Technology
U.S. MANUFACTURING PICKED UP IN JANUARY DRIVEN BY GROWING DEMAND: GEP GLOBAL SUPPLY CHAIN VOLATILITY INDEX
Published
2 years agoon
By
The world’s supply chains are operating at full capacity, with the notable exception of Europe, which remains in a protracted industrial recession.Asia’s manufacturing growth was reported by major exporters, led by South Korea, China, and India.Despite the possibility of tariffs and significant uncertainty surrounding their implementation, global manufacturers are not stockpiling inventories.
CLARK, N.J., Feb. 12, 2025 /PRNewswire/ — The GEP Global Supply Chain Volatility Index — a leading indicator tracking demand conditions, shortages, transportation costs, inventories, and backlogs based on a monthly survey of 27,000 businesses — posted -0.21 at the start of the year. This indicates that global supply chains are effectively at full capacity, signaled when the index hits 0.
“January’s rise in manufacturers’ procurement across APAC and the U.S. signals steady growth ahead in Q1,” said John Piatek, GEP’s vice president of consulting. “Globally, companies are largely taking a wait-and-see approach to tariffs rather than absorbing the immediate cost of increasing buffer inventories. However, many Western firms are accelerating China-plus-one investments to diversify and near-shore manufacturing, assembly, and distribution. European manufacturers are especially vulnerable, as the sector has been contracting for nearly two years with no turnaround in sight. In the U.S., where manufacturing represents just 12% of GDP, the bigger concern for business is the potential revenue losses in China because of trade tensions.”
A key finding in January was the marked increase in procurement activity across North America. This increase was entirely driven by U.S. manufacturers, as purchasing managers at Mexican and Canadian factories sanctioned procurement cutbacks, indicating a darkened near-term outlook there.
In Asia, many major producers in the region bolstered their demand for inputs to meet growing production needs, led by China and India. South Korea, in particular, reported a marked pickup in January.
By contrast, Europe’s industrial economy continues to struggle, with our data indicating still-significant levels of spare capacity across the continent’s supply chains. Factories in Germany, France, Italy, and the U.K. held back on material purchases in January, implying that Europe’s manufacturing recession is set to persist a while longer.
The Global Supply Chain Volatility Index data was captured just prior to the U.S. administration’s announcement of tariffs on China, as well as the initial announcement (and subsequent pause) of tariffs on Mexico and Canada.
Interpreting the data:
Index > 0, supply chain capacity is being stretched. The further above 0, the more stretched supply chains are.
Index < 0, supply chain capacity is being underutilized. The further below 0, the more underutilized supply chains are.
JANUARY 2025 KEY FINDINGS
DEMAND: After some pullback in the second half of 2024, global manufacturers’ purchasing of raw materials is slowly recovering. In fact, global factory procurement in Asia is in line with its average, while in North America (driven by the U.S.), input purchasing is trending upward. This contrasts with the situation in Europe, which remains depressed as the region’s industrial sector struggles to break out from its prolonged downturn.
INVENTORIES: Global manufacturers’ desire to safety stockpile remains contained. Reports from factories surveyed showing an increase in inventory levels due to concerns about price or supply were low in January.
MATERIAL SHORTAGES: Reports of shortages for the globe’s most critical items, such as commodities, electronic components, chemicals and food products, were at their lowest in five years during January. This suggests that suppliers remain well stocked, indicating there are minimal frictions for companies obtaining necessary materials.
LABOR SHORTAGES: Global factory employment levels have been shrinking for several months1 and it appears that the growing labor shortage is now preventing global suppliers from completing orders as quickly. There was a rise in reports of factory backlogs rising due to inadequate labor supply in January.
TRANSPORTATION: Global transportation costs are increasing. In January, they rose to their highest level in six months.
REGIONAL SUPPLY CHAIN VOLATILITY
NORTH AMERICA: Index up to -0.22, from -0.53, a six-month high, suggesting a pick-up in procurement across the region at the start of the year. EUROPE: Index down to -0.61, from -0.49, suggesting that activity levels across Europe’s supply chains remain weak.U.K.: Index fell to -0.63, from -0.41 in December, a 13-month low and signaling a weaker outlook for 2025 for U.K. manufacturing. ASIA: Index rises to 0.03, from -0.09, indicating that suppliers to the region are generally operating at full capacity.
For more information, visit www.gep.com/volatility.
Note: Full historical data dating back to January 2005 is available for subscription. Please contact economics@spglobal.com.
The next release of the GEP Global Supply Chain Volatility Index will be 8 a.m. ET, Mar. 12, 2025.
About the GEP Global Supply Chain Volatility Index
The GEP Global Supply Chain Volatility Index is produced by S&P Global and GEP. It is derived from S&P Global’s PMI® surveys, sent to companies in over 40 countries, totaling around 27,000 companies. The headline figure is a weighted sum of six sub-indices derived from PMI data, PMI Comments Trackers and PMI Commodity Price & Supply Indicators compiled by S&P Global.
A value above 0 indicates that supply chain capacity is being stretched and supply chain volatility is increasing. The further above 0, the greater the extent to which capacity is being stretched.A value below 0 indicates that supply chain capacity is being underutilized, reducing supply chain volatility. The further below 0, the greater the extent to which capacity is being underutilized.
A Supply Chain Volatility Index is also published at a regional level for Europe, Asia, North America and the U.K. For more information about the methodology, click here.
About GEP
GEP® delivers AI-powered procurement and supply chain solutions that help global enterprises become more agile and resilient, operate more efficiently and effectively, gain competitive advantage, boost profitability and increase shareholder value. Fresh thinking, innovative products, unrivaled domain expertise, smart, passionate people — this is how GEP SOFTWARE™, GEP STRATEGY™ and GEP MANAGED SERVICES™ together deliver procurement and supply chain solutions of unprecedented scale, power and effectiveness. Our customers are the world’s best companies, including more than 1,000 Fortune 500 and Global 2000 industry leaders who rely on GEP to meet ambitious strategic, financial and operational goals. A leader in multiple Gartner Magic Quadrants, GEP’s cloud-native software and digital business platforms consistently win awards and recognition from industry analysts, research firms and media outlets, including Gartner, Forrester, IDC, ISG, and Spend Matters. GEP is also regularly ranked a top procurement and supply chain consulting and strategy firm, and a leading managed services provider by ALM, Everest Group, NelsonHall, IDC, ISG and HFS, among others. Headquartered in Clark, New Jersey, GEP has offices and operations centers across Europe, Asia, Africa and the Americas. To learn more, visit www.gep.com.
About S&P Global
S&P Global (NYSE: SPGI) S&P Global provides essential intelligence. We enable governments, businesses and individuals with the right data, expertise and connected technology so that they can make decisions with conviction. From helping our customers assess new investments to guiding them through ESG and energy transition across supply chains, we unlock new opportunities, solve challenges and accelerate progress for the world. We are widely sought after by many of the world’s leading organizations to provide credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help the world’s leading organizations plan for tomorrow, today.
Disclaimer
The intellectual property rights to the data provided herein are owned by or licensed to S&P Global and/or its affiliates. Any unauthorised use, including but not limited to copying, distributing, transmitting or otherwise of any data appearing is not permitted without S&P Global’s prior consent. S&P Global shall not have any liability, duty or obligation for or relating to the content or information (“Data”) contained herein, any errors, inaccuracies, omissions or delays in the Data, or for any actions taken in reliance thereon. In no event shall S&P Global be liable for any special, incidental, or consequential damages, arising out of the use of the Data. Purchasing Managers’ Index™ and PMI® are either trade marks or registered trade marks of S&P Global Inc or licensed to S&P Global Inc and/or its affiliates.
This Content was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global. Reproduction of any information, data or material, including ratings (“Content”) in any form is prohibited except with the prior written permission of the relevant party. Such party, its affiliates and suppliers (“Content Providers”) do not guarantee the accuracy, adequacy, completeness, timeliness or availability of any Content and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such Content. In no event shall Content Providers be liable for any damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with any use of the Content.
Media Contacts
Derek Creevey
Director, Public Relations
GEP
Phone: +1 646-276-4579
Email: derek.creevey@gep.com
Joe Hayes
Principal Economist
S&P Global Market Intelligence
Phone: +44-1344-328-099
Email: joe.hayes@spglobal.com
S&P Global Market Intelligence
Corporate Communications
Email: Press.mi@spglobal.com
1 Source: The S&P Global PMI survey, which encompasses the GEP Global Supply Chain Volatility Index
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Technology
Sandbox VR Expands in Miami Area with Second Location at The Falls, Opening October 30
Published
15 minutes agoon
October 27, 2026By
Sandbox VR brings the ‘best virtual reality experience on the planet’ to The Falls
MIAMI, Oct. 27, 2026 /PRNewswire/ — Sandbox VR, the world’s premier venue for virtual reality experiences, will open its second location in the Greater Miami area on October 30 at The Falls. The more than 4,100-square-foot venue at 8888 SW 136th Street, Unit 407A, will be operated by Immersa Entertainment LLC and franchise operators Carolina Brost and William Santiago. Guests who book online by October 29 can save 25% on tickets at https://sandboxvr.com/miami/the-falls.
The Falls is a 55-acre open-air shopping, dining and entertainment destination in South Florida. Sandbox VR’s new venue includes four private holodecks where groups of up to six guests suit up with headsets, haptic vests, and motion trackers for full-body immersion. The technology allows players to see and physically interact with one another, creating the feeling of living inside the action together. After each session, guests receive personalized highlight videos to relive and share their adventure.
“As local business owners, we believe entertainment should be more than just an activity – it should be an opportunity to bring people together, create lasting memories, and strengthen our community. Opening our second entertainment venue with a franchise of Sandbox VR is an exciting next chapter in our commitment to delivering exceptional experiences. Our priority has always been to provide a safe, fun, and welcoming environment where families, friends, and colleagues can enjoy innovative, high-quality entertainment. We are proud to bring this world-class immersive experience to The Falls and look forward to continuing to serve the South Florida community that has supported us throughout our journey,” said Carolina Brost and William Santiago, Owners, Sandbox VR The Falls.
Sandbox VR operates both corporate-owned locations and a robust franchise program, and recently hit $300M in lifetime sales while scaling to 100 global locations across five continents and 13 countries since launching in 2016. The company is redefining group entertainment with immersive experiences that transform any outing into lasting memories. Built by a team of veteran developers from EA, Sony, and Ubisoft, Sandbox VR delivers full-body immersion through exclusive content and original experiences, including the recently launched Stranger Things: Catalyst, in collaboration with Netflix, and the new Age of Dinosaurs experience in partnership with the Natural History Museum of London and leading dinosaur experts.
Sandbox VR provides an unparalleled entertainment experience with over 250,000 five-star reviews from guests worldwide. With over 6 million lifetime tickets sold across five continents, the company has established itself as the global leader in location-based virtual reality. Sandbox VR is backed by Andreessen Horowitz, Alibaba Entrepreneurs Fund, Gobi Partners, Craft, and Stanford University, along with individuals such as Kevin Durant, Justin Timberlake, and Katy Perry.
To learn more or book an experience at Sandbox VR The Falls, visit https://sandboxvr.com/miami/the-falls.
ABOUT SANDBOX VR
Sandbox VR is the world’s premier destination for location-based virtual reality experiences. Operating across 100 venues around the globe through a franchise and corporate-owned model, Sandbox VR attracts over 150,000 guests each month. Sandbox VR gives guests the opportunity to step out of everyday reality into unforgettable adventures through group-play immersive experiences. Using a proprietary full-body VR platform, the company develops original and licensed content, including exclusive experiences like Stranger Things: Catalyst and Squid Game Virtuals in collaboration with Netflix, and the Sandbox VR original Deadwood series. With over 6 million tickets sold worldwide, Sandbox VR has become a leader in immersive entertainment, combining premium technology with emotionally engaging storytelling. Recognized as one of Fast Company’s Most Innovative Companies and a two-time honoree on the Inc. 5000 list of America’s fastest-growing private companies, Sandbox VR is headquartered in San Francisco with offices in Hong Kong and Vancouver. The company has raised over $70 million from investors, including Andreessen Horowitz, Alibaba Entrepreneurs Fund, Gobi Partners and Craft, with individual backers including Justin Timberlake, Kevin Durant, and Will Smith.
Media Contact:
Carolina Brost, Owner
Immersa Entertainment LLC
dba Sandbox VR The Falls
(786) 530-2020
sandboxvr.thefalls@gmail.com
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SOURCE Sandbox VR
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10x Genomics to Participate in the 2026 Jefferies Global Healthcare Conference
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October 27, 2026By
PLEASANTON, Calif., Oct. 27, 2026 /PRNewswire/ — 10x Genomics, Inc. (Nasdaq: TXG), the life science technology leader focused on accelerating science and advancing human health, announced today that members of its management team will participate in a fireside chat at the 2026 Jefferies Global Healthcare Conference in London on Tuesday, November 17, at 4:30 p.m. Greenwich Mean Time.
Interested parties may access a live webcast of the fireside chat on the “Investors” section of the company’s website at: https://investors.10xgenomics.com/. The webcast will be archived and available for replay for at least 30 days after the event.
About 10x Genomics
10x Genomics is a life science technology company building products to accelerate the mastery of biology and advance human health. Our integrated research solutions include instruments, consumables and software for single cell and spatial biology, which help academic and translational researchers and biopharmaceutical companies understand biological systems at a resolution and scale that matches the complexity of biology. Our products are behind breakthroughs in oncology, immunology, neuroscience and more, fueling powerful discoveries that are transforming the world’s understanding of health and disease. To learn more, visit 10xgenomics.com or connect with us on LinkedIn, X, Facebook, Bluesky or YouTube.
Disclosure Information
10x Genomics uses filings with the Securities and Exchange Commission, our website (www.10xgenomics.com), press releases, public conference calls, public webcasts and our social media accounts as means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD.
Contacts
Investors: investors@10xgenomics.com
Media: media@10xgenomics.com
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SOURCE 10x Genomics, Inc.
Technology
Ultra Clean Reports Third Quarter 2026 Financial Results
Published
15 minutes agoon
October 27, 2026By
HAYWARD, Calif., Oct. 27, 2026 /PRNewswire/ — Ultra Clean Holdings, Inc. (Nasdaq: UCTT), today reported its financial results for the third quarter ended September 25, 2026.
Highlights for the Third Quarter 2026 were as follows:
Record revenue of $759 million, up 18% compared to Q2 2026 and up 49% compared to Q3 2025.GAAP gross margin of 16.9% and non-GAAP gross margin of 17.3%.GAAP EPS of $0.85 and non-GAAP EPS of $1.15.
“UCT delivered another strong quarter of growth and solid operational performance, as we responded with speed and agility to scale production and meet accelerating customer demand,” said James Xiao, CEO. “We are positioning UCT to capture more value from this next phase of AI-driven industry expansion by co-innovating with our customers, developing more advanced solutions, and executing with focus and discipline. Through UCT 3.0, we are building a more agile and efficient company that is well positioned to anticipate customer needs, accelerate innovation, and translate industry growth into lasting shareholder value.”
Third Quarter 2026 GAAP Financial Results
Total revenue was $759.0 million. Products contributed $681.9 million and Services added $77.1 million. Total gross margin was 16.9%, operating margin was 7.1%, and net income was $39.1 million or $0.85 per diluted share. This compares to total revenue of $644.9 million, gross margin of 16.1%, operating margin of 4.6%, and net income of $8.7 million or $0.19 per diluted share, in the prior quarter.
Third Quarter 2026 Non-GAAP Financial Results
On a non-GAAP basis, gross margin was 17.3%, operating margin was 9.0%, and net income was $53.2 million or $1.15 per diluted share. This compares to gross margin of 16.7%, operating margin of 7.0%, and net income of $32.3 million or $0.70 per diluted share, in the prior quarter.
Fourth Quarter 2026 Outlook
The Company expects revenue in the range of $800 million to $860 million. The Company expects GAAP diluted net income per share to be between $1.02 and $1.26, and non-GAAP diluted net income per share to be between $1.11 and $1.35.
Conference Call
The call will take place 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 33664#. 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 loss before amortization of intangible assets, stock-based compensation, restructuring charges, debt refinancing costs, legal-related costs, unrealized loss (gain) on foreign exchange, VAT settlement, 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 26, 2025, 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
Nine Months Ended
September 25, 2026
September 26, 2025
September 25, 2026
September 26, 2025
Revenues:
Products
$ 681.9
$ 445.0
$ 1,720.3
$ 1,356.9
Services
77.1
65.0
217.3
190.4
Total revenues
759.0
510.0
1,937.6
1,547.3
Cost of revenues:
Products
575.7
380.4
1,465.2
1,163.9
Services
54.9
47.4
155.9
137.8
Total cost of revenues
630.6
427.8
1,621.1
1,301.7
Gross profit
128.4
82.2
316.5
245.6
Operating expenses:
Research and development
8.8
7.8
26.1
23.2
Sales and marketing
15.9
15.1
47.8
45.5
General and administrative
50.0
48.7
148.1
144.1
Impairment of goodwill
—
—
—
151.1
Total operating expenses
74.7
71.6
222.0
363.9
Income (loss) from operations
53.7
10.6
94.5
(118.3)
Interest income
1.4
1.1
3.8
3.0
Interest expense
(1.5)
(9.9)
(9.8)
(29.9)
Other expense, net
(2.5)
(1.2)
(3.2)
(2.5)
Income (loss) before provision for income taxes
51.1
0.6
85.3
(147.7)
Provision for income taxes
10.3
8.7
47.5
23.3
Net income (loss)
40.8
(8.1)
37.8
(171.0)
Less: Net income attributable to noncontrolling interests
1.7
2.8
7.9
6.9
Net income (loss) attributable to UCT
$ 39.1
$ (10.9)
$ 29.9
$ (177.9)
Net income (loss) per share attributable to UCT common stockholders:
Basic
$ 0.86
$ (0.24)
$ 0.66
$ (3.93)
Diluted
$ 0.85
$ (0.24)
$ 0.65
$ (3.93)
Shares used in computing net income (loss) per share:
Basic
45.4
45.4
45.3
45.2
Diluted
46.2
45.4
46.2
45.2
ULTRA CLEAN HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions)
September 25,
2026
December 26,
2025
ASSETS
Current assets:
Cash and cash equivalents
$ 270,9
$ 311,8
Accounts receivable, net of allowance for credit losses
272,4
208,8
Inventories
723,3
390,9
Prepaid expenses and other current assets
67,6
48,2
Total current assets
1 334,2
959,7
Property, plant and equipment, net
344,4
324,6
Goodwill
114,2
114,2
Intangible assets, net
136,4
156,8
Deferred tax assets, net
4,1
3,5
Operating lease right-of-use assets
156,3
157,2
Other non-current assets
14,8
13,0
Total assets
$ 2 104,4
$ 1 729,0
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt
$ —
$ 9,9
Accounts payable
335,2
194,9
Accrued compensation and related benefits
63,3
51,1
Operating lease liabilities
22,3
20,2
Other current liabilities
57,8
24,6
Total current liabilities
478,6
300,7
Long-term debt
635,1
467,0
Deferred tax liabilities
13,7
13,8
Operating lease liabilities
152,7
156,6
Other liabilities
11,0
6,8
Total liabilities
1 291,1
944,9
Equity:
UCT stockholders’ equity:
Common stock
0,1
0,1
Additional paid-in capital
601,6
578,7
Common shares held in treasury
(88,7)
(48,4)
Retained earnings
219,1
189,2
Accumulated other comprehensive loss
(4,6)
(8,6)
Total UCT stockholders’ equity
727,5
711,0
Noncontrolling interests
85,8
73,1
Total equity
813,3
784,1
Total liabilities and equity
$ 2 104,4
$ 1 729,0
ULTRA CLEAN HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)
Nine Months Ended
September 25,
2026
September 26,
2025
(In millions)
Cash flows from operating activities:
Net income (loss)
$ 37.8
$ (171.0)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization
37.5
35.5
Amortization of intangible assets
20.4
21.2
Stock-based compensation
17.2
14.4
Amortization of debt issuance costs
2.5
2.1
Loss on extinguishment of debt
3.4
—
Loss on disposal of property, plant and equipment
1.2
0.7
Impairment of goodwill
—
151.1
Change in the fair value of financial instruments
—
(0.1)
Deferred income taxes
(0.6)
0.4
Changes in assets and liabilities:
Accounts receivable
(63.6)
41.6
Inventories
(332.4)
(1.2)
Prepaid expenses and other current assets
(16.0)
(6.3)
Other non-current assets
0.0
(1.0)
Accounts payable
131.1
(22.8)
Accrued compensation and related benefits
12.2
(0.6)
Income taxes payable
3.3
(12.1)
Operating lease right-of-use assets and operating lease liabilities
(0.9)
10.2
Other liabilities
30.2
(4.6)
Net cash provided by (used in) operating activities
(116.7)
57.5
Cash flows from investing activities:
Purchases of property, plant and equipment
(45.3)
(40.2)
Proceeds from sale of equipment
0.1
3.2
Net cash used in investing activities
(45.2)
(37.0)
Cash flows from financing activities:
Proceeds from the issuance of common stock under at-the-market offering, net of commissions and fees
34.0
—
At-the-market offering costs for the issuance of common stock
(0.1)
—
Proceeds from the issuance of convertible notes
600.0
—
Borrowings on revolving credit facility
50.0
—
Proceeds from bank borrowings
—
59.3
Extinguishment of bank borrowings
—
(59.3)
Proceeds from issuance of common stock
1.1
1.1
Payment of debt issuance costs
(17.4)
(0.6)
Repurchase of common stock
(40.0)
(3.4)
Payment for capped call transactions
(25.1)
—
Principal payments on bank borrowings
(481.5)
(18.2)
Employees’ taxes paid upon vesting of restricted stock units
(4.3)
(1.1)
Payments of dividends to a joint venture shareholder
(0.1)
(0.1)
Net cash provided by (used in) financing activities
116.6
(22.3)
Effect of exchange rate changes on cash and cash equivalents
4.4
2.0
Net increase (decrease) in cash and cash equivalents
(40.9)
0.2
Cash and cash equivalents at beginning of period
311.8
313.9
Cash and cash equivalents at end of period
$ 270.9
$ 314.1
ULTRA CLEAN HOLDINGS, INC.
REPORTABLE SEGMENTS
GAAP TO NON-GAAP RECONCILIATION
(Unaudited; dollars in millions)
GAAP
Non-GAAP
Three Months Ended
Three Months Ended
September 25, 2026
September 25, 2026
Products
Services
Consolidated
Products
Services
Consolidated
Revenues
$ 681.9
$ 77.1
$ 759.0
$ 681.9
$ 77.1
$ 759.0
Gross profit
$ 106.2
$ 22.2
$ 128.4
$ 108.3
$ 23.2
$ 131.5
Gross margin
15.6 %
28.8 %
16.9 %
15.9 %
30.1 %
17.3 %
Income from operations
$ 46.7
$ 7.0
$ 53.7
$ 58.1
$ 10.5
$ 68.6
Operating margin
6.8 %
9.1 %
7.1 %
8.5 %
13.6 %
9.0 %
Three Months Ended
September 25, 2026
Products
Services
Consolidated
Reconciliation of GAAP Gross profit to Non-GAAP Gross profit (in millions)
Reported gross profit on a GAAP basis
$ 106.2
$ 22.2
$ 128.4
Amortization of intangible assets (1)
1.3
1.0
2.3
Stock-based compensation expense (2)
0.6
—
0.6
Restructuring charges (3)
0.2
—
0.2
Non-GAAP gross profit
$ 108.3
$ 23.2
$ 131.5
Reconciliation of GAAP Gross margin to Non-GAAP Gross margin
Reported gross margin on a GAAP basis
15.6 %
28.8 %
16.9 %
Amortization of intangible assets (1)
0.2 %
1.3 %
0.3 %
Stock-based compensation expense (2)
0.1 %
— %
0.1 %
Restructuring charges (3)
0.0 %
— %
0.0 %
Non-GAAP gross margin
15.9 %
30.1 %
17.3 %
Reconciliation of GAAP Income from operations to Non-GAAP Income from operations (in millions)
Reported income from operations on a GAAP basis
$ 46.7
$ 7.0
$ 53.7
Amortization of intangible assets (1)
3.9
2.9
6.8
Stock-based compensation expense (2)
6.3
0.6
6.9
Restructuring charges (3)
0.6
0.0
0.6
Legal-related costs (4)
0.6
—
0.6
Non-GAAP income from operations
$ 58.1
$ 10.5
$ 68.6
Reconciliation of GAAP Operating margin to Non-GAAP Operating margin
Reported operating margin on a GAAP basis
6.8 %
9.1 %
7.1 %
Amortization of intangible assets (1)
0.6 %
3.8 %
0.8 %
Stock-based compensation expense (2)
0.9 %
0.7 %
0.9 %
Restructuring charges (3)
0.1 %
— %
0.1 %
Legal-related costs (4)
0.1 %
— %
0.1 %
Non-GAAP operating margin
8.5 %
13.6 %
9.0 %
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 costs associated with employee separation, severance, retention, and other expenses related to facility closures
4
Represents estimated costs related to certain legal proceedings and a cybersecurity incident
ULTRA CLEAN HOLDINGS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
Three Months Ended
September 25,
2026
September 26,
2025
June 26,
2026
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (in millions)
Reported net income (loss) attributable to UCT on a GAAP basis
$ 39.1
$ (10.9)
$ 8.7
Amortization of intangible assets (1)
6.8
6.9
6.8
Stock-based compensation expense (2)
6.9
4.6
8.1
Restructuring charges (3)
0.6
7.1
0.7
Debt refinancing costs expensed (4)
—
1.1
0.7
Legal-related costs (5)
0.6
0.2
—
Unrealized loss (gain) on foreign exchange (6)
2.6
(2.4)
(1.9)
VAT settlement (7)
—
(0.2)
—
Income tax effect of non-GAAP adjustments (8)
(3.5)
(4.0)
(2.9)
Income tax effect of valuation allowance (9)
0.1
8.6
12.1
Non-GAAP net income attributable to UCT
$ 53.2
$ 11.0
$ 32.3
Reconciliation of GAAP Income from operations to Non-GAAP Income from operations (in millions)
Reported income from operations on a GAAP basis
$ 53.7
$ 10.6
$ 29.5
Amortization of intangible assets (1)
6.8
6.9
6.8
Stock-based compensation expense (2)
6.9
4.6
8.1
Restructuring charges (3)
0.6
7.1
0.7
Legal-related costs (5)
0.6
0.2
—
VAT settlement (7)
—
(0.2)
—
Non-GAAP income from operations
$ 68.6
$ 29.2
$ 45.1
Reconciliation of GAAP Operating margin to Non-GAAP Operating margin
Reported operating margin on a GAAP basis
7.1 %
2.1 %
4.6 %
Amortization of intangible assets (1)
0.8 %
1.3 %
1.0 %
Stock-based compensation expense (2)
0.9 %
0.9 %
1.3 %
Restructuring charges (3)
0.1 %
1.4 %
0.1 %
Legal-related costs (5)
0.1 %
0.0 %
— %
VAT settlement (7)
— %
0.0 %
— %
Non-GAAP operating margin
9.0 %
5.7 %
7.0 %
Reconciliation of GAAP Gross profit to Non-GAAP Gross profit (in millions)
Reported gross profit on a GAAP basis
$ 128.4
$ 82.2
$ 103.7
Amortization of intangible assets (1)
2.3
2.3
2.3
Stock-based compensation expense (2)
0.6
0.5
1.5
Restructuring charges (3)
0.2
2.1
0.1
VAT settlement (7)
—
(0.2)
—
Non-GAAP gross profit
$ 131.5
$ 86.9
$ 107.6
Reconciliation of GAAP Gross margin to Non-GAAP Gross margin
Reported gross margin on a GAAP basis
16.9 %
16.1 %
16.1 %
Amortization of intangible assets (1)
0.3 %
0.4 %
0.4 %
Stock-based compensation expense (2)
0.1 %
0.1 %
0.2 %
Restructuring charges (3)
0.0 %
0.4 %
0.0 %
VAT settlement (7)
— %
0.0 %
— %
Non-GAAP gross margin
17.3 %
17.0 %
16.7 %
Reconciliation of GAAP Other income (expense), net to Non-GAAP Other income (expense), net (in millions)
Reported Other income (expense), net on a GAAP basis
$ (2.5)
$ (1.2)
$ 0.6
Debt refinancing costs expensed (4)
—
1.1
0.7
Unrealized loss (gain) on foreign exchange (6)
2.6
(2.4)
(1.9)
Non-GAAP Other income (expense), net
$ 0.1
$ (2.5)
$ (0.6)
Reconciliation of GAAP Income (Loss) Per Diluted Share to Non-GAAP Earnings Per Diluted Share
Reported net income (loss) on a GAAP basis
$ 0.85
$ (0.24)
$ 0.19
Amortization of intangible assets (1)
0.15
0.15
0.15
Stock-based compensation expense (2)
0.15
0.10
0.18
Restructuring charges (3)
0.01
0.16
0.01
Debt refinancing costs expensed (4)
—
0.02
0.01
Legal-related costs (5)
0.01
0.00
—
Unrealized loss (gain) on foreign exchange (6)
0.06
(0.05)
(0.04)
VAT settlement (7)
—
0.00
—
Income tax effect of non-GAAP adjustments (8)
(0.08)
(0.09)
(0.06)
Income tax effect of valuation allowance (9)
0.00
0.19
0.26
Impact of dilutive shares
0.00
0.00
0.00
Non-GAAP net earnings
$ 1.15
$ 0.24
$ 0.70
Weighted average number of diluted shares (in millions) on a non-GAAP basis (10)
46.2
45.6
46.0
ULTRA CLEAN HOLDINGS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP EFFECTIVE INCOME TAX RATE
Three Months Ended
September 25,
2026
September 26,
2025
June 26,
2026
Provision for income taxes on a GAAP basis
$ 10.3
$ 8.7
$ 18.1
Income tax effect of non-GAAP adjustments (8)
3.5
4.0
2.9
Income tax effect of valuation allowance (9)
(0.1)
(8.6)
(12.1)
Non-GAAP provision for income taxes
$ 13.7
$ 4.1
$ 8.9
Income before income taxes on a GAAP basis
$ 51.1
$ 0.6
$ 30.0
Amortization of intangible assets (1)
6.8
6.9
6.8
Stock-based compensation expense (2)
6.9
4.6
8.1
Restructuring charges (3)
0.6
7.1
0.7
Debt refinancing costs expensed (4)
—
1.1
0.7
Legal-related costs (5)
0.6
0.2
—
Unrealized loss (gain) on foreign exchange (6)
2.6
(2.4)
(1.9)
VAT settlement (7)
—
(0.2)
—
Non-GAAP income before income taxes
$ 68.6
$ 17.9
$ 44.4
Effective income tax rate on a GAAP basis
20.2 %
1450.0 %
60.3 %
Non-GAAP effective income tax rate
20.0 %
22.9 %
20.0 %
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 costs associated with employee separation, severance, retention, and other expenses related to facility closures
4 Represents certain third party transaction costs related to the amended credit agreement and the previously capitalized costs of extinguished debt
5 Represents estimated costs related to certain legal proceedings and a cybersecurity incident
6 Represents unrealized foreign exchange gains and losses arising from the remeasurement of monetary assets and liabilities
7 Represents impact of value added tax ruling
8 Tax effect of items (1) through (7) above based on the non-GAAP tax rate
9 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
10 Non-GAAP diluted weighted-average common shares are adjusted to reflect the dilutive impact of our convertible note based on the capped call cap price instead of the initial conversion price
View original content to download multimedia:https://www.prnewswire.com/news-releases/ultra-clean-reports-third-quarter-2026-financial-results-302921159.html
SOURCE Ultra Clean Holdings, Inc.
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