Ichor Holdings, Ltd. (NASDAQ:ICHR) Q2 2023 Earnings Conference Call August 8, 2023 4:30 PM ET

Company Participants

Claire McAdams – Investor Relations

Jeff Andreson – Chief Executive Officer

Larry Sparks – Chief Financial Officer

Greg Swyt – Incoming Chief Financial Officer

Conference Call Participants

Krish Sankar – TD Cowen

Brian Chin – Stifel

Quinn Bolton – Needham & Company

Craig Ellis – B. Riley

Dave Duley – Steelhead Securities

Claire McAdams

Good afternoon and thank you for joining today's Second Quarter 2023 Conference Call. As you read our earnings press release and as you listen to this conference call, please recognize that both contain forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control and which could cause actual results to differ materially from such statements. These risks and uncertainties include those spelled out in our earnings press release, those described in our annual report on Form 10-K for fiscal 2022 and those described in subsequent filings with the SEC. You should consider all forward-looking statements in light of those and other risks and uncertainties.

Additionally, we will be providing certain non-GAAP financial measures during this conference call. Our earnings press release and the financial supplement posted to our IR website each provide a reconciliation of these non-GAAP financial measures to their most comparable GAAP financial measures. On the call with me today are Jeff Andreson, our CEO; and Larry Sparks, our retiring CFO; and Greg Swyt, our incoming CFO. Jeff will begin with an update on our business, and then Larry and Greg will provide additional details about our results. After the prepared remarks, we will open the line for questions.

I'll now turn over the call to Jeff Andreson. Jeff?

Jeff Andreson

Thank you, Claire, and welcome to our Q2 earnings call. Our second quarter results came in at the upper end of our expectations. Revenues were $185 million and declined less than expected, primarily due to the acceleration of customer demand for a couple of end markets that are recovering more quickly in the currently soft WFE environment. Our gross margin, operating expenses and operating profit performance also fell into the upper end of our guidance ranges. And with more favorable tax largely offsetting the higher interest expense, earnings of $0.02 per share also exceeded our prior expectations of a breakeven quarter.