Ultra Clean Holdings, Inc.

Good day and welcome to the Ultra Clean first quarter 2022 conference call. All participants will be in a 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 a 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 Veneto, Investor Relations. Please go ahead.

Thank you, Operator. Good afternoon, everyone, and thank you for joining us. With me today are Jim Schollhammer, 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, 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?

Thanks, Rhonda. And thank you all for joining us today. I'm going to start by providing our thoughts on the current demand environment and why we believe 2022 will be another year of growth. I'll follow that with a high level review of our results, including some insight on current events affecting our business and the industry. After that, I'll turn the call over to Sherry for a financial review. Then we'll open up the call for questions. Industry demand remains elevated with appetite for our products and services growing across all our end markets. Unlike historical semi-market cycles, the acceleration of digital transformation the past couple of years has dramatically increased the consumption of semiconductor content to the benefit of the entire manufacturing ecosystem. Record multi-year capital spending plans are ramping to support industry's megatrends, such as 5G, artificial intelligence, electrical vehicles, and high-performance computing. We will continue to execute on our long-term growth strategy by innovating and investing alongside our customers, gaining share, and further securing our leading position as their manufacturing partner of choice for years to come. One of the primary reasons we continue to increase share with our current customers and attract new business is our relentless commitment to quality. Earlier this month, we were honored to receive the Excellence in Quality Award from Applied Materials for consistently meeting and exceeding their expectations over the past year. I am extremely proud of our teams who successfully anticipated and delivered beyond our customers' needs. Quality isn't the only reason our business is growing under challenging circumstances. The fact that we are able to meet our customers' schedules also plays a key role as highlighted by Intel's recognition of our ability to deliver on time during the pandemic. Quality and on-time delivery were the reasons Intel chose UCT as a partner for their Ohio MegaFab projects. reinforcing our partnership to meet the surging demand for advanced semiconductors. UCT's proven ability to continuously challenge the status quo in the way we think, act, and drive our business is delivering exceptional values to our customers. One of UCT's most compelling value propositions is our ability to provide capacity to support growth in outsourcing. By optimizing our existing asset infrastructure and adding additional capacity, we enable a deeper collaboration with customers, resulting in a faster response to market opportunities. From the fab construction phase to building the equipment within the fab to servicing the end products, we are set to capitalize on a broad range of opportunities throughout the semiconductor value chain. For all the reasons I just mentioned, we continue to believe that 2022 will be another year of growth for the WFE market. In the short term, however, we did experience some obstacles late in the first quarter that impacted our financial results. The Chinese government's zero-tolerance lockdown strategy, together with the grounding of all Chinese airline-based 737-800 aircraft, impeded our production schedule and interfered with our ability to ship and receive from our Shanghai facility. With these two events happening simultaneously near the end of March, we did not have sufficient time to leverage our global footprint to offset production delays. The lockdown situation in China remains dynamic, and it is uncertain when restrictions will be lifted. We are working very closely with our customers and suppliers to utilize alternative production and delivery solutions. For example, we are shifting production to Malaysia, Texas, and our Philippines sites. To date, we have not impacted our customer delivery schedule. In addition, we are able to meet immediate demand, but some fulfillment has shifted into subsequent quarters. We are confident in our ability to navigate and adapt using the flexible operating protocols that have served us well since the beginning of the pandemic. Broader macroeconomic and geopolitical instability continues to exasperate issues in an already fragile supply chain. While we believe the China shutdown will be temporary in nature, we anticipate supply chain challenges could persist for some time. In summary, we will adapt to the short-term challenges by remaining operationally flexible and we will drive productivity to meet our growth objectives. I want to thank our employees, our suppliers, and our customers for their commitment and collaboration. We have consistently proven that UCT is a resilient company and remain confident that we will demonstrate notable upside for our company, our employees, our customers, our investors, and our communities over the long run. And with that, I'd like to turn the call over to Sherry for a review of our first quarter financial results. Sherry?