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Amtech Reports Second Quarter Fiscal 2016 Results
[May 05, 2016]

Amtech Reports Second Quarter Fiscal 2016 Results


TEMPE, Ariz., May 5, 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 second fiscal quarter ending March 31, 2016.

Second Quarter Fiscal 2016 Financial and Operational Highlights:

  • Customer orders of $45.0 million (solar $28.0 million)
  • Quarter-end backlog of $67.3 million (solar $51.3 million)
  • Net revenues of $22.5 million (solar $9.8 million)
  • Book to bill ratio of 2.1:1 (solar 3.0:1)
  • Gain on the sale of sales and service rights of $2.6 million (pre-tax)
  • Net loss of $1.5 million, or $0.11 per share
  • Unrestricted cash of $31.8 million

Mr. Fokko Pentinga, Chief Executive Officer of Amtech, commented, "We are pleased with our $45 million of total bookings in the second quarter, including $28 million of solar orders, which is the highest solar bookings since the March quarter of 2011. With those bookings, we now have a backlog of $67 million which is a 57 percent increase since December 31, 2015 and the highest in four years.  We are positioning for the next wave of growth in solar with expectations to continue to expand our market reach, develop current and new customer relationships, and continue to be recognized as a market leader for our distinguishable technology solutions.     

Pentinga continued, "New orders and backlog for our electronics and LED businesses reflect sequential and year-over-year improvements.  We look forward to continued improvement in semiconductor capex spending in the second half of calendar 2016 and the opportunity to more fully optimize our operating efficiency in a more robust marketplace."

Customer orders in the second quarter of fiscal 2016 were $45.0 million ($28.0 million solar), compared to $35.6 million ($23.0 million solar) in the preceding quarter and $30.9 million ($16.7 million solar) in the second quarter of fiscal 2015.

At March 31, 2016, the Company's total order backlog was $67.3 million (solar $51.3 million), compared to total backlog of $42.9 million (solar $31.3 million) at December 31, 2015. 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 2016 was $22.5 million compared to $22.1 million in the preceding quarter and $24.3 million in the second quarter of fiscal 2015. The decrease from the prior year quarter is due primarily to lower shipments caused by the cyclicality of the semiconductor industry and the polishing segment.

Gross margin in the second quarter of fiscal 2016 was 27%, compared to 27% in the preceding quarter and 28% in the second quarter of fiscal 2015. The slightly lower margin in Q2 2016 compared to a year ago resulted primarily from lower usage of previously reserved inventory in the solar segment and lower sales volumes in the polishing segment.

Selling, general and administrative (SG&A) expenses in the second quarter of fiscal 2016 were $7.4 million compared to $7.6 million in the preceding quarter and $8.1 million in the second quarter of fiscal 2015.  The decrease compared to a year ago results primarily from lower legal and consulting expenses related to activity that led to the Company's acquisition of BTU in January 2015, as well as lower commission expenses, partially offset by the inclusion of BTU for a full quarter in Q2 2016 compared to a partial quarter in Q2 2015.

Research, development and engineering (RD&E) expense was $2.2 million in the second quarter of fiscal 2016 compared to $2.3 million in the preceding quarter and $0.8 million in the second quarter of fiscal 2015.  The higher RD&E expense compared to a year ago is primarily due to lower grants earned resulting from the deconsolidation of Kingstone in fiscal 2015, and increases in spending resulting from inclusion of BTU and SoLayTec RD&E since acquisition, partially offset by lower spending due to the deconsolidation of Kingstone.

Depreciation and amortization in the second quarter of fiscal 2016 was $0.7 million, compared to $0.8 million in the preceding quarter and $0.9 million in the second quarter of fiscal 2015.

Income tax expense was $1.7 million for the three months ended March 31, 2016 compared to $0.3 million in the preceding quarter and $0.2 million in the second 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 second quarter of fiscal 2016 was $1.5 million, or $0.11 per share, compared to a net loss of $4.0 million or $0.31 per share in the preceding quarter and a net loss of $2.3 million, or $0.19 per share for the second quarter of fiscal 2015.

Unrestricted cash and cash equivalents at March 31, 2016 were $31.8 million, compared to $22.6 million at December 31, 2015.  The increase in cash and cash equivalents is primarily due to cash received from the sale of our exclusive sales and service rights for the Kingstone ion implanter, as well as customer deposits, partially offset by operating losses.

Outlook

The company expects revenues for the quarter ending June 30, 2016 to be in the range of $30 to $33 million. Gross margin for the quarter ending June 30, 2016 is expected to be in the mid 20s percent range, negatively impacted by product mix, with operating margin slightly negative.

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 second quarter fiscal 2016 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 16, 2016.  To access the replay please dial US toll free (877) 344-7529 and enter code 10084716. 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 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:





Amtech Systems, Inc.
Robert T. Hass
Interim Chief Financial Officer
(480) 967-5146

[email protected]

Christensen
Investor Relations
Patty Bruner
(480) 201-6075

[email protected]


 

AMTECH SYSTEMS, INC.

(NASDAQ: ASYS)

May 5, 2016

















Condensed Consolidated Statements of Operations

Unaudited

(in thousands, except per share data)










Three Months Ended March 31,


Six Months Ended March 31,


2016


2015


2016


2015









Revenues, net of returns and allowances

$    22,483


$    24,273


$   44,557


$     36,669

Cost of sales

16,482


17,384


32,601


26,352

Gross profit

6,001


6,889


11,956


10,317









Selling, general and administrative

7,448


8,075


15,044


14,459

Research, development and engineering

2,160


750


4,447


2,586

Operating loss

(3,607)


(1,936)


(7,535)


(6,728)

Gain on sale of other assets

2,576


-


2,576


-

Income from equity method investment

688


-


671


-

Interest expense and other income, net

33


(217)


(169)


(120)

Loss before income taxes

(310)


(2,153)


(4,457)


(6,848)









Income tax provision

1,670


170


1,970


350

Net loss

(1,980)


(2,323)


(6,427)


(7,198)









Add: net loss (income) attributable to noncontrolling interest

481


2


914


(317)

Net loss attributable to Amtech Systems, Inc.

$    (1,499)


$   (2,321)


$    (5,513)


$    (7,515)









Loss Per Share:








Basic loss per share attributable to Amtech shareholders

$      (0.11)


$     (0.19)


$      (0.42)


$      (0.69)

Weighted average shares outstanding

13,169


11,997


13,161


10,914









Diluted loss per share attributable to Amtech shareholders

$      (0.11)


$     (0.19)


$      (0.42)


$     (0.69)

Weighted average shares outstanding

13,169


11,997


13,161


10,914

 

AMTECH SYSTEMS, INC.

(NASDAQ: ASYS)

May 5, 2016























Condensed Consolidated Balance Sheets

(in thousands, except share data)

































March 31, 2016

September 30, 2015

Assets















(Unaudited)


Current Assets








Cash and cash equivalents  




$           31,818

$           25,852

Restricted cash





535

638

Accounts receivable 







Trade (less allowance for doubtful accounts of $3,537 and $5,009 at

16,641

14,488

March 31, 2016 and September 30, 2015, respectively)




Unbilled and other





6,089

8,494

Inventories






24,054

23,329

Deferred income taxes





2,050

2,050

Notes and other receivable





-

7,079

Other






3,888

3,772

Total current assets





85,075

85,702












Property, Plant and Equipment - Net




16,896

17,761

Deferred Income Taxes - Long Term




430

430

Other Assets - Long Term





1,167

3,356

Investments






3,404

2,733

Intangible Assets - Net





4,568

4,939

Goodwill 






11,188

10,535

Total Assets






$         122,728

$         125,456












Liabilities and Stockholders'  Equity






Current Liabilities








Accounts payable





$           15,021

$           15,646

Current maturities of long-term debt




747

919

Accrued compensation and related taxes



5,242

5,605

Accrued warranty expense  




859

793

Deferred profit






3,431

4,873

Customer deposits 





10,495

7,154

Other accrued liabilities





2,180

3,551

Income taxes payable 





2,400

830

Total current liabilities





40,375

39,371












Long-term Debt






9,351

8,448

Income Taxes Payable - Long-Term




5,960

4,990

Total liabilities





55,686

52,809












Stockholders' Equity







Common stock; $0.01 par value; 100,000,000 shares authorized; shares issued and outstanding: 13,173,197 and 13,150,469 at March 31, 2016 and  September 30, 2015, respectively





132

131

Additional paid-in capital





110,930

110,191

Accumulated other comprehensive loss



(8,611)

(8,666)

Retained deficit





(34,335)

(28,822)

Total stockholders' equity




68,116

72,834

Noncontrolling interest





(1,074)

(187)

Total equity






67,042

72,647

Total Liabilities and Stockholders' Equity



$         122,728

$         125,456

 

AMTECH SYSTEMS, INC.

(NASDAQ: ASYS)

May 5, 2016





















Condensed Consolidated Statements of Cash Flows




Unaudited








(in thousands)


























Six Months Ended March 31,









2016

2015

Operating Activities








Net loss






$      (6,427)

$      (7,198)

Adjustments to reconcile net loss to net





cash provided by (used in) operating activities:





Depreciation and amortization




1,529

1,641

Write-down of inventory




74

81

Deferred income taxes




(5)

901

Non-cash share based compensation expense 


708

568

Gain on sale of other assets




(2,576)

-

Income from equity method investment



(671)

-

Reversal of allowance for doubtful accounts



(122)

(281)

Changes in operating assets and liabilities:





Restricted cash





97

844

Accounts receivable





475

(1,406)

Inventories





(656)

(7,482)

Accrued income taxes





1,939

(922)

Other assets





(120)

(2,027)

Accounts payable





(707)

7,664

Accrued liabilities and customer deposits



1,515

5,269

Deferred profit





(1,440)

(643)

 Net cash used in operating activities




(6,387)

(2,991)











Investing Activities








Purchases of property, plant and equipment



(192)

(125)

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



11,704

8,470











Financing Activities








Proceeds from the exercise of stock options



30

55

Payments on long-term debt




(259)

(121)

Borrowings on long-term debt




830

335

Net cash provided by financing activities



601

269











Effect of Exchange Rate Changes on Cash




48

(508)











Net Increase in Cash and Cash Equivalents



5,966

5,240

Cash and Cash Equivalents, Beginning of Period



25,852

27,367

Cash and Cash Equivalents, End of Period




$      31,818

$      32,607

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/amtech-reports-second-quarter-fiscal-2016-results-300263995.html

SOURCE Amtech Systems, Inc.


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