Amtech Systems, Inc. ("Amtech") (NASDAQ: ASYS), a manufacturer
of capital equipment, including thermal processing and wafer
polishing, and related consumables used in fabricating
semiconductor devices, such as silicon carbide (SiC) and silicon
power, analog and discrete devices, and electronic assemblies and
modules focusing on enabling technologies for electric vehicles
(EV) and clean technology (CleanTech) applications, today reported
results for its first quarter ended December 31, 2022.
First Quarter Fiscal 2023 Financial and Operational
Highlights:
- Net revenue of $21.6 million
- Operating loss of $2.7 million, inclusive of $1.4 million in
acquisition costs and $0.4 million in severance expenses
- Net loss of $2.7 million
- Net loss per diluted share of $0.20
- Customer orders of $25.2 million
- Book to bill ratio of 1.2:1
- December 31, 2022 backlog of $54.5 million
“While the uncertain macroeconomic outlook and timing of
capacity expansion projects are creating near-term softness for our
advanced packaging and SMT products, demand for EV applications
remained robust, with customer orders of $25.2 million during our
first quarter of fiscal 2023. Together with our recent acquisition
of Entrepix, we are confident that our strategy to align our
divisions to high-growth megatrend markets, such as EV and silicon
carbide is gaining traction. We believe this strategic alignment to
megatrend growth areas across multiple product and customer
touchpoints creates a strong and durable foundation for value
creation in the coming years,” commented Mr. Michael Whang, Chief
Executive Officer of Amtech.
GAAP Financial Results
(in millions, except per share
amounts)
Q1
Q4
Q1
FY 2023
FY 2022
FY 2022
Revenues, net
$
21.6
$
32.3
$
26.5
Gross profit
$
8.3
$
12.6
$
9.9
Gross margin
38.5
%
38.8
%
37.4
%
Operating (loss) income
$
(2.7
)
$
3.9
$
1.2
Operating margin
-12.4
%
12.0
%
4.7
%
Net (loss) income
$
(2.7
)
$
4.2
$
1.0
Net (loss) income per diluted share
$
(0.20
)
$
0.30
$
0.07
Net revenues decreased 33% sequentially and 19% from the first
quarter of fiscal 2022. The decrease is primarily attributable to
lower shipments of our semiconductor and polishing equipment,
partially offset by an increase in consumable shipments compared to
the prior year quarter.
Gross margin was relatively consistent among periods.
Selling, General & Administrative (“SG&A”) expenses
increased $1.9 million on a sequential basis and $2.1 million
compared to the prior year period due primarily to $1.4 million in
acquisition costs and consulting and ERP expenses.
Research, Development and Engineering was relatively flat
sequentially and decreased $0.2 million compared to the same prior
year period.
Operating loss was $2.7 million, compared to operating income of
$3.9 million in the fourth quarter of fiscal 2022 and operating
income of $1.2 million in the same prior year period.
Income tax benefit was less than $0.1 million for the three
months ended December 31, 2022, compared to a provision of $0.6
million in the preceding quarter and $0.2 million in the same prior
year period.
Net loss for the first quarter of fiscal 2023 was $2.7 million,
or 20 cents per share. This compares to net income of $4.2 million,
or 30 cents per share, for the preceding quarter and net income of
$1.0 million, or 7 cents per share, for the first quarter of fiscal
2022.
Outlook
The Company’s outlook reflects the ongoing logistical impacts
and the related delays for goods shipped to and from China. Actual
results may differ materially in the weeks and months ahead.
Additionally, the semiconductor equipment industries can be
cyclical and inherently impacted by changes in market demand.
Operating results can be significantly impacted, positively or
negatively, by the timing of orders, system shipments, and the
financial results of semiconductor manufacturers.
For the second fiscal quarter ending March 31, 2023, which will
include Entrepix, revenues are expected to be in the range of $30
to $32 million with operating margin in the low single digits,
excluding approximately $1.1 million in acquisition costs.
A portion of Amtech's results is denominated in Renminbis, a
Chinese currency. The outlook provided in this press release is
based on an assumed exchange rate between the United States Dollar
and the Renminbi. Changes in the value of the Renminbi in relation
to the United States Dollar could cause actual results to differ
from expectations.
Conference Call
Amtech Systems will host a conference call today at 5:00 p.m. ET
to discuss our fiscal first quarter financial results. The call
will be available to interested parties by dialing 1-877-407-0784.
For international callers, please dial +1-201-689-8560. The
confirmation code is 13735895. A live webcast of the conference
call will be available in the Investor Relations section of
Amtech’s website at:
https://www.amtechsystems.com/investors/events.
A replay of the webcast will be available in the Investor
Relations section of the company’s website at
http://www.amtechsystems.com/conference.htm shortly after the
conclusion of the call and will remain available for approximately
30 calendar days.
About Amtech Systems, Inc.
Amtech Systems, Inc. is a leading, global manufacturer of
capital equipment, including thermal processing, wafer cleaning,
chemical mechanical polishing (CMP) technology, and related
consumables used in fabricating semiconductor devices, such as
silicon carbide (SiC), silicon power, electronic assemblies and
modules focusing on enabling technologies for electric vehicles
(EV) and clean technology (CleanTech) applications. We sell process
equipment and services to semiconductor device and module
manufacturers worldwide, particularly in Asia, North America and
Europe. Our strategic focus is on semiconductor growth
opportunities in power electronics, sensors and analog devices
leveraging our strength in core competencies in thermal and
substrate processing. Amtech's products are recognized under the
leading brand names BTU International, Entrepix, Inc., Bruce
Technologies™, PR Hoffman™ and Intersurface Dynamics, Inc.
Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this press release is
forward-looking in nature. All statements in this press release, or
made by management of Amtech Systems, Inc. and its subsidiaries
("Amtech"), other than statements of historical fact, are hereby
identified as "forward-looking statements" (as such term is defined
in Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, and
the Private Securities Litigation Reform Act of 1995). The
forward-looking statements in this press release relate only to
events or information as of the date on which the statements are
made in this press release. Examples of forward-looking statements
include statements regarding Amtech's future financial results,
operating results, business strategies, projected costs, products
under development, competitive positions, plans and objectives of
Amtech and its management for future operations, efforts to improve
operational efficiencies and effectiveness and profitably grow our
revenue, and enhancements to our technologies and expansion of our
product portfolio. In some cases, forward-looking statements can be
identified by terminology such as "may," "plan," "anticipate,"
"seek," "will," "expect," "intend," "estimate," "believe,"
"continue," "predict," "potential," "project," "should," "would,"
"could", "likely," "future," "target," "forecast," "goal,"
"observe," and "strategy" or the negative of these terms or other
comparable terminology used in this press release or by our
management, which are intended to identify such forward-looking
statements. These statements are not guarantees of future
performance and involve risks, uncertainties and assumptions that
are difficult to predict. The Form 10-K that Amtech filed with the
Securities and Exchange Commission (the "SEC") for the year-ended
September 30, 2022, listed various important factors that could
affect the Company's future operating results and financial
condition and could cause actual results to differ materially from
historical results and expectations based on forward-looking
statements made in this document or elsewhere by Amtech or on its
behalf. These factors can be found under the heading "Risk Factors"
in the Form 10-K and in our subsequently filed Quarterly Reports on
Form 10-Qs, and investors should refer to them. Because it is not
possible to predict or identify all such factors, any such list
cannot be considered a complete set of all potential risks or
uncertainties. Except as required by law, we undertake no
obligation to publicly update forward-looking statements, whether
as a result of new information, future events, or otherwise.
AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
(Unaudited)
Summary Financial
Information
(in thousands, except
percentages)
Three Months Ended
December 31, 2022
September 30, 2022
December 31, 2021
Amtech Systems, Inc.
Revenues, net
$
21,558
$
32,315
$
26,463
Gross profit
$
8,303
$
12,553
$
9,898
Gross margin
39
%
39
%
37
%
Operating (loss) income
$
(2,680
)
$
3,889
$
1,240
New orders
$
25,229
$
20,365
$
31,637
Backlog
$
54,452
$
50,780
$
48,452
Semiconductor Segment
Revenues, net
$
16,887
$
26,498
$
22,765
Gross profit
$
6,172
$
9,373
$
8,662
Gross margin
37
%
35
%
38
%
Operating income
$
869
$
4,425
$
2,357
New orders
$
21,084
$
16,165
$
27,809
Backlog
$
52,209
$
48,011
$
46,921
Material and Substrate Segment
Revenues, net
$
4,671
$
5,817
$
3,698
Gross profit
$
2,131
$
3,180
$
1,236
Gross margin
46
%
55
%
33
%
Operating income
$
633
$
1,737
$
181
New orders
$
4,145
$
4,200
$
3,828
Backlog
$
2,243
$
2,769
$
1,531
AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
(Unaudited)
Consolidated Statements of
Operations
(in thousands, except per share
data)
Three Months Ended December
31,
2022
2021
Revenues, net
$
21,558
$
26,463
Cost of sales
13,255
16,565
Gross profit
8,303
9,898
Selling, general and administrative
9,190
7,086
Research, development and engineering
1,393
1,572
Severance expense
400
—
Operating (loss) income
(2,680
)
1,240
Interest expense and other, net
(68
)
(83
)
(Loss) income before income tax
provision
(2,748
)
1,157
Income tax (benefit) provision
(4
)
160
Net (loss) income
$
(2,744
)
$
997
(Loss) Income Per Share:
Net (loss) income per basic share
$
(0.20
)
$
0.07
Net (loss) income per diluted share
$
(0.20
)
$
0.07
Weighted average shares
outstanding:
Basic
14,008
14,254
Diluted
14,008
14,485
AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
(Unaudited)
Consolidated Balance Sheets
(in thousands, except share
data)
December 31, 2022
September 30, 2022
Assets
Current Assets
Cash and cash equivalents
$
44,534
$
46,874
Accounts receivable (less allowance for
doubtful accounts of $147 and $114 at December 31, 2022 and
September 30, 2022, respectively)
21,785
25,013
Inventories
28,236
25,488
Other current assets
4,890
5,561
Total current assets
99,445
102,936
Property, Plant and Equipment -
Net
6,451
6,552
Right-of-Use Assets - Net
10,832
11,258
Intangible Assets - Net
733
758
Goodwill
11,168
11,168
Deferred Income Taxes - Net
114
79
Other Assets
794
783
Total Assets
$
129,537
$
133,534
Liabilities and Shareholders’
Equity
Current Liabilities
Accounts payable
$
6,835
$
7,301
Accrued compensation and related taxes
2,923
4,109
Other accrued liabilities
2,722
1,771
Current maturities of finance lease
liabilities and long-term debt
71
107
Current portion of long-term operating
lease liabilities
2,134
2,101
Contract liabilities
6,955
7,231
Income taxes payable
19
6
Total current liabilities
21,659
22,626
Finance Lease Liabilities and Long-Term
Debt
59
220
Long-Term Operating Lease
Liabilities
8,937
9,395
Income Taxes Payable
2,551
2,849
Other Long-Term Liabilities
93
76
Total Liabilities
33,299
35,166
Commitments and Contingencies
Shareholders’ Equity
Preferred stock; 100,000,000 shares
authorized; none issued
—
—
Common stock; $0.01 par value; 100,000,000
shares authorized; shares issued and outstanding: 14,003,029 and
13,994,154 at December 31, 2022 and September 30, 2022,
respectively
140
140
Additional paid-in capital
124,656
124,458
Accumulated other comprehensive loss
(1,351
)
(1,767
)
Retained deficit
(27,207
)
(24,463
)
Total Shareholders’ Equity
96,238
98,368
Total Liabilities and Shareholders’
Equity
$
129,537
$
133,534
AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
(Unaudited)
Consolidated Statements of Cash
Flows
(in thousands)
Three Months Ended December
31,
2022
2021
Operating Activities
Net (loss) income
$
(2,744
)
$
997
Adjustments to reconcile net income to net
cash (used in) provided by operating activities:
Depreciation and amortization
388
430
Write-down of inventory
48
120
Deferred income taxes
(35
)
—
Non-cash stock compensation expense
164
103
Provision for (reversal of) allowance for
doubtful accounts
35
(19
)
Changes in operating assets and
liabilities:
Accounts receivable
3,194
(2,683
)
Inventories
(2,796
)
(2,161
)
Other assets
1,106
(207
)
Accounts payable
(643
)
1,979
Accrued income taxes
(284
)
968
Accrued and other liabilities
(665
)
140
Contract liabilities
(276
)
2,822
Net cash (used in) provided by operating
activities
(2,508
)
2,489
Investing Activities
Purchases of property, plant and
equipment
(224
)
(45
)
Net cash used in investing activities
(224
)
(45
)
Financing Activities
Proceeds from the exercise of stock
options
34
69
Repurchase of common stock
—
(2,713
)
Payments on long-term debt
(14
)
(97
)
Net cash provided by (used in) financing
activities
20
(2,741
)
Effect of Exchange Rate Changes on
Cash, Cash Equivalents and Restricted Cash
372
175
Net Decrease in Cash, Cash Equivalents
and Restricted Cash
(2,340
)
(122
)
Cash and Cash Equivalents, Beginning of
Period
46,874
32,836
Cash, Cash Equivalents and Restricted
Cash, End of Period
$
44,534
$
32,714
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230208005885/en/
Amtech Systems, Inc. Lisa D. Gibbs Chief Financial Officer (480)
360-3756 irelations@amtechsystems.com
Sapphire Investor Relations, LLC Erica Mannion and Mike Funari
(617) 542-6180 irelations@amtechsystems.com
Amtech Systems (NASDAQ:ASYS)
Historical Stock Chart
From Jul 2024 to Jul 2024
Amtech Systems (NASDAQ:ASYS)
Historical Stock Chart
From Jul 2023 to Jul 2024