TEMPE, Ariz., Aug. 4, 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 third fiscal quarter ended
June 30, 2016.
Third Quarter Fiscal 2016 Financial Highlights
- Customer orders of $30.0 million
(solar $13.2 million)
- Net revenue of $33.3 million
(solar $19 million)
- Quarter-end backlog of $63.8
million (solar $45.3
million)
- Net loss of $1.2 million, or
$0.09 per share
Nine Months Ended June 30, 2016
Financial Highlights
- Customer orders of $110.7 million
(solar $64.2 million)
- Shipments of $77 million (solar
$37.7 million)
- Book to bill ratio of 1.4:1 (solar 1.7:1)
- Net revenue of $77.9 million
(solar $38.3 million)
Mr. Fokko Pentinga, Chief
Executive Officer of Amtech, commented, "During the quarter we made
significant progress in expanding our served available market with
the successful introduction of our next generation PECVD and ALD
systems, including a successful showing at the Shanghai New
Energy Conference (SNEC), the largest solar exhibition in the
world. In addition to our large installed base for diffusion,
our combined installed base and backlog now also includes 2
Gigawatts of PECVD systems and several hundred Megawatts of
ALD PERC systems. We have
compelling technology solutions for both current and next
generation solar cell designs, including PERC and N-type. We
are recognized as a market leader for our technology solutions and
look to capitalize on the opportunities within this expanding
global market for solar while driving profitable growth over the
long term."
Financial Results
Customer orders in the third quarter of fiscal 2016 were
$30.0 million ($13.2 million solar), compared to $45 million ($28
million solar) in the preceding quarter and $30.2 million ($15.2
million solar) in the third quarter of fiscal 2015.
For the nine months ended June 30,
2016 and 2015 customer orders were $110.7 million ($64.2
million solar) and $91.1
million ($55.9 million solar),
respectively.
At June 30, 2016, the Company's
total order backlog was $63.8 million
(solar $45.3 million), compared to
total backlog of $67.3 million (solar
$51.3 million) at March 31, 2016. Backlog includes deferred revenue
and customer orders that are expected to ship within the next 12
months.
Net revenue for the third quarter of fiscal 2016 was
$33.3 million compared to
$22.5 million in the preceding
quarter and $40.0 million in the
third quarter of fiscal 2015. The increase compared to the
previous quarter is primarily due to increased shipments from our
solar and semiconductor segments. The decrease from the prior year
quarter is due primarily to lower shipments and a higher deferral
of revenue from the solar segment in which demand can vary
significantly from quarter-to-quarter.
Gross margin in the third quarter of fiscal 2016 was 29%,
compared to 27% in the preceding quarter and 25% in the third
quarter of fiscal 2015. The higher gross margin compared to the
previous quarter is primarily the result of higher volumes at our
solar and semiconductor segments. 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
third quarter of fiscal 2016 were $8.7
million compared to $7.4
million in the preceding quarter and $10.1 million in the third quarter of fiscal
2015. The increase compared to the previous quarter is due to
increased commissions and shipping expenses resulting from higher
shipments. The decrease compared to a year ago is due to
lower commission and shipping expense resulting from lower
shipments.
Research, development and engineering (RD&E) expense was
$1.6 million in the third quarter of
fiscal 2016 compared to $2.2 million
in the preceding quarter and $1.3
million in the third quarter of fiscal 2015. The lower
RD&E expense compared to the previous quarter is due to lower
spending and slightly higher recognition of grant revenue.
The higher RD&E expense compared to a year ago is due primarily
to the deconsolidation of Kingstone in fiscal 2015.
Depreciation and amortization in the third quarter of fiscal
2016 was $0.7 million, compared to
$0.7 million in the preceding quarter
and $0.8 million in the third quarter
of fiscal 2015.
Income tax expense was less than $0.1
million for the three months ended June 30, 2016 compared to $1.7 million in the preceding quarter and
$0.3 million in the third quarter of
fiscal 2015. 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 third quarter of fiscal 2016 was
$1.2 million, or $0.09 per share, compared to a net loss of
$1.5 million or $0.11 per share in the preceding quarter and a
net loss of $1.6 million, or
$0.12 per share for the third quarter
of fiscal 2015.
Unrestricted cash and cash equivalents at June 30, 2016 were $28.3
million, compared to $31.8
million at March 31,
2016. The decrease in cash and cash equivalents during the
quarter was primarily due to cash used to fund working capital to
support the expected higher revenue in the fourth quarter.
Outlook
The company expects revenues for the quarter ending September 30, 2016 to be in the range of
$35 to $38 million. Gross margin for
the quarter ending September 30,
2016, is expected to be in the mid to high 20s percent
range, with improved operating margin.
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 third quarter
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 August 11, 2016. To access the replay
please dial US toll free 1-877-344-7529 and enter code 10089670.
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, 2015, 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:
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Amtech Systems,
Inc.
Robert T. Hass
Interim 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)
|
|
|
|
|
|
|
|
August 4,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Operations
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Nine Months Ended
June 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Revenues, net of
returns and allowances
|
$33,342
|
|
$40,016
|
|
$77,899
|
|
$76,685
|
Cost of
sales
|
23,711
|
|
29,888
|
|
56,312
|
|
56,240
|
Gross
profit
|
9,631
|
|
10,128
|
|
21,587
|
|
20,445
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
8,665
|
|
10,054
|
|
23,709
|
|
24,513
|
Research, development
and engineering
|
1,568
|
|
1,308
|
|
6,015
|
|
3,894
|
Operating
loss
|
(602)
|
|
(1,234)
|
|
(8,137)
|
|
(7,962)
|
Gain on sale of other
assets
|
-
|
|
-
|
|
2,576
|
|
-
|
Income (loss) from
equity method investment
|
(444)
|
|
-
|
|
227
|
|
-
|
Interest expense and
other income, net
|
(265)
|
|
(15)
|
|
(434)
|
|
(135)
|
Loss before income
taxes
|
(1,311)
|
|
(1,249)
|
|
(5,768)
|
|
(8,097)
|
|
|
|
|
|
|
|
|
Income tax
provision
|
70
|
|
290
|
|
2,040
|
|
640
|
Net
loss
|
(1,381)
|
|
(1,539)
|
|
(7,808)
|
|
(8,737)
|
|
|
|
|
|
|
|
|
Add: net loss
(income) attributable to noncontrolling interest
|
172
|
|
(65)
|
|
1,086
|
|
(382)
|
Net loss
attributable to Amtech Systems, Inc.
|
$ (1,209)
|
|
$ (1,604)
|
|
$ (6,722)
|
|
$ (9,119)
|
|
|
|
|
|
|
|
|
Loss Per
Share:
|
|
|
|
|
|
|
|
Basic loss per share
attributable to Amtech shareholders
|
$
(0.09)
|
|
$
(0.12)
|
|
$
(0.51)
|
|
$
(0.78)
|
Weighted average
shares outstanding
|
13,173
|
|
13,103
|
|
13,165
|
|
11,644
|
|
|
|
|
|
|
|
|
Diluted loss per
share attributable to Amtech shareholders
|
$
(0.09)
|
|
$
(0.12)
|
|
$
(0.51)
|
|
$
(0.78)
|
Weighted average
shares outstanding
|
13,173
|
|
13,103
|
|
13,165
|
|
11,644
|
AMTECH SYSTEMS,
INC.
|
(NASDAQ:
ASYS)
|
|
|
|
|
August 4,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
(in thousands,
except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
September
30,
|
Assets
|
|
|
2016
|
2015
|
|
|
|
|
|
(Unaudited)
|
|
Current
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
28,290
|
$
25,852
|
|
Restricted
cash
|
|
|
606
|
638
|
|
Accounts
receivable
|
|
|
|
|
|
|
Trade (less allowance
for doubtful accounts of $3,477 and $5,009 at June 30, 2016 and September 30, 2015,
respectively)
|
|
|
18,344
|
14,488
|
|
|
Unbilled and
other
|
|
|
8,215
|
8,494
|
|
Inventories
|
|
|
28,389
|
23,329
|
|
Deferred income
taxes
|
|
|
2,050
|
2,050
|
|
Notes and other
receivable
|
|
|
-
|
7,079
|
|
Other
|
|
|
4,397
|
3,772
|
|
|
Total current
assets
|
|
|
90,291
|
85,702
|
|
|
|
|
|
|
|
Property, Plant and
Equipment - Net
|
|
|
15,998
|
17,761
|
Deferred Income Taxes
- Long Term
|
|
|
430
|
430
|
Other Assets - Long
Term
|
|
|
1,128
|
3,356
|
Investments
|
|
|
2,960
|
2,733
|
Intangible Assets -
Net
|
|
|
4,284
|
4,939
|
Goodwill
|
|
|
11,068
|
10,535
|
|
Total
Assets
|
|
|
$
126,159
|
$
125,456
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
Accounts
payable
|
|
|
$
18,411
|
$
15,646
|
|
Current maturities of
long-term debt
|
|
|
723
|
919
|
|
Accrued compensation
and related taxes
|
|
|
5,187
|
5,605
|
|
Accrued warranty
expense
|
|
|
745
|
793
|
|
Deferred
profit
|
|
|
3,983
|
4,873
|
|
Customer
deposits
|
|
|
11,660
|
7,154
|
|
Other accrued
liabilities
|
|
|
2,070
|
3,551
|
|
Income taxes
payable
|
|
|
2,066
|
830
|
|
|
Total current
liabilities
|
|
|
44,845
|
39,371
|
|
|
|
|
|
|
|
Long-term
Debt
|
|
|
9,626
|
8,448
|
Income Taxes Payable
- Long-Term
|
|
|
5,970
|
4,990
|
|
|
Total
liabilities
|
|
|
60,441
|
52,809
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
Common stock; $0.01
par value; 100,000,000 shares authorized; shares issued and outstanding: 13,173,855 and
13,150,469 at June 30, 2016
and September 30, 2015, respectively
|
|
|
132
|
131
|
|
Additional paid-in
capital
|
|
|
111,285
|
110,191
|
|
Accumulated other
comprehensive loss
|
|
|
(8,883)
|
(8,666)
|
|
Retained
deficit
|
|
|
(35,544)
|
(28,822)
|
|
|
Total stockholders'
equity
|
|
|
66,990
|
72,834
|
|
Noncontrolling
interest
|
|
|
(1,272)
|
(187)
|
|
|
Total
equity
|
|
|
65,718
|
72,647
|
|
Total Liabilities
and Stockholders' Equity
|
|
|
$
126,159
|
$
125,456
|
AMTECH SYSTEMS,
INC.
|
|
|
|
(NASDAQ:
ASYS)
|
|
|
|
August 4,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
Unaudited
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
June 30,
|
|
|
|
|
2016
|
2015
|
Operating
Activities
|
|
|
|
|
Net loss
|
|
$
(7,808)
|
$
(8,737)
|
|
Adjustments to
reconcile net loss to net cash
provided by (used in) operating activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
2,559
|
2,488
|
|
|
Write-down of
inventory
|
|
116
|
31
|
|
|
Deferred income
taxes
|
|
6
|
914
|
|
|
Non-cash share based
compensation expense
|
|
1,059
|
864
|
|
|
Gain on sale of other
assets
|
|
(2,576)
|
-
|
|
|
Income from equity
method investment
|
|
(227)
|
-
|
|
|
Reversal of allowance
for doubtful accounts
|
|
(143)
|
(300)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Restricted
cash
|
|
26
|
888
|
|
|
Accounts
receivable
|
|
(3,538)
|
(4,193)
|
|
|
Inventories
|
|
(4,794)
|
(3,460)
|
|
|
Accrued income
taxes
|
|
1,617
|
(5,561)
|
|
|
Other
assets
|
|
(644)
|
639
|
|
|
Accounts
payable
|
|
2,842
|
4,514
|
|
|
Accrued liabilities
and customer deposits
|
|
2,695
|
695
|
|
|
Deferred
profit
|
|
(828)
|
(1,156)
|
|
Net cash used
in operating activities
|
|
(9,638)
|
(12,374)
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(442)
|
(511)
|
|
Acquisitions, net of
cash acquired
|
|
-
|
8,595
|
|
Proceeds from partial
sale of subsidiary
|
|
7,012
|
-
|
|
Proceeds from sale of
other assets
|
|
4,884
|
-
|
|
Net cash provided by
investing activities
|
|
11,454
|
8,084
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
Proceeds from the
exercise of stock options
|
|
34
|
521
|
|
Payments on long-term
debt
|
|
(549)
|
(311)
|
|
Borrowings on
long-term debt
|
|
1,145
|
557
|
|
Excess tax benefit of
stock options
|
|
-
|
30
|
|
Net cash provided by
financing activities
|
|
630
|
797
|
|
|
|
|
|
|
Effect of Exchange
Rate Changes on Cash
|
|
(8)
|
(159)
|
|
|
|
|
|
|
Net Increase
(Decrease) in Cash and Cash Equivalents
|
|
2,438
|
(3,652)
|
Cash and Cash
Equivalents, Beginning of Period
|
|
25,852
|
27,367
|
Cash and Cash
Equivalents, End of Period
|
|
$
28,290
|
$
23,715
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/amtech-reports-third-quarter-fiscal-2016-results-300309561.html
SOURCE Amtech Systems, Inc.