TEMPE, Ariz., Aug. 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 third fiscal quarter ending June 30, 2017.
Third Quarter Fiscal 2017 Financial and Operational
Highlights:
- Net revenues of $47.8 million
(solar $29.0 million)
- Net income of $3.3 million
- Diluted earnings per share of $0.25
- Customer orders of $79.9 million
(solar $54.2 million)
- Quarter-end backlog of $125.7
million (solar $98.2
million)
- Book to bill ratio of 1.7:1 (1.9:1 solar)
- Unrestricted cash of $39.2
million
Mr. Fokko Pentinga, Chief
Executive Officer of Amtech, commented, "We are pleased to report
profitable growth with net revenue of $47.8 million, net income of $3.3 million, and EPS of $0.25, our best performance since our solar
business unit peaked in the third and fourth fiscal quarters of
2011. During the quarter our semiconductor segment revenue
and earnings improved as the semiconductor and electronics
industries are in a cycle of increased capital spending.
While all segments performed well in the quarter, we are seeing the
greatest improvement in the solar growth segment. Our fiscal
year-to-date orders were $183 million
(solar $117 million) with a backlog
at June 30, 2017 of $125.7 million, giving us good visibility for the
coming quarters."
Mr. Pentinga continued, "Our n-type bi-facial solar cell
technologies are driving our participation in what appears to be a
technology focused buying cycle in the solar industry. With
our ongoing investment in both n-type and PERC we have continuously
improved cell efficiency and production throughput with our
products and technology solutions."
At June 30, 2017, our total order backlog was $125.7 million (solar $98.2 million), compared to total backlog of
$87.4 million (solar $66.9 million) at March 31, 2017. 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 2017 was
$47.8 million compared to
$32.9 million in the preceding
quarter and $33.3 million in the
third quarter of fiscal 2016. The sequential increase and the
increase from the prior year quarter are due primarily to shipments
relating to the large turn-key order, as well as increased
shipments of our semiconductor equipment.
Gross margin in the third quarter of fiscal 2017 was 32%,
compared to 25% in the preceding quarter and 29% in the third
quarter of fiscal 2016. Sequentially, gross margin increased
primarily due to higher sales volumes, favorable product mix, and a
lower net deferral of profit. The higher gross margin compared to a
year ago is primarily due to higher sales volumes and improved
product mix, slightly offset by lower usage of previously reserved
inventory.
Selling, general and administrative (SG&A) expenses in the
third quarter of fiscal 2017 were $10.1
million compared to $8.3
million in the preceding quarter and $8.7 million in the third quarter of fiscal
2016. Sequentially, and compared to prior year, the increase
results primarily from severance, higher commissions and other
employee-related expenses.
Research, development and engineering (RD&E) expense was
$1.4 million in the third quarter of
fiscal 2017 compared to $1.5 million
in the preceding quarter and $1.6
million in the third quarter of fiscal 2016.
Depreciation and amortization in the third quarter of fiscal
2017 was $0.6 million, compared to
$0.6 million in the preceding quarter
and $0.7 million in the third quarter
of fiscal 2016.
Income tax expense in the third quarter of fiscal 2017 was
$1.0 million compared to $0.2 million in the preceding quarter and
$0.1 million in the third quarter of
fiscal 2016.
Net income for the third quarter of fiscal 2017 was $3.3 million, or $0.25 per diluted share, compared to a net loss
of $1.4 million or $0.11 per share in the preceding quarter and a
net loss of $1.2 million, or
$0.09 per share for the third quarter
of fiscal 2016.
Unrestricted cash and cash equivalents at June 30, 2017
were $39.2 million, compared to
$38.9 million at March 31,
2017.
Outlook
The company expects revenues for the quarter ending September 30, 2017 to be in the range of
$45 to $48 million. Gross margin for
the quarter ending September 30, 2017
is expected to be in the mid to high 20 percent range, with
positive operating margin, 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
5:00 p.m. ET to discuss third 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 August 16, 2017. To access the replay
please dial US toll free (877) 344-7529 and enter code 10110517.
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). 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, as amended, 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)
|
August 9,
2017
|
(Unaudited)
|
|
Condensed
Consolidated Statements of Operations
|
|
|
|
|
|
|
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June
30,
|
|
Nine Months Ended
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues, net of
returns and allowances
|
$
|
47,760
|
|
|
$
|
33,342
|
|
|
$
|
109,839
|
|
|
$
|
77,899
|
|
Cost of
sales
|
32,258
|
|
|
23,711
|
|
|
77,499
|
|
|
56,312
|
|
Gross
profit
|
15,502
|
|
|
9,631
|
|
|
32,340
|
|
|
21,587
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
10,108
|
|
|
8,665
|
|
|
25,366
|
|
|
23,709
|
|
Research, development
and engineering
|
1,423
|
|
|
1,568
|
|
|
4,586
|
|
|
6,015
|
|
Operating income
(loss)
|
3,971
|
|
|
(602)
|
|
|
2,388
|
|
|
(8,137)
|
|
|
|
|
|
|
|
|
|
Gain on sale of other
assets
|
—
|
|
|
—
|
|
|
—
|
|
|
2,576
|
|
Loss (income) from
equity method investment
|
(110)
|
|
|
(444)
|
|
|
(200)
|
|
|
227
|
|
Interest expense and
other income, net
|
(34)
|
|
|
(265)
|
|
|
(151)
|
|
|
(434)
|
|
Income (loss) before
income taxes
|
3,827
|
|
|
(1,311)
|
|
|
2,037
|
|
|
(5,768)
|
|
Income tax
provision
|
986
|
|
|
70
|
|
|
1,270
|
|
|
2,040
|
|
Net income
(loss)
|
2,841
|
|
|
(1,381)
|
|
|
767
|
|
|
(7,808)
|
|
|
|
|
|
|
|
|
|
Add: net loss
attributable to noncontrolling interest
|
446
|
|
|
172
|
|
|
1,045
|
|
|
1,086
|
|
Net income (loss)
attributable to Amtech Systems, Inc.
|
$
|
3,287
|
|
|
$
|
(1,209)
|
|
|
$
|
1,812
|
|
|
$
|
(6,722)
|
|
|
|
|
|
|
|
|
|
Income (Loss) Per
Share:
|
|
|
|
|
|
|
|
Basic income (loss)
per share attributable to Amtech shareholders
|
$
|
0.25
|
|
|
$
|
(0.09)
|
|
|
$
|
0.14
|
|
|
$
|
(0.51)
|
|
Weighted average
shares outstanding
|
13,242
|
|
|
13,173
|
|
|
13,203
|
|
|
13,165
|
|
Diluted income (loss)
per share attributable to Amtech shareholders
|
$
|
0.25
|
|
|
$
|
(0.09)
|
|
|
$
|
0.14
|
|
|
$
|
(0.51)
|
|
Weighted average
shares outstanding
|
13,398
|
|
|
13,173
|
|
|
13,288
|
|
|
13,165
|
|
AMTECH SYSTEMS,
INC.
|
(NASDAQ:
ASYS)
|
August 9,
2017
|
(Unaudited)
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
(in thousands,
except share data)
|
|
|
|
|
|
|
June 30,
2017
|
|
September 30,
2016
|
Assets
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
39,160
|
|
|
$
|
27,655
|
|
Restricted
cash
|
|
4,671
|
|
|
893
|
|
Accounts
receivable
|
|
|
|
|
Trade (less allowance
for doubtful accounts of $1,522 and $3,730 at June 30, 2017, and
September 30, 2016, respectively)
|
|
24,685
|
|
|
17,642
|
|
Unbilled and
other
|
|
12,157
|
|
|
8,634
|
|
Inventories
|
|
23,186
|
|
|
23,223
|
|
Refundable income
taxes
|
|
—
|
|
|
260
|
|
Vendor
deposits
|
|
7,626
|
|
|
1,962
|
|
Other
|
|
2,954
|
|
|
2,655
|
|
Total current
assets
|
|
114,439
|
|
|
82,924
|
|
Property, Plant
and Equipment - Net
|
|
15,080
|
|
|
15,960
|
|
Deferred Income
Taxes - Long-Term
|
|
200
|
|
|
200
|
|
Other Assets -
Long Term
|
|
1,026
|
|
|
1,095
|
|
Investments
|
|
2,831
|
|
|
3,032
|
|
Intangible Assets
- Net
|
|
3,643
|
|
|
4,100
|
|
Goodwill -
Net
|
|
11,220
|
|
|
11,119
|
|
Total
Assets
|
|
$
|
148,439
|
|
|
$
|
118,430
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts
payable
|
|
$
|
22,484
|
|
|
$
|
15,397
|
|
Current maturities of
long-term debt
|
|
817
|
|
|
1,134
|
|
Accrued compensation
and related taxes
|
|
6,450
|
|
|
5,710
|
|
Accrued warranty
expense
|
|
853
|
|
|
795
|
|
Deferred
profit
|
|
5,449
|
|
|
4,709
|
|
Customer
deposits
|
|
25,180
|
|
|
7,055
|
|
Other accrued
liabilities
|
|
1,863
|
|
|
2,164
|
|
Income taxes
payable
|
|
996
|
|
|
1,100
|
|
Total current
liabilities
|
|
64,092
|
|
|
38,064
|
|
Long-Term
Debt
|
|
9,732
|
|
|
9,097
|
|
Income Taxes
Payable - Long-Term
|
|
6,520
|
|
|
5,930
|
|
Total
liabilities
|
|
80,344
|
|
|
53,091
|
|
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: 13,328,656 and 13,179,355 at June
30, 2017, and September 30, 2016, respectively
|
|
133
|
|
|
132
|
|
Additional paid-in
capital
|
|
113,501
|
|
|
111,631
|
|
Accumulated other
comprehensive loss
|
|
(8,834)
|
|
|
(8,876)
|
|
Retained
deficit
|
|
(34,018)
|
|
|
(35,830)
|
|
Total stockholders'
equity
|
|
70,782
|
|
|
67,057
|
|
Noncontrolling
interest
|
|
(2,687)
|
|
|
(1,718)
|
|
Total
equity
|
|
68,095
|
|
|
65,339
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
148,439
|
|
|
$
|
118,430
|
|
AMTECH SYSTEMS,
INC.
|
(NASDAQ:
ASYS)
|
August 9,
2017
|
(Unaudited)
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
Nine Months Ended
June 30,
|
|
2017
|
|
2016
|
Operating
Activities
|
|
|
|
Net income
(loss)
|
$
|
767
|
|
|
(7,808)
|
|
Adjustments to
reconcile net loss to net cash
provided by (used in) operating activities:
|
|
|
|
Depreciation and
amortization
|
1,871
|
|
|
2,559
|
|
Write-down of
inventory
|
448
|
|
|
116
|
|
Capitalized
interest
|
307
|
|
|
—
|
|
Deferred income
taxes
|
(10)
|
|
|
6
|
|
Non-cash share based
compensation expense
|
978
|
|
|
1,059
|
|
Loss on sale of
property, plant and equipment
|
107
|
|
|
—
|
|
Gain on sale of other
assets
|
—
|
|
|
(2,576)
|
|
Loss (gain) from
equity method investment
|
200
|
|
|
(227)
|
|
Reversal of allowance
for doubtful accounts, net of provision
|
(898)
|
|
|
(143)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Restricted
cash
|
(3,576)
|
|
|
26
|
|
Accounts
receivable
|
(8,997)
|
|
|
(3,538)
|
|
Inventories
|
(245)
|
|
|
(4,794)
|
|
Accrued income
taxes
|
742
|
|
|
1,617
|
|
Vendor deposits and
other assets
|
(5,521)
|
|
|
(644)
|
|
Accounts
payable
|
6,616
|
|
|
2,842
|
|
Accrued liabilities
and customer deposits
|
17,526
|
|
|
2,695
|
|
Deferred
profit
|
626
|
|
|
(828)
|
|
Net cash provided by
(used in) operating activities
|
10,941
|
|
|
(9,638)
|
|
Investing
Activities
|
|
|
|
Purchases of
property, plant and equipment
|
(355)
|
|
|
(442)
|
|
Proceeds from sale of
property, plant and equipment
|
39
|
|
|
—
|
|
Proceeds from partial
sale of subsidiary
|
—
|
|
|
7,012
|
|
Proceeds from sale of
other assets
|
—
|
|
|
4,884
|
|
Net cash (used in)
provided by investing activities
|
(316)
|
|
|
11,454
|
|
Financing
Activities
|
|
|
|
Proceeds from
exercise of stock options
|
894
|
|
|
34
|
|
Payments on long-term
debt
|
(485)
|
|
|
(549)
|
|
Borrowings on
long-term debt
|
384
|
|
|
1,145
|
|
Net cash provided by
financing activities
|
793
|
|
|
630
|
|
Effect of Exchange
Rate Changes on Cash
|
87
|
|
|
(8)
|
|
Net Increase in
Cash and Cash Equivalents
|
11,505
|
|
|
2,438
|
|
Cash and Cash
Equivalents, Beginning of Period
|
27,655
|
|
|
25,852
|
|
Cash and Cash
Equivalents, End of Period
|
$
|
39,160
|
|
|
28,290
|
|
|
|
|
|
View original
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SOURCE Amtech Systems, Inc.