TEMPE, Ariz., Aug. 9, 2018
/PRNewswire/ -- Amtech Systems, Inc. (NASDAQ: ASYS), a global
manufacturer and supplier of advanced thermal processing and
polishing equipment and related consumables to the semiconductor /
electronics, power IC businesses, solar, and advanced lighting
markets, today reported results for its third quarter ended
June 30, 2018.
Third Quarter Fiscal 2018 Financial and Operational
Highlights:
- Net revenues of $41.2 million
(Combined Semi and LED/SiC* $27.1M,
Solar $14.1M)
- Net income of $5.0 million
- Diluted earnings per share of $0.33
- Customer orders of $26.2 million
(Combined Semi and LED/SiC* $21.2M,
Solar $5.0M)
- June 30, 2018 backlog of
$41.2 million (Combined Semi and
LED/SiC* $22.3M, Solar $19.0M)
- Book to bill ratio of 0.7:1 (Combined Semi and LED/SiC* 0.8:1,
Solar 0.4:1)
- Unrestricted cash of $48.7
million
Year-To-Date (9 Months) Fiscal 2018 Financial and Operational
Highlights:
- Net revenues of $147.6 million
(Combined Semi and LED/SiC* $71.7M,
Solar $75.9M)
- Net income of $14.3 million
- Diluted earnings per share of $0.94
- Customer orders of $92.3 million
(Combined Semi and LED/SiC* $72.9M,
Solar $19.4M)
- Book to bill ratio of 0.6:1 (Combined Semi and LED/SiC* 1.0:1,
Solar 0.3:1)
Mr. Fokko Pentinga, Chief
Executive Officer of Amtech, commented, "We are pleased to report
third quarter consolidated revenue grew by more than 25%, resulting
in improved operating profit compared to the second quarter. Our
combined Semiconductor and LED/SiC* segments, representing 66% of
total company third quarter sales, delivered revenue growth of
34.1% sequentially, 44.1% year-over-year, and record combined
operating profits. The significant drivers of this growth and
related operating profits are the demand we are seeing in certain
markets including automotive, consumer and industrial electronics,
including sensors, power chips, the internet of things ("IoT")
devices, and advanced lighting. In our solar business, recent
changes in China's domestic solar
policies have slowed cell capacity expansion plans. However,
we believe follow-on orders for the next phases of the large 1 GW+
turnkey project will be received in the next few quarters and look
to participate in other selective growth opportunities as we serve
core customers over the long term."
Net revenue for the third quarter of fiscal 2018 was
$41.2 million compared to
$32.8 million in the preceding
quarter and $47.8 million in the
third quarter of fiscal 2017. The sequential increase is primarily
due to increased shipments of our semiconductor equipment. Compared
to the prior year quarter, net revenue decreased due to lower
shipments of solar equipment for the turnkey project, partially
offset by significant increases in Semiconductor and LED/SiC
shipments.
Unrestricted cash and cash equivalents at June 30, 2018
were $48.7 million, compared to
$51.1 million at September 30,
2017.
At June 30, 2018, our total order backlog was $41.2 million (Semi and LED/SiC* segments
$22.3 million, Solar segment
$19.0 million), compared to total
backlog of $63.1 million (Semi and
LED/SiC* segments $28.2 million,
Solar segment $35.0 million) at
March 31, 2018. Backlog includes deferred revenue and
customer orders that are expected to ship within the next 12
months. We have excluded from reported backlog approximately
$5.8 million of solar customer orders
that are not expected to ship in the next twelve months.
Gross margin in the third quarter of fiscal 2018 was 35%,
compared to 36% in the preceding quarter and 32% in the third
quarter of fiscal 2017. Sequentially, gross margin was
relatively flat, with product mix changes increasing solar gross
margin and decreasing semiconductor gross margin. Compared to the
prior year quarter, gross margin on products from our Solar segment
increased due to recognition of previously deferred revenue, while
gross margin on products from our Semiconductor and LED/SiC
segments decreased due to product mix.
Selling, general and administrative expense ("SG&A") in the
third quarter of fiscal 2018 was $9.5
million, compared to $9.5
million in the preceding quarter and $10.1 million in the third quarter of fiscal
2017. The decrease in SG&A from the prior year quarter is
due primarily to decreased employee-related expenses, partially
offset by higher commissions and selling expenses related to higher
revenues in our Semiconductor segment.
Due to the ongoing challenges we are experiencing in our Solar
segment, we are implementing a restructuring plan ("the Plan").
Once fully implemented, we expect the Plan to reduce operating
costs by approximately $3 million on
an annualized basis. The Plan is to better align our
workforce with the current needs of our business and enhance our
competitive position for long-term success. Under the Plan,
we will reduce our Solar workforce by approximately 35-40
employees. We expect to record approximately $0.6 million to $0.8
million of related costs in the fourth quarter of fiscal
2018.
Research, development and engineering (RD&E) expense was
$2.1 million in the third quarter of
fiscal 2018 compared to $2.2 million
in the preceding quarter and $1.4
million in the third quarter of fiscal 2017.
Effective June 29, 2018, we sold
our remaining 15% ownership interest in Kingstone Technology Hong
Kong Limited for approximately $5.7
million. We recognized a gain of approximately
$2.9 million in the third quarter of
fiscal 2018 and recorded a short-term note receivable of
$5.7 million. The note is due
in August 2018.
Income tax in the third quarter of fiscal 2018 was an expense of
$1.4 million compared to a benefit of
$2.8 million in the preceding quarter
and expense of $1.0 million in the
third quarter of fiscal 2017. The tax benefit recorded in the
second quarter of fiscal 2018 is primarily due to the resolution of
an uncertain tax position.
Net income for the third quarter of fiscal 2018 was $5.0 million, or $0.33 per diluted share, compared to net income
of $3.3 million, or $0.25 per share for the third quarter of fiscal
2017 and net income of $2.8 million
or $0.19 per diluted share in the
preceding quarter.
*Note: LED/SiC (silicon carbide) refers to our Polishing
segment. Combined Semi and LED/SiC refers to the sum of our
Semiconductor and LED/SiC 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 LED/SiC 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 September 30, 2018 to be in the range of
$26 to $28
million. Gross margin for the quarter ending September 30, 2018 is expected to be in the upper
20 to lower 30 percent range, with operating margin negative,
partly due to expected restructuring costs in the quarter.
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 the net impact of revenue deferral on shipments,
recognition of revenue based on customer acceptances and the
financial results of solar and semiconductor manufacturers. The
results for the coming quarters will be significantly influenced by
the timing of future orders of the 1GW turnkey project and the
timing of meeting start-up milestones of the turnkey production
lines.
A substantial portion of Amtech's revenues are denominated in
Euros. The revenue outlook provided in this press release is
based on an assumed exchange rate between the United States Dollar
and the Euro. A significant decrease in the value of the Euro
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 third quarter
fiscal 2018 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
August 16, 2018. To access the
replay please dial US toll free (877) 344-7529 and enter code
10122655. 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, and plans and
objectives of Amtech and its management for future
operations. 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 or our management
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, as amended, that Amtech filed with the
Securities and Exchange Commission (the "SEC") for the year-ended
September 30, 2017, 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.
|
Christensen
|
|
Robert T.
Hass
|
Investor
Relations
|
|
Chief Financial
Officer
|
Patty
Bruner
|
|
(480)
967-5146
|
(480)
201-6075
|
|
irelations@Amtechsystems.com
|
pbruner@christensenir.com
|
AMTECH SYSTEMS,
INC.
|
(NASDAQ:
ASYS)
|
August 9,
2018
|
(Unaudited)
|
|
Summary Financial
Information
|
(in thousands,
except percentages and ratios)
|
|
|
|
|
|
Three Months
Ended
|
|
June 30,
2018
|
March 31,
2018
|
June 30,
2017
|
Amtech Systems,
Inc.
|
|
|
|
Revenues, net of returns and allowances
|
$
|
41,200
|
|
$
|
32,783
|
|
$
|
47,760
|
|
Gross
profit
|
$
|
14,599
|
|
$
|
11,725
|
|
$
|
15,502
|
|
Gross
margin
|
35
|
%
|
36
|
%
|
32
|
%
|
Operating income
|
$
|
2,936
|
|
$
|
65
|
|
$
|
3,971
|
|
New
orders
|
$
|
26,207
|
|
$
|
28,759
|
|
$
|
79,949
|
|
Book-to-bill ratio
|
0.7:1
|
|
0.9:1
|
|
1.7:1
|
|
Backlog
|
$
|
41,231
|
|
$
|
63,115
|
|
$
|
125,744
|
|
Semiconductor
Segment
|
|
|
|
Revenues, net of returns and allowances
|
$
|
23,472
|
|
$
|
16,582
|
|
$
|
15,951
|
|
Gross
profit
|
$
|
8,721
|
|
$
|
7,075
|
|
$
|
6,428
|
|
Gross
margin
|
37
|
%
|
43
|
%
|
40
|
%
|
Operating income
|
$
|
3,861
|
|
$
|
2,257
|
|
$
|
2,250
|
|
New
orders
|
$
|
17,871
|
|
$
|
19,227
|
|
$
|
23,354
|
|
Book-to-bill ratio
|
0.8:1
|
|
1.2:1
|
|
1.5:1
|
|
Backlog
|
$
|
20,764
|
|
$
|
26,366
|
|
$
|
26,966
|
|
Solar
Segment
|
|
|
|
Revenues, net of returns and allowances
|
$
|
14,134
|
|
$
|
12,598
|
|
$
|
28,981
|
|
Gross
profit
|
$
|
4,584
|
|
$
|
3,110
|
|
$
|
7,948
|
|
Gross
margin
|
32
|
%
|
25
|
%
|
27
|
%
|
Operating (loss) income
|
$
|
(85)
|
|
$
|
(1,903)
|
|
$
|
2,991
|
|
New
orders
|
$
|
5,029
|
|
$
|
7,000
|
|
$
|
54,203
|
|
Book-to-bill ratio
|
0.4:1
|
|
0.6:1
|
|
1.9:1
|
|
Backlog
|
$
|
18,960
|
|
$
|
34,955
|
|
$
|
98,223
|
|
LED/SiC
Segment
|
|
|
|
Revenues, net of returns and allowances
|
$
|
3,594
|
|
$
|
3,603
|
|
$
|
2,828
|
|
Gross
profit
|
$
|
1,294
|
|
$
|
1,540
|
|
$
|
1,126
|
|
Gross
margin
|
36
|
%
|
43
|
%
|
40
|
%
|
Operating income
|
$
|
938
|
|
$
|
1,111
|
|
$
|
738
|
|
New
orders
|
$
|
3,307
|
|
$
|
2,532
|
|
$
|
2,392
|
|
Book-to-bill ratio
|
0.9:1
|
|
0.7:1
|
|
0.8:1
|
|
Backlog
|
$
|
1,507
|
|
$
|
1,794
|
|
$
|
555
|
|
AMTECH SYSTEMS,
INC.
|
(NASDAQ:
ASYS)
|
August 9,
2018
|
(Unaudited)
|
|
Condensed
Consolidated Statements of Operations
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Nine Months Ended
June 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Revenues, net of
returns and allowances
|
$
|
41,200
|
|
|
$
|
47,760
|
|
|
$
|
147,594
|
|
|
$
|
109,839
|
|
Cost of
sales
|
26,601
|
|
|
32,258
|
|
|
100,933
|
|
|
77,499
|
|
Gross
profit
|
14,599
|
|
|
15,502
|
|
|
46,661
|
|
|
32,340
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
9,541
|
|
|
10,108
|
|
|
29,599
|
|
|
25,366
|
|
Research, development
and engineering
|
2,122
|
|
|
1,423
|
|
|
6,295
|
|
|
4,586
|
|
Operating
income
|
2,936
|
|
|
3,971
|
|
|
10,767
|
|
|
2,388
|
|
|
|
|
|
|
|
|
|
Gain on sale of other
assets
|
2,883
|
|
|
—
|
|
|
2,883
|
|
|
—
|
|
Income (loss) from
equity method investment
|
232
|
|
|
(110)
|
|
|
234
|
|
|
(200)
|
|
Interest and other
expense, net
|
310
|
|
|
(34)
|
|
|
224
|
|
|
(151)
|
|
Income before income
taxes
|
6,361
|
|
|
3,827
|
|
|
14,108
|
|
|
2,037
|
|
Income tax provision
(benefit)
|
1,390
|
|
|
986
|
|
|
(150)
|
|
|
1,270
|
|
Net
income
|
4,971
|
|
|
2,841
|
|
|
14,258
|
|
|
767
|
|
|
|
|
|
|
|
|
|
Add: net loss
attributable to noncontrolling interest
|
—
|
|
|
446
|
|
|
—
|
|
|
1,045
|
|
Net income
attributable to Amtech Systems, Inc.
|
$
|
4,971
|
|
|
$
|
3,287
|
|
|
$
|
14,258
|
|
|
$
|
1,812
|
|
|
|
|
|
|
|
|
|
Income Per
Share:
|
|
|
|
|
|
|
|
Basic income per
share attributable to Amtech shareholders
|
$
|
0.33
|
|
|
$
|
0.25
|
|
|
$
|
0.96
|
|
|
$
|
0.14
|
|
Weighted average
shares outstanding
|
14,925
|
|
|
13,242
|
|
|
14,867
|
|
|
13,203
|
|
Diluted income per
share attributable to Amtech shareholders
|
$
|
0.33
|
|
|
$
|
0.25
|
|
|
$
|
0.94
|
|
|
$
|
0.14
|
|
Weighted average
shares outstanding
|
15,091
|
|
|
13,398
|
|
|
15,181
|
|
|
13,288
|
|
AMTECH SYSTEMS,
INC.
|
(NASDAQ:
ASYS)
|
August 9,
2018
|
(unaudited)
|
|
Condensed
Consolidated Balance Sheets
|
(in thousands,
except share data)
|
|
|
June 30,
2018
|
|
September 30,
2017
|
Assets
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
48,729
|
|
|
$
|
51,121
|
|
Restricted
cash
|
|
6,876
|
|
|
24,640
|
|
Accounts
receivable
|
|
|
|
|
Trade (less allowance
for doubtful accounts of $1,441 and $866 at June 30, 2018, and
September 30, 2017, respectively)
|
|
27,627
|
|
|
22,519
|
|
Unbilled and
other
|
|
14,748
|
|
|
14,275
|
|
Inventories
|
|
22,590
|
|
|
30,210
|
|
Note
receivable
|
|
5,738
|
|
|
—
|
|
Vendor
deposits
|
|
1,802
|
|
|
11,806
|
|
Other
|
|
2,688
|
|
|
2,542
|
|
Total current
assets
|
|
130,798
|
|
|
157,113
|
|
Property, Plant
and Equipment - Net
|
|
16,314
|
|
|
15,792
|
|
Intangible Assets
- Net
|
|
3,039
|
|
|
3,495
|
|
Goodwill -
Net
|
|
11,342
|
|
|
11,405
|
|
Investments
|
|
—
|
|
|
2,615
|
|
Deferred Income
Taxes - Long-Term
|
|
—
|
|
|
200
|
|
Other Assets -
Long-Term
|
|
948
|
|
|
1,003
|
|
Total
Assets
|
|
$
|
162,441
|
|
|
$
|
191,623
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts
payable
|
|
$
|
12,579
|
|
|
$
|
21,555
|
|
Accrued compensation
and related taxes
|
|
6,539
|
|
|
7,592
|
|
Accrued warranty
expense
|
|
1,223
|
|
|
1,254
|
|
Other accrued
liabilities
|
|
3,077
|
|
|
2,056
|
|
Customer
deposits
|
|
15,065
|
|
|
48,784
|
|
Current maturities of
long-term debt
|
|
371
|
|
|
361
|
|
Deferred
profit
|
|
3,560
|
|
|
4,081
|
|
Income taxes
payable
|
|
2,246
|
|
|
286
|
|
Total current
liabilities
|
|
44,660
|
|
|
85,969
|
|
Long-Term
Debt
|
|
8,028
|
|
|
8,134
|
|
Income Taxes
Payable - Long-Term
|
|
3,334
|
|
|
7,037
|
|
Total
Liabilities
|
|
56,022
|
|
|
101,140
|
|
Commitments and
Contingencies
|
|
|
|
|
Stockholders'
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: 14,986,620 and 14,710,591 at June 30, 2018, and
September 30, 2017, respectively
|
|
150
|
|
|
147
|
|
Additional paid-in
capital
|
|
128,083
|
|
|
125,564
|
|
Accumulated other
comprehensive loss
|
|
(9,373)
|
|
|
(8,529)
|
|
Retained
deficit
|
|
(12,441)
|
|
|
(26,699)
|
|
Total stockholders'
equity
|
|
106,419
|
|
|
90,483
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
162,441
|
|
|
$
|
191,623
|
|
AMTECH SYSTEMS,
INC.
|
(NASDAQ:
ASYS)
|
August 9,
2018
|
(unaudited)
|
|
Condensed
Consolidated Statements of Cash Flows
|
(in
thousands)
|
|
|
|
|
|
Nine Months Ended
June 30,
|
|
2018
|
|
2017
|
Operating
Activities
|
|
|
|
Net
income
|
$
|
14,258
|
|
|
$
|
767
|
|
Adjustments to
reconcile net income to net cash
(used in) provided by operating activities:
|
|
|
|
Depreciation and
amortization
|
1,622
|
|
|
1,871
|
|
Write-down of
inventory
|
195
|
|
|
448
|
|
Capitalized
interest
|
143
|
|
|
307
|
|
Deferred income
taxes
|
206
|
|
|
(10)
|
|
Non-cash share based
compensation expense
|
632
|
|
|
978
|
|
(Gain) loss on sale
of property, plant and equipment
|
(53)
|
|
|
107
|
|
Gain on sale of other
assets
|
(2,883)
|
|
|
—
|
|
(Gain) loss from
equity method investment
|
(234)
|
|
|
200
|
|
Provision for
(reversal of) allowance for doubtful accounts, net
|
64
|
|
|
(898)
|
|
Changes in
operating assets and liabilities:
|
|
|
|
Restricted
cash
|
17,956
|
|
|
(3,576)
|
|
Accounts
receivable
|
(5,877)
|
|
|
(8,997)
|
|
Inventories
|
6,565
|
|
|
(245)
|
|
Accrued income
taxes
|
(1,742)
|
|
|
742
|
|
Vendor deposits and
other assets
|
10,034
|
|
|
(5,521)
|
|
Accounts
payable
|
(9,022)
|
|
|
6,616
|
|
Customer deposits and
accrued liabilities
|
(34,025)
|
|
|
17,526
|
|
Deferred
profit
|
(486)
|
|
|
626
|
|
Net cash (used
in) provided by operating activities
|
(2,647)
|
|
|
10,941
|
|
Investing
Activities
|
|
|
|
Purchases of
property, plant and equipment
|
(845)
|
|
|
(355)
|
|
Proceeds from
sale of property, plant and equipment
|
64
|
|
|
39
|
|
Costs related
to sale of equity method investment
|
(6)
|
|
|
—
|
|
Net cash used
in investing activities
|
(787)
|
|
|
(316)
|
|
Financing
Activities
|
|
|
|
Proceeds from
the exercise of stock options
|
1,889
|
|
|
894
|
|
Payments on
long-term debt
|
(275)
|
|
|
(485)
|
|
Borrowings on
long-term debt
|
—
|
|
|
384
|
|
Net cash
provided by financing activities
|
1,614
|
|
|
793
|
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
(572)
|
|
|
87
|
|
Net (Decrease)
Increase in Cash and Cash Equivalents
|
(2,392)
|
|
|
11,505
|
|
Cash and Cash
Equivalents, Beginning of Period
|
51,121
|
|
|
27,655
|
|
Cash and Cash
Equivalents, End of Period
|
$
|
48,729
|
|
|
$
|
39,160
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/amtech-reports-third-quarter-fiscal-2018-results-300695075.html
SOURCE Amtech Systems, Inc.