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 first quarter ended December
31, 2020.
First Quarter Fiscal 2021 Financial and Operational
Highlights:
- Net revenue of $18.0 million
- Operating income of $1.1 million
- Income from continuing operations, net of tax, of $0.7
million
- Income per diluted share of $0.05
- Customer orders of $17.9 million
- Unrestricted cash of $45.6 million
Mr. Michael Whang, Chief Executive Officer of Amtech, commented,
“Amtech delivered strong results in the first quarter, with
sequential growth driven by increasing demand for our products
within the semiconductor segment we serve. We are encouraged to see
this continue into the second quarter with a broadening of quoting
activity across multiple end markets. As global economies return to
growth and with the emergence of chip shortages, the long-term
demand drivers for our business remain as strong as ever, with
automotive, renewable energy, mobile devices and wireless
communications applications driving increased demand for power
semiconductors, including silicon carbide, in the years ahead.”
GAAP Financial Results
(in millions, except per share
amounts)
Q1
Q4
Q1
FY 2021
FY 2020
FY 2020
Net revenues
$
18.0
$
15.1
$
20.7
Gross profit
$
7.5
$
5.0
$
8.2
Gross margin
41.8
%
32.9
%
39.5
%
Operating income (loss)
$
1.1
$
(1.2
)
$
1.6
Operating margin
5.9
%
-7.8
%
7.9
%
Income (loss) from continuing operations,
net of tax
$
0.7
$
(2.0
)
$
(1.3
)
Diluted income (loss) per share from
continuing operations
$
0.05
$
(0.14
)
$
(0.09
)
Net revenues increased 19% sequentially and decreased 13% from
the first quarter of fiscal 2020, with the sequential increase
primarily attributed to the shipment of our 300mm clustered HTR
diffusion furnace to a top-tier global power semiconductor
customer, as previously announced.
Gross margin increased in the first quarter of fiscal 2021 both
sequentially and compared to the same prior year period due to
favorable product mix.
Selling, General & Administrative (“SG&A”) expenses
decreased $0.1 million sequentially and $0.7 million compared to
the same prior year period. The decrease compared to the prior year
period was primarily due to legal costs incurred in fiscal Q1 2020
relating to our solar divestiture.
Operating income was $1.1 million, compared to operating loss of
$1.2 million in the fourth quarter of fiscal 2020 and operating
income of $1.6 million in the same prior year period.
Income tax provision was $0.1 million for the three months ended
December 31, 2020 and includes a benefit of approximately $0.3
million related to the reversal of previously recorded uncertain
tax positions.
Income from continuing operations, net of tax, for the first
quarter of fiscal 2021 was $0.7 million, or 5 cents per share. This
compares to loss from continuing operations of $1.3 million, or 9
cents per share, for the first quarter of fiscal 2020 and loss of
$2.0 million, or 14 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, as well as impacts
from the shortage of shipping containers and the related delays for
goods shipped from China. 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 second fiscal quarter ending March 31, 2021, revenues
are expected to be in the range of $18.0 to $20.0 million. Gross
margin for the quarter ending March 31, 2021 is expected to be
approximately 40%, with operating margin positive.
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 first quarter financial results. The call
will be available to interested parties by dialing 800-437-2398.
For international callers, please dial +1 323-289-6576. The
Conference ID number is 7458358. 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," "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)
February 11, 2021
(Unaudited)
Summary Financial Information for
Continuing Operations
(in thousands, except percentages and
ratios)
Three Months Ended
December 31,
2020
September 30,
2020
December 31,
2019
Amtech Systems, Inc.
Revenues, net of returns and
allowances
$
17,975
$
15,084
$
20,692
Gross profit
$
7,512
$
4,958
$
8,174
Gross margin
42
%
33
%
40
%
Operating income (loss)
$
1,054
$
(1,181
)
$
1,637
New orders
$
17,869
$
13,767
$
17,625
Backlog
$
13,799
$
13,905
$
13,444
Semiconductor Segment
Revenues, net of returns and
allowances
$
15,575
$
12,935
$
17,232
Gross profit
$
6,912
$
4,647
$
7,186
Gross margin
44
%
36
%
42
%
Operating income
$
2,197
$
406
$
2,722
New orders
$
15,483
$
11,979
$
15,094
Backlog
$
12,750
$
12,842
$
12,764
SiC/LED Segment
Revenues, net of returns and
allowances
$
2,400
$
2,149
$
2,817
Gross profit
$
600
$
311
$
979
Gross margin
25
%
14
%
35
%
Operating (loss) income
$
(66
)
$
(512
)
$
534
New orders
$
2,386
$
1,788
$
2,531
Backlog
$
1,049
$
1,063
$
680
AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
February 11, 2021
(Unaudited)
Condensed Consolidated Statements of
Operations
(in thousands, except per share
data)
Three Months Ended December
31,
2020
2019
Revenues, net of returns and
allowances
$
17,975
$
20,692
Cost of sales
10,463
12,518
Gross profit
7,512
8,174
Selling, general and administrative
5,213
5,915
Research, development and engineering
1,245
622
Operating income
1,054
1,637
Loss on sale of subsidiary
—
(2,793
)
Interest expense and other, net
(255
)
(70
)
Income (loss) from continuing operations
before income taxes
799
(1,226
)
Income tax provision
80
41
Income (loss) from continuing operations,
net of tax
719
(1,267
)
Loss from discontinued operations, net of
tax
—
(665
)
Net income (loss)
$
719
$
(1,932
)
Income (Loss) Per Basic Share:
Basic income (loss) per share from
continuing operations
$
0.05
$
(0.09
)
Basic loss per share from discontinued
operations
$
—
$
(0.05
)
Net income (loss) per basic share
$
0.05
$
(0.14
)
Income (Loss) Per Diluted
Share:
Diluted income (loss) per share from
continuing operations
$
0.05
$
(0.09
)
Diluted loss per share from discontinued
operations
$
—
$
(0.05
)
Net income (loss) per diluted share
$
0.05
$
(0.14
)
Weighted average shares outstanding -
basic
14,072
14,290
Weighted average shares outstanding -
diluted
14,117
14,290
AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
February 11, 2021
(Unaudited)
Condensed Consolidated Balance
Sheets
(in thousands, except share
data)
December 31,
2020
September 30,
2020
Assets
Current Assets
Cash and cash equivalents
$
45,614
$
45,070
Accounts receivable (less allowance for
doubtful accounts of $169 and $159 at December 31, 2020, and
September 30, 2020, respectively)
13,940
11,243
Inventories
16,616
17,277
Income taxes receivable
1,362
1,362
Other current assets
1,501
1,617
Total current assets
79,033
76,569
Property, Plant and Equipment -
Net
11,952
11,995
Right-of-Use Assets - Net
5,155
5,124
Intangible Assets - Net
543
609
Goodwill - Net
6,633
6,633
Deferred Income Taxes - Net
566
566
Other Assets
645
602
Total Assets
$
104,527
$
102,098
Liabilities and Shareholders’
Equity
Current Liabilities
Accounts payable
$
3,414
$
2,676
Accrued compensation and related taxes
2,406
2,066
Accrued warranty expense
350
380
Other accrued liabilities
719
751
Current maturities of long-term debt
384
380
Contract liabilities
1,156
1,224
Total current liabilities
8,429
7,477
Long-Term Debt
4,701
4,798
Long-Term Lease Liability
5,090
5,064
Income Taxes Payable
3,274
3,240
Total Liabilities
21,494
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: 14,091,422 and
14,063,172 at December 31, 2020 and September 30, 2020,
respectively
141
141
Additional paid-in capital
124,635
124,435
Accumulated other comprehensive loss
(51
)
(646
)
Retained deficit
(41,692
)
(42,411
)
Total shareholders’ equity
83,033
81,519
Total Liabilities and Shareholders’
Equity
$
104,527
$
102,098
AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
February 11, 2021
(Unaudited)
Condensed Consolidated Statements of
Cash Flows
(in thousands)
Three Months Ended December
31,
2020
2019
Operating Activities
Net income (loss)
$
719
$
(1,932
)
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization
325
406
Write-down of inventory
48
311
Deferred income taxes
—
784
Non-cash share-based compensation
expense
65
68
Loss on sale of subsidiary
—
2,793
Provision for (reversal of) allowance for
doubtful accounts, net
5
(59
)
Other, net
3
13
Changes in operating assets and
liabilities:
Accounts receivable
(2,702
)
3,296
Inventories
613
1,025
Other assets
20
(1,458
)
Accounts payable
738
(1,983
)
Accrued income taxes
34
(1,616
)
Accrued and other liabilities
304
(486
)
Contract liabilities
(68
)
(1,330
)
Net cash provided by (used in) operating
activities
104
(168
)
Investing Activities
Purchases of property, plant and
equipment
(198
)
(173
)
Net cash disposed of in sale of
subsidiary
—
(647
)
Net cash used in investing activities
(198
)
(820
)
Financing Activities
Proceeds from the exercise of stock
options
135
701
Payments on long-term debt
(93
)
(103
)
Net cash provided by financing
activities
42
598
Effect of Exchange Rate Changes on
Cash, Cash Equivalents and Restricted Cash
596
1,141
Net Increase in Cash, Cash Equivalents
and Restricted Cash
544
751
Cash, Cash Equivalents and Restricted
Cash, Beginning of Period*
45,070
59,134
Cash, Cash Equivalents and Restricted
Cash, End of Period*
$
45,614
$
59,885
* 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/20210211005814/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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