UCT End Market Update slide image

UCT End Market Update

Reconciliation: GAAP to Non-GAAP Earnings Per Diluted Share FY'17 FY'18 FY'19 FY'20 Q1'21 Q2'21 Q3'21 Reported GAAP net income (loss) $2.19 $0.94 $(0.24) $1.89 1. Amortization of intangible assets related to the Company's acquisitions of AIT, Thermal, FDS, QGT and DMS $0.60 $0.39 $0.70 2. Represents severance, retention and costs related to facility closures Amortization of intangible assets (1) $0.16 $0.25 $0.50 $0.48 $0.12 $0.22 $0.21 3. Represents compensation expense for stock granted to employees and directors Restructuring charges (2) $0.12 $0.42 $0.11 $0.00 $(0.00) $0.02 4. Represents costs related to acquisitions Stock based compensation expense (3) $0.33 $0.32 $0.10 $0.09 $0.10 5. Represents inventory adjustments related to end-of-life products Acquisition related costs*(4) $0.26 $0.10 $0.02 $0.03 $0.18 $0.00 6. One-time product transition payment $0.01 7. Represents the loss on disposal of the Company's 3D printing operations in Singapore Inventory adjustments (5) Product transition fees (6) Disposal of business unit (7) Fair value adjustments (8) $0.02 $0.03 $0.19 $0.19 $0.28 $0.19 $0.05 Depreciation adjustments (9) $(0.01) Gain on the sale of property (10) $(0.03) Insurance proceeds (11) $(0.18) Income tax effect of non-GAAP adjustments (12) $(0.02) $(0.12) $(0.36) $(0.20) $(0.06) $(0.12) $(0.06) Income tax effect of valuation allowance (13) $0.01 $0.16 $0.23 $0.02 $0.03 $0.04 $0.04 Non-GAAP net income $2.34 $1.66 $1.16 $2.80 $0.92 $0.99 $1.07 Weighted Avg. number of diluted shares (in K) 34,303 38,919 40,027 41,074 41,639 44,253 45,404 UCT * Refer to 10k 8. Fair value adjustments related to contingent consideration, purchase obligation, DMS' sold inventories, forward hedge contracts 9. Depreciation adjustments related to QGT's fixed assets 10. Represents gain realized on the sale of land in South Korea 11. Insurance proceeds pertaining to the Cinos fire in 2018 12. Tax effect of items (1) through (11) above based on the non-GAAP tax rate 13. The Company's GAAP tax expense is generally higher than the Company's non- GAAP tax expense, primarily due to losses in the U.S. with full federal and state valuation allowances. The Company's non- GAAP tax rate and resulting non-GAAP tax expense considers the tax implications as if there was no federal or state valuation allowance position in effect 24
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