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 third quarter ended June 30, 2020.
Third Quarter Fiscal 2020 Financial and Operational
Highlights from Continuing Operations:
- Net revenue of $15.2 million
- Breakeven operating income of $31,000
- Loss from continuing operations, net of tax, of $0.1
million
- Loss per diluted share from continuing operations of $0.01
- Customer orders of $10.8 million
- Unrestricted cash of $46.4 million
Mr. Michael Whang, Chief Executive Officer of Amtech, commented,
“While the global pandemic continues to create operational
challenges, thanks to the diligent efforts of our employees and
supply chain partners, in the third quarter we saw minimal
disruption in our ability to service customers. In the fourth
quarter, we began to see a rise in customer engagement with our
recently announced 300mm diffusion furnace order. We believe this
is an early indicator of the strength in long-term demand drivers
for power semiconductors, including silicon carbide, led by growing
demand from electric vehicles and automotive sensors, renewable
energy, mobile devices, and wireless communications applications,”
concluded Mr. Whang.
GAAP Financial Results
(in millions, except per share
amounts)
Q3
Q2
Q3
9 Months
9 Months
FY 2020
FY 2020
FY 2019
2020
2019
Net revenues
$
15.2
$
14.5
$
21.0
$
50.4
$
64.9
Gross profit
$
6.0
$
5.4
$
7.9
$
19.5
$
24.8
Gross margin
39
%
37
%
37
%
39
%
38
%
Operating income (loss)
$
0.0
$
(1.0
)
$
1.4
$
0.7
$
3.3
Operating margin
0.2
%
-6.7
%
6.4
%
1.4
%
5.0
%
(Loss) income from continuing operations,
net of tax
$
(0.1
)
$
(0.5
)
$
0.9
$
(1.9
)
$
2.2
Diluted (loss) income per share from
continuing operations
$
(0.01
)
$
(0.04
)
$
0.06
$
(0.13
)
$
0.15
Net revenues increased 5% sequentially and decreased 28% from
the third quarter of fiscal 2019. Semiconductor and SiC/LED revenue
in fiscal Q3 2020 increased sequentially due primarily to our
Shanghai facility returning to normal operations after the extended
Chinese New Year in fiscal Q2 and increased consumable and machine
shipments in our SiC/LED segment. Semiconductor and SiC/LED revenue
decreased compared to the third quarter of fiscal 2019 primarily
due to global COVID-19 impacts on our customers.
Gross margin increased in the third quarter of fiscal 2020 both
sequentially and compared to the same prior year period, primarily
due to favorable product mix.
Selling, General & Administrative (“SG&A”) expenses
decreased $0.6 million sequentially due primarily to payroll tax
credits the Company was able to claim as part of the COVID-19
legislation passed by U.S. Congress, the CARES Act. SG&A
decreased $0.9 million compared to the same prior year period due
primarily to the payroll tax credits, not having our former
Automation segment included in our results, and lower travel due to
the COVID-19 pandemic.
Relocation and R&D expenses that were expected in the
quarter shifted into the fourth quarter of fiscal 2020 due to
shutdowns and delays resulting from the COVID-19 pandemic.
Operating results were breakeven, primarily from lower SG&A in
the quarter, compared to operating loss of $1.0 million in the
second quarter of fiscal 2020 and $1.4 million of operating income
in the same prior year period.
Loss from continuing operations, net of tax, for the third
quarter of fiscal 2020 was $0.1 million, or 1 cent per share. This
compares to income from continuing operations of $0.9 million, or 6
cents per share, for the third quarter of fiscal 2019 and loss of
$0.5 million, or 4 cents per share, in the preceding quarter.
Outlook
Our outlook reflects the anticipated ongoing impacts from the
COVID-19 pandemic as we understand them today; however, given how
fluid the situation is both for our own business as well as for
that of our customers and supply chain, we would like to remind
investors that 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 our fourth fiscal quarter ending September 30, 2020,
revenues are expected to be in the range of $13.0 to $15.0 million.
Gross margin for the quarter ending September 30, 2020 is expected
to be in the mid 30% range, with negative operating margin,
primarily due to one-time moving costs for our SiC/LED segment to
relocate into their new building and an increase in R&D related
to new product development.
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 third quarter financial results. The call
will be available to interested parties by dialing 800-430-8332.
For international callers, please dial +1 323-347-3612. The
Conference ID number is 9393233. The call will be webcast and
available in the Investor Relations section of Amtech’s website at:
http://www.amtechsystems.com/conference.htm.
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 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 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, 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.
AMTECH SYSTEMS, INC. (NASDAQ: ASYS) August 6,
2020 (Unaudited)
Summary Financial Information for Continuing Operations
(in thousands, except percentages and ratios)
Three Months Ended
Nine Months Ended June
30,
June 30, 2020
March 31, 2020
June 30, 2019
2020
2019
Amtech Systems, Inc.
Revenues, net of returns and
allowances
$
15,227
$
14,460
$
21,003
$
50,379
$
64,861
Gross profit
$
5,951
$
5,358
$
7,850
$
19,483
$
24,797
Gross margin
39
%
37
%
37
%
39
%
38
%
Operating income (loss)
$
31
$
(972
)
$
1,351
$
696
$
3,263
New orders
$
10,830
$
20,626
$
16,278
$
49,081
$
56,216
Backlog
$
15,221
$
19,618
$
17,237
$
15,221
$
17,237
Semiconductor Segment
Revenues, net of returns and
allowances
$
12,357
$
11,992
$
16,254
$
41,581
$
51,267
Gross profit
$
4,953
$
4,413
$
6,566
$
16,552
$
20,499
Gross margin
40
%
37
%
40
%
40
%
40
%
Operating income (loss)
$
1,058
$
(18
)
$
1,951
$
3,762
$
6,428
New orders
$
8,356
$
17,019
$
12,899
$
40,469
$
44,462
Backlog
$
13,798
$
17,799
$
13,931
$
13,798
$
13,931
SiC/LED Segment
Revenues, net of returns and
allowances
$
2,870
$
2,468
$
3,074
$
8,155
$
9,330
Gross profit
$
998
$
945
$
1,038
$
2,922
$
3,524
Gross margin
35
%
38
%
34
%
36
%
38
%
Operating income
$
241
$
421
$
607
$
1,196
$
2,253
New orders
$
2,474
$
3,607
$
2,697
$
8,612
$
9,574
Backlog
$
1,423
$
1,819
$
2,934
$
1,423
$
2,934
AMTECH SYSTEMS, INC. (NASDAQ: ASYS) August 6,
2020 (Unaudited)
Condensed Consolidated Statements of Operations (in
thousands, except per share data)
Three Months Ended June
30,
Nine Months Ended June
30,
2020
2019
2020
2019
Revenues, net of returns and
allowances
$
15,227
$
21,003
$
50,379
$
64,861
Cost of sales
9,276
13,153
30,896
40,064
Gross profit
5,951
7,850
19,483
24,797
Selling, general and administrative
4,804
5,718
16,134
18,137
Research, development and engineering
899
746
2,436
2,325
Restructuring charges
217
35
217
1,072
Operating income
31
1,351
696
3,263
Loss on sale of subsidiary
—
—
(2,793
)
—
Interest (expense) income and other,
net
(13
)
249
512
511
Income (loss) from continuing operations
before
income taxes
18
1,600
(1,585
)
3,774
Income tax provision
90
707
297
1,621
(Loss) income from continuing operations,
net of tax
(72
)
893
(1,882
)
2,153
Income (loss) from discontinued
operations, net of tax
—
1,154
(11,816
)
(8,113
)
Net (loss) income
$
(72
)
$
2,047
$
(13,698
)
$
(5,960
)
(Loss) Income Per Basic Share:
Basic (loss) income per share from
continuing
operations
$
(0.01
)
$
0.06
$
(0.13
)
$
0.15
Basic income (loss) per share from
discontinued
operations
$
—
$
0.08
$
(0.83
)
$
(0.57
)
Net (loss) income per basic share
$
(0.01
)
$
0.14
$
(0.96
)
$
(0.42
)
(Loss) Income Per Diluted
Share:
Diluted (loss) income per share from
continuing
operations
$
(0.01
)
$
0.06
$
(0.13
)
$
0.15
Diluted income (loss) per share from
discontinued
operations
$
—
$
0.08
$
(0.83
)
$
(0.57
)
Net (loss) income per diluted share
$
(0.01
)
$
0.14
$
(0.96
)
$
(0.42
)
Weighted average shares outstanding -
basic
14,155
14,245
14,195
14,231
Weighted average shares outstanding -
diluted
14,155
14,316
14,195
14,267
AMTECH SYSTEMS, INC. (NASDAQ: ASYS) August 6,
2020 (Unaudited)
Condensed Consolidated Balance Sheets (in thousands,
except share data)
June 30, 2020
September 30, 2019
Assets
Current Assets
Cash and cash equivalents
$
46,436
$
52,982
Restricted cash
—
101
Accounts receivable (less allowance for
doubtful accounts of $138 and $172 at
June 30, 2020, and September 30, 2019,
respectively)
10,297
12,873
Inventories
19,385
17,532
Notes and other receivables
1,250
—
Income taxes receivable
150
—
Held-for-sale assets
—
22,755
Other current assets
3,066
2,027
Total current assets
80,584
108,270
Property, Plant and Equipment -
Net
10,438
10,217
Right-of-Use Assets - Net
5,162
—
Intangible Assets - Net
674
870
Goodwill - Net
6,633
6,633
Other Assets
565
487
Total Assets
$
104,056
$
126,477
Liabilities and Shareholders’
Equity
Current Liabilities
Accounts payable
$
3,933
$
4,371
Accrued compensation and related taxes
1,983
2,717
Accrued warranty expense
401
556
Other accrued liabilities
1,478
1,274
Current maturities of long-term debt
376
371
Contract liabilities
1,645
1,378
Income taxes payable
—
1,434
Held-for-sale liabilities
—
18,547
Total current liabilities
9,816
30,648
Long-Term Debt
4,894
5,178
Long-Term Lease Liability
5,088
—
Income Taxes Payable
2,007
3,199
Total Liabilities
21,805
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: 14,048,172 and
14,268,797 at June 30, 2020
and September 30, 2019, respectively
140
143
Additional paid-in capital
124,289
125,098
Accumulated other comprehensive loss
(1,792
)
(11,233
)
Retained deficit
(40,386
)
(26,556
)
Total shareholders’ equity
82,251
87,452
Total Liabilities and Shareholders’
Equity
$
104,056
$
126,477
AMTECH SYSTEMS, INC. (NASDAQ: ASYS) August 6,
2020 (Unaudited)
Condensed Consolidated Statements of Cash Flows
(in thousands)
Nine Months Ended June
30,
2020
2019
Operating Activities
Net loss
$
(13,698
)
$
(5,960
)
Adjustments to reconcile net loss to net
cash (used in) provided by
operating activities:
Depreciation and amortization
932
1,280
Write-down of inventory
540
2,991
Deferred income taxes
784
192
Non-cash share-based compensation
expense
257
474
Loss (gain) on sales of subsidiaries
13,708
(1,614
)
(Reversal of) provision for allowance for
doubtful accounts, net
(26
)
1,104
Other, net
13
107
Changes in operating assets and
liabilities:
Accounts receivable
2,356
630
Inventories
(2,791
)
284
Other assets
(2,376
)
12,675
Accounts payable
(2,363
)
(3,843
)
Accrued income taxes
(2,722
)
(1,359
)
Accrued and other liabilities
5,346
(5,726
)
Contract liabilities
(950
)
(814
)
Net cash (used in) provided by operating
activities
(990
)
421
Investing Activities
Purchases of property, plant and
equipment
(860
)
(552
)
Net cash disposed of in sales of
subsidiaries
(9,940
)
(1,112
)
Net cash used in investing activities
(10,800
)
(1,664
)
Financing Activities
Proceeds from the exercise of stock
options
799
175
Repurchase of common stock
(2,000
)
—
Payments on long-term debt
(285
)
(280
)
Borrowings on long-term debt
—
9
Net cash used in financing activities
(1,486
)
(96
)
Effect of Exchange Rate Changes on
Cash, Cash Equivalents and
Restricted Cash
578
(1,450
)
Net Decrease in Cash, Cash Equivalents
and Restricted Cash
(12,698
)
(2,789
)
Cash, Cash Equivalents and Restricted
Cash, Beginning of Period*
59,134
62,496
Cash, Cash Equivalents and Restricted
Cash, End of Period*
$
46,436
$
59,707
* 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/20200806005856/en/
Amtech Systems, Inc. Lisa D. Gibbs Chief Financial Officer (480)
967-5146 irelations@amtechsystems.com Sapphire Investor Relations,
LLC Erica Mannion and Mike Funari (617) 542-6180
irelations@amtechsystems.com
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