ACM Research Eyes $3 Billion Revenue, Raises 2024 Outlook
ACM Research, a leading provider of wafer processing solutions for semiconductor manufacturing, has announced impressive Q2 2024 results and a significant revenue target. The company reported a 40% year-over-year increase in revenue, reaching $202.5 million. Shipments increased by 32% to $203 million, and both gross and operating margins exceeded targets.
Key Takeaways
- Q2 Revenue Surge: ACM Research saw a 40% year-over-year increase in Q2 revenue, hitting $202.5 million.
- Rising Shipments: Shipments grew by 32% to $203 million.
- 2024 Outlook Raised: The company raised its 2024 revenue outlook to between $695 million and $735 million.
- Long-Term Goals: A long-term revenue target of $3 billion has been set, focusing on expansion in China and other markets.
- Product and Facility Expansion: New product launches and facility expansions are expected to drive future growth.
Company Outlook
ACM Research is targeting a long-term revenue goal of $3 billion, with half of this revenue coming from China. The company has increased its 2024 revenue forecast, showing an anticipated 28% growth year-over-year. To support this growth, ACM Research is expanding its facilities in China, Korea, and Oregon. This expansion will enhance their R&D capabilities and production capacities.
Bearish Highlights
- Export Control Concerns: There are concerns regarding new export control regulations impacting business operations. ACM Research is monitoring the situation and securing backup supply chain options.
Bullish Highlights
- High Gross Margins: The company’s gross margin exceeded the target range and is expected to remain high throughout the year.
- Market Share in China: Market share gains in China are attributed to new product cycles and increased localization.
- US Market Growth: ACM Research received its first coater/developer order from a US advanced packaging house, indicating growth potential in the US market.
Misses
There were no specific misses reported during the earnings call.
Q&A Highlights
During the Q&A session, ACM Research addressed questions about shipment and revenue growth, capital allocation, and dividend policy. The company reassured stakeholders that they would comply with any new legal regulations and have contingency plans for their supply chain. Updates were also provided on the private offering in Shanghai, with approval expected by mid-next year.
ACM Research is positioning itself for sustained growth through product innovation and market expansion. The establishment of a new R&D facility in Oregon and strategic moves to enhance presence in key markets underline the company’s commitment to maintaining its competitive edge in the semiconductor industry. Investors will closely watch as ACM Research navigates regulatory challenges and executes its growth strategy in a dynamic global market.
