Ultra Clean Holdings, Inc.

Good day, everyone, and welcome to the Ultra Clean second 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 and then one on your touchtone phones. To withdraw your questions, you may press star and two. Please also note today's event is being recorded. At this time, I would like to turn the conference call over to Rhonda Benetto, Investor Relations. Ma'am, 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, 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?

Thanks, Rhonda, and thank you all for joining us today. I'm going to start with a brief review of our second quarter results and activities and provide some insight into how we feel the second half of this year will play out. I'll also highlight how UCT's diversification strategy has become a compelling advantage, and then I'll turn the call over to Sherry for a financial review. After that, we will open up the call for questions. The relaxation of China's COVID lockdown protocols, combined with strong execution at our other global sites, enabled us to reach revenue above the midpoint of our guided range. After a comprehensive strategic review of our corporate structure and operations, we began the process of divesting some of our non-semi businesses during the quarter that we acquired with the Hamlet acquisition. We continued to analyze ways to improve capital efficiency while remaining focused on our core semiconductor business. For the second half of this year, we reiterate our belief that 2022 will be another year of growth for the WFB market and UCT. Broad-based rational spending supporting leading and trailing edge devices continues to keep demand elevated. While some customer order flows and delivery schedules have been adjusted into the following quarters to align with ongoing supply chain constraints and capacity limitations, we have not seen any significant cancellations. Trusted partners like UCT that anticipate and deliver beyond our customers' needs are becoming even more valuable within the Semi ecosystem. We are focused on two priorities right now. optimizing our supply chain and adding capacity to meet near and long-term demand. While UCT has mostly been able to deliver on time, the industry remains challenged with shortages in the supply chain. We are working quickly and constructively with our customers to alleviate bottlenecks by accelerating new supplier qualifications, prioritizing shipments, and collaborating to forecast trends that better support future demand. Engagement with our customers has become much more in-depth and cohesive, and it's one of the many reasons why we continue to gain market share. Our investment in strategic capacity expansion ensures our assets are aligned to changing market and manufacturing conditions and will support sustainable near and long-term demand. In addition to our new facility in Malaysia, we are also expanding and realigning our product manufacturing footprint in the U.S., Europe, and Israel, to ramp production and increase flexibility to ensure business continuity. Likewise, our services division is investing to support increased wafer starts and the need for consistent, high utilization for some of the world's largest chip makers. Our ability to deliver quality products and services on time anywhere in the world is why our customers choose to engage with us on their most challenging projects. Our outlook for 2023 remains favorable. While there are signs of potential weakness in PC, low-end smartphones, and some consumer electronics, those are being offset by strong demand in the high-performance computing, IoT, robotics, and automotive sectors. Today, the chip industry powers most aspects of our economy, so it's far less vulnerable to a single retail end market, and so is UCT. Our strategy, to diversify well beyond gas panels over the past several years, has positioned today's UCT to be more resilient to periodic weakness in any one specific sector. Whether the emphasis is on memory, boundary, logic, analog, leading edge or trailing edge, domestic or international, UCT plays an integral role in all of these segments. We indirectly touch every chip that goes into every phone, gaming device, laptop, tablet, server, smart car, and more. which is why we expect to outperform the overall WFE market. I would like to thank our highly capable global team for their hard work and commitment, ensuring UCP remains the partner of choice for our customers. We are very optimistic about the future and continue to invest in our products and services so that we can play a bigger and broader role in the industry alongside our customers. And with that, I'll turn the call over to Sherry for a review of our financial results. Sherry?