Ultra Clean, a leading supplier of subsystems and components for the semiconductor industry, has announced that it expects a larger loss and lower adjusted earnings for the third quarter. This revision comes as a result of an unexpected decline in business volume for its services segment.
Previously, Ultra Clean had projected a loss of between 19 cents and a four-cent gain per share for the third quarter. However, the company now anticipates a loss of 32 cents per share. Additionally, adjusted earnings, which exclude one-time items, are now forecasted to be four cents per share, down from the previous outlook of eight to 28 cents per share.
Factors at Play
The decline in Ultra Clean's services business, combined with reduced efficiencies and an unfavorable mix of product revenue and geographic profit, has contributed to the lower-than-anticipated projections. These factors have also impacted the company's income tax rate.
Despite the revised expectations for earnings, Ultra Clean still expects its revenue to fall within the range of $405 million to $455 million. The company believes that its revenue will be at or slightly above the midpoint of this range.
Release of Results
Ultra Clean intends to release its third-quarter results after the market closes on Wednesday. This anticipated announcement will provide a clearer picture of the financial performance during this period.