TEMPE, Ariz., Feb. 7, 2019
/PRNewswire/ -- Amtech Systems, Inc. (NASDAQ: ASYS), a manufacturer
of capital equipment, including thermal processing and wafer
handling automation, and related consumables used in fabricating
semiconductor devices, light-emitting diodes, or LEDs, silicon
carbide (SiC) and silicon power chips and solar cells, today
reported results for its first quarter ended December 31,
2018.
First Quarter Fiscal 2019 Financial and Operational
Highlights:
- Net revenues of $29.5 million
(Combined Semi and SiC/LED* $21.9M,
Solar $7.5M)
- Net loss of $2.4 million,
including restructuring expense of $0.9
million
- Loss per share of $0.17
- Customer orders of $24.7 million
(Combined Semi and SiC/LED* $19.8M,
Solar $4.9M)
- December 31, 2018 backlog of
$41.3 million (Combined Semi and
SiC/LED* $21.6M, Solar $19.7M)
- Book to bill ratio of 0.9:1 (Combined Semi and SiC/LED* 0.9:1,
Solar 0.7:1)
- Unrestricted cash of $56.0
million
Mr. J.S. Whang, Executive Chairman and Chief Executive Officer
of Amtech, commented, "We are pleased to announce that our Semi and
SiC/LED segments delivered combined operating income of
$3.5 million. However, our first
quarter financial results show the negative impact from our Solar
segment operating loss. We have undergone a review of the many
factors impacting our advanced-technology solar solutions business
and are currently aligning our solar operations with what we expect
to be a low demand sales environment for the foreseeable
future."
Mr. Whang continued, "As we continue our overall review of our
business, our focus is on generating positive cash flow and
profitable growth. The semi business, although cyclical,
serves markets where there is ongoing strong demand and growth
opportunities for our products. And, in select markets, we
have the potential to significantly outperform the broader market's
pace of growth. Over the longer term, we look to grow our
business through organic innovation and strategic external
opportunities that further expand our business and can deliver
results that best position our company to enhance value for our
stakeholders. We believe our combined Semi and SiC/LED
polishing business provides significant opportunity to enhance the
value of Amtech Group in the near and longer terms."
Net revenue for the first quarter of fiscal 2019 was
$29.5 million compared to
$28.8 million in the preceding
quarter and $73.6 million in the
first quarter of fiscal 2018. Sequentially, revenue for Semi and
SiC/LED was down slightly, which was more than offset by higher
Solar revenue as we began shipments for the previously announced
TOPCon order. Compared to the prior year quarter, net revenue
decreased due primarily to lower shipments of solar equipment for
the turnkey project. Our semiconductor shipments are affected by
the cyclical nature of the semiconductor industry and also
experience quarter-to-quarter variability based on the timing of
orders and the delivery schedules established by one of our
customers. In December 2018, we
were notified by our turnkey customer that the contract for Phase
II has been terminated. As a result, we will not perform the final
installation and integration of our equipment. Final settlement of
the contract is under review. We have removed from backlog the
deferred revenue related to this remaining work and do not expect
any future orders relating to this project.
Unrestricted cash and cash equivalents at December 31, 2018
were $56.0 million, compared to
$58.3 million at September 30,
2018.
At December 31, 2018, our total backlog was $41.3 million (Semi and SiC/LED* segments
$21.6 million, Solar segment
$19.7 million), compared to total
backlog of $51.1 million (Semi and
SiC/LED* segments $23.7 million,
Solar segment $27.4 million) at
September 30, 2018. Backlog includes deferred revenue
and customer orders that are expected to ship within the next 12
months.
Gross margin in the first quarter of fiscal 2019 was 31%,
compared to 29% in the preceding quarter and 28% in the first
quarter of fiscal 2018. Sequentially and compared to prior
year, gross margin increased, primarily due to a higher margin
product mix with a greater proportion of Semi and SiC/LED shipments
and increased recognition of previously deferred profit.
Selling, general and administrative expense ("SG&A") in the
first quarter of fiscal 2019 was $8.2
million, compared to $7.9
million in the preceding quarter and $10.6 million in the first quarter of fiscal
2018. Sequentially, SG&A increased primarily due to legal
expenses relating to our restructuring efforts in our Solar
segment. SG&A decreased compared to prior year because
our Solar segment incurred higher commissions, freight, personnel
and other expenses related to the shipment of the equipment for
Phase II and commencement of installation of the turnkey project
incurred in the first quarter of fiscal 2018.
Restructuring expense was $0.9
million in the first quarter of fiscal 2019 and the fourth
quarter of fiscal 2018. We did not have any restructuring expense
in the first quarter of fiscal 2018.
Research, development and engineering (RD&E) expense was
$1.9 million in the first quarter of
fiscal 2019 compared to $1.5 million
in the preceding quarter and $2.0
million in the first quarter of fiscal 2018.
Income tax expense in the first quarter of fiscal 2019 was
$0.6 million compared to $0.4 million in the preceding quarter and
$1.2 million in the first quarter of
fiscal 2018.
Net loss for the first quarter of fiscal 2019 was $2.4 million, or $0.17 per share, compared to net income of
$6.5 million, or $0.42 per diluted share for the first quarter of
fiscal 2018 and net loss of $9.0
million or $0.61 per share in
the preceding quarter, as we continued to incur costs but no
revenue related to the turnkey project. The net loss in the
fourth quarter of fiscal 2018 was primarily due to the $7.0 million non-cash impairment charge in the
Solar segment.
*Note: SiC/LED (silicon carbide) refers to our Polishing
segment. Combined Semi and SiC/LED refers to the sum of our
Semiconductor and SiC/LED segments. Solar refers to our Solar
segment, which includes products sold for semiconductor
applications of no more than 25% of the segment's totals. The
Combined Semi and SiC/LED amounts above are non-GAAP measures, as
they are a subtotal of two separate segments. These non-GAAP
financial measures are not prepared in accordance with GAAP and may
be different from non-GAAP financial measures presented by other
companies. Non-GAAP financial measures should not be considered as
a substitute for, or superior to, measures of financial performance
prepared in accordance with GAAP. A tabular reconciliation of
financial measures prepared in accordance with GAAP to the non-GAAP
financial measures is included in the Summary Financial Information
table in this press release.
Outlook
The Company expects revenues for the quarter ending March 31, 2019 to be in the range of $27 to $29 million.
Gross margin for the quarter ending March
31, 2019 is expected to be in the mid to upper 20 percent
range, with operating margin expected to remain negative due to the
continuing headwinds faced by the Solar segment.
The solar and semiconductor equipment industries can be cyclical
and inherently impacted by changes in market
demand. Additionally, operating results can be significantly
impacted, positively or negatively, by the timing of orders, system
shipments, and recognition of revenue based on customer
acceptances, the net impact of revenue deferral on shipments and
the financial results of solar and semiconductor manufacturers.
A substantial portion of Amtech's revenues are denominated in
Euros and Renminbis. The revenue outlook provided in this
press release is based on an assumed exchange rate between the
United States Dollar and the Euro and the Renminbi. A
significant decrease in the value of the Euro and/or Renminbi in
relation to the United States Dollar could cause actual revenues to
be lower than anticipated.
Conference Call
Amtech Systems will host a conference call and webcast today at
5:00 p.m. ET to discuss first quarter
financial results. Those in the USA wishing to participate in the live call
should dial (844) 868-9329. From Canada, dial (866) 605-3852, and
internationally, dial (412) 317-6703. Request "Amtech" when
connected to the operator. A replay of the call will be
available one hour after the end of the conference call through
February 14, 2019. To access
the replay please dial US toll free (877) 344-7529 and enter code
10128097. Internationally, dial (412) 317-0088 and use the
same code. A live and archived web cast of the conference
call can be accessed in the investor relations section of Amtech's
website at www.amtechsystems.com.
About Amtech Systems, Inc.
Amtech Systems, Inc. is a global supplier of advanced thermal
processing and polishing equipment and related consumables to the
semiconductor / electronics, power IC businesses, solar, and
advanced lighting manufacturing markets. Amtech's equipment
includes diffusion, solder reflow systems. wafer handling
automation, ALD and PECVD systems and polishing equipment and
related consumables for surface preparation of various materials,
including silicon carbide ("SiC"), sapphire and silicon. The
Company's wafer handling, thermal processing, polishing and
consumable products currently address the diffusion, oxidation, and
deposition steps used in the fabrication of semiconductors, printed
circuit boards, semiconductor packaging, solar cells, MEMS, and
advanced lighting, including the polishing of newly sliced sapphire
and silicon wafers. Amtech's products are recognized under the
leading brand names BTU International, Bruce
TechnologiesTM, PR HoffmanTM, Tempress
SystemsTM, R2D AutomationTM and SoLayTec.
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).
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
greater China sourcing. In
some cases, forward-looking statements can be identified by
terminology such as "may," "will," "should," "would," "expects,"
"plans," "anticipates," "intends," "believes," "estimates,"
"predicts," "potential," "continue," 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, 2018, 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 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.
Contacts:
|
|
|
|
|
|
Amtech Systems,
Inc.
Robert T.
Hass
Chief Financial
Officer
(480)
967-5146
irelations@amtechsystems.com
|
Christensen
Investor
Relations
Patty
Bruner
(480)
201-6075
pbruner@christensenir.com
|
AMTECH SYSTEMS,
INC.
|
(NASDAQ:
ASYS)
|
February 7,
2019
|
(Unaudited)
|
|
Summary Financial
Information
|
(in thousands,
except percentages and ratios)
|
|
|
|
|
|
Three Months
Ended
|
|
December 31,
2018
|
September 30,
2018
|
December 31,
2017
|
Amtech Systems,
Inc.
|
|
|
|
Revenues, net of returns and allowances
|
$
|
29,453
|
|
$
|
28,832
|
|
$
|
73,611
|
|
Gross
profit
|
$
|
9,125
|
|
$
|
8,496
|
|
$
|
20,337
|
|
Gross
margin
|
31
|
%
|
29
|
%
|
28
|
%
|
Operating (loss) income
|
$
|
(1,916)
|
|
$
|
(8,848)
|
|
$
|
7,766
|
|
New
orders
|
$
|
24,704
|
|
$
|
40,420
|
|
$
|
37,325
|
|
Book-to-bill ratio
|
0.9:1
|
|
1.4:1
|
|
0.5:1
|
|
Backlog
|
$
|
41,278
|
|
$
|
51,101
|
|
$
|
65,851
|
|
Semiconductor
Segment
|
|
|
|
Revenues, net of returns and allowances
|
$
|
18,960
|
|
$
|
19,218
|
|
$
|
20,891
|
|
Gross
profit
|
$
|
7,490
|
|
$
|
7,238
|
|
$
|
7,488
|
|
Gross
margin
|
40
|
%
|
38
|
%
|
36
|
%
|
Operating income
|
$
|
2,745
|
|
$
|
2,726
|
|
$
|
3,004
|
|
New
orders
|
$
|
16,094
|
|
$
|
19,478
|
|
$
|
25,292
|
|
Book-to-bill ratio
|
0.8:1
|
|
1.0:1
|
|
1.2:1
|
|
Backlog
|
$
|
18,158
|
|
$
|
21,023
|
|
$
|
23,720
|
|
Solar
Segment
|
|
|
|
Revenues, net of returns and allowances
|
$
|
7,510
|
|
$
|
6,573
|
|
$
|
49,197
|
|
Gross
profit
|
$
|
411
|
|
$
|
344
|
|
$
|
11,313
|
|
Gross
margin
|
5
|
%
|
5
|
%
|
23
|
%
|
Operating (loss) income
|
$
|
(2,804)
|
|
$
|
(10,413)
|
|
$
|
5,352
|
|
New
orders
|
$
|
4,866
|
|
$
|
16,712
|
|
$
|
7,332
|
|
Book-to-bill ratio
|
0.7:1
|
|
2.7:1
|
|
0.1:1
|
|
Backlog
|
$
|
19,664
|
|
$
|
27,383
|
|
$
|
39,267
|
|
SiC/LED
Segment
|
|
|
|
Revenues, net of returns and allowances
|
$
|
2,983
|
|
$
|
3,041
|
|
$
|
3,523
|
|
Gross
profit
|
$
|
1,224
|
|
$
|
914
|
|
$
|
1,536
|
|
Gross
margin
|
41
|
%
|
30
|
%
|
44
|
%
|
Operating income
|
$
|
769
|
|
$
|
520
|
|
$
|
1,104
|
|
New
orders
|
$
|
3,744
|
|
$
|
4,230
|
|
$
|
4,701
|
|
Book-to-bill ratio
|
1.3:1
|
|
1.4:1
|
|
1.3:1
|
|
Backlog
|
$
|
3,456
|
|
$
|
2,695
|
|
$
|
2,864
|
|
AMTECH SYSTEMS,
INC.
|
(NASDAQ:
ASYS)
|
February 7,
2019
|
(Unaudited)
|
|
Condensed
Consolidated Statements of Operations
|
(in thousands,
except per share data)
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
2018
|
|
2017
|
Revenues, net of
returns and allowances
|
$
|
29,453
|
|
|
$
|
73,611
|
|
Cost of
sales
|
20,328
|
|
|
53,274
|
|
Gross
profit
|
9,125
|
|
|
20,337
|
|
|
|
|
|
Selling, general and
administrative
|
8,221
|
|
|
10,580
|
|
Research, development
and engineering
|
1,946
|
|
|
1,991
|
|
Restructuring
charges
|
874
|
|
|
—
|
|
Operating (loss)
income
|
(1,916)
|
|
|
7,766
|
|
|
|
|
|
Loss from equity
method investment
|
—
|
|
|
(26)
|
|
Interest and other
income (expense), net
|
144
|
|
|
(48)
|
|
(Loss) Income before
income taxes
|
(1,772)
|
|
|
7,692
|
|
Income tax
provision
|
600
|
|
|
1,240
|
|
Net (loss)
income
|
$
|
(2,372)
|
|
|
$
|
6,452
|
|
|
|
|
|
(Loss) Income Per
Share:
|
|
|
|
Basic (loss) income
per share attributable to Amtech shareholders
|
$
|
(0.17)
|
|
|
$
|
0.44
|
|
Weighted average
shares outstanding
|
14,220
|
|
|
14,781
|
|
Diluted (loss) income
per share attributable to Amtech shareholders
|
$
|
(0.17)
|
|
|
$
|
0.42
|
|
Weighted average
shares outstanding
|
14,220
|
|
|
15,298
|
|
AMTECH SYSTEMS,
INC.
|
(NASDAQ:
ASYS)
|
February 7,
2019
|
(unaudited)
|
|
Condensed
Consolidated Balance Sheets
|
(in thousands,
except share data)
|
|
|
|
December 31,
2018
|
|
September 30,
2018
|
Assets
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
55,969
|
|
|
$
|
58,331
|
|
Restricted
cash
|
|
5,009
|
|
|
4,165
|
|
Accounts
receivable
|
|
|
|
|
Trade (less allowance
for doubtful accounts of $1,358 and $1,407 at December 31, 2018,
and September 30, 2018, respectively)
|
|
23,137
|
|
|
20,475
|
|
Unbilled and
other
|
|
—
|
|
|
12,749
|
|
Inventory
|
|
23,808
|
|
|
24,710
|
|
Contract
assets
|
|
4,601
|
|
|
—
|
|
Other current
assets
|
|
3,688
|
|
|
3,860
|
|
Total current
assets
|
|
116,212
|
|
|
124,290
|
|
Property, Plant
and Equipment - Net
|
|
16,148
|
|
|
16,452
|
|
Intangible Assets
- Net
|
|
1,066
|
|
|
1,130
|
|
Goodwill -
Net
|
|
6,633
|
|
|
6,633
|
|
Other
Assets
|
|
864
|
|
|
901
|
|
Total
Assets
|
|
$
|
140,923
|
|
|
$
|
149,406
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts
payable
|
|
$
|
11,828
|
|
|
$
|
11,374
|
|
Accrued compensation
and related taxes
|
|
7,041
|
|
|
7,394
|
|
Accrued warranty
expense
|
|
944
|
|
|
1,040
|
|
Other accrued
liabilities
|
|
3,876
|
|
|
4,239
|
|
Current maturities of
long-term debt
|
|
378
|
|
|
374
|
|
Contract
liabilities
|
|
12,236
|
|
|
18,369
|
|
Income taxes
payable
|
|
2,913
|
|
|
2,353
|
|
Total current
liabilities
|
|
39,216
|
|
|
45,143
|
|
Long-Term
Debt
|
|
7,878
|
|
|
7,960
|
|
Income Taxes
Payable
|
|
3,481
|
|
|
3,213
|
|
Total
Liabilities
|
|
50,575
|
|
|
56,316
|
|
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: 14,227,580 and 14,216,596 at December 31, 2018, and
September 30, 2018, respectively
|
|
142
|
|
|
142
|
|
Additional paid-in
capital
|
|
124,522
|
|
|
124,316
|
|
Accumulated other
comprehensive loss
|
|
(10,550)
|
|
|
(9,974)
|
|
Retained
deficit
|
|
(23,766)
|
|
|
(21,394)
|
|
Total shareholders'
equity
|
|
90,348
|
|
|
93,090
|
|
Total Liabilities
and Shareholders' Equity
|
|
$
|
140,923
|
|
|
$
|
149,406
|
|
AMTECH SYSTEMS,
INC.
|
(NASDAQ:
ASYS)
|
February 7,
2019
|
(unaudited)
|
|
Condensed
Consolidated Statements of Cash Flows
|
(in
thousands)
|
|
Three Months Ended
December 31,
|
|
2018
|
|
2017
|
Operating
Activities
|
|
|
|
Net (loss)
income
|
$
|
(2,372)
|
|
|
$
|
6,452
|
|
Adjustments to
reconcile net (loss) income to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
443
|
|
|
471
|
|
Write-down of
inventory
|
557
|
|
|
41
|
|
Capitalized
interest
|
106
|
|
|
143
|
|
Deferred income
taxes
|
7
|
|
|
(7)
|
|
Non-cash share-based
compensation expense
|
169
|
|
|
253
|
|
Loss from equity
method investment
|
—
|
|
|
26
|
|
Provision for
allowance for doubtful accounts, net
|
44
|
|
|
48
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(2,568)
|
|
|
(8,869)
|
|
Inventory
|
228
|
|
|
7,558
|
|
Contract and other
assets
|
7,939
|
|
|
6,974
|
|
Accounts
payable
|
520
|
|
|
(1,255)
|
|
Accrued income
taxes
|
831
|
|
|
1,087
|
|
Accrued and other
liabilities
|
(684)
|
|
|
731
|
|
Contract
liabilities
|
(5,866)
|
|
|
(28,275)
|
|
Net cash used in
operating activities
|
(646)
|
|
|
(14,622)
|
|
Investing
Activities
|
|
|
|
Purchases of
property, plant and equipment
|
(152)
|
|
|
(93)
|
|
Net cash used in
investing activities
|
(152)
|
|
|
(93)
|
|
Financing
Activities
|
|
|
|
Proceeds from the
exercise of stock options
|
37
|
|
|
1,199
|
|
Payments on long-term
debt
|
(95)
|
|
|
(89)
|
|
Net cash (used in)
provided by financing activities
|
(58)
|
|
|
1,110
|
|
Effect of Exchange
Rate Changes on Cash, Cash Equivalents and Restricted
Cash
|
(662)
|
|
|
453
|
|
Net Decrease in
Cash, Cash Equivalents and Restricted Cash
|
(1,518)
|
|
|
(13,152)
|
|
Cash, Cash
Equivalents and Restricted Cash, Beginning of Period
|
62,496
|
|
|
75,761
|
|
Cash, Cash
Equivalents and Restricted Cash, End of Period
|
$
|
60,978
|
|
|
$
|
62,609
|
|
View original
content:http://www.prnewswire.com/news-releases/amtech-reports-first-quarter-fiscal-2019-results-300792033.html
SOURCE Amtech Systems, Inc.