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Amtech Reports Fourth Quarter and Fiscal 2021 Results

Amtech Reports Fourth Quarter and Fiscal 2021 Results

Amtech Systems, Inc. (NASDAQ: ASYS), a manufacturer of capital equipment, including thermal processing and wafer polishing, and related consumables used in fabricating semiconductor devices, such as silicon carbide (SiC) and silicon power devices, analog and discrete devices, electronic assemblies and light-emitting diodes (LEDs), today reported results for its fourth quarter and fiscal year ended September 30, 2021.

Fourth Quarter Fiscal 2021 Financial and Operational Highlights:

  • Net revenue of $24.3 million
  • Operating income of $1.3 million
  • Income from operations, net of tax, of $0.7 million
  • Income per diluted share of $0.05
  • Customer orders of $34.2 million
  • Book to bill ratio of 1.4:1
  • Unrestricted cash of $32.8 million

Fiscal 2021 Financial and Operational Highlights:

  • Net revenue of $85.2 million
  • Operating income of $3.7 million
  • Income from operations, net of tax, of $1.5 million
  • Income per diluted share of $0.11
  • Customer orders of $115.4 million
  • September 30, 2021 backlog of $44.1 million

Mr. Michael Whang, Chief Executive Officer of Amtech, commented, “Fiscal 2021 was a strong year for Amtech, with over $115 million in bookings and over $85 million in revenue, representing year-over-year growth rates of 84% and 30%, respectively. We are encouraged to see this strength continuing into 2022, with a record backlog of $44.1 million and new quoting activity extending into the second fiscal quarter and beyond. Although industry wide logistics and supply chain challenges are creating near-term headwinds, longer-term growth drivers across our served markets remain healthy.”

GAAP Financial Results

(in millions, except per share amounts)

Q4 FY

 

Q3 FY

 

Q4 FY

 

12 Months

 

12 Months

 

2021

 

2021

 

2020

 

2021

 

2020

Net revenues

$

24.3

 

$

23.1

 

$

15.1

 

$

85.2

 

$

65.5

 

Gross profit

$

9.2

 

$

10.1

 

$

5.0

 

$

34.5

 

$

24.4

 

Gross margin

 

37.8

%

 

43.6

%

 

32.9

%

 

40.5

%

 

37.3

%

Operating income (loss)

$

1.3

 

$

1.2

 

$

(1.2

)

$

3.7

 

$

(0.5

)

Operating margin

 

5.3

%

 

5.2

%

 

-7.8

%

 

4.4

%

 

-0.7

%

Income (loss) from continuing operations, net of tax

$

0.7

 

$

0.4

 

$

(2.0

)

$

1.5

 

$

(3.9

)

Diluted income (loss) per share from continuing operations

$

0.05

 

$

0.03

 

$

(0.14

)

$

0.11

 

$

(0.28

)

Net revenues increased 5% sequentially and 61% from the fourth quarter of fiscal 2020, with the sequential increase primarily attributable to strong shipments of our advanced packaging and SMT equipment and increased shipments of our polishing machines. The prior year period was affected by the COVID-19 pandemic.

Relative to last quarter, gross margin decreased in the fourth quarter of fiscal 2021 primarily due to a less favorable product mix. Gross margin in the fourth quarter of fiscal 2021 increased compared to prior year due to product mix and increased capacity utilization, partially offset by rising labor and material costs.

Selling, General & Administrative (“SG&A”) expenses decreased $0.7 million on a sequential basis. Adjusting for cyber incident expenses of $1.1 million in the third quarter of fiscal 2021 and the partial insurance reimbursement for this incident ($0.4 million) in the fourth fiscal quarter of 2021, SG&A increased sequentially by $0.8 million due primarily to increased consulting, shipping and logistics costs. SG&A increased $1.3 million compared to the prior year period due primarily to SG&A from the acquisition of Intersurface Dynamics in fiscal 2021, as well as increased travel and consulting expenses.

Research, Development and Engineering decreased $0.2 million sequentially and increased $0.5 million compared to the same prior year period due primarily to the timing of materials used in our strategic R&D projects.

Operating income was $1.3 million, compared to operating income of $1.2 million in the third quarter of fiscal 2021 and an operating loss of $1.2 million in the same prior year period.

Income tax provision was $0.7 million for the three months ended September 30, 2021, compared to a provision of $0.7 million in the preceding quarter and $0.5 million in the same prior year period.

Income from operations, net of tax, for the fourth quarter of fiscal 2021 was $0.7 million, or 5 cents per share. This compares to a loss from operations of $2.0 million, or 14 cent per share, for the fourth quarter of fiscal 2020 and income of $0.4 million, or 3 cent per share, in the preceding quarter.

Outlook

The Company’s outlook reflects the anticipated ongoing logistical impacts and the related delays for goods shipped to and from China. Actual results may differ materially in the weeks and months ahead. Additionally, the semiconductor equipment industries can be cyclical and inherently impacted by changes in market demand. Operating results can be significantly impacted, positively or negatively, by the timing of orders, system shipments, and the financial results of semiconductor manufacturers.

For the first fiscal quarter ending December 31, 2021, revenues are expected to be in the range of $24 to $27 million. Gross margin for the quarter ending December 31, 2021 is expected to be approximately 40% due to a more favorable product mix, with operating margin in the mid to upper single digits.

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 discuss our fiscal fourth quarter financial results. The call will be available to interested parties by dialing 800-367-2403. For international callers, please dial +1 334-777-6978. The confirmation code is 7034799. 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 web site 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 capital equipment, including thermal processing and wafer polishing, and related consumables used in fabricating semiconductor devices, such as silicon carbide (SiC) and silicon power devices, analog and discrete devices, electronic assemblies and light-emitting diodes (LEDs). We sell these products to semiconductor device and module manufacturers worldwide, particularly in Asia, North America and Europe. Our strategic focus is on semiconductor growth opportunities in power electronics, sensors and analog devices leveraging our strength in our core competencies in thermal and substrate processing. We are a market leader in the high-end power chip market (SiC substrates, 300mm horizontal thermal reactor, and electronic assemblies used in power, RF, and other advanced applications), developing and supplying essential equipment and consumables used in the semiconductor industry. Amtech's products are recognized under the leading brand names BTU International, Bruce Technologies, 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, 2021, 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 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)

November 17, 2021

(Unaudited)

Summary Financial Information for Continuing Operations

(in thousands, except percentages and ratios)

 

 

Three Months Ended

 

 

Years Ended September 30,

 

 

September 30,
2021

 

June 30,
2021

 

September 30,
2020

 

 

2021

 

2020

Amtech Systems, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues, net of returns and allowances

 

$

24,340

 

 

$

23,100

 

 

$

15,084

 

 

 

$

85,205

 

 

$

65,463

 

Gross profit

 

$

9,211

 

 

$

10,079

 

 

$

4,958

 

 

 

$

34,530

 

 

$

24,441

 

Gross margin

 

 

38

%

 

 

44

%

 

 

33

%

 

 

 

41

%

 

 

37

%

Operating income (loss)

 

$

1,296

 

 

$

1,204

 

 

$

(1,181

)

 

 

$

3,725

 

 

$

(485

)

New orders

 

$

34,188

 

 

$

30,861

 

 

$

13,767

 

 

 

$

115,444

 

 

$

62,848

 

Backlog

 

$

44,143

 

 

$

34,295

 

 

$

13,905

 

 

 

$

44,143

 

 

$

13,905

 

Semiconductor Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues, net of returns and allowances

 

$

19,891

 

 

$

19,501

 

 

$

12,935

 

 

 

$

72,086

 

 

$

54,516

 

Gross profit

 

$

7,732

 

 

$

8,599

 

 

$

4,647

 

 

 

$

30,336

 

 

$

21,199

 

Gross margin

 

 

39

%

 

 

44

%

 

 

36

%

 

 

 

42

%

 

 

39

%

Operating income

 

$

2,609

 

 

$

2,114

 

 

$

406

 

 

 

$

8,585

 

 

$

4,168

 

New orders

 

$

30,247

 

 

$

26,607

 

 

$

11,979

 

 

 

$

101,988

 

 

$

52,448

 

Backlog

 

$

42,743

 

 

$

32,388

 

 

$

12,842

 

 

 

$

42,743

 

 

$

12,842

 

Material and Substrate Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues, net of returns and allowances

 

$

4,449

 

 

$

3,599

 

 

$

2,149

 

 

 

$

13,119

 

 

$

10,304

 

Gross profit

 

$

1,479

 

 

$

1,480

 

 

$

311

 

 

 

$

4,194

 

 

$

3,233

 

Gross margin

 

 

33

%

 

 

41

%

 

 

14

%

 

 

 

32

%

 

 

31

%

Operating income (loss)

 

$

264

 

 

$

333

 

 

$

(512

)

 

 

$

278

 

 

$

684

 

New orders

 

$

3,941

 

 

$

4,254

 

 

$

1,788

 

 

 

$

13,456

 

 

$

10,400

 

Backlog

 

$

1,400

 

$

1,907

 

 

$

1,063

 

$

1,400

$

1,063

AMTECH SYSTEMS, INC.

(NASDAQ: ASYS)

November 17, 2021

(Unaudited)

Consolidated Statements of Operations

(in thousands, except per share data)

 

 

Three Months Ended
September 30,

 

Years Ended
September 30,

 

 

2021

 

2020

 

2021

 

2020

Revenue, net of returns and allowances

 

$

24,340

 

 

$

15,084

 

 

$

85,205

 

 

$

65,463

 

Cost of sales

 

 

15,129

 

 

 

10,126

 

 

 

50,675

 

 

 

41,022

 

Gross profit

 

 

9,211

 

 

 

4,958

 

 

 

34,530

 

 

 

24,441

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

6,558

 

 

 

5,263

 

 

 

24,740

 

 

 

21,397

 

Research, development and engineering

 

 

1,342

 

 

 

876

 

 

 

5,979

 

 

 

3,312

 

Restructuring charges

 

 

15

 

 

 

 

 

 

86

 

 

 

217

 

Operating income (loss)

 

 

1,296

 

 

 

(1,181

)

 

 

3,725

 

 

 

(485

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on sale of subsidiary

 

 

 

 

 

 

 

 

 

 

 

(2,793

)

Interest income (expense) and other, net

 

 

46

 

 

 

(350

)

 

 

(291

)

 

 

162

 

Income (loss) from continuing operations before income taxes

 

 

1,342

 

 

 

(1,531

)

 

 

3,434

 

 

 

(3,116

)

Income tax provision

 

 

676

 

 

 

494

 

 

 

1,926

 

 

 

791

 

Income (loss) from continuing operations, net of tax

 

 

666

 

 

 

(2,025

)

 

 

1,508

 

 

 

(3,907

)

Loss from discontinued operations, net of tax

 

 

 

 

 

 

 

 

 

 

 

(11,816

)

Net income (loss)

 

$

666

 

 

$

(2,025

)

 

$

1,508

 

 

$

(15,723

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Per Basic Share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic income (loss) per share from continuing operations

 

$

0.05

 

 

$

(0.14

)

 

$

0.11

 

 

$

(0.28

)

Basic loss per share from discontinued operations

 

$

 

 

$

 

 

$

 

 

$

(0.83

)

Net income (loss) per basic share

 

$

0.05

 

 

$

(0.14

)

 

$

0.11

 

 

$

(1.11

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Per Diluted Share:

 

 

 

 

 

 

 

 

 

 

 

 

Diluted income (loss) per share from continuing operations

 

$

0.05

 

 

$

(0.14

)

 

$

0.11

 

 

$

(0.28

)

Diluted loss per share from discontinued operations

 

$

 

 

$

 

 

$

 

 

$

(0.83

)

Net income (loss) per diluted share

 

$

0.05

 

 

$

(0.14

)

 

$

0.11

 

 

$

(1.11

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

 

14,190

 

 

 

14,052

 

 

 

14,189

 

 

 

14,159

 

Weighted average shares outstanding - diluted

 

 

14,387

 

 

 

14,052

 

 

 

14,340

 

 

 

14,159

 

 

AMTECH SYSTEMS, INC.

(NASDAQ: ASYS)

November 17, 2021

(Unaudited)

Consolidated Balance Sheets

(in thousands, except share data)

 

 

September 30,
2021

 

September 30,
2020

Assets

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

32,836

 

 

$

45,070

 

Accounts receivable - Net

 

 

22,502

 

 

 

11,243

 

Inventory - Net

 

 

22,075

 

 

 

17,277

 

Income taxes receivable

 

 

1,046

 

 

 

1,362

 

Other current assets

 

 

2,407

 

 

 

1,617

 

Total current assets

 

 

80,866

 

 

 

76,569

 

Property, Plant and Equipment - Net

 

 

14,083

 

 

 

11,995

 

Right-of-Use Assets - Net

 

 

8,646

 

 

 

5,124

 

Intangible Assets - Net

 

 

858

 

 

 

609

 

Goodwill - Net

 

 

11,168

 

 

 

6,633

 

Deferred Income Taxes - Net

 

 

631

 

 

 

566

 

Other Assets

 

 

661

 

 

 

602

 

Total Assets

 

$

116,913

 

 

$

102,098

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

Accounts payable

 

$

8,229

 

 

$

2,676

 

Accrued compensation and related taxes

 

 

2,881

 

 

 

2,066

 

Accrued warranty expense

 

 

545

 

 

 

380

 

Other accrued liabilities

 

 

903

 

 

 

627

 

Current maturities of long-term debt

 

 

396

 

 

 

380

 

Current portion of long-term lease liability

 

 

531

 

 

 

124

 

Contract liabilities

 

 

1,624

 

 

 

1,224

 

Total current liabilities

 

 

15,109

 

 

 

7,477

 

Long-Term Debt

 

 

4,402

 

 

 

4,798

 

Long-Term Lease Liability

 

 

8,389

 

 

 

5,064

 

Income Taxes Payable

 

 

3,277

 

 

 

3,240

 

Other Long-Term Liabilities

 

 

102

 

 

 

 

Total Liabilities

 

 

31,279

 

 

 

20,579

 

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: 14,304,492 and 14,063,172 in 2021 and 2020, respectively

 

 

143

 

 

 

141

 

Additional paid-in capital

 

 

126,380

 

 

 

124,435

 

Accumulated other comprehensive income (loss)

 

 

14

 

 

 

(646

)

Retained deficit

 

 

(40,903

)

 

 

(42,411

)

Total Shareholders’ Equity

 

 

85,634

 

 

 

81,519

 

Total Liabilities and Shareholders’ Equity

 

$

116,913

 

 

$

102,098

 

 

AMTECH SYSTEMS, INC.

(NASDAQ: ASYS)

November 17, 2021

(Unaudited)

Consolidated Statements of Cash Flows

(in thousands)

 

 

Years Ended September 30,

 

 

2021

 

2020

Operating Activities

 

 

 

 

 

 

Net income (loss)

 

$

1,508

 

 

$

(15,723

)

Adjustments to reconcile net income (loss) to net cash used in operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

1,398

 

 

 

1,258

 

Write-down of inventory

 

 

544

 

 

 

733

 

Provision for allowance for doubtful accounts

 

 

44

 

 

 

24

 

Deferred income taxes

 

 

(65

)

 

 

218

 

Non-cash share-based compensation expense

 

 

401

 

 

 

326

 

Loss on sales of subsidiaries

 

 

 

 

 

13,709

 

Other, net

 

 

43

 

 

 

55

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(11,023

)

 

 

1,359

 

Inventory

 

 

(5,180

)

 

 

(913

)

Contract and other assets

 

 

(686

)

 

 

324

 

Accounts payable

 

 

5,472

 

 

 

(3,620

)

Accrued income taxes

 

 

353

 

 

 

(2,701

)

Accrued and other liabilities

 

 

829

 

 

 

4,658

 

Contract liabilities

 

 

400

 

 

 

(1,371

)

Net cash used in operating activities

 

 

(5,962

)

 

 

(1,664

)

Investing Activities

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

(3,012

)

 

 

(2,676

)

Net cash disposed of in sales of subsidiaries

 

 

 

 

 

(9,940

)

Acquisition, net of cash and cash equivalents acquired

 

 

(5,082

)

 

 

 

Net cash used in investing activities

 

 

(8,094

)

 

 

(12,616

)

Financing Activities

 

 

 

 

 

 

Proceeds from the exercise of stock options

 

 

1,546

 

 

 

877

 

Repurchase of common stock

 

 

 

 

 

(2,000

)

Payments on long-term debt

 

 

(380

)

 

 

(379

)

Net cash provided by (used in) financing activities

 

 

1,166

 

 

 

(1,502

)

Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash

 

 

656

 

 

 

1,718

 

Net Decrease in Cash, Cash Equivalents and Restricted Cash

 

 

(12,234

)

 

 

(14,064

)

Cash, Cash Equivalents and Restricted Cash, Beginning of Year*

 

 

45,070

 

 

 

59,134

 

Cash, Cash Equivalents and Restricted Cash, End of Year

 

$

32,836

 

 

$

45,070

 

* Includes Cash, Cash Equivalents and Restricted Cash that are included in Held-For-Sale Assets on the Condensed Consolidated Balance Sheets for periods prior to January 22, 2020.

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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