Ichor Holdings, Ltd. reported a revenue of $849.0 million for the fiscal year ending December 27, 2024, marking a 4.7% increase from $811.1 million in 2023. However, the company experienced a net loss of $20.8 million, an improvement from a loss of $43.0 million in the previous year. On a non-GAAP basis, Ichor's net income was $5.9 million, down from $12.3 million in 2023. The gross margin decreased to 12.2% from 12.7%, attributed to an unfavorable sales mix and increased factory labor and overhead costs, despite lower severance costs and reduced excess inventory expenses.
The company noted significant changes in its operational landscape, particularly in customer concentration, with two major customers, Lam Research and Applied Materials, accounting for 73% of total sales. This concentration poses risks, as any adverse changes in relationships with these customers could materially impact Ichor's financial performance. The semiconductor capital equipment industry, which constitutes over 90% of Ichor's sales, remains cyclical and sensitive to macroeconomic conditions, including geopolitical tensions and trade policies.
Strategically, Ichor has focused on expanding its product offerings and customer base. The company has engaged in early collaboration with customers to enhance product development and has expanded its market share through acquisitions, including IMG Companies, LLC, which broadened its reach into the medical, aerospace, and defense sectors. Ichor's workforce as of December 27, 2024, comprised approximately 1,820 full-time employees and 560 contingent workers, reflecting its commitment to maintaining a skilled labor force in a competitive market.
Looking ahead, Ichor anticipates continued fluctuations in customer orders due to the cyclical nature of the semiconductor industry. The company has implemented labor cost reduction initiatives to align its resources with current demand levels. Despite the challenges, Ichor remains optimistic about long-term growth driven by increasing investments in semiconductor manufacturing and the ongoing trend of OEMs outsourcing subsystems. The company plans to leverage its engineering expertise and customer relationships to navigate the evolving market landscape effectively.
About ICHOR HOLDINGS, LTD.
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