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 third quarter ended June 30, 2023.
Third Quarter Fiscal 2023 Financial and Operational
Highlights:
- Net revenue of $30.7 million
- GAAP operating loss of $1.1 million
- Non-GAAP operating income of $0.4 million (1)
- GAAP net loss of $1.0 million
- Non-GAAP net income of $0.3 million (1)
- GAAP net loss per diluted share of $0.07
- Non-GAAP net income per diluted share of $0.02 (1)
- Customer orders of $26.2 million
- Book to bill ratio of 0.9:1
- Backlog of $61.3 million.
“I am excited to take on the role of CEO and am looking forward
to leading Amtech and driving efforts to fully capitalize on the
exciting growth opportunities before us. In the coming quarters, we
will focus our efforts on operational and supply chain improvements
to ensure that we create meaningful value from the secular drivers
influencing our business. We will be outlining our targets and
plans in more detail on our next earnings call,” commented Mr. Bob
Daigle, Chief Executive Officer of Amtech.
(1) See GAAP to non-GAAP reconciliation in schedules following
this release.
GAAP and Non-GAAP Financial Results
(in millions, except per share
amounts)
Q3
Q2
Q3
9 Months
9 Months
FY 2023
FY 2023
FY 2022
2023
2022
Revenues, net
$
30.7
$
33.3
$
20.0
$
85.6
$
74.0
Gross profit
$
11.0
$
13.5
$
5.9
$
32.8
$
27.0
Gross margin
35.7
%
40.4
%
29.6
%
38.3
%
36.4
%
GAAP operating (loss) income
$
(1.1
)
$
0.5
$
9.6
$
(3.3
)
$
13.4
GAAP operating margin
-3.6
%
1.6
%
47.9
%
-3.8
%
18.1
%
Non-GAAP operating income (loss) (1)
$
0.4
$
3.2
$
(2.8
)
$
2.9
$
1.3
Non-GAAP operating margin (1)
1.2
%
9.5
%
-13.8
%
3.3
%
1.8
%
GAAP net (loss) income
$
(1.0
)
$
3.2
$
10.2
$
(0.6
)
$
13.2
GAAP net (loss) income per diluted
share
$
(0.07
)
$
0.23
$
0.73
$
(0.04
)
$
0.93
Non-GAAP net income (loss) (1)
$
0.3
$
2.7
$
(2.1
)
$
2.2
$
1.1
Non-GAAP net income (loss) per diluted
share (1)
$
0.02
$
0.19
$
(0.15
)
$
0.16
$
0.08
Net revenues decreased 8% sequentially and increased 54% from
the third quarter of fiscal 2022. The increase from prior year is
primarily attributable to additional revenue of $7.2 million from
Entrepix and increased shipments of our high temperature belt
furnaces. The sequential decrease is primarily due to approximately
$1.5 million in revenue that shifted from the third quarter to the
fourth quarter of fiscal 2023 due to three BTU customers pushing
out delivery dates and operational challenges surrounding the
implementation of our new ERP system at P.R. Hoffman.
Gross margin decreased sequentially due primarily to product mix
within our Semiconductor segment. Gross margin increased when
compared to the third quarter of fiscal 2022, as the prior year
period was affected by the government-mandated shutdown of our
Shanghai manufacturing location.
Selling, General & Administrative (“SG&A”) expenses
decreased $1.1 million on a sequential basis and increased $3.1
million compared to the prior year period. The sequential decrease
is due primarily to acquisition costs of $1.5 million in the prior
sequential period, which were not incurred during the third
quarter. Compared to the prior year, the increase is due primarily
to added Entrepix SG&A of $1.9 million, inclusive of $0.7
million of amortization of intangible assets, as well as increased
consulting and ERP project expenses.
Research, Development and Engineering expenses increased $0.3
million sequentially and increased $0.2 million compared to the
same prior year period.
GAAP operating loss was $1.1 million, compared to GAAP operating
income of $0.5 million in the second quarter of fiscal 2023 and
GAAP operating income of $9.6 million in the same prior year
period. The prior year period includes the gain on the
sale-leaseback of our Massachusetts facility.
The Company has incurred amortization of intangible assets,
included in its GAAP financial statements, related to the
acquisition of Entrepix, Inc. The amount of an acquisition’s
purchase price allocated to intangible assets and term of its
related amortization can vary significantly. The purchase price
allocation reflected in our GAAP financial statements is
preliminary. The Company expects to incur amortization of acquired
intangible assets relating to Entrepix, Inc. of approximately
$985,000 per quarter through December 31, 2023, and approximately
$460,000 per quarter thereafter.
(1) See GAAP to non-GAAP reconciliation in schedules following
this release.
Non-GAAP operating income was $0.4 million, compared to non-GAAP
operating income of $3.2 million in the second quarter of fiscal
2023 and non-GAAP operating loss of $2.8 million in the same prior
year period.
Income tax expense was $0.2 million for the three months ended
June 30, 2023, compared to a benefit of $2.9 million in the
preceding quarter and expense of $20,000 in the same prior year
period. Income tax benefit for the three months ended March 31,
2023, includes a one-time tax benefit of $3.2 million related to
the release of a portion of our valuation allowance in connection
with a deferred tax liability related to the Entrepix acquisition
resulting in recognition of previously recorded deferred tax
assets.
GAAP net loss for the third quarter of fiscal 2023 was $1.0
million, or 7 cents per share. This compares to GAAP net income of
$3.2 million, or 23 cents per share, for the preceding quarter and
GAAP net income of $10.2 million, or 73 cents per share, for the
third quarter of fiscal 2022.
Non-GAAP net income for the third quarter of fiscal 2023 was
$0.3 million, or 2 cents per share. This compares to non-GAAP net
income of $2.7 million, or 19 cents per share, for the preceding
quarter and non-GAAP net loss of $2.1 million, or 15 cents per
share, for the third quarter of fiscal 2022.
In discussing financial results for the three and nine months
ended June 30, 2023 and 2022, and the three months ended March 31,
2023, 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, gain on sale-leaseback of our Massachusetts facility,
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 fourth fiscal quarter ending September 30, 2023, we
expect revenue and operating profit to improve incrementally over
the third quarter of fiscal 2023.
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.
(1) See GAAP to non-GAAP reconciliation in schedules following
this release.
Conference Call
Amtech Systems will host a conference call today at 5:00 p.m. ET
to discuss our fiscal third quarter financial results. The call
will be available to interested parties by dialing 1-888-886-7786.
For international callers, please dial +1-416-764-8658. 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
Nine Months Ended June
30,
June 30, 2023
March 31, 2023
June 30, 2022
2023
2022
Amtech Systems, Inc.
Revenues, net
$
30,740
$
33,310
$
19,964
$
85,608
$
73,983
Gross profit
$
10,985
$
13,470
$
5,900
$
32,758
$
26,958
Gross margin
36
%
40
%
30
%
38
%
36
%
GAAP operating (loss) income
$
(1,119
)
$
519
$
9,562
$
(3,280
)
$
13,397
Non-GAAP operating income (loss)
$
368
$
3,162
$
(2,757
)
$
2,860
$
1,318
New orders
$
26,217
$
34,266
$
30,145
$
85,712
$
95,477
Backlog
$
61,315
$
65,838
$
62,731
$
61,315
$
62,731
Semiconductor Segment
Revenues, net
$
19,841
$
22,047
$
15,135
$
58,775
$
61,484
Gross profit
$
6,707
$
8,931
$
3,590
$
21,810
$
21,507
Gross margin
34
%
41
%
24
%
37
%
35
%
GAAP operating income
$
1,042
$
2,950
$
10,521
$
4,861
$
16,246
Non-GAAP operating income (loss)
$
1,042
$
2,950
$
(1,944
)
$
4,861
$
3,781
New orders
$
18,293
$
24,606
$
24,144
$
63,983
$
79,992
Backlog
$
53,219
$
54,767
$
58,344
$
53,219
$
58,344
Material and Substrate Segment
Revenues, net
$
10,899
$
11,263
$
4,829
$
26,833
$
12,499
Gross profit
$
4,278
$
4,539
$
2,310
$
10,948
$
5,451
Gross margin
39
%
40
%
48
%
41
%
44
%
GAAP operating income
$
481
$
297
$
1,156
$
1,411
$
1,991
Non-GAAP operating income
$
1,506
$
1,938
$
1,156
$
4,077
$
1,991
New orders
$
7,924
$
9,660
$
6,001
$
21,729
$
15,485
Backlog
$
8,096
$
11,071
$
4,387
$
8,096
$
4,387
AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
(Unaudited)
Consolidated Statements of
Operations
(in thousands, except per share
data)
Three Months Ended June
30,
Nine Months Ended June
30,
2023
2022
2023
2022
Revenues, net
$
30,740
$
19,964
$
85,608
$
73,983
Cost of sales
19,755
14,064
52,850
47,025
Gross profit
10,985
5,900
32,758
26,958
Selling, general and administrative
10,300
7,157
30,924
21,008
Research, development and engineering
1,804
1,646
4,714
5,018
Gain on sale of fixed assets
—
(12,465
)
—
(12,465
)
Severance expense
—
—
400
—
Operating (loss) income
(1,119
)
9,562
(3,280
)
13,397
Interest income (expense) and other,
net
303
680
(26
)
627
(Loss) income before income tax
provision
(816
)
10,242
(3,306
)
14,024
Income tax provision (benefit)
211
20
(2,739
)
840
Net (loss) income
$
(1,027
)
$
10,222
$
(567
)
$
13,184
(Loss) Income Per Share:
Net (loss) income per basic share
$
(0.07
)
$
0.74
$
(0.04
)
$
0.94
Net (loss) income per diluted share
$
(0.07
)
$
0.73
$
(0.04
)
$
0.93
Weighted average shares
outstanding:
Basic
14,058
13,889
14,031
14,042
Diluted
14,058
14,026
14,031
14,220
AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
(Unaudited)
Consolidated Balance Sheets
(in thousands, except share
data)
June 30, 2023
September 30, 2022
Assets
Current Assets
Cash and cash equivalents
$
14,305
$
46,874
Accounts receivable (less allowance for
doubtful accounts of $357 and $114 at June 30, 2023 and September
30, 2022, respectively)
28,398
25,013
Inventories
34,661
25,488
Other current assets
5,600
5,561
Total current assets
82,964
102,936
Property, Plant and Equipment -
Net
9,146
6,552
Right-of-Use Assets - Net
11,643
11,258
Intangible Assets - Net
12,313
758
Goodwill
29,022
11,168
Deferred Income Taxes - Net
162
79
Other Assets
1,112
783
Total Assets
$
146,362
$
133,534
Liabilities and Shareholders’
Equity
Current Liabilities
Accounts payable
$
7,466
$
7,301
Accrued compensation and related taxes
3,491
4,109
Other accrued liabilities
3,120
1,771
Current maturities of finance lease
liabilities and long-term debt
2,244
107
Current portion of long-term operating
lease liabilities
2,800
2,101
Contract liabilities
7,807
7,231
Income taxes payable
34
6
Total current liabilities
26,962
22,626
Finance Lease Liabilities and Long-Term
Debt
8,987
220
Long-Term Operating Lease
Liabilities
9,120
9,395
Income Taxes Payable
2,462
2,849
Other Long-Term Liabilities
124
76
Total Liabilities
47,655
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: 14,076,472 and
13,994,154 at June 30, 2023 and September 30, 2022,
respectively
141
140
Additional paid-in capital
125,525
124,458
Accumulated other comprehensive loss
(1,929
)
(1,767
)
Retained deficit
(25,030
)
(24,463
)
Total Shareholders’ Equity
98,707
98,368
Total Liabilities and Shareholders’
Equity
$
146,362
$
133,534
AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
(Unaudited)
Consolidated Statements of Cash
Flows
(in thousands)
Nine Months Ended June
30,
2023
2022
Operating Activities
Net (loss) income
$
(567
)
$
13,184
Adjustments to reconcile net income to net
cash used in operating activities:
Depreciation and amortization
3,435
1,330
Write-down of inventory
1,233
235
Deferred income taxes
(3,430
)
—
Non-cash share-based compensation
expense
528
386
Gain on sale of property, plant and
equipment
—
(12,465
)
Provision for allowance for doubtful
accounts
109
10
Changes in operating assets and
liabilities:
Accounts receivable
2,391
1,714
Inventories
(4,724
)
(5,617
)
Other assets
1,775
(1,298
)
Accounts payable
(1,586
)
1,603
Accrued income taxes
(1,947
)
713
Accrued and other liabilities
(2,993
)
1,031
Contract liabilities
(1,374
)
4,264
Net cash (used in) provided by operating
activities
(7,150
)
5,090
Investing Activities
Purchases of property, plant and
equipment
(1,922
)
(325
)
Proceeds from the sale of property, plant
and equipment
6
19,908
Acquisition, net of cash and cash
equivalents acquired
(34,938
)
—
Net cash (used in) provided by investing
activities
(36,854
)
19,583
Financing Activities
Proceeds from the exercise of stock
options
539
111
Repurchase of common stock
—
(4,115
)
Payments on long-term debt
(949
)
(4,851
)
Borrowings on long-term debt
12,000
—
Net cash provided by (used in) financing
activities
11,590
(8,855
)
Effect of Exchange Rate Changes on
Cash, Cash Equivalents and Restricted Cash
(155
)
(441
)
Net (Decrease) Increase in Cash, Cash
Equivalents and Restricted Cash
(32,569
)
15,377
Cash and Cash Equivalents, Beginning of
Period
46,874
32,836
Cash, Cash Equivalents and Restricted
Cash, End of Period
$
14,305
$
48,213
AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
(Unaudited)
Reconciliation of GAAP to Non-GAAP
Financial Measures
(in thousands, except per share
data)
Three Months Ended
Nine Months Ended June
30,
June 30, 2023
March 31, 2023
June 30, 2022
2023
2022
Amtech Systems, Inc. Operating Income
(Loss):
GAAP operating (loss) income
$
(1,119
)
$
519
$
9,562
$
(3,280
)
$
13,397
Acquisition expenses
272
1,524
-
3,242
-
Amortization of acquired intangible
assets
1,025
945
-
1,970
-
Stock compensation expense
190
174
146
528
386
Gain on sale of fixed assets
-
-
(12,465
)
-
(12,465
)
Severance expense
-
-
-
400
-
Non-GAAP operating income (loss)
$
368
$
3,162
$
(2,757
)
$
2,860
$
1,318
GAAP operating margin
(3.6
)%
1.6
%
47.9
%
(3.8
)%
18.1
%
Non-GAAP operating margin
1.2
%
9.5
%
(13.8
)%
3.3
%
1.8
%
Consolidated Net Income (Loss):
GAAP net (loss) income
$
(1,027
)
$
3,204
$
10,222
$
(567
)
$
13,184
Acquisition expenses
272
1,524
-
3,242
-
Amortization of acquired intangible
assets
1,025
945
-
1,970
-
Stock compensation expense
190
174
146
528
386
Gain on sale of fixed assets
-
-
(12,465
)
-
(12,465
)
Severance expense
-
-
-
400
-
Income tax benefit related to
acquisition
(182
)
(3,164
)
-
(3,346
)
-
Non-GAAP net income (loss)
$
278
$
2,683
$
(2,097
)
$
2,227
$
1,105
Net Income (Loss) per Diluted
Share:
GAAP net (loss) income per diluted
share
$
(0.07
)
$
0.23
$
0.73
$
(0.04
)
$
0.93
Acquisition expenses
0.02
0.11
-
0.23
-
Amortization of acquired intangible
assets
0.07
0.06
-
0.14
-
Stock compensation expense
0.01
0.01
0.01
0.04
0.03
Gain on sale of fixed assets
-
-
(0.89
)
-
(0.88
)
Severance expense
-
-
-
0.03
-
Income tax benefit related to
acquisition
(0.01
)
(0.22
)
-
(0.24
)
-
Non-GAAP net income (loss) per diluted
share
$
0.02
$
0.19
$
(0.15
)
$
0.16
$
0.08
Semiconductor Segment Operating Income
(Loss):
GAAP operating income
$
1,042
$
2,950
$
10,521
$
4,861
$
16,246
Acquisition expenses
-
-
-
-
-
Amortization of acquired intangible
assets
-
-
-
-
-
Stock compensation expense
-
-
-
-
-
Gain on sale of fixed assets
-
-
(12,465
)
-
(12,465
)
Severance expense
-
-
-
-
-
Non-GAAP operating income (loss)
$
1,042
$
2,950
$
(1,944
)
$
4,861
$
3,781
Material and Substrate Segment
Operating Income:
GAAP operating income
$
481
$
297
$
1,156
$
1,411
$
1,991
Acquisition expenses
-
696
-
696
-
Amortization of acquired intangible
assets
1,025
945
-
1,970
-
Stock compensation expense
-
-
-
-
-
Gain on sale of fixed assets
-
-
-
-
-
Severance expense
-
-
-
-
-
Non-GAAP operating income
$
1,506
$
1,938
$
1,156
$
4,077
$
1,991
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230809361607/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)
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