Financial Guidance - Amtech Systems, Inc. updated its financial guidance for Q2 fiscal 2025 on April 9, 2025[6] Company Information - The company is listed on the Nasdaq Global Select Market under the symbol ASYS[5] - The press release regarding the financial update is included as Exhibit 99.1[9]

Financial Performance - Total net revenue for the three months ended March 31, 2025, was $15.6 million, a decrease of approximately $9.9 million or 39% compared to $25.4 million in the same period of 2024[96] - Gross margin for the three months ended March 31, 2025, was negative $0.3 million, representing (2)% of net revenue, a decrease from $8.5 million or 33% of net revenue in the same period of 2024[99] - New orders for the three months ended March 31, 2025, totaled $15.7 million, a decrease of $4.1 million or 21% from $19.8 million in the same period of 2024[98] - Cash provided by operating activities for the six months ended March 31, 2025, was $3.1 million, down from $5.3 million in the same period of 2024[116] - Cash used in investing activities was $0.2 million for the six months ended March 31, 2025, compared to $0.7 million provided in the same period of 2024[117] - Cash provided by financing activities was $0.1 million for the six months ended March 31, 2025, primarily from stock option exercises, contrasting with $6.4 million used in the same period of 2024[118] Backlog and Working Capital - The backlog as of March 31, 2025, was $19.1 million, a decrease of $25.2 million or 57% compared to $44.3 million in 2024[98] - Working capital decreased to $37.4 million as of March 31, 2025, from $44.8 million as of September 30, 2024[114] - Unrecorded purchase obligations decreased to $5.2 million as of March 31, 2025, from $12.1 million as of September 30, 2024[120] Expenses - Research and development expenses for the three months ended March 31, 2025, were 5% of net revenue, compared to 4% in the same period of 2024[94] - Selling, general and administrative expenses for the three months ended March 31, 2025, were $7.1 million, a decrease from $8.3 million in the same period of 2024[102] - RD&E expenses for the six months ended March 31, 2025, decreased to $1.7 million from $2.5 million in the same period of 2024, reflecting a reduction in strategic-development project expenditures[104] Impairments - Goodwill impairment recognized during the six months ended March 31, 2025, totaled $20.4 million, with $15.4 million from the Semiconductor Fabrication Solutions segment and $5.0 million from the Thermal Processing Solutions segment[105] - Intangible asset impairment for the six months ended March 31, 2025, amounted to $2.6 million, recorded within operating expenses[107] Cash and Cash Equivalents - Cash and cash equivalents increased to $13.4 million as of March 31, 2025, from $11.1 million at the beginning of the period[113] Tax Rate - The effective tax rate for the six months ended March 31, 2025, was (2.3%), compared to (3.5%) for the same period in 2024, influenced by foreign income taxation and non-deductible expenses[111] Strategic Initiatives - The acquisition of Entrepix in 2023 enhanced the company's offerings in the CMP technology space and integrated wafer cleaning into existing product lines[90] - The company plans to continue pursuing organic growth alongside acquisitions to bolster its market position[92] - The introduction of the next-generation reflow platform, Aurora, is part of the company's ongoing investment in research and development[90] - The company is focusing on supply chain resiliency by expanding operations outside of mainland China, which is expected to create demand for new equipment and services[91]

Core Viewpoint - Amtech Systems (ASYS) has experienced a significant decline in share price, down 16.9% over the past six months, underperforming both the broader technology sector and its industry peers, raising questions about whether it is a time to exit or a buying opportunity [1][2]. Company Performance - The underperformance of ASYS is attributed to broader market weaknesses and specific company challenges, including a sell-off in tech stocks due to trade tensions and economic slowdown [3]. - Company-specific issues include a prolonged downturn in the automotive market affecting equipment sales and muted demand in the mature node semiconductor production market, leading to a 2% year-over-year revenue decline to $24.4 million in Q1 of fiscal 2025 [4]. Macroeconomic Challenges - ASYS faces macroeconomic pressures such as persistent inflation and high interest rates, which are causing enterprise customers to delay orders, negatively impacting investor sentiment [5]. Strategic Initiatives - Amtech is undertaking restructuring and cost optimization initiatives, achieving over $8 million in annualized cost savings, with a target of $9 million by the end of Q2 fiscal 2025 [10]. - The company is focusing on advanced packaging opportunities, particularly in AI infrastructure, which is expected to drive demand for its reflow equipment [8]. Market Outlook - The advanced semiconductor packaging market is projected to grow from $34.8 billion in 2025 to $47.98 billion by 2030, with a CAGR of 6.63%, providing a favorable backdrop for ASYS [7]. - Amtech anticipates revenues of $21-$23 million for Q2 fiscal 2025, reflecting confidence in growth driven by investments in AI-related packaging [9]. Profitability Enhancements - Ongoing pricing actions are being implemented to counter inflation and improve product margins, with expectations of significant margin improvements in subsequent quarters [13]. - The company is also optimizing its supply chain and operational footprint to reduce costs and enhance efficiency [12]. Investment Recommendation - Given the strong fundamentals, favorable industry trends, and strategic initiatives, ASYS is viewed as a compelling buying opportunity for investors [15][16].

Group 1: Amtech Systems (ASYS) - Amtech Systems shares increased by 5.5% to close at $5.17, following notable trading volume, despite a 13.9% loss over the past four weeks [1] - The company is benefiting from restructuring initiatives, cost optimization, and increasing demand for advanced packaging and AI infrastructure applications [1] - The consensus EPS estimate for the upcoming quarter remains unchanged, with expectations of a quarterly loss of $0.02 per share, reflecting a year-over-year change of -100% and projected revenues of $21.5 million, down 15.5% from the previous year [2][4] Group 2: STMicroelectronics (STM) - STMicroelectronics closed the last trading session at $24.01, down 1.6%, and has experienced a -13.5% return over the past month [4] - The consensus EPS estimate for STM has remained unchanged at $0.05, representing a -90.7% change from the previous year [5] - STMicroelectronics currently holds a Zacks Rank of 5 (Strong Sell) [5]

Industry Overview - The semiconductor industry is experiencing an uptrend driven by the AI revolution, with applications across various sectors including finance, automotive, healthcare, and cybersecurity [1] - The global semiconductor market is showing strong growth, with a 17.9% year-over-year increase in sales in January 2025, reaching $56.5 billion [4] - The global semiconductor market size is projected to reach $707 billion in 2025, reflecting a year-over-year increase of 12.5% [5] Company Insights - Marvell Technology provides a wide range of solutions for data centers, including PAM chips and digital signal processors, which are essential for AI applications [8] - Amtech Systems manufactures specialized equipment for semiconductor manufacturing, with a growing demand for advanced semiconductors driving the need for its products [10][11] - NVIDIA is a leader in the AI space with its GPUs based on Hopper and Blackwell architectures, which are increasingly adopted across various industries [13][14] - Taiwan Semiconductor is crucial for the AI revolution, supplying advanced chips and supporting cutting-edge fabrication technologies [16][17] Stock Performance - Marvell Technology has a Zacks Rank 1 and a Growth Score of A, with an expected EPS growth rate of 42.9% [10] - Amtech Systems also holds a Zacks Rank 1 and a Growth Score of A, with an EPS estimate of 17 cents for fiscal 2025 [12] - NVIDIA has a Zacks Rank 2 and a Growth Score of A, with an expected EPS growth rate of 25.7% [15] - Taiwan Semiconductor carries a Zacks Rank 2 and a Growth Score of B, with an expected EPS growth rate of 33.1% [18]

Core Viewpoint - Amtech Systems (ASYS) has reached a significant support level and shows potential for investors from a technical perspective, with a recent breakthrough of the 20-day moving average indicating a short-term bullish trend [1]. Technical Analysis - The 20-day simple moving average (SMA) is a popular trading tool that reflects a stock's price over a 20-day period, smoothing out short-term price trends and providing trend reversal signals [2]. - A stock price above the 20-day SMA indicates a positive trend, while a price below suggests a downward trend [2]. Performance Metrics - Over the past four weeks, ASYS has gained 11.2%, and it currently holds a Zacks Rank 1 (Strong Buy), suggesting further upward movement potential [3]. - Positive earnings estimate revisions support the bullish case for ASYS, with no estimates decreasing in the past two months and one estimate increasing, alongside a rise in the consensus estimate [3]. Investment Outlook - Given the key technical level and positive earnings estimate revisions, ASYS is positioned for potential gains in the near future [4].

Group 1 - Amtech Systems (ASYS) has surpassed resistance at the 50-day moving average, indicating a short-term bullish trend [1] - ASYS shares have increased by 11.2% over the past four weeks, and the company holds a Zacks Rank 1 (Strong Buy) [2] - Positive earnings estimate revisions support the bullish outlook, with one estimate increasing and none decreasing in the past two months [2][3] Group 2 - The combination of earnings estimate revisions and technical indicators suggests that ASYS may continue to see gains in the near future [3]

Financial Data and Key Metrics Changes - For fiscal Q1 2025, revenue was $24.4 million, with adjusted EBITDA of $1.9 million, showing a year-over-year adjusted EBITDA increase of $1.8 million despite muted revenue growth [7][19] - GAAP net income for Q1 2025 was $0.3 million, or $0.02 per share, compared to a GAAP net loss of $9.4 million, or $0.60 per share for Q1 2024 [23] - Unrestricted cash and cash equivalents increased to $13.2 million from $11.1 million due to improved accounts receivable collection and inventory management [24] Business Line Data and Key Metrics Changes - The Semiconductor Fabrication Solutions business aims to drive sustainable growth by expanding recurring revenue streams such as consumables, parts, and services [14] - The Thermal Process Solutions business focuses on reflow equipment for advanced chip packaging and surface-mount assembly applications [14] Market Data and Key Metrics Changes - Demand for equipment and consumables in mature node semiconductor production remains muted, particularly in industrial equipment and automotive sectors [11] - Strengthening demand for reflow equipment in leading-edge applications, such as AI infrastructure, has been noted [12] Company Strategy and Development Direction - The company is focused on operational excellence and cost optimization, with restructuring initiatives yielding over $8 million in annualized cost savings [9] - A semi-fabless model has been adopted to enhance operating leverage and reduce fixed costs [9] - The company is investing in growth initiatives for 2025 while refining business segments for greater clarity and focus [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a soft near-term macro environment but expresses confidence in long-term growth drivers, particularly in AI-related infrastructure and supply chain diversification [16][17] - The company anticipates double-digit growth in the electric vehicle segment, which will continue to drive demand for silicon carbide-related consumables [17] Other Important Information - The company is actively pursuing opportunities to introduce more products to new customers and broaden its footprint with existing customers [15] - The outlook for Q2 2025 is expected to be in the range of $21 million to $23 million, with adjusted EBITDA projected to be nominally positive [24] Q&A Session Summary Question: Are there still additional costs that can be taken out of the business? - Management indicated ongoing efforts in supply chain management and footprint utilization to identify further cost-saving opportunities [29][31] Question: What is the current outlook for the automotive market? - Management noted continued softness in the automotive segment, particularly in equipment sales, with no sharp recovery expected in the near term [34][36] Question: What is the activity level in the advanced packaging space? - Management reported strengthening activity in advanced packaging, particularly for AI data centers, and anticipates increased volume as AI hardware proliferates [38][40]

Core Viewpoint - Amtech Systems (ASYS) reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of a loss of $0.05 per share, and showing improvement from a loss of $0.04 per share a year ago [1][2]. Financial Performance - The earnings surprise for the quarter was 220%, with the company previously expected to post a loss of $0.04 per share but instead achieving break-even earnings, resulting in a 100% surprise [2]. - Amtech's revenues for the quarter ended December 2024 were $24.39 million, surpassing the Zacks Consensus Estimate by 3.77%, although this represents a decline from year-ago revenues of $24.92 million [3]. - The company has consistently exceeded consensus EPS and revenue estimates over the last four quarters [2][3]. Stock Performance and Outlook - Amtech shares have declined approximately 3.7% since the beginning of the year, contrasting with the S&P 500's gain of 2.7% [4]. - The company's earnings outlook is mixed, with current consensus EPS estimates of $0.02 on $26 million in revenues for the upcoming quarter and $0.15 on $110 million in revenues for the current fiscal year [8]. - The Zacks Rank for Amtech is currently 3 (Hold), indicating expected performance in line with the market in the near future [7]. Industry Context - The Semiconductor - General industry, to which Amtech belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, suggesting potential challenges ahead [9]. - The performance of Amtech's stock may be influenced by the overall outlook for the semiconductor industry [9].

Financial Data and Key Metrics Changes - For the fiscal first quarter of 2025, the company reported revenue of $24.4 million and adjusted EBITDA of $1.9 million, with year-over-year adjusted EBITDA increasing by $1.8 million [5][6] - Net revenues increased by 1% sequentially but decreased by 2% year-over-year, primarily due to lower sales of wafer cleaning equipment [13] - GAAP net income for the first quarter was $300,000 or $0.02 per share, compared to a net loss of $9.4 million or $0.60 per share in the same quarter last year [15][16] Business Line Data and Key Metrics Changes - The Semiconductor Fabrication Solutions business includes various consumables and capital equipment, aiming for sustainable growth through recurring revenue streams [9] - The Thermal Process Solutions business focuses on reflow equipment for advanced chip packaging, with a goal to drive long-term growth [9] Market Data and Key Metrics Changes - Demand for equipment and consumables in mature node semiconductor production remains muted, particularly in industrial equipment and automotive sectors [8] - However, demand for reflow equipment in leading-edge applications, such as AI infrastructure, has strengthened [8][11] Company Strategy and Development Direction - The company is focused on operational excellence and cost optimization, with restructuring initiatives yielding over $8 million in annualized cost savings [6][10] - Investments in AI-related infrastructure and supply chain diversification are expected to drive recovery in capital equipment demand [11] - The company is refining its business segments to provide greater clarity and focus, enhancing its ability to adapt to market demand [8][10] Management's Comments on Operating Environment and Future Outlook - Management noted that while the near-term outlook for revenue and earnings remains challenging, long-term prospects are strong for consumables and equipment serving advanced mobility and packaging applications [17] - The company is optimistic about future growth drivers, despite the current softness in the market [10][11] Other Important Information - Unrestricted cash and cash equivalents increased to $13.2 million, attributed to stronger accounts receivable collection and inventory management [17] - The company expects revenues for the second fiscal quarter to range between $21 million and $23 million, with adjusted EBITDA expected to be nominally positive [17] Q&A Session Summary Question: Are there still additional costs that can be taken out of the business? - Management indicated ongoing efforts in supply chain management and footprint utilization to reduce input costs and fixed costs [20] Question: What is the current outlook for the automotive market? - Management noted continued softness in the automotive equipment segment, with no signs of a sharp recovery [22][23] Question: Can you provide more details on the advanced packaging space? - Management observed strengthening in the advanced packaging area, particularly for AI data centers, and expects increased volume to drive growth [27][28]