Shanghai lockdowns limits ACM operational ability
COVID-19 related restrictions in Shanghai are impacting employee access to – and logistics activities of – ACM Research's offices and production facilities in the city. The restrictions are limiting ACM’s ability to ship finished products to customers and to produce new products.
Spot lockdowns in mid-March began to impact a number of ACM’s employees and led to a closure of ACM’s administrative and R&D offices in Zhangjiang in the Pudong district of Shanghai. A subsequent lockdown of the entire Pudong region of Shanghai was imposed in late March, and has impacted the operation of ACM’s Chuansha production facility, the company writes in an update.
ACM says that it currently anticipates that the restrictions will be lifted within a few weeks, and at that point the company will be able to resume normal operations.
As a result of the lockdowns in Shanghai – and the operational limitations that follows – ACM expects that its revenues for the first quarter of 2022 will be significantly below its plan, which had not anticipated any COVID-19 restrictions.
However, ACM believes the impact of the restrictions will be temporary, with some revenue being deferred from 1Q22 until later in the fiscal year, and therefore the company is maintaining its revenue outlook for the full year 2022 in the range of USD 365 million to USD 405 million.
“As China and the City of Shanghai take actions to manage the surge in COVID-19 cases, we remain focused on the health and safety of our employees and we are committed to supporting our customers, suppliers and partners in this unprecedented environment,” says Dr. David Wang, ACM’s President and Chief Executive Officer in the press release. “Although the restrictions have been extended into April and are impacting operations into the early second quarter, demand for ACM’s tools remains strong and we anticipate that tools that cannot be shipped during the lockdowns will be able to be shipped once Shanghai reopens.”