Ultra Clean Holdings, Inc.

Good day and welcome to the Ultra Clean third 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 your touchtone phone. And 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 Ms. Rhonda Bonetto, Investor Relations. Please go ahead, ma'am.

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?

Thanks, Rhonda, and thank you all for joining us today. I'm going to start with a brief review of our third quarter results and provide some insight into how we feel the rest of the year will play out. I'll also share our thoughts regarding 2023 and beyond and provide some additional commentary on our capital allocation strategy. After that, I'll turn the call over to Sherry for a financial review, and we will open up the call for questions. Solid operational execution and modest supply chain improvements contributed to a strong third quarter. Although the supply chain continues to present challenges, enhanced collaboration amongst our global teams, our suppliers, and our customers has alleviated most constraints, and we expect to see incremental improvements in the coming quarters. While some customers continue to prioritize and reconfigure their delivery schedules, we have seen only limited cancellations relating to the new export regulation for U.S. semiconductor technology sold in China. If we use the midpoint of our fourth quarter guidance, we expect full-year revenue to be up roughly 16% over 2021. After several years of unprecedented growth, we are anticipating a decrease in demand fundamentals and believe there will be a pullback as chip makers and their customers draw down inventory and realign their investment plans. UCT is much larger and more diversified now than ever before, and our operating model enables us to quickly flex and buffer the effects of a broader industry pullback. With 30-plus years' experience adjusting to these ups and downs, we are confident in our ability to perform well in a broad range of market scenarios. Long term, we remain very bullish on the industry as a whole. Demand for products powered by semiconductors is accelerating, driven by multiple and end applications from smart electric cars and mobile devices to communication infrastructure, AI, and IoT devices. UCT has taken deliberate, strategic steps to ensure that we are well-positioned to outperform as these new applications shift to volume manufacturing. The expansion of our capabilities with resources strategically close to our customers, has deepened our collaboration and will enable us to accelerate production with greater operational efficiency. Our new Malaysia facility is a great example of how we have become more globally diverse, taking our operations to a whole new level in terms of scale, efficiency, supply chain infrastructure, and automation. Our Malaysia site is ramping to schedule and we are seeing strong engagement as customers look to secure a long-term outsource manufacturing partner. This site has become another key driver to our share gains and as geopolitical events unfold, it will become even more important as we continue to outgrow the industry. The extended outlook for semiconductors remains robust and UCT is ideally positioned to capitalize on future opportunities. In addition to prioritizing investments supporting our growth strategy, we also recognize our commitment to deploy capital that drives the greatest return for our shareholders. Given our strong cash flow, we believe now is the time to initiate a share repurchase program. This new program will enable us to act opportunistically when conditions are right while maintaining a disciplined approach to capital allocation, including debt repayment, while maintaining our healthy balance sheet. Our conviction in our growth strategy and business model has never been stronger, and this program provides another avenue to return meaningful value to our investors. In summary, we see sustainable strength in our markets as large, powerful trends drive a fundamental expansion in the demand for semiconductors. In the short term, We will focus on implementing operational efficiencies and optimizing our global footprint. Longer term, we expect to capture an even larger share of our addressable market. And with that, I'll turn the call over to Sherry for a review of our financial results. Sherry?