Delaware
|
001-38273
|
94-3290283
|
(State or Other Jurisdiction of Incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
42307 Osgood Road, Suite I
|
||
Fremont, California
|
94539
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading symbol
|
Name of each exchange on which registered
|
||
Class A Common Stock, par value $0.0001 per share
|
ACMR
|
Nasdaq Global Market
|
Item 2.02. |
Results of Operations and Financial Condition.
|
Item 9.01 |
Financial Statements and Exhibits.
|
(d) |
Exhibits.
|
Exhibit
|
Description
|
|
Press release of ACM Research, Inc. dated November 6, 2019
|
ACM RESEARCH, INC.
|
||
By:
|
/s/ David H. Wang
|
|
David H. Wang
|
||
Chief Executive Officer and President
|
||
Dated: November 7, 2019
|
• |
Shipments. Total shipments in the third quarter of 2019 were $43 million, compared to $33 million last quarter and $32 million in the third quarter of 2018. Shipments include deliveries for
revenue in the quarter and deliveries of systems awaiting customer acceptance for potential revenue in future quarters.
|
• |
SAPS-V “First Tool” delivered to new DRAM customer. ACM delivered a SAPS-V single wafer cleaning tool to an emerging manufacturer of DRAM memory chips in China in the third quarter of 2019, with
revenue recognition upon qualification and acceptance.
|
• |
Equity Raise. In August 2019, ACM completed a successful US capital raise, raising approximately $23 million in net proceeds. This transaction provides an important capital infusion, enabling
ACM to further execute its growth strategy, support customer development efforts, and strengthen its balance sheet.
|
Three Months Ended September 30,
|
||||||||||||||||
GAAP
|
Non-GAAP(1)
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
(dollars in thousands)
|
||||||||||||||||
Revenue
|
$
|
33,427
|
$
|
23,179
|
$
|
33,427
|
$
|
23,179
|
||||||||
Gross margin
|
48.6
|
%
|
44.4
|
%
|
49.1
|
%
|
44.5
|
%
|
||||||||
Income from operations
|
$
|
7,030
|
$
|
3,404
|
$
|
8,587
|
$
|
3,815
|
||||||||
Net income attributable to ACM Research, Inc.
|
$
|
8,782
|
$
|
3,853
|
$
|
10,339
|
$
|
4,264
|
||||||||
Basic EPS
|
$
|
0.52
|
$
|
0.24
|
$
|
0.61
|
$
|
0.27
|
||||||||
Diluted EPS
|
$
|
0.45
|
$
|
0.21
|
$
|
0.53
|
$
|
0.23
|
Nine Months Ended September 30,
|
||||||||||||||||
GAAP
|
Non-GAAP(1)
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
(dollars in thousands)
|
||||||||||||||||
Revenue
|
$
|
82,916
|
$
|
53,795
|
$
|
82,916
|
$
|
53,795
|
||||||||
Gross margin
|
46.1
|
%
|
44.9
|
%
|
46.3
|
%
|
44.9
|
%
|
||||||||
Income from operations
|
$
|
13,942
|
$
|
3,831
|
$
|
16,861
|
$
|
6,602
|
||||||||
Net income attributable to ACM Research, Inc.
|
$
|
14,950
|
$
|
4,288
|
$
|
17,869
|
$
|
7,059
|
||||||||
Basic EPS
|
$
|
0.91
|
$
|
0.27
|
$
|
1.09
|
$
|
0.45
|
||||||||
Diluted EPS
|
$
|
0.80
|
$
|
0.24
|
$
|
0.96
|
$
|
0.40
|
(1) |
Reconciliations to U.S. generally accepted accounting principles (“GAAP”) financial measures from non-GAAP financial measures are presented below under “Reconciliation of GAAP to Non-GAAP Financial Measures.” Non-GAAP financial
measures (excluding revenue) exclude stock-based compensation.
|
• |
Revenue increased 44.2% to $33.4 million, due to an increased volume of tools shipped for revenue and higher prices associated with these tools. Revenue for the quarter was entirely driven by
repeat shipments, with no acceptances contributing to revenue for the period.
|
• |
Gross margin was 48.6%, compared to 44.4% in the third quarter of 2018. Gross margin was above the high-end of the range of 40.0% to 45.0% set forth in the Company’s long-term business model.
The strong gross margin performance was due to a higher mix of higher-margin products. The Company expects gross margin to continue to vary from period to period due to a variety of factors, such as sales volume and product mix.
|
• |
Operating expenses were $9.2 million, an increase of 34%. GAAP operating expenses as a percent of revenue decreased to 27.6%, compared to 29.7% in the third quarter of 2018. Non-GAAP operating
expenses, which remove stock-based compensation, were $7.8 million, an increase of 20.4%. Non-GAAP operating expenses as a percent of revenue decreased to 23.4%, compared to 28.0% in the third quarter of 2018.
|
• |
Net income attributable to ACM Research, Inc. was $8.8 million, compared to $3.9 million in the third quarter of 2018. Non-GAAP net income attributable to ACM Research, Inc. was $10.3 million,
compared to $4.3 million in the third quarter of 2018. Third quarter net income attributable to ACM Research, Inc included currency fluctuations, which contributed approximately $1.7 million (adjusted for a 10% normalized tax rate), and a
one-time tax benefit from a reduced tax valuation, which contributed approximately $1.4 million.
|
• |
Net income attributable to ACM Research, Inc. per diluted share was $0.45, compared to $0.21 in the third quarter of 2018. Non-GAAP net income attributable to ACM Research, Inc. per diluted
share was $0.53, compared to $0.23 in the third quarter of 2018.
|
• |
Cash and equivalents at quarter-end were $47.3 million, up from $27.6 million at the end of the second quarter of 2019 and $18.2 million at the end of the third quarter of 2018.
|
Phone Number
|
Toll-Free Number
|
|
United States
|
+1 (845) 675-0437
|
+1 (866) 519-4004
|
Hong Kong
|
+852 3018 6771
|
+852 8009 06601
|
Mainland China
|
+86 (800) 819 0121
|
|
+86 (400) 620 8038
|
||
Other International
|
+65 6713 5090
|
In the United States:
|
The Blueshirt Group
|
Ralph Fong
|
|
+1 (415) 489-2195
|
|
ralph@blueshirtgroup.com
|
|
In China:
|
The Blueshirt Group Asia
|
Gary Dvorchak, CFA
|
|
+86 (138) 1079-1480
|
|
gary@blueshirtgroup.com
|
September 30, 2019
|
December 31, 2018
|
|||||||
(Unaudited)
|
||||||||
(In thousands, except share and per share data)
|
||||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
47,264
|
$
|
27,124
|
||||
Restricted cash
|
26,582
|
- | ||||||
Accounts receivable, less allowance for doubtful accounts of $0 as of September 30, 2019 and $0 as of December 31, 2018
|
43,144
|
24,608
|
||||||
Other receivables
|
2,152
|
3,547
|
||||||
Inventories
|
43,506
|
38,764
|
||||||
Prepaid expenses
|
1,006
|
1,985
|
||||||
Total current assets
|
163,654
|
96,028
|
||||||
Property, plant and equipment, net
|
3,573
|
3,708
|
||||||
Operating lease right-of-use assets, net
|
4,205
|
-
|
||||||
Intangible assets, net
|
285
|
274
|
||||||
Deferred tax assets
|
2,309
|
1,637
|
||||||
Long-term investments
|
5,968
|
1,360
|
||||||
Other long-term assets
|
222
|
40
|
||||||
Total assets
|
180,216
|
103,047
|
||||||
Liabilities, Redeemable Non-controlling Interest and Stockholders’ Equity
|
||||||||
Current liabilities:
|
||||||||
Short-term borrowings
|
15,665
|
9,447
|
||||||
Accounts payable
|
15,440
|
16,673
|
||||||
Advances from customers
|
8,397
|
8,417
|
||||||
Income taxes payable
|
1,326
|
1,193
|
||||||
Other payables and accrued expenses
|
13,970
|
10,410
|
||||||
Current portion of operating lease liability
|
1,350
|
-
|
||||||
Total current liabilities
|
56,148
|
46,140
|
||||||
Long-term operating lease liability
|
2,855
|
-
|
||||||
Other long-term liabilities
|
2,980
|
4,583
|
||||||
Total liabilities
|
61,983
|
50,723
|
||||||
Commitments and contingencies
|
||||||||
Redeemable Non-controlling interests
|
26,888
|
-
|
||||||
Stockholders’ equity:
|
||||||||
Common stock – Class A, par value $0.0001: 50,000,000 shares authorized as of September 30, 2019 and December 31, 2018; 16,179,058 shares issued and outstanding as of September 30, 2019
and 14,110,315 shares issued and outstanding as of December 31, 2018
|
2
|
1
|
||||||
Common stock–Class B, par value $0.0001: 2,409,738 shares authorized as of September 30, 2019 and December 31, 2018; 1,862,608 shares issued and outstanding as of September 30, 2019 and
1,898,423 shares issued and outstanding as of December 31, 2018
|
-
|
-
|
||||||
Additional paid in capital
|
82,857
|
56,567
|
||||||
Accumulated surplus (deficit)
|
11,563
|
(3,387
|
)
|
|||||
Accumulated other comprehensive income (loss)
|
(3,077
|
)
|
(857
|
)
|
||||
Total stockholders’ equity
|
91,345
|
52,324
|
||||||
Total liabilities, redeembable non-controlling interests, and stockholders' equity
|
$
|
180,216
|
$
|
103,047
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
( In thousands, except share and per share data)
|
( In thousands, except share and per share data)
|
|||||||||||||||
Revenue
|
$
|
33,427
|
$
|
23,179
|
$
|
82,916
|
$
|
53,795
|
||||||||
Cost of revenue
|
17,173
|
12,892
|
44,705
|
29,662
|
||||||||||||
Gross profit
|
16,254
|
10,287
|
38,211
|
24,133
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Sales and marketing
|
3,886
|
3,229
|
8,679
|
7,766
|
||||||||||||
Research and development
|
3,492
|
2,264
|
9,598
|
6,224
|
||||||||||||
General and administrative
|
1,846
|
1,390
|
5,992
|
6,312
|
||||||||||||
Total operating expenses, net
|
9,224
|
6,883
|
24,269
|
20,302
|
||||||||||||
Income from operations
|
7,030
|
3,404
|
13,942
|
3,831
|
||||||||||||
Interest income
|
95
|
3
|
128
|
20
|
||||||||||||
Interest expense
|
(205
|
)
|
(112
|
)
|
(538
|
)
|
(364
|
)
|
||||||||
Other income, net
|
1,850
|
902
|
2,132
|
1,213
|
||||||||||||
Equity income (loss) in net income of affiliates
|
(9
|
)
|
117
|
260
|
235
|
|||||||||||
Income before income taxes
|
8,761
|
4,314
|
15,924
|
4,935
|
||||||||||||
Income tax (expense) benefit
|
328
|
(461
|
)
|
(667
|
)
|
(647
|
)
|
|||||||||
Net income
|
9,089
|
3,853
|
15,257
|
4,288
|
||||||||||||
Less: Net income attributable to non-controlling interest
|
307
|
-
|
307
|
-
|
||||||||||||
Net income attributable to ACM Research, Inc.
|
$
|
8,782
|
$
|
3,853
|
$
|
14,950
|
$
|
4,288
|
||||||||
Comprehensive income:
|
||||||||||||||||
Net income
|
9,089
|
3,853
|
15,257
|
4,288
|
||||||||||||
Foreign currency translation adjustment
|
(2,591
|
)
|
(746
|
)
|
(2,902
|
)
|
(1,077
|
)
|
||||||||
Total comprehensive income
|
6,498
|
3,107
|
12,355
|
3,211
|
||||||||||||
Less: Comprehensive income attributable to non-controlling interests
|
307
|
-
|
307
|
-
|
||||||||||||
Total comprehensive income attributable to ACM Research, Inc.
|
$
|
6,191
|
$
|
3,107
|
$
|
12,048
|
$
|
3,211
|
||||||||
Net income attributable to ACM Research, Inc. per common share:
|
||||||||||||||||
Basic
|
$
|
0.52
|
$
|
0.24
|
$
|
0.91
|
$
|
0.27
|
||||||||
Diluted
|
$
|
0.45
|
$
|
0.21
|
$
|
0.80
|
$
|
0.24
|
||||||||
Weighted average common shares outstanding used in computing per share amounts:
|
||||||||||||||||
Basic
|
16,999,746
|
15,915,864
|
16,381,944
|
15,714,310
|
||||||||||||
Diluted
|
19,354,214
|
18,169,807
|
18,699,010
|
17,816,101
|
Three Months Ended September 30,
|
||||||||||||||||||||||||
2019
|
2018
|
|||||||||||||||||||||||
Actual
(GAAP)
|
SBC
|
Adjusted
(Non-GAAP)
|
Actual
(GAAP)
|
SBC
|
Adjusted
(Non-GAAP)
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Revenue
|
$
|
33,427
|
$
|
-
|
$
|
33,427
|
$
|
23,179
|
$
|
-
|
$
|
23,179
|
||||||||||||
Cost of revenue
|
(17,173
|
)
|
(154
|
)
|
(17,019
|
)
|
(12,892
|
)
|
(25
|
)
|
(12,867
|
)
|
||||||||||||
Gross profit
|
16,254
|
(154
|
)
|
16,408
|
10,287
|
(25
|
)
|
10,312
|
||||||||||||||||
Operating expenses:
|
||||||||||||||||||||||||
Sales and marketing
|
(3,886
|
)
|
(172
|
)
|
(3,714
|
)
|
(3,229
|
)
|
(42
|
)
|
(3,187
|
)
|
||||||||||||
Research and development
|
(3,492
|
)
|
(759
|
)
|
(2,733
|
)
|
(2,264
|
)
|
(64
|
)
|
(2,200
|
)
|
||||||||||||
General and administrative
|
(1,846
|
)
|
(472
|
)
|
(1,374
|
)
|
(1,390
|
)
|
(280
|
)
|
(1,110
|
)
|
||||||||||||
Income from operations
|
$
|
7,030
|
$
|
(1,557
|
)
|
$
|
8,587
|
$
|
3,404
|
$
|
(411
|
)
|
$
|
3,815
|
||||||||||
Net income attributable to ACM Research, Inc.
|
$
|
8,782
|
$
|
(1,557
|
)
|
$
|
10,339
|
$
|
3,853
|
$
|
(411
|
)
|
$
|
4,264
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||
2019
|
2018
|
|||||||||||||||||||||||
Actual
(GAAP)
|
SBC
|
Adjusted
(Non-GAAP)
|
Actual
(GAAP)
|
SBC
|
Adjusted
(Non-GAAP)
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Revenue
|
$
|
82,916
|
$
|
-
|
$
|
82,916
|
$
|
53,795
|
$ | - |
$
|
53,795
|
||||||||||||
Cost of revenue
|
(44,705
|
)
|
(213
|
)
|
(44,492
|
)
|
(29,662
|
)
|
(44
|
)
|
(29,618
|
)
|
||||||||||||
Gross profit
|
38,211
|
(213
|
)
|
38,424
|
24,133
|
(44
|
)
|
24,177
|
||||||||||||||||
Operating expenses:
|
||||||||||||||||||||||||
Sales and marketing
|
(8,679
|
)
|
(252
|
)
|
(8,427
|
)
|
(7,766
|
)
|
(115
|
)
|
(7,651
|
)
|
||||||||||||
Research and development
|
(9,598
|
)
|
(939
|
)
|
(8,659
|
)
|
(6,224
|
)
|
(131
|
)
|
(6,093
|
)
|
||||||||||||
General and administrative
|
(5,992
|
)
|
(1,515
|
)
|
(4,477
|
)
|
(6,312
|
)
|
(2,481
|
)
|
(3,831
|
)
|
||||||||||||
Income from operations
|
$
|
13,942
|
$
|
(2,919
|
)
|
$
|
16,861
|
$
|
3,831
|
$
|
(2,771
|
)
|
$
|
6,602
|
||||||||||
Net income attributable to ACM Research, Inc.
|
$
|
14,950
|
$
|
(2,919
|
)
|
$
|
17,869
|
$
|
4,288
|
$
|
(2,771
|
)
|
$
|
7,059
|