Exhibit 99.01
 
 
 
ACM Research Reports Fourth Quarter and Fiscal Year 2018 Results
 
FREMONT, California, March 6, 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 fourth quarter and fiscal year ended December 31, 2018.
 
ACM’s President and Chief Executive Officer Dr. David Wang commented, “Our strong financial performance in 2018 was a result of robust customer demand and crisp execution. We delivered 104% revenue growth, expanded operating margins, and generated $6.9 million in cash flow from operations. In addition to strong financial results, we made significant operating progress in 2018. We ramped production at our second factory, delivered a significant number of first tools, and introduced our newest major platform, the Ultra-C Tahoe.”
 
Dr. Wang continued, “As we head into 2019, we continue to see solid business momentum. We are committed to achieving our vision of becoming a major player in the semiconductor equipment market, and we look forward to delivering another strong year in 2019.”
 
Operating Highlights
 
Shipments. Total shipments in 2018 were approximately $95 million, versus $40 million in 2017. Total shipments in the fourth quarter of 2018 were approximately $32 million, versus $13 million in the fourth quarter of 2017, and $32 million in the third quarter of 2018. Total shipments include deliveries for revenue in the quarter, and deliveries of systems awaiting customer acceptance for potential revenue in future quarters.
 
New Production Facility Ramping. More than 40% of fourth quarter output was produced at ACM’s second factory. The second factory adds 50,000 square feet of available floor space to complement the 36,000 square feet at ACM’s initial facility.
 
Ultra-C Tahoe. ACM delivered its first Ultra-C Tahoe evaluation tool in January of 2019. 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.
 
Financial Summary
 
 
 
Three Months Ended December 31,
 
 
 
GAAP
 
 
Non-GAAP(1)
 
 
 
2018
 
 
2017
 
 
2018
 
 
2017
 
 
 
(dollars in thousands)
 
Revenue                                                                     
 $20,848 
 $17,192 
 $20,848 
 $17,192 
Gross margin(2)                                                                     
  49.5%
  53.4%
  49.6%
  53.4%
Income from operations(2)                                                                     
 $2,640 
 $3,765 
 $3,232 
 $3,696 
Net income attributable to ACM Research, Inc.(2)
 $2,286 
 $3,384 
 $2,878 
 $3,315 
Basic EPS(2)                                                                     
 $0.14 
 $0.28 
 $0.18 
 $0.28 
Diluted EPS(2)                                                                     
 $0.13 
 $0.25 
 $0.16 
 $0.24 
 
 
 
1
 
  
 
 
Twelve Months Ended December 31,
 
 
 
GAAP
 
 
Non-GAAP(1)
 
 
 
2018
 
 
2017
 
 
2018
 
 
2017
 
 
 
(dollars in thousands)
 
Revenue                                                                     
 $74,643 
 $36,506 
 $74,643 
 $36,506 
Gross margin(2)                                                                     
  46.2%
  47.2%
  46.2%
  47.2%
Income from operations(2)                                                                     
 $6,471 
 $700 
 $9,834 
 $2,323 
Net income (loss) attributable to ACM Research, Inc.(2)
 $6,574 
 $(318)
 $9,937 
 $1,305 
Basic EPS(2)                                                                     
 $0.42 
 $(0.05)
 $0.63 
 $0.19 
Diluted EPS(2)                                                                     
 $0.37 
 $(0.05)
 $0.55 
 $0.15 
 
(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.
 
Revenue. Revenue for 2018 was $74.6 million, up 104% from 2017, due primarily to an increase in revenue from single-wafer wet cleaning tools. Revenue for the fourth quarter of 2018 was $20.8 million, up 21% from the fourth quarter of 2017, due to an increased volume of tools shipped for revenue, and higher prices associated with these tools.
 
Gross margin. Gross margin for 2018 was 46.2%, versus 47.2% in 2017. Gross margin for the fourth quarter of 2018 was 49.5%, versus 53.4% in 2017. Gross margin was above 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. Operating expenses for fiscal year 2018 were $28.0 million, compared to $16.5 million in fiscal 2017. The increase in operating expenses for 2018 was due to higher R&D spending, sales and marketing expenses, and general and administrative expenses. Operating expenses in the fourth quarter of 2018 were $7.7 million, up from $5.4 million in the fourth quarter of 2017. The increase in operating expenses in the fourth quarter of 2018, versus the fourth quarter of 2017 was due primarily to higher R&D spending.
 
Net income attributable to ACM Research, Inc. Net income for the fiscal year 2018 was $6.6 million, compared to net loss of $0.3 million in fiscal year 2017. Net income in the fourth quarter of 2018 was $2.3 million, compared to $3.4 million in the fourth quarter of 2017.
 
Cash and equivalents at quarter-end were $27.1 million, up from $18.2 million at the end of the third quarter of 2018, and $17.7 million in the fourth quarter of 2017.
 
 
2
 
  
Outlook
 
For fiscal year 2019, the Company expects revenue to be approximately $100 million.
 
Conference Call Details
 
A conference call to discuss results will be held on Thursday, March 7, 2019 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 8884467.
 
 
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 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 Research’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 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 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 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
 
 
 
December 31,
2018
 
 
December 31,
2017
 
 
 
(unaudited)
 
 
 
 
 
 
(in thousands, except share and per share data)
 
Assets
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
Cash and cash equivalents
 $27,124 
 $17,681 
Accounts receivable, less allowance for doubtful accounts of $0 as of
December 31, 2018 and $0 as of December 31, 2017
  24,608 
  26,762 
Other receivables
  3,547 
  2,491 
Inventories
  38,764 
  15,388 
Prepaid expenses
  1,985 
  546 
Other current assets
  - 
  46 
        Total current assets
  96,028 
  62,914 
Property, plant and equipment, net
  3,708 
  2,340 
Intangible assets, net
  274 
  106 
Deferred tax assets
  1,637 
  1,294 
Investment in affiliates, equity method
  1,360 
  1,237 
Other long-term assets
  40 
  - 
                         Total assets
  103,047 
  67,891 
Liabilities and Stockholders’ Equity
    
    
Current liabilities:
    
    
    Short-term borrowings
  9,447 
  5,095 
Warrant liability
  - 
  3,079 
    Accounts payable
  16,673 
  7,419 
Advances from customers
  8,417 
  143 
   Income taxes payable
  1,193 
  44 
Other payables and accrued expenses
  10,410 
  6,037 
            Total current liabilities
  46,140 
  21,817 
Other long-term liabilities
  4,583 
  6,217 
                Total liabilities
  50,723 
  28,034 
Commitments and contingencies
    
    
Stockholders’ equity:
    
    
Common stock – Class A, par value $0.0001: 100,000,000 shares authorized
as of December 31, 2018 and 2017. 14,110,315 shares issued and
outstanding as of December 31, 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 December 31, 2018 and 2017. 1,898,423 shares issued and outstanding as
of December 31, 2018 and 2,409,738 shares issued and outstanding as of
December 31, 2017
  - 
  - 
Additional paid in capital
  56,567 
  49,695 
Accumulated deficit
  (3,387)
  (9,961)
Accumulated other comprehensive income (loss)
  (857)
  122 
               Total stockholders’ equity
  52,324 
  39,857 
                      Total liabilities and stockholders’ equity
 $103,047 
 $67,891 
 
 
 
5
 
 
ACM RESEARCH, INC.
Condensed Consolidated Statements of Operations and Comprehensive Loss
 
 
 
Three Months Ended December 31,
 
 
Year Ended December 31,
 
 
 
2018
 
 
2017
 
 
2018
 
 
2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
( In thousands, except share and per share data)
 
 
( In thousands, except share and per share data)
 
Revenue
 $20,848 
 $17,192 
 $74,643 
 $36,506 
Cost of revenue
  10,532 
  8,019 
  40,194 
  19,281 
        Gross profit
  10,316 
  9,173 
  34,449 
  17,225 
Operating expenses:
    
    
    
    
    Sales and marketing
  1,845 
  1,881 
  9,611 
  5,500 
    Research and development
  4,156 
  2,062 
  10,380 
  5,138 
    General and administrative
  1,675 
  1,465 
  7,987 
  5,887 
         Total operating expenses, net
  7,676 
  5,408 
  27,978 
  16,525 
        Income (loss) from operations
  2,640 
  3,765 
  6,471 
  700 
Interest income
  9 
  2 
  29 
  9 
Interest expense
  (134)
  (80)
  (498)
  (277)
Other expense, net
  42 
  (263)
  1,255 
  (794)
Equity income in net income of affiliates
  (112)
  17 
  123 
  37 
        Income (loss) before income taxes
  2,445 
  3,441 
  7,380 
  (325)
Income tax benefit (expense)
  (159)
  (76)
  (806)
  (547)
        Net income (loss) 
  2,286 
  3,365 
  6,574 
  (872)
Less: Net income (loss) attributable to non-controlling interests
  - 
  (19)
  - 
  (554)
        Net income (loss) attributable to ACM Research, Inc.
 $2,286 
 $3,384 
 $6,574 
 $(318)
Comprehensive income (loss)
    
    
    
    
    Net  income (loss)
  2,286 
  3,365 
  6,574 
  (872)
    Foreign currency translation adjustment
  98 
  (20)
  (979)
  472 
        Comprehensive income (loss)
  2,384 
  3,345 
  5,595 
  (400)
Less: Comprehensive income (loss) attributable to non-controlling interests
  - 
  (22)
  - 
  (369)
         Total comprehensive income (loss) attributable to ACM Research, Inc. 
 $2,384 
 $3,367 
 $5,595 
 $(31)
 
    
    
    
    
 
Net income (loss) attributable to ACM Research, Inc. per common share :
 
    
    
    
     Basic
 $0.14 
 $0.28 
 $0.42 
 $(0.05)
     Diluted
 $0.13 
 $0.25 
 $0.37 
 $(0.05)
 
    
    
    
    
 
Weighted average common shares outstanding used in computing per share amounts:
 
    
    
    
     Basic
  16,004,781 
  12,013,651 
  15,788,460 
  6,865,390 
     Diluted
  18,115,071 
  13,587,443 
  17,912,105 
  6,865,390 
  
 
6
 
 
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 tables reconcile gross margin, operating income and net income (loss) to the related non-GAAP financial measures:
 
 
 
Three Months Ended December 31,      
 
 
 
2018    
 
 
2017    
 
 
 
Actual
 
 
SBC
 
 
Adjusted
 
 
Actual
 
 
SBC
 
 
Adjusted
 
 
 
(GAAP)
 
 
SBC
 
 
(Non-GAAP)
 
 
(GAAP)
 
 
SBC
 
 
(Non-GAAP)
 
 
  (in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 $20,848 
 $- 
 $20,848 
 $17,192 
 $- 
 $17,192 
Cost of revenue
  (10,532)
  (27)
  (10,505)
  (8,019)
  (6)
  (8,013)
 Gross profit
  10,316 
  (27)
  10,343 
  9,173 
  (6)
  9,179 
Operating expenses:
    
    
    
    
    
    
 Sales and marketing
  (1,845)
  (5)
  (1,840)
  (1,881)
  (18)
  (1,863)
 Research and development
  (4,156)
  (124)
  (4,032)
  (2,062)
  (12)
  (2,050)
 General and administrative
  (1,675)
  (436)
  (1,239)
  (1,465)
  105 
  (1,570)
Income (Loss) from operations
 $2,640 
 $(592)
 $3,232 
 $3,765 
 $69 
 $3,696 
Net income (loss) attributable to ACM Research, Inc.
 $2,286 
 $(592)
 $2,878 
 $3,384 
 $69 
 $3,315 
 
    
    
    
    
    
    
Net income (loss) attributable to ACM Research, Inc. per common share :
 
    
    
    
Basic
 $0.14 
 $(0.04)
 $0.18 
 $0.28 
 $0.01 
 $0.28 
Diluted
 $0.13 
 $(0.03)
 $0.16 
 $0.25 
 $0.01 
 $0.24 
 
 
 
Twelve Months Ended December 31,      
 
 
 
2018    
 
 
2017    
 
 
 
Actual
 
 
SBC
 
 
Adjusted
 
 
Actual
 
 
SBC
 
 
Adjusted
 
 
 
(GAAP)
 
 
SBC
 
 
(Non-GAAP)
 
 
(GAAP)
 
 
SBC
 
 
(Non-GAAP)
 
 
  (in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 $74,643 
 $- 
 $74,643 
 $36,506 
 $- 
 $36,506 
Cost of revenue
  (40,194)
  (71)
  (40,123)
  (19,281)
  (21)
  (19,260)
 Gross profit
  34,449 
  (71)
  34,520 
  17,225 
  (21)
  17,246 
Operating expenses:
    
    
    
    
    
    
 Sales and marketing
  (9,611)
  (120)
  (9,491)
  (5,500)
  (53)
  (5,447)
 Research and development
  (10,380)
  (255)
  (10,125)
  (5,138)
  (50)
  (5,088)
 General and administrative
  (7,987)
  (2,917)
  (5,070)
  (5,887)
  (1,499)
  (4,388)
Income (Loss) from operations
 $6,471 
 $(3,363)
 $9,834 
 $700 
 $(1,623)
 $2,323 
Net income (loss) attributable to ACM Research, Inc.
 $6,574 
 $(3,363)
 $9,937 
 $(318)
 $(1,623)
 $1,305 
 
    
    
    
    
    
    
Net income (loss) attributable to ACM Research, Inc. per common share :
 
    
    
    
Basic
 $0.42 
 $(0.21)
 $0.63 
 $(0.05)
 $(0.24)
 $0.19 
Diluted
 $0.37 
 $(0.19)
 $0.55 
 $(0.05)
 $(0.24)
 $0.15 
 
 
 
7

The following information was filed by Acm Research, Inc. (ACMR) on Friday, March 8, 2019 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-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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