Ultra Clean Holdings, Inc. (NASDAQ:UCTT) Q4 2023 Earnings Conference Call February 21, 2024 4:45 PM ET

Company Participants

Rhonda Bennetto - SVP IR

Jim Scholhamer - CEO

Sheri Savage - CF

Conference Call Participants

Krish Sankar - TD Cowen

Christian Schwab - Craig-Hallum Capital Group

Operator

Good day, ladies and gentlemen, and welcome to the Ultra Clean Technology Q4 and Full Year 2023 Earnings Call and Webcast Conference. [Operator Instructions] This call is being recorded on Wednesday, February 21, 2024.

I would now like to turn the conference over to Rhonda Bennetto. 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, 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 welcome everyone to our Q4 2023 earnings call and webcast.

I'll start by providing a brief overview of our Q4 results that Sheri will expand on in her commentary, and also provide our thoughts on the current state of the industry and our plans to capitalize on the significant opportunity we see over the long term.

Fourth quarter total revenue grew modestly as expected from the prior quarter. Visibility remained less than ideal as our products customers continued to shift mix and location to help expedite the normalization of inventories. Our global footprint and ability to quickly flex to meet demand was an advantage in the quarter. Our services business stayed relatively flat as customers maintained current output levels.

For 2023, our revenue and earnings largely reflected the overall decline seen across the broader semiconductor market. As we've done in previous downturns, we viewed last year as an opportunity to invest in several strategic actions that best position us to capitalize on the sizable growth opportunities that lie ahead. Optimizing operations and increasing capacity to support the next ramp were top priorities in 2023.