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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 September 30, 2024 2023 Actual(GAAP) SBC Other non-operating adjustments Adjusted(Non-GAAP) Actual(GAAP) SBC Other non-operating adjustments Adjusted(Non-GAAP) (In thousands)Revenue$203,976 $- $- $203,976 $168,569 $- $- $168,569 Cost of revenue (99,142) (447) - (98,695) (80,055) (588) - (79,467)Gross profit 104,834 (447) - 105,281 88,514 (588) - 89,102 Gross margin 51.4% 0.2% - 51.6% 52.5% 0.3% - 52.9%Operating expenses: Sales and marketing (15,759) (2,594) - (13,165) (16,803) (2,543) - (14,260)Research and development (27,837) (3,373) - (24,464) (26,151) (3,421) - (22,730)General and administrative (17,054) (5,467) - (11,587) (12,387) (4,029) - (8,358)Total operating expenses (60,650) (11,434) - (49,216) (55,341) (9,993) - (45,348)Income (loss) from operations$44,184 $(11,881) $- $56,065 $33,173 $(10,581) $- $43,754 Unrealized gain (loss) on short-term investments 413 - 413 - (1,319) - (1,319) - Net income (loss) attributable to ACM Research, Inc.$30,904 $(11,881) $413 $42,372 $25,679 $(10,581) $(1,319) $37,579 Basic EPS$0.49 $0.68 $0.43 $0.62 Diluted EPS$0.45 $0.63 $0.39 $0.57 Nine Months Ended September 30, 2024 2023 Actual(GAAP) SBC Other non-operating adjustments Adjusted(Non-GAAP) Actual(GAAP) SBC Other non-operating adjustments Adjusted(Non-GAAP) (In thousands)Revenue$558,647 $- $- $558,647 $387,402 $- $- $387,402 Cost of revenue (277,908) (2,020) - (275,888) (190,263) (838) - (189,425)Gross profit 280,739 (2,020) - 282,759 197,139 (838) - 197,977 Gross margin 50.3% 0.4% - 50.6% 50.9% 0.2% - 51.1%Operating expenses: Sales and marketing (47,067) (8,645) - (38,422) (37,579) (3,405) - (34,174)Research and development (77,723) (12,082) - (65,641) (60,244) (4,831) - (55,413)General and administrative (48,940) (18,045) - (30,895) (26,851) (5,592) - (21,259)Total operating expenses (173,730) (38,772) - (134,958) (124,674) (13,828) - (110,846)Income (loss) from operations$107,009 $(40,792) $- $147,801 $72,465 $(14,666) $- $87,131 Unrealized gain (loss) on short-term investments (1,151) - (1,151) - (4,428) - (4,428) - Net income (loss) attributable to ACM Research, Inc.$72,547 $(40,792) $(1,151) $114,490 $59,649 $(14,666) $(4,428) $78,743 Basic EPS$1.17 $1.85 $0.99 $1.31 Diluted EPS$1.07 $1.70 $0.90 $1.
Our near-term outlook has improved, and as a result, we have raised our 2024 revenue outlook". Three Months Ended September 30, GAAP Non-GAAP(1) 2024 2023 2024 2023 (dollars in thousands, except EPS)Revenue$203,976 $168,569 $203,976 $168,569 Gross margin 51.4% 52.5% 51.6% 52.9%Income from operations$44,184 $33,173 $56,065 $43,754 Net income attributable to ACM Research, Inc.$30,904 $25,679 $42,372 $37,579 Basic EPS$0.49 $0.43 $0.68 $0.62 Diluted EPS$0.45 $0.39 $0.63 $0.57 Nine Months Ended September 30, GAAP Non-GAAP(1) 2024 2023 2024 2023 (dollars in thousands, except EPS)Revenue$558,647 $387,402 $558,647 $387,402 Gross margin 50.3% 50.9% 50.6% 51.1%Income from operations$107,009 $72,465 $147,801 $87,131 Net income attributable to ACM Research, Inc.$72,547 $59,649 $114,490 $78,743 Basic EPS$1.17 $0.99 $1.85 $1.31 Diluted EPS$1.07 $0.90 $1.70 $1.19 (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.
Condensed Consolidated Statements of Operations and Comprehensive Income Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (Unaudited) ( In thousands, except share and per share data)Revenue$203,976 $168,569 $558,647 $387,402 Cost of revenue 99,142 80,055 277,908 190,263 Gross profit 104,834 88,514 280,739 197,139 Operating expenses: Sales and marketing 15,759 16,803 47,067 37,579 Research and development 27,837 26,151 77,723 60,244 General and administrative 17,054 12,387 48,940 26,851 Total operating expenses 60,650 55,341 173,730 124,674 Income from operations 44,184 33,173 107,009 72,465 Interest income 2,967 2,152 7,122 6,283 Interest expense (1,208) (640) (2,923) (1,984)Realized gain from sale of short-term investments 171 656 444 8,569 Unrealized gain (loss) on short-term investments 413 (1,319) (1,151) (4,428)Other income (expense), net (5,164) (2,150) (727) 156 Income (loss) from equity method investments 1,316 (160) 101 3,728 Income before income taxes 42,679 31,712 109,875 84,789 Income tax expense (4,007) (718) (17,712) (11,235) Net income 38,672 30,994 92,163 73,554 Less: Net income attributable to non-controlling interests 7,768 5,315 19,616 13,905 Net income attributable to ACM Research, Inc.$30,904 $25,679 $72,547 $59,649 Comprehensive income (loss): Net income 38,672 30,994 92,163 73,554 Foreign currency translation adjustment, net of tax 17,089 4,015 10,376 (21,831) Comprehensive Income 55,761 35,009 102,539 51,723 Less: Comprehensive income attributable to non-controlling interests 10,842 7,768 21,458 11,882 Comprehensive income (loss) attributable to ACM Research, Inc.$44,919 $27,241 $81,081 $39,841 Net income attributable to ACM Research, Inc.per common share: Basic$0.49 $0.43 $1.17 $0.99 Diluted$0.45 $0.39 $1.07 $0.90 Weighted average common shares outstanding used in computing per share amounts: Basic 62,500,903 60,219,218 62,017,257 59,953,144 Diluted 66,671,526 65,450,941 66,512,143 64,834,051 ACM RESEARCH, INC.
