Ultra Clean Holdings Inc. (NASDAQ:UCTT) Q2 2020 Earnings Conference Call - Final Transcript

Jul 29, 2020 • 04:00 am ET

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Ultra Clean Holdings Inc. (NASDAQ:UCTT) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon and welcome to the Ultra Clean Second Quarter Conference Call and Webcast. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Rhonda Bennetto, Investor Relations. Please go ahead.

Executive
Rhonda Bennetto

Thank you, operator. Good afternoon everyone and thank you for joining us. With me today are Jim Scholhamer, Chief Executive Officer; and Sheri Savage, Chief Financial Officer. Jim will begin with some prepared remarks about the business and Sheri 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 factor disclosure 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?

Executive
Jim Scholhamer

Thank you, Rhonda and good afternoon, everyone. Thank you for joining us. I want to start this call today by sincerely thanking everyone of our 4,700 employees around the world for their commitment, flexibility and cooperation during this unprecedented situation. The relentless drive to succeed of our entire workforce resulted in record revenues and profitability in the second quarter, clearly demonstrating the strength and resiliency of our business model. Ongoing demand, driven primarily by foundry and logic resulted in revenue from our Products businesses exceeding our expectations. The recovery in wafer starts drove our service business revenue to new quarterly highs. These higher volumes coupled with a focus on operational efficiencies and a favorable product mix spurred profitability to levels not previously seen.

The pandemic has prompted companies everywhere to realign how they do business and UCT has risen to the challenge across the board. I continue to be impressed by the ingenuity and innovative ways everyone pulled together to ensure business continuity while working safely and productively. Our business continuity team has done an extraordinary job and remains in a heightened state of readiness as some countries grapple with the second wave of the virus and others struggle to contain the first wave. Every safety protocol outlined in our BCP playbook remains in place at each site. All UCT facilities remain operational and we are grateful that we have had no known employee-to-employee transfers of the virus. We remain thankful to everyone on the front-lines fighting this pandemic and look forward to a day when the virus is contained.

We are working closely with our customers to meet their needs and we'll continue to leverage our global footprint and optimize our supply chain to ensure our customer success. The supply chain is a