ACM Research Inc (NASDAQ:ACMR) posted financial report for its fourth quarter closed December 31, 2017. Revenue in Q4 2017 surged 19.9% from the same quarter in 2016. The jump was due to increased sales of single-wafer cleaning equipment as well as from the initial sale of copper plating equipment. For FY2017, revenue came at $36.5 million, registering a jump of 33.4% from FY2016, due mainly to a higher volume of single-wafer cleaning equipment shipments.
Dr. David Wang, the CEO of ACM Research, expressed that they recorded robust fourth quarter top-line report, registering a strong 2017 for company. They achieved their 2017 financial objectives with revenue growing 33%. Their performance this year was an outcome of differentiated technology, strong execution and continued expansion of the client base. They enter this year on a high note with an exceptional leadership position in their targeted division of the semiconductor manufacturing equipment segment. The management is thrilled about their business outlook, and anticipate to further building upon their success in the imminent years.
Gross margins in Q4 2017 came at 53.4% while for FY2017 it stood at 47.2%. The margins came above the range of 40% to 45%, which is generally expected by the firm for the foreseeable future. Gross margin may differ from period to period, mainly linked to the level of utilization and the mix and timing of purchase orders. The robust gross margin performance in Q4 2017 was following the sale of the initial copper plating equipment, which was made under PRC governmental subsidies.
ACM Research reported that operating expenses in Q4 2017 came at $5.4 million compared to $3.3 million in Q4 2016. Operating expenses in FY2017 came at $16.5 million versus $9.8 million in FY2016. The jump in operating expenses in Q4 and FY2017 were due to higher marketing and sales expenses, R&D spending, the cost of preparing for the firm’s initial public offering, and a jump in stock-based compensation.