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 devices, analog and
discrete devices, electronic assemblies and light-emitting diodes
(LEDs), today reported results for its second quarter ended March
31, 2021.
Second Quarter Fiscal 2021 Financial and Operational
Highlights:
- Net revenue of $19.8 million
- Operating income of $0.2 million
- Loss from continuing operations, net of tax, of $0.2
million
- Loss per diluted share of $0.02
- Customer orders of $32.5 million
- March 31, 2021 backlog of $26.5 million
- Book to bill ratio of 1.6:1
- Unrestricted cash of $40.4 million
Mr. Michael Whang, Chief Executive Officer of Amtech, commented,
“Our strong momentum continued into the second quarter with revenue
coming in at the high end of our expectations. As we look out to
the balance of 2021, we are encouraged to see the strength in
demand continue and believe our exposure to several secular
tailwinds including advanced semiconductor packaging, power
semiconductors, electric vehicles and 5G communications, creates a
significant opportunity to drive increased profitability and
shareholder value as demand accelerates.”
GAAP Financial Results
(in millions, except per share
amounts)
Q2
Q1
Q2
6 Months
6 Months
FY 2021
FY 2021
FY 2020
2021
2020
Net revenues
$
19.8
$
18.0
$
14.5
$
37.8
$
35.2
Gross profit
$
7.7
$
7.5
$
5.4
$
15.2
$
13.5
Gross margin
39.1
%
41.8
%
37.1
%
40.4
%
38.5
%
Operating income (loss)
$
0.2
$
1.1
$
(1.0
)
$
1.2
$
0.7
Operating margin
0.9
%
5.9
%
-6.7
%
3.2
%
1.9
%
(Loss) income from continuing operations,
net of tax
$
(0.2
)
$
0.7
$
(0.5
)
$
0.5
$
(1.8
)
Diluted (loss) income per share from
continuing operations
$
(0.02
)
$
0.05
$
(0.04
)
$
0.03
$
(0.13
)
Net revenues increased 10% sequentially and increased 37% from
the second quarter of fiscal 2020, with the sequential increase
primarily attributed to strong shipments of our advanced packaging
and SMT equipment. The same prior year period was affected by the
COVID-19 pandemic.
Gross margin decreased in the second quarter of fiscal 2021
sequentially due to product mix, with increased multi-unit sales at
lower margins and increased mix of lower-margin SMT sales. Gross
margin increased in the second quarter of fiscal 2021 compared to
the same prior year period due to increased capacity
utilization.
Selling, General & Administrative (“SG&A”) expenses
increased $0.5 million sequentially and $0.3 million compared to
the same prior year period due primarily to sustained increases in
freight expenses, as well as increases in consulting and legal
fees.
Research and Development increased $0.6 million sequentially and
$1.0 million compared to the same prior year period due to
strategic R&D projects.
Operating income was $0.2 million, compared to operating income
of $1.1 million in the first quarter of fiscal 2021 and operating
loss of $1.0 million in the same prior year period.
Income tax provision was $0.5 million for the three months ended
March 31, 2021, compared to a provision of $0.1 million in the
preceding quarter (which included a tax benefit of $0.3 million
related to the reversal of previously recorded uncertain tax
positions) and $0.2 million in the same prior year period.
Loss from continuing operations, net of tax, for the second
quarter of fiscal 2021 was $0.2 million, or 2 cents per share. This
compares to loss from continuing operations of $0.5 million, or 4
cents per share, for the second quarter of fiscal 2020 and income
of $0.7 million, or 5 cent per share, in the preceding quarter.
Outlook
The Company’s outlook reflects the anticipated ongoing
logistical impacts and the related delays for goods shipped to and
from China and expenses incurred relating to our subsidiary’s cyber
security incident. Actual results may differ materially in the
weeks and months ahead. Additionally, the semiconductor equipment
industries can be cyclical and inherently impacted by changes in
market demand. Operating results can be significantly impacted,
positively or negatively, by the timing of orders, system
shipments, and the financial results of semiconductor
manufacturers.
For the third fiscal quarter ending June 30, 2021, revenues are
expected to be in the range of $21 to $23 million. Gross margin for
the quarter ending June 30, 2021 is expected to be approximately
40%, with operating margin break-even to slightly positive,
primarily due to one-time costs we will incur relating to our cyber
security incident. Accounting rules require us to expense these as
incurred without accruing for potential insurance reimbursement. We
will have a gain in a future quarter once our insurance claim has
been approved and paid.
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 today at 5:00 p.m. ET
to discuss our fiscal second quarter financial results. The call
will be available to interested parties by dialing 866-269-4261.
For international callers, please dial +1 929-477-0591. The
confirmation code is 1864484. 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 web site at
http://www.amtechsystems.com/conference.htm shortly 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
capital equipment, including thermal processing and wafer
polishing, and related consumables used in fabricating
semiconductor devices, such as silicon carbide (SiC) and silicon
power devices, analog and discrete devices, electronic assemblies
and light-emitting diodes (LEDs). We sell these products to
semiconductor device and module manufacturers worldwide,
particularly in Asia, North America and Europe. Our strategic focus
is on semiconductor growth opportunities in power electronics,
sensors and analog devices 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 substrates, 300mm
horizontal thermal reactor, and electronic assemblies used in
power, RF, and other advanced applications), 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 Technologies™, and PR
Hoffman™.
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, 2020, 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.
AMTECH SYSTEMS, INC. (NASDAQ: ASYS) May 5, 2021
(Unaudited)
Summary Financial Information for
Continuing Operations
(in thousands, except percentages and
ratios)
Three Months Ended
Six Months Ended March
31,
March 31,
2021
December 31,
2020
March 31,
2020
2021
2020
Amtech Systems, Inc.
Revenues, net of returns and
allowances
$
19,790
$
17,975
$
14,460
$
37,765
$
35,152
Gross profit
$
7,728
$
7,512
$
5,358
$
15,240
$
13,532
Gross margin
39
%
42
%
37
%
40
%
38
%
Operating income (loss)
$
171
$
1,054
$
(972
)
$
1,225
$
665
New orders
$
32,526
$
17,869
$
20,626
$
50,395
$
38,251
Backlog
$
26,534
$
13,799
$
19,618
$
26,534
$
19,618
Semiconductor Segment
Revenues, net of returns and
allowances
$
17,119
$
15,575
$
11,992
$
32,694
$
29,224
Gross profit
$
7,093
$
6,912
$
4,413
$
14,005
$
11,599
Gross margin
41
%
44
%
37
%
43
%
40
%
Operating income (loss)
$
1,665
$
2,197
$
(18
)
$
3,862
$
2,704
New orders
$
29,651
$
15,483
$
17,019
$
45,134
$
32,113
Backlog
$
25,281
$
12,750
$
17,799
$
25,281
$
17,799
Material and Substrate Segment
Revenues, net of returns and
allowances
$
2,671
$
2,400
$
2,468
$
5,071
$
5,285
Gross profit
$
635
$
600
$
945
$
1,235
$
1,924
Gross margin
24
%
25
%
38
%
24
%
36
%
Operating (loss) income
$
(253
)
$
(66
)
$
421
$
(319
)
$
955
New orders
$
2,875
$
2,386
$
3,607
$
5,261
$
6,138
Backlog
$
1,253
$
1,049
$
1,819
$
1,253
$
1,819
AMTECH SYSTEMS, INC. (NASDAQ: ASYS) May 5, 2021
(Unaudited)
Condensed Consolidated Statements of
Operations
(in thousands, except per share
data)
Three Months Ended March
31,
Six Months Ended March
31,
2021
2020
2021
2020
Revenues, net of returns and
allowances
$
19,790
$
14,460
$
37,765
$
35,152
Cost of sales
12,062
9,102
22,525
21,620
Gross profit
7,728
5,358
15,240
13,532
Selling, general and administrative
5,688
5,415
10,901
11,330
Research, development and engineering
1,869
915
3,114
1,537
Operating income (loss)
171
(972
)
1,225
665
Loss on sale of subsidiary
—
—
—
(2,793
)
Interest income (expense) and other,
net
73
595
(182
)
525
Income (loss) from continuing operations
before income taxes
244
(377
)
1,043
(1,603
)
Income tax provision
490
166
570
207
(Loss) income from continuing operations,
net of tax
(246
)
(543
)
473
(1,810
)
Loss from discontinued operations, net of
tax
—
(11,151
)
—
(11,816
)
Net (loss) income
$
(246
)
$
(11,694
)
$
473
$
(13,626
)
(Loss) Income Per Basic Share:
Basic (loss) income per share from
continuing operations
$
(0.02
)
$
(0.04
)
$
0.03
$
(0.13
)
Basic loss per share from discontinued
operations
$
—
$
(0.79
)
$
—
$
(0.83
)
Net (loss) income per basic share
$
(0.02
)
$
(0.83
)
$
0.03
$
(0.96
)
(Loss) Income Per Diluted
Share:
Diluted (loss) income per share from
continuing operations
$
(0.02
)
$
(0.04
)
$
0.03
$
(0.13
)
Diluted loss per share from discontinued
operations
$
—
$
(0.79
)
$
—
$
(0.83
)
Net (loss) income per diluted share
$
(0.02
)
$
(0.83
)
$
0.03
$
(0.96
)
Weighted average shares outstanding -
basic
14,151
14,150
14,121
14,193
Weighted average shares outstanding -
diluted
14,151
14,150
14,217
14,193
AMTECH SYSTEMS, INC. (NASDAQ: ASYS) May 5, 2021
(Unaudited)
Condensed Consolidated Balance
Sheets
(in thousands, except share
data)
March 31,
2021
September 30,
2020
Assets
Current Assets
Cash and cash equivalents
$
40,399
$
45,070
Accounts receivable (less allowance for
doubtful accounts of $194 and $159 at March 31, 2021, and September
30, 2020, respectively)
16,980
11,243
Inventories
16,389
17,277
Income taxes receivable
1,057
1,362
Other current assets
1,735
1,617
Total current assets
76,560
76,569
Property, Plant and Equipment -
Net
12,025
11,995
Right-of-Use Assets - Net
6,016
5,124
Intangible Assets - Net
912
609
Goodwill - Net
11,150
6,633
Deferred Income Taxes - Net
566
566
Other Assets
707
602
Total Assets
$
107,936
$
102,098
Liabilities and Shareholders’
Equity
Current Liabilities
Accounts payable
$
5,878
$
2,676
Accrued compensation and related taxes
2,157
2,066
Accrued warranty expense
414
380
Other accrued liabilities
1,421
751
Current maturities of long-term debt
388
380
Contract liabilities
295
1,224
Total current liabilities
10,553
7,477
Long-Term Debt
4,601
4,798
Long-Term Lease Liability
5,803
5,064
Income Taxes Payable
3,471
3,240
Other Long-Term Liabilities
67
—
Total Liabilities
24,495
20,579
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: 14,221,865 and
14,063,172 at March 31, 2021 and September 30, 2020,
respectively
142
141
Additional paid-in capital
125,513
124,435
Accumulated other comprehensive loss
(276
)
(646
)
Retained deficit
(41,938
)
(42,411
)
Total shareholders’ equity
83,441
81,519
Total Liabilities and Shareholders’
Equity
$
107,936
$
102,098
AMTECH SYSTEMS, INC. (NASDAQ: ASYS) May 5, 2021
(Unaudited)
Condensed Consolidated Statements of
Cash Flows
(in thousands)
Six Months Ended March
31,
2021
2020
Operating Activities
Net income (loss)
$
473
$
(13,626
)
Adjustments to reconcile net income (loss)
to net cash (used in) provided by operating activities:
Depreciation and amortization
644
694
Write-down of inventory
230
330
Deferred income taxes
—
784
Non-cash share-based compensation
expense
149
133
Loss on sales of subsidiaries
—
13,709
Provision for (reversal of) allowance for
doubtful accounts, net
28
(32
)
Other, net
8
4
Changes in operating assets and
liabilities:
Accounts receivable
(5,485
)
1,374
Inventories
859
(527
)
Other assets
(1,132
)
3,667
Accounts payable
3,122
(1,849
)
Accrued income taxes
536
(2,094
)
Accrued and other liabilities
1,232
(228
)
Contract liabilities
(929
)
(1,063
)
Net cash (used in) provided by operating
activities
(265
)
1,276
Investing Activities
Purchases of property, plant and
equipment
(433
)
(345
)
Acquisition, net of cash and cash
equivalents acquired
(5,082
)
—
Net cash disposed of in sales of
subsidiaries
—
(9,940
)
Net cash used in investing activities
(5,515
)
(10,285
)
Financing Activities
Proceeds from the exercise of stock
options
930
779
Repurchase of common stock
—
(2,000
)
Payments on long-term debt
(189
)
(194
)
Net cash provided by (used in) financing
activities
741
(1,415
)
Effect of Exchange Rate Changes on
Cash, Cash Equivalents and Restricted Cash
368
558
Net Decrease in Cash, Cash Equivalents
and Restricted Cash
(4,671
)
(9,866
)
Cash, Cash Equivalents and Restricted
Cash, Beginning of Period*
45,070
59,134
Cash, Cash Equivalents and Restricted
Cash, End of Period
$
40,399
$
49,268
*
Includes Cash, Cash Equivalents and
Restricted Cash that are included in Held-For-Sale Assets on the
Condensed Consolidated Balance Sheets for periods prior to January
22, 2020.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210505005997/en/
Amtech Systems, Inc. Lisa D. Gibbs Chief Financial Officer (480)
360-3756 irelations@amtechsystems.com Sapphire Investor Relations,
LLC Erica Mannion and Mike Funari (617) 542-6180
irelations@amtechsystems.com
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