TEMPE, Ariz., Nov. 17, 2016 /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 fourth quarter and
fiscal year ended September 30,
2016.
Fourth Quarter Fiscal 2016 Operations and Financial
Highlights
- Customer orders of $27.7 million
(solar $11.8 million)
- Net revenue of $42.4 million
(solar $22.6 million)
- Quarter-end backlog of $48.6
million (solar $34.0
million)
- Non-cash charge for valuation allowance on deferred tax assets
of $0.4 million
- Provision for doubtful accounts receivable of $1.8 million
- Net loss of $0.3 million, or
$0.02 per share
Fiscal Year 2016 Financial Highlights
- Customer orders of $138.3 million
(solar $76.0 million)
- Net revenue of $120.3 million
(solar $60.9 million)
- Book to bill ratio of 1.1:1 (solar 1.2:1)
Mr. Fokko Pentinga, Chief
Executive Officer of Amtech, commented, "We are seeing a high level
of interest in our newly introduced next generation technology
solutions. There has been strong quoting activity throughout
this past year which is translating to bookings including those for
our new high throughput PECVD and ALD systems. We shipped our
first combined PECVD and ALD PERC
solution to a top-tier customer in November
2016. The market is showing interest in selective capacity
expansion needs, line upgrades, and high-efficiency technology
adaptation to ensure competitiveness and long-term profitable
growth. We are also pleased to report that our SEMI business
saw good volumes and margins in the fourth quarter."
"Over the course of the last few years we have been diligent in
our efforts to best align our global businesses with the rapidly
changing market environment. With measurable improvements
throughout our fiscal year 2016, our ongoing initiatives have
positioned us very well to leverage our many strengths as markets
improve."
Financial Results
Customer orders in the fourth quarter of fiscal 2016 were
$27.7 million ($11.8 million solar), compared to $30.0 million ($13.2
million solar) in the preceding quarter and $18.8 million ($5.3
million solar) in the fourth quarter of fiscal 2015.
For the year ended September 30, 2016
and 2015 customer orders were $138.3
million ($76.0 million solar)
and $109.9 million ($61.2 million solar), respectively.
At September 30, 2016, the
Company's order backlog was $48.6
million (solar $34.0 million),
compared to total backlog of $63.8
million (solar $45.3 million)
at June 30, 2016 and $34.6 million (solar $22.9
million) at September 30,
2015. Backlog includes deferred revenue and customer orders
that are expected to ship within the next 12 months.
Net revenue for the fourth quarter of fiscal 2016 was
$42.4 million compared to
$33.3 million in the preceding
quarter and $28.2 million in the
fourth quarter of fiscal 2015. The sequential and
year-over-year increases were due to higher shipments from our
solar, semiconductor and polishing segments. Gross margin in
the fourth quarter of fiscal 2016 was 29%, compared to 29% in the
previous quarter and 23% in the fourth quarter of fiscal 2015.
Sequentially, the gross margins were higher in our semiconductor
segment primarily due to favorable product mix but were offset by
lower gross margins in our solar segment primarily due to increased
revenue deferrals. The higher gross margin compared to a year ago
is primarily due to higher gross margins achieved in our
semiconductor segment due to favorable product mix.
Selling, general and administrative (SG&A) expenses in the
fourth quarter of fiscal 2016 were $10.3
million compared to $8.7
million in the preceding quarter and $9.1 million in the fourth quarter of fiscal
2015. The increase compared to the previous quarter was
primarily due to a provision for doubtful accounts receivable of
$1.8 million, partially offset by
lower selling expenses as a percentage of shipments and lower
commissionable sales. The increase compared to a year ago was due
to an increase in the provision for doubtful accounts receivable,
offset by lower legal fees and lower compensation expense.
Research, development and engineering (RD&E) expense was
$2.0 million in the fourth quarter of
fiscal 2016 compared to $1.6 million
in the preceding quarter and $3.0
million in the fourth quarter of fiscal 2015. The
higher RD&E expense compared to the previous quarter was due to
higher spending and slightly lower recognition of grant
revenue. The lower RD&E expense compared to a year ago
was due primarily to the deconsolidation of Kingstone in fiscal
2015.
Depreciation and amortization expense in the fourth quarter of
fiscal 2016 was $0.7 million, compared to $0.7
million in the preceding quarter and $0.9 million in the
fourth quarter of fiscal 2015.
Income tax expense was $1.1
million for the three months ended September 30, 2016 compared to less than
$0.1 million in the preceding quarter
and $1.3 million in the fourth
quarter of fiscal 2015. The increase in income tax expense in
the current quarter was primarily due to an increase in income
before taxes in the United States
and an increase in the valuation allowance. As of September 30, 2016, there was a valuation
allowance on all deferred tax assets except for a $0.2 million deferred tax asset that we believe
is more likely than not to be realized. This increase in the
valuation allowance accounted for approximately $0.4 million of tax expense.
Net loss for the fourth quarter of fiscal 2016 was $0.3 million, or $0.02 per share, compared to a net loss of
$1.2 million or $0.09 per share in the preceding quarter and net
income of $1.3 million, or
$0.10 per share for the fourth
quarter of fiscal 2015, which included a gain on partial
disposition of our investment in Kingstone of approximately
$7.8 million, net of tax.
Unrestricted cash and cash equivalents at September 30, 2016 were $27.7 million, compared to $28.3 million at June
30, 2016. The decrease in cash and cash equivalents
during the quarter was primarily due to cash used for capital
expenditures and debt service payments.
Outlook
The company expects revenues for the quarter ending December 31, 2016 to be in the range of
$25 to $27 million and gross margin
to be in the mid 20s percent range.
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 fourth quarter
and fiscal 2016 financial results. Those in the USA wishing to participate in the live call
should dial 1-844-868-9329. From Canada, dial 1-866-605-3852, and
internationally, dial 1-412-317-6703. 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 November 24, 2016. To access the replay
please dial US toll free 1-877-344-7529 and enter code 10094719.
Internationally, dial 1-412-317-0088 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 SystemsTM, Bruce
TechnologiesTM, PR HoffmanTM, R2D
AutomationTM, 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)
|
|
|
|
|
|
|
|
November 17,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Operations
|
|
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended
September 30,
|
|
Years Ended
September 30,
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Revenues, net of
returns and allowances
|
$
42,409
|
|
$
28,198
|
|
$
120,308
|
|
$
104,883
|
Cost of
sales
|
29,934
|
|
21,635
|
|
86,245
|
|
77,875
|
Gross
profit
|
12,475
|
|
6,563
|
|
34,063
|
|
27,008
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
10,259
|
|
8,516
|
|
33,967
|
|
33,028
|
Research, development
and engineering
|
1,989
|
|
3,024
|
|
8,004
|
|
6,918
|
Restructuring
charges
|
-
|
|
583
|
|
-
|
|
583
|
Operating income
(loss)
|
227
|
|
(5,560)
|
|
(7,908)
|
|
(13,521)
|
|
|
|
|
|
|
|
|
Gain on
deconsolidation of Kingstone
|
-
|
|
8,814
|
|
-
|
|
8,814
|
Gain on sale of other
assets
|
-
|
|
-
|
|
2,576
|
|
-
|
Income from equity
method investment
|
72
|
|
-
|
|
299
|
|
-
|
Interest and other
income (expense), net
|
16
|
|
35
|
|
(417)
|
|
(100)
|
Income (loss) before
income taxes
|
315
|
|
3,289
|
|
(5,450)
|
|
(4,807)
|
|
|
|
|
|
|
|
|
Income tax
provision
|
1,060
|
|
1,270
|
|
3,100
|
|
1,910
|
Net income
(loss)
|
(745)
|
|
2,019
|
|
(8,550)
|
|
(6,717)
|
|
|
|
|
|
|
|
|
Add: net (income)
loss attributable to noncontrolling interest
|
456
|
|
(670)
|
|
1,542
|
|
(1,054)
|
Net income (loss)
attributable to Amtech Systems, Inc.
|
$
(289)
|
|
$
1,349
|
|
$
(7,008)
|
|
$
(7,771)
|
|
|
|
|
|
|
|
|
Income (Loss) Per
Share:
|
|
|
|
|
|
|
|
Basic income (loss)
per share attributable to Amtech shareholders
|
$
(0.02)
|
|
$
0.10
|
|
$
(0.53)
|
|
$
(0.65)
|
Weighted average
shares outstanding
|
13,177
|
|
13,150
|
|
13,168
|
|
12,022
|
|
|
|
|
|
|
|
|
Diluted income (loss)
per share attributable to Amtech shareholders
|
$
(0.02)
|
|
$
0.10
|
|
$
(0.53)
|
|
$
(0.65)
|
Weighted average
shares outstanding
|
13,177
|
|
13,259
|
|
13,168
|
|
12,022
|
AMTECH SYSTEMS,
INC.
|
|
|
(NASDAQ:
ASYS)
|
|
|
November 17,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
(in thousands,
except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
September
30,
|
Assets
|
2016
|
2015
|
|
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
27,655
|
$
25,852
|
|
Restricted
cash
|
893
|
638
|
|
Accounts
receivable
|
|
|
|
|
Trade (less allowance
for doubtful accounts of $3,730 and $5,009 at September 30, 2016 and September 30, 2015,
respectively)
|
17,642
|
14,488
|
|
|
Unbilled and
other
|
8,634
|
8,494
|
|
Inventories
|
23,223
|
23,329
|
|
Deferred income
taxes
|
-
|
2,050
|
|
Refundable income
taxes
|
260
|
-
|
|
Notes and other
receivable
|
-
|
7,079
|
|
Other
|
4,617
|
3,772
|
|
|
Total current
assets
|
82,924
|
85,702
|
|
|
|
|
|
Property, Plant and
Equipment - Net
|
15,960
|
17,761
|
Deferred Income Taxes
- Long Term
|
200
|
430
|
Other Assets - Long
Term
|
1,095
|
3,356
|
Investments
|
3,032
|
2,733
|
Intangible Assets -
Net
|
4,100
|
4,939
|
Goodwill -
Net
|
11,119
|
10,535
|
|
Total
Assets
|
$
118,430
|
$
125,456
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
Current
Liabilities
|
|
|
|
Accounts
payable
|
$
15,397
|
$
15,646
|
|
Current maturities of
long-term debt
|
1,134
|
919
|
|
Accrued compensation
and related taxes
|
5,710
|
5,605
|
|
Accrued warranty
expense
|
795
|
793
|
|
Deferred
profit
|
4,709
|
4,873
|
|
Customer
deposits
|
7,055
|
7,154
|
|
Other accrued
liabilities
|
2,164
|
3,551
|
|
Income taxes
payable
|
1,100
|
830
|
|
|
Total current
liabilities
|
38,064
|
39,371
|
|
|
|
|
|
Long-term
Debt
|
9,097
|
8,448
|
Income Taxes Payable
- Long-Term
|
5,930
|
4,990
|
|
|
Total
Liabilities
|
53,091
|
52,809
|
Commitments and
Contingencies
|
|
|
Stockholders'
Equity
|
|
|
|
Common stock; $0.01
par value; 100,000,000 shares authorized; shares issued and outstanding: 13,179,355 and
13,150,469 at September 30, 2016
and September 30, 2015, respectively
|
132
|
131
|
|
Additional paid-in
capital
|
111,631
|
110,191
|
|
Accumulated other
comprehensive loss
|
(8,876)
|
(8,666)
|
|
Retained
deficit
|
(35,830)
|
(28,822)
|
|
|
Total Stockholders'
Equity
|
67,057
|
72,834
|
|
Noncontrolling
interest
|
(1,718)
|
(187)
|
|
|
Total
Equity
|
65,339
|
72,647
|
|
Total Liabilities
and Stockholders' Equity
|
$
118,430
|
$
125,456
|
AMTECH SYSTEMS,
INC.
|
|
|
(NASDAQ:
ASYS)
|
|
|
November 17,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Year Ended
September 30,
|
|
|
|
2016
|
2015
|
Operating
Activities
|
|
|
|
Net loss
|
$
(8,550)
|
$
(6,717)
|
|
Adjustments to
reconcile net loss to net cash
used in operating activities:
|
|
|
|
|
Depreciation and
amortization
|
2,974
|
3,357
|
|
|
Write-down of
inventory
|
84
|
138
|
|
|
Capitalized
interest
|
322
|
-
|
|
|
(Reversal of)
provision for allowance for doubtful accounts
|
1,698
|
(194)
|
|
|
Deferred income
taxes
|
2,281
|
454
|
|
|
Non-cash share based
compensation expense
|
1,390
|
1,162
|
|
|
Gain on
deconsolidation of subsidiary
|
-
|
(8,814)
|
|
|
Gain on sale of fixed
assets
|
(60)
|
-
|
|
|
Gain on sale of other
assets
|
(2,576)
|
-
|
|
|
Income from equity
method invesment
|
(299)
|
-
|
|
|
|
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Restricted
cash
|
(253)
|
(1,731)
|
|
|
Accounts
receivable
|
(4,998)
|
1,700
|
|
|
Inventories
|
491
|
(1,308)
|
|
|
Accrued income
taxes
|
351
|
(4,329)
|
|
|
Other
assets
|
(814)
|
2,119
|
|
|
Accounts
payable
|
(225)
|
939
|
|
|
Accrued liabilities
and customer deposits
|
(1,355)
|
4,647
|
|
|
Deferred
profit
|
(150)
|
(1,490)
|
|
Net cash used
in operating activities
|
(9,689)
|
(10,067)
|
|
|
|
|
|
Investing
Activities
|
|
|
|
Purchases of
property, plant and equipment
|
(978)
|
(610)
|
|
Investment in
acquisitions, net of cash
|
-
|
8,191
|
|
Proceeds from sale of
property, plant and equipment
|
255
|
-
|
|
Proceeds from partial
sale of subsidiary
|
7,012
|
700
|
|
Proceeds from the
sale of other assets
|
4,884
|
-
|
|
Net cash provided by
investing activities
|
11,173
|
8,281
|
|
|
|
|
|
Financing
Activities
|
|
|
|
Proceeds from
issuance of common stock, net
|
51
|
523
|
|
Payments on long-term
debt obligations
|
(739)
|
(482)
|
|
Borrowings on
long-term debt
|
1,145
|
734
|
|
Excess tax benefit of
stock options
|
-
|
30
|
|
Net cash provided by
financing activities
|
457
|
805
|
|
|
|
|
|
Effect of Exchange
Rate Changes on Cash
|
(138)
|
(534)
|
|
|
|
|
|
Net Increase
(Decrease) in Cash and Cash Equivalents
|
1,803
|
(1,515)
|
Cash and Cash
Equivalents, Beginning of Year
|
25,852
|
27,367
|
Cash and Cash
Equivalents, End of Year
|
$ 27,655
|
$ 25,852
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/amtech-reports-fourth-quarter-fiscal-2016-results-300365444.html
SOURCE Amtech Systems, Inc.