TEMPE, Ariz., Feb. 8, 2018
/PRNewswire/ -- Amtech Systems, Inc. (NASDAQ: ASYS), a global
manufacturer and supplier of production equipment and related
supplies for the solar, semiconductor and LED markets, today
reported results for its first quarter ended December 31,
2017.
First Quarter Fiscal 2018 Financial and Operational
Highlights:
- Net revenues of $73.6 million
(solar $49.2 million)
- Net income of $6.5 million
- Diluted earnings per share of $0.42
- Customer orders of $37.3 million
(solar $7.3 million)
- Quarter-end backlog of $65.9
million (solar $39.3
million)
- Book to bill ratio of 0.5:1 (0.1:1 solar)
- Unrestricted cash of $52.7
million
Mr. Fokko Pentinga, Chief
Executive Officer of Amtech, commented, "As anticipated, we had a
very good start to our fiscal 2018. In the December quarter
we had record revenues with an even higher record level of
shipments, along with solid profitability. All three of our
reporting segments, solar, semiconductor, and polishing, performed
well, with our semiconductor and polishing segments outperforming
our expectations. Our financial position is strong and we
continue to make strategic investments in our businesses and to
focus on operational excellence."
Net revenue for the first quarter of fiscal 2018 was
$73.6 million compared to
$54.7 million in the preceding
quarter and $29.1 million in the
first quarter of fiscal 2017. The sequential increase is due
primarily to the shipment of all of the equipment for Phase II of
the solar turnkey order and increased sales of our polishing
templates. The increase from the prior year quarter is due
primarily to shipments relating to Phase II of the solar turnkey
order, as well as increased shipments of our semiconductor
equipment and sales of our polishing templates.
Net income for the first quarter of fiscal 2018 was $6.5 million, or $0.42 per diluted share, compared to a net loss
of $0.1 million, or $0.00 per share for the first quarter of fiscal
2017 and net income of $7.3 million
or $0.51 per diluted share in the
preceding quarter.
Unrestricted cash and cash equivalents at December 31, 2017
were $52.7 million, compared to
$51.1 million at September 30,
2017.
At December 31, 2017, our total order backlog was
$65.9 million (solar $39.3 million), compared to total backlog of
$102.4 million (solar $81.4 million) at September 30, 2017.
Backlog includes deferred revenue and customer orders that are
expected to ship within the next 12 months.
Gross margin in the first quarter of fiscal 2018 was 28%,
compared to 36% in the preceding quarter and 29% in the first
quarter of fiscal 2017. Sequentially, gross margin decreased
primarily due to $2.1 million in
revenue deferrals in the first quarter of fiscal 2018, compared to
the recognition of $1.5 million of
previously deferred profit in the fourth quarter of fiscal
2017. Additionally, less utilization of previously reserved
inventory and sales of lower-margin products in our semiconductor
segment contributed to the sequential decrease in gross
margin. Compared to the prior year quarter, gross margin
decreased slightly on higher sales volumes due to a lower-margin
product mix and a deferral of profit in the first quarter of fiscal
2018, compared to recognition of previously deferred profit in the
first quarter of fiscal 2017.
Selling, general and administrative expense ("SG&A") in the
first quarter of fiscal 2018 were $10.6
million, compared to $9.8
million in the preceding quarter and $7.0 million in the first quarter of fiscal
2017. Sequentially, the SG&A increase was due primarily
to increased commissions and freight related to the higher
revenues, partially offset by lower employee-related expenses. The
increase in SG&A from the prior year quarter is due primarily
to higher commissions, freight, and other selling expenses.
For the three months ended December 31,
2016, SG&A expenses include the collection of previously
reserved accounts receivable of approximately $1.0 million which contributed to the
year-over-year increase.
Research, development and engineering (RD&E) expense was
$2.0 million in the first quarter of
fiscal 2018 compared to $1.8 million
in the preceding quarter and $1.6
million in the first quarter of fiscal 2017.
Income tax expense in the first quarter of fiscal 2018 was
$1.2 million compared to $0.5 million in the preceding quarter and
$0.1 million in the first quarter of
fiscal 2017.
Outlook
The company expects revenues for the quarter ending March 31, 2018 to be in the range of $26 to $29 million.
Gross margin for the quarter ending March
31, 2018 is expected to be in the mid 20 percent range, with
operating margin slightly negative.
The solar and semiconductor equipment industries can be cyclical
and inherently impacted by changes in market
demand. Additionally, operating results can be impacted by the
timing of orders, system shipments and the financial results of the
solar and semiconductor businesses. The results for the
second half of fiscal 2018 will be significantly influenced by the
timing of the Phase III order of the 1GW turnkey project. Operating
results could also be affected by the net impact of revenue
deferral on shipments, and recognition of revenue based on customer
acceptances, and progress on the start-up of the turnkey production
lines, 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
5:00 p.m. ET to discuss first quarter
fiscal 2018 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 15, 2018. To access the replay
please dial US toll free (877) 344-7529 and enter code 10116145.
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 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).
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, and plans and
objectives of Amtech and its management for future
operations. 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.
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, 2017, 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.
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 8,
2018
|
(Unaudited)
|
|
Condensed
Consolidated Statements of Operations
|
|
|
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
2017
|
|
2016
|
Revenues, net of
returns and allowances
|
$
|
73,611
|
|
|
$
|
29,135
|
|
Cost of
sales
|
53,274
|
|
|
20,692
|
|
Gross
profit
|
20,337
|
|
|
8,443
|
|
|
|
|
|
Selling, general and
administrative
|
10,580
|
|
|
6,996
|
|
Research, development
and engineering
|
1,991
|
|
|
1,627
|
|
Operating income
(loss)
|
7,766
|
|
|
(180)
|
|
|
|
|
|
Loss from equity
method investment
|
(26)
|
|
|
(143)
|
|
Interest and other
expense, net
|
(48)
|
|
|
81
|
|
Income (loss) before
income taxes
|
7,692
|
|
|
(242)
|
|
Income tax
provision
|
1,240
|
|
|
90
|
|
Net income
(loss)
|
6,452
|
|
|
(332)
|
|
|
|
|
|
Add: net loss
attributable to noncontrolling interest
|
—
|
|
|
279
|
|
Net income (loss)
attributable to Amtech Systems, Inc.
|
$
|
6,452
|
|
|
$
|
(53)
|
|
|
|
|
|
Income (Loss) Per
Share:
|
|
|
|
Basic income (loss)
per share attributable to Amtech shareholders
|
$
|
0.44
|
|
|
$
|
0.00
|
|
Weighted average
shares outstanding
|
14,781
|
|
|
13,179
|
|
Diluted income (loss)
per share attributable to Amtech shareholders
|
$
|
0.42
|
|
|
$
|
0.00
|
|
Weighted average
shares outstanding
|
15,298
|
|
|
13,179
|
|
AMTECH SYSTEMS,
INC.
|
|
(NASDAQ:
ASYS)
|
|
February 8,
2018
|
|
(unaudited)
|
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
(in thousands,
except share data)
|
|
|
|
|
|
|
December 31,
2017
|
|
September 30,
2017
|
Assets
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
52,696
|
|
|
$
|
51,121
|
|
Restricted
cash
|
|
9,913
|
|
|
24,640
|
|
Accounts
receivable
|
|
|
|
|
Trade (less allowance
for doubtful accounts of $1,473 and $866 at December 31, 2017, and
September 30, 2017, respectively)
|
|
24,365
|
|
|
22,519
|
|
Unbilled and
other
|
|
21,620
|
|
|
14,275
|
|
Inventories
|
|
22,762
|
|
|
30,210
|
|
Vendor
deposits
|
|
5,180
|
|
|
11,806
|
|
Other
|
|
2,310
|
|
|
2,542
|
|
Total current
assets
|
|
138,846
|
|
|
157,113
|
|
Property, Plant
and Equipment - Net
|
|
15,637
|
|
|
15,792
|
|
Intangible Assets
- Net
|
|
3,378
|
|
|
3,495
|
|
Goodwill -
Net
|
|
11,484
|
|
|
11,405
|
|
Investments
|
|
2,588
|
|
|
2,615
|
|
Deferred Income
Taxes - Long-Term
|
|
200
|
|
|
200
|
|
Other Assets -
Long-Term
|
|
980
|
|
|
1,003
|
|
Total
Assets
|
|
$
|
173,113
|
|
|
$
|
191,623
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts
payable
|
|
$
|
20,483
|
|
|
$
|
21,555
|
|
Accrued compensation
and related taxes
|
|
7,422
|
|
|
7,592
|
|
Accrued warranty
expense
|
|
1,401
|
|
|
1,254
|
|
Other accrued
liabilities
|
|
2,918
|
|
|
2,056
|
|
Customer
deposits
|
|
19,328
|
|
|
48,784
|
|
Current maturities of
long-term debt
|
|
365
|
|
|
361
|
|
Deferred
profit
|
|
5,632
|
|
|
4,081
|
|
Income taxes
payable
|
|
1,608
|
|
|
286
|
|
Total current
liabilities
|
|
59,157
|
|
|
85,969
|
|
Long-Term
Debt
|
|
8,225
|
|
|
8,134
|
|
Income Taxes
Payable - Long-Term
|
|
6,802
|
|
|
7,037
|
|
Total
Liabilities
|
|
74,184
|
|
|
101,140
|
|
Commitments and
Contingencies
|
|
|
|
|
Stockholders'
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: 14,876,430 and 14,710,591 at
December 31, 2017, and September 30, 2017, respectively
|
|
149
|
|
|
147
|
|
Additional paid-in
capital
|
|
127,015
|
|
|
125,564
|
|
Accumulated other
comprehensive loss
|
|
(7,988)
|
|
|
(8,529)
|
|
Retained
deficit
|
|
(20,247)
|
|
|
(26,699)
|
|
Total
equity
|
|
98,929
|
|
|
90,483
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
173,113
|
|
|
$
|
191,623
|
|
AMTECH SYSTEMS,
INC.
|
|
(NASDAQ:
ASYS)
|
|
February 8,
2018
|
|
(unaudited)
|
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
2017
|
|
2016
|
Operating
Activities
|
|
|
|
Net income
(loss)
|
$
|
6,452
|
|
|
$
(332)
|
|
Adjustments to
reconcile net loss to net
cash provided by (used in) operating
activities:
|
|
|
|
Depreciation and
amortization
|
471
|
|
|
654
|
|
Write-down of
inventory
|
41
|
|
|
33
|
|
Capitalized
interest
|
143
|
|
|
190
|
|
Deferred income
taxes
|
(7)
|
|
|
31
|
|
Non-cash share based
compensation expense
|
253
|
|
|
319
|
|
Loss from equity
method investment
|
26
|
|
|
143
|
|
Provision for
(reversal of) allowance for doubtful accounts, net
|
48
|
|
|
(1,178)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Restricted
cash
|
14,885
|
|
|
(2,425)
|
|
Accounts
receivable
|
(8,869)
|
|
|
(3,600)
|
|
Inventories
|
7,558
|
|
|
1,621
|
|
Accrued income
taxes
|
1,087
|
|
|
239
|
|
Vendor deposits and
other assets
|
6,974
|
|
|
725
|
|
Accounts
payable
|
(1,255)
|
|
|
78
|
|
Customer deposits and
accrued liabilities
|
(29,023)
|
|
|
584
|
|
Deferred
profit
|
1,479
|
|
|
(619)
|
|
Net cash provided by
(used in) operating activities
|
263
|
|
|
(3,537)
|
|
Investing
Activities
|
|
|
|
Purchases of
property, plant and equipment
|
(93)
|
|
|
(86)
|
|
Proceeds from sale of
property, plant and equipment
|
—
|
|
|
1
|
|
Net cash used in
investing activities
|
(93)
|
|
|
(85)
|
|
Financing
Activities
|
|
|
|
Proceeds from
exercise of stock options
|
1,199
|
|
|
1
|
|
Payments on long-term
debt
|
(89)
|
|
|
(160)
|
|
Borrowings on
long-term debt
|
—
|
|
|
21
|
|
Net cash provided by
(used in) financing activities
|
1,110
|
|
|
(138)
|
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
295
|
|
|
(257)
|
|
Net Increase
(Decrease) in Cash and Cash Equivalents
|
1,575
|
|
|
(4,017)
|
|
Cash and Cash
Equivalents, Beginning of Period
|
51,121
|
|
|
27,655
|
|
Cash and Cash
Equivalents, End of Period
|
$
|
52,696
|
|
|
$
23,638
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/amtech-reports-first-quarter-fiscal-2018-results-300596068.html
SOURCE Amtech Systems, Inc.