Amtech Systems, Inc. ("Amtech") (NASDAQ: ASYS), a 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, today announced a summary of its revenue and business
status as of September 30, 2023.
Fourth Quarter Fiscal 2023 Business Update
- Net revenue of $27.7 million
- Customer orders of $18.2 million
- Book to bill ratio of 0.7:1
Fiscal 2023 Business Update
- Net revenue of $113.3 million
- Customer orders of $103.9 million
- Book to bill ratio of 0.9:1
- Backlog of $51.8 million
Due to the prolonged downturn and general economic conditions in
the semiconductor industry and delays in the adoption of next-gen
polishing tools, the Company anticipates an impairment charge in
our Material and Substrate segment as of September 30, 2023. Due to
the complexity and judgment involved in the valuation and
impairment analyses, we are working with our external auditors to
finalize the audit procedures. When complete, the Company will
issue a press release with its fourth quarter and full year fiscal
2023 financial results, as well as file its Annual Report on Form
10-K.
“We experienced continued softness in demand across several of
our end markets during the fourth quarter and have taken actions to
reduce fixed costs and expenses. These actions include a reduction
in force at each of our businesses, as well as a decision to exit
the legacy PR Hoffman equipment business. The long-term
opportunities for Amtech’s products remain strong, and the actions
we are taking will allow us to significantly improve profitability
as demand recovers,” commented Mr. Bob Daigle, Chief Executive
Officer of Amtech.
Net revenues decreased 10% sequentially and 14% from the fourth
quarter of fiscal 2022. The decrease from prior year is primarily
attributable to lower shipments from our Shanghai manufacturing
facility partially offset by an increase in shipments of our high
temperature belt furnaces and the addition of Entrepix in fiscal
2023. The sequential decrease is primarily due to a decrease in
equipment shipments across our business segments. We are
experiencing lower bookings in multiple areas of our business due
to the softness in the semiconductor market.
Unrestricted cash and cash equivalents at September 30, 2023,
were $13.1 million dollars, compared to $14.3 million dollars at
June 30, 2023.
At September 30, 2023, we were not in compliance with the Debt
to EBITDA and Fixed Charge Coverage Ratio financial covenants under
our Loan Agreement. On December 5, 2023, we entered into a
Forbearance & Modification Agreement (the “Forbearance
Agreement”) with UMB Bank related to such non-compliance, pursuant
to which UMB Bank agreed to forbear from exercising its rights and
remedies available to it as a result of such defaults. We will be
operating under the terms of this Forbearance Agreement through
January 17, 2025 (the “Forbearance Period”).
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, 2023, we expect
revenues in the range of $21 - $24 million with EBITDA nominally
negative. Although the near-term outlook for revenue and earnings
is challenging, we remain confident that the long-term outlook is
strong for both our consumables and equipment serving advanced
mobility and advanced packaging applications. We took actions
during the first quarter of fiscal 2024, which will reduce Amtech's
structural costs by approximately $4 million annually and better
align product pricing with value. These steps will 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 today at 5:00 p.m. ET
to provide a business update. The call will be available to
interested parties by dialing 1-877-407-0784. For international
callers, please dial +1-201-689-8560. 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, 2022, 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20231213465321/en/
Amtech Systems, Inc. Lisa D. Gibbs Chief Financial Officer (480)
360-3756 irelations@amtechsystems.com
Sapphire Investor Relations, LLC Erica Mannion and Mike Funari
(617) 542-6180 irelations@amtechsystems.com
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