Shares of Ultra Clean Holdings Inc. (UCTT) rose 14 percent in after-hours trade on Monday, after the company reported an increase in fourth-quarter profit, driven mainly by a tax benefit. Moving ahead, the company detailed its first quarter results, expected to come in above current Street expectations.
The California-based company's net income for the quarter rose to $7.8 million or $0.34 per share from $3.9 million or $0.17 per share last year. The company recorded a tax benefit of $6.4 million or $0.28 per share for the fourth quarter of 2011.
On average, four analysts polled by Thomson Reuters expected earnings of $0.03 per share for the quarter. Analysts' estimates typically exclude one-time items.
Fourth-quarter revenues declined 27.8 percent to $86.9 million from $120.3 million last year. Wall Street analysts on a consensus estimated revenues of $83.72 million for the quarter.
Gross margin for the quarter slipped to 11.0 percent from 12.3 percent last year, as costs of goods sold increased.
"As anticipated we experienced lower demand during the fourth quarter, primarily from our high brightness LED customers," said Chief Executive Clarence Granger. "We believe that we are at the bottom of this market decline and expect our operating results to be significantly better in the next quarter."
Looking forward to the first quarter of 2011, the company expects earnings in a range of $0.15 to $0.18 per share, and revenues of $105 million to $110 million. Ultra Clean said the forecast reflects increases in demand by its customers during the first quarter of 2012. Analysts currently expect earnings of $0.09 per share on revenues of $88.98 million for the first-quarter of 2012.
UCTT closed Monday's trading on the Nasdaq at $7.80, up $0.04 or 0.52%. The stock further gained $1.15 or 14.74% in after hours.
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