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ACM Research Reports Second Quarter 2023 Results

FREMONT, Calif., Aug. 04, 2023 (GLOBE NEWSWIRE) -- ACM Research, Inc. (“ACM” or the “Company”) (NASDAQ: ACMR), a leading supplier of wafer processing solutions for semiconductor and advanced wafer-level packaging applications, today reported financial results for its second quarter ended June 30, 2023.

“I am pleased with our second quarter results, with strong revenue growth and good profitability, as our operations have largely returned to a “new-normal” following several years of COVID-related disruptions,” said ACM’s President and Chief Executive Officer, Dr. David Wang. “Our results demonstrate good spending on mature nodes and market share gains at our customer base, together with penetration from new products and new customers.”

Dr. Wang continued, “We continue to expect growth in 2023, driven by continued investments in mature node capacity by our China-based customers, and growing traction for our multi-product portfolio. We are moving forward with longer-term growth initiatives, with technical progress for our Track and PECVD platforms, continued evaluation of two cleaning tools at the U.S. facility of a major U.S.-based semiconductor manufacturer, and we plan to deliver our first evaluation tool to a major European semiconductor manufacturer during the fourth quarter of 2023. We are excited to begin initial production at our facility in Lingang, Shanghai later this year, and we continue to expand our operations in Korea to support the global market opportunity.”

 Three Months Ended June 30,
 2023 2022 2023 2022
 (dollars in thousands, except EPS)
Revenue$144,577  $104,395  $144,577  $104,395 
Gross margin 47.5%  42.3%  47.6%  42.4%
Income from operations$30,430  $20,035  $32,447  $22,004 
Net income attributable to ACM Research, Inc.$26,825  $12,236  $31,297  $14,628 
Basic EPS$0.45  $0.21  $0.52  $0.25 
Diluted EPS$0.41  $0.18  $0.48  $0.22 

 Six Months Ended June 30,
  2023  2022 2023 2022
 (dollars in thousands, except EPS)
Revenue$218,833  $146,581  $218,833  $146,581 
Gross margin 49.6%  43.6%  49.8%  43.7%
Income from operations$39,292  $10,729  $43,377  $14,072 
Net income attributable to ACM Research, Inc.$33,970  $6,450  $41,164  $14,074 
Basic EPS$0.57  $0.11  $0.69  $0.24 
Diluted EPS$0.52  $0.10  $0.63  $0.21 

(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.” Non-GAAP financial measures exclude stock-based compensation and, with respect to net income (loss) attributable to ACM Research, Inc. and basic and diluted earnings per share, also exclude unrealized loss on trading securities.


The Company is maintaining its revenue guidance range for fiscal year 2023 of $515 million to $585 million. This expectation is based on ACM management’s current assessment of the continuing impact from international trade policy together with various expected spending scenarios of key customers, supply chain constraints, and the timing of acceptances for first tools under evaluation in the field, among other factors.

Operating Highlights and Recent Announcements

  • Shipments. Total shipments in the second quarter of 2023 were $153 million, up 37% from the second quarter of 2022. Total shipments include deliveries for revenue in the quarter and deliveries of first tool systems awaiting customer acceptance for potential revenue in future quarters.
  • Dividend. During its June 27, 2023 annual stockholder meeting, the stockholders of ACM Research (Shanghai), Inc. (“ACM Shanghai”), approved, amongst other items, a dividend to be paid to its stockholders. The amount of the approved dividend is RMB 0.372 per share for an aggregate total of approximately RMB 161.3 million (approximately $22.2 million).
  • Auditor Resignation. On July 21, 2023, the Company was informed by Armanino LLP (“Armanino”), the Company’s current independent auditor, that Armanino will resign as the Company’s independent registered public accounting firm effective as of the earlier of (a) the date the Company engages a new independent registered public accounting firm or (b) the filing of the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2023. Armanino advised the Company that its decision to resign was due to Armanino’s decision to exit from the practice of providing financial statement audit services to all public companies. In light of Armanino’s determination, the Audit Committee of the Company’s Board of Directors has initiated a process to select and appoint a new public accounting firm to serve as the Company’s independent registered public accountant commencing with the audit of the Company’s financial statements for the fiscal year ending December 31, 2023.

Financial Summary

Unless otherwise noted, the following figures refer to the second quarter of 2023 and comparisons are with the second quarter of 2022.

  • Revenue was $144.6 million, up 38.5%, reflecting higher sales of single wafer cleaning, Tahoe and semi-critical cleaning equipment, and higher sales of Advance packaging (excluding ECP), services and spares.
  • Gross margin was 47.5%, up from 42.3%. Non-GAAP gross margin, which excludes stock-based compensation, was 47.6%, up from 42.4%. Gross margin exceeded the range of 40% to 45% reflected in the Company’s long-term business model. The increase in gross margin was due to a favorable product mix, improved gross margins for specific product lines, and a favorable impact from fluctuations in the RMB to U.S. dollar exchange rate. The Company expects gross margin to vary from period to period due to a variety of factors, such as product mix, currency impacts and sales volume.
  • Operating expenses were $38.2 million, an increase of 58.4%. Non-GAAP operating expenses, which exclude the effect of stock-based compensation, were $36.3 million, up 62.9%. Operating expenses as a percent of revenue increased to 26.4% from 23.1%. Non-GAAP operating expenses as a percent of revenue increased to 25.1% from 21.4%.
  • Operating income was $30.4 million, up from $20.0 million. Non-GAAP operating income, which excludes the effect of stock-based compensation, was $32.4 million, up from $22.0 million.
  • Unrealized loss on trading securities was $2.5 million. The loss reflects the change in market value of the investments by ACM Shanghai in trading securities. The value is marked-to-market quarterly and is excluded in the non-GAAP financial metrics.
  • Realized gain from sale of trading securities was $3.9 million, which generated net proceeds of $6.6 million.
  • Income tax expense was $7.6 million, compared to $7.7 million. As a result of a change in Section 174 of the U.S. Internal Revenue Code of 1986, as amended, that became effective on January 1, 2022, the Company’s effective tax rate remains elevated, due primarily to the requirement to capitalize and amortize previously deductible research and experimental expenses.
  • Net income attributable to ACM Research, Inc. was $26.8 million, up from $12.2 million. Non-GAAP net income attributable to ACM Research, Inc., which excludes the effect of stock-based compensation and unrealized loss on trading securities, was $31.3 million, up from $14.6 million.
  • Net income per diluted share attributable to ACM Research, Inc. was $0.41, up from $0.18. Non-GAAP net income per diluted share, which excludes the effect of stock-based compensation and unrealized loss on trading securities, was $0.48, up from $0.22.
  • Cash and cash equivalents were $257.4 million at June 30, 2023, versus $260.4 million at March 31, 2023. Cash and cash equivalents, plus restricted cash and time deposits, were $376.1 million at June 30, 2023, versus $381.7 million at March 31, 2023.

Conference Call Details

A conference call to discuss results will be held on Friday, August 4, 2023, at 8:00 a.m. Eastern Time (8:00 p.m. China Time). To join the conference call via telephone, participants must use the following link to complete an online registration process. Upon registering, each participant will receive email instructions to access the conference call, including dial-in information and a PIN number allowing access to the conference call. This pre-registration process is designed by the operator to reduce delays due to operator congestion when accessing the live call.

Online Registration:

Participants who have not pre-registered may join the webcast by accessing the link at

A live and archived webcast will be available on the Investors section of the ACM website at

Use of Non-GAAP Financial Measures

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 earnings per share exclude non-cash change in fair value of financial assets and liabilities and unrealized gain on trading securities, which ACM also believes are 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 GAAP to non-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

Certain statements contained in this press release are not historical facts and may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “plans,” “expects,” “believes,” “anticipates,” “designed,” and similar words are intended to identify forward-looking statements. Forward-looking statements are based on ACM management’s current expectations and beliefs, and involve a number of risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from those stated or implied by the forward-looking statements. A description of certain of these risks, uncertainties and other matters can be found in filings ACM makes with the U.S. Securities and Exchange Commission, all of which are available at Because forward-looking statements involve risks and uncertainties, actual results and events may differ materially from results and events currently expected by ACM. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. 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.

About ACM Research, Inc.

The Company 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. The ACM Research logo is a trademark of ACM Research, Inc. For convenience, this trademark appears 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:

In the United States:The Blueshirt Group
Yujia Zhai
+1 (860) 214-0809
In China:The Blueshirt Group Asia
Gary Dvorchak, CFA
+86 (138) 1079-1480

Condensed Consolidated Balance Sheets
 June 30, 2023 December 31, 2022
 (In thousands)
Current assets:   
Cash and cash equivalents$257,420  $247,951 
Restricted cash 582   500 
Short-term time deposits 6,000   70,492 
Trading securities 6,375   20,209 
Accounts receivable 200,745   182,936 
Other receivables 34,491   29,617 
Inventories 471,094   393,172 
Advances to related party 1,155   3,322 
Prepaid expenses 18,970   15,607 
Total current assets 996,832   963,806 
Property, plant and equipment, net 159,013   82,875 
Land use right, net 8,290   8,692 
Operating lease right-of-use assets, net 7,809   2,489 
Intangible assets, net 2,107   1,255 
Long-term time deposits 112,104   101,956 
Deferred tax assets 11,249   6,703 
Long-term investments 16,122   17,459 
Other long-term assets 3,388   50,265 
Total assets$1,316,914  $1,235,500 
Liabilities and Equity   
Current liabilities:   
Short-term borrowings$53,976  $56,004 
Current portion of long-term borrowings 3,239   2,322 
Related party accounts payable 11,879   14,468 
Accounts payable 106,861   101,735 
Advances from customers 195,485   153,773 
Deferred revenue 5,050   4,174 
Income taxes payable 10,324   3,469 
FIN-48 payable 6,446   6,686 
Other payables and accrued expenses 59,997   52,201 
Current portion of operating lease liability 3,042   1,382 
Total current liabilities 456,299   396,214 
Long-term borrowings 15,899   18,687 
Long-term operating lease liability 4,767   1,107 
Other long-term liabilities 6,566   7,321 
Total liabilities 483,531   423,329 
Commitments and contingencies    
Stockholders’ equity:   
Class A Common stock 5   5 
Class B Common stock 1   1 
Additional paid-in capital 612,699   604,089 
Retained earnings 124,284   94,426 
Statutory surplus reserve 16,881   16,881 
Accumulated other comprehensive loss (61,916)  (40,546)
Total ACM Research, Inc. stockholders’ equity 691,954   674,856 
Non-controlling interests 141,429   137,315 
Total equity 833,383   812,171 
Total liabilities and equity$1,316,914  $1,235,500 


Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
 Three Months Ended June 30, Six Months Ended June 30,
  2023   2022   2023   2022 
 (Unaudited) (Unaudited)
 ( In thousands, except share and per share data) ( In thousands, except share and per share data)
Revenue$144,577  $104,395  $218,833  $146,581 
Cost of revenue 75,938   60,238   110,208   82,738 
Gross profit 68,639   44,157   108,625   63,843 
Operating expenses:       
Sales and marketing 11,439   7,664   20,776   14,361 
Research and development 20,064   11,367   34,093   28,713 
General and administrative 6,706   5,091   14,464   10,040 
Total operating expenses 38,209   24,122   69,333   53,114 
Income from operations 30,430   20,035   39,292   10,729 
Interest income 2,346   2,144   4,131   3,949 
Interest expense (649)  (306)  (1,344)  (567)
Realized gain from sale of trading securities 3,919   -   7,913   - 
Unrealized loss on trading securities (2,455)  (423)  (3,109)  (4,281)
Other income, net 3,724   2,505   2,306   2,742 
Equity income in net income of affiliates 3,920   472   3,888   401 
Income before income taxes 41,235   24,427   53,077   12,973 
Income tax expense (7,638)  (7,679)  (10,517)  (3,668)
Net income 33,597   16,748   42,560   9,305 
Less: Net income attributable to non-controlling interests 6,772   4,512   8,590   2,855 
Net income attributable to ACM Research, Inc.$26,825  $12,236  $33,970  $6,450 
Comprehensive income (loss):       
Net income 33,597   16,748   42,560   9,305 
Foreign currency translation adjustment (35,269)  (40,372)  (25,846)  (37,918)
Comprehensive Income (loss) (1,672)  (23,624)  16,714   (28,613)
Less: Comprehensive income (loss) attributable to non-controlling interests and redeemable non-controlling interests 652   (2,248)  4,114   (3,321)
Comprehensive income (loss) attributable to ACM Research, Inc.$(2,324) $(21,376) $12,600  $(25,292)
Net income attributable to ACM Research, Inc. per common share:       
Basic$0.45  $0.21  $0.57  $0.11 
Diluted$0.41  $0.18  $0.52  $0.10 
Weighted average common shares outstanding used in computing per share amounts:       
Basic 59,898,149   59,177,643   59,817,903   59,003,484 
Diluted 64,929,638   65,478,677   64,968,900   65,772,973 


Total Revenue by Product Category, by Equipment Type and by Region
 Three Months Ended June 30, Six Months Ended June 30,
 ($ in thousands)
Single wafer cleaning, Tahoe and semi-critical cleaning equipment$112,528  $72,583  $149,142  $98,616 
ECP (front-end and packaging), furnace and other technologies 19,117   20,500   45,715   32,748 
Advanced packaging (excluding ECP), services & spares 12,932   11,312   23,976   15,217 
Total Revenue By Product Category$ 144,577   $ 104,395   $ 218,833   $ 146,581  
Wet-cleaning and other front-end processing tools$122,415  $79,553  $178,797  $111,254 
Advanced packaging, other processing tools, services and spares 22,162   24,842   40,036   35,327 
Total Revenue Front-end and Back-End$ 144,577   $ 104,395   $ 218,833   $ 146,581  
 Three Months Ended June 30, Six Months Ended June 30,
  2023   2022   2023   2022 
Mainland China$134,767  $100,275  $207,226  $142,405 
Other Regions 9,810   4,120   11,607   4,176 
Total Revenue By Region$ 144,577   $ 104,395   $ 218,833   $ 146,581  


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 attributable to ACM Research, Inc., and basic and diluted earnings per share exclude 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:

 Three Months Ended June 30,
Other non-operating adjustments
SBCOther non-operating adjustments
 (In thousands)
Revenue$144,577 $- $- $144,577 $104,395 $- $- $104,395 
Cost of revenue (75,938) (125) -  (75,813) (60,238) (140) -  (60,098)
Gross profit 68,639  (125) -  68,764  44,157  (140) -  44,297 
Operating expenses:        
Sales and marketing (11,439) (431) -  (11,008) (7,664) (574) -  (7,090)
Research and development (20,064) (709) -  (19,355) (11,367) (656) -  (10,711)
General and administrative (6,706) (752) -  (5,954) (5,091) (599) -  (4,492)
Total operating expenses (38,209) (1,892) -  (36,317) (24,122) (1,829) -  (22,293)
Income (loss) from operations$30,430 $(2,017)$- $32,447 $20,035 $(1,969)$- $22,004 
Unrealized loss on trading securities (2,455) -  (2,455) -  (423) -  (423) - 
Net income (loss) attributable to ACM Research, Inc.$ 26,825 $ (2,017)$ (2,455)$ 31,297 $ 12,236 $ (1,969)$ (423)$ 14,628 
Basic EPS$0.45   $0.52 $0.21   $0.25 
Diluted EPS$0.41   $0.48 $0.18   $0.22 
 Six Months Ended June 30,
SBCOther non-operating adjustmentsAdjusted
SBCOther non-operating adjustmentsAdjusted
 (In thousands)
Revenue$218,833 $- $- $218,833 $146,581 $- $- $146,581 
Cost of revenue (110,208) (250) -  (109,958) (82,738) (253) -  (82,485)
Gross profit 108,625  (250) -  108,875  63,843  (253) -  64,096 
Operating expenses:        
Sales and marketing (20,776) (862) -  (19,914) (14,361) (928) -  (13,433)
Research and development (34,093) (1,410) -  (32,683) (28,713) (1,067) -  (27,646)
General and administrative (14,464) (1,563) -  (12,901) (10,040) (1,095) -  (8,945)
Total operating expenses (69,333) (3,835) -  (65,498) (53,114) (3,090) -  (50,024)
Income from operations$39,292 $(4,085)$- $43,377 $10,729 $(3,343)$- $14,072 
Unrealized loss on trading securities (3,109) -  (3,109) -  (4,281) -  (4,281) - 
Net income (loss) attributable to ACM Research, Inc.$ 33,970 $ (4,085)$ (3,109)$ 41,164 $ 6,450 $ (3,343)$ (4,281)$ 14,074 
Basic EPS$0.57   $0.69 $0.11   $0.24 
Diluted EPS$0.52   $0.63 $0.10   $0.21 

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