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 fourth quarter ended
September 30, 2020.
Fourth Quarter Fiscal 2020 Financial and Operational
Highlights from Continuing Operations:
- Net revenue of $15.1 million
- Operating loss of $1.2 million
- Loss from continuing operations, net of tax, of $2.0
million
- Loss per diluted share from continuing operations of $0.14
- Customer orders of $13.8 million
- Unrestricted cash of $45.1 million
Fiscal 2020 Financial and Operational Highlights from
Continuing Operations:
- Net revenue of $65.5 million
- Operating loss of $0.5 million
- Loss from continuing operations, net of tax, of $3.9 million,
primarily due to the sale of the Automation business
- Loss per diluted share from continuing operations of $0.28
- Customer orders of $62.8 million
- Backlog of $13.9 million as of September 30, 2020
Mr. Michael Whang, Chief Executive Officer of Amtech, commented,
“Given the challenges and uncertainty created by the pandemic in
2020, we are encouraged to have finished the year and begun our new
fiscal year with increasing customer order momentum. With the
combination of continuing improvement in near-term dialogue with
customers and the robust long-term growth fundamentals across the
silicon carbide, power semiconductor and advanced semiconductor
packaging markets, we are increasingly confident in the
opportunities for growth in 2021 and beyond.”
GAAP Financial Results
(in millions, except per share
amounts)
Q4 FY
Q3 FY
Q4 FY
12 Months
12 Months
2020
2020
2019
2020
2019
Net revenues
$
15.1
$
15.2
$
20.2
$
65.5
$
85.0
Gross profit
$
5.0
$
6.0
$
8.6
$
24.4
$
33.4
Gross margin
32.9
%
39.1
%
42.4
%
37.3
%
39.2
%
Operating (loss) income
$
(1.2
)
$
0.0
$
1.7
$
(0.5
)
$
4.9
Operating margin
-7.8
%
0.2
%
8.2
%
-0.7
%
5.8
%
(Loss) income from continuing operations,
net of tax
$
(2.0
)
$
(0.1
)
$
1.0
$
(3.9
)
$
3.1
Diluted (loss) income per share from
continuing operations
$
(0.14
)
$
(0.01
)
$
0.07
$
(0.28
)
$
0.22
Net revenues remained consistent sequentially and decreased 25%
from the fourth quarter of fiscal 2019. Semiconductor and SiC/LED
revenue decreased compared to the fourth quarter of fiscal 2019
primarily due to the ongoing uncertainty in the global economy from
the COVID-19 virus.
Gross margin decreased in the fourth quarter of fiscal 2020 both
sequentially and compared to the same prior year period. On a
sequential basis, gross margin decreased primarily due to product
mix and non-recurring expenses. Compared to the fourth quarter of
fiscal 2019, gross margin decreased primarily due to lower volume
and product mix.
Selling, General & Administrative (“SG&A”) expenses
increased $0.5 million sequentially due primarily to payroll tax
credits the Company was able to claim in fiscal Q3 2020 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 exclusion of the Company’s former
Automation segment from results and lower travel due to the
COVID-19 pandemic.
Operating loss was $1.2 million, compared to operating income of
$31,000 in the third quarter of fiscal 2020 and $1.7 million of
operating income in the same prior year period.
Loss from continuing operations, net of tax, for the fourth
quarter of fiscal 2020 was $2.0 million, or a loss of 14 cent per
share. This compares to income from continuing operations of $1.0
million, or 7 cents per share, for the fourth quarter of fiscal
2019 and loss of $0.1 million, or 1 cent per share, in the
preceding quarter.
Outlook
The Company’s outlook reflects the anticipated ongoing impacts
from the COVID-19 pandemic as understood today. Given how fluid the
situation is both for Amtech as well as that of its customers and
supply chain, management 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 the first fiscal quarter ending December 31, 2020, revenues
are expected to be in the range of $16.0 to $18.0 million. Gross
margin for the quarter ending December 31, 2020 is expected to be
in the mid 30% range, with operating margin slightly negative.
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 fourth quarter financial results. The call
will be available to interested parties by dialing 800-367-2403.
For international callers, please dial +1 334-777-6978. The
Conference ID number is 5637065. The call will be webcast and
available in the Investor Relations section of Amtech’s website at:
http://www.amtechsystems.com.
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," "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, 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) November
19, 2020 (Unaudited)
Summary Financial Information for Continuing Operations
(in thousands, except percentages and ratios)
Three Months Ended
Years Ended September
30,
September 30,
2020
June 30, 2020
September 30,
2019
2020
2019
Amtech Systems, Inc.
Revenues, net of returns and
allowances
$
15,084
$
15,227
$
20,174
$
65,463
$
85,035
Gross profit
$
4,958
$
5,951
$
8,560
$
24,441
$
33,357
Gross margin
33
%
39
%
42
%
37
%
39
%
Operating (loss) income
$
(1,181
)
$
31
$
1,653
$
(485
)
$
4,916
New orders
$
13,767
$
10,830
$
20,344
$
62,848
$
76,560
Backlog
$
13,905
$
15,221
$
17,326
$
13,905
$
17,326
Semiconductor Segment
Revenues, net of returns and
allowances
$
12,935
$
12,357
$
15,188
$
54,516
$
66,455
Gross profit
$
4,647
$
4,953
$
6,866
$
21,199
$
27,365
Gross margin
36
%
40
%
45
%
39
%
41
%
Operating income
$
406
$
1,058
$
2,316
$
4,168
$
8,744
New orders
$
11,979
$
8,356
$
16,163
$
52,448
$
60,625
Backlog
$
12,842
$
13,798
$
14,902
$
12,842
$
14,902
SiC/LED Segment
Revenues, net of returns and
allowances
$
2,149
$
2,870
$
4,352
$
10,304
$
13,682
Gross profit
$
311
$
998
$
1,814
$
3,233
$
5,338
Gross margin
14
%
35
%
42
%
31
%
39
%
Operating (loss) income
$
(512
)
$
241
$
1,388
$
684
$
3,641
New orders
$
1,788
$
2,474
$
2,399
$
10,400
$
11,973
Backlog
$
1,063
$
1,423
$
966
$
1,063
$
966
AMTECH SYSTEMS, INC. (NASDAQ: ASYS) November
19, 2020 (Unaudited)
Consolidated Statements of Operations (in thousands,
except per share data)
Three Months Ended
September 30,
Years Ended September
30,
2020
2019
2020
2019
Revenue, net of returns and allowances
$
15,084
$
20,174
$
65,463
$
85,035
Cost of sales
10,126
11,614
41,022
51,678
Gross profit
4,958
8,560
24,441
33,357
Selling, general and administrative
5,263
6,126
21,397
24,263
Research, development and engineering
876
743
3,312
3,068
Restructuring charges
—
38
217
1,110
Operating (loss) income
(1,181
)
1,653
(485
)
4,916
Loss on sale of subsidiary
—
—
(2,793
)
—
Interest (expense) income and other,
net
(350
)
341
162
852
(Loss) income from continuing operations
before income taxes
(1,531
)
1,994
(3,116
)
5,768
Income tax provision
494
1,012
791
2,633
(Loss) income from continuing operations,
net of tax
(2,025
)
982
(3,907
)
3,135
Loss from discontinued operations, net of
tax
—
(184
)
(11,816
)
(8,297
)
Net (loss) income
$
(2,025
)
$
798
$
(15,723
)
$
(5,162
)
(Loss) Income Per Basic Share:
Basic (loss) income per share from
continuing operations
$
(0.14
)
$
0.07
$
(0.28
)
$
0.22
Basic loss per share from discontinued
operations
$
—
$
(0.01
)
$
(0.83
)
$
(0.58
)
Net (loss) income per basic share
$
(0.14
)
$
0.06
$
(1.11
)
$
(0.36
)
(Loss) Income Per Diluted
Share:
Diluted (loss) income per share from
continuing operations
$
(0.14
)
$
0.07
$
(0.28
)
$
0.22
Diluted loss per share from discontinued
operations
$
—
$
(0.01
)
$
(0.83
)
$
(0.58
)
Net (loss) income per diluted share
$
(0.14
)
$
0.06
$
(1.11
)
$
(0.36
)
Weighted average shares outstanding -
basic
14,052
14,266
14,159
14,240
Weighted average shares outstanding -
diluted
14,052
14,304
14,159
14,275
AMTECH SYSTEMS, INC. (NASDAQ: ASYS) November
19, 2020 (Unaudited)
Consolidated Balance Sheets (in thousands, except
share data)
September 30,
2020
September 30,
2019
Assets
Current Assets
Cash and cash equivalents
$
45,070
$
52,982
Restricted cash
—
101
Accounts receivable (less allowance for
doubtful accounts of $159 and $172 at
September 30, 2020 and September 30, 2019,
respectively)
11,243
12,873
Inventory
17,277
17,532
Contract assets
—
36
Income taxes receivable
1,362
—
Held-for-sale assets
—
22,755
Other current assets
1,617
1,991
Total current assets
76,569
108,270
Property, Plant and Equipment -
Net
11,995
10,217
Right-of-Use Assets - Net
5,124
—
Intangible Assets - Net
609
870
Goodwill - Net
6,633
6,633
Deferred Income Taxes - Net
566
—
Other Assets
602
487
Total Assets
$
102,098
$
126,477
Liabilities and Shareholders’
Equity
Current Liabilities
Accounts payable
$
2,676
$
4,371
Accrued compensation and related taxes
2,066
2,717
Accrued warranty expense
380
556
Other accrued liabilities
751
1,274
Current maturities of long-term debt
380
371
Contract liabilities
1,224
1,378
Income taxes payable
—
1,434
Held-for-sale liabilities
—
18,547
Total current liabilities
7,477
30,648
Long-Term Debt
4,798
5,178
Long-Term Lease Liability
5,064
—
Income Taxes Payable
3,240
3,199
Total Liabilities
20,579
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: 14,063,172 and
14,268,797 at
September 30, 2020 and September 30, 2019,
respectively
141
143
Additional paid-in capital
124,435
125,098
Accumulated other comprehensive loss
(646
)
(11,233
)
Retained deficit
(42,411
)
(26,556
)
Total Shareholders’ Equity
81,519
87,452
Total Liabilities and Shareholders’
Equity
$
102,098
$
126,477
AMTECH SYSTEMS, INC. (NASDAQ: ASYS) November
19, 2020 (Unaudited)
Consolidated Statements of Cash Flows (in
thousands)
Years Ended September
30,
2020
2019
Operating Activities
Net (loss) income
$
(15,723
)
$
(5,162
)
Adjustments to reconcile net (loss) income
to net cash (used in) provided by
operating activities:
Depreciation and amortization
1,258
1,690
Non-cash impairment charges
—
—
Write-down of inventory
733
3,193
Provision for allowance for doubtful
accounts
24
1,074
Deferred income taxes
218
220
Non-cash share based compensation
expense
326
573
Loss (gain) on sales of subsidiaries
13,709
(1,614
)
Other, net
55
95
Changes in operating assets and
liabilities:
Accounts receivable
1,359
299
Inventory
(913
)
(435
)
Contract and other assets
324
12,847
Accounts payable
(3,620
)
(1,787
)
Accrued income taxes
(2,701
)
(3,011
)
Accrued and other liabilities
4,658
(6,876
)
Contract liabilities
(1,371
)
(933
)
Net cash (used in) provided by operating
activities
(1,664
)
173
Investing Activities
Purchases of property, plant and
equipment
(2,676
)
(714
)
Net cash disposed of in sales of
subsidiaries
(9,940
)
(1,112
)
Net cash used in investing activities
(12,616
)
(1,826
)
Financing Activities
Proceeds from the exercise of stock
options
877
210
Repurchase of common stock
(2,000
)
—
Payments on long-term debt
(379
)
(376
)
Borrowings on long-term debt
—
9
Net cash used in financing activities
(1,502
)
(157
)
Effect of Exchange Rate Changes on
Cash, Cash Equivalents and
Restricted Cash
1,718
(1,552
)
Net Decrease in Cash, Cash Equivalents
and Restricted Cash
(14,064
)
(3,362
)
Cash, Cash Equivalents and Restricted
Cash, Beginning of Year*
59,134
62,496
Cash, Cash Equivalents and Restricted
Cash, End of Year*
$
45,070
$
59,134
* 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/20201119006211/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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