Ultra Clean Holdings Inc (UCTT) 2025 Q3 法說會逐字稿

Ladies and gentlemen, and welcome to UCT Q3 2025 Financial Results Conference Call.

女士們、先生們，歡迎參加UCT 2025年第三季財務業績電話會議。

(Operator Instructions)

（操作員指示）

Please be advised that this call is being recorded on Tuesday, October 28, 2025. I will now turn the call over to our first speaker today, Rhonda Bennetto, Investor Relations. Please go ahead.

請注意，本次通話將於2025年10月28日星期二進行錄音。現在我將把電話交給今天的第一位發言人，投資者關係部的 Rhonda Bennetto。請繼續。

Thank you, operator. Good afternoon, everyone, and thank you for joining us. With me today are Clarence Granger, Chairman; James Xiao, CEO; Sheri Savage, CFO; and Cheryl Knepfler, VP Marketing. Clarence will begin with some prepared remarks about the quarter, and James will share his thoughts on the industry and the opportunities ahead for UCT. Sheri will follow with financial review and then we'll open up the call for questions.

謝謝您，接線生。各位下午好，感謝各位的參與。今天陪同我的有：董事長克拉倫斯·格蘭傑；首席執行官詹姆斯·肖；首席財務官謝裡·薩維奇；以及市場營銷副總裁謝麗爾·克內普弗勒。克拉倫斯將首先就本季發表一些準備好的講話，詹姆斯將分享他對業界以及開普敦大學未來機會的看法。Sheri 將隨後進行財務回顧，之後我們將開放提問環節。

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.

今天的電話會議包含前瞻性陳述，這些陳述存在風險和不確定性。更多資訊請參閱我們提交給美國證券交易委員會文件中的風險因素部分。所有前瞻性陳述均基於截至今日的估計、預測和假設，我們不承擔在本次電話會議後更新這些陳述的義務。

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 would like to turn the call over to Clarence. Clarence.

我們將以非公認會計準則（non-GAAP）為基礎對財務績效進行討論。有關 GAAP 與非 GAAP 的調整表，請參閱我們網站上今天發布的新聞稿。接下來，我想把電話交給 Clarence。克拉倫斯。

Thank you, Rhonda.

謝謝你，朗達。

And good afternoon, everyone. We appreciate you joining our third quarter 2025 conference call.

大家下午好。感謝您參加我們2025年第三季電話會議。

I'll start with a brief review of our Q3 results followed by an update on our three areas of focus, including new product introduction, flattening the organization, and business structure and processes.

我將首先簡要回顧我們第三季度的業績，然後介紹我們三個重點領域的進展情況，包括新產品引進、扁平化組織架構以及業務結構和流程。

After that, I'll turn the call over to James Xiao, UCT's new CEO for a few observations from his 1st 60 days and insight into UCT's next phase of growth.

之後，我將把電話交給 UCT 新任執行長 James Xiao，讓他談談上任 60 天以來的一些觀察，以及對 UCT 下一階段發展的見解。

And then Sheri will provide a more detailed financial review.

然後，謝裡將提供更詳細的財務分析。

First of all, we are very pleased with our 3rd quarter results, which reflect continued progress on the priorities we've set for the year.

首先，我們對第三季的業績非常滿意，這反映了我們在年度優先事項方面取得的持續進展。

This quarter we realized a notable improvement in our gross margin. Demonstrating some early benefits of the structural and operational improvements we've been implementing across UCT. As well as some tariff related cost recovery.

本季我們的毛利率取得了顯著提升。展示我們在開普敦大學實施的結構和營運改善措施的一些早期成效。以及一些與關稅相關的成本回收。

These results speak to the resilience of our business model, the discipline of our global teams, and our continued focus on execution in a complex and uncertain business environment.

這些結果證明了我們商業模式的彈性、我們全球團隊的紀律性以及我們在複雜和不確定的商業環境中對執行的持續關注。

Throughout the quarter We remain focused on strengthening our operational foundation through the 3 key initiatives I highlighted last quarter.

本季我們將繼續專注於透過我上個季度重點提到的 3 項關鍵措施來加強我們的營運基礎。

First, we continue to drive new product introductions and component qualifications with our customers, ensuring we are positioned early in their technology development cycle.

首先，我們繼續與客戶一起推動新產品的推出和組件認證，確保我們能夠儘早參與他們的技術開發週期。

Second, we substantially completed the work to flatten our organizational structure. A key milestone that's improving our decision-making speed, increasing efficiency, and better connecting our global teams.

第二，我們基本上完成了組織結構扁平化的工作。這是一個重要的里程碑，它將提高我們的決策速度，提升效率，並更好地連結我們的全球團隊。

Part of this process includes driving factory level efficiencies and consolidating select sites to further enhance productivity and optimize our cost structure.

該過程的一部分包括提高工廠層面的效率，並整合部分工廠，以進一步提高生產率並優化成本結構。

A third major area of focus streamlining our business systems and the optimization of our prior acquisitions, including fluid solutions, services, and HIS in the UCT's core systems and processes is on track.

第三個重點領域是簡化我們的業務系統和優化我們先前的收購，包括將流體解決方案、服務和 HIS 整合到 UCT 的核心系統和流程中，目前進展順利。

We installed our company-wide SAP business system into our fluid solutions group at the beginning of July, and we have completed the strategic alignment between our products group and fluid solutions on qualification priorities with our customers.

7月初，我們將公司範圍內的SAP業務系統安裝到流體解決方案部門，並且我們已經完成了產品部門和流體解決方案部門在與客戶溝通的資質認證優先事項方面的策略協調。

This alignment strengthens our position for new business opportunities and will support improved margins over time.

這種調整將增強我們在新業務機會中的地位，並有助於隨著時間的推移提高利潤率。

These combined efforts represent a comprehensive transformation that positions UCT for greater agility, efficiency, and long-term profitability.

這些共同努力代表著全面的轉型，使 UCT 能夠更加靈活、高效，並實現長期盈利。

While it will take time for all the benefits to be fully realized, these actions are foundational to building a stronger and more competitive company for the years ahead. We all recognize that the current macro landscape remains dynamic with near term volatility and reduced visibility.

雖然還需要時間才能完全實現所有益處，但這些舉措是未來幾年打造更強大、更具競爭力的公司的基礎。我們都體認到，當前的宏觀經濟情勢依然瞬息萬變，短期波動性較大，能見度較低。

Yet the underlying fundamentals of our industry remain exceptionally strong. AI enabled high performance computing continues to drive a powerful new wave of semiconductor innovation.

然而，我們產業的基本面依然非常強勁。人工智慧賦能的高效能運算持續推動半導體創新新一輪強勁浪潮。

Fueling demand for advanced manufacturing technologies, new architectures, and next generation processes. These structural growth drivers play directly into UCT's strengths.

推動對先進製造技術、新架構和下一代製程的需求。這些結構性成長驅動因素直接發揮了開普敦大學的優勢。

Our deep technical expertise, our manufacturing expertise, and the ability to respond with speed and precision as our customers' needs evolve.

我們擁有深厚的技術專長、製造專長，並且能夠隨著客戶需求的不斷變化而快速、精準地做出回應。

With that, I'll turn the call over to James to share more about our operational progress, customer engagement, and the opportunities we see ahead. James.

接下來，我將把電話交給 James，讓他分享更多關於我們營運進度、客戶互動以及我們未來看到的機會的資訊。詹姆斯。

Thank you, Clarence.

謝謝你，克拉倫斯。

My 1st 60 days as CEO has been inspiring. The talent and their drive across UCT gave me full confidence in our ability to take the company to the next level.

我擔任CEO的頭60天令人鼓舞。開普敦大學的優秀人才和進取心讓我對我們帶領公司邁向更高水準的能力充滿信心。

Our industry is entering a new era. Built by AI and the rapid technology change. That is what I call UCT 3.0. Evolving from a trusted partner into a trusted strategic partner and co-innovator. Deeply integrated into our customers technology roadmaps.

我們的產業正在進入一個新時代。由人工智慧和技術的快速變革所驅動。這就是我所說的 UCT 3.0：從值得信賴的合作夥伴發展成為值得信賴的策略夥伴和共同創新者。深度融入客戶的技術路線圖。

By harnessing our operations agility and innovation velocity, we will unlock new levels of growth with our world class facilities while supporting our global customers with speed, scale, automated infrastructure, and innovation.

透過發揮我們營運的敏捷性和創新速度，我們將利用我們世界一流的設施釋放新的成長潛力，同時以速度、規模、自動化基礎設施和創新為我們的全球客戶提供支援。

To build a little bit more on what Clarence already highlighted. My immediate focus remains on strengthening the profitability. Optimizing our global footprint. And positioning UCT for long-term growth.

在克拉倫斯已經強調的內容基礎上再補充一些內容。我眼下的工作重點仍是提高獲利能力。優化我們的全球佈局。並為UCT的長期發展做好準備。

Operationally, we are driving measurable improvement in quality, cost efficiency, and on-time delivery performance. Through lean and quality initiatives, we are streamlining our process across size and sharing best practices. Including broadening our vertical integration and optimizing the organization and our accountability.

在營運方面，我們正在努力提高品質、成本效益和準時交付率，並取得可衡量的進步。透過精益化和品質改進舉措，我們正在簡化各個規模的流程，並分享最佳實踐。包括擴大我們的垂直整​​合，優化組織結構和問責機制。

Automation and digitalization. Including the integration of AI-based inspection and the robotics, are also accelerating factory throughput and quality consistency.

自動化和數位化。人工智慧檢測和機器人技術的集成，也加快了工廠的生產效率和品質一致性。

With that, UCT will have more robust infrastructure and processes to better capture emerging growth opportunities during the next round.

這樣一來，UCT 將擁有更強大的基礎設施和流程，以便在下一輪發展中更好地抓住新興的成長機會。

Our optimized footprint strategy ensures the capacity is aligned with regional wafer fab agreement demand growth. We are establishing a cluster-based manufacturing network to improve global innovation. Be and cost efficiency to regionalized centers of excellence with new product engineering and mass production transfer.

我們優化的佈局策略確保產能與區域晶圓製造協議的需求成長一致。我們正在建立以集群為基礎的製造網絡，以促進全球創新。透過新產品工程和大規模生產轉移，提高區域卓越中心的效率和成本效益。

To build long-term value creation, we will accelerate the design to a production cycle. Capitalize on high value new product introduction as a leading ed note. And further strengthening our strategic partnerships with semi-ca customers through technology integration and execution discipline.

為了創造長期價值，我們將加快設計到生產的轉換週期。以高價值新產品上市為契機，撰寫一篇重要的編輯筆記。透過技術整合和執行紀律，進一步加強我們與半導體客戶的策略夥伴關係。

We are aligned with our peers, customers, and industry sentiment that the long-term outlook for the semiconductor market is very much intact.

我們與同業、客戶和產業普遍認為，半導體市場的長期前景依然十分穩固。

We see powerful sustained demand driven by AI, high performance computing, data center expansion, and other ones, the packaging technologies. We view these structural technology inflections as the foundation for a decade of growth across the semiconductor ecosystem.

我們看到，在人工智慧、高效能運算、資料中心擴張以及其他因素的推動下，包裝技術將迎來強勁且持續的需求。我們認為這些結構性技術變革是半導體生態系統未來十年發展的基礎。

In the short-term, while downstream fundamentals and settlements are improving, it could take several quarters to see a meaningful acceleration in wafer fab equipment spending.

短期內，雖然下游基本面和結算情況正在改善，但晶圓製造設備支出可能需要幾個季度才能出現實質的加速成長。

This does not change the fact that I'm very excited about the UCT's future. And the opportunity to lead this company into the next AI era of semiconductor advancement.

但這並不改變我對開普敦大學未來充滿期待的事實。並有機會帶領這家公司邁入半導體技術發展的下一個人工智慧時代。

Back over to you, Clarence. Thank you.

克拉倫斯，該你上場了。謝謝。

Thanks James.

謝謝詹姆斯。

I know that with your leadership, UCT will be in good hands.

我知道在您的領導下，開普敦大學一定會發展得很好。

Since this is my last conference call, I wanted to thank all our investors, our customers, and especially our employees for the trust they placed in me during this transition period.

由於這是我最後一次電話會議，我想感謝所有投資者、客戶，特別是員工，感謝他們在過渡時期對我的信任。

It was my honor to step in and reconnect with everyone, and I am very confident that James will take us to the next level.

我很榮幸能夠加入並與大家重新建立聯繫，我非常有信心詹姆斯會帶領我們走向新的高度。

With that, I'll turn the call over to Sheri for a review of our financial performance. Sheri.

接下來，我將把電話交給謝裡，讓她回顧我們的財務表現。雪莉。

Thanks Clarence and James, and good afternoon, everyone. Thanks for joining us. In today's discussion, I will be referring to non-GAAP numbers only. As Clarence and James noted, our 3rd quarter results highlight meaningful progress on our key initiatives for the year. These achievements demonstrate the effectiveness of our strategy and the resilience of our organization as we continue to position UCT for long-term profitable growth.

謝謝克拉倫斯和詹姆斯，大家下午好。感謝您的加入。今天的討論中，我將只參考非GAAP財務資料。正如克拉倫斯和詹姆斯所指出的，我們第三季的業績凸顯了我們今年各項重點舉措所取得的實質進展。這些成就證明了我們策略的有效性和我們組織的韌性，我們將繼續努力使 UCT 實現長期獲利成長。

For the third quarter, total revenue came in at $510 million compared to $518.8 million in the prior quarter. Revenue from products was $445 million compared to $454.9 million last quarter. Services revenue came in at $65 million in Q3 compared to $63.9 million in Q2.

第三季總營收為 5.1 億美元，而上一季為 5.188 億美元。產品收入為 4.45 億美元，而上一季為 4.549 億美元。第三季服務收入為 6,500 萬美元，而第二季為 6,390 萬美元。

Total gross margin for the third quarter was 17% compared to 16.3% last quarter. Products gross margin was 15.1% compared to 14.4% in Q2, and services was 30% compared to 29.9% last quarter.

第三季總毛利率為 17%，而上一季為 16.3%。產品毛利率為 15.1%，而第二季為 14.4%；服務毛利率為 30%，而上一季為 29.9%。

Gross margin gains were supported by improved site utilization, a higher value product mix, cost and efficiency initiatives, and tariff recoveries.

毛利率的成長得益於場地利用率的提高、產品價值組合的提升、成本和效率的最佳化以及關稅回收。

Margins continue to be influenced by fluctuations in volume, mix, manufacturing region, and related tariffs, as well as material and transportation costs. So there will be variances quarter to quarter.

利潤率持續受到銷售量、產品組合、生產地區和相關關稅以及原材料和運輸成本波動的影響。因此，每個季度之間都會存在差異。

Operating expense for the quarter was $57.7 million compared with $56.1 million in Q2. As a percentage of revenue, operating expenses were 11.3% versus 10.8% last quarter. As mentioned in the previous call, this increase in OpEx was mainly due to incremental SAP go live costs.

本季營業費用為 5,770 萬美元，而第二季為 5,610 萬美元。營業費用佔收入的百分比為 11.3%，而上一季為 10.8%。如同上次電話會議中所提到的，營運支出增加主要是由於 SAP 上線成本增加所致。

Total offering margin for the quarter came in at 5.7% compared to 5.5% last quarter. Margin from our products division was 4.9% compared to 4.8%, and services margin was 11.1% compared to 10.5% in the prior quarter.

本季總發行利潤率為 5.7%，而上一季為 5.5%。產品部門的利潤率為 4.9%，而上一季為 4.8%；服務部門的利潤率為 11.1%，而上一季為 10.5%。

Our third quarter tax rate came in at 22.7% as we have revised our full year estimated tax rate to approximately 21%. Our mix of earnings between higher and lower tax jurisdictions can cause our rate to fluctuate throughout the year.

我們第三季的稅率為 22.7%，而我們將全年預計稅率修正為約 21%。由於我們的收入分佈在高稅率和低稅率地區之間，因此我們的稅率可能會在一年中波動。

For 2025, we continue to expect the tax rate to be in the low to mid-20s. Based on 45.6 million shares outstanding, earnings per share for the quarter were $0.28 on net income of $12.9 million compared to $0.27 on net income of $12.1 million in the prior quarter.

我們預計2025年的稅率仍將維持在20%左右。根據 4,560 萬股流通股計算，本季每股收益為 0.28 美元，淨利為 1,290 萬美元，而上一季每股收益為 0.27 美元，淨利為 1,210 萬美元。

Turning to the balance sheet, our cash and cash equivalents were $314.1 million compared to $327.4 million at the end of last quarter.

從資產負債表來看，我們的現金及現金等價物為 3.141 億美元，而上一季末為 3.274 億美元。

Cash flow from operations was break even compared to $29.2 million last quarter, mainly due to timing of cash collections and payments.

與上季度的 2,920 萬美元相比，本季經營活動產生的現金流基本持平，主要原因是現金收款和付款的時間表。

Reducing our overall interest expense remains a key priority. During the quarter, we took advantage of favorable conditions in the credit markets to reprice our Term B loan.

降低整體利息支出仍然是我們的首要任務。本季度，我們利用信貸市場的有利條件，對 B 期貸款進行了重新定價。

Lowering our interest rate margin by 50 basis points. This proactive step further optimizes our capital structure and reduces our long-term borrowing costs.

我們將利率差降低50個基點。這項積極措施進一步優化了我們的資本結構，降低了我們的長期借貸成本。

Another development includes the renewal of our share repurchase program for an additional 3 year term, authorizing up to $150 million in repurchases with a maximum of $50 million per year.

另一個進展包括將我們的股票回購計畫延長 3 年，授權回購總額高達 1.5 億美元，每年最多回購 5,000 萬美元。

Although we are not anticipating near term repurchases, we view this program as a valuable component of our disciplined capital allocation framework.

雖然我們預計近期不會進行股票回購，但我們認為該計劃是我們嚴謹的資本配置框架的重要組成部分。

The tariff environment for the semiconductor market remains dynamic, and we continue to see the effects across the supply chain.

半導體市場的關稅環境仍然瞬息萬變，我們持續看到其對整個供應鏈的影響。

During the 3rd quarter, we achieved some tariff recovery, and we will continue to closely monitor developments, leverage our global footprint and localize supply chain to help mitigate the impact, maximize efficiency, and protect our profitability.

第三季度，我們取得了一些關稅回升，我們將繼續密切關注事態發展，利用我們的全球佈局和供應鏈本地化來幫助減輕影響，最大限度地提高效率，並保護我們的盈利能力。

As stated earlier, this quarter was very favorable for product mix and factory utilization. We see Q4 returning to similar levels as the first half of the year.

如前所述，本季產品組合和工廠利用率都非常有利。我們預計第四季將恢復到與上半年類似的水平。

As a result, we projected total revenue for the 4th quarter of 2025 to be between $480 million and $530 million.

因此，我們預計 2025 年第四季的總營收將在 4.8 億美元至 5.3 億美元之間。

We expect EPS in the range of $0.11 to $0.31.

我們預計每股收益在 0.11 美元至 0.31 美元之間。

And with that, I'd like to turn the call over to the operator for questions.

那麼，接下來我將把電話交給接線員，回答您的問題。

Thank you, ladies and gentlemen. We will now begin the question-and-answer session.

謝謝各位，女士們、先生們。現在開始問答環節。

(Operator Instructions)

（操作員指示）

Charles Shi of Needham & Company. Please go ahead.

Needham & Company 的 Charles Shi。請繼續。

Thanks for, taking my question. Good afternoon, Clarence and James, Sheri.

謝謝您回答我的問題。下午好，克拉倫斯、詹姆斯、謝裡。

Maybe the first question on the near term, industry demand outlook, sounds, looks like you guys are seeing, maybe we won't really see a pickup, over the next several quarters before an actual pickup start to happen. And I wonder what your view right now, first half next year, should we still kind of assume that the $500 million per quarter level and what's the early view on the second half, next year?

或許關於近期行業需求前景的第一個問題是，聽起來，看起來你們似乎看到，在接下來的幾個季度裡，我們可能都不會真正看到復甦，之後才會出現真正的復甦。我想知道您現在對明年上半年的看法，我們是否仍然應該假設每季營收能達到 5 億美元？您對明年下半年的初步看法是什麼？

That's the first question.

這是第一個問題。

Thank you.

謝謝。

Yeah, okay. So, Charles, thanks for the question and I look forward to work with you and your firm as a long-term partner. I think that our view on this, as you already heard from some of our customers, right? They really see a kind of made to a high range of year over year growth in next year's WFE in general.

嗯，好的。查爾斯，謝謝你的提問，我期待與你和你的公司建立長期的合作關係。我認為，正如您已經從我們的一些客戶那裡聽到的那樣，我們對此事的看法是這樣的，對吧？他們普遍認為，明年WFE將實現較高的年成長。

I think that some customers, see that a little bit of a sluttish outlook in the first half, and they see a kind of staff function increase in the second half, others see differently. So I think that I really do not want to give you a specific because the controversial outlook we have from different customers. So I would say that, we will see a mate to high range and year over year growth, and the timing of that to be seen.

我認為有些顧客覺得上半年有點輕浮，下半年員工職能有所提升，有些顧客則有不同的看法。所以我覺得我真的不想給你一個具體的答案，因為不同客戶對此看法不一。所以我認為，我們會看到價格在高位波動並逐年增長，至於何時實現增長，還有待觀察。

Got it.

知道了。

Go ahead, Charles. Go ahead, Charles.

請繼續，查爾斯。請繼續，查爾斯。

Yeah, maybe a second question, on Q4. Looks like you're guiding Q4 slightly below the September level. I believe, one quarter ago you were expecting some pickup, tied to some of the opportunities. You saw in Europe, and I wonder why the guide is a little bit lighter than the expectation quarter ago. Was that the timing of that program in Europe or something else has probably weakened a little bit.

是的，或許可以再問一個關於第四季的問題。看來你對第四季的預期略低於9月的水準。我相信，一個季度前，你曾預期會有一些成長，這與一些機會有關。你在歐洲看到了，我很好奇為什麼這份指南比一個季度前的預期略輕。是因為歐洲那項計劃的時機安排，還是其他什麼原因導致其影響力減弱？

Thank you.

謝謝。

Hi Charles, this is Sheri. Yeah, we did, we have seen that demand and continuing to see that, but we are seeing some different forecasts from other customers, so it's just causing a little bit difference in Q4 than what we initially said last quarter.

你好查爾斯，我是謝裡。是的，我們看到了這種需求，而且這種需求還在持續，但我們從其他客戶那裡得到了一些不同的預測，所以第四季度的業績與我們上個季度最初預測的略有不同。

But we are seeing strength in that specific revenue that we talked about in Q3, as we have a large bell curve of margins that we produce for our customers and in Q3 just happen to be a little bit better mix than what we've seen previously and Q4 is kind of going back to the mix that we've seen in the first half of '25, but that's generally why our Q4 is slightly down from the Q3 time frame.

但我們看到，我們在第三季度提到的特定收入方面表現強勁，因為我們為客戶生產的利潤率呈大鐘形曲線分佈，而第三季度恰好比我們之前看到的要好一些，第四季度又回到了我們在 2025 年上半年看到的水平，但這通常就是我們第四季度業績略低於第三季度的原因。

But Charles, it's Clarence, so.

但是查爾斯，他是克拉倫斯，所以…

As we said, we were going to capture some new business in Europe in Q4. We did capture that business.

正如我們所說，我們計劃在第四季在歐洲開拓一些新業務。我們成功拿下了那筆生意。

It's just as Sheri said, some other businesses slowing down and offsetting that, but overall, we are very confident in our position in capturing new business and we feel we're well on our way to have a much stronger year in 2026, albeit maybe in the second half.

正如謝裡所說，其他一些企業的成長放緩抵消了部分成長，但總體而言，我們對自身在拓展新業務方面的地位非常有信心，並且我們認為我們有望在 2026 年迎來更加強勁的一年，儘管可能是在下半年。

Got it. Well, if I may, I have one last question. What's the, is there anything changed anything that's different, in terms of your view about your China for China business, we knew that, at the beginning of the year there was some technical challenges that your, the Chinese OEM customers saw and that kind of led to quite a bit of a decline in that part of the business.

知道了。如果可以的話，我還有一個問題。就您對中國市場業務的看法而言，有沒有什麼變化或不同之處？我們知道，年初時，您的中國OEM客戶遇到了一些技術挑戰，這導致該部分業務出現了相當大的下滑。

Is that on track to recover and, is it on track into the, let's say, into the 4th quarter, where do you see that China for China business, in terms of maybe revenue run rate, where it's going to be at?

這項業務是否按計畫復甦？如果按計劃進入第四季度，您認為中國業務（例如營收成長率）會達到什麼水準？

Thank you.

謝謝。

Hey Charles, yeah, we knew this question was coming from you. We were kind of flipping a coin to see who got to answer it. I got a short straw, so I guess it's my turn. So just to make sure we clarify on our China situation, literally. A little less than 7% of our total revenue is to our Chinese customers, so it's not a huge portion of our revenue, but obviously I understand why everybody is interested in China with all the talk going on. So.

嘿，查爾斯，沒錯，我們就知道這個問題會是你問的。我們當時就像拋硬幣一樣，決定誰來回答這個問題。我運氣不好，抽到了短簽，看來輪到我了。所以，為了確保我們能清楚地了解我們在中國的情況，我得這麼說。來自中國客戶的銷售額僅占我們總收入的不到 7%，所以這部分收入佔比並不大，但鑑於目前關於中國的種種討論，我當然理解為什麼每個人都對中國感興趣。所以。

But in terms of the revenue, our revenue this quarter and next quarter will be about the same percentage for China, so it's relatively flat right now.

但就營收而言，本季和下季我們來自中國的營收佔比將大致相同，所以目前相對穩定。

And frankly, because of all the political turmoil, we are migrating all of our non-Chinese customer manufacturing out of China. So, as we Call that China for China, but we're probably going to quit using that terminology.

坦白說，由於所有政治動盪，我們正在將所有非中國客戶的生產轉移到中國境外。所以，我們過去稱之為“中國對中國”，但我們可能以後會停止使用這個術語。

But essentially all of the products manufactured in China as of the end of the 4th quarter will be manufactured in China, and all the products for our non-Chinese customers will be manufactured outside of China. So that's an important strategic direction for us, and we've accomplished what we said we would. So.

但從第四季末開始，基本上所有在中國生產的產品都將在中國生產，而所有針對非中國客戶的產品都將在中國境外生產。所以這對我們來說是一個重要的策略方向，而且我們已經實現了我們所說的目標。所以。

From a long-time long-term perspective, we're very comfortable with our position in China. We think the Chinese market is going to be one of significant growth over the next few years, and we fully intend to participate in that market going forward, albeit on a slightly different footing where we have essentially two separate manufacturing organizations.

從長遠來看，我們對自身在中國的地位感到非常滿意。我們認為中國市場在未來幾年將迎來顯著成長，我們完全打算繼續參與該市場，儘管我們目前擁有兩個獨立的製造組織，因此在略有不同的基礎上開展業務。

That's it.

就是這樣。

Thank you.

謝謝。

Thank you. I appreciate all the color.

謝謝。我喜歡這些色彩。

Thank you.

謝謝。

You're welcome.

不客氣。

Your next question comes from Krish Sankar of TD.

你的下一個問題來自TD的Krish Sankar。

Please go ahead.

請繼續。

Hello, this is Robert Merton on the line on behalf of Krish. First, congrats, James on the new role. We look forward to working closely with you in the future.

您好，我是羅伯特·默頓，代表克里什與您連線。首先，恭喜詹姆斯榮任新職。我們期待未來與您密切合作。

Just my first question, could you walk us through, some of the remaining synergies with these recent acquisitions you've done, I believe last quarter maybe you'd mentioned integrating the fluid solution group systems into existing products. Are those targets still on track? And then I have one follow-up.

我的第一個問題是，您能否為我們詳細介紹您最近進行的這些收購所帶來的剩餘綜效？我相信上個季度您可能提到將流體解決方案集團系統整合到現有產品中。這些目標目前還在照計畫進行嗎？然後我還有一個後續問題。

Sure. So, yeah, so obviously we've talked about the acquisitions. We had fluid solutions, services and HIS. And so the fluid solutions is the one where we've made the most significant progress right away. We have completed the inclusion or update to the SAP business system in our fluid solution site. This will give us consistency between our traditional UCT manufacturing and our fluid solutions.

當然。是的，我們顯然已經討論過收購事宜了。我們擁有流體解決方案、服務和 HIS。因此，在流體解決方案方面，我們取得了最顯著的進展。我們已完成將 SAP 業務系統整合或更新至我們的 Fluid Solution 網站。這將使我們的傳統 UCT 製造流程和流體解決方案保持一致性。

We've also completed the strategic alignment between the products group and the fluid solutions on qualification priorities with our customers, so we've made very good progress there.

我們也完成了產品組和流體解決方案在客戶資格認證優先事項方面的策略協調，因此我們在這方面取得了非常好的進展。

What that means though is that the reason we need strategic alignment is the fluid solutions products will be utilized in the subsystems that our product systems that our product groups build, so. We won't actually see as fluid solutions get more and more qualified, we won't actually see an increase in revenue.

但這意味著，我們需要戰略協調的原因是，流體解決方案產品將用於我們產品組建構的產品系統的子系統中。隨著流體解決方案越來越成熟，我們實際上並不會眼睜睜地看著收入成長。

What we'll see is an increase in margins because the fluids, the fluid solutions products will be replacing other products that we've had to buy from other suppliers, and so that will result in improved margins for us. And so we're very pleased with the progress that we've made there.

我們將看到利潤率上升，因為流體、流體解決方案產品將取代我們先前必須從其他供應商購買的其他產品，這將使我們的利潤率提高。因此，我們對在那裡取得的進展感到非常滿意。

The other two sites are the services site, and we've made some good progress on the integration of the services site. We had previously had the business unit separated from the manufacturing arm of the services group, and we've now combined that to improve our overall efficiencies. That's been accomplished.

另外兩個網站是服務網站，我們在服務網​​站的整合方面取得了一些不錯的進展。我們之前已將該業務部門與服務集團的製造部門分開，現在我們已將其合併，以提高整體效率。已經實現了。

And the HIS Group, we are considering various options relative to locations and possible levels of increased utilization for new product introduction. And possible site consolidation.

對於 HIS 集團，我們正在考慮與新產品推出地點和可能的提高利用率水準相關的各種方案。以及可能的網站整合。

So we have not finalized all the activities that we're doing in those major areas, but we do think that we've made significant progress and we expect significantly more progress in 2026.

因此，我們尚未完成在這些主要領域開展的所有活動，但我們認為我們已經取得了重大進展，並預計在 2026 年將取得更大的進展。

Great, thank you. That, that's helpful. And then just for the tariff recovery benefit in the quarter, was that meaningful to the overall margin growth in the September quarter and was this sort of a one-time benefit catch up from suppliers, or should we expect a bit of a tailwind in the December quarter as well?

太好了，謝謝。那很有幫助。那麼，就本季的關稅回收收益而言，這對 9 月季度的整體利潤成長有意義嗎？這是供應商一次性的追趕收益，還是我們應該期待 12 月季度也能獲得一些利多因素？

Yeah, well, this is Sheri, Robert. We will continue to collect surrounding our tariffs going forward. We did collect slightly more than what we anticipated in the original forecast, so that did help with our overall EPS, but we anticipate we have put a really good process in place and for go forward now, and that basically will assist us with that collection as we move forward.

是的，這位是雪莉，羅伯特。我們將繼續收集有關關稅方面的資訊。我們實際收到的款項略高於最初的預測，這確實有助於提高我們的整體每股收益，但我們預計我們已經建立了一個非常好的流程，並且該流程將幫助我們繼續推進收款工作。

I guess the other point I'd like to make on that, we're now to the point where we're very confident. First of all, this was not a one-time hit. This is ongoing, but we're very confident that we are now to the point where we are able to recover approximately maybe a little over 90% of the tariffs that we get charged. So this should be less of a factor to us on a go forward basis.

我想就此補充一點，我們現在已經非常有信心了。首先，這並非一次性的打擊。這項工作仍在進行中，但我們非常有信心，我們現在已經能夠收回大約 90% 以上的關稅。因此，從長遠來看，這應該不會對我們造成太大影響。

Got it thank you.

明白了，謝謝。

Thank you.

謝謝。

The next question comes from Christian Schwab of Craig-Hallum Capital.

下一個問題來自 Craig-Hallum Capital 的 Christian Schwab。

Please go ahead.

請繼續。

Thanks for taking my question. Congrats, James on the new role. As far as WFE outlook for calendar 2026, I understand, you're seeing conflicting data points and third-party research is kind of all over the place as well, but, that being said, do you think that the company is positioned, to outgrow WFE growth and calendar '26, regardless of what that number is historically kind of in an upturn you've kind of done 10% or more.

感謝您回答我的問題。恭喜詹姆斯榮任新職。關於 WFE 對 2026 年的展望，我了解到您看到的數據相互矛盾，第三方研究也莫衷一是。但是，即便如此，您認為公司是否已做好準備，在 2026 年實現超越 WFE 的成長？無論歷史上這個數字是多少，在經濟上升期，你們通常都能達到 10% 或更多。

Growth on top of WFE, is that what we should expect, or would you expect the business to kind of follow whatever WFE looks like?

在 WFE 的基礎上實現成長，這是我們應該期待的嗎？還是說您認為業務會隨著 WFE 的發展而改變？

Hi, Christian, this is James.

你好，克里斯蒂安，我是詹姆斯。

Nice to meet you virtually. So, I think that, as I mentioned, the '26 is really a kind of, 5% to 8% of year over year growth, depending on which analyst you're looking at. And from the UCT perspective, it's hard for us really to give you a concrete forecast on how much is our year over year growth for the following reasons, because, Number one is that, we still see some of the customers still have inventory, so the consumption of inventory actually kind of delay the revenue from UCT perspective, right?

很高興在網路上認識你。所以，我認為，正如我所提到的，2026 年的年成長率實際上在 5% 到 8% 之間，這取決於你參考的是哪位分析師的數據。從 UCT 的角度來看，我們很難給出特定的年度成長預測，原因如下：首先，我們仍然看到一些客戶還有庫存，因此庫存的消耗實際上會延遲 UCT 的收入，對吧？

So we're not synchronized because of that, number one. Number 2 is also, if you look at the NPI cycle of our customers, it takes quite a long time for them to really ramp up their NPIs and really kind of qualify UCT. Especially for the NPI product.

所以，由於這個原因，我們才無法同步。第二點是，如果你看我們客戶的新產品導入週期，你會發現他們需要相當長的時間才能真正提高新產品導入率，並真正對使用者能力驗證進行評估。尤其是對於新產品導入（NPI）而言。

So therefore, they, you probably see them to have this incremental revenue for the UCT revenue growth from the MPI product will be a few quarters behind. So therefore, we cannot fully capture the MPI growth.

因此，你可能會看到，來自 MPI 產品的 UCT 收入成長的增量收入將比預期晚幾個季度。因此，我們無法完全捕捉到MPI的成長。

But, and then the third is really the product mix. If you look at, the leading edge spending, right, you can see that the list is more than 40% of the spending. UCT historically, is really edge and that intensive.

但是，第三個關鍵因素是產品組合。如果你看一下前沿領域的支出，你會發現該清單上的項目佔總支出的 40% 以上。從歷史上看，UCT 確實是一所競爭激烈、強度很高的大學。

But with that said, we're working very closely with our 3rd customer, which is a little company.

但即便如此，我們仍然與我們的第三位客戶（一家小公司）保持著非常密切的合作關係。

And grow our revenue with them. So I think that the longer-term, you will see that we're more kind of matching the double-digit growth when we grow that a little business.

並與他們一起增加我們的收入。所以我認為從長遠來看，你會發現，當我們發展壯大這家小企業時，我們更有可能實現兩位數的成長。

And finally, I think that this also goes to the China factor, right? So I think the domestic OEMs in China, depend on, the The analyst report you kind of follow, they could be increasing percentage of the worldwide WFE growth and you see is not necessarily have the same market share as we have the rest of the world.

最後，我認為這也與中國因素有關，對吧？所以我認為，中國國內的OEM廠商，取決於你所關注的分析師報告，他們可能會提高全球WFE成長的百分比，但你會看到，他們不一定擁有與世界其他地區相同的市場份額。

With all that factors, I can now give you the exact number, but we're pretty confident we will outgrow the WFE.

考慮到所有這些因素，我現在可以給你一個確切的數字，但我們非常有信心我們會發展到超出 WFE 的規模。

Great, thank you. No other questions.

太好了，謝謝。沒有其他問題。

Thank you.

謝謝。

Your last question comes from Edward Yang of Oppenheimer.

你的最後一個問題來自奧本海默公司的愛德華楊。

Please go ahead.

請繼續。

Hi, folks. Thanks for the time and welcome aboard, James.

大家好。感謝您抽出時間，歡迎加入，詹姆斯。

Can we just, close the loop on your comments, about reduced visibility? It just seems a bit discordant from the rest of the industry so far where, I think the tone seems to be a bit more positive. So what are you seeing specifically in your order book? Just want to better understand the offsets, is it China? Is it memory? I saw that your memory revenue was down, or is it specific customers that. Give you some caution.

關於您提出的「可見度降低」的問題，我們能否就此結束討論？感覺這跟目前整個產業的基調有點不協調，我覺得整個產業的調性似乎比較正面。那麼，您在訂單簿中具體看到了什麼？我只是想更了解一下抵銷貿易，是指中國嗎？這是記憶嗎？我看到你們的記憶體收入下降了，還是說只影響了特定客戶？請您注意。

Hi Ed, this is Cheryl. I'll start sort of with the industry view and then let James talk a little bit more in terms of some of the products.

嗨，艾德，我是謝麗爾。我先從產業角度談談，然後請 James 再詳細說說一些產品方面的情況。

So when we look out at the industry, we do have a number of the companies and third parties who are indicating second half should be positive.

因此，當我們放眼整個產業時，確實有一些公司和第三方機構表示下半年業績應該會呈現正面狀況。

There's a lot of things that are going in on that, but we also have some of our large growth customers who are indicating some level of concern. Whether it translates to them saying their revenue is going to be flat or others, so there are at least 2 of our customers who are looking at flat revenue flat to up, others who are still forecasting, significant gains or opportunities, but all on the second half.

有許多因素影響這方面，但我們的一些大型成長型客戶也表示對此有些擔憂。無論這意味著他們說他們的收入將持平還是其他人，至少有 2 位客戶預計收入將持平或成長，其他客戶仍在預測重大收益或機會，但所有這些都發生在下半年。

So and we've had 2 or 3 or 4 years of saying second half growth. So I think we are just looking at remaining prudent in how we're looking at things. Since we are getting some level of conflicting information. However, I do think we have a lot of programs going on that James will reference that indicate that we do expect to see a level of growth through that, but we just want to remain cautious about how we're looking at it and how we structure things.

所以，我們已經連續兩三年或四年都達成了下半年的成長。所以我認為我們應該以謹慎的態度看待事物。因為我們得到的資訊有些互相矛盾。不過，我認為我們有很多項目正在進行，詹姆斯會提到這些項目，這些項目表明我們確實希望透過這些項目看到一定程度的成長，但我們只是想對我們看待問題的方式以及我們建構事情的方式保持謹慎。

Well said, Cheryl, I think that the only thing I want to add is that it's really the business nature. I live in both worlds at the semi-cap OEMs and now with, subsystem company like UCT. I see the visibility is a little bit different. The other side is about 6 to 9 months, if you will. Here it's really a quarter plot, I say. So therefore, there is a visibility kind of difference.

謝麗爾說得好，我想我唯一想補充的是，這其實是商業本質使然。我同時在半導體OEM廠商和像UCT這樣的子系統公司工作，身處在這兩個世界。我發現能見度有點不一樣了。另一方面，大概需要 6 到 9 個月的時間。我說，這裡其實只有四分之一的地。所以，從可見性的角度來看，兩者之間存在差異。

Therefore, I think we want to stay very precise on what we know and what we can really kind of share with you and the rest.

因此，我認為我們應該非常精確地說明我們所知道的以及我們可以真正與您和其他人分享的內容。

Okay, that's helpful. And James, I mean you spoke a lot about efficiency and optimization, but we would love to get your thoughts also on your plans for restarting the growth engine at UCT, where do you think the best opportunities are? Is it in, leading edge, AI, is it M&A, China, would love to get your thoughts there.

好的，這很有幫助。詹姆斯，我的意思是，你談了很多關於效率和優化的話題，但我們也很想聽聽你對重啟開普敦大學成長引擎的計畫有什麼想法，你認為最好的機會在哪裡？它是否與尖端技術、人工智慧、併購、中國有關？我很想聽聽您的看法。

I think that those are relevant. I would love to do all of them, but I think that we're also constrained by the resource, and I want the team really focused on the fundamental first, right? So, as a subsystem partners to our OEM customers, we want to make sure we really deliver on time, we really have the least quality excursion.

我認為這些都相關。我很想把所有事情都做完，但我覺得我們也受到資源的限制，我希望團隊首先真正專注於基本要素，對吧？因此，作為我們 OEM 客戶的子系統合作夥伴，我們希望確保我們真正按時交付，並將品質偏差降到最低。

And also, we continue to drive the cost efficiency, right? So that's really my first priority.

而且，我們還要繼續提高成本效益，對吧？所以這確實是我首要的任務。

Then I think that the growth really, it's always follow that Horizon 1,2,3 cadence. I always want to focus on the Horizon 1, which is really expand the business with our partners in the OEM space. The TOP3 customers is definitely our focus, and then we can look at, the diversification in that space means that some of the other, semi-cap OEMs.

那麼我認為，真正的成長總是遵循 Horizo​​n 1、2、3 的節奏。我一直想專注於第一階段目標，那就是真正拓展我們在 OEM 領域的合作夥伴的業務。TOP3 客戶絕對是我們的重點，然後我們可以考慮該領域的多元化，這意味著其他一些半市值 OEM 廠商。

I really want to continue the vertical integration that Jim and Clarence already did in the past 5 years.

我非常希望能夠延續吉姆和克拉倫斯在過去 5 年裡已經實現的垂直整合模式。

And integration is part of that we can further expand the engineer product as long as it fits our core competency and also fit in the vertical integration strategy we have. And finally, as the Horizon 2 or 3, we can look at all the areas you mentioned. So, but I think that we'll have an upcoming investor.

整合是我們可以進一步擴展工程產品的一部分，只要它符合我們的核心競爭力，也符合我們已有的垂直整合策略。最後，作為 Horizo​​n 2 或 3，我們可以考察您提到的所有領域。所以，我認為我們會迎來一位新的投資人。

Conference and work, we can share more of my growth strategy with you and the other folks.

在會議和工作中，我們可以和您以及其他人分享更多關於我的成長策略。

I look forward to that.

我對此充滿期待。

Thank you very much.

非常感謝。

Thank you.

謝謝。

There are no further questions at this time. I will now turn the call over to James Xiao for the closing remark. Please continue.

目前沒有其他問題了。現在我將把電話交給詹姆斯·肖，請他做總結發言。請繼續。

Thank you for joining us for this earnings call. I look forward to further chat with you at the follow-up call.

感謝您參加本次財報電話會議。我期待在後續電話會議中與您進一步交流。

Thank you.

謝謝。

Ladies and gentlemen, this concludes today's conference call.

女士們、先生們，今天的電話會議到此結束。

Thank you for your participation. You may now disconnect.

感謝您的參與。您現在可以斷開連線。