Amtech : Earnings Release FY 2024

Published: 2024-12-09 16:21:45 ET ASYS

December 9, 2024

Amtech Reports Fourth Quarter and Year End Fiscal 2024 Results

TEMPE, Ariz.--(BUSINESS WIRE)-- Amtech Systems, Inc. ("Amtech") (NASDAQ: ASYS), a manufacturer of equipment and consumables for semiconductor fabrication and packaging, today reported results for its fourth quarter and fiscal year ended September 30, 2024.

Fourth Quarter Fiscal 2024 Financial and Operational Results:

Net revenue of $24.1 million

GAAP net loss of $0.5 million

Non-GAAP net loss of $7.0 thousand (1)

Adjusted EBITDA $0.8 million (1)

Customer orders of $17.6 million

Fiscal 2024 Financial and Operational Results:

Net revenue of $101.2 million

Cash of $11.1 million

Cash provided by operations of $9.8 million

Fully repaid $10.7 million on debt agreement

GAAP net loss of $8.5 million

Non-GAAP net income of $43.0 thousand (1)

Adjusted EBITDA $4.0 million (1)

Customer orders of $79.3 million

Backlog of $25.3 million

"We are pleased to report that in the fourth quarter, our strategic focus on aligning our cost structure with prevailing market conditions enabled us to achieve our fourth consecutive quarter of positive adjusted EBITDA and operating cash flow. Additionally, our strengthened cash position allowed us to fully pay off our remaining debt during the quarter. While we continue to navigate a challenging market environment, we have added resources focused on expanding our product offerings and customer base in higher-margin segments, positioning us to drive future growth," commented Mr. Bob Daigle, Chief Executive Officer of Amtech.

GAAP and Non-GAAP Financial Results

(in millions, except per share amounts) Q4

Months

2024

2023

Revenues, net

2024

2023

24.1

26.7

27.7

101.2

113.3

GAAP gross profit

9.8

2.8

36.2

35.6

GAAP gross margin

40.7%

36.5%

10.1%

35.8%

31.4%

Non-GAAP gross profit (1)

9.8

8.9

37.5

41.7

Non-GAAP gross margin (1)

40.7%

36.5%

32.2%

37.1%

36.8%

GAAP net (loss) income

(0.5)

0.4

(12.0)

(8.5)

(12.6)

GAAP net (loss) income per diluted

(0.04)

0.03

(0.85)

(0.60)

(0.89)

Non-GAAP net (loss) income (1)

(0.0)

1.1

(2.5)

0.0

(0.3)

Non-GAAP net (loss) income per

diluted share (1)

(0.00)

0.08

(0.18)

0.00

(0.02)

(1) See GAAP to non-GAAP reconciliation in schedules following this release.

Net revenues decreased 10% sequentially and decreased 13% from the fourth quarter of fiscal 2023. The sequential decrease is primarily due to decreased sales of our diffusion furnaces, advanced packaging and wafer cleaning equipment, partially offset by increased reflow equipment, parts and services revenue. The decrease from prior year is primarily attributable to lower sales of our high temperature belt furnaces, partially offset by increased revenues from our advanced packaging and reflow equipment.

In the fourth quarter of fiscal 2024 our GAAP gross margin increased by $7 million dollars compared to the same prior year period. This is driven by better margin profiles and cost save this year while the fourth quarter of 2023 had $4.6 million intangible asset impairment charge, and the $1.5 million write-down of inventory related to the polishing equipment line. On a sequential basis, GAAP gross margin in our Thermal Processing Solutions segment was positively affected by product mix attributed to increased revenues for parts and services as well as improved material costs. GAAP gross margin in our Semiconductor Fabrication Solutions segment slightly decreased on a sequential basis due primarily to a less favorable product mix of consumables and equipment.

Selling, General & Administrative ("SG&A") expenses increased by approximately $0.6 million on a sequential basis and decreased $2.3 million compared to the prior year period. The sequential increase is due primarily to increased consulting, audit and IT expenses. Compared to the same prior year period, the decrease is due primarily to the $0.5 million intangible asset impairment charge and lower labor and labor-related expenses as a result of our cost reduction initiatives, as well as lower shipping expenses on lower revenues.

Research, Development and Engineering expenses increased $0.3 million sequentially and decreased $1.6 million compared to the same prior year period, with the sequential decrease due primarily to the timing of purchases related to specific projects in both segments, and the decrease from prior year attributable to development efforts in our Semiconductor Fabrication Solutions segment that did not recur.

GAAP net loss for the fourth quarter of fiscal 2024 was $0.5 million, or 4 cents per share. This compares to GAAP net income of $0.4 million, or 3 cents per share, for the preceding

quarter and GAAP net loss of $12.0 million, or 85 cents per share, for the fourth quarter of fiscal 2023.

Non-GAAP net loss for the fourth quarter of fiscal 2024 was $7,000, or 0 cents per share. This compares to non-GAAP net income of $1.1 million, or 8 cents per share, for the preceding quarter and non-GAAP net loss of $2.5 million, or 18 cents per share, for the fourth quarter of fiscal 2023.

Unrestricted cash and cash equivalents at September 30, 2024, were $11.1 million, compared to $13.1 million at September 30, 2023. Debt payments during the three months ended September 30, 2024 were $4.0 million, including the previously reported full repayment of our term loan and revolving credit facility. Net cash as of September 30, 2024 was $10.8 million compared to $2.4 million as of September 30, 2023.

In discussing financial results for the three months and year ended September 30, 2024 and 2023 and the three months ended June 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 first fiscal quarter ending December 31, 2024, we expect revenues in the range of $21 - 24 million with adjusted EBITDA nominally positive. Although the near-term outlook for revenue and earnings remains challenging, we remain confident that the future prospects are strong for both our consumables and equipment serving advanced mobility and advanced packaging applications. We took actions during the fiscal year, which will reduce Amtech's structural costs by approximately $7 million annually and better align product pricing with value. 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 Monday, December 9, 2024 to

discuss our fiscal fourth 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.htmshortly 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 thermal processing, wafer cleaning and chemical mechanical polishing (CMP) capital equipment and related consumables used in semiconductor, advanced mobility and renewable energy manufacturing applications. We sell process equipment and services used in the fabrication of semiconductor devices, such as silicon carbide (SiC), silicon power, electronic assemblies and modules to semiconductor device and module manufacturers worldwide, particularly in Asia, North America and Europe. Our strategic focus is on growth opportunities which leverage our strengths in thermal and substrate processing. Amtech's products are recognized under the leading brand names BTU International, Entrepix, Inc., 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, 2023, 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

September

June

September

30,

Amtech Systems, Inc.

2024

2023

Revenues, net

24,112

26,749

27,707

GAAP gross profit

9,803

9,758

2,794

Non-GAAP gross

profit

9,803

9,758

8,926

GAAP gross margin

41%

36%

10%

Non-GAAP gross

margin

41%

36%

32%

Operating income

(loss)

816

(11,690)

New orders

17,587

18,814

18,185

Backlog

25,312

31,837

51,794

Thermal Processing

Solutions Segment

Revenues, net

16,155

18,038

18,820

GAAP gross profit

6,756

6,313

7,374

Non-GAAP gross

profit

6,756

6,313

7,374

GAAP gross margin

42%

35%

39%

Non-GAAP gross

margin

42%

35%

39%

Operating income

2,530

1,690

2,046

New orders

9,328

10,801

10,834

Backlog

20,845

27,673

45,233

Semiconductor

Fabrication Solutions

Segment

Revenues, net

7,957

8,711

8,887

Years Ended

September 30,

2024 2023

37% 37%

35% 38%

$ 6,196 $ 6,907

$ 32,053 $ 35,720

GAAP gross profit

(loss)

3,047

3,445

(4,580)

Non-GAAP gross

profit

3,047

3,445

1,552

GAAP gross margin

38%

40%

(52)%

Non-GAAP gross

margin

38%

40%

17%

Operating income

(loss)

447

1,621

(10,176)

New orders

8,259

8,013

7,351

Backlog

4,467

4,164

6,561

AMTECH SYSTEMS, INC. (NASDAQ: ASYS) (Unaudited)

$ 11,962 $ 6,368

41% 35%

Consolidated Statements of Operations (in thousands, except per share data)

Three Months

Ended

Years Ended

September 30,

2024

2023

2024

2023

Revenue, net

24,112

$ 27,707

101,214

$113,315

Cost of sales

14,309

20,268

64,134

73,118

Intangible asset impairment

4,645

849

4,645

Gross profit

9,803

2,794

36,231

35,552

Selling, general and administrative

8,786

11,078

33,814

42,002

Research, development and engineering

991

2,597

4,193

7,311

Gain on sale of fixed assets

(2,197)

Goodwill impairment

6,370

Intangible asset impairment

544

430

544

Severance expense

265

350

665

Operating income (loss)

(11,690)

(6,729)

(14,970)

Interest income

366

Interest expense

(59)

(178)

(557)

(520)

Foreign currency loss

(340)

(30)

(345)

(89)

Other

Loss before income taxes

(299)

(11,876)

(7,511)

(15,182)

Income tax provision (benefit)

237

139

975

(2,600)

Net loss

(536)

$(12,015)

(8,486)

$ (12,582)

(Loss) Income Per Share:

Net (loss) income per basic share

(0.04)

(0.85)

(0.60)

(0.89)

Net (loss) income per diluted share

(0.04)

(0.85)

(0.60)

(0.89)

Weighted average shares outstanding:

Basic

14,239

14,166

14,208

14,065

Diluted

14,239

14,166

14,208

14,065

AMTECH SYSTEMS, INC.

(NASDAQ: ASYS)

(Unaudited)

Consolidated Balance Sheets

(in thousands, except share data)

September September

30,

2024

2023

Current Assets

Cash and cash equivalents

11,086

13,133

Accounts receivable - Net

21,989

26,474

Inventories

26,867

34,845

Income taxes receivable

132

632

Other current assets

4,302

6,105

Total current assets

64,376

81,189

Property, Plant and Equipment - Net

11,647

9,695

Right-of-Use Assets - Net

16,596

11,217

Intangible Assets - Net

4,004

6,114

Goodwill

21,261

27,631

Deferred Income Taxes - Net

185

101

Other Assets

884

1,074

Total Assets

118,953

137,021

Liabilities and Shareholders' Equity

Current Liabilities

Accounts payable

5,356

10,815

Accrued compensation and related taxes

2,057

3,481

Accrued warranty expense

602

965

Other accrued liabilities

477

1,551

Current portion of finance lease liabilities and long-term debt

101

2,265

Current portion of long-term operating lease liabilities

2,041

2,623

Contract liabilities

8,965

8,018

Total current liabilities

19,599

29,718

Finance Lease Liabilities and Long-Term Debt

189

8,422

Long-Term Operating Lease Liabilities

15,240

8,894

Income Taxes Payable

1,510

1,575

Other Long-Term Liabilities

Total Liabilities

36,595

48,656

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;

issued and outstanding: 14,258,879 and 14,185,977 in

2024 and 2023, respectively

143

142

Additional paid-in capital

128,466

126,963

Accumulated other comprehensive loss

(720)

(1,695)

Retained deficit

(45,531)

(37,045)

Total Shareholders' Equity

82,358

88,365

Total Liabilities and Shareholders' Equity

118,953

137,021

AMTECH SYSTEMS, INC.

(NASDAQ: ASYS)

(Unaudited)

Consolidated Statements of Cash Flows

(in thousands)

Years Ended

September 30,

2024

2023

Operating Activities

Net (loss) income

(8,486)

(12,582)

Adjustments to reconcile net (loss) income to net cash provided

by (used in) operating activities:

Depreciation and amortization

3,029

5,012

Write-down of inventory

2,813

2,620

Non-cash intangible asset impairment

7,649

5,189

Provision for allowance for doubtful accounts

Deferred income taxes

(84)

(2,513)

Non-cash stock-based compensation expense

1,530

1,272

Gain on sale of fixed assets

(2,197)

Other, net

196

Changes in operating assets and liabilities:

Accounts receivable

4,468

4,410

Inventories

5,135

(6,294)

Contract and other assets Accounts payable Accrued income taxes Accrued and other liabilities Contract liabilities

Net cash provided by (used in) operating activities

Investing Activities

Purchases of property, plant and equipment Acquisitions, net of cash and cash equivalents acquired Proceeds from sale of property, plant and equipment

Net cash (used in) provided by investing activities

Financing Activities

Proceeds from the exercise of stock options Repurchase of common stock Payments on long-term debt Borrowings on long-term debt

Payment of payroll taxes on stock-based compensation through shares withheld

Net cash (used in) provided by financing activities

Effect of Exchange Rate Changes on Cash and Cash Equivalents

Net (Decrease) Increase in Cash and Cash Equivalents Cash and Cash Equivalents, Beginning of Year

Cash, Cash Equivalents and Restricted Cash, End of Year

AMTECH SYSTEMS, INC. (NASDAQ: ASYS) (Unaudited)

Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except per share data)

Three Months Ended

June

September

30,

Amtech Systems, Inc.

30, 2024

2024

2023

Gross Profit:

GAAP gross profit

9,803

$ 9,758

2,794

Write-down of inventory

related to polishing

equipment

1,487

4,773 (529)

(4,942) 1,459

(4,878) (2,898)

(2,178) (37,830)

(10,671) (1,497)

922 52

(2,047) (33,741)

13,133 46,874

Years Ended

September 30,

2024 2023

$ 36,231

$ 35,552

448 1,487

Intangible asset impairment

Non-GAAP gross profit $

GAAP gross margin Non-GAAP gross margin

Thermal Processing

Solutions Segment

Gross Profit:

GAAP gross profit

Write-down of inventory

related to polishing

equipment

Intangible asset

impairment

Non-GAAP gross profit

GAAP gross margin Non-GAAP gross margin

Semiconductor Fabrication Solutions Segment Gross Profit (Loss):

GAAP gross profit (loss) $ Write-down of inventory related to polishing equipment

Intangible asset impairment

Non-GAAP gross profit $

GAAP gross margin Non-GAAP gross margin

AMTECH SYSTEMS, INC. (NASDAQ: ASYS) (Unaudited)

4,645

9,803

$ 9,758

8,926

41%

36%

10%

41%

36%

32%

6,756

$ 6,313

7,374

6,756

$ 6,313

7,374

42%

35%

39%

42%

35%

39%

3,047

$ 3,445

(4,580)

1,487

4,645

3,047

$ 3,445

1,552

38%

40%

(52)%

38%

40%

17%

849

4,645

$ 37,528

$ 41,684

36% 31%

37% 37%

$ 24,269

$ 29,184

$ 24,269

$ 29,184

35% 38%

$ 11,962

$ 6,368

448

1,487

849

4,645

$ 13,259

$ 12,500

37% 18%

41% 35%

Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except per share data)

Disclaimer

Amtech Systems Inc. published this content on December 09, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on December 09, 2024 at 21:21:45.183.