TEMPE, Ariz., Nov. 20, 2017 /PRNewswire/ -- Amtech
Systems, Inc. (NASDAQ: ASYS), a global supplier of production
equipment and related supplies for the solar, semiconductor,
and LED markets, today reported results for its fourth quarter and
fiscal year ended September 30, 2017.
Fourth Quarter Fiscal 2017 Financial and Operational
Highlights:
- Net revenues of $54.7 million
(solar $30.1 million)
- Net income of $7.3 million
- Diluted earnings per share of $0.51
- Customer orders of $27.6 million
(solar $9.6 million)
- Quarter-end backlog of $102.4
million (solar $81.4
million)
- Book to bill ratio of 0.5:1 (0.3:1 solar)
- Unrestricted cash of $51.1
million
Fiscal Year 2017 Financial and Operational
Highlights:
- Net revenues of $164.5 million
(solar $87.0 million)
- Net income of $9.1 million
- Diluted earnings per share of $0.68
- Cash provided by operating activities of $11.8 million
- Customer orders of $210.5 million
(solar $126.6 million)
- Book to bill ratio of 1.3:1 (1.4:1 solar)
Mr. Fokko Pentinga, Chief
Executive Officer of Amtech, commented, "We are pleased to report
that shipment of Phase I of the turnkey order and strong shipments
of semiconductor products led to strong financial results in the
fourth quarter and fiscal year 2017. All three of our
businesses delivered very positive earnings in the fourth
quarter. Both our solar and semiconductor business units
performed well with sequential quarter-to-quarter and year-over
year improvements in both revenue and operating profit. The
polishing segment also produced higher quarterly profits
sequentially and year-over-year. In August, we successfully
completed a round of equity financing, which enhanced our financial
position as we continue to develop next-generation products and
solutions, focus on operational excellence, and the long-term
profitable growth of the company."
At September 30, 2017, our total order backlog was
$102.4 million (solar $81.4 million), compared to total backlog of
$125.7 million (solar $98.2 million) at June 30, 2017. Backlog
includes deferred revenue and customer orders that are expected to
ship within the next 12 months.
Net revenue for the fourth quarter of fiscal 2017 was
$54.7 million compared to
$47.8 million in the preceding
quarter and $42.4 million in the
fourth quarter of fiscal 2016. The sequential increase is due
primarily to increased shipments of our semiconductor
equipment. The increase from the prior year quarter is due
primarily to shipments relating to the large solar turnkey order,
as well as increased shipments of our semiconductor equipment.
Gross margin in the fourth quarter of fiscal 2017 was 36%,
compared to 32% in the preceding quarter and 29% in the fourth
quarter of fiscal 2016. Sequentially and compared to prior year,
gross margin increased primarily due to higher sales volumes,
favorable product and customer mix, and the recognition of
previously deferred profit.
Selling, general and administrative (SG&A) expenses in the
fourth quarter of fiscal 2017 were $9.8
million compared to $10.1
million in the preceding quarter and $10.3 million in the fourth quarter of fiscal
2016. Sequentially, the SG&A decrease was due primarily
to lower severance and employee-related expenses. The decrease in
SG&A from prior year is due primarily to a $1.8 million provision for doubtful accounts
receivable in the fourth quarter of fiscal 2016. The fourth quarter
of fiscal 2017 included increased commissions and selling expenses
on higher sales and higher employee related expenses.
Research, development and engineering (RD&E) expense was
$1.8 million in the fourth quarter of
fiscal 2017 compared to $1.4 million
in the preceding quarter and $2.0
million in the fourth quarter of fiscal
2016.
Depreciation and amortization in the fourth quarter of fiscal
2017 was $0.6 million, compared to
$0.6 million in the preceding quarter
and $0.7 million in the fourth
quarter of fiscal 2016.
Income tax expense in the fourth quarter of fiscal 2017 was
$0.5 million compared to $1.0 million in the preceding quarter and
$1.1 million in the fourth quarter of
fiscal 2016.
Net income for the fourth quarter of fiscal 2017 was
$7.3 million, or $0.51 per diluted share, compared to a net loss
of $0.3 million, or $0.02 per share for the fourth quarter of fiscal
2016 and net income of $3.3 million
or $0.25 per diluted share in the
preceding quarter.
Unrestricted cash and cash equivalents at September 30,
2017 were $51.1 million, compared to
$39.2 million at June 30,
2017.
Outlook
The company expects revenues for the quarter ending December 31, 2017 to be in the range of
$60 to $70 million. Gross margin for
the quarter ending December 31, 2017
is expected to be in the mid 20 percent range, with operating
margin percentage in the mid-single digits, both influenced by
product mix.
The solar and semiconductor equipment industries can be cyclical
and inherently impacted by changes in market demand.
Additionally, operating results can be impacted by the timing of
orders, system shipments and the financial results of the solar and
semiconductor businesses. The first quarter of fiscal 2018
ending December 31, 2017 is expected
to be positively impacted by the solar business due to the shipment
of all Phase II equipment of a large multi-phase turnkey order,
followed by softer second quarter shipments and operating
results. Depending on the timing of the order for the next
phase of the turnkey project, the results for the second half of
the year potentially may be in line with the first half of the
year. Operating results could also be affected by the net impact of
revenue deferral on shipments, and recognition of revenue based on
customer acceptances, and progress on the start-up of the turnkey
production lines, all of which can have a significant effect on
operating results.
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 fourth
quarter and fiscal 2017 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 November 27, 2017. To access the replay
please dial US toll free (877) 344-7529 and enter code 10114411.
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 equipment to the solar, semiconductor / electronics, and
LED manufacturing markets. Amtech's equipment includes diffusion,
ALD and PECVD systems and solder reflow systems. Amtech also
supplies wafer handling automation and polishing equipment and
related consumable products. The Company's wafer handling, thermal
processing and consumable products currently address the diffusion,
oxidation, and deposition steps used in the fabrication of solar
cells, LEDs, semiconductors, MEMS, printed circuit boards,
semiconductor packaging, and the polishing of newly sliced sapphire
and silicon wafers. Amtech's products are recognized under the
leading brand names Tempress Systems™, Bruce
Technologies™, PR Hoffman™, R2D
Automation™, SoLayTec, and BTU International.
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). 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. 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. 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, 2016, 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)
|
November 20,
2017
|
(Unaudited)
|
|
Condensed
Consolidated Statements of Operations
|
|
|
|
|
|
|
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Years Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues, net of
returns and allowances
|
$
|
54,677
|
|
|
$
|
42,409
|
|
|
$
|
164,516
|
|
|
$
|
120,308
|
|
Cost of
sales
|
35,085
|
|
|
29,933
|
|
|
112,584
|
|
|
86,245
|
|
Gross
profit
|
19,592
|
|
|
12,476
|
|
|
51,932
|
|
|
34,063
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
9,771
|
|
|
10,259
|
|
|
35,135
|
|
|
33,967
|
|
Research, development
and engineering
|
1,787
|
|
|
1,989
|
|
|
6,372
|
|
|
8,004
|
|
Operating income
(loss)
|
8,034
|
|
|
228
|
|
|
10,425
|
|
|
(7,908)
|
|
|
|
|
|
|
|
|
|
Gain on sale of other
assets
|
—
|
|
|
—
|
|
|
—
|
|
|
2,576
|
|
(Loss) income from
equity method investment
|
(216)
|
|
|
73
|
|
|
(417)
|
|
|
299
|
|
Interest and other
expense, net
|
(27)
|
|
|
18
|
|
|
(178)
|
|
|
(417)
|
|
Income (loss) before
income taxes
|
7,791
|
|
|
319
|
|
|
9,830
|
|
|
(5,450)
|
|
Income tax
provision
|
474
|
|
|
1,060
|
|
|
1,744
|
|
|
3,100
|
|
Net income
(loss)
|
7,317
|
|
|
(741)
|
|
|
8,086
|
|
|
(8,550)
|
|
|
|
|
|
|
|
|
|
Add: net loss
attributable to noncontrolling interest
|
—
|
|
|
456
|
|
|
1,045
|
|
|
1,542
|
|
Net income (loss)
attributable to Amtech Systems, Inc.
|
$
|
7,317
|
|
|
$
|
(285)
|
|
|
$
|
9,131
|
|
|
$
|
(7,008)
|
|
|
|
|
|
|
|
|
|
Income (Loss) Per
Share:
|
|
|
|
|
|
|
|
Basic income (loss)
per share attributable to Amtech shareholders
|
$
|
0.53
|
|
|
$
|
(0.02)
|
|
|
$
|
0.68
|
|
|
$
|
(0.53)
|
|
Weighted average
shares outstanding
|
13,895
|
|
|
13,177
|
|
|
13,378
|
|
|
13,168
|
|
Diluted income (loss)
per share attributable to Amtech shareholders
|
$
|
0.51
|
|
|
$
|
(0.02)
|
|
|
$
|
0.68
|
|
|
$
|
(0.53)
|
|
Weighted average
shares outstanding
|
14,294
|
|
|
13,177
|
|
|
13,501
|
|
|
13,168
|
|
AMTECH SYSTEMS,
INC.
|
(NASDAQ:
ASYS)
|
November 20,
2017
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
(in thousands,
except share data)
|
|
|
|
|
|
|
September 30,
2017
|
|
September 30,
2016
|
Assets
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
51,121
|
|
|
$
|
27,655
|
|
Restricted
cash
|
|
24,640
|
|
|
893
|
|
Accounts
receivable
|
|
|
|
|
Trade (less allowance
for doubtful accounts of $866 and $3,730 at September 30, 2017, and
September 30, 2016, respectively)
|
|
22,519
|
|
|
17,642
|
|
Unbilled and
other
|
|
14,275
|
|
|
8,634
|
|
Inventories
|
|
30,210
|
|
|
23,223
|
|
Refundable income
taxes
|
|
—
|
|
|
260
|
|
Vendor
deposits
|
|
11,806
|
|
|
1,962
|
|
Other
|
|
2,542
|
|
|
2,655
|
|
Total current
assets
|
|
157,113
|
|
|
82,924
|
|
Property, Plant
and Equipment - Net
|
|
15,792
|
|
|
15,960
|
|
Intangible Assets
- Net
|
|
3,495
|
|
|
4,100
|
|
Goodwill -
Net
|
|
11,405
|
|
|
11,119
|
|
Investments
|
|
2,615
|
|
|
3,032
|
|
Deferred Income
Taxes - Long-Term
|
|
200
|
|
|
200
|
|
Other Assets -
Long-Term
|
|
1,003
|
|
|
1,095
|
|
Total
Assets
|
|
$
|
191,623
|
|
|
$
|
118,430
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts
payable
|
|
$
|
21,555
|
|
|
$
|
15,397
|
|
Accrued
compensation and related taxes
|
|
7,592
|
|
|
5,710
|
|
Accrued
warranty expense
|
|
1,254
|
|
|
795
|
|
Other accrued
liabilities
|
|
2,056
|
|
|
2,164
|
|
Customer
deposits
|
|
48,784
|
|
|
7,055
|
|
Current
maturities of long-term debt
|
|
361
|
|
|
1,134
|
|
Deferred
profit
|
|
4,081
|
|
|
4,709
|
|
Income taxes
payable
|
|
286
|
|
|
1,100
|
|
Total current
liabilities
|
|
85,969
|
|
|
38,064
|
|
Long-Term
Debt
|
|
8,134
|
|
|
9,097
|
|
Income Taxes
Payable - Long-Term
|
|
7,037
|
|
|
5,930
|
|
Total
Liabilities
|
|
101,140
|
|
|
53,091
|
|
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: 14,710,591 and 13,179,355 at
September 30, 2017, and September 30, 2016, respectively
|
|
147
|
|
|
132
|
|
Additional
paid-in capital
|
|
125,564
|
|
|
111,631
|
|
Accumulated
other comprehensive loss
|
|
(8,529)
|
|
|
(8,876)
|
|
Retained
deficit
|
|
(26,699)
|
|
|
(35,830)
|
|
Total
stockholders' equity
|
|
90,483
|
|
|
67,057
|
|
Noncontrolling
interest
|
|
—
|
|
|
(1,718)
|
|
Total
equity
|
|
90,483
|
|
|
65,339
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
191,623
|
|
|
$
|
118,430
|
|
AMTECH SYSTEMS,
INC.
|
(NASDAQ:
ASYS)
|
November 20,
2017
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
Years Ended
September 30,
|
|
2017
|
|
2016
|
Operating
Activities
|
|
|
|
Net income
(loss)
|
$
|
8,086
|
|
(8,550)
|
Adjustments to
reconcile net loss to net cash
provided by (used in) operating activities:
|
|
|
|
Depreciation and
amortization
|
2,493
|
|
2,974
|
Write-down of
inventory
|
420
|
|
84
|
Capitalized
interest
|
277
|
|
322
|
Deferred income
taxes
|
(27)
|
|
2,280
|
Non-cash share based
compensation expense
|
1,328
|
|
1,390
|
Loss on sale of
property, plant and equipment
|
26
|
|
(60)
|
Gain on sale of other
assets
|
—
|
|
(2,576)
|
Loss (income) from
equity method investment
|
417
|
|
(299)
|
(Reversal of)
provision for allowance for doubtful accounts
|
(720)
|
|
1,698
|
Changes in operating
assets and liabilities:
|
|
|
|
Restricted
cash
|
(22,262)
|
|
(253)
|
Accounts
receivable
|
(8,655)
|
|
(4,998)
|
Inventories
|
(6,638)
|
|
491
|
Accrued income
taxes
|
573
|
|
351
|
Vendor deposits and
other assets
|
(8,898)
|
|
(814)
|
Accounts
payable
|
5,374
|
|
(224)
|
Customer deposits and
accrued liabilities
|
40,817
|
|
(1,355)
|
Deferred
profit
|
(822)
|
|
(150)
|
Net cash provided by
(used in) operating activities
|
11,789
|
|
(9,689)
|
Investing
Activities
|
|
|
|
Purchases of
property, plant and equipment
|
(1,256)
|
|
(978)
|
Proceeds from sale of
property, plant and equipment
|
40
|
|
255
|
Proceeds from partial
sale of subsidiary
|
—
|
|
7,012
|
Proceeds from sale of
other assets
|
—
|
|
4,884
|
Net cash (used in)
provided by investing activities
|
(1,216)
|
|
11,173
|
Financing
Activities
|
|
|
|
Proceeds from
issuance of common stock, net
|
12,602
|
|
51
|
Payments on long-term
debt
|
(674)
|
|
(739)
|
Borrowings on
long-term debt
|
755
|
|
1,145
|
Excess tax benefit of
stock compensation
|
18
|
|
—
|
Net cash provided by
financing activities
|
12,701
|
|
457
|
Effect of Exchange
Rate Changes on Cash
|
192
|
|
(138)
|
Net Increase in
Cash and Cash Equivalents
|
23,466
|
|
1,803
|
Cash and Cash
Equivalents, Beginning of Year
|
27,655
|
|
25,852
|
Cash and Cash
Equivalents, End of Year
|
$
|
51,121
|
|
27,655
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/amtech-reports-fourth-quarter-and-fiscal-2017-results-300559654.html
SOURCE Amtech Systems, Inc.