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Ultra Clean Reports Fourth Quarter and Full Year 2023 Financial Results

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HAYWARD, Calif., Feb. 21, 2024 /PRNewswire/ — Ultra Clean Holdings, Inc. (Nasdaq: UCTT), today reported its financial results for the fourth quarter and full year ended December 29, 2023.

“UCT executed well in the fourth quarter with results coming in as expected despite a dynamic business environment,” said Jim Scholhamer, CEO. “As the semiconductor equipment inventory adjustment cycle remains fluid, we will continue to implement measures to synchronize our worldwide operations with our customers’ forecasts to ensure we have the flexibility and capacity to meet future demand. These efforts are creating long-lasting value to our customers and will increase UCT’s leading position within the industry over the long-term.”

“We are pleased with the execution of our plan to optimize our capital deployment strategy throughout 2023,” said Sheri Savage, CFO. “Generating $136 million in cash from operations enabled us to invest for future growth, pay down $39 million in debt, spend $29 million re-purchasing shares, and complete the strategic acquisition of HIS Innovations Group.”

Fourth Quarter 2023 GAAP Financial Results

Total revenue was $444.8 million. Products contributed $389.7 million and Services added $55.1 million. Total gross margin was 16.0%, operating margin was 1.0%, and net loss was $(3.8) million or $(0.08) per diluted share. This compares to total revenue of $435.0 million, gross margin of 15.0%, operating margin of 1.3%, and net loss of $(14.5) million or $(0.32) per diluted share, in the prior quarter.

Fourth Quarter 2023 Non-GAAP Financial Results

On a non-GAAP basis, gross margin was 16.7%, operating margin was 5.2%, and net income was $8.5 million or $0.19 per diluted share. This compares to gross margin of 15.5%, operating margin of 4.4%, and net income of $2.0 million or $0.04 per diluted share in the prior quarter.

Full Year 2023 GAAP Financial Results

Total revenue was $1,734.5 million. Products contributed $1,501.6 million and Services added $232.9 million. Total gross margin was 16.0%, operating margin was 2.0%, and net loss was $(31.1) million or $(0.70) per diluted share. This compares to total revenue of $2,374.3 million, gross margin of 19.6%, operating margin of 5.1%, and net income of $40.4  million or $0.88 per diluted share in the prior year.

Full Year 2023 Non-GAAP Financial Results

On a non-GAAP basis, the company reported gross margin of 16.6%, operating margin of 4.9%, and net income of $25.2 million or $0.56 per diluted share. This compares to gross margin of 20.2%, operating margin of 11.0%, and net income of $181.9 million or $3.98 per diluted share in the prior year.

First Quarter 2024 Outlook

The Company expects revenue in the range of $430.0 million to $480.0 million. The Company expects GAAP diluted net loss per share to be between $(0.25) and $(0.05) and non-GAAP diluted net income per share to be between $0.03 and $0.23.

Conference Call

The conference call and webcast will take place on Wednesday, February 21, 2024 at 1:45 p.m. PT and can be accessed by dialing 1-800-836-8184 or 1-646-357-8785. No passcode is required. A replay of the call will be available by dialing 1-888-660-6345 or 1-646-517-4150 and entering the confirmation code 03090#. The Webcast will be available on the Investor Relations section of the Company’s website at http://uct.com/investors/events/.

About Ultra Clean Holdings, Inc.

Ultra Clean Holdings, Inc. is a leading developer and supplier of critical subsystems, components, parts, and ultra-high purity cleaning and analytical services, primarily for the semiconductor industry. Under its Products division, UCT offers its customers an integrated outsourced solution for major subassemblies, improved design-to-delivery cycle times, design for manufacturability, prototyping, and high-precision manufacturing. Under its Services Division, UCT offers its customers tool chamber parts cleaning and coating, as well as micro-contamination analytical services. Ultra Clean is headquartered in Hayward, California. Additional information is available at www.uct.com.

Use of Non-GAAP Measures

In addition to providing results that are determined in accordance with Generally Accepted Accounting Principles in the United States of America (“GAAP”), management uses non-GAAP gross margin, non-GAAP operating margin and non-GAAP net income to evaluate the Company’s operating and financial results. We believe the presentation of non-GAAP results is useful to investors for analyzing our core business and business trends and comparing performance to prior periods, along with enhancing investors’ ability to view the Company’s results from management’s perspective. The presentation of this additional information should not be considered a substitute for results prepared in accordance with GAAP. Tables presenting reconciliations from GAAP results to non-GAAP results are included at the end of this press release.

The Company defines non-GAAP net income as net income (loss) before amortization of intangible assets, stock-based compensation, restructuring charges, acquisition activity costs, fair value adjustments, legal-related costs, VAT settlement, net loss on divestitures, Covid-19 related costs and the tax effects of the foregoing adjustments.

A reconciliation of our guidance for non-GAAP net income per diluted share for the subsequent quarter is not available due to fluctuations in the geographic mix of our earnings from quarter to quarter, which impacts our tax rate and cannot be reasonably predicted or determined. As a result, such reconciliation is not available without unreasonable efforts and we are unable to determine the probable significance of the unavailable information.

Safe Harbor Statement

The foregoing information contains, or may be deemed to contain, “forward-looking statements” (as defined in the US Private Securities Litigation Reform Act of 1995) which reflect our current views with respect to future events and financial performance. We use words such as “anticipates,” “projection,” “outlook,” “forecast,” “believes,” “plan,” “expect,” “future,” “intends,” “may,” “will,” “estimates,” “see,” “predicts,” “should” and similar expressions to identify these forward-looking statements. Forward looking statements included in this press release include our expectations about the semiconductor capital equipment market and outlook. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, the Company’s actual results may differ materially from the results predicted or implied by these forward-looking statements. These risks, uncertainties and other factors also include, among others, those identified in “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in our annual report on Form 10-K for the year ended December 30, 2022, as filed with the Securities and Exchange Commission. Ultra Clean Holdings, Inc. undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise unless required by law.

Contact:
Rhonda Bennetto
SVP Investor Relations
rbennetto@uct.com

ULTRA CLEAN HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; in millions, except per share data)

Three Months Ended

Twelve Months Ended

December 29,

December 30,

December 29,

December 30,

2023

2022

2023

2022

Revenues:

Product

$

389.7

$

499.5

$

1,501.6

$

2,074.7

Services

55.1

66.9

232.9

299.6

Total revenues

444.8

566.4

1,734.5

2,374.3

Cost of revenues:

Product

335.0

412.3

1,290.5

1,712.3

Services

38.7

45.6

166.7

197.0

Total cost of revenues

373.7

457.9

1,457.2

1,909.3

Gross profit

71.1

108.5

277.3

465.0

Operating expenses:

Research and development

6.6

7.1

28.3

28.5

Sales and marketing

13.2

13.2

51.8

54.4

General and administrative

46.7

44.4

162.0

184.3

Net loss on divestitures

77.4

Total operating expenses

66.5

64.7

242.1

344.6

Income from operations

4.6

43.8

35.2

120.4

Interest income

1.6

0.5

4.1

0.9

Interest expense

(12.8)

(10.8)

(48.8)

(33.9)

Other income (expense), net

(1.1)

3.4

(1.8)

0.9

Income (loss) before provision for income taxes

(7.7)

36.9

(11.3)

88.3

Provision for income taxes

(6.2)

8.5

10.9

37.9

Net income (loss)

(1.5)

28.4

(22.2)

50.4

Less: Net income attributable to noncontrolling interests

2.3

0.6

8.9

10.0

Net income (loss) attributable to UCT

$

(3.8)

$

27.8

$

(31.1)

$

40.4

Net income (loss) per share attributable to UCT common stockholders:

Basic

$

(0.08)

$

0.61

$

(0.70)

$

0.89

Diluted

$

(0.08)

$

0.61

$

(0.70)

$

0.88

Shares used in computing net income (loss) per share:

Basic

44.7

45.4

44.7

45.2

Diluted

44.7

45.7

44.7

45.7

 

ULTRA CLEAN HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited; in millions)

December 29,

December 30,

2023

2022

ASSETS

Current assets:

  Cash and cash equivalents

$

307.0

$

358.8

  Accounts receivable, net of allowance for credit losses

180.8

253.7

  Inventories

374.5

443.9

  Prepaid expenses and other current assets

30.9

42.4

Total current assets

893.2

1,098.8

Property, plant and equipment, net

328.3

279.6

Goodwill

265.2

248.8

Intangible assets, net

215.3

187.9

Deferred tax assets, net

3.1

36.0

Operating lease right-of-use assets

151.7

99.0

Other non-current assets

10.9

10.8

Total assets

$

1,867.7

$

1,960.9

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

  Bank borrowings

$

17.6

$

20.8

  Accounts payable

192.9

253.5

  Accrued compensation and related benefits

47.7

52.5

  Operating lease liabilities

18.1

17.1

  Other current liabilities

33.7

45.3

Total current liabilities

310.0

389.2

Bank borrowings, net of current portion

461.2

493.0

Deferred tax liabilities

19.0

52.2

Operating lease liabilities

143.0

80.3

Other liabilities

37.3

9.2

Total liabilities

970.5

1,023.9

Equity:

UCT stockholders’ equity:

  Common stock

496.6

515.5

  Retained earnings

346.7

377.8

  Accumulated other comprehensive loss

(4.4)

(5.4)

Total UCT stockholders’ equity

838.9

887.9

  Non-controlling interest

58.3

49.1

Total equity

897.2

937.0

Total liabilities and equity

$

1,867.7

$

1,960.9

 

ULTRA CLEAN HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in millions)

Twelve Months Ended

December 29,

December 30,

2023

2022

Cash flows from operating activities:

Net income (loss)

$

(22.2)

$

50.4

Adjustments to reconcile net income to net cash provided by operating activities (excluding assets
acquired, liabilities assumed at acquisition):

Depreciation and amortization

65.6

72.3

Stock-based compensation

12.1

19.1

Change in the fair value of financial instruments

1.7

1.0

Deferred income taxes

(12.4)

(0.2)

Net loss on divestitures

77.4

Others

(0.9)

(0.2)

Changes in assets and liabilities, net of effects of acquisitions and divestitures:

Accounts receivable

78.5

(15.7)

Inventories

80.8

(84.4)

Prepaid expenses and other current assets

12.5

(4.5)

Other non-current assets

(3.4)

Accounts payable

(61.5)

(68.4)

Accrued compensation and related benefits

(5.6)

7.1

Income taxes payable

(5.2)

(0.1)

Operating lease assets and liabilities

0.4

(2.2)

Other liabilities

(7.9)

(1.0)

Net cash provided by operating activities

135.9

47.2

Cash flows from investing activities:

Purchases of property, plant and equipment

(75.8)

(100.1)

Divestiture of subsidiaries

3.4

Proceeds from sale of property and equipment

2.2

0.5

Acquisition of business, net of cash acquired

(46.1)

Net cash used in investing activities

(119.7)

(96.2)

Cash flows from financing activities:

Payments on bank borrowings

(38.6)

(39.7)

Repurchase of shares

(29.4)

(12.1)

Employees’ taxes paid upon vesting of restricted stock units

(2.2)

(3.9)

Payments of debt issuance costs

(0.3)

(0.7)

Proceeds from issuance of common stock

0.8

0.7

Others

(0.2)

(0.3)

Net cash used in financing activities

(69.9)

(56.0)

Effect of exchange rate changes on cash and cash equivalents

1.9

(2.7)

Net decrease in cash and cash equivalents

(51.8)

(107.7)

Cash and cash equivalents at beginning of period

358.8

466.5

Cash and cash equivalents at end of period

$

307.0

$

358.8

 

ULTRA CLEAN HOLDINGS, INC.

REPORTABLE SEGMENTS

GAAP TO NON-GAAP RECONCILIATION

(Unaudited; dollars in millions)

GAAP

Non-GAAP

Three Months Ended

Three Months Ended

December 29, 2023

December 29, 2023

Products

Services

Consolidated

Products

Services

Consolidated

Revenues

$

389.7

$

55.1

$

444.8

$

389.7

$

55.1

$

444.8

Gross profit

$

54.7

$

16.4

$

71.1

$

56.9

$

17.5

$

74.4

Gross margin

14.0

%

29.8

%

16.0

%

14.6

%

31.7

%

16.7

%

Income from operations

$

2.7

$

1.9

$

4.6

$

17.8

$

5.3

$

23.1

Operating margin

0.7

%

3.4

%

1.0

%

4.6

%

9.5

%

5.2

%

Three Months Ended

December 29, 2023

Products

Services

Consolidated

Reconciliation of GAAP Gross profit to Non-GAAP Gross profit (in millions)

Reported gross profit on a GAAP basis

$

54.7

$

16.4

$

71.1

Amortization of intangible assets (1)

1.0

1.0

2.0

Stock-based compensation expense (2)

0.5

0.5

Restructuring charges (3)

0.3

0.1

0.4

Inventory fair value adjustment (5)

0.4

0.4

Non-GAAP gross profit

$

56.9

$

17.5

$

74.4

Reconciliation of GAAP Gross margin to Non-GAAP Gross margin

Reported gross margin on a GAAP basis

14.0

%

29.8

%

16.0

%

Amortization of intangible assets (1)

0.3

%

1.8

%

0.4

%

Stock-based compensation expense (2)

0.1

%

0.1

%

Restructuring charges (3)

0.1

%

0.1

%

0.1

%

Inventory fair value adjustment (5)

0.1

%

0.1

%

Non-GAAP gross margin

14.6

%

31.7

%

16.7

%

Reconciliation of GAAP Income (loss) from operations to Non-GAAP Income from operations (in millions)

Reported income from operations on a GAAP basis

$

2.7

$

1.9

$

4.6

Amortization of intangible assets (1)

4.3

2.9

7.2

Stock-based compensation expense (2)

3.2

0.4

3.6

Restructuring charges (3)

3.3

0.1

3.4

Acquisition-related costs (4)

3.4

3.4

Inventory fair value adjustment (5)

0.4

0.4

Legal-related costs (6)

0.5

0.5

Non-GAAP income from operations

$

17.8

$

5.3

$

23.1

Reconciliation of GAAP Operating margin to Non-GAAP Operating margin

Reported operating margin on a GAAP basis

0.7

%

3.4

%

1.0

%

Amortization of intangible assets (1)

1.1

%

5.3

%

1.6

%

Stock-based compensation expense (2)

0.9

%

0.7

%

0.8

%

Restructuring charges (3)

0.8

%

0.1

%

0.8

%

Acquisition-related costs (4)

0.9

%

0.8

%

Inventory fair value adjustment (5)

0.1

%

0.1

%

Legal-related costs (6)

0.1

%

0.1

%

Non-GAAP operating margin

4.6

%

9.5

%

5.2

%

1    Amortization of intangible assets related to the Company’s business acquisitions

2    Represents compensation expense for stock granted to employees and directors

3    Represents severance, retention and costs related to facility closures

4    Represents acquisition activity costs

5    Fair value adjustments related HIS’ sold inventories

6    Represents estimated costs related to legal proceedings

 

ULTRA CLEAN HOLDINGS, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS

Three Months Ended

Twelve Months Ended

December 29,

December 30,

September 29,

December 29,

December 30,

2023

2022

2023

2023

2022

Reconciliation of GAAP Net Income (loss) to Non-GAAP Net Income (in millions)

Reported net income (loss) attributable to UCT on a GAAP basis

$

(3.8)

$

27.8

$

(14.5)

$

(31.1)

$

40.4

Amortization of intangible assets (1)

7.2

7.0

5.5

24.1

30.1

Stock-based compensation expense (2)

3.6

4.6

3.9

12.5

19.3

Restructuring charges (3)

3.4

1.5

3.2

9.2

3.3

Acquisition related costs (4)

3.4

0.7

4.3

0.6

Fair value related adjustments (5)

2.5

4.0

Legal-related costs (6)

0.5

(0.4)

2.2

VAT settlement (7)

4.0

Net loss on divestitures (8)

77.4

Covid-19 related costs (9)

2.9

Income tax effect of non-GAAP adjustments (10)

(3.4)

(1.8)

(5.0)

(10.2)

(22.2)

Income tax effect of valuation allowance (11)

(4.9)

3.5

8.2

12.8

23.9

Non-GAAP net income attributable to UCT

$

8.5

$

42.6

$

2.0

$

25.2

$

181.9

Reconciliation of GAAP Income from operations to Non-GAAP Income from operations (in millions)

Reported income from operations on a GAAP basis

$

4.6

$

43.8

$

5.7

$

35.2

$

120.4

Amortization of intangible assets (1)

7.2

7.0

5.5

24.1

30.1

Stock-based compensation expense (2)

3.6

4.6

3.9

12.5

19.3

Restructuring charges (3)

3.4

1.5

3.2

9.2

3.3

Acquisition related costs (4)

3.4

0.7

4.3

0.6

Fair value related adjustments (5)

0.4

0.4

Legal-related costs (6)

0.5

(0.4)

2.2

VAT settlement (7)

4.0

Net loss on divestitures (8)

77.4

Covid-19 related costs (9)

2.9

Non-GAAP income from operations

$

23.1

$

56.9

$

19.0

$

85.3

$

260.2

Reconciliation of GAAP Operating margin to Non-GAAP Operating margin

Reported operating margin on a GAAP basis

1.0

%

7.7

%

1.3

%

2.0

%

5.1

%

Amortization of intangible assets (1)

1.6

%

1.2

%

1.3

%

1.4

%

1.3

%

Stock-based compensation expense (2)

0.8

%

0.8

%

0.9

%

0.7

%

0.8

%

Restructuring charges (3)

0.8

%

0.3

%

0.7

%

0.5

%

0.1

%

Acquisition related costs (4)

0.1

%

0.2

%

0.3

%

0.0

%

Fair value related adjustments (5)

0.1

%

0.0

%

Legal-related costs (6)

0.8

%

0.0

%

0.1

%

VAT settlement (7)

0.2

%

Net loss on divestitures (8)

3.3

%

Covid-19 related costs (9)

0.1

%

Non-GAAP operating margin

5.2

%

10.0

%

4.4

%

4.9

%

11.0

%

Reconciliation of GAAP Gross profit to Non-GAAP Gross profit (in millions)

Reported gross profit on a GAAP basis

$

71.1

$

108.5

$

65.2

$

277.3

$

465.0

Amortization of intangible assets (1)

2.0

1.5

1.5

6.5

6.3

Stock-based compensation expense (2)

0.5

0.4

0.2

1.5

1.5

Restructuring charges (3)

0.4

0.3

0.7

1.6

1.0

Fair value related adjustments (5)

0.4

0.4

VAT settlement (7)

4.0

Covid-19 related costs (9)

2.9

Non-GAAP gross profit

$

74.4

$

110.7

$

67.6

$

287.3

$

480.7

 

Reconciliation of GAAP Gross margin to Non-GAAP Gross margin

Reported gross margin on a GAAP basis

16.0

%

19.2

%

15.0

%

16.0

%

19.6

%

Amortization of intangible assets (1)

0.4

%

0.3

%

0.3

%

0.4

%

0.3

%

Stock-based compensation expense (2)

0.1

%

0.0

%

0.0

%

0.1

%

0.1

%

Restructuring charges (3)

0.1

%

0.0

%

0.2

%

0.1

%

0.0

%

Fair value related adjustments (5)

0.1

%

0.0

%

VAT settlement (7)

0.2

%

Covid-19 related costs (9)

0.1

%

Non-GAAP gross margin

16.7

%

19.5

%

15.5

%

16.6

%

20.2

%

Reconciliation of GAAP Interest and other income (expense) to Non-GAAP Interest and other income (expense) (in millions)

Reported interest and other income (expense) on a GAAP basis

$

(12.3)

$

(6.9)

$

(13.2)

$

(46.5)

$

(32.1)

Fair value related adjustments (5)

2.1

4.9

Non-GAAP interest and other income (expense)

$

(10.2)

$

(6.9)

$

(13.2)

$

(41.6)

$

(32.1)

Reconciliation of GAAP Earnings Per Diluted Share to Non-GAAP Earnings Per Diluted Share

Reported net income (loss) on a GAAP basis

$

(0.08)

$

0.61

$

(0.32)

$

(0.70)

0.88

Amortization of intangible assets (1)

0.16

0.15

0.12

0.54

0.66

Stock-based compensation expense (2)

0.08

0.10

0.09

0.28

0.42

Restructuring charges (3)

0.08

0.03

0.07

0.20

0.07

Acquisition related costs (4)

0.08

0.02

0.10

0.01

Fair value related adjustments (5)

0.05

0.09

Legal-related costs (6)

0.01

(0.01)

0.05

VAT settlement (7)

0.09

Net loss on divestitures (8)

1.69

Covid-19 related costs (9)

0.06

Income tax effect of non-GAAP adjustments (10)

(0.08)

(0.04)

(0.11)

(0.23)

(0.49)

Income tax effect of valuation allowance (11)

(0.11)

0.08

0.17

0.29

0.52

Non-GAAP net income

$

0.19

$

0.93

$

0.04

$

0.56

$

3.98

Weighted average number of diluted shares (in millions) on a non-GAAP basis

44.9

45.7

45.0

45.1

45.7

 

ULTRA CLEAN HOLDINGS, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP EFFECTIVE INCOME TAX RATE

Three Months Ended

Twelve Months Ended

December 29,

December 30,

September 29,

December 29,

December 30,

2023

2022

2023

2023

2022

(in millions, except percentages)

Provision for income taxes on a GAAP basis

$

(6.2)

$

8.5

$

5.3

10.9

37.9

Income tax effect of non-GAAP adjustments (10)

3.4

1.8

5.0

10.2

22.2

Income tax effect of valuation allowance (11)

4.9

(3.5)

(8.2)

(12.8)

(23.9)

Non-GAAP provision for income taxes

$

2.1

$

6.8

$

2.2

$

8.3

$

36.3

Income (loss) before income taxes on a GAAP basis

$

(7.7)

$

36.9

$

(7.5)

(11.3)

88.3

Amortization of intangible assets (1)

7.2

7.0

5.5

24.1

30.1

Stock-based compensation expense (2)

3.6

4.6

3.9

12.5

19.3

Restructuring charges (3)

3.4

1.5

3.2

9.2

3.3

Acquisition related costs (4)

3.4

0.7

4.3

0.6

Fair value related adjustments (5)

2.5

5.4

Legal-related costs (6)

0.5

(0.4)

2.2

VAT settlement (7)

4.0

Net loss on divestitures (8)

77.4

Covid-19 related costs (9)

2.9

Non-GAAP income before income taxes

$

12.9

$

50.0

$

5.8

$

43.8

$

228.1

Effective income tax rate on a GAAP basis

80.5

%

23.0

%

-70.7

%

-96.5

%

42.9

%

Non-GAAP effective income tax rate

16.4

%

13.7

%

37.3

%

18.9

%

15.9

%

1    Amortization of intangible assets related to the Company’s business acquisitions

2    Represents compensation expense for stock granted to employees and directors

3    Represents severance, retention and costs related to facility closures

4    Represents acquisition activity costs

5    Fair value adjustments related to contingent consideration, HIS’ sold inventories, intercompany loan related to an acquisition, net of $1.3 million loss attributable to noncontrolling interest

6    Represents estimated costs related to legal proceedings

7    Represents impact of value added tax ruling

8    Represents the net loss on the divestiture of certain non-core subsidiary entities

9    Covid-19 related costs incurred during the period

10  Tax effect of items (1) through (9) above based on the non-GAAP tax rate

11  The Company’s GAAP tax expense is generally higher than the Company’s non-GAAP tax expense, primarily due to losses in the U.S. with full federal and state valuation allowances. The Company’s non-GAAP tax rate and resulting non-GAAP tax expense considers the tax implications as if there was no federal or state valuation allowance position in effect

 

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SOURCE Ultra Clean Holdings, Inc.

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BTQ Technologies’ QSSN Selected as Core Security Infrastructure for South Korea’s First Bank-Led KRW Stablecoin Proof-of-Concept

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BTQ provides strategic advisory support and QSSN as core PQC security infrastructure for the iM Bank initiative on the Kaia mainnet, advancing post-quantum migration across global financial infrastructure

BTQ has been selected as the core post-quantum cryptography security technology provider for South Korea’s first bank-led KRW stablecoin proof-of-concept, delivering its Quantum Secure Stablecoin Settlement Network (“QSSN”) for the initiative.
 BTQ is providing strategic advisory support and helping coordinate implementation across the partnership with iM Bank and Finger, supporting the integration of post-quantum protections into regulated digital money infrastructure.
 Built on the Kaia mainnet, the proof-of-concept is connected to the blockchain ecosystems originally developed by Kakao and LINE, linking the initiative to two of the largest messaging and digital platform ecosystems in Korea and Japan.

VANCOUVER, BC, May 6, 2026 /PRNewswire/ – BTQ Technologies Corp. (“BTQ” or the “Company”) (Nasdaq: BTQ) (CBOE CA: BTQ), a global quantum technology company focused on securing mission-critical networks, today announced that it it has been selected as the core PQC security technology provider through its Quantum Secure Stablecoin Settlement Network (“QSSN”) in a proof-of-concept with its Korean strategic partner, Finger Inc. (“Finger”), and iM Bank, a leading Korean commercial bank, for South Korea’s first bank-led Korean won stablecoin infrastructure incorporating post-quantum cryptography (“PQC”).

The proof-of-concept represents more than a technical pilot. It marks an important step in bringing next-generation quantum security into banking infrastructure within Korea’s regulated financial system. In addition to providing QSSN as the core PQC security framework, BTQ is contributing consulting and strategic coordination across the three-way partnership, helping align the project’s security architecture, implementation approach, and long-term post-quantum migration objectives.

“Post-quantum migration requires more than a cryptographic upgrade. It requires coordination across infrastructure, implementation, and institutional stakeholders,” said Olivier Roussy Newton, Chief Executive Officer of BTQ Technologies. “In this initiative, BTQ is providing both strategic advisory support and QSSN as the post-quantum security architecture, while helping lead coordination across the three-way partnership. We believe this proof-of-concept demonstrates how financial institutions can begin integrating quantum-resilient protections into digital money systems in a practical and operationally viable way.”

South Korea’s First Bank-Led PQC Stablecoin Infrastructure Initiative

BTQ is working alongside iM Bank and Finger on a three-way initiative to validate the issuance and distribution infrastructure for a Korean won stablecoin. In addition to supplying QSSN as the PQC security layer, BTQ is providing consulting support and helping to guide coordination across the partnership as the parties evaluate how to integrate post-quantum protections into bank-led digital asset infrastructure.

The proof-of-concept will validate several key components, including real-time reconciliation between bank reserves and blockchain-issued supply, a global-standard smart contract architecture, connectivity to global infrastructure for overseas distribution, and the integration of a PQC-based dual-signature security structure. By applying BTQ’s PQC signature architecture alongside the existing ECDSA cryptographic framework, the system is designed to preserve operational continuity for financial institutions while proactively addressing future quantum computing threats.

Built on Kaia Mainnet

A notable feature of the proof-of-concept is that it will be implemented on the Kaia mainnet, one of Korea’s leading Layer 1 blockchain networks. Kaia was created through the merger of Klaytn, the blockchain originally developed by Kakao, and Finschia, the blockchain associated with LINE. Kakao and LINE sit at the center of two of the largest messaging and digital platform ecosystems in Korea and Japan, respectively, making Kaia a significant piece of regional digital infrastructure.

Klaytn previously participated in the Bank of Korea’s CBDC pilot ecosystem, and the Bank of Korea has continued to advance CBDC testing through initiatives such as Project Hangang.

By combining BTQ’s PQC technology with blockchain infrastructure tied to the Kakao and LINE ecosystems, the proof-of-concept is intended to establish a model that aligns institutional-grade security, blockchain scalability, and evolving regulatory requirements for digital money infrastructure.

QSSN as the Security Layer

The PQC security foundation for the initiative is BTQ’s Quantum Secure Stablecoin Settlement Network, or QSSN, a quantum-secure network architecture designed for stablecoin, tokenized deposit, payment, and digital asset infrastructure. QSSN is designed to protect critical issuer functions, including stablecoin issuance, burning, transfer authority, upgrade control, and administrative permissions, by integrating PQC-based signatures while maintaining existing user experience and operational workflows.

BTQ has previously announced that QSSN was highlighted in the U.S. Post-Quantum Financial Infrastructure Framework (“PQFIF”) as a model architecture for post-quantum digital money infrastructure. The Company has also positioned QSSN as a standards-oriented initiative advanced through QuINSA and aligned with emerging post-quantum financial infrastructure requirements.

Addressing the Harvest-Now, Decrypt-Later Risk

The timing of the proof-of-concept reflects the growing urgency surrounding the “Harvest-Now, Decrypt-Later” risk, in which attackers may collect encrypted financial data today and decrypt it later once sufficiently advanced quantum capabilities emerge. Global institutions are already accelerating post-quantum migration. The U.S. National Institute of Standards and Technology (“NIST”) has finalized its first set of post-quantum cryptography standards, including ML-DSA, ML-KEM, and SLH-DSA, while major technology companies and financial institutions continue to define their own post-quantum transition timelines.

BTQ’s QSSN addresses this challenge through a dual-signature design that allows existing ECDSA-based infrastructure to operate in parallel with NIST-aligned PQC signatures such as ML-DSA. This approach enables banks and payment infrastructure providers to begin a phased transition toward quantum-safe security without disrupting existing systems.

Expanding BTQ’s Korean Ecosystem

BTQ continues to expand its Korean ecosystem across digital assets, payments, banking infrastructure, and hardware-based security. In October 2025, BTQ announced that Finger had joined Danal as an early participant in BTQ’s QSSN pilot program, with the initiative expected to progress from proof-of-concept toward commercialization under QuINSA-aligned guidelines and broader industry frameworks such as PQFIF.

The commencement of the iM Bank proof-of-concept represents an important commercial signal for BTQ, indicating that demand for post-quantum migration among Korean financial institutions is beginning to move from policy discussion toward infrastructure-level implementation. As Korea advances both quantum technology policy and stablecoin-related regulatory discussions, BTQ believes QSSN is well positioned at the intersection of regulated finance, digital asset infrastructure, and post-quantum security.

About iM Bank
iM Bank is a South Korean commercial bank and a subsidiary of DGB Financial Group. Headquartered in Daegu, iM Bank presents itself as a financial companion for customers and traces its roots to Daegu Bank, which was established in 1967 as Korea’s first regional bank. For more information, please visit https://www.imbank.co.kr/

About Finger Inc. Group
Finger supplies and develops financial IT solutions to provide optimized money management strategies for employees and corporate customers. Providing “Smartphone Financial Services”, “Corporate Cash Management Services” for businesses, “Private Wealth Management Services” for private consumers.

Since the year 2000, Finger has accumulated a number of awards and patents regarding its businesses. Based on its Mobile Enterprise Application Platform(MEAP) Orchestra and its funds management system using screen-scrapping technologies, Finger was the first company in Korea to deliver a smartphone banking banking-service. For more information, please visit http://www.finger.co.kr/

About BTQ
BTQ Technologies Corp. (Nasdaq: BTQ | Cboe CA: BTQ) is a quantum technology company focused on accelerating the transition from classical networks to the quantum internet. Backed by a broad patent portfolio and deep technical expertise, BTQ is advancing a full-stack, neutral-atom quantum computing platform spanning hardware, middleware, and post-quantum security solutions for finance, telecommunications, logistics, life sciences, and defense.

Connect with BTQ: Website | LinkedIn | X/Twitter

ON BEHALF OF THE BOARD OF DIRECTORS
Olivier Roussy Newton
CEO, Chairman
Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Information

Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as “anticipate”, “intend”, “expect”, “plan” or “may” and the variations of these words are intended to identify forward-looking statements and information.

The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.

Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company’s research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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SOURCE BTQ Technologies Corp.

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Zimmer Biomet to Present at the BofA Securities 2026 Health Care Conference

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WARSAW, Ind., May 6, 2026 /PRNewswire/ — Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH), a global medical technology leader, today announced that members of the Zimmer Biomet management team will participate in the Bank of America Securities Health Care Conference on Wednesday, May 13, 2026, with a fireside chat at 8:40 a.m. PT (11:40 a.m. ET).

A live audio webcast can be accessed via Zimmer Biomet’s Investor Relations website at https://investor.zimmerbiomet.com. It will be available for replay following the fireside chat.

About Zimmer Biomet 
Zimmer Biomet is a global medical technology leader with a comprehensive portfolio designed to maximize mobility and improve health. We seamlessly transform the patient experience through our innovative products and suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence.

With 90+ years of trusted leadership and proven expertise, Zimmer Biomet is positioned to deliver the highest quality solutions to patients and providers. Our legacy continues to come to life today through our progressive culture of evolution and innovation. 

For more information about our product portfolio, our operations in 25+ countries and sales in 100+ countries or about joining our team, visit www.zimmerbiomet.com or follow on LinkedIn at www.linkedin.com/company/zimmerbiomet or X at www.x.com/zimmerbiomet.

Contacts:

 

Media

Investors

Troy Kirkpatrick

David DeMartino

614-284-1926

646-531-6115

troy.kirkpatrick@zimmerbiomet.com

david.demartino@zimmerbiomet.com

Kirsten Fallon

Zach Weiner

781-779-5561

908-591-6955

kirsten.fallon@zimmerbiomet.com

zach.weiner@zimmerbiomet.com

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SOURCE Zimmer Biomet Holdings, Inc.

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NextLadder Ventures Announces Co-Founder Leadership Team, Investment Focus Areas For Over $1 Billion Initiative Empowering Americans with Personalized, Tech-Enabled Support Tools

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New senior hires from Google and The Collaborative Fund to lead product strategy and venture investing

Fund unveils first investment focus areas to catalyze new ‘Navigation Technology’ market, equipping Americans with cutting-edge tools to achieve economic security, opportunity and empowerment

ST. LOUIS, May 6, 2026 /PRNewswire/ — NextLadder Ventures, a new fund backed by more than $1 billion in capital, today announced its priority investment areas for building a new market for “Navigation Technology” (NavTech) — tools that provide Americans with personalized solutions to navigate life’s challenges and achieve greater economic mobility — and announced its co-founding team, including two new senior hires.

The fund’s active focus areas are based on extensive research identifying the key experiences and high-stakes decision points that have an outsized impact on American families’ economic mobility. Launched investment areas include financial health, career navigation, and benefits and social services access, with further exploration underway around housing, legal aid, justice and re-entry, and mental and physical health. 

The organization is also today welcoming two senior leaders: Lauren Loktev is joining NextLadder as Managing Director of Investments and Brigitte Hoyer Gosselink as Managing Director of Product. Loktev was most recently a partner at the Collaborative Fund, where she backed several breakout companies in early child development, education, and sustainability. Gosselink comes to NextLadder from Google, where she led the company’s AI and social impact portfolio. They join a growing team which has deep expertise at the intersection of economic mobility, technology, public policy, and philanthropy.

NextLadder’s Focus Areas for Investment

Today, the fund is kicking off a plan to deploy $1 billion over the next seven years to accelerate the design, development, and deployment of accessible NavTech tools that aim to help families more successfully navigate the major life experiences that determine whether they get ahead or fall behind. As NextLadder’s inaugural frontier AI lab partner, Anthropic is supporting the build-out of the organization’s AI-native capabilities and is offering technical assistance to NextLadder’s portfolio organizations. 

As an increasing proportion of Americans across income levels find themselves overextended and overwhelmed, NavTech tools are designed to help individuals and families understand their options, connect to information and resources, and take action to recover from a setback or take advantage of an opportunity and reclaim their economic futures.

“Life is getting harder, and too many Americans are stuck facing some of the most complex and consequential moments of their lives without much support,” said Ryan Rippel, CEO of NextLadder Ventures. “Every day, millions in this country face fork-in-the-road decisions that have major implications on whether they climb up the economic ladder or fall farther behind. AI has understandably intensified many Americans’ anxieties about their jobs and their security in the economy. But these technologies are now also making it possible to deliver highly personalized, affordable tools to meet the needs of tens of millions of Americans in a way that has never been practically achievable or financially viable before. With NavTech tools, built for the reality of families’ everyday experiences, we can empower Americans to overcome setbacks, navigate life’s toughest financial decisions, and build more secure futures.”

NavTech tools, built with the needs of individuals, families, and trusted community partners at the center of their design, have the potential to ease burdens most acutely faced by 90 million Americans who live in households that have difficulty in paying for usual home expenses, and turbocharge the capacity of the 1.6 million community workers in non-profit or local, state, and federal government roles who serve them. This growing category of digital technologies includes tools that help families access opportunities such as personalized financial advice and legal aid, get connected with available resources and programs, and manage unexpected hurdles like losing a job or facing an eviction – while freeing social workers and service providers to spend more time on people and less time on red tape and paperwork.

The fund’s active investment areas include:

Financial Health: Developing highly personalized, AI-powered financial health tools that can provide tailored, sustained counsel to help users build savings and protect and recover from financial shocks;
Career Navigation: Building tools to support career navigation, manage and support career transitions, and help workers, case managers, and employers identify pathways to living wage work — all designed to help people successfully find the right jobs for them.
Benefits & Social Services Access: Helping eligible Americans seamlessly identify and enroll in all the benefits and social services available to them, particularly those that support career navigation and transitions, help them navigate critical life moments, and achieve stability toward economic opportunity.

NextLadder is exploring additional focus areas, including housing, legal aid, justice and re-entry, caregiving, and mental and physical health. More on the organization’s vision of these focus areas is available HERE.

In addition to backing direct NavTech solutions, NextLadder is investing in the developers, partners, and standards required to build a durable, self-sustaining market. Across all focus areas, the fund is prioritizing efforts to ensure NavTech tools are reliable, protect users’ privacy, and are trusted by the families who depend on them.

NextLadder’s Co-Founder Leadership Team

NextLadder’s five co-founders will be CEO Ryan Rippel, Chief Strategy and Operations Officer Rhett Dornbach-Bender, Chief of Staff Callie Schwartz, and the two new senior hires: Managing Director of Investments Lauren Loktev and Managing Director of Product Brigitte Hoyer Gosselink, rounding out the fund’s expertise in investing, technology, and impact.

“We’re thrilled to welcome Lauren and Brigitte to the NextLadder team,” said Rippel. “Brigitte has spent her career proving that when applied purposefully, AI and technology can deliver meaningful benefits for communities, and she’ll set the bar for what NavTech tools can deliver for American families today and in the years to come. And with her deep experience backing mission-driven founders, Lauren is the perfect leader to build our venture practice from the ground up and accelerate the growth of the NavTech field. With this team in place, we’re positioned to make NavTech tools easier to build, fund, and access so they reach the people who need them most.”

Loktev brings 15 years of venture capital experience investing at the intersection of for-profit and for-good. Most recently at Collaborative Fund, she backed several companies to significant scale and launched Collab+Sesame, a first-of-its-kind thematic seed fund in partnership with Sesame Workshop focused on early childhood education. At NextLadder, she will build and lead the fund’s venture practice, sourcing and scaling investments in the founders building the next generation of NavTech tools.

“We have a once in a generation opportunity to help steer AI solutions toward those who need them most,” said Loktev. “Many amazing, accomplished founders see this too, and they are on a mission to build scalable, transformative businesses in the critical verticals that help people navigate life-changing moments. I couldn’t be more excited to join NextLadder and to support the most inspiring leaders building this market from the ground up. Thanks to our unique, long-term mandate, we can be creative and flexible in investing across stage and check size to partner with the entrepreneurs and leaders we believe will change the world.”

Prior to her role at NextLadder, Gosselink spent over a decade at Google in several roles including Director of AI and Social Impact, directing more than $500 million in funding for organizations applying AI to address challenges including crisis response, education, and economic opportunity. At NextLadder, she will lead AI and product strategy across the fund’s portfolio, backing solutions and setting market-wide standards for how NavTech tools are designed, evaluated, and improved over time.

“If we collectively harness the AI transformation strategically and purposefully, we can transform the way Americans are empowered to access greater economic mobility,” said Gosselink. “We believe that people-centered products, combined with shifts in the market and the services available to families, can fundamentally reshape how millions of Americans navigate critical moments and achieve prosperity on their own terms.”

To request interviews from the NextLadder Ventures leadership team, contact media@nextladder.com.

About NextLadder Ventures

NextLadder Ventures is a time-bound venture with one goal: empower millions of Americans to reach their potential by 2040. Backed by over $1 billion in capital, the organization invests in breakthrough technologies that remove barriers to economic success and put people in control of their futures. NextLadder Ventures is trailblazing a new market for tech-enabled Navigation Technology tools that help people access the resources they need to navigate pivotal moments — offering flexible, risk-tolerant capital to entrepreneurs building these transformative tools today, while creating a pipeline of tech, talent, and capital for the long run.

View original content:https://www.prnewswire.com/news-releases/nextladder-ventures-announces-co-founder-leadership-team-investment-focus-areas-for-over-1-billion-initiative-empowering-americans-with-personalized-tech-enabled-support-tools-302764095.html

SOURCE NextLadder Ventures

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