The following is a summary of the Ichor Holdings, Ltd. (ICHR) Q2 2024 Earnings Call Transcript:
Financial Performance:
Q2 revenue reached $203 million, nearly top of forecast with a 10% year-over-year increase.
Gross margin improved sequentially by 80 basis points to 13%.
Operating income showed an 85% improvement compared to the first quarter.
The Q2 net income per share was $0.05.
Free cash flow was $14.6 million, with a reduction in net debt coverage ratio to 1.8 times.
Business Progress:
Ichor is seeing recovery signs in the wafer fab equipment market.
Increased investments in proprietary products like the next generation gas panel which are showing positive profitability impact.
Continuing gains in aerospace, defense, and commercial markets through IMG.
Anticipated strong Q4 performance and reinforcing infrastructure to support growth in 2025.
Opportunities:
Positive outlook on 2025 with expected strong market in deposition, etch, EUV, and non-semi businesses.
Potential revenue growth opportunities from expanding high-bandwidth memory DRAM.
Silicon carbide gas panel market expected to recover and contribute to revenue as device manufacturers increase capacity.
Risks:
Slow initial recovery in 3D NAND investments could pose risks to anticipated revenue acceleration in 2025.
More details: Ichor Holdings IR
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