Q3 2026 Amtech Systems Inc Earnings Call Transcript
Key Points
- Revenue for the quarter was $22.4 million, up 14% year-over-year and at the top end of guidance, driven by strong AI-related demand in the Thermal Processing Solutions segment.
- AI-related revenue in the Thermal Processing Solutions segment surged approximately 120% year-over-year, with AI accounting for more than 40% of segment revenue.
- Gross margin improved to 50%, up nearly 400 basis points year-over-year, and adjusted EBITDA of $3.3 million approached 15% of sales, reflecting strong operating leverage.
- The book-to-bill ratio for the Thermal Processing Solutions segment approached 1.4, marking the third consecutive quarter with a book-to-bill above 1, indicating strong future demand.
- The company received its first order for equipment used in producing cooling components for AI semiconductors, expanding its participation in AI infrastructure beyond advanced packaging and server board assembly.
- Cash position strengthened significantly to $83.1 million, including $56.5 million from an oversubscribed public offering, providing ample capital for potential synergistic acquisitions and organic growth.
- Revenue in the Semiconductor Fabrication Solutions segment declined over 13% year-over-year, primarily due to a significant reduction in demand for PR Hoffman templates used in silicon carbide substrate manufacturing.
- The company does not expect a meaningful recovery in silicon carbide demand due to structural changes in the industry, leading to a de-emphasis of that product line.
- Selling, general, and administrative expenses increased by approximately $600,000 year-over-year, driven by expanding business activities, compensation, and consulting fees.
- Research, development, and engineering expenses more than doubled year-over-year, and are expected to increase further as the company builds out platforms for next-generation opportunities.
- The company recorded approximately $300,000 in non-cash charges related to the sublease of a previously closed facility, including an impairment of the lease asset.
- Foreign currency exchange losses increased to $400,000 in the quarter, primarily due to a weakening US dollar against the Chinese renminbi.
Good day and thank you for standing by everyone and welcome to the Amtek Systems Fiscal 2026 Third Quarter Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.
After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two.
Please note this event is being recorded.
I would now like to turn the conference over to Jordan Darrow of Darrow Associates Investor Relations. Please go ahead.
Thank you, and good afternoon, everyone. We appreciate you joining us for the Amtek Systems fiscal 2026 third quarter conference call and webcast.
With me on the call today are Bob Dale, Chairman and Chief Executive Officer John Schechter, President and Chief Operating Officer and Tom Sabol, Chief Financial Officer.
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