Press release
Ichor Announces Preliminary Results for the Third Quarter of 2021
Revenue Growth Expectations Impacted by Increased Restrictive Measures Imposed in Malaysian State of Selangor during the Third Quarter FREMONT,
About this update from Ichor Holdings
[{"type":"text","content":"\nRevenue Growth Expectations Impacted by Increased Restrictive Measures Imposed in Malaysian State of Selangor during the Third Quarter\n\n FREMONT, Calif.--(BUSINESS WIRE)--\nIchor Holdings, Ltd. (NASDAQ: ICHR), a leader in the design, engineering, and manufacturing of critical fluid delivery subsystems for semiconductor capital equipment, today announced preliminary third quarter 2021 financial results.\n\nFor the third quarter of 2021, Ichor expects to report:\n\n\nRevenue of approximately $263 million;\n\n\nGross margin of 16.6% to 16.7% on both a GAAP and non‑GAAP basis; and\n\n\nDiluted earnings per share of $0.63 to $0.65 on a GAAP basis and $0.80 to $0.82 on a non‑GAAP basis.\n\n\nCommenting on the announcement, Jeffrey Andreson, chief executive officer, said, “As we discussed during our August conference call, in response to a sharp increase in COVID‑19 cases, in June 2021 the Malaysian government instituted an Enhanced Movement Control Order (EMCO), which impacted our Selangor weldment operations (located near Kuala Lumpur) through both on-site employee restrictions as well as a complete shutdown of all manufacturing in the region during early July. The facility shut down requirement impacted businesses in the state of Selangor but did not impact business located in most areas of the country, such as Penang. While we were able to reopen our factory in mid-July, once the government confirmed that Ichor was an essential business, we remained under the headcount limitations until the third week of August. With 50% of our weldment capacity located in Selangor, our overall output in Malaysia was reduced by 40% in the third quarter due to the EMCO restrictions. In alignment with our global manufacturing strategy, we were able to increase supply in our other sites as well as through other partners in our supply chain to offset a large portion of the reduced capacity; however, we were not able to completely offset the impact on our integration sites for fluid delivery subsystems and as a result our revenues for the quarter came in below our guidance range.” Mr. Andreson concluded, “There has been no change in demand for our products as we look to the fourth quarter and into 2022, and today our Malaysia operation is running at full capacity. We continue to see strengthening demand and expect that the fourth quarter will set a ...