4. Ultra Clean Holdings is a developer and supplier of critical subsystems for the semiconductor capital equipment, flat panel, medical, energy, and research industries. The company offers an integrated outsourced solution for gas delivery systems and other subassemblies, improved design-to-delivery cycle times, component neutral design and manufacturing and component testing capabilities.
Net revenue for 2010 fourth quarter rose 65.3% year-over-year to $120.3 million, reflecting a recovery in semiconductor equipment demand since the overall slowdown in the industry. Subsequently, net income grew 56.2% to $3.9 million or 17 cents per share from $2.5 million or 11 cents per share in the year-ago quarter.
For full year ended Dec. 2010, revenue surged 177.4% to $443.1 million from $159.8 million in 2009. Moreover, the company swung to net income of $20.1 million or 87 cents per share as opposed to a loss of $20 million or 94 cents per share a year ago. Cash and cash equivalents stood at $34.6 million, up 30% year-over-year, while current ratio improved to 2.68 from 2.16.Going forward, the company expects revenue in the range of $119 million to $124 million, with earnings per share in the range of $0.19 to $0.23 during the first quarter of 2011. Revenue and earnings represent year-over-year growth of 21%-26% and 12%-35%, respectively. Of the four analysts covering the stock, 25% recommend a buy, while 50% recommend a hold. On average, analysts estimate 41.1% upside to $14.33 in value from current levels. The stock gained 28.4% during the past one year and is currently trading at a P/E of 11.5