Amtech Systems, Inc. ("Amtech") (NASDAQ: ASYS), a manufacturer of equipment and consumables for semiconductor fabrication and packaging, today reported results for its first quarter ended December 31, 2024.
First Quarter Fiscal 2025 Financial and Operational Results:
- Net revenue of $24.4 million
- Cash of $13.2 million
- Cash provided by operations of $2.9 million
- GAAP net income of $0.3 million
- Non-GAAP net income of $0.8 million(1)
- Adjusted EBITDA $1.9 million (1)
- Customer orders of $18.1 million
- Backlog of $19.0 million
(1) See GAAP to non-GAAP and EBITDA and Adjusted EBITDA reconciliation in schedules following this release.
“I'm pleased to report a strong first quarter that exceeded the high end of our guidance, with $24.4 million in revenue and $1.9 million in adjusted EBITDA. While industry softness remains a headwind, we continue to make progress on our operational excellence and cost optimization initiatives, evidenced by the $1.8 million year-over-year increase in adjusted EBITDA. With strong long-term growth drivers that include AI infrastructure investments and our initiatives to grow our consumables, parts and services revenue, we are well positioned to deliver profitable growth that should result in meaningful value creation for shareholders,” commented Mr. Bob Daigle, Chief Executive Officer of Amtech.
GAAP and Non-GAAP Financial Results
(in millions, except per share amounts) | Q1 | Q4 | Q1 | ||||||||
FY 2025 | FY 2024 | FY 2024 | |||||||||
Revenues, net | $ | 24.4 | $ | 24.1 | $ | 24.9 | |||||
Gross profit | $ | 9.4 | $ | 9.8 | $ | 8.2 | |||||
Gross margin | 38.4 | % | 40.7 | % | 33.0 | % | |||||
Non-GAAP gross profit (1) | $ | 9.4 | $ | 9.8 | $ | 9.3 | |||||
Non-GAAP gross margin (1) | 38.4 | % | 40.7 | % | 37.5 | % | |||||
GAAP net income (loss) | $ | 0.3 | $ | (0.5 | ) | $ | (9.4 | ) | |||
GAAP net income (loss) per diluted share | $ | 0.02 | $ | (0.04 | ) | $ | (0.66 | ) | |||
Non-GAAP net income (loss) (1) | $ | 0.8 | $ | (0.0 | ) | $ | (0.6 | ) | |||
Non-GAAP net income (loss) per diluted share (1) | $ | 0.06 | $ | (0.00 | ) | $ | (0.04 | ) | |||
(1) See GAAP to non-GAAP reconciliation in schedules following this release.
Net revenues increased 1% sequentially from last quarter and decreased 2% from the first quarter of fiscal 2024. The sequential increase from last quarter is primarily due to increased sales of our diffusion and high temperature furnaces, partially offset by lower sales of our wafer cleaning equipment. The decrease from the prior year is primarily attributable to lower sales of our wafer cleaning equipment.
GAAP gross margin decreased by $0.4 million sequentially compared to last quarter due to a less favorable product mix. GAAP gross margin increased by $1.1 million dollars compared to the same prior year period. This is driven by better margin profiles and cost savings despite $0.5 million lower revenue and due to an intangible asset impairment of $0.8 million in Q1 2024.
Selling, General & Administrative (“SG&A”) expenses decreased $0.7 million sequentially from last quarter and decreased $0.5 million compared to the same prior year period. The decrease across both periods are primarily due to fixed cost reductions.
Research, Development and Engineering expenses decreased $0.1 million sequentially from last quarter and decreased $0.7 million compared to the same prior year period. The sequential decrease is due primarily to the timing of purchases related to specific projects. The decrease from prior year is attributable to development efforts in our Semiconductor Fabrication Solutions segment that did not recur.
GAAP net income for the first quarter of fiscal 2025 was $0.3 million, or 2 cents per share. This compares to GAAP net loss of $0.5 million, or 4 cents per share for the preceding quarter and GAAP net loss of $9.4 million, or 66 cents per share, for the first quarter of fiscal 2024.
Non-GAAP net income for the first quarter of fiscal 2025 was $0.8 million, or 6 cents per share. This compares to non-GAAP net loss of $7,000, or 0 cents per share for the preceding quarter and non-GAAP net loss of $0.6 million, or 4 cents per share, for the first quarter of fiscal 2024.
Unrestricted cash and cash equivalents at December 31, 2024, were $13.2 million, compared to $11.1 million at September 30, 2024, due primarily to strong accounts receivable collection and inventory management efforts during the quarter.
In discussing financial results for the three months ended December 31, 2024 and 2023 and the three months ended September 30, 2024, in this press release, the Company refers to certain financial measures that are adjusted from the financial results prepared in accordance with United States generally accepted accounting principles ("GAAP"). All non-GAAP amounts exclude certain adjustments for stock compensation expense, severance expense, expenses related to the discontinued product line, gain on the sale of our Arizona headquarters, moving expenses, amortization of acquired intangible assets, acquisition expenses, and income tax benefit related to our acquisition of Entrepix, Inc. A tabular reconciliation of financial measures prepared in accordance with GAAP to the non-GAAP financial measures is included at the end of this press release.
Outlook
Operating results can be significantly impacted, positively or negatively, by the timing of orders, system shipments, logistical challenges, and the financial results of semiconductor manufacturers. Additionally, the semiconductor equipment industries can be cyclical and inherently impacted by changes in market demand. Actual results may differ materially in the weeks and months ahead.
For the second quarter ending March 31, 2025, we expect revenues in the range of $21 - 23 million with adjusted EBITDA nominally positive. Although the near-term outlook for revenue and earnings remains challenging, we remain confident that our long-term future prospects are strong for both our consumables and equipment serving advanced mobility and advanced packaging applications. We continue to optimize and reduce Amtech's structural costs. We believe these steps should significantly improve results and enhance profitability through market cycles.
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 at 5:00 pm ET on Wednesday, February 5, 2025 to discuss our fiscal first quarter financial results. The call will be available to interested parties by dialing 1-800-717-1738. For international callers, please dial +1-646-307-1865. 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. provides equipment, consumables and services for semiconductor wafer fabrication and device packaging. Our products are used in fabricating semiconductor devices, such as silicon carbide (SiC) and silicon (Si) power devices, digital and analog devices, power electronic packages, advanced semiconductor packages and electronic assemblies. We sell these products to semiconductor device and module manufacturers worldwide, particularly in Asia, North America and Europe.
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, long term future prospects, operating results, business strategies, projected costs, the optimization and reduction of structural 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, 2024, 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,
| September 30, 2024 | December 31,
| ||||||||||
Amtech Systems, Inc. | ||||||||||||
Revenues, net | $ | 24,385 | $ | 24,112 | $ | 24,920 | ||||||
GAAP gross profit | $ | 9,363 | $ | 9,803 | $ | 8,219 | ||||||
Non-GAAP gross profit | $ | 9,363 | $ | 9,803 | $ | 9,341 | ||||||
GAAP gross margin | 38 | % | 41 | % | 33 | % | ||||||
Non-GAAP gross margin | 38 | % | 41 | % | 37 | % | ||||||
Operating income (loss) | $ | 339 | $ | 26 | $ | (8,934 | ) | |||||
New orders | $ | 18,070 | $ | 17,587 | $ | 23,105 | ||||||
Backlog | $ | 18,998 | $ | 25,312 | $ | 49,979 | ||||||
Thermal Processing Solutions Segment | ||||||||||||
Revenues, net | $ | 18,684 | $ | 16,155 | $ | 17,527 | ||||||
GAAP gross profit | $ | 7,329 | $ | 6,756 | $ | 6,159 | ||||||
Non-GAAP gross profit | $ | 7,329 | $ | 6,756 | $ | 6,159 | ||||||
GAAP gross margin | 39 | % | 42 | % | 35 | % | ||||||
Non-GAAP gross margin | 39 | % | 42 | % | 35 | % | ||||||
Operating income | $ | 2,874 | $ | 2,530 | $ | 1,081 | ||||||
New orders | $ | 13,167 | $ | 9,328 | $ | 17,129 | ||||||
Backlog | $ | 15,328 | $ | 20,845 | $ | 44,835 | ||||||
Semiconductor Fabrication Solutions Segment | ||||||||||||
Revenues, net | $ | 5,701 | $ | 7,957 | $ | 7,393 | ||||||
GAAP gross profit | $ | 2,034 | $ | 3,047 | $ | 2,060 | ||||||
Non-GAAP gross profit | $ | 2,034 | $ | 3,047 | $ | 3,182 | ||||||
GAAP gross margin | 36 | % | 38 | % | 28 | % | ||||||
Non-GAAP gross margin | 36 | % | 38 | % | 43 | % | ||||||
Operating (loss) income | $ | (358 | ) | $ | 447 | $ | (7,844 | ) | ||||
New orders | $ | 4,903 | $ | 8,259 | $ | 5,976 | ||||||
Backlog | $ | 3,670 | $ | 4,467 | $ | 5,144 | ||||||
AMTECH SYSTEMS, INC. | ||||||||
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(Unaudited) | ||||||||
Consolidated Statements of Operations | ||||||||
(in thousands, except per share data) | ||||||||
Three Months Ended December 31, | ||||||||
2024 | 2023 | |||||||
Revenues, net | $ | 24,385 | $ | 24,920 | ||||
Cost of sales | 15,022 | 15,852 | ||||||
Intangible asset impairment | — | 849 | ||||||
Gross profit | 9,363 | 8,219 | ||||||
Selling, general and administrative | 8,051 | 8,567 | ||||||
Research, development and engineering | 876 | 1,588 | ||||||
Loss on disposal of fixed assets | 24 | — | ||||||
Goodwill impairment | — | 6,370 | ||||||
Intangible asset impairment | — | 430 | ||||||
Severance expense | 73 | 198 | ||||||
Operating income (loss) | 339 | (8,934 | ) | |||||
Interest income | 5 | 19 | ||||||
Interest expense | (7 | ) | (198 | ) | ||||
Foreign currency gain (loss) | 401 | (187 | ) | |||||
Other | 19 | — | ||||||
Income (loss) before income tax provision | 757 | (9,300 | ) | |||||
Income tax provision (benefit) | 445 | 58 | ||||||
Net income (loss) | $ | 312 | $ | (9,358 | ) | |||
Income (Loss) Per Share: | ||||||||
Net income (loss) per basic share | $ | 0.02 | $ | (0.66 | ) | |||
Net income (loss) per diluted share | $ | 0.02 | $ | (0.66 | ) | |||
Weighted average shares outstanding: | ||||||||
Basic | 14,272 | 14,188 | ||||||
Diluted | 14,300 | 14,188 | ||||||
AMTECH SYSTEMS, INC. | ||||||||
(NASDAQ: ASYS) | ||||||||
(Unaudited) | ||||||||
Consolidated Balance Sheets | ||||||||
(in thousands, except share data) | ||||||||
December 31,
| September 30,
| |||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 13,214 | $ | 11,086 | ||||
Accounts receivable (less allowance for credit losses of $117 and $103 at
| 20,822 | 21,989 | ||||||
Inventories | 25,611 | 26,867 | ||||||
Income taxes receivable | 95 | 132 | ||||||
Other current assets | 4,525 | 4,302 | ||||||
Total current assets | 64,267 | 64,376 | ||||||
Property, Plant and Equipment - Net | 11,076 | 11,647 | ||||||
Right-of-Use Assets - Net | 15,978 | 16,596 | ||||||
Intangible Assets - Net | 3,876 | 4,004 | ||||||
Goodwill | 21,261 | 21,261 | ||||||
Deferred Income Taxes - Net | 185 | 185 | ||||||
Other Assets | 1,133 | 884 | ||||||
Total Assets | $ | 117,776 | $ | 118,953 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 6,888 | $ | 5,356 | ||||
Accrued compensation and related taxes | 2,254 | 2,057 | ||||||
Accrued warranty expense | 513 | 602 | ||||||
Other accrued liabilities | 447 | 477 | ||||||
Current maturities of finance lease liabilities and long-term debt | 102 | 101 | ||||||
Current portion of long-term operating lease liabilities | 2,098 | 2,041 | ||||||
Contract liabilities | 6,658 | 8,965 | ||||||
Total current liabilities | 18,960 | 19,599 | ||||||
Finance Lease Liabilities and Long-Term Debt | 161 | 189 | ||||||
Long-Term Operating Lease Liabilities | 14,666 | 15,240 | ||||||
Income Taxes Payable | 1,488 | 1,510 | ||||||
Other Long-Term Liabilities | 59 | 57 | ||||||
Total Liabilities | 35,334 | 36,595 | ||||||
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
| 143 | 143 | ||||||
Additional paid-in capital | 128,949 | 128,466 | ||||||
Accumulated other comprehensive loss | (1,431 | ) | (720 | ) | ||||
Retained deficit | (45,219 | ) | (45,531 | ) | ||||
Total Shareholders’ Equity | 82,442 | 82,358 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 117,776 | $ | 118,953 | ||||
AMTECH SYSTEMS, INC. | ||||||||
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(Unaudited) | ||||||||
Consolidated Statements of Cash Flows | ||||||||
(in thousands) | ||||||||
Three Months Ended December 31, | ||||||||
2024 | 2023 | |||||||
Operating Activities | ||||||||
Net income (loss) | $ | 312 | $ | (9,358 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by
| ||||||||
Depreciation and amortization | 752 | 852 | ||||||
Write-down of inventory | 632 | 572 | ||||||
Goodwill impairment | — | 6,370 | ||||||
Intangible asset impairment | — | 1,279 | ||||||
Deferred income taxes | — | (25 | ) | |||||
Non-cash share-based compensation expense | 333 | 317 | ||||||
Loss on disposal of fixed assets | 24 | — | ||||||
Provision for allowance for credit losses | 19 | (42 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 1,148 | 5,114 | ||||||
Inventories | 624 | 243 | ||||||
Other assets | 146 | 1,783 | ||||||
Accounts payable | 1,608 | (1,661 | ) | |||||
Accrued income taxes | 14 | (222 | ) | |||||
Accrued and other liabilities | (438 | ) | (1,751 | ) | ||||
Contract liabilities | (2,307 | ) | 1,500 | |||||
Net cash provided by operating activities | 2,867 | 4,971 | ||||||
Investing Activities | ||||||||
Purchases of property, plant and equipment | (143 | ) | (756 | ) | ||||
Net cash used in investing activities | (143 | ) | (756 | ) | ||||
Financing Activities | ||||||||
Proceeds from the exercise of stock options | 150 | 28 | ||||||
Payments on long-term debt | (24 | ) | (556 | ) | ||||
Net cash provided by (used in) financing activities | 126 | (528 | ) | |||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (722 | ) | 213 | |||||
Net Increase in Cash and Cash Equivalents | 2,128 | 3,900 | ||||||
Cash and Cash Equivalents, Beginning of Period | 11,086 | 13,133 | ||||||
Cash and Cash Equivalents, End of Period | $ | 13,214 | $ | 17,033 | ||||
AMTECH SYSTEMS, INC. | ||||||||||||
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(Unaudited) | ||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||
(in thousands, except per share data) | ||||||||||||
Three Months Ended | ||||||||||||
December 31,
| September 30,
| December 31,
| ||||||||||
Amtech Systems, Inc. Gross Profit: | ||||||||||||
GAAP gross profit | $ | 9,363 | $ | 9,803 | $ | 8,219 | ||||||
Write-down of inventory related to polishing equipment | - | - | 273 | |||||||||
Intangible asset impairment | - | - | 849 | |||||||||
Non-GAAP gross profit | $ | 9,363 | $ | 9,803 | $ | 9,341 | ||||||
GAAP gross margin | 38 | % | 41 | % | 33 | % | ||||||
Non-GAAP gross margin | 38 | % | 41 | % | 37 | % | ||||||
Thermal Processing Solutions Segment Gross Profit: | ||||||||||||
GAAP gross profit | $ | 7,329 | $ | 6,756 | $ | 6,159 | ||||||
Write-down of inventory related to polishing equipment | - | - | - | |||||||||
Intangible asset impairment | - | - | - | |||||||||
Non-GAAP gross profit | $ | 7,329 | $ | 6,756 | $ | 6,159 | ||||||
GAAP gross margin | 39 | % | 42 | % | 35 | % | ||||||
Non-GAAP gross margin | 39 | % | 42 | % | 35 | % | ||||||
Semiconductor Fabrication Solutions Segment Gross Profit: | ||||||||||||
GAAP gross profit | $ | 2,034 | $ | 3,047 | $ | 2,060 | ||||||
Write-down of inventory related to polishing equipment | - | - | 273 | |||||||||
Intangible asset impairment | - | - | 849 | |||||||||
Non-GAAP gross profit | $ | 2,034 | $ | 3,047 | $ | 3,182 | ||||||
GAAP gross margin | 36 | % | 38 | % | 28 | % | ||||||
Non-GAAP gross margin | 36 | % | 38 | % | 43 | % | ||||||
AMTECH SYSTEMS, INC. | |||||||||||
(NASDAQ: ASYS) | |||||||||||
(Unaudited) | |||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures | |||||||||||
(in thousands, except per share data) | |||||||||||
Three Months Ended | |||||||||||
December 31,
| September 30,
| December 31,
| |||||||||
Consolidated Net Income (Loss): | |||||||||||
GAAP net income (loss) | $ | 312 | $ | (536 | ) | $ | (9,358 | ) | |||
Write-down of inventory related to polishing equipment | - | - | 273 | ||||||||
Amortization of acquired intangible assets | 108 | 154 | 287 | ||||||||
Stock compensation expense | 333 | 375 | 317 | ||||||||
Goodwill impairment | - | - | 6,370 | ||||||||
Intangible asset impairment | - | - | 1,279 | ||||||||
Severance expense | 73 | - | 198 | ||||||||
Non-GAAP net income (loss) | $ | 826 | $ | (7 | ) | $ | (634 | ) | |||
Net Income (Loss) per Diluted Share: | |||||||||||
GAAP net income (loss) per diluted share | $ | 0.02 | $ | (0.04 | ) | $ | (0.66 | ) | |||
Write-down of inventory related to polishing equipment | - | - | 0.02 | ||||||||
Amortization of acquired intangible assets | 0.01 | 0.01 | 0.02 | ||||||||
Stock compensation expense | 0.02 | 0.03 | 0.02 | ||||||||
Goodwill impairment | - | - | 0.45 | ||||||||
Intangible asset impairment | - | - | 0.09 | ||||||||
Severance expense | 0.01 | - | 0.02 | ||||||||
Non-GAAP net income (loss) per diluted share | $ | 0.06 | $ | (0.00 | ) | $ | (0.04 | ) | |||
AMTECH SYSTEMS, INC. | ||||
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(Unaudited) | ||||
Reconciliation of Net Income to EBITDA and Adjusted EBITDA | ||||
(in thousands, except per share data) | ||||
Three Months Ended December 31, 2024 | ||||
Amtech Systems, Inc. EBITDA: | ||||
GAAP net income | $ | 312 | ||
Interest income | (5 | ) | ||
Interest expense | 7 | |||
Income tax provision | 445 | |||
Depreciation and amortization expense | 752 | |||
EBITDA | 1,511 | |||
Stock compensation expense | 333 | |||
Severance expense | 73 | |||
Adjusted EBITDA | $ | 1,917 | ||
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