Ultra Clean Holdings (UCTT), a supplier of parts and cleaning services to the semiconductor industry, has admitted the Securities and Exchange Commission (SEC) is scrutinizing years of the company’s financial statements.

In its latest quarterly filing, Ultra Clean revealed:

“On June 7, 2024, UCT received a subpoena from the SEC related to the material weaknesses identified in our 2022 and 2023 Forms 10-K and the change of our independent auditors.”

The firm's auditor for the last decade, Moss Adams, resigned the same day Ultra Clean belatedly filed its latest annual report.

The report was not filed on time, according to Ultra Clean, after Moss Adams requested additional information to complete its audit procedures and furnish its opinion.

Multiple control deficiencies were identified in 2022 and 2023 including problems with Ultra’s primary revenue system for its Services segment— which accounted for 13.4% and 12.6% of total sales in 2023 and 2022, respectively.

Ultra Clean also acknowledged the accuracy of virtually all its accounts are in question:

“The Company did not design effective controls necessary to validate the accuracy of data used within the operation of controls across substantially all financial statement account balances and disclosures.”

Ultra Clean says it can’t predict the duration, scope, or outcome of the SEC investigation and doesn’t intend to make any additional comments regarding the matter unless and until there are material developments.