ACM Research, Inc. (ACMR) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

August 4, 2023 8:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, and thank you for standing by. Welcome to the ACM Research Second Quarter 2023 Earnings Conference Call. As this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Yujia Zhai, Managing Director of The Blueshirt Group. Please go ahead.

Yujia Zhai

Thank you, operator. Good morning, everyone. Thank you for joining us on today's call to discuss second quarter 2023 results.

We released results before the U.S. market opened today. The release is available on our website as well as from newswire services. There's also a supplemental slide deck posted to the investor portion of our website that we will reference during our prepared remarks.

On the call with me today are our CEO, Dr. David Wang; our CFO, Mark McKechnie; and Lisa Feng, the CFO of our operating subsidiary, ACM Shanghai.

Before we continue, please turn to Slide 2. Let me remind you that remarks made during this call may include predictions, estimates and other information that might be considered forward looking. These forward-looking statements represent ACM's current judgment for the future. However, they are subject to risks and uncertainties that could cause actual results to differ materially. Those risks are described under the risk factors and elsewhere in ACM's filings with the SEC.

Please do not place undue reliance on these forward-looking statements, which reflect ACM's opinions only as of the date of this call. ACM is not obliged to update you on any revisions to these forward-looking statements.

Certain of the financial results that we provide on this call will be on a non-GAAP basis, which excludes stock-based compensation and unrealized gain or loss in trading securities. For our GAAP results and reconciliations between GAAP and non-GAAP amounts, you should refer to our earnings release, which is posted on the IR section of our website in Slide 12.

With that, let me now turn the call over to David Wang, who will begin with Slide 3. David?

David Wang

Thanks, Yujia. Hello, everyone, and welcome to ACM's second quarter 2023 earnings conference call.

Please turn to Slide 3. For second quarter, revenue was $144.6 million, up 39% from the same quarter last year. Shipments were $153 million, up 37% from the same quarter last year. Gross margin was 47.6%, and operating margin was 22.4%. We achieved record revenue and EPS, as our operating and industrial supply chain largely returned to a new normal following several years of COVID-related disruption. These results were driven by strong mature node [indiscernible] by our China customer, market share gain and penetration of a new product, a new customer. Let me touch on each of this, beginning with mature node investment in China.