was $4.3 million, versus a non-GAAP net loss attributable to ACM Research, Inc. of $0.6 million in the third quarter of 2017.
 
Cash and equivalents at quarter-end were $18.2 million, up from $17.4 million at the end of the second quarter of 2018.
 
 
-2-
 
 
Outlook
 
The Company has raised its full year 2018 revenue guidance to $74 million, an increase of $4 million from the Company’s previous 2018 revenue guidance.
 
Conference Call Details
 
A conference call to discuss results will be held on Thursday, November 8, 2018 at 8:00 a.m. Eastern Time (9:00 p.m. China Time). Dial-in details for the call are as follows. Please reference conference ID 9572579.
 
           
Phone Number
Toll-Free Number
United States                   
+1 (845) 675-0437  
+1 (866) 519-4004
Hong Kong                   
+852 3018 6771
+852 8009 06601 
Mainland China                 
+86 (800) 819 0121
 
             
+86 (400) 620 8038
 
Other International
 +65 6713 5090
 
 
A recording of the webcast will be available on the investor page of the ACM Research website at www.acmrcsh.com for one week following the call.
 
Use of Non-GAAP Financial Measures
 
ACM Research presents non-GAAP gross margin, operating income (loss) and net loss as supplemental measures to GAAP financial measures regarding ACM Research’s operational performance. These supplemental measures exclude the impact of stock-based compensation, which ACM Research 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 Research believes these non-GAAP financial measures are useful to investors in assessing its operating performance. ACM Research 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 Research also believes it is in the best interests of investors for ACM Research to provide this non-GAAP information.
 
While ACM Research 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 Research’s consolidated financial statements prepared in accordance with GAAP.
 
 
-3-
 
 
Forward-Looking Statements
 
Information presented in the third paragraph 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 Research’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 Research’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 Research’s failure to successfully manage its operations; and trade regulations, currency fluctuations, political instability and war may materially adversely affect ACM Research due to its substantial non-U.S. customer and supplier base and its substantial non-U.S. manufacturing operations. ACM Research cannot guarantee any future results, levels of activity, performance or achievements. ACM Research expressly disclaims any obligation to update forward-looking statements after the date of this press release.
 
About ACM Research, Inc.
 
ACM Research 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 Research logo is a trademark of ACM Research, Inc. All rights reserved. Any other trademarks are the property of their respective owners.
 
For investor and media inquiries, please contact:
 
In the United States:    
The Blueshirt Group
Ralph Fong
+1 (415) 489-2195
ralph@blueshirtgroup.com
 
In China:     
The Blueshirt Group Asia
Gary Dvorchak, CFA
+86 (138) 1079-1480
gary@blueshirtgroup.com
 
 
 
-4-
 
 
ACM RESEARCH, INC.
Condensed Consolidated Balance Sheets
 
 
 
September 30,
2018
 
 
December 31,
2017
 
 
(unaudited)
 
 
(in thousands, except share and per share data)
 
Assets
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
Cash and cash equivalents
 $18,238 
 $17,681 
Accounts receivable, less allowance for doubtful accounts of $0 as of September 30, 2018 and $0 as of December 31, 2017
  30,965 
  26,762 
Other receivables
  1,591 
  2,491 
Inventories
  29,809 
  15,388 
Prepaid expenses
  2,142 
  546 
Other current assets
  32 
  46 
        Total current assets
  82,777 
  62,914 
Property, plant and equipment, net
  3,593 
  2,340 
Intangible assets, net
  300 
  106 
Deferred tax assets
  1,230 
  1,294 
Investment in affiliates, equity method
  1,472 
  1,237 
Other long-term assets
  41 
  - 
                         Total assets
 $89,413 
 $67,891 
Liabilities and Stockholders’ Equity
    
    
Current liabilities:
    
    
    Short-term borrowings
 $10,163 
 $5,095 
Warrant liability
  - 
  3,079 
    Accounts payable
  11,991 
  7,419 
Advances from customers
  3,918 
  143 
   Income taxes payable
  689 
  44 
Other payables and accrued expenses
  8,090 
  6,037 
            Total current liabilities
  34,851 
  21,817 
Other long-term liabilities
  5,230 
  6,217 
                Total liabilities
  40,081 
  28,034 
Commitments and contingencies
    
    
Stockholders’ equity:
    
    
Common stock – Class A, par value $0.0001: 100,000,000 shares authorized as of September 30, 2018 and December 31, 2017. 14,070,065 shares issued and outstanding as of September 30, 2018 and 12,935,546 shares issued and outstanding as of December 31, 2017
  1 
  1 
Common stock–Class B, par value $0.0001: 7,303,533 shares authorized as of September 30, 2018 and December 31, 2017. 1,918,423 shares issued and outstanding as of September 30, 2018 and 2,409,738 shares issued and outstanding as of December 31, 2017
  - 
  - 
Additional paid in capital
  55,959 
  49,695 
Accumulated deficit
  (5,673)
  (9,961)
Accumulated other comprehensive income (loss)
  (955)
  122 
               Total stockholders’ equity
  49,332 
  39,857 
                      Total liabilities and stockholders’ equity
 $89,413 
 $67,891 
 
 
-5-
 
 
ACM RESEARCH, INC.
Condensed Consolidated Statements of Operations and Comprehensive Loss
 
 
 
Three Months Ended September 30,
 
 
Nine Months Ended September 30,
 
 
 
2018
 
 
2017
 
 
2018
 
 
2017
 
 
(Unaudited)
(Unaudited)
 
 
( In thousands, except share and per share data)
 
 
( In thousands, except share and per share data)
 
Revenue
 $23,179 
 $4,891 
 $53,795 
 $19,314 
Cost of revenue
  12,892 
  2,692 
  29,662 
  11,262 
Gross profit
  10,287 
  2,199 
  24,133 
  8,052 
Operating expenses:
    
    
    
    
    Sales and marketing
  3,229 
  1,036 
  7,766 
  3,619 
    Research and development
  2,264 
  1,209 
  6,224 
  3,076 
    General and administrative
  1,390 
  1,264 
  6,312 
  4,422 
Total operating expenses, net
  6,883 
  3,509 
  20,302 
  11,117 
Income (loss) from operations
  3,404 
  (1,310)
  3,831 
  (3,065)
Interest income
  3 
  2 
  20 
  7 
Interest expense
  (112)
  (33)
  (364)
  (197)
Other expense, net
  902 
  (239)
  1,213 
  (531)
Equity income in net income of affiliates
  117 
  20 
  235 
  20 
Income (loss) before income taxes
  4,314 
  (1,560)
  4,935 
  (3,766)
Income tax benefit (expense)
  (461)
  278 
  (647)
  (471)
Net income (loss) attributable to ACM Research, Inc.
  3,853 
  (1,282)
  4,288 
  (4,237)
Less: Net income (loss) attributable to non-controlling interests
  - 
  (327)
  - 
  (535)
Net income (loss) attributable to ACM Research, Inc.
 $3,853 
 $(955)
 $4,288 
 $(3,702)
Comprehensive income (loss)
    
    
    
    
    Net  income (loss)
  3,853 
  (1,282)
  4,288 
  (4,237)
    Foreign currency translation adjustment
  (746)
  228 
  (1,077)
  492 
Comprehensive income (loss)
  3,107 
  (1,054)
  3,211 
  (3,745)
Less: Comprehensive income (loss) attributable to non-controlling interests
  - 
  (237)
  - 
  (347)
Total comprehensive income (loss) attributable to ACM Research, Inc.
 $3,107 
 $(817)
 $3,211 
 $(3,398)
 
    
    
    
    
 
Net income (loss) attributable to ACM Research, Inc. per common share :
 
    
    
    
     Basic
 $0.24 
 $(0.17)
 $0.27 
 $(0.72)
     Diluted
 $0.21 
 $(0.17)
 $0.24 
 $(0.72)
 
    
    
    
    
 
Weighted average common shares outstanding used in computing per share amounts:
 
    
    
    
     Basic
  15,915,864 
  5,581,637 
  15,714,310 
  5,148,255 
     Diluted
  18,169,807 
  5,581,637 
  17,816,101 
  5,148,255 
 
 
-6-
 
 
ACM RESEARCH, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
 
As described under “Use of Non-GAAP Financial Measures” above, ACM Research 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 tables reconcile gross margin, operating income and net income (loss) to the related non-GAAP financial measures:
 
 
 
Three Months Ended September 30,      
 
 
 
2018
 
 
2017
 
 
 
Actual
 
 

 
 
Adjusted
 
 
Actual
 
 

 
 
Adjusted
 
 
 
(GAAP)
 
 
SBC
 
 
(Non-GAAP)
 
 
(GAAP)
 
 
SBC
 
 
(Non-GAAP)
 
 
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 $23,179 
 $- 
 $23,179 
 $4,891 
 $- 
 $4,891 
Cost of revenue
  (12,892)
  (25)
  (12,867)
  (2,692)
  (5)
  (2,687)
Gross profit
  10,287 
  (25)
  10,312 
  2,199 
  (5)
  2,204 
Operating expenses:
    
    
    
    
    
    
Sales and marketing
  (3,229)
  (42)
  (3,187)
  (1,036)
  (17)
  (1,019)
Research and development
  (2,264)
  (64)
  (2,200)
  (1,209)
  (13)
  (1,196)
General and administrative
  (1,390)
  (280)
  (1,110)
  (1,264)
  (308)
  (956)
Income (Loss) from operations
 $3,404 
 $(411)
 $3,815 
 $(1,310)
 $(343)
 $(967)
Net income (loss) attributable to ACM Research, Inc.
 $3,853 
 $(411)
 $4,264 
 $(955)
 $(343)
 $(612)
 
 
 
Nine Months Ended September 30,      
 
 
 
2018
 
 
2017
 
 
 
Actual
 
 

 
 
Adjusted
 
 
Actual
 
 

 
 
Adjusted
 
 
 
(GAAP)
 
 
SBC
 
 
(Non-GAAP)
 
 
(GAAP)
 
 
SBC
 
 
(Non-GAAP)
 
 
 (in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 $53,795 
 $- 
 $53,795 
 $19,314 
 $- 
 $19,314 
Cost of revenue
  (29,662)
  (44)
  (29,618)
  (11,262)
  (15)
  (11,247)
Gross profit
  24,133 
  (44)
  24,177 
  8,052 
  (15)
  8,067 
Operating expenses:
    
    
    
    
    
    
Sales and marketing
  (7,766)
  (115)
  (7,651)
  (3,619)
  (35)
  (3,584)
Research and development
  (6,224)
  (131)
  (6,093)
  (3,076)
  (38)
  (3,038)
General and administrative
  (6,312)
  (2,481)
  (3,831)
  (4,422)
  (1,904)
  (2,518)
Income (Loss) from operations
 $3,831 
 $(2,771)
 $6,602 
 $(3,065)
 $(1,992)
 $(1,073)
Net income (loss) attributable to ACM Research, Inc.
 $4,288 
 $(2,771)
 $7,059 
 $(3,702)
 $(1,992)
 $(1,710)
 
 
 
-7-

The following information was filed by Acm Research, Inc. (ACMR) on Wednesday, November 7, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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