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ACM Research (NASDAQ: ACMR), a wafer processing solutions provider, reported strong Q1 2025 financial results with revenue of $172.3 million, up 13.2% year-over-year. The company achieved a GAAP net income of $20.4 million ($0.30 per diluted share) and maintained its 2025 revenue guidance of $850-950 million.

Key achievements include qualification of their high-temperature SPM tool by a major Chinese logic customer, customer acceptance for backside/bevel etch tool from a U.S. customer, and winning the 2025 3D InCites Technology Enablement Award. The company reported gross margin of 47.9% and ended the quarter with $498.4 million in cash and equivalents.

[ "Revenue increased 13.2% year-over-year to $172.3 million", "Strong cash position of $498.4 million, up from $441.9 million in December 2024", "Gross margin of 47.9% exceeded long-term target range of 42-48%", "Net income grew to $20.4 million from $17.4 million year-over-year", "Strategic wins including SPM tool qualification in China and U.S. customer acceptance" ]

Positive

• None.

Negative

• Total shipments decreased to $157 million from $245 million in Q1 2024
• Gross margin declined from 52.0% to 47.9% year-over-year
• Non-GAAP operating income decreased 10.6% year-over-year
• Non-GAAP diluted EPS decreased to $0.46 from $0.52 year-over-year

Insights

Semiconductor Equipment Analyst

ACM Research posted solid Q1 with 13.2% revenue growth and maintained 2025 guidance despite gross margin pressure from product mix shift.

ACM Research's Q1 results demonstrate steady momentum with $172.3 million in revenue, representing 13.2% year-over-year growth. The 47.9% gross margin, while down from 52.0% a year ago, still exceeded the company's long-term target range of 42-48% - indicating healthy pricing power despite competitive pressures in the semiconductor equipment market.

The company achieved several critical technical milestones that strengthen its competitive positioning. The qualification of their high-temperature SPM (Sulfuric Peroxide Mixture) tool by a leading logic customer in China is particularly significant as it expands ACM's addressable market in front-end wafer processing for advanced nodes. Similarly, customer acceptance of their backside/bevel etch tool from a U.S. customer signals increasing traction outside the Chinese market.

The recognition of their Ultra ECP ap-p tool with the 3D InCites Technology Enablement Award validates ACM's innovation in panel-level packaging - a critical growth area as the industry moves toward advanced packaging solutions for AI chipsets. Their horizontal plating approach appears to be a genuine technological differentiator in this emerging space.

While operating margins contracted (non-GAAP operating margin fell from 26.2% to 20.7%), the maintenance of full-year revenue guidance of $850-950 million suggests management confidence in their growth trajectory. The $498.4 million cash position (up from $441.9 million at year-end) provides ample resources for continued R&D investment, particularly in their Oregon facility which will serve global customers.

The key challenge ahead lies in managing the product mix shift. The decline in both GAAP and non-GAAP gross margins signals potential pricing pressure or a transition toward lower-margin product lines. Investors should monitor whether this is a temporary phenomenon or indicative of longer-term competitive dynamics in the semiconductor equipment space.

FREMONT, Calif., May 08, 2025 (GLOBE NEWSWIRE) -- ACM Research, Inc. (“ACM”) (NASDAQ: ACMR), a leading supplier of wafer processing solutions for semiconductor and advanced packaging applications, today reported financial results for its first quarter ended March 31, 2025.

“Our first quarter results mark a good start to 2025. We delivered 13% year-over-year revenue growth, solid profitability, and positive cash flow from operations,” said Dr. David Wang, President and Chief Executive Officer of ACM. “We achieved several strategic milestones: including the qualification of our high-temperature SPM tool by a leading logic customer in China, customer acceptance for our backside/bevel etch tool from a U.S. customer, and we received the 2025 3D InCites Technology Enablement Award for our proprietary Ultra ECP ap-p tool, which we believe is the world’s first to utilize horizontal plating for panel applications. These achievements highlight ACM’s technology leadership in both front-end processing and advanced packaging applications, which we believe will allow us to play a key role as the global industry demands innovation to advance the ever-evolving semiconductor requirements for AI.”

“For 2025, we expect incremental revenue contribution from Tahoe, SPM, and furnace tools; and progress in customer evaluations of Track, PECVD, and panel-level packaging platforms. We believe ACM’s focused effort on developing world-class tools across our customer base will also support our efforts for additional major customer wins in global markets. We are also investing in our Oregon facility to serve as a base for customer evaluations, technology development and initial production for our global customers.”

	Three Months Ended March 31,
	GAAP								Non-GAAP(1)
	2025				2024				2025				2024
	(dollars in thousands, except EPS)
Revenue	$	172,347			$	152,191			$	172,347			$	152,191
Gross margin		47.9%				52.0%				48.2%				52.5%
Income from operations	$	25,777			$	25,232			$	35,594			$	39,801
Net income attributable to ACM Research, Inc.	$	20,380			$	17,433			$	31,279			$	34,597
Basic EPS	$	0.32			$	0.28			$	0.49			$	0.56
Diluted EPS	$	0.30			$	0.26			$	0.46			$	0.52

^{(1)   Reconciliations to U.S. generally accepted accounting principles (“GAAP”) financial measures from non-GAAP financial measures are presented below under “Reconciliation of GAAP to Non-GAAP Financial Measures.” Non-GAAP financial measures exclude stock-based compensation and, with respect to net income (loss) attributable to ACM Research, Inc. and basic and diluted earnings per share, also exclude unrealized gain (loss) on short-term investments.}

Outlook

ACM is maintaining its revenue guidance range of $850 million to $950 million for fiscal year 2025. This expectation is based on ACM management’s current assessment of the continuing impact from international trade policy, together with various expected spending scenarios of key customers, supply chain constraints, and the timing of acceptances for first tools under evaluation in the field, among other factors.

Operating Highlights and Recent Announcements

• Shipments. Total shipments in the first quarter of 2025 were $157 million, compared to $245 million for the first quarter of 2024. This decrease is due in part to customer pull-ins in the fourth quarter of 2024, which contributed to stronger total shipments for that period. For reference, combined total shipments for the fourth quarter of 2024 and the first quarter of 2025 grew by 8.9% versus the prior year periods. We anticipate a return to year-on-year growth in total shipments for the second quarter of 2025. Total shipments include deliveries for revenue in the quarter and deliveries of first tool systems awaiting customer acceptance for potential revenue in future quarters.
• Qualification of High-Temp SPM Tool in China. ACM’s single-wafer high-temperature SPM tool was qualified by a key logic device manufacturer in mainland China. Featuring a proprietary nozzle that reduces acid mist and maintenance needs, the tool enhances particle control and system uptime. It supports wet etching and wafer cleaning for technology nodes at 28nm and below. ACM has now delivered SPM tools to 13 customers.
• Recognized for Innovation in High-Volume Fan-Out Panel-Level Packaging Solutions. ACM won the 2025 3D InCites Technology Enablement Award for its Ultra ECP ap-p tool, the first commercially available high-volume copper deposition system for the large panel market. This innovative system supports advanced panel sizes and delivers high uniformity through ACM’s proprietary horizontal plating approach, which we expect to help address integration challenges in advanced semiconductor packaging.
• Appointment of New Board Member. ACM appointed Charlie Pappis to its Board of Directors, effective March 15, 2025.

First Quarter 2025 Financial Summary

Unless otherwise noted, the following figures refer to the first quarter of 2025 and comparisons are with the first quarter of 2024.

• Revenue was $172.3 million, up 13.2%, reflecting higher sales of single wafer cleaning, Tahoe and semi-critical cleaning equipment and ECP (front-end and packaging), furnace and other technologies.
• Gross margin was 47.9% versus 52.0%. Non-GAAP gross margin, which excludes stock-based compensation, was 48.2% versus 52.5%. Gross margin exceeded ACM’s previously disclosed long-term business model target range of 42% to 48%. ACM expects gross margin to vary from period to period due to a variety of factors, such as product mix, currency impacts and sales volume.
• Operating expenses were $56.8 million, up 5.4%. Operating expenses as a percentage of revenue decreased to 32.9% from 35.4%. Non-GAAP operating expenses, which exclude the effect of stock-based compensation, were $47.5 million, up 18.4%. Non-GAAP operating expenses as a percentage of revenue increased to 27.6% from 26.3%.
• Operating income was $25.8 million, up 2.2%. Operating margin was 15.0% compared to 16.6%. Non-GAAP operating income, which excludes the effect of stock-based compensation, was $35.6 million, a decrease of 10.6%. Non-GAAP operating margin, which excludes stock-based compensation, was 20.7% compared to 26.2%.
• Unrealized loss on short-term investments was $1.1 million, compared to $2.6 million. Unrealized loss reflects the change in market value of the investments by ACM’s principal operating subsidiary, ACM Research (Shanghai), Inc. The value is marked-to-market quarterly and is excluded in the non-GAAP financial metrics.
• Income tax expense was $2.2 million, compared to $4.4 million.
• Net income attributable to ACM Research, Inc. was $20.4 million, compared to $17.4 million. Non-GAAP net income attributable to ACM Research, Inc., which excludes the effect of stock-based compensation and unrealized loss on short-term investments, was $31.3 million, compared to $34.6 million.
• Net income per diluted share attributable to ACM Research, Inc. was $0.30, compared to $0.26. Non-GAAP net income per diluted share, which excludes the effect of stock-based compensation and unrealized loss on short-term investments, was $0.46, compared to $0.52.
• Cash and cash equivalents, plus restricted cash and short-term and long-term time deposits were $498.4 million at March 31, 2025, compared to $441.9 million at December 31, 2024.
  

Conference Call Details

A conference call to discuss results will be held on Thursday, May 8, 2025, at 8:00 a.m. Eastern Time (8:00 p.m. China Time). To join the conference call via telephone, participants must use the following link to complete an online registration process. Upon registering, each participant will receive email instructions to access the conference call, including dial-in information and a PIN number allowing access to the conference call. This pre-registration process is designed by the operator to reduce delays due to operator congestion when accessing the live call.

Online Registration: https://register-conf.media-server.com/register/BI300a7bc629bd43d98fcb1268d481b156

Participants who have not pre-registered may join the webcast by accessing the link at ir.acmr.com/news-events/events.

A live and archived webcast will be available on the Investors section of the ACM website at www.acmr.com.

Use of Non-GAAP Financial Measures

ACM presents non-GAAP gross margin, operating expenses, operating income, net income attributable to ACM Research, Inc. and basic and diluted earnings per share as supplemental measures to GAAP financial measures regarding ACM’s operational performance. These supplemental measures exclude the impact of stock-based compensation, which ACM does not believe is indicative of its core operating results. In addition, non-GAAP net income attributable to ACM Research, Inc. and basic and diluted earnings per share exclude the effect of stock-based compensation and unrealized gain (loss) on short-term investments, which ACM also believes are not indicative of its core operating results. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is provided below under “Reconciliation of GAAP to non-GAAP Financial Measures.”

ACM believes these non-GAAP financial measures are useful to investors in assessing its operating performance. ACM uses these financial measures internally to evaluate its operating performance and for planning and forecasting of future periods. Financial analysts may focus on and publish both historical results and future projections based on the non-GAAP financial measures. ACM also believes it is in the best interests of investors for ACM to provide this non-GAAP information.

While ACM believes these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures may not be reported by competitors, and they may not be directly comparable to similarly titled measures of other companies due to differences in calculation methodologies. The non-GAAP financial measures are not an alternative to GAAP information and are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures. They should be used only as a supplement to GAAP information and should be considered only in conjunction with ACM’s consolidated financial statements prepared in accordance with GAAP.

Forward-Looking Statements

Certain statements contained in this press release are not historical facts and may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “plans,” “expects,” “believes,” “anticipates,” “designed,” and similar words are intended to identify forward-looking statements. Forward-looking statements are based on ACM management’s current expectations and beliefs, and involve a number of risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from those stated or implied by the forward-looking statements. A description of certain of these risks, uncertainties and other matters can be found in filings ACM makes with the U.S. Securities and Exchange Commission, all of which are available at www.sec.gov. Because forward-looking statements involve risks and uncertainties, actual results and events may differ materially from results and events currently expected by ACM. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. ACM undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in its expectations with regard to these forward-looking statements or the occurrence of unanticipated events.

About ACM Research, Inc.

ACM develops, manufactures and sells semiconductor process equipment spanning cleaning, electroplating, stress-free polishing, vertical furnace processes, track, PECVD, and wafer- and panel-level packaging tools, enabling advanced and semi-critical semiconductor device manufacturing. ACM is committed to delivering customized, high-performance, cost-effective process solutions that semiconductor manufacturers can use in numerous manufacturing steps to improve productivity and product yield. For more information, visit www.acmr.com.

© ACM Research, Inc. ULTRA ECP ap and the ACM Research logo are trademarks of ACM Research, Inc. For convenience, these trademarks appear in this press release without ™ symbols, but that practice does not mean that ACM will not assert, to the fullest extent under applicable law, its rights to the trademarks.

For investor and media inquiries, please contact:

In the United States:	The Blueshirt Group
	Steven C. Pelayo, CFA
	(360)808-5154
	steven@blueshirtgroup.co
In China:	The Blueshirt Group Asia
	Gary Dvorchak, CFA
	+86 (138) 1079-1480
	gary@blueshirtgroup.co

ACM RESEARCH, INC.
Condensed Consolidated Balance Sheets
	March 31, 2025				December 31, 2024
	(Unaudited)
	(In thousands)
Assets
Current assets:
Cash and cash equivalents	$	457,240			$	407,445
Restricted cash		10,586				3,865
Short-term time deposits		17,202				17,277
Short-term investment		18,319				19,373
Accounts receivable, net		387,849				387,045
Other receivables		35,050				41,859
Inventories, net		609,567				597,984
Advances to related party		1,384				1,024
Prepaid expenses and other current assets		10,677				7,507
Total current assets		1,547,874				1,483,379
Property, plant and equipment, net		277,065				269,272
Operating lease right-of-use assets, net		17,747				14,038
Intangible assets, net		2,997				3,461
Long-term time deposits		13,393				13,275
Deferred tax assets		16,457				14,781
Long-term investments		54,814				37,063
Other long-term assets		3,421				20,452
Total assets	$	1,933,768			$	1,855,721
Liabilities and Equity
Current liabilities:
Short-term borrowings	$	24,951			$	32,814
Current portion of long-term borrowings		67,935				44,472
Related party accounts payable		19,285				16,133
Accounts payable		116,441				139,294
Advances from customers		241,456				243,949
Deferred revenue		10,781				8,537
Income taxes payable		6,168				12,779
FIN-48 payable		19,483				19,466
Other payables and accrued expenses		118,814				121,657
Current portion of operating lease liability		3,564				2,132
Total current liabilities		628,878				641,233
Long-term borrowings		134,540				105,525
Long-term operating lease liability		6,149				3,840
Other long-term liabilities		8,848				9,217
Total liabilities		778,415				759,815
Commitments and contingencies
Equity:
Stockholders’ equity:
Class A Common stock		6				6
Class B Common stock		1				1
Additional paid-in capital		700,191				677,476
Retained earnings		280,380				260,000
Statutory surplus reserve		30,514				30,514
Accumulated other comprehensive loss		(61,946	)			(63,372	)
Total ACM Research, Inc. stockholders’ equity		949,146				904,625
Non-controlling interests		206,207				191,281
Total equity		1,155,353				1,095,906
Total liabilities and equity	$	1,933,768			$	1,855,721

ACM RESEARCH, INC.
Condensed Consolidated Statements of Operations and Comprehensive Income
	Three Months Ended March 31,
	2025				2024
	(Unaudited)
	(In thousands, except share and per share data)
Revenue	$	172,347			$	152,191
Cost of revenue		89,797				73,070
Gross profit		82,550				79,121
Operating expenses:
Sales and marketing		16,343				14,173
Research and development		27,503				23,918
General and administrative		12,927				15,798
Total operating expenses		56,773				53,889
Income from operations		25,777				25,232
Interest income		3,339				1,774
Interest expense		(1,558	)			(783	)
Realized gain from sale of short-term investments		-				273
Unrealized loss on short-term investments		(1,082	)			(2,595	)
Other (expense) income, net		(262	)			3,080
Income (loss) from equity method investments		952				(520	)
Income before income taxes		27,166				26,461
Income tax expense		(2,153	)			(4,369	)
Net income		25,013				22,092
Less: Net income attributable to non-controlling interests		4,633				4,659
Net income attributable to ACM Research, Inc.	$	20,380			$	17,433
Comprehensive income (loss):
Net income		25,013				22,092
Foreign currency translation adjustment, net of tax of nil		1,750				(6,829	)
Comprehensive Income		26,763				15,263
Less: Comprehensive income attributable to non-controlling interests		4,957				3,406
Comprehensive income attributable to ACM Research, Inc.	$	21,806			$	11,857
Net income attributable to ACM Research, Inc. per common share:
Basic	$	0.32			$	0.28
Diluted	$	0.30			$	0.26
Weighted average common shares outstanding used in computing per share amounts:
Basic		63,267,834				61,367,184
Diluted		66,952,774				66,242,321

ACM RESEARCH, INC.
Total Revenue by Product Category and by Region
	Three Months Ended March 31,
	2025		2024
	(Unaudited)
	($ in thousands)
Single wafer cleaning, Tahoe and semi-critical cleaning equipment	$	129,569	$	109,470
ECP (front-end and packaging), furnace and other technologies		27,630		25,800
Advanced packaging (excluding ECP), services & spares		15,148		16,921
Total Revenue by Product Category	$	172,347	$	152,191
	Three Months Ended March 31,
	2025		2024
Mainland China	$	169,053	$	152,135
Other Regions		3,294		56
Total Revenue by Region	$	172,347	$	152,191

ACM RESEARCH, INC.

Reconciliation of GAAP to Non-GAAP Financial Measures

As described under “Use of Non-GAAP Financial Measures” above, ACM presents non-GAAP gross margin, operating expenses, operating income, net income attributable to ACM Research, Inc., and basic and diluted earnings per share as supplemental measures to GAAP financial measures, each of which excludes stock-based compensation (“SBC”) from the equivalent GAAP financial line items. In addition, non-GAAP net income attributable to ACM Research, Inc., and basic and diluted earnings per share exclude unrealized gain (loss) on short-term investments. The following tables reconcile gross margin, operating expenses, operating income, net income attributable to ACM Research, Inc., and basic and diluted earnings per share to the related non-GAAP financial measures:

	Three Months Ended March 31,
	2025												2024
	Actual			SBC			Other non-operating adjustments			Adjusted			Actual			SBC			Other non-operating adjustments			Adjusted
	(GAAP)									(Non-GAAP)			(GAAP)									(Non-GAAP)
	(In thousands)
Revenue	$	172,347		$	-		$	-		$	172,347		$	152,191		$	-		$	-		$	152,191
Cost of revenue		(89,797	)		(529	)		-			(89,268	)		(73,070	)		(781	)		-			(72,289	)
Gross profit		82,550			(529	)		-			83,079			79,121			(781	)		-			79,902
Gross margin		47.9%			0.3%			-			48.2%			52.0%			0.5%			-			52.5%
Operating expenses:
Sales and marketing		(16,343	)		(2,157	)		-			(14,186	)		(14,173	)		(3,027	)		-			(11,146	)
Research and development		(27,503	)		(2,775	)		-			(24,728	)		(23,918	)		(4,503	)		-			(19,415	)
General and administrative		(12,927	)		(4,356	)		-			(8,571	)		(15,798	)		(6,258	)		-			(9,540	)
Total operating expenses		(56,773	)		(9,288	)		-			(47,485	)		(53,889	)		(13,788	)		-			(40,101	)
Income (loss) from operations	$	25,777		$	(9,817	)	$	-		$	35,594		$	25,232		$	(14,569	)	$	-		$	39,801
Unrealized loss on short-term investments		(1,082	)		-			(1,082	)		-			(2,595	)		-			(2,595	)		-
Net income (loss) attributable to ACM Research, Inc.	$	20,380		$	(9,817	)	$	(1,082	)	$	31,279		$	17,433		$	(14,569	)	$	(2,595	)	$	34,597
Basic EPS	$	0.32								$	0.49		$	0.28								$	0.56
Diluted EPS	$	0.30								$	0.46		$	0.26								$	0.52

FAQ

What were ACMR's Q1 2025 earnings results?

ACM Research reported Q1 2025 revenue of $172.3 million (up 13.2% YoY), with GAAP net income of $20.4 million ($0.30 per diluted share) and gross margin of 47.9%.

What is ACM Research's revenue guidance for 2025?

ACM Research maintained its revenue guidance range of $850 million to $950 million for fiscal year 2025.

How much cash does ACMR have as of March 2025?

As of March 31, 2025, ACM Research had $498.4 million in cash, cash equivalents, restricted cash, and short-term and long-term time deposits.

What major achievements did ACMR announce in Q1 2025?

ACM qualified its high-temperature SPM tool with a major Chinese logic manufacturer, received U.S. customer acceptance for its backside/bevel etch tool, and won the 2025 3D InCites Technology Enablement Award.

How did ACMR's shipments perform in Q1 2025?

Total shipments were $157 million, down from $245 million in Q1 2024, partly due to customer pull-ins in Q4 2024. The company expects return to year-on-year growth in Q2 2025.