TEMPE, Ariz., Feb. 6, 2020 /PRNewswire/ -- Amtech Systems, Inc.
(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 chips, electronic assemblies and
light-emitting diodes (LEDs), today reported results for its first
quarter ended December 31, 2019.
First Quarter Fiscal 2020 Financial and Operational
Highlights from Continuing Operations:
- Net revenue of $20.7 million
- Operating income of $1.6
million
- Loss from continuing operations, net of tax, of $1.3 million, which includes a pre-tax loss of
$2.7 million on the sale of R2D
- Loss per diluted share from continuing operations of
$0.09
- Customer orders of $17.6
million
- Unrestricted cash of $52.7
million
- Board of Directors approval to renew our share repurchase
program of up to $4 million of
outstanding common stock, effective for the next 12 months
Mr. Michael Whang, Chief
Executive Officer of Amtech, commented, "We continue to prepare for
the anticipated strengthening of the semiconductor market in the
second half of 2020 and for longer-term organic growth
opportunities. We are investing in new product development,
market-advancing technologies, our people, capacity expansion and
IT systems. We also continue to evaluate strategic M&A
opportunities to build upon our strengths in the high growth areas
in semi and silicon carbide."
Mr. Whang continued, "In the first quarter of fiscal 2020, we
shipped our 300 mm diffusion furnace to a new top-tier, power
semiconductor customer. We have also just announced another
order for the 300mm clustered HTR diffusion furnace, further
validating our power semiconductor strategy and the market interest
in this technology. With this new order we are establishing close
relationships with top-tier global power semiconductor customers in
North America, Europe and Asia."
GAAP Financial Results
(in millions,
except per share amounts)
|
Q1
|
|
Q4
|
|
Q1
|
|
|
FY
2020
|
|
FY
2019
|
|
FY
2019
|
|
Net
revenues
|
$
|
20.7
|
|
$
|
20.2
|
|
$
|
23.2
|
|
Gross
profit
|
$
|
8.2
|
|
$
|
8.6
|
|
$
|
9.0
|
|
Gross
margin
|
|
40
|
%
|
|
42
|
%
|
|
39
|
%
|
Operating
income
|
$
|
1.6
|
|
$
|
1.7
|
|
$
|
0.7
|
|
Operating
margin
|
|
7.9
|
%
|
|
8.2
|
%
|
|
2.9
|
%
|
(Loss) income from
continuing operations, net of tax
|
$
|
(1.3)
|
|
$
|
1.0
|
|
$
|
0.2
|
|
Diluted (loss) income
per share from continuing operations
|
$
|
(0.09)
|
|
$
|
0.07
|
|
$
|
0.02
|
|
Net revenues increased slightly compared to the preceding
quarter and decreased 11% from the first quarter of fiscal 2019.
Semiconductor revenue in fiscal Q1 2020 includes the shipment of
our 300 mm diffusion furnace to a new top-tier, power semiconductor
customer, which contributed to the sequential increase in revenue.
Semiconductor revenue decreased compared to the prior year quarter
due primarily to lower diffusion furnace shipments. SiC/LED revenue
decreased sequentially due primarily to lower machine shipments and
was relatively flat compared to the prior year quarter. Gross
margin increased in the first quarter of fiscal 2020 compared to
the prior year quarter, primarily due to a shift in product mix,
while decreasing on a sequential basis primarily due to a higher
margin product mix in the fourth quarter of fiscal 2019. Operating
margin improved sequentially to 7.9%, primarily due to lower
employee-related expenses, partially offset by increased legal fees
relating to our solar divestitures. The Company recognized a
pre-tax loss from the sale of its automation division, R2D, of
$2.8 million. Loss from continuing
operations, net of tax, for the first quarter of fiscal 2020 was
$1.3 million, or 9 cents per share. This compares to income of
$0.2 million, or 2 cents per share, for the first quarter of
fiscal 2019 and income of $1.0
million, or 7 cents per share,
in the preceding quarter.
As announced previously, we sold our shares of Tempress to
Stichting Continuiteit Tempress, an independent foundation ("the
Foundation") formed under Dutch law and created for the sole
benefit of the employees, customers and suppliers of Tempress. The
Foundation is governed by an independent board with members who
have restructuring expertise and have no affiliation with Amtech.
Effective as of the closing of the sale of Tempress, Amtech has no
financial interest in the future losses or profits of the
Foundation and will have no further involvement with and no control
over the Foundation, absent the right to receive certain limited
information from the Foundation pursuant to covenants set forth in
the term loan agreement with the Foundation. To-date, we have
received repayment of $0.5 million of
the loan balance.
Outlook
Our outlook reflects the January
27 announcement by China's
government to extend the Lunar New Year holiday and keep
enterprises closed until February 9,
due to the coronavirus outbreak. Our outlook also builds in
estimated time we believe will be required for employees and the
supply chain to resume normal work and production levels. The
outlook does not account for any future measures taken by the
Chinese government in response to the health crisis that could
further delay businesses from returning to a normal operating
schedule, which could cause our results to be materially lower than
the outlook. Lastly, the outlook reflects some historical softness
that occurs in our fiscal Q2, attributable to seasonality and the
Chinese New Year. For the quarter ending March 31, 2020 (our 2nd fiscal
quarter), revenues are expected to be in the range of $10 to $14 million.
Gross margin for the quarter ending March
31, 2020 is expected to be in the upper 20's to 30% range,
with operating margin negative.
Additionally, in fiscal Q2, we expect to record a pre-tax loss
on deconsolidation of Tempress in the range of $12.5 million to $13
million, of which approximately $7.3
million is the recognition of previously recorded
accumulated foreign currency translation losses. The total pre-tax
loss is not expected to have a material effect on our cash balances
from our continuing operations. We also expect to recognize a
significant tax benefit relating to this loss, which can be carried
over to future years.
The 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
financial results of semiconductor manufacturers.
A portion of Amtech's results are 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 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 13, 2020. To access
the replay please dial US toll free (877) 344-7529 and enter code
10138192. Internationally, dial (412) 317-0088 and use the
same code. A live and archived webcast 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 leading, global 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 chips, electronic assemblies and light-emitting diodes
(LEDs). We sell these products to semiconductor and automotive
component manufacturers worldwide, particularly in Asia, North
America and Europe. Our strategic focus is on
semiconductor growth opportunities in power electronics, leveraging
our strength in our core competencies in thermal and substrate
processing. We are a market leader in the high-end power chip
market (SiC and 300mm silicon horizontal thermal reactor),
developing and supplying essential equipment and consumables used
in the semiconductor industry. Amtech's products are
recognized under the leading brand names BTU International, Bruce
TechnologiesTM, and PR HoffmanTM.
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, the planned divestiture of our solar
business, 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," "anticipate,"
"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, 2019, 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
|
Lisa D.
Gibbs
|
Investor
Relations
|
Chief Financial
Officer
|
Patty
Bruner
|
(480)
967-5146
|
(480)
201-6075
|
irelations@amtechsystems.com
|
pbruner@christensenir.com
|
AMTECH SYSTEMS,
INC.
(NASDAQ:
ASYS)
February 6,
2020
(Unaudited)
|
|
Summary Financial
Information for Continuing Operations
|
(in thousands,
except percentages and ratios)
|
|
|
|
Three Months
Ended
|
|
|
|
December
31, 2019
|
|
|
September
30,
2019
|
|
|
December
31,
2018
|
|
Amtech Systems,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues, net of
returns and allowances
|
|
$
|
20,692
|
|
|
$
|
20,174
|
|
|
$
|
23,225
|
|
Gross
profit
|
|
$
|
8,174
|
|
|
$
|
8,560
|
|
|
$
|
9,020
|
|
Gross
margin
|
|
|
40
|
%
|
|
|
42
|
%
|
|
|
39
|
%
|
Operating
income
|
|
$
|
1,637
|
|
|
$
|
1,653
|
|
|
$
|
664
|
|
New orders
|
|
$
|
17,625
|
|
|
$
|
20,344
|
|
|
$
|
20,613
|
|
Backlog
|
|
$
|
13,444
|
|
|
$
|
17,326
|
|
|
$
|
23,656
|
|
Semiconductor
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues, net of
returns and allowances
|
|
$
|
17,232
|
|
|
$
|
15,188
|
|
|
$
|
18,960
|
|
Gross
profit
|
|
$
|
7,186
|
|
|
$
|
6,866
|
|
|
$
|
7,490
|
|
Gross
margin
|
|
|
42
|
%
|
|
|
45
|
%
|
|
|
40
|
%
|
Operating
income
|
|
$
|
2,722
|
|
|
$
|
2,316
|
|
|
$
|
2,745
|
|
New orders
|
|
$
|
15,094
|
|
|
$
|
16,163
|
|
|
$
|
16,094
|
|
Backlog
|
|
$
|
12,764
|
|
|
$
|
14,902
|
|
|
$
|
18,158
|
|
SiC/LED
Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues, net of
returns and allowances
|
|
$
|
2,817
|
|
|
$
|
4,352
|
|
|
$
|
2,983
|
|
Gross
profit
|
|
$
|
979
|
|
|
$
|
1,814
|
|
|
$
|
1,224
|
|
Gross
margin
|
|
|
35
|
%
|
|
|
42
|
%
|
|
|
41
|
%
|
Operating
income
|
|
$
|
534
|
|
|
$
|
1,388
|
|
|
$
|
769
|
|
New orders
|
|
$
|
2,531
|
|
|
$
|
2,399
|
|
|
$
|
3,744
|
|
Backlog
|
|
$
|
680
|
|
|
$
|
966
|
|
|
$
|
3,456
|
|
AMTECH SYSTEMS,
INC.
(NASDAQ:
ASYS)
February 6,
2020
(Unaudited)
|
|
Condensed
Consolidated Statements of Operations
|
(in
thousands, except per share data)
|
|
|
|
Three Months
Ended December
31,
|
|
|
|
2019
|
|
|
2018
|
|
Revenues, net of
returns and allowances
|
|
$
|
20,692
|
|
|
$
|
23,225
|
|
Cost of
sales
|
|
|
12,518
|
|
|
|
14,205
|
|
Gross
profit
|
|
|
8,174
|
|
|
|
9,020
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
|
5,915
|
|
|
|
6,626
|
|
Research, development
and engineering
|
|
|
622
|
|
|
|
866
|
|
Restructuring
charges
|
|
|
—
|
|
|
|
864
|
|
Operating
income
|
|
|
1,637
|
|
|
|
664
|
|
|
|
|
|
|
|
|
|
|
Loss on sale of
subsidiary
|
|
|
(2,793)
|
|
|
|
—
|
|
Interest income and
other, net
|
|
|
(70)
|
|
|
|
166
|
|
(Loss) income from
continuing operations before income taxes
|
|
|
(1,226)
|
|
|
|
830
|
|
Income tax
provision
|
|
|
41
|
|
|
|
582
|
|
(Loss) income from
continuing operations, net of tax
|
|
|
(1,267)
|
|
|
|
248
|
|
Loss from discontinued
operations, net of tax
|
|
|
(665)
|
|
|
|
(2,620)
|
|
Net
loss
|
|
$
|
(1,932)
|
|
|
$
|
(2,372)
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income Per
Basic Share:
|
|
|
|
|
|
|
|
|
Basic (loss) income
per share from continuing operations
|
|
$
|
(0.09)
|
|
|
$
|
0.02
|
|
Basic loss per share
from discontinued operations
|
|
$
|
(0.05)
|
|
|
$
|
(0.18)
|
|
Net loss per basic
share
|
|
$
|
(0.14)
|
|
|
$
|
(0.16)
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income Per
Diluted Share:
|
|
|
|
|
|
|
|
|
Diluted (loss) income
per share from continuing operations
|
|
$
|
(0.09)
|
|
|
$
|
0.02
|
|
Diluted loss per share
from discontinued operations
|
|
$
|
(0.05)
|
|
|
$
|
(0.18)
|
|
Net loss per diluted
share
|
|
$
|
(0.14)
|
|
|
$
|
(0.16)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - Basic
|
|
|
14,290
|
|
|
|
14,220
|
|
Weighted average
shares outstanding - Diluted
|
|
|
14,290
|
|
|
|
14,252
|
|
AMTECH SYSTEMS,
INC.
(NASDAQ:
ASYS)
February 6,
2020
(Unaudited)
|
|
Condensed
Consolidated Balance Sheets
|
(in thousands,
except share data)
|
|
|
|
December
31, 2019
|
|
|
September
30,
2019
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
52,742
|
|
|
$
|
52,982
|
|
Restricted
cash
|
|
|
—
|
|
|
|
101
|
|
Accounts receivable
(less allowance for doubtful accounts of $134 and $172 at
December 31, 2019, and September 30,
2019, respectively)
|
|
|
14,205
|
|
|
|
12,873
|
|
Inventory
|
|
|
15,580
|
|
|
|
17,532
|
|
Income taxes
receivable
|
|
|
662
|
|
|
|
—
|
|
Held-for-sale
assets
|
|
|
18,752
|
|
|
|
22,755
|
|
Other current
assets
|
|
|
2,156
|
|
|
|
2,027
|
|
Total current
assets
|
|
|
104,097
|
|
|
|
108,270
|
|
Property, Plant
and Equipment - Net
|
|
|
10,100
|
|
|
|
10,217
|
|
Intangible Assets
- Net
|
|
|
804
|
|
|
|
870
|
|
Goodwill -
Net
|
|
|
6,633
|
|
|
|
6,633
|
|
Other
Assets
|
|
|
651
|
|
|
|
487
|
|
Total
Assets
|
|
$
|
122,285
|
|
|
$
|
126,477
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
5,097
|
|
|
$
|
4,371
|
|
Accrued compensation
and related taxes
|
|
|
1,743
|
|
|
|
2,717
|
|
Accrued warranty
expense
|
|
|
461
|
|
|
|
556
|
|
Other accrued
liabilities
|
|
|
1,148
|
|
|
|
1,274
|
|
Current maturities of
long-term debt
|
|
|
368
|
|
|
|
371
|
|
Contract
liabilities
|
|
|
565
|
|
|
|
1,378
|
|
Income taxes
payable
|
|
|
—
|
|
|
|
1,434
|
|
Held-for-sale
liabilities
|
|
|
15,168
|
|
|
|
18,547
|
|
Total current
liabilities
|
|
|
24,550
|
|
|
|
30,648
|
|
Long-Term
Debt
|
|
|
5,085
|
|
|
|
5,178
|
|
Long-Term Lease
Liability
|
|
|
34
|
|
|
|
—
|
|
Income Taxes
Payable
|
|
|
3,654
|
|
|
|
3,199
|
|
Total
Liabilities
|
|
|
33,323
|
|
|
|
39,025
|
|
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: 14,386,422 and
14,268,797 at December 31, 2019 and September 30, 2019, respectively
|
|
|
144
|
|
|
|
143
|
|
Additional paid-in
capital
|
|
|
125,866
|
|
|
|
125,098
|
|
Accumulated other
comprehensive loss
|
|
|
(8,560)
|
|
|
|
(11,233)
|
|
Retained
deficit
|
|
|
(28,488)
|
|
|
|
(26,556)
|
|
Total
shareholders' equity
|
|
|
88,962
|
|
|
|
87,452
|
|
Total Liabilities
and Shareholders' Equity
|
|
$
|
122,285
|
|
|
$
|
126,477
|
|
AMTECH SYSTEMS,
INC.
(NASDAQ:
ASYS)
February 6,
2020
(Unaudited)
|
|
Condensed
Consolidated Statements of Cash Flows
|
(in
thousands)
|
|
|
|
Three Months Ended
December 31,
|
|
|
|
2019
|
|
|
2018
|
|
Operating
Activities
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(1,932)
|
|
|
$
|
(2,372)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
406
|
|
|
|
443
|
|
Write-down of
inventory
|
|
|
311
|
|
|
|
557
|
|
Deferred income
taxes
|
|
|
784
|
|
|
|
7
|
|
Non-cash share-based
compensation expense
|
|
|
68
|
|
|
|
169
|
|
Loss on sale of
subsidiary
|
|
|
2,793
|
|
|
|
—
|
|
(Reversal of)
provision for allowance for doubtful accounts, net
|
|
|
(59)
|
|
|
|
44
|
|
Other, net
|
|
|
13
|
|
|
|
106
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
3,296
|
|
|
|
(2,568)
|
|
Inventory
|
|
|
1,025
|
|
|
|
228
|
|
Other
assets
|
|
|
(1,458)
|
|
|
|
7,939
|
|
Accounts
payable
|
|
|
(1,983)
|
|
|
|
520
|
|
Accrued income
taxes
|
|
|
(1,616)
|
|
|
|
831
|
|
Accrued and other
liabilities
|
|
|
(486)
|
|
|
|
(684)
|
|
Contract
liabilities
|
|
|
(1,330)
|
|
|
|
(5,866)
|
|
Net cash used in
operating activities
|
|
|
(168)
|
|
|
|
(646)
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
|
(173)
|
|
|
|
(152)
|
|
Net cash disposed of
in sale of subsidiary
|
|
|
(647)
|
|
|
|
—
|
|
Net cash used in
investing activities
|
|
|
(820)
|
|
|
|
(152)
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
Proceeds from the
exercise of stock options
|
|
|
701
|
|
|
|
37
|
|
Payments on long-term
debt
|
|
|
(103)
|
|
|
|
(95)
|
|
Net cash provided by
(used in) financing activities
|
|
|
598
|
|
|
|
(58)
|
|
Effect of Exchange
Rate Changes on Cash, Cash Equivalents and Restricted
Cash
|
|
|
1,141
|
|
|
|
(662)
|
|
Net Increase
(Decrease) in Cash, Cash Equivalents and Restricted
Cash
|
|
|
751
|
|
|
|
(1,518)
|
|
Cash, Cash
Equivalents and Restricted Cash, Beginning of Year*
|
|
|
59,134
|
|
|
|
62,496
|
|
Cash, Cash
Equivalents and Restricted Cash, End of Year*
|
|
$
|
59,885
|
|
|
$
|
60,978
|
|
|
|
*
|
Includes Cash, Cash
Equivalents and Restricted Cash that are included in Held-For-Sale
Assets on the Consolidated Balance Sheets.
|
View original
content:http://www.prnewswire.com/news-releases/amtech-reports-first-quarter-fiscal-2020-results-301000600.html
SOURCE Amtech Systems, Inc.