TEMPE, Ariz., May 10, 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 second fiscal quarter
ending March 31, 2017.
Second Quarter Fiscal 2017 Financial and Operational
Highlights:
- Customer orders of $68.2 million
(solar $46.9 million)
- Quarter-end backlog of $87.4
million (solar $66.9
million)
- Net revenues of $32.9 million
(solar $16.6 million)
- Book to bill ratio of 2.0:1 (2.7:1 solar)
- Net loss of $1.4 million, or
$0.11 per share
- Unrestricted cash of $38.9
million
Mr. Fokko Pentinga, Chief
Executive Officer of Amtech, commented, "Our second quarter
financial results show that our three segments, solar, semi, and
polishing, all contributed to the 46% increase in revenue and the
significantly improved operating margin compared to one year
ago."
Mr. Pentinga continued, "We are pleased with our $68 million of total bookings in the second
quarter, including $47 million of
solar orders, which is the highest solar bookings since the second
quarter of 2011. With those bookings, our March 31, 2017 backlog is $87 million, a 67 percent increase since
December 31, 2016 and the highest in
six years. As announced on April
25, 2017, we received a follow-on order for the second phase
of a multi-phase 1GW project, in addition to the order for the
first phase announced in January 2017. The Company's total
order backlog as of April 25, 2017
was approximately $125 million. We
expect financial results for the second half of this fiscal year
and first half of fiscal year 2018 to benefit from this activity
including the initial and follow on orders received this calendar
year for our bi-facial N-type technology which includes our
distinguishable high throughput PECVD and diffusion
systems."
At March 31, 2017, the Company's
total order backlog was $87.4 million
(solar $66.9 million), compared to
total backlog of $51.5 million (solar
$35.8 million) at December 31, 2016. Backlog includes deferred
revenue and customer orders that are expected to ship within the
next 12 months.
Net revenue for the second quarter of fiscal 2017 was
$32.9 million compared to
$ 29.1 million in the preceding
quarter and $22.5 million in the
second quarter of fiscal 2016. The sequential increase and the
increase from the prior year quarter is due primarily to increased
demand for our solar PECVD and ALD tools, as well as our
semiconductor equipment.
Gross margin in the second quarter of fiscal 2017 was 25%,
compared to 29% in the preceding quarter and 27% in the second
quarter of fiscal 2016. Sequentially and compared to prior year,
the gross margins were lower in our solar segment primarily due to
a net deferral of profit compared to a net recognition of
previously deferred profit, but were partially offset by higher
gross margins in our semiconductor segment due to favorable product
mix. Gross margins in our semiconductor segment were also
higher in the second quarter of 2017 compared to prior year due
higher sales volumes and higher capacity utilization.
Selling, general and administrative (SG&A) expenses in the
second quarter of fiscal 2017 were $8.3
million compared to $7.0
million in the preceding quarter and $7.4 million in the second quarter of fiscal
2016. Sequentially, the increase results primarily from the
collection in Q1 2017 of approximately $1.0
million of previously reserved accounts receivable.
Compared to the same quarter in fiscal 2016, the increase results
primarily from higher selling expenses related to higher
revenues.
Research, development and engineering (RD&E) expense was
$1.5 million in the second quarter of
fiscal 2017 compared to $1.6 million
in the preceding quarter and $2.2
million in the second quarter of fiscal 2016.
Depreciation and amortization in the second quarter of fiscal
2017 was $0.6 million, compared to
$0.7 million in the preceding quarter
and $0.7 million in the second
quarter of fiscal 2016.
Income tax expense in the second quarter of fiscal 2017 was
$0.2 million compared to $0.1 million in the preceding quarter and
$1.7 million in the second quarter of
fiscal 2016. Income tax expense in Q2 2016 is primarily
related to tax on the $2.6 million
pre-tax gain on the sale of the exclusive sales and service rights
for the Kingstone ion implanter.
The net loss for the second quarter of fiscal 2017 was
$1.4 million, or $0.11 per share, compared to a net loss of
$53,000 or $0.00 per share in the preceding quarter and a
net loss of $1.5 million, or
$0.11 per share for the second
quarter of fiscal 2016. The second quarter of 2017 did not
benefit from any items comparable to the gain on the sale of the
exclusive sales and service rights for the Kingstone ion implanter
in the same quarter last year.
Unrestricted cash and cash equivalents at March 31, 2017 were $38.9
million, compared to $23.6
million at December 31, 2016.
The increase in cash and cash equivalents is primarily due to
customer deposits received from the turnkey order announced on
January 24, 2017, and good collection
on receivables for both Solar and Semi, partially offset by cash
used to begin work on the turnkey order.
Outlook
Revenue in the second half of fiscal 2017 is expected to be much
higher than in the first half of this fiscal year 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 due to
the shipment of the equipment for the large turnkey order announced
in January 2017 ("Phase I").
Even so, a meaningful portion of the revenue and profit from Phase
I will be deferred until the installation and acceptance, which is
expected in fiscal 2018. The large follow-on turnkey order
announced in April 2017 ("Phase II")
is not included in the backlog as of March
31, 2017 and is expected to ship in the first half of fiscal
2018.
The company expects revenues for the quarter ending June 30, 2017 to be in the range of $39 to $42 million. Gross margin for the quarter
ending June 30, 2017 is expected to
be in the low to mid 20s percent range, with operating margin
slightly negative, both influenced by product mix and revenue
deferrals.
Operating results could be impacted by the timing of system
shipments, particularly the first shipment of equipment for the
turnkey order, 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 second 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 May 17, 2017. To access the replay please
dial US toll free (877) 344-7529 and enter code 10104917.
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)
|
May 10,
2017
|
(Unaudited)
|
|
Condensed
Consolidated Statements of Operations
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Six Months Ended
March 31,
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Revenues, net of
returns and allowances
|
$
32,944
|
|
$
22,483
|
|
$
62,079
|
|
$
44,557
|
Cost of
sales
|
24,549
|
|
16,482
|
|
45,241
|
|
32,601
|
Gross
profit
|
8,395
|
|
6,001
|
|
16,838
|
|
11,956
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
8,260
|
|
7,448
|
|
15,258
|
|
15,044
|
Research, development
and engineering
|
1,535
|
|
2,160
|
|
3,163
|
|
4,447
|
Operating
loss
|
(1,400)
|
|
(3,607)
|
|
(1,583)
|
|
(7,535)
|
|
|
|
|
|
|
|
|
Gain on sale of other
assets
|
-
|
|
2,576
|
|
-
|
|
2,576
|
Income (loss) from
equity method investment
|
52
|
|
688
|
|
(91)
|
|
671
|
Interest expense and
other income, net
|
(197)
|
|
33
|
|
(116)
|
|
(169)
|
Loss before income
taxes
|
(1,545)
|
|
(310)
|
|
(1,790)
|
|
(4,457)
|
|
|
|
|
|
|
|
|
Income tax
provision
|
194
|
|
1,670
|
|
284
|
|
1,970
|
Net
loss
|
(1,739)
|
|
(1,980)
|
|
(2,074)
|
|
(6,427)
|
|
|
|
|
|
|
|
|
Add: net loss
attributable to noncontrolling interest
|
319
|
|
481
|
|
599
|
|
914
|
Net loss
attributable to Amtech Systems, Inc.
|
$
(1,420)
|
|
$
(1,499)
|
|
$
(1,475)
|
|
$
(5,513)
|
|
|
|
|
|
|
|
|
Loss Per
Share:
|
|
|
|
|
|
|
|
Basic loss per share
attributable to Amtech shareholders
|
$
(0.11)
|
|
$
(0.11)
|
|
$
(0.11)
|
|
$
(0.42)
|
Weighted average
shares outstanding
|
13,188
|
|
13,169
|
|
13,184
|
|
13,161
|
|
|
|
|
|
|
|
|
Diluted loss per
share attributable to Amtech shareholders
|
$
(0.11)
|
|
$
(0.11)
|
|
$
(0.11)
|
|
$
(0.42)
|
Weighted average
shares outstanding
|
13,188
|
|
13,169
|
|
13,184
|
|
13,161
|
AMTECH SYSTEMS,
INC.
|
(NASDAQ:
ASYS)
|
May 10,
2017
|
|
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
September
30,
|
Assets
|
2017
|
2016
|
|
|
|
(Unaudited)
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
38,860
|
$
27,655
|
|
Restricted
cash
|
2,565
|
893
|
|
Accounts
receivable
|
|
|
|
|
Trade (less allowance
for doubtful accounts of $1,164 and $3,730 at March 31, 2017 and
September 30, 2016 , respectively)
|
19,484
|
17,642
|
|
|
Unbilled and
other
|
9,430
|
8,634
|
|
Inventories
|
20,778
|
23,223
|
|
Refundable income
taxes
|
-
|
260
|
|
Vendor
deposits
|
7,970
|
1,962
|
|
Other
|
2,138
|
2,655
|
|
|
Total current
assets
|
101,225
|
82,924
|
|
|
|
|
|
Property, Plant and
Equipment - Net
|
15,014
|
15,960
|
Deferred Income Taxes
- Long Term
|
200
|
200
|
Other Assets - Long
Term
|
1,050
|
1,095
|
Investments
|
2,942
|
3,032
|
Intangible Assets -
Net
|
3,740
|
4,100
|
Goodwill
|
10,867
|
11,119
|
|
Total
Assets
|
$
135,038
|
$
118,430
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
Current
Liabilities
|
(Unaudited)
|
|
|
Accounts
payable
|
$
16,850
|
$
15,397
|
|
Current maturities of
long-term debt
|
860
|
1,134
|
|
Accrued compensation
and related taxes
|
5,819
|
5,710
|
|
Accrued warranty
expense
|
885
|
795
|
|
Deferred
profit
|
5,009
|
4,709
|
|
Customer
deposits
|
24,214
|
7,055
|
|
Other accrued
liabilities
|
1,815
|
2,164
|
|
Income taxes
payable
|
1,170
|
1,100
|
|
|
Total current
liabilities
|
56,622
|
38,064
|
|
|
|
|
|
Long-term
Debt
|
9,285
|
9,097
|
Income Taxes
Payable - Long-term
|
5,770
|
5,930
|
|
|
Total
liabilities
|
71,677
|
53,091
|
|
|
|
|
|
|
Preferred stock;
100,000,000 shares authorized; none issued
|
-
|
-
|
|
Common stock; $0.01
par value; 100,000,000 shares authorized; shares issued and
outstanding: 13,200,510 and 13,179,355 at March 31, 2017 and
September 30, 2016, respectively
|
132
|
132
|
|
Additional paid-in
capital
|
112,350
|
111,631
|
|
Accumulated other
comprehensive loss
|
(9,430)
|
(8,876)
|
|
Retained
deficit
|
(37,305)
|
(35,830)
|
|
|
Total stockholders'
equity
|
65,747
|
67,057
|
|
Noncontrolling
interest
|
(2,386)
|
(1,718)
|
|
|
Total
equity
|
63,361
|
65,339
|
|
Total Liabilities
and Stockholders' Equity
|
$
135,038
|
$
118,430
|
AMTECH SYSTEMS,
INC.
|
(NASDAQ:
ASYS)
|
May 10,
2017
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
(in
thousands)
|
|
|
|
|
|
|
|
|
Six Months
Ended
March 31,
|
|
|
|
2017
|
2016
|
Operating
Activities
|
|
|
|
Net loss
|
$
(2,074)
|
$
(6,427)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
1,255
|
1,529
|
|
|
Write-down of
inventory
|
51
|
74
|
|
|
Capitalized
interest
|
204
|
-
|
|
|
Deferred income
taxes
|
24
|
(5)
|
|
|
Non-cash share based
compensation expense
|
624
|
708
|
|
|
Loss on sale of fixed
assets
|
9
|
-
|
|
|
Gain on sale of other
assets
|
-
|
(2,576)
|
|
|
Loss (gain) from
equity method investment
|
91
|
(671)
|
|
|
Reversal of allowance
for doubtful accounts, net of provision
|
(1,217)
|
(122)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Restricted
cash
|
(1,703)
|
97
|
|
|
Accounts
receivable
|
(2,002)
|
475
|
|
|
Inventories
|
1,840
|
(656)
|
|
|
Accrued income
taxes
|
169
|
1,939
|
|
|
Vendor deposits and
other assets
|
(5,557)
|
(120)
|
|
|
Accounts
payable
|
1,823
|
(707)
|
|
|
Accrued liabilities
and customer deposits
|
17,531
|
1,515
|
|
|
Deferred
profit
|
520
|
(1,440)
|
|
Net cash
provided by (used in) operating activities
|
11,588
|
(6,387)
|
Investing
Activities
|
|
|
|
Purchases of
property, plant and equipment
|
(210)
|
(192)
|
|
Proceeds from sale of
property, plant and equipment
|
34
|
-
|
|
Proceeds from partial
sale of subsidiary
|
-
|
7,012
|
|
Proceeds from the
sale of other assets
|
-
|
4,884
|
|
Net cash (used in)
provided by investing activities
|
(176)
|
11,704
|
Financing
Activities
|
|
|
|
Proceeds from the
exercise of stock options
|
94
|
30
|
|
Payments on long-term
debt
|
(319)
|
(259)
|
|
Borrowings on
long-term debt
|
137
|
830
|
|
Net cash (used in)
provided by financing activities
|
(88)
|
601
|
Effect of Exchange
Rate Changes on Cash
|
(119)
|
48
|
Net Increase in
Cash and Cash Equivalents
|
11,205
|
5,966
|
Cash and Cash
Equivalents, Beginning of Period
|
27,655
|
25,852
|
Cash and Cash
Equivalents, End of Period
|
$ 38,860
|
$ 31,818
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/amtech-reports-second-quarter-fiscal-2017-results-300455566.html
SOURCE Amtech Systems, Inc.