TEMPE, Ariz., Aug. 6, 2015 /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, 2015.
Third Quarter Fiscal 2015 Operational and Financial
Highlights
- Received field acceptance of PECVD systems from a large
Japanese solar customer
- Shipped an expanded portfolio of solar equipment, including
PECVD and HD Diffusion
- Received repeat solar order for production ALD (atomic layer
deposition) tool for PERC
- Customer orders of $30.2 million
(solar $13.0 million)
- Shipments of $39.0 million (solar
$21.9 million)
- Net revenue of $40.0 million
(solar $22.9 million)
- Quarter-end backlog of $46.9
million (solar $32.4
million)
- Net loss of $1.6 million, or
$0.12 per share
Nine Months Ended June 30, 2015
Financial Highlights
- Customer orders of $91.1 million
(solar $49.9 million)
- Shipments of $76.9 million (solar
$36.8 million)
- Book to bill ratio of 1.2:1 (solar 1.4:1)
- Net revenue of $76.7 million
(solar $37.5 million)
Mr. Fokko Pentinga, Chief
Executive Officer of Amtech, commented, "During the quarter we
shipped our highest level of solar equipment in the last three
years, which included a diverse mix of our standard diffusion, HD
diffusion, and PECVD solar equipment to our expanded customer base.
We also received a repeat order for our production-ready ALD
equipment from a top tier Chinese cell and module manufacturer for
their PERC project. In June and July we received field
acceptance of our PECVD systems shipped to a large Japanese solar
customer, further validating the production capabilities and value
of this tool. Our ongoing strategy of expanding the company's solar
products through investment in both technology development and the
acquisition of new capabilities has substantially increased our
served available market, supporting the full range of high
efficiency technologies, including PERC and N-type. While
there is a current lull in equipment orders, the fundamentals of
the solar market continue to improve. Global demand for solar
increases each year and, while capital spending is highly selective
today, investments are being made in next generation, higher
efficiency cell and module solutions. We are well positioned to
strongly compete in the solar equipment marketplace. There
are few companies in the world that can provide the equipment and
technology solutions that Amtech can provide."
Pentinga continued, "Integration of BTU continues on pace with
our plan. Current softness in the semiconductor and
electronics markets has dampened revenue and operating results, but
cost reduction plans continue as expected, including additional
restructuring in the month of July. Also in July we announced
the signing of an agreement to restructure our solar ion implant
investment which will bring cash into Amtech and new capital into
Kingstone Semiconductor to further develop the ion implant
products. We will continue to participate in the solar ion
implant business with world-wide, non-exclusive, selling rights and
minority interest in Kingstone. The transaction is subject to
customary closing conditions and regulatory approvals in both
Shanghai and Hong Kong."
Financial Results
Customer orders in the third quarter of fiscal 2015 were
$30.2 million ($13.0 million solar), compared to $30.9 million ($15.8
million solar) in the preceding quarter and $17.9 million ($12.3
million solar) in the third quarter of fiscal 2014.
At June 30, 2015, the Company's
total order backlog was $46.9 million
compared to total backlog of $56.0
million at March 31,
2015. Total backlog at June 30,
2015, includes $32.4 million
in solar orders and deferred revenue compared to solar backlog of
$41.4 million at March 31, 2015. 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 2015 was
$40.0 million, an increase of 65%
compared to $24.3 million in the
preceding quarter, and an increase of 335% compared to $9.2 million in the third quarter of fiscal 2014.
The increase is due primarily to higher solar revenues and the
inclusion of BTU revenues since January
30, 2015.
Gross margin in the third quarter of fiscal 2015 was 25%,
compared to 28% in the previous quarter and 18% in the third
quarter of fiscal 2014. The lower margins sequentially resulted
primarily from lower capacity utilization from our semiconductor
business in the most recent quarter. Compared to the same quarter
in fiscal 2014, gross margins improved primarily as a result of
higher volumes in our solar business and was supplemented by the
inclusion of BTU in the fiscal 2015 results.
Selling, general and administrative (SG&A) expenses in the
third quarter of fiscal 2015 were $10.1
million compared to $8.1
million in the preceding quarter and $4.1 million in the third quarter of fiscal 2014.
Sequentially, the increase results primarily from inclusion
of BTU's SG&A for a full quarter. Year-over-year, the
increase results primarily from inclusion of BTU's SG&A since
January 30, 2015, and higher selling
expenses related to higher revenues. SG&A expenses include
$0.3 million and $0.2 million of stock-based compensation expense
in the third quarter of fiscal 2015 and fiscal 2014,
respectively.
Research, development and engineering (RD&E) expense
was $1.3 million in the third quarter
of fiscal 2015 compared to $0.7
million in the second quarter of fiscal 2015 and
$1.4 million in the third quarter of
fiscal 2014. The sequential increase in RD&E expense is
primarily due to lower recognition of government grant funding
during the third fiscal quarter compared to the second fiscal
quarter. Compared to the same quarter in fiscal 2014,
RD&E expense decreased due to higher recognition of government
grant funding offset by increased spending due to the inclusion of
RD&E expense of BTU and SoLayTec.
Depreciation and amortization in the third quarter of fiscal
2015 was $847,000, compared to
$937,000 in the preceding quarter and
$591,000 in the third quarter of
fiscal 2014. The sequential decrease is due to certain intangible
assets becoming fully amortized. The increase compared to the
same quarter in fiscal 2014 is primarily due to the acquisitions of
BTU and SoLayTec.
Income tax expense in the third quarter of fiscal 2015 was
$290,000 compared to $170,000 in the preceding quarter and
$1.3 million in the third quarter of
fiscal 2014. A provision was required due to the effect of book/tax
differences and valuation allowances on net operating losses in
certain tax jurisdictions in which the company operates.
The net loss for the third quarter of fiscal 2015 was
$1.6 million, or $0.12 per share, compared to a net loss of
$2.3 million or $0.19 per share in the preceding quarter and a
net loss for the third quarter of fiscal 2014 of $5.3 million, or $0.53 per share.
Total unrestricted cash and cash equivalents at June 30, 2015 were $23.7
million, compared to $32.6
million at March 31, 2015.
The decrease in cash is due primarily to tax payments of
$4.8 million and investment in new
products and operating losses during the quarter.
Outlook
The company expects revenues for the quarter ending September 30, 2015 to be in the range of
$26 to $28 million. Gross margin for
the quarter ending September 30,
2015, is expected to be in the mid to high 20s percent
range, with operating margin negative due primarily to higher
R&D expense resulting from lower government grant
recognition.
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.
Operating results could also be significantly impacted by the
timing of recognition of government grant revenue related to
research and development projects in China and The
Netherlands.
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 2015 financial results. Those in the USA wishing to participate in the live call
should dial (877) 317-6789. From Canada, dial (866)-605-3852, and
internationally, dial (412) 317-6789. 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 14, 2015. To access the replay
please dial US toll free (877) 344-7529 and enter code 10070241.
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, ion implanters, 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, Kingstone
Semiconductor, 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, 2014, 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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|
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Amtech Systems,
Inc.
Bradley C. Anderson
Chief Financial Officer
(480) 967-5146
|
Christensen
Investor Relations
Patty Bruner
(480) 201-6075
|
|
|
irelations@Amtechsystems.com
|
pbruner@christensenir.com
|
AMTECH SYSTEMS,
INC.
|
|
|
|
|
|
|
|
(NASDAQ:
ASYS)
|
|
|
|
|
|
|
|
August 6,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Operations
|
|
|
Unaudited
|
|
|
|
|
|
|
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Nine Months Ended
June 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
Revenues, net of
returns and allowances
|
$40,016
|
|
$ 9,190
|
|
$76,685
|
|
$36,678
|
Cost of
sales
|
29,888
|
|
7,559
|
|
56,240
|
|
27,615
|
Gross
profit
|
10,128
|
|
1,631
|
|
20,445
|
|
9,063
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
10,054
|
|
4,103
|
|
24,513
|
|
13,504
|
Research, development
and engineering
|
1,308
|
|
1,399
|
|
3,894
|
|
4,443
|
Operating
loss
|
(1,234)
|
|
(3,871)
|
|
(7,962)
|
|
(8,884)
|
|
|
|
|
|
|
|
|
Interest expense and
other income, net
|
(15)
|
|
43
|
|
(135)
|
|
130
|
Loss before income
taxes
|
(1,249)
|
|
(3,828)
|
|
(8,097)
|
|
(8,754)
|
|
|
|
|
|
|
|
|
Income tax
provision
|
290
|
|
1,325
|
|
640
|
|
1,885
|
Net
loss
|
(1,539)
|
|
(5,153)
|
|
(8,737)
|
|
(10,639)
|
|
|
|
|
|
|
|
|
Add: net loss
(income) attributable to noncontrolling interest
|
(65)
|
|
(104)
|
|
(382)
|
|
837
|
Net loss
attributable to Amtech Systems, Inc.
|
$ (1,604)
|
|
$(5,257)
|
|
$ (9,119)
|
|
$ (9,802)
|
|
|
|
|
|
|
|
|
Loss Per
Share:
|
|
|
|
|
|
|
|
Basic loss per share
attributable to Amtech shareholders
|
$ (0.12)
|
|
$ (0.53)
|
|
$ (0.78)
|
|
$ (1.01)
|
Weighted average
shares outstanding
|
13,103
|
|
9,843
|
|
11,644
|
|
9,694
|
|
|
|
|
|
|
|
|
Diluted loss per
share attributable to Amtech shareholders
|
$ (0.12)
|
|
$ (0.53)
|
|
$ (0.78)
|
|
$ (1.01)
|
Weighted average
shares outstanding
|
13,103
|
|
9,843
|
|
11,644
|
|
9,694
|
AMTECH SYSTEMS,
INC.
|
|
|
|
(NASDAQ:
ASYS)
|
|
|
|
August 6,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
September
30,
|
Assets
|
|
|
|
|
|
2015
|
2014
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
23,715
|
$
27,367
|
|
Restricted
cash
|
1,574
|
2,380
|
|
Accounts
receivable
|
|
|
|
|
Trade (less allowance
for doubtful accounts of $3,440 and $2,846 at
|
19,559
|
8,896
|
|
|
June 30,
2015 and September 30, 2014, respectively)
|
|
|
|
|
Unbilled and
other
|
10,162
|
6,880
|
|
Inventories
|
29,436
|
16,760
|
|
Deferred income
taxes
|
1,650
|
1,060
|
|
Refundable income
taxes
|
300
|
|
|
Other
|
3,967
|
2,082
|
|
|
Total current
assets
|
90,363
|
65,425
|
|
|
|
|
|
|
|
|
|
|
|
Property, Plant and
Equipment - Net
|
20,042
|
9,752
|
Deferred Income Taxes
- Long Term
|
120
|
1,300
|
Intangible Assets -
Net
|
5,187
|
2,678
|
Goodwill
|
15,043
|
8,323
|
Other Assets - Long
Term
|
3,300
|
2,426
|
|
Total
Assets
|
$
134,055
|
$
89,904
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
Current
Liabilities
|
|
|
|
Accounts
payable
|
$
19,853
|
$
6,003
|
|
Current maturities of
long-term debt
|
692
|
-
|
|
Accrued compensation
and related taxes
|
6,361
|
4,269
|
|
Accrued warranty
expense
|
1,023
|
628
|
|
Deferred
profit
|
5,120
|
6,908
|
|
Customer
deposits
|
10,192
|
4,992
|
|
Other accrued
liabilities
|
5,465
|
5,346
|
|
Income taxes
payable
|
-
|
4,990
|
|
|
Total current
liabilities
|
48,706
|
33,136
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
Debt
|
8,619
|
-
|
Income Taxes Payable
- Long-Term
|
4,890
|
3,180
|
Deferred Income Taxes
- Long-Term
|
250
|
-
|
|
|
Total
liabilities
|
62,465
|
36,316
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
Common stock; $0.01
par value; 100,000,000 shares authorized;
|
|
|
|
|
shares issued and
outstanding: 13,150,222 and 9,848,253
|
|
|
|
|
at June 30, 2015
and September 30, 2014, respectively
|
132
|
98
|
|
Additional paid-in
capital
|
109,892
|
81,884
|
|
Accumulated other
comprehensive loss
|
(8,733)
|
(5,790)
|
|
Retained
deficit
|
(30,171)
|
(21,051)
|
|
|
Total stockholders'
equity
|
71,120
|
55,141
|
|
Noncontrolling
interest
|
470
|
(1,553)
|
|
|
Total
equity
|
71,590
|
53,588
|
|
Total Liabilities
and Stockholders' Equity
|
$
134,055
|
$
89,904
|
AMTECH SYSTEMS,
INC.
|
|
|
(NASDAQ:
ASYS)
|
|
|
August 6,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
Unaudited
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
June 30,
|
|
|
|
|
|
|
|
|
2015
|
2014
|
Operating
Activities
|
|
|
|
Net loss
|
$ (8,737)
|
$ (10,639)
|
|
Adjustments to
reconcile net loss to net
|
|
|
|
cash provided by
(used in) operating activities:
|
|
|
|
|
Depreciation and
amortization
|
2,488
|
1,796
|
|
|
Write-down of
inventory
|
31
|
199
|
|
|
Deferred income
taxes
|
914
|
705
|
|
|
Non-cash share based
compensation expense
|
864
|
603
|
|
|
Provision for
(reversal of) allowance for doubtful accounts
|
(300)
|
1,309
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Restricted
cash
|
888
|
2,078
|
|
|
Accounts
receivable
|
(4,193)
|
(10,798)
|
|
|
Inventories
|
(3,460)
|
3,700
|
|
|
Income taxes
refundable and payable, net
|
(5,561)
|
7,648
|
|
|
Prepaid expenses and
other assets
|
639
|
958
|
|
|
Accounts
payable
|
4,514
|
1,524
|
|
|
Accrued liabilities
and customer deposits
|
695
|
(12,007)
|
|
|
Deferred
profit
|
(1,156)
|
6,168
|
|
Net cash used
in operating activities
|
(12,374)
|
(6,756)
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
Purchases of
property, plant and equipment
|
(511)
|
(214)
|
|
Acquisitions, net of
cash acquired
|
8,595
|
-
|
|
Net cash provided by
(used in) investing activities
|
8,084
|
(214)
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
Proceeds from the
exercise of stock options
|
521
|
1,136
|
|
Payments on long-term
debt
|
(311)
|
-
|
|
Borrowings on
long-term debt
|
557
|
-
|
|
Excess tax benefit of
stock options
|
30
|
100
|
|
Net cash provided by
financing activities
|
797
|
1,236
|
|
|
|
|
|
|
|
|
|
|
Effect of Exchange
Rate Changes on Cash
|
(159)
|
175
|
|
|
|
|
|
|
|
|
|
|
Net Decrease in
Cash and Cash Equivalents
|
(3,652)
|
(5,559)
|
Cash and Cash
Equivalents, Beginning of Period
|
27,367
|
37,197
|
Cash and Cash
Equivalents, End of Period
|
$ 23,715
|
$ 31,638
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/amtech-reports-third-quarter-fiscal-2015-results-300125175.html
SOURCE Amtech Systems, Inc.