Ultra Clean Holdings Inc (NASDAQ:UCTT) Q4 2022 Results Conference Call February 22, 2023 4:45 PM ET

Company Participants

Rhonda Bennetto - SVP Investor Relations

Jim Scholhamer - CEO

Sheri Savage - CFO

Conference Call Participants

Quinn Bolton - Needham & Company

Krish Sankar - Cowen

Christian Schwab - Craig-Hallum Capital Group

Operator

Good day, and welcome to the Ultra Clean Fourth Quarter and Full Year 2022 Conference Call. [Operator Instructions] This event is being recorded.

I would now like to turn the conference over to Ronda Bennetto, Investor Relations. Please go ahead.

Rhonda Bennetto

Thank you, operator. Good afternoon, everyone, and thank you for joining us. With me today are Jim Scholhamer, Chief Executive Officer; and Sheri Savage, Chief Financial Officer. Jim will begin with some prepared remarks about the business, and Sheri will follow with the financial review, and then we'll open up the call for questions.

Today's call contains forward-looking statements that are subject to risks and uncertainties. For more information, please refer to the Risk Factors section in our SEC filings. All forward-looking statements are based on estimates, projections and assumptions as of today, and we assume no obligation to update them after this call. Discussion of our financial results will be presented on a non-GAAP basis. A reconciliation of GAAP to non-GAAP can be found in today's press release posted on our website.

And with that, I'd like to turn the call over to Jim. Jim?

Jim Scholhamer

Thank you, Rhonda, and good afternoon, everyone. Thank you for joining us for our fourth quarter and full year 2022 conference call and webcast. First, I'm going to highlight a few financial results that Sheri will expand on in her commentary. I'll follow this with an overview of what we are seeing in the semiconductor market in the near term and summarize our plans as we play a more critical, meaningful role in the value chain.

Solid execution from our global teams in 2022 resulted in a record year for UCT with revenue growing 13% year-over-year and operating income reaching a new high of $260 million. Looking back on this extraordinary three-year industry ramp, UCT's annual revenue grew almost 123% and earnings per share surged 243%. That's a compound annual growth rate of 31% for revenue and 51% for earnings per share compared to the industry CAGR of 22% in the same period.

Late in the fourth quarter, it became apparent that the industry was headed into a downturn as our customers quickly pushed out and canceled orders in rapid response to their customers doing the same.