Amtech Reports Fourth Quarter and Year End Fiscal 2024 Results

About this update from Amtech Systems, Inc.

TEMPE, Ariz. --(BUSINESS WIRE)-- Amtech Systems, Inc. (" Amtech ") (NASDAQ: ASYS), a manufacturer of equipment and consumables for semiconductor fabrication and packaging, today reported results for its fourth quarter and fiscal year ended September 30, 2024 . Fourth Quarter Fiscal 2024 Financial and Operational Results: Net revenue of $24.1 million GAAP net loss of $0.5 million Non-GAAP net loss of $7.0 thousand (1) Adjusted EBITDA $0.8 million (1) Customer orders of $17.6 million Fiscal 2024 Financial and Operational Results: Net revenue of $101.2 million Cash of $11.1 million Cash provided by operations of $9.8 million Fully repaid $10.7 million on debt agreement GAAP net loss of $8.5 million Non-GAAP net income of $43.0 thousand (1) Adjusted EBITDA $4.0 million (1) Customer orders of $79.3 million Backlog of $25.3 million (1) See GAAP to non-GAAP and EBITDA and Adjusted EBITDA reconciliation in schedules following this release. “We are pleased to report that in the fourth quarter, our strategic focus on aligning our cost structure with prevailing market conditions enabled us to achieve our fourth consecutive quarter of positive adjusted EBITDA and operating cash flow. Additionally, our strengthened cash position allowed us to fully pay off our remaining debt during the quarter. While we continue to navigate a challenging market environment, we have added resources focused on expanding our product offerings and customer base in higher-margin segments, positioning us to drive future growth,” commented Mr. Bob Daigle , Chief Executive Officer of Amtech . GAAP and Non-GAAP Financial Results (in millions, except per share amounts) Q4 Q3 Q4 12 Months 12 Months FY 2024 FY 2024 FY 2023 2024 2023 Revenues, net $ 24.1 $ 26.7 $ 27.7 $ 101.2 $ 113.3 GAAP gross profit $ 9.8 $ 9.8 $ 2.8 $ 36.2 $ 35.6 GAAP gross margin 40.7 % 36.5 % 10.1 % 35.8 % 31.4 % Non-GAAP gross profit (1) $ 9.8 $ 9.8 $ 8.9 $ 37.5 $ 41.7 Non-GAAP gross margin (1) 40.7 % 36.5 % 32.2 % 37.1 % 36.8 % GAAP net (loss) income $ (0.5 ) $ 0.4 $ (12.0 ) $ (8.5 ) $ (12.6 ) GAAP net (loss) income per diluted share $ (0.04 ) $ 0.03 $ (0.85 ) $ (0.60 ) $ (0.89 ) Non-GAAP net (loss) income (1) $ (0.0 ) $ 1.1 $ (2.5 ) $ 0.0 $ (0.3 ) Non-GAAP net (loss) income per diluted share (1) $ (0.00 ) $ 0.08 $ (0.18 ) $ 0.00 $ (0.02 ) (1) See GAAP to non-GAAP reconciliation in schedules following this release. Net revenues decreased 10% sequentially and decreased 13% from the fourth quarter of fiscal 2023. The sequential decrease is primarily due to decreased sales of our diffusion furnaces, advanced packaging and wafer cleaning equipment, partially offset by increased reflow equipment, parts and services revenue. The decrease from prior year is primarily attributable to lower sales of our high temperature belt furnaces, partially offset by increased revenues from our advanced packaging and reflow equipment. In the fourth quarter of fiscal 2024 our GAAP gross margin increased by $7 million dollars compared to the same prior year period. This is driven by better margin profiles and cost save this year while the fourth quarter of 2023 had $4.6 million intangible asset impairment charge, and the $1.5 million write-down of inventory related to the polishing equipment line. On a sequential basis, GAAP gross margin in our Thermal Processing Solutions segment was positively affected by product mix attributed to increased revenues for parts and services as well as improved material costs. GAAP gross margin in our Semiconductor Fabrication Solutions segment slightly decreased on a sequential basis due primarily to a less favorable product mix of consumables and equipment. Selling, General & Administrative (“SG&A”) expenses increased by approximately $0.6 million on a sequential basis and decreased $2.3 million compared to the prior year period. The sequential increase is due primarily to increased consulting, audit and IT expenses. Compared to the same prior year period, the decrease is due primarily to the $0.5 million intangible asset impairment charge and lower labor and labor-related expenses as a result of our cost reduction initiatives, as well as lower shipping expenses on lower revenues. Research, Development and Engineering expenses increased $0.3 million sequentially and decreased $1.6 million compared to the same prior year period, with the sequential decrease due primarily to the timing of purchases related to specific projects in both segments, and the decrease from prior year attributable to development efforts in our Semiconductor Fabrication Solutions segment that did not recur. GAAP net loss for the fourth quarter of fiscal 2024 was $0.5 million , or 4 cents per share. This compares to GAAP net income of $0.4 million , or 3 cents per share, for the preceding quarter and GAAP net loss of $12.0 million , or 85 cents per share, for the fourth quarter of fiscal 2023. Non-GAAP net loss for the fourth quarter of fiscal 2024 was $7,000 , or 0 cents per share. This compares to non-GAAP net income of $1.1 million , or 8 cents per share, for the preceding quarter and non-GAAP net loss of $2.5 million , or 18 cents per share, for the fourth quarter of fiscal 2023. Unrestricted cash and cash equivalents at September 30, 2024 , were $11.1 million , compared to $13.1 million at September 30, 2023 . Debt payments during the three months ended September 30, 2024 were $4.0 million , including the previously reported full repayment of our term loan and revolving credit facility. Net cash as of September 30, 2024 was $10.8 million compared to $2.4 million as of September 30, 2023 . In discussing financial results for the three months and year ended September 30, 2024 and 2023 and the three months ended June 30, 2024 , in this press release, the Company refers to certain financial measures that are adjusted from the financial results prepared in accordance with United States generally accepted accounting principles ("GAAP"). All non-GAAP amounts exclude certain adjustments for stock compensation expense, severance expense, expenses related to the discontinued product line, gain on the sale of our Arizona headquarters, moving expenses, amortization of acquired intangible assets, acquisition expenses, and income tax benefit related to our acquisition of Entrepix, Inc. A tabular reconciliation of financial measures prepared in accordance with GAAP to the non-GAAP financial measures is included at the end of this press release. Outlook Operating results can be significantly impacted, positively or negatively, by the timing of orders, system shipments, logistical challenges, and the financial results of semiconductor manufacturers. Additionally, the semiconductor equipment industries can be cyclical and inherently impacted by changes in market demand. Actual results may differ materially in the weeks and months ahead. For the first fiscal quarter ending December 31, 2024 , we expect revenues in the range of $21 – 24 million with adjusted EBITDA nominally positive. Although the near-term outlook for revenue and earnings remains challenging, we remain confident that the future prospects are strong for both our consumables and equipment serving advanced mobility and advanced packaging applications. We took actions during the fiscal year, which will reduce Amtech's structural costs by approximately $7 million annually and better align product pricing with value. These steps should significantly improve results and enhance profitability through market cycles. A portion of Amtech's results is denominated in Renminbis, a Chinese currency. The outlook provided in this press release is based on an assumed exchange rate between the United States Dollar and the Renminbi. Changes in the value of the Renminbi in relation to the United States Dollar could cause actual results to differ from expectations. Conference Call Amtech Systems will host a conference call at 5:00 pm ET on Monday, December 9, 2024 to discuss our fiscal fourth quarter financial results. The call will be available to interested parties by dialing 1-800-717-1738. For international callers, please dial +1-646-307-1865. A live webcast of the conference call will be available in the Investor Relations section of Amtech’s website at: https://www.amtechsystems.com/investors/events . A replay of the webcast will be available in the Investor Relations section of the company’s website at http://www.amtechsystems.com/conference.htm shortly after the conclusion of the call and will remain available for approximately 30 calendar days. About Amtech Systems, Inc. Amtech Systems, Inc. is a leading, global manufacturer of thermal processing, wafer cleaning and chemical mechanical polishing (CMP) capital equipment and related consumables used in semiconductor, advanced mobility and renewable energy manufacturing applications. We sell process equipment and services used in the fabrication of semiconductor devices, such as silicon carbide (SiC), silicon power, electronic assemblies and modules to semiconductor device and module manufacturers worldwide, particularly in Asia , North America and Europe . Our strategic focus is on growth opportunities which leverage our strengths in thermal and substrate processing. Amtech's products are recognized under the leading brand names BTU International , Entrepix, Inc. , PR Hoffman™ and Intersurface Dynamics, Inc. 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, and the Private Securities Litigation Reform Act of 1995). 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, plans and objectives of Amtech and its management for future operations, efforts to improve operational efficiencies and effectiveness and profitably grow our revenue, and enhancements to our technologies and expansion of our product portfolio. In some cases, forward-looking statements can be identified by terminology such as "may," "plan," "anticipate," "seek," "will," "expect," "intend," "estimate," "believe," "continue," "predict," "potential," "project," "should," "would," "could", "likely," "future," "target," "forecast," "goal," "observe," and "strategy" or the negative of these terms or other comparable terminology used in this press release or by our management, which 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, 2023 , 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 in our subsequently filed Quarterly Reports on Form 10-Qs, 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. AMTECH SYSTEMS, INC. (NASDAQ: ASYS) (Unaudited) Summary Financial Information (in thousands, except percentages) Three Months Ended Years Ended September 30 , September 30 , 2024 June 30 , 2024 September 30 , 2023 2024 2023 Amtech Systems, Inc. Revenues, net $ 24,112 $ 26,749 $ 27,707 $ 101,214 $ 113,315 GAAP gross profit $ 9,803 $ 9,758 $ 2,794 $ 36,231 $ 35,552 Non-GAAP gross profit $ 9,803 $ 9,758 $ 8,926 $ 37,528 $ 41,684 GAAP gross margin 41 % 36 % 10 % 36 % 31 % Non-GAAP gross margin 41 % 36 % 32 % 37 % 37 % Operating income (loss) $ 26 $ 816 $ (11,690 ) $ (6,729 ) $ (14,970 ) New orders $ 17,587 $ 18,814 $ 18,185 $ 79,277 $ 103,897 Backlog $ 25,312 $ 31,837 $ 51,794 $ 25,312 $ 51,794 Thermal Processing Solutions Segment Revenues, net $ 16,155 $ 18,038 $ 18,820 $ 69,161 $ 77,595 GAAP gross profit $ 6,756 $ 6,313 $ 7,374 $ 24,269 $ 29,184 Non-GAAP gross profit $ 6,756 $ 6,313 $ 7,374 $ 24,269 $ 29,184 GAAP gross margin 42 % 35 % 39 % 35 % 38 % Non-GAAP gross margin 42 % 35 % 39 % 35 % 38 % Operating income $ 2,530 $ 1,690 $ 2,046 $ 6,196 $ 6,907 New orders $ 9,328 $ 10,801 $ 10,834 $ 49,318 $ 74,817 Backlog $ 20,845 $ 27,673 $ 45,233 $ 20,845 $ 45,233 Semiconductor Fabrication Solutions Segment Revenues, net $ 7,957 $ 8,711 $ 8,887 $ 32,053 $ 35,720 GAAP gross profit (loss) $ 3,047 $ 3,445 $ (4,580 ) $ 11,962 $ 6,368 Non-GAAP gross profit $ 3,047 $ 3,445 $ 1,552 $ 13,259 $ 12,500 GAAP gross margin 38 % 40 % (52 )% 37 % 18 % Non-GAAP gross margin 38 % 40 % 17 % 41 % 35 % Operating income (loss) $ 447 $ 1,621 $ (10,176 ) $ (4,875 ) $ (8,765 ) New orders $ 8,259 $ 8,013 $ 7,351 $ 29,959 $ 29,080 Backlog $ 4,467 $ 4,164 $ 6,561 $ 4,467 $ 6,561 AMTECH SYSTEMS, INC. (NASDAQ: ASYS) (Unaudited) Consolidated Statements of Operations (in thousands, except per share data) Three Months Ended September 30 , Years Ended September 30 , 2024 2023 2024 2023 Revenue, net $ 24,112 $ 27,707 $ 101,214 $ 113,315 Cost of sales 14,309 20,268 64,134 73,118 Intangible asset impairment — 4,645 849 4,645 Gross profit 9,803 2,794 36,231 35,552 Selling, general and administrative 8,786 11,078 33,814 42,002 Research, development and engineering 991 2,597 4,193 7,311 Gain on sale of fixed assets — — (2,197 ) — Goodwill impairment — — 6,370 — Intangible asset impairment — 544 430 544 Severance expense — 265 350 665 Operating income (loss) 26 (11,690 ) (6,729 ) (14,970 ) Interest income 22 10 57 366 Interest expense (59 ) (178 ) (557 ) (520 ) Foreign currency loss (340 ) (30 ) (345 ) (89 ) Other 52 12 63 31 Loss before income taxes (299 ) (11,876 ) (7,511 ) (15,182 ) Income tax provision (benefit) 237 139 975 (2,600 ) Net loss $ (536 ) $ (12,015 ) $ (8,486 ) $ (12,582 ) (Loss) Income Per Share: Net (loss) income per basic share $ (0.04 ) $ (0.85 ) $ (0.60 ) $ (0.89 ) Net (loss) income per diluted share $ (0.04 ) $ (0.85 ) $ (0.60 ) $ (0.89 ) Weighted average shares outstanding: Basic 14,239 14,166 14,208 14,065 Diluted 14,239 14,166 14,208 14,065 AMTECH SYSTEMS, INC. (NASDAQ: ASYS) (Unaudited) Consolidated Balance Sheets (in thousands, except share data) September 30 , 2024 September 30 , 2023 Current Assets Cash and cash equivalents $ 11,086 $ 13,133 Accounts receivable - Net 21,989 26,474 Inventories 26,867 34,845 Income taxes receivable 132 632 Other current assets 4,302 6,105 Total current assets 64,376 81,189 Property, Plant and Equipment - Net 11,647 9,695 Right-of-Use Assets - Net 16,596 11,217 Intangible Assets - Net 4,004 6,114 Goodwill 21,261 27,631 Deferred Income Taxes - Net 185 101 Other Assets 884 1,074 Total Assets $ 118,953 $ 137,021 Liabilities and Shareholders’ Equity Current Liabilities Accounts payable $ 5,356 $ 10,815 Accrued compensation and related taxes 2,057 3,481 Accrued warranty expense 602 965 Other accrued liabilities 477 1,551 Current portion of finance lease liabilities and long-term debt 101 2,265 Current portion of long-term operating lease liabilities 2,041 2,623 Contract liabilities 8,965 8,018 Total current liabilities 19,599 29,718 Finance Lease Liabilities and Long-Term Debt 189 8,422 Long-Term Operating Lease Liabilities 15,240 8,894 Income Taxes Payable 1,510 1,575 Other Long-Term Liabilities 57 47 Total Liabilities 36,595 48,656 Commitments and Contingencies Shareholders’ 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: 14,258,879 and 14,185,977 in 2024 and 2023, respectively 143 142 Additional paid-in capital 128,466 126,963 Accumulated other comprehensive loss (720 ) (1,695 ) Retained deficit (45,531 ) (37,045 ) Total Shareholders’ Equity 82,358 88,365 Total Liabilities and Shareholders’ Equity $ 118,953 $ 137,021 AMTECH SYSTEMS, INC. (NASDAQ: ASYS) (Unaudited) Consolidated Statements of Cash Flows (in thousands) Years Ended September 30 , 2024 2023 Operating Activities Net (loss) income $ (8,486 ) $ (12,582 ) Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: Depreciation and amortization 3,029 5,012 Write-down of inventory 2,813 2,620 Non-cash intangible asset impairment 7,649 5,189 Provision for allowance for doubtful accounts 18 14 Deferred income taxes (84 ) (2,513 ) Non-cash stock-based compensation expense 1,530 1,272 Gain on sale of fixed assets (2,197 ) — Other, net — 196 Changes in operating assets and liabilities: Accounts receivable 4,468 4,410 Inventories 5,135 (6,294 ) Contract and other assets 4,773 (529 ) Accounts payable (4,942 ) 1,459 Accrued income taxes 436 (2,897 ) Accrued and other liabilities (5,248 ) (1,895 ) Contract liabilities 948 (1,163 ) Net cash provided by (used in) operating activities 9,842 (7,701 ) Investing Activities Purchases of property, plant and equipment (4,878 ) (2,898 ) Acquisitions, net of cash and cash equivalents acquired — (34,938 ) Proceeds from sale of property, plant and equipment 2,700 6 Net cash (used in) provided by investing activities (2,178 ) (37,830 ) Financing Activities Proceeds from the exercise of stock options 85 1,235 Repurchase of common stock — — Payments on long-term debt (10,671 ) (1,497 ) Borrowings on long-term debt 64 12,000 Payment of payroll taxes on stock-based compensation through shares withheld (111 ) — Net cash (used in) provided by financing activities (10,633 ) 11,738 Effect of Exchange Rate Changes on Cash and Cash Equivalents 922 52 Net (Decrease) Increase in Cash and Cash Equivalents (2,047 ) (33,741 ) Cash and Cash Equivalents, Beginning of Year 13,133 46,874 Cash, Cash Equivalents and Restricted Cash, End of Year $ 11,086 $ 13,133 AMTECH SYSTEMS, INC. (NASDAQ: ASYS) (Unaudited) Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except per share data) Three Months Ended Years Ended September 30 , September 30, 2024 June 30, 2024 September 30 , 2023 2024 2023 Amtech Systems, Inc. Gross Profit: GAAP gross profit $ 9,803 $ 9,758 $ 2,794 $ 36,231 $ 35,552 Write-down of inventory related to polishing equipment - - 1,487 448 1,487 Intangible asset impairment - - 4,645 849 4,645 Non-GAAP gross profit $ 9,803 $ 9,758 $ 8,926 $ 37,528 $ 41,684 GAAP gross margin 41 % 36 % 10 % 36 % 31 % Non-GAAP gross margin 41 % 36 % 32 % 37 % 37 % Thermal Processing Solutions Segment Gross Profit: GAAP gross profit $ 6,756 $ 6,313 $ 7,374 $ 24,269 $ 29,184 Write-down of inventory related to polishing equipment - - - - - Intangible asset impairment - - - - - Non-GAAP gross profit $ 6,756 $ 6,313 $ 7,374 $ 24,269 $ 29,184 GAAP gross margin 42 % 35 % 39 % 35 % 38 % Non-GAAP gross margin 42 % 35 % 39 % 35 % 38 % Semiconductor Fabrication Solutions Segment Gross Profit (Loss): GAAP gross profit (loss) $ 3,047 $ 3,445 $ (4,580 ) $ 11,962 $ 6,368 Write-down of inventory related to polishing equipment - - 1,487 448 1,487 Intangible asset impairment - - 4,645 849 4,645 Non-GAAP gross profit $ 3,047 $ 3,445 $ 1,552 $ 13,259 $ 12,500 GAAP gross margin 38 % 40 % (52 )% 37 % 18 % Non-GAAP gross margin 38 % 40 % 17 % 41 % 35 % AMTECH SYSTEMS, INC. (NASDAQ: ASYS) (Unaudited) Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except per share data) Three Months Ended Years Ended September 30 , September 30, 2024 June 30, 2024 September 30 , 2023 2024 2023 Consolidated Net (Loss) Income: GAAP net (loss) income $ (536 ) $ 438 $ (12,015 ) $ (8,486 ) $ (12,582 ) Acquisition expenses - - - - 3,242 Write-down of inventory related to polishing equipment - - 1,487 448 1,487 Amortization of acquired intangible assets 154 154 985 749 2,955 Stock compensation expense 375 488 744 1,530 1,272 Gain on sale of fixed assets - - - (2,197 ) - Goodwill impairment - - - 6,370 - Intangible asset impairment - - 5,189 1,279 5,189 Severance expense - 40 265 350 665 Income tax benefit related to acquisition - - 856 - (2,490 ) Non-GAAP net (loss) income $ (7 ) $ 1,120 $ (2,489 ) $ 43 $ (262 ) Net (Loss) Income per Diluted Share: GAAP net (loss) income per diluted share $ (0.04 ) $ 0.03 $ (0.85 ) $ (0.60 ) $ (0.89 ) Acquisition expenses - - - - 0.23 Write-down of inventory related to polishing equipment - - 0.10 0.03 0.10 Amortization of acquired intangible assets 0.01 0.01 0.07 0.05 0.21 Stock compensation expense 0.03 0.03 0.05 0.11 0.09 Gain on sale of fixed assets - - - (0.15 ) - Goodwill impairment - - - 0.45 - Intangible asset impairment - - 0.37 0.09 0.37 Severance expense - 0.01 0.02 0.02 0.05 Income tax benefit related to acquisition - - 0.06 - (0.18 ) Non-GAAP net (loss) income per diluted share $ (0.00 ) $ 0.08 $ (0.18 ) $ 0.00 $ (0.02 ) AMTECH SYSTEMS, INC. (NASDAQ: ASYS) (Unaudited) Reconciliation of Net Loss to EBITDA and Adjusted EBITDA (in thousands, except per share data) Three Months Ended September 30, 2024 Year Ended September 30, 2024 Amtech Systems, Inc. EBITDA: GAAP net loss $ (536 ) $ (8,486 ) Interest income (22 ) (57 ) Interest expense 59 557 Income tax provision 237 975 Depreciation and amortization expense 719 3,029 EBITDA 457 (3,982 ) Gain on sale of fixed assets - (2,197 ) Building move expense - 231 Write-down of inventory related to polishing equipment - 448 Stock compensation expense 375 1,530 Goodwill impairment - 6,370 Intangible asset impairment - 1,279 Severance expense - 350 Adjusted EBITDA $ 832 $ 4,029 View source version on businesswire.com : https://www.businesswire.com/news/home/20241209011706/en/ Amtech Systems, Inc. Wade M. Jenke Vice President and Chief Financial Officer [email protected] Sapphire Investor Relations, LLC Erica Mannion and Mike Funari (617) 542-6180 [email protected] Source: Amtech Systems, Inc.

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