TEMPE, Ariz., Feb. 9, 2017 /PRNewswire/ -- Amtech Systems,
Inc. (NASDAQ: ASYS), a global supplier of production equipment and
related supplies for the solar, semiconductor, and LED
markets, today reported results for its first fiscal quarter ended
December 31, 2016.
First Quarter Fiscal 2017 Operational and Financial
Highlights
- Customer orders of $34.7 million
(solar $15.9 million)
- Book-to-bill of 1.1:1 (solar 1.2:1)
- Net revenue of $29.1 million
(solar $11.4 million)
- Quarter-end backlog of $51.5
million (solar $35.8
million)
- Essentially break-even with a net loss of $53,000, or ($0.00)
per share
- Total cash of $45.8 million as of
January 31, 2017
Mr. Fokko Pentinga, Chief
Executive Officer of Amtech, commented, "A significant portion of
the Solar orders in the first quarter were for our new high
throughput PECVD and N-type diffusion products. The first
quarter shipments included our superior PERC solution that combines
SoLayTec's spatial ALD deposition tool and Tempress' high
throughput PECVD tool.
In addition to the reported first quarter orders, on
January 24, 2017 we announced new
orders for Semi and Solar Diffusion and PECVD and a large order
from a new customer in China for a
turnkey project using our proven n-type bi-facial technology.
Those orders brought our year-to-date bookings through January 20, 2017 to $84
million. The turnkey order, the first of a multiphase
1GW project, includes our high throughput PECVD and diffusion
systems. The customer deposits we received with that turnkey and
other orders for both Solar and Semi contributed to the increase in
total cash. These orders demonstrate that the new Tempress
PECVD platform is clearly significant to further strengthening our
market position and increasing market penetration.
By working side-by-side with our customers and technology
institutes we are able to offer P-type multi and mono and newer
technologies, particularly proven N-type bi-facial, advanced N-PERT
technologies, and PERC, which are clearly advancing the solar
industry's goal of higher efficiency and lower total cost of
ownership. Recently, we have experienced increased customer
interest in our N-type technology.
Mr. Pentinga continued, "Our semi business has been a steady
contributor over the last few quarters as its underlying markets
have improved. During our first quarter, this segment
produced both good volumes and margins. Our diversified
mix of semiconductor business provides important cash
flow which supports our growth business model. All of
our segments, solar, semiconductor and polishing contributed to
achieving breakeven and positive EBITDA."
Financial Results
Customer orders in the first quarter of fiscal 2017 were
$34.7 million ($15.9 million solar), compared to $27.7 million ($11.8
million solar) in the preceding quarter and $35.6 million ($23.0
million solar) in the first quarter of fiscal 2016.
These orders do not include the large order announced in
January 2017 for a turnkey project in
China for a solar cell
manufacturing line for n-type bi-facial cells, or the other January
orders in that order announcement.
At December 31, 2016, the
Company's total order backlog was $51.5
million ($35.8 solar) compared
to total backlog of $48.6 million
(solar $34.0 million) at September 30, 2016 and $42.9 million (solar $31.3
million) at December 31,
2015. Backlog includes deferred revenue and customer orders
that are expected to ship within the next 12 months.
Net revenue for the first quarter of fiscal 2017 was
$29.1 million, a decrease of 31%
compared to $42.4 million in the
preceding quarter, and an increase of 32% compared to $22.1 million in the first quarter of fiscal
2016. The sequential decrease is due primarily to the timing of the
shipment of large systems orders that contributed to the higher
solar revenue in the fourth quarter of fiscal 2016 and due to the
seasonality in our semiconductor business. The increase from the
first quarter of fiscal 2016 is due primarily to increased demand
for our solar PECVD tools and semiconductor equipment.
Gross margin in the first quarter of fiscal 2017 was 29%,
compared to 29% in the previous quarter and 27% in the first
quarter of fiscal 2016. Sequentially, the gross margins benefitted
from the recognition of previously deferred profit that was offset
by lower capacity utilization. The higher gross margin compared to
a year ago is primarily due to increased sales volumes and improved
product mix in the semiconductor and polishing segments, offset by
lower deferred profit recognition in the solar segment.
Selling, general and administrative (SG&A) expenses in the
first quarter of fiscal 2017 were $7.0
million compared to $10.3
million in the preceding quarter and $7.6 million in the first quarter of fiscal 2016.
Sequentially, the decrease in SG&A results primarily from
the collection of approximately $1.0
million of previously reserved accounts receivable and a
provision for doubtful accounts receivable of $1.8 million recorded in the fourth quarter of
fiscal 2016. Compared to the same quarter in fiscal 2016, the
decrease results primarily from collection of previously reserved
accounts receivable, partially offset by higher selling expenses
related to higher revenues. SG&A expenses include $0.3 million of stock-based compensation expense
in the first quarter of fiscal 2017, fourth quarter of fiscal 2016
and first quarter of fiscal 2016.
Research, development and engineering (RD&E) expense was
$1.6 million in the first quarter of
fiscal 2017 compared to $2.0 million
in the preceding quarter and $2.3
million in the first quarter of fiscal 2016.
Depreciation and amortization in the first quarter of fiscal
2017 was $654,000, compared to
$697,000 in the preceding quarter and
$783,000 in the first quarter of
fiscal 2016.
Income tax expense in the first quarter of fiscal 2017 was
$0.1 million compared to $1.1 million in the preceding quarter. The
sequential decrease is due primarily to an increase in the
valuation allowance and an increase in income before taxes in
the United States in the fourth
quarter of fiscal 2016. The Company had income tax expense in the
first quarter of fiscal 2016 of $0.3
million.
Net loss for the first quarter of fiscal 2017 was $53,000, or $0.00
per share, compared to a net loss of $0.3
million or $0.02 per share in
the preceding quarter and net loss for the first quarter of fiscal
2016 of $4.0 million, or $0.31 per share.
Total unrestricted cash and cash equivalents at December 31, 2016 were $23.6 million, compared to $27.7 million at September
30, 2016. The decrease in cash is due primarily to cash used
to fund working capital. Total cash, including restricted
cash, increased to $45.8 million as
of January 31, 2017 due primarily to
the customer deposits we received with the turnkey and other orders
for both Solar and Semi.
Outlook
The company expects revenues for the quarter ending March 31, 2017, to be in the range of
$27 to $30 million. Gross margin for
the quarter ending March 31, 2017, is
expected to be in the mid 20s percent range, with operating margin
negative. Due to the recent increase in orders, including the
large turnkey order received in January
2017, revenue is expected to increase significantly in the
second half of fiscal 2017 and is expected to lead to an
improvement in the results of operations for the second half as
compared to the first half of the fiscal year.
Operating results could be impacted by the timing of system
shipments, the net impact of revenue deferral on those shipments,
and recognition of revenue based on customer acceptances, all of
which can have a significant effect on operating results.
A substantial portion of Amtech's revenues are denominated in
Euros. The revenue outlook provided in this press release is based
on an assumed exchange rate between the United States Dollar and
the Euro. A significant decrease in the value of the Euro in
relation to the United States Dollar could cause actual revenues to
be lower than anticipated.
Conference Call
Amtech Systems will host a conference call and webcast today at
5:00pm ET to discuss first quarter
fiscal 2017 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 16, 2017. To access the replay
please dial US toll free (877) 344-7529 and enter code 10100831.
Internationally, dial (412) 317-0088 and use the same
code.
A live and archived web cast 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 global supplier of advanced thermal
processing equipment to the solar, semiconductor / electronics, and
LED manufacturing markets. Amtech's equipment includes diffusion,
ALD and PECVD systems and solder reflow systems. Amtech also
supplies wafer handling automation and polishing equipment and
related consumable products. The Company's wafer handling, thermal
processing and consumable products currently address the diffusion,
oxidation, and deposition steps used in the fabrication of solar
cells, LEDs, semiconductors, MEMS, printed circuit boards,
semiconductor packaging, and the polishing of newly sliced sapphire
and silicon wafers. Amtech's products are recognized under the
leading brand names Tempress Systems™, Bruce
Technologies™, PR Hoffman™, R2D
Automation™, SoLayTec, and BTU
International.
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). In
some cases, forward-looking statements can be identified by
terminology such as "may," "will," "should," "would," "expects,"
"plans," "anticipates," "intends," "believes," "estimates,"
"predicts," "potential," "continue," or the negative of these terms
or other comparable terminology or our management are intended to
identify such forward-looking statements. Examples of
forward-looking statements include statements regarding Amtech's
future financial results, operating results, business strategies,
projected costs, products under development, competitive positions,
and plans and objectives of Amtech and its management for future
operations. 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, 2016, 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-Ks 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.
Robert T.
Hass
Chief Financial
Officer
(480)
967-5146
irelations@Amtechsystems.com
|
Christensen
Investor
Relations
Patty
Bruner
(480)
201-6075
pbruner@christensenir.com
|
AMTECH SYSTEMS,
INC.
|
(NASDAQ:
ASYS)
|
February 9,
2017
|
|
|
|
|
|
Condensed
Consolidated Statements of Operations
|
(in thousands,
except per share data)
|
|
|
Three Months Ended
December 31,
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
Revenues, net of
returns and allowances
|
$
29,135
|
|
$
22,074
|
Cost of
sales
|
20,692
|
|
16,119
|
Gross
profit
|
8,443
|
|
5,955
|
|
|
|
|
Selling, general and
administrative
|
6,996
|
|
7,596
|
Research, development
and engineering
|
1,627
|
|
2,288
|
Operating
loss
|
(180)
|
|
(3,929)
|
|
|
|
|
Loss from equity
method investment
|
(143)
|
|
(17)
|
Interest expense and
other income, net
|
81
|
|
(202)
|
Loss before income
taxes
|
(242)
|
|
(4,148)
|
|
|
|
|
Income tax
provision
|
90
|
|
300
|
Net
loss
|
(332)
|
|
(4,448)
|
|
|
|
|
Add: net loss
attributable to noncontrolling interest
|
279
|
|
433
|
Net loss
attributable to Amtech Systems, Inc.
|
$
(53)
|
|
$
(4,015)
|
|
|
|
|
Loss Per
Share:
|
|
|
|
Basic loss per share
attributable to Amtech shareholders
|
$
(0.00)
|
|
$
(0.31)
|
Weighted average
shares outstanding
|
13,179
|
|
13,152
|
|
|
|
|
Diluted loss per
share attributable to Amtech shareholders
|
$
(0.00)
|
|
$
(0.31)
|
Weighted average
shares outstanding
|
13,179
|
|
13,152
|
AMTECH SYSTEMS,
INC.
|
(NASDAQ:
ASYS)
|
February 9,
2017
|
|
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
|
|
|
|
|
|
December
31,
|
September
30,
|
Assets
|
|
2016
|
2016
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
23,638
|
$
27,655
|
|
Restricted
cash
|
|
3,250
|
893
|
|
Accounts
receivable
|
|
|
|
|
|
Trade (less allowance
for doubtful accounts of $1,787 and $3,730 at December 31, 2016 and
September 30, 2016, respectively)
|
|
23,146
|
17,642
|
|
|
Unbilled and
other
|
|
7,094
|
8,634
|
|
Inventories
|
|
20,853
|
23,223
|
|
Refundable income
taxes
|
|
-
|
260
|
|
Other
|
|
3,804
|
4,617
|
|
|
Total current
assets
|
|
81,785
|
82,924
|
|
|
|
|
|
|
Property, Plant and
Equipment - Net
|
|
15,290
|
15,960
|
Deferred Income Taxes
- Long Term
|
|
200
|
200
|
Other Assets - Long
Term
|
|
1,049
|
1,095
|
Investments
|
|
2,890
|
3,032
|
Intangible Assets -
Net
|
|
3,915
|
4,100
|
Goodwill
|
|
10,789
|
11,119
|
|
Total
Assets
|
|
$
115,918
|
$
118,430
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts
payable
|
|
$
14,986
|
$
15,397
|
|
Current maturities of
long-term debt
|
|
1,010
|
1,134
|
|
Accrued compensation
and related taxes
|
|
6,232
|
5,710
|
|
Accrued warranty
expense
|
|
879
|
795
|
|
Deferred
profit
|
|
3,812
|
4,709
|
|
Customer
deposits
|
|
6,920
|
7,055
|
|
Other accrued
liabilities
|
|
1,577
|
2,164
|
|
Income taxes
payable
|
|
960
|
1,100
|
|
|
Total current
liabilities
|
|
36,376
|
38,064
|
|
|
|
|
|
|
Long-term
Debt
|
|
9,105
|
9,097
|
Income Taxes Payable
- Long Term
|
|
6,050
|
5,930
|
|
|
Total
Liabilities
|
|
51,531
|
53,091
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Common stock; $0.01
par value; 100,000,000 shares authorized; shares issued and outstanding: 13,179,355 and
13,179,355 at December 31, 2016
and September 30, 2016, respectively
|
|
132
|
132
|
|
Additional paid-in
capital
|
|
111,952
|
111,631
|
|
Accumulated other
comprehensive loss
|
|
(9,721)
|
(8,876)
|
|
Retained
deficit
|
|
(35,883)
|
(35,830)
|
|
|
Total stockholders'
equity
|
|
66,480
|
67,057
|
|
Noncontrolling
interest
|
|
(2,093)
|
(1,718)
|
|
|
Total
equity
|
|
64,387
|
65,339
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
115,918
|
$
118,430
|
AMTECH SYSTEMS,
INC.
|
(NASDAQ:
ASYS)
|
February 9,
2017
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
(in
thousands)
|
|
|
|
|
Three Months
Ended
December 31,
|
|
|
|
2016
|
2015
|
Operating
Activities
|
|
|
|
Net loss
|
$
(332)
|
$
(4,448)
|
|
Adjustments to
reconcile net loss to net cash
used in operating activities:
|
|
|
|
|
Depreciation and
amortization
|
654
|
783
|
|
|
Write-down of
inventory
|
33
|
39
|
|
|
Capitalized
interest
|
190
|
-
|
|
|
Deferred income
taxes
|
31
|
9
|
|
|
Non-cash share based
compensation expense
|
319
|
342
|
|
|
Loss from equity
method investment
|
143
|
17
|
|
|
Reversal of allowance
for doubtful accounts
|
(1,178)
|
(158)
|
|
|
|
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Restricted
cash
|
(2,425)
|
(220)
|
|
|
Accounts
receivable
|
(3,600)
|
(309)
|
|
|
Inventories
|
1,621
|
1,412
|
|
|
Accrued income
taxes
|
239
|
212
|
|
|
Other
assets
|
725
|
(167)
|
|
|
Accounts
payable
|
78
|
(4,861)
|
|
|
Accrued liabilities
and customer deposits
|
584
|
(3,354)
|
|
|
Deferred
profit
|
(619)
|
(50)
|
|
Net cash used
in operating activities
|
(3,537)
|
(10,753)
|
|
|
|
|
|
Investing
Activities
|
|
|
|
Purchases of
property, plant and equipment
|
(86)
|
(108)
|
|
Proceeds from sale of
property, plant and equipment
|
1
|
-
|
|
Proceeds from partial
sale of subsidiary
|
-
|
7,012
|
|
Net cash (used in)
provided by investing activities
|
(85)
|
6,904
|
|
|
|
|
|
Financing
Activities
|
|
|
|
Proceeds from the
exercise of stock options
|
1
|
-
|
|
Payments on long-term
debt
|
(160)
|
(180)
|
|
Borrowings on
long-term debt
|
21
|
830
|
|
Net cash (used in)
provided by financing activities
|
(138)
|
650
|
|
|
|
|
|
Effect of Exchange
Rate Changes on Cash
|
(257)
|
(36)
|
|
|
|
|
|
Net Decrease in
Cash and Cash Equivalents
|
(4,017)
|
(3,235)
|
Cash and Cash
Equivalents, Beginning of Period
|
27,655
|
25,852
|
Cash and Cash
Equivalents, End of Period
|
$ 23,638
|
$ 22,617
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/amtech-reports-first-quarter-fiscal-2017-results-300405315.html
SOURCE Amtech Systems, Inc.