Ultra Clean Holdings, Inc.

Good afternoon and welcome to the ultra clean fourth quarter and full year 2021 conference call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touch tone phone. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Rhonda Benetto, Investor Relations. Please go ahead.

Thank you, Operator. Good afternoon, everyone, and thank you for joining us. With me today are Jim Schulhammer, Chief Executive Officer, and Sherry Savage, Chief Financial Officer. Jim will begin with some prepared remarks about the business, and Sherry will follow with the financial review, and 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? Thank you, Rhonda, and thank you all for joining us today. I'm going to start with a brief review of our fourth quarter and full year results, and then provide an update on current events and conclude with our thoughts on why we believe 2022 will be another year of growth for the WFE market. Following that, I'll turn the call over to Sherry for a financial review, and then we'll open up the call for questions. With intense industry demand as a tailwind and UCT executing at peak levels, we exited 2021 with record financial results. Total revenue for the fourth quarter grew 66% compared to the same period last year and rose by more than 50% for the year compared to 2020. Fourth quarter earnings per share grew 50% when compared to the same period a year ago and 50% for the full year of 2020. UCT consistently outperforms the markets we serve and outpaces the majority of companies supporting the WFE system. These results are extraordinary given the challenging business conditions felt around the world over the past two years. I want to again thank each of our 7,000-plus employees for their contributions to our success. Responding together as a team, leveraging our global footprint and talent pool, and optimizing our operations, we were able to skillfully navigate many obstacles and adapt quickly to the operational complexities associated with the pandemic, including global supply chain challenges. Recently, the Omicron surge placed additional pressure on an already strained supply chain and labor force. We are actively collaborating with our customers and suppliers, including qualifying new suppliers, to maximize our output capability and meet our customers' delivery schedules. UCT's global footprint enables us to leverage economies of scale, and our procurement teams have found innovative ways to limit risk by increasing resiliency and efficiency in our supply chain. To a large extent, UCT has not been the limiting factor in the supply chain for on-time deliveries. Our global sites have been experiencing elevated levels of skilled labor absenteeism. However, we have been able to minimize the effect on our delivery schedules, and the situation is already improving. Despite the extremely high levels of demand, Supply chain constraints may continue for some time, and we have factored that into our first quarter guidance. Our financial performance is not the only measure we use to validate our success. We know we are doing the right things for our customers when we get recognized for our efforts. Winning Intel's award last year for extraordinary performance, innovation, and resolve in the face of pandemic-related supply chain challenges And then being invited to partner with them on their recently announced Ohio mega facility amplifies our position as a strategic partner of choice and deepens our engagement at the leading edge. We are constantly challenging the status quo and increasing our position in the value chain by meeting our customers' most complex needs and partnering early with them on their growth plan. We entered 2022 from a position of strength in our sector and expect that momentum to continue as visibility and demand are greater than they've ever been. Our capacity expansion plans are progressing, not only in Malaysia, but in other strategic locations around the world for products and services. This will enable us to meet regional capacity requirements, expand our global supply chain reach, and ensure our output capability aligns with the industry. Continued vertical integration with our current customers and capitalizing on many opportunities we see to attract new customers supports our strategic roadmap for continued outperformance. Increases in device complexity supporting rapid advances in artificial intelligence, high-performance computing, automated electronics, data centers, 5G, and virtual and augmented reality and gaming are the main drivers behind the increase in WFE demand. Supporting this growth will be 20-plus new fabs currently being built, with some IDMs already increasing their capital investments to accelerate construction this year. This is especially true in the U.S., where significant government support was recently announced and an important step to strengthening the country's leadership in the chip industry. Based on current sentiment and peer reports, and confirmed by our internal market expertise, we now expect WFE to potentially reach the $100 billion range by the end of this year. UCT's broad exposure to the entire fab construction, equipment build-out, and production support ecosystems, together with our strategic capacity expansion plans, sets the stage for another year of growth for UCT. In closing, we are executing at every level and will continue to drive innovation throughout our comprehensive portfolio products and services to enhance our leadership position. With demand skyrocketing, the trend towards outsourcing remains intact, and UCT has never been more ideally positioned to expand our business with our current customers, attract new customers, and gain share over the long term. And with that, I'd like to turn the call over to Sherry for a review of our financial results. Sherry?