[Executive Summary](index=1&type=section&id=Executive%20Summary) Amtech reported strong Q2 FY2024 results with increased net revenue, positive GAAP operating income, and a significant reduction in debt, positioning for future growth [Q2 FY2024 Financial and Operational Highlights](index=1&type=section&id=Q2%20FY2024%20Financial%20and%20Operational%20Highlights) Amtech reported Q2 FY2024 results with net revenue of $25.4 million, GAAP operating income of $1.4 million, and GAAP net income of $1.0 million, also generating $2.5 million in net proceeds from the sale of its corporate headquarters and reducing debt by $6.4 million, ending the quarter with a net cash position of $8.8 million | Metric | Q2 FY2024 | | :----- | :-------- | | Net revenue | $25.4 million | | GAAP operating income | $1.4 million | | GAAP net income | $1.0 million | | Non-GAAP operating income | $0.2 million | | Non-GAAP net loss | $0.2 million | | Customer orders | $19.8 million | | Backlog | $44.3 million | - Net proceeds of **$2.5 million** from the sale of corporate headquarters building[2](index=2&type=chunk) - Debt payments of **$6.4 million**, resulting in a net cash position of **$8.8 million**[2](index=2&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Bob Daigle highlighted improved cost structure and operational effectiveness, exceeding revenue guidance despite soft market demand, noting the company's adjusted EBITDA of $0.8 million and strategic alignment of the organization size to current market demand, positioning Amtech for strong operating results upon semiconductor market recovery - Exceeded revenue guidance with **$25.4 million**, driven by improved cost structure and operational effectiveness[3](index=3&type=chunk) - Delivered adjusted EBITDA of **$0.8 million** despite continued softness in overall market demand[3](index=3&type=chunk) - Company is positioned to deliver strong operating results as the broader semiconductor market recovers, following organizational alignment to current market demand[3](index=3&type=chunk) [Consolidated Financial Performance](index=2&type=section&id=Consolidated%20Financial%20Performance) This section analyzes Amtech's Q2 FY2024 net revenues, gross profit, operating expenses, and net income, highlighting sequential and year-over-year changes [Net Revenues Analysis](index=2&type=section&id=Net%20Revenues%20Analysis) Net revenues for Q2 FY2024 were $25.4 million, a 2% sequential increase primarily due to increased consumable sales in the Material and Substrate segment, but a 24% decrease year-over-year due to a slowdown in the broader semiconductor market | Metric | Q2 FY2024 (in millions) | Q1 FY2024 (in millions) | Q2 FY2023 (in millions) | Sequential Change | YoY Change | | :----- | :---------------------- | :---------------------- | :---------------------- | :---------------- | :--------- | | Net Revenues | $25.4M | $24.9M | $33.3M | +2% | -24% | - Sequential increase primarily due to increased consumable sales in the Material and Substrate segment as customers update their buying patterns and adjust inventory levels[5](index=5&type=chunk) - Decrease from prior year primarily attributable to lower sales across most of the product portfolio due to a slow-down in the broader semiconductor market[5](index=5&type=chunk) [Gross Profit and Margin Analysis](index=2&type=section&id=Gross%20Profit%20and%20Margin%20Analysis) GAAP gross margin was flat sequentially at 33.2% but decreased from 40.4% in Q2 FY2023, with the Semiconductor segment's GAAP gross margin negatively affected by product mix and increased material costs, while the Material and Substrate segment saw sequential and YoY increases due to a more favorable product mix and increased consumable sales, and Non-GAAP gross margin decreased sequentially and YoY due to less favorable product mix and increased material costs | Metric | Q2 FY2024 (in millions) | Q1 FY2024 (in millions) | Q2 FY2023 (in millions) | | :----- | :---------------------- | :---------------------- | :---------------------- | | GAAP Gross Profit | $8.5M | $8.2M | $13.5M | | GAAP Gross Margin | 33.2% | 33.0% | 40.4% | | Non-GAAP Gross Profit | $8.6M | $9.3M | $13.5M | | Non-GAAP Gross Margin | 33.9% | 37.5% | 40.4% | - Semiconductor segment GAAP gross margin negatively affected by product mix and increased material costs, both primarily attributed to shipments of horizontal diffusion furnaces[6](index=6&type=chunk) - Material and Substrate segment GAAP gross margin increased sequentially and compared to the same prior year period due primarily to a more favorable product mix, with increased consumable sales partially offset by lower equipment sales[6](index=6&type=chunk) [Operating Expenses](index=2&type=section&id=Operating%20Expenses) Selling, General & Administrative (SG&A) expenses decreased by $0.3 million sequentially and $3.2 million YoY, driven by reductions in labor, commissions, shipping, and lower acquisition and amortization expenses, while Research, Development and Engineering (R&D) expenses decreased by $0.7 million sequentially and $0.6 million YoY, mainly due to timing of purchases for specific projects in the Semiconductor segment - SG&A expenses decreased **$0.3 million** sequentially due primarily to reductions in labor expenses and lower commissions and shipping expenses[7](index=7&type=chunk) - SG&A expenses decreased **$3.2 million** YoY, primarily due to **$1.5 million** of lower acquisition expenses, **$0.6 million** of lower amortization expense, and reductions in labor, commissions and shipping expenses[7](index=7&type=chunk) - Research, Development and Engineering expenses decreased **$0.7 million** sequentially and **$0.6 million** YoY due primarily to the timing of purchases related to specific projects in the Semiconductor segment[7](index=7&type=chunk) [Operating Income (Loss)](index=2&type=section&id=Operating%20Income%20%28Loss%29) Amtech reported GAAP operating income of $1.4 million in Q2 FY2024, a significant improvement from a GAAP operating loss of $8.9 million in the prior quarter and an increase from $0.5 million in Q2 FY2023, while Non-GAAP operating income was $0.2 million, turning positive from a $0.2 million loss sequentially but down from $3.2 million in Q2 FY2023 | Metric | Q2 FY2024 (in millions) | Q1 FY2024 (in millions) | Q2 FY2023 (in millions) | | :----- | :---------------------- | :---------------------- | :---------------------- | | GAAP Operating Income (Loss) | $1.4M | ($8.9M) | $0.5M | | Non-GAAP Operating Income (Loss) | $0.2M | ($0.2M) | $3.2M | [Net Income (Loss) and EPS](index=2&type=section&id=Net%20Income%20%28Loss%29%20and%20EPS) GAAP net income for Q2 FY2024 was $1.0 million ($0.07 per diluted share), a substantial improvement from a GAAP net loss of $9.4 million ($0.66 per diluted share) for the preceding quarter, but lower than $3.2 million ($0.23 per diluted share) for Q2 FY2023, while Non-GAAP net loss was $0.2 million ($0.01 per diluted share), an improvement from a $0.6 million loss sequentially, but a decline from $2.7 million net income ($0.19 per diluted share) in Q2 FY2023 | Metric | Q2 FY2024 (in millions) | Q1 FY2024 (in millions) | Q2 FY2023 (in millions) | | :----- | :---------------------- | :---------------------- | :---------------------- | | GAAP Net Income (Loss) | $1.0M | ($9.4M) | $3.2M | | GAAP Net Income (Loss) per Diluted Share | $0.07 | ($0.66) | $0.23 | | Non-GAAP Net (Loss) Income | ($0.2M) | ($0.6M) | $2.7M | | Non-GAAP Net (Loss) Income per Diluted Share | ($0.01) | ($0.04) | $0.19 | [Segment Performance](index=6&type=section&id=Segment%20Performance) This section details the Q2 FY2024 financial performance of Amtech's Semiconductor and Material and Substrate segments, including revenues, gross margins, and operating income [Semiconductor Segment](index=6&type=section&id=Semiconductor%20Segment) The Semiconductor segment reported net revenues of $17.4 million in Q2 FY2024, a slight decrease from $17.5 million sequentially and a notable decrease from $22.0 million YoY, with GAAP gross margin at 29%, down from 35% sequentially and 41% YoY, and GAAP operating income of $0.9 million | Metric (in thousands) | Q2 FY2024 | Q1 FY2024 | Q2 FY2023 | | :----- | :-------- | :-------- | :-------- | | Revenues, net | $17,441 | $17,527 | $22,047 | | GAAP Gross Profit | $5,040 | $6,159 | $8,931 | | GAAP Gross Margin | 29% | 35% | 41% | | GAAP Operating Income | $896 | $1,081 | $2,950 | | New orders | $12,061 | $17,129 | $24,606 | | Backlog | $39,455 | $44,835 | $54,767 | [Material and Substrate Segment](index=6&type=section&id=Material%20and%20Substrate%20Segment) The Material and Substrate segment's net revenues increased to $8.0 million in Q2 FY2024 from $7.4 million sequentially, though down from $11.3 million YoY, with GAAP gross margin significantly improving to 43% from 28% sequentially, and comparable to 40% YoY, and GAAP operating income of $0.9 million, a substantial recovery from a $7.8 million loss in the prior quarter | Metric (in thousands) | Q2 FY2024 | Q1 FY2024 | Q2 FY2023 | | :----- | :-------- | :-------- | :-------- | | Revenues, net | $7,992 | $7,393 | $11,263 | | GAAP Gross Profit | $3,411 | $2,060 | $4,539 | | GAAP Gross Margin | 43% | 28% | 40% | | GAAP Operating Income (Loss) | $900 | ($7,844) | $297 | | New orders | $7,710 | $5,976 | $9,660 | | Backlog | $4,861 | $5,144 | $11,071 | [Financial Position and Cash Flow](index=8&type=section&id=Financial%20Position%20and%20Cash%20Flow) This section reviews Amtech's balance sheet as of March 31, 2024, and analyzes cash flow activities for the six months ended March 31, 2024 [Balance Sheet Highlights](index=8&type=section&id=Balance%20Sheet%20Highlights) As of March 31, 2024, total assets decreased to $116.5 million from $137.0 million at September 30, 2023, with current assets, accounts receivable, and inventories seeing reductions, while total liabilities decreased to $35.6 million from $48.7 million, primarily due to a significant reduction in finance lease liabilities and long-term debt, and shareholders' equity decreased to $80.9 million from $88.4 million | Metric (in thousands) | March 31, 2024 | September 30, 2023 | Change | | :----- | :------------- | :----------------- | :----- | | Total Assets | $116,474 | $137,021 | -$20,547 | | Cash and cash equivalents | $13,000 | $13,133 | -$133 | | Accounts receivable | $21,230 | $26,474 | -$5,244 | | Inventories | $31,308 | $34,845 | -$3,537 | | Total Liabilities | $35,583 | $48,656 | -$13,073 | | Finance Lease Liabilities and Long-Term Debt | $65 | $8,422 | -$8,357 | | Total Shareholders' Equity | $80,891 | $88,365 | -$7,474 | [Cash Flow Activities](index=9&type=section&id=Cash%20Flow%20Activities) For the six months ended March 31, 2024, net cash provided by operating activities was $5.3 million, a significant improvement from a $5.3 million use in the prior year, with investing activities providing $0.7 million, primarily from the sale of property, plant, and equipment, and financing activities using $6.4 million, mainly due to debt payments | Cash Flow Activity (in thousands) | Six Months 2024 | Six Months 2023 | | :-------------------------------- | :-------------- | :-------------- | | Net cash provided by (used in) operating activities | $5,307 | ($5,327) | | Net provided by (used in) investing activities | $724 | ($36,474) | | Net cash (used in) provided by financing activities | ($6,385) | $11,919 | | Cash and Cash Equivalents, End of Period | $13,000 | $17,733 | - Unrestricted cash and cash equivalents at March 31, 2024, were **$13.0 million**, compared to **$13.1 million** at September 30, 2023[9](index=9&type=chunk) - Debt payments during the three months ended March 31, 2024, were **$6.4 million**, resulting in a net cash position of **$8.8 million** as of March 31, 2024, compared to **$7.0 million** as of December 31, 2023[9](index=9&type=chunk) [Business Outlook and Strategic Actions](index=3&type=section&id=Business%20Outlook%20and%20Strategic%20Actions) This section outlines Amtech's Q3 FY2024 guidance, strategic initiatives to reduce costs, and market factors influencing future operating results [Q3 FY2024 Guidance](index=3&type=section&id=Q3%20FY2024%20Guidance) For the third fiscal quarter ending June 30, 2024, Amtech expects revenues in the range of $22 million to $25 million, with adjusted EBITDA projected to be nominally positive, including some expenses and production downtime related to the BTU facility move - Expected revenues for the third fiscal quarter ending June 30, 2024, are in the range of **$22 million - $25 million**[12](index=12&type=chunk) - Adjusted EBITDA for Q3 FY2024 is expected to be nominally positive, which includes some expenses and production downtime with the BTU facility move[12](index=12&type=chunk) [Strategic Initiatives and Market Factors](index=3&type=section&id=Strategic%20Initiatives%20and%20Market%20Factors) Amtech remains confident in the future prospects for its consumables and equipment serving advanced mobility and advanced packaging applications, having implemented actions in Q1 and Q2 FY2024 to reduce structural costs by approximately $6 million annually and align product pricing, aiming to significantly improve results and enhance profitability through market cycles, though operating results are subject to timing of orders, shipments, logistical challenges, semiconductor market cycles, and Renminbi exchange rate fluctuations - Confidence in strong future prospects for both consumables and equipment serving advanced mobility and advanced packaging applications[12](index=12&type=chunk) - Actions taken during Q1 and Q2 FY2024 will reduce Amtech's structural costs by approximately **$6 million** annually and better align product pricing with value, expected to significantly improve results and enhance profitability[12](index=12&type=chunk) - Operating results can be significantly impacted by the timing of orders, system shipments, logistical challenges, financial results of semiconductor manufacturers, and cyclical changes in market demand. Changes in the value of the Renminbi could also cause actual results to differ from expectations[11](index=11&type=chunk)[13](index=13&type=chunk) [Corporate Information](index=4&type=section&id=Corporate%20Information) This section provides an overview of Amtech Systems, Inc., details regarding its Q2 fiscal results conference call, and a cautionary note on forward-looking statements [About Amtech Systems, Inc.](index=4&type=section&id=About%20Amtech%20Systems%2C%20Inc.) Amtech Systems, Inc. is a global manufacturer of thermal processing, wafer cleaning, and chemical mechanical polishing (CMP) capital equipment and related consumables, serving semiconductor, advanced mobility, and renewable energy manufacturing applications, with a strategic focus on growth opportunities in thermal and substrate processing, under key brands including BTU International, Entrepix, Inc., PR Hoffman™, and Intersurface Dynamics, Inc. - Amtech Systems, Inc. is a leading, global manufacturer of thermal processing, wafer cleaning and chemical mechanical polishing (CMP) capital equipment and related consumables[15](index=15&type=chunk) - Products are used in semiconductor, advanced mobility and renewable energy manufacturing applications[15](index=15&type=chunk) - Strategic focus is on growth opportunities which leverage strengths in thermal and substrate processing, recognized under brand names BTU International, Entrepix, Inc., PR Hoffman™ and Intersurface Dynamics, Inc.[15](index=15&type=chunk) [Conference Call Details](index=4&type=section&id=Conference%20Call%20Details) Amtech Systems hosted a conference call on May 8, 2024, at 5:00 pm ET to discuss Q2 fiscal results, with details for dialing in and accessing the live webcast and replay provided - Amtech Systems hosted a conference call on Wednesday, May 8, 2024, at 5:00 pm ET to discuss fiscal second quarter financial results[14](index=14&type=chunk) - A live webcast of the conference call was available in the Investor Relations section of Amtech's website[14](index=14&type=chunk) - A replay of the webcast will be available for approximately 30 calendar days[14](index=14&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) The press release contains forward-looking statements regarding future financial results, business strategies, and operational objectives, which are not guarantees of future performance and involve risks, uncertainties, and assumptions, as detailed in the company's SEC filings (Form 10-K and 10-Qs), with the company undertaking no obligation to update these statements - All statements in this press release, other than statements of historical fact, are identified as 'forward-looking statements'[16](index=16&type=chunk) - Examples include statements regarding Amtech's future financial results, operating results, business strategies, and efforts to improve operational efficiencies[16](index=16&type=chunk) - These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict, as detailed in the Company's Form 10-K and subsequently filed Quarterly Reports on Form 10-Qs[16](index=16&type=chunk)[17](index=17&type=chunk) [Detailed Financial Schedules](index=6&type=section&id=Detailed%20Financial%20Schedules) This section provides comprehensive unaudited consolidated financial statements, including statements of operations, balance sheets, cash flows, and GAAP to Non-GAAP reconciliations [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) This section presents the unaudited consolidated statements of operations for the three and six months ended March 31, 2024, and 2023, detailing revenues, cost of sales, gross profit, operating expenses, and net income (loss) | Metric (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Six Months Ended March 31, 2024 | Six Months Ended March 31, 2023 | | :-------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Revenues, net | $25,433 | $33,310 | $50,353 | $54,868 | | Cost of sales | $16,982 | $19,840 | $32,834 | $33,095 | | Gross profit | $8,451 | $13,470 | $16,670 | $21,773 | | Selling, general and administrative | $8,252 | $11,434 | $16,819 | $20,624 | | Research, development and engineering | $921 | $1,517 | $2,509 | $2,910 | | Operating income (loss) | $1,363 | $519 | ($7,571) | ($2,161) | | Net income (loss) | $970 | $3,204 | ($8,388) | $460 | | Net income (loss) per diluted share | $0.07 | $0.23 | ($0.59) | $0.03 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) This section provides the unaudited consolidated balance sheets as of March 31, 2024, and September 30, 2023, outlining assets, liabilities, and shareholders' equity | Metric (in thousands) | March 31, 2024 | September 30, 2023 | | :-------------------- | :------------- | :----------------- | | Total Current Assets | $70,299 | $81,189 | | Property, Plant and Equipment - Net | $9,476 | $9,695 | | Intangible Assets - Net | $4,352 | $6,114 | | Goodwill | $21,261 | $27,631 | | Total Assets | $116,474 | $137,021 | | Total Current Liabilities | $25,914 | $29,718 | | Finance Lease Liabilities and Long-Term Debt | $65 | $8,422 | | Total Liabilities | $35,583 | $48,656 | | Total Shareholders' Equity | $80,891 | $88,365 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section presents the unaudited consolidated statements of cash flows for the six months ended March 31, 2024, and 2023, detailing cash flows from operating, investing, and financing activities | Cash Flow Activity (in thousands) | Six Months 2024 | Six Months 2023 | | :-------------------------------- | :-------------- | :-------------- | | Net cash provided by (used in) operating activities | $5,307 | ($5,327) | | Net provided by (used in) investing activities | $724 | ($36,474) | | Net cash (used in) provided by financing activities | ($6,385) | $11,919 | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | $221 | $741 | | Net Decrease in Cash and Cash Equivalents | ($133) | ($29,141) | | Cash and Cash Equivalents, End of Period | $13,000 | $17,733 | [GAAP to Non-GAAP Reconciliations](index=10&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) This section provides detailed reconciliations of GAAP to Non-GAAP financial measures for gross profit, operating income (loss), and net income (loss) for Amtech Systems, Inc. and its segments, with Non-GAAP adjustments excluding items such as stock compensation, severance, acquisition expenses, intangible asset impairment, and gain on sale of assets GAAP Gross Profit Reconciliation | Metric (in thousands) | Q2 FY2024 | Q1 FY2024 | Q2 FY2023 | | :-------------------- | :-------- | :-------- | :-------- | | GAAP gross profit | $8,451 | $8,219 | $13,470 | | Write-down of inventory related to polishing equipment | $175 | $273 | - | | Intangible asset impairment | - | $849 | - | | Non-GAAP gross profit | $8,626 | $9,341 | $13,470 | GAAP Operating Income (Loss) Reconciliation | Metric (in thousands) | Q2 FY2024 | Q1 FY2024 | Q2 FY2023 | | :-------------------- | :-------- | :-------- | :-------- | | GAAP operating income (loss) | $1,363 | ($8,934) | $519 | | Gain on sale of fixed assets | ($2,197) | - | - | | Goodwill impairment | - | $6,370 | - | | Non-GAAP operating income (loss) | $188 | ($210) | $3,162 | GAAP Net Income (Loss) Reconciliation | Metric (in thousands) | Q2 FY2024 | Q1 FY2024 | Q2 FY2023 | | :-------------------- | :-------- | :-------- | :-------- | | GAAP net income (loss) | $970 | ($9,358) | $3,204 | | Gain on sale of fixed assets | ($2,197) | - | - | | Goodwill impairment | - | $6,370 | - | | Non-GAAP net (loss) income | ($205) | ($634) | $2,683 | [EBITDA and Adjusted EBITDA Reconciliation](index=13&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation) This section provides a reconciliation of GAAP net income (loss) to EBITDA and Adjusted EBITDA for the three and six months ended March 31, 2024, with Adjusted EBITDA including adjustments for items such as gain on sale of fixed assets, building move expense, inventory write-down, stock compensation, goodwill impairment, intangible asset impairment, and severance expense EBITDA and Adjusted EBITDA Reconciliation Table | Metric (in thousands) | Six Months Ended March 31, 2024 | | :-------------------- | :------------------------------ | | GAAP net income (loss) | ($8,388) | | Interest income | ($33) | | Interest expense | $391 | | Income tax provision | $281 | | Depreciation and amortization expense | $1,572 | | EBITDA | ($6,177) | | Gain on sale of fixed assets | ($2,197) | | Building move expense | $231 | | Write-down of inventory related to polishing equipment | $448 | | Stock compensation expense | $667 | | Goodwill impairment | $6,370 | | Intangible asset impairment | $1,279 | | Severance expense | $310 | | Adjusted EBITDA | $931 |

Financial Data and Key Metrics - Revenue for Q1 2024 was $24.9 million, exceeding the high end of guidance and marking a 16% increase from Q1 2023 [6][13] - Adjusted EBITDA improved to $0.2 million, a significant turnaround from a $2.4 million loss in the prior quarter [6] - GAAP net loss for Q1 2024 was $9.4 million ($0.66 per share), compared to a $12 million loss ($0.85 per share) in Q4 2023 and a $2.7 million loss ($0.20 per share) in Q1 2023 [17] - Unrestricted cash and cash equivalents increased by $4 million to $17 million during the quarter [18] Business Segment Performance - Revenue decreased 10% sequentially due to lower equipment shipments across business segments, driven by softness in the semiconductor market [13] - Belt furnace shipments and the addition of Entrepix contributed to the year-over-year revenue increase, partially offset by lower reflow equipment shipments [13] - The Material & Substrates segment recorded a non-cash impairment charge of $7.6 million, with $0.8 million impacting gross profit [15] Market Performance - Semiconductor market demand remains mixed, with softness in wafer fabrication and back-end packaging equipment, but resilience in submarkets related to hybrid and electric vehicles [7] - Demand for consumables used in silicon carbide semiconductor production is improving, with strong demand for high-end belt furnaces and diffusion furnaces [8] Strategic Direction and Industry Competition - The company is focused on operational optimization, achieving $6 million in annualized cost savings through restructuring and strategic contract manufacturing partnerships [6][9] - Plans to relocate a US manufacturing facility to a smaller, more cost-effective site in Q3 2024 to reduce fixed expenses while maintaining production capabilities [10] - Pricing strategy adjustments are being implemented to align with rising input costs, with promising progress in new tool quotations [10] Management Commentary on Operating Environment and Outlook - Management expects Q2 2024 revenue to range between $22 million and $25 million, with EBITDA nominally negative to neutral [20] - Long-term growth is anticipated in AI-related infrastructure and global supply chain diversification, driving demand for back-end equipment and silicon carbide wafer production [12] - The company remains confident in the future prospects of its consumables and equipment businesses, particularly in advanced mobility and packaging applications [20] Other Important Information - SG&A expenses decreased by $2.5 million sequentially and $0.6 million year-over-year, driven by lower acquisition expenses, consulting fees, and intangible amortization [16] - Research, development, and engineering expenses decreased by $1 million sequentially due to reduced investment in next-generation polishing tools [16] - Debt restructuring in December 2023 increased the revolver capacity to $14 million, with $5.6 million transferred from the term loan [18] Q&A Session Summary Question: Backlog and Pipeline Outlook - The backlog is strong, particularly in power semiconductor packaging and silicon carbide wafer production, with expectations of increased activity in silicon carbide manufacturing capital equipment over the next 1-2 years [24][26] - A recovery in the back-end and advanced packaging segments is anticipated as the industry digests existing capacity [27] Question: Cost Savings and Demand Response - The $6 million in annualized cost savings will be fully realized by Q2 2024, with $4 million impacting the current quarter and the remaining $2 million lagging slightly [29] - Restructuring efforts, including strategic contract manufacturing partnerships, are designed to maintain scalability and readiness for market rebound without compromising growth [30] Question: Working Capital and Balance Sheet Adjustments - The company expects working capital to fluctuate as it executes its $50 million backlog and relocates a manufacturing facility, with continued focus on optimizing working capital and leveraging partner buying power [32] Question: Financial Covenants and Pricing Strategy - The company is in compliance with revised financial covenants, exceeding the required EBITDA threshold [36] - Pricing strategy adjustments have been well-received, with updated pricing models expected to improve margins as the backlog is replenished [38]

Amtech Systems (ASYS) came out with a quarterly loss of $0.04 per share versus the Zacks Consensus Estimate of a loss of $0.12. This compares to loss of $0.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 66.67%. A quarter ago, it was expected that this provider of equipment for solar panel and semiconductor makers would post earnings of $0.09 per share when it actually produced a loss of $0.18, delivering a surprise of -300 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ________________ Commission File Number: 0-11412 AMTECH SYSTEMS, INC. (Exact name of registrant as specified in its charter) | Arizona ...

Financial Performance - Net revenue for Q1 FY2024 was $24.9 million, a 10% sequential decrease but a 16% increase compared to Q1 FY2023 [2][5] - GAAP operating loss was $8.9 million, including $7.6 million in non-cash impairment charges due to market value decline [2][6] - Non-GAAP operating loss improved to $0.2 million, compared to $3.0 million in Q4 FY2023 and $0.7 million in Q1 FY2023 [2][8] - GAAP net loss was $9.4 million ($0.66 per share), while Non-GAAP net loss was $0.6 million ($0.04 per share) [2][8] Operational Highlights - Customer orders totaled $23.1 million with a book-to-bill ratio of 0.9:1 [2] - Backlog stood at $50.0 million at the end of Q1 FY2024 [2] - Achieved $6 million in annualized cost savings through operational optimization [3] - Unrestricted cash and cash equivalents increased to $17.0 million from $13.1 million in the previous quarter [9] Segment Performance - Semiconductor segment revenue was $17.5 million with GAAP gross margin of 35% [17] - Material and Substrate segment revenue was $7.4 million with GAAP gross margin of 28% [17] - Semiconductor segment backlog was $44.8 million, while Material and Substrate segment backlog was $5.1 million [17] Market and Industry Context - Revenue decrease attributed to softness in the semiconductor market, particularly in equipment shipments [5] - Increase from prior year driven by higher belt furnace shipments and Entrepix acquisition [5] - Company expects Q2 FY2024 revenue between $22-25 million with EBITDA ranging from nominally negative to neutral [11] Strategic Initiatives - Focused on operational optimization and cost structure improvement [3] - Implementing strategic actions to enhance operational efficiency and shareholder value [3] - Aligning product pricing with value to improve profitability through market cycles [12]

Core Viewpoint - Amtech Systems, Inc. will announce its first quarter 2024 financial results on February 9, 2024, after market close, with a conference call scheduled for February 12, 2024, to discuss the results and current business conditions [1]. Company Overview - Amtech Systems, Inc. is a global manufacturer specializing in thermal processing, wafer cleaning, and chemical mechanical polishing (CMP) capital equipment, along with related consumables for semiconductor, advanced mobility, and renewable energy manufacturing applications [3]. - The company provides process equipment and services for semiconductor device fabrication, particularly focusing on silicon carbide (SiC) and silicon power, serving manufacturers worldwide, especially in Asia, North America, and Europe [3]. - Amtech's products are marketed under well-known brand names such as BTU International, Entrepix, Inc., PR Hoffman™, and Intersurface Dynamics, Inc. [3].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 0-11412 AMTECH SYSTEMS, INC. (Exact name of registrant as specified in its charter) | --- | --- | --- | --- | --- | |----------------- ...

Financial Data and Key Metrics Changes - The company closed fiscal 2023 with revenues of $113.3 million, an increase from $106.3 million in fiscal 2022, attributed to the acquisition of Entrepix [15] - Quarterly net revenues decreased 10% sequentially and 14% year-over-year, primarily due to lower shipments from the Shanghai facility [16] - Unrestricted cash and cash equivalents were $13.1 million as of September 30, 2023, down from $14.3 million at June 30, 2023 [17] Business Line Data and Key Metrics Changes - The advanced packaging and electronic assembly business has been significantly impacted by the semiconductor market slowdown, but tools remain highly regarded [9] - The company plans to cease manufacturing legacy polishing machines due to limited market fit, while continuing to provide access to newer technologies through Entrepix [10][11] Market Data and Key Metrics Changes - The semiconductor market is experiencing a prolonged downturn, affecting demand across multiple business segments [16][18] - The company anticipates an intangible asset impairment charge in the material and substrate segment due to economic conditions [17] Company Strategy and Development Direction - The company is focusing on areas with strong differentiation, including advanced packaging, electronic assembly, and EV battery cooling systems [9] - A long-term target model of $180 million in annual revenue with 18% EBITDA margins has been established, emphasizing the importance of operational optimization and potential inorganic investments [14] Management Comments on Operating Environment and Future Outlook - Management acknowledges the challenging demand environment and is implementing fixed cost reductions to achieve EBITDA breakeven [18] - The outlook for the first fiscal quarter is expected to yield revenues between $21 million and $24 million, with nominally negative EBITDA [20] Other Important Information - The company has entered into a forbearance agreement with its bank to manage cash flow during the downturn [18] - Actions taken are expected to decrease annual operating expenses by $4 million for fiscal 2024 [19] Q&A Session Summary Question: Recent forbearance agreement details - The company confirmed the reduction of the term loan size and the movement of the balance to a larger revolver [23][24] Question: Reason for the timing of the forbearance agreement - The timing aligned with Q4 results, allowing for lower monthly term payments and increased access to the revolver [24] Question: Backlog status and potential cancellations - There have been no cancellations, only customer push-outs, and efforts are being made to ship backlog orders [27][28]

Amtech Systems, Inc. (NASDAQ:ASYS) Q3 2023 Earnings Conference Call August 9, 2023 5:00 PM ET Company Participants Erica Mannion - Sapphire, Investor Relations Bob Daigle - Chairman & Chief Executive Officer Paul Lancaster - Vice President, Sales & Customer Service Lisa Gibbs - Chief Financial Officer Conference Call Participants Mark Miller - Benchmark Kevin Garrigan - Westpark Capital Operator Good day and welcome to the Amtech Systems Third Quarter Fiscal 2023 Earnings Conference Call. Please note that t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ________________ Commission File Number: 0-11412 AMTECH SYSTEMS, INC. (Exact name of registrant as specified in its charter) | --- | --- | ...