Core Insights - Amtech Systems (ASYS) is set to report its first-quarter fiscal 2026 results on February 5, with anticipated revenues between $18 million and $20 million, and a Zacks Consensus Estimate of $19 million, reflecting a 22.1% decline from the previous year [1][9]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for earnings is 7 cents per share, unchanged over the past 30 days, compared to 6 cents per share in the same quarter last year [2]. - Amtech has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 32.1% [2]. Growth Opportunities - Advanced packaging is identified as a significant growth opportunity, particularly in AI infrastructure, with a noted increase in demand for related equipment [3]. - In the fourth quarter of fiscal 2025, AI infrastructure equipment sales accounted for approximately 30% of Thermal Processing Solutions' revenues, up from 25% in the previous quarter, indicating a rapid growth in AI demand [4]. Operational Efficiency - The company has made significant strides in restructuring operations to enhance cost efficiency, reducing its manufacturing sites from seven to four and shifting some production to partners [5]. - The adoption of a semi-fabless manufacturing model has led to $13 million in annual savings, which is expected to positively impact margins in the upcoming quarter [6]. Market Challenges - Despite the positive developments, Amtech continues to face challenges due to weak demand in its mature node semiconductor business, which has negatively impacted revenues from front-end equipment and consumables [7]. - The ongoing weakness in mature node demand is anticipated to offset the benefits from the growth in AI-related equipment and cost-cutting measures [7]. Earnings Prediction Model - The current model does not predict a definitive earnings beat for Amtech this season, as it lacks a positive Earnings ESP despite holding a Zacks Rank of 1 [8][10].

Core Viewpoint - Amtech Systems, Inc. will announce its financial results for the first quarter of fiscal 2026 on February 5, 2026, after market close [1] Group 1: Financial Results Announcement - The financial results will cover the first quarter ended December 31, 2025 [1] - A conference call will be held at 5:00 pm ET on February 5, 2026, to discuss these results [1] - The call will be accessible to interested parties [1]

Core Viewpoint - Amtech Systems (ASYS) shares experienced an 8.1% increase, closing at $15.94, driven by notable trading volume and a 15.5% gain over the past four weeks [1][2]. Group 1: Company Performance - The optimism surrounding Amtech is linked to strong demand for AI-driven equipment, increased exposure to advanced packaging, a higher-margin recurring revenue mix, improved operating leverage from cost reductions, and a debt-free balance sheet [2]. - Amtech is projected to report quarterly earnings of $0.07 per share, reflecting a year-over-year increase of 16.7%, while revenues are expected to be $19 million, a decrease of 22.1% from the previous year [3]. Group 2: Earnings Estimates and Stock Trends - The consensus EPS estimate for Amtech has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [5]. - Amtech currently holds a Zacks Rank of 1 (Strong Buy), suggesting strong potential for future performance [5].

Industry Overview - The semiconductor industry's global sales experienced a 3.5% month-over-month increase and a remarkable 29.8% year-over-year growth in November 2025, marking the highest monthly sales in the industry's history [2] - Strong demand for chips in sectors such as artificial intelligence (AI), cloud computing, high-performance computing (HPC), quantum computing, and advanced consumer electronics is driving growth [3] Sales Projections - The World Semiconductor Trade Statistics (WSTS) projects a 26.3% increase in semiconductor sales for 2026, reaching $975.4 billion, revised from a previous estimate of $760.7 billion [7] - For 2025, semiconductor sales are expected to rise by 22.5% over 2024, reaching $772.2 billion [7] Equipment Sales - Global sales of semiconductor manufacturing equipment are anticipated to grow by 13.7% year-over-year to $133 billion in 2025, with projections of $145 billion for 2026 and $156 billion for 2027 [8] AI and Infrastructure Spending - Spending on AI infrastructure is expected to accelerate, with Wall Street analysts estimating capital spending for AI hyperscalers to reach $527 billion in 2026 [10] - IDC projects AI infrastructure spending to hit $758 billion by 2029, with accelerated servers expected to account for over 95% of this spending, indicating a 42% five-year CAGR [10] Company Highlights NVIDIA - NVIDIA holds a Zacks Rank 1 and a Growth Score of B, benefiting from strong demand for its Hopper and Blackwell platforms, with expected revenues of $0.5 trillion from these platforms by the end of 2026 [11] - The Zacks Consensus Estimate for NVIDIA's fiscal 2026 earnings has been revised upward by 4.5% to $4.66 per share, reflecting a 56% increase from fiscal 2025 [12] Micron Technology - Micron Technology also holds a Zacks Rank 1 and a Growth Score of A, with fiscal 2026 earnings consensus rising 93.3% to $31.36 per share [15] - The company is capitalizing on the AI boom, focusing on next-generation DRAM and 3D NAND to meet the demand for memory chips [16] Credo Technology - Credo Technology has a Zacks Rank 1 and a Growth Score of B, with fiscal 2026 earnings estimates increasing by 36.3% to $2.78 per share [19] - The company is benefiting from strong demand for high-speed, energy-efficient data center connectivity solutions, particularly in the active electrical cables segment [20] Amtech Systems - Amtech Systems holds a Zacks Rank 1 and a Growth Score of A, with fiscal 2026 earnings estimates jumping 186.7% to 43 cents per share [22] - The company is experiencing robust demand for advanced semiconductor packaging and has implemented cost reduction initiatives that have resulted in $13 million of annualized savings [24]

Core Insights - Amtech Systems (ASYS) is a semiconductor equipment manufacturer with approximately three decades of experience in providing manufacturing solutions to the semiconductor industry [1] - The company's primary expertise is in heat management equipment, which constitutes 70% of its sales [1] Company Overview - Amtech Systems has been operating in the semiconductor sector for around 30 years, focusing on manufacturing solutions [1] - The company specializes in heat management equipment, indicating a strong position in a critical area of semiconductor production [1]

Group 1: Amtech Systems, Inc. (ASYS) - Amtech is a manufacturer of essential equipment and consumables for the semiconductor and automotive industries with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for Amtech's current year earnings has increased by 186.7% over the last 60 days [1] - Amtech's shares have gained 25% over the last three months, outperforming the S&P 500's advance of 2.4% [1] - The company has a Momentum Score of A [1] Group 2: Allot Ltd. (ALLT) - Allot is a provider of security solutions and network intelligence solutions with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for Allot's current year earnings has increased by 57.1% over the last 60 days [2] - Allot's shares have gained 4.4% over the past month, compared to the S&P 500's advance of 2.4% [2] - The company has a Momentum Score of A [2] Group 3: Amphenol Corporation (APH) - Amphenol designs and manufactures electronic connectors, interconnect systems, and sensors for various global industries with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for Amphenol's current year earnings has increased by 8.6% over the last 60 days [3] - Amphenol's shares have gained 5.7% over the last three months, also outperforming the S&P 500's advance of 2.4% [3] - The company has a Momentum Score of B [3]

Core Insights - Amtech Systems (ASYS) shares increased by 5.6% after reporting better-than-expected earnings for Q4 fiscal 2025, with EPS of 10 cents compared to break-even earnings in the same quarter last year, while the Zacks Consensus Estimate was a loss of 3 cents per share [1][9] Financial Performance - ASYS reported net revenues of $19.84 million for Q4, a decrease of 17.7% year-over-year, but exceeded the Zacks Consensus Estimate by 16.7% [2][9] - The company's Thermal Processing Solutions sales were $14.59 million, accounting for 73.5% of total revenue, down 9.7% from the previous year [3] - Semiconductor Fabrication Solutions revenues were $5.25 million, representing 26.5% of total revenue, down 34% year-over-year [3] - Non-GAAP gross margin improved to 44.4%, an increase of 370 basis points from the year-ago quarter [3] - Adjusted EBITDA for the quarter was $2.64 million, significantly up from $0.8 million in the same quarter last year [4] Balance Sheet - As of September 30, 2025, cash and cash equivalents were $17.91 million, an increase from $15.56 million as of June 30, 2025 [5] Future Guidance - For Q1 fiscal 2026, ASYS expects revenues between $18 million and $20 million, with the Zacks Consensus Estimate at $19 million, indicating a year-over-year decrease of 22.1% [6] - The company anticipates adjusted EBITDA margins to remain in the high single digits [6] - The Zacks Consensus Estimate for Q1 fiscal 2026 projects a loss per share of 2 cents, compared to earnings of 6 cents per share in the same quarter last year [7]

Financial Data and Key Metrics Changes - The company reported fourth-quarter revenue of $19.8 million, exceeding guidance of $17-$19 million, driven by strong demand for AI-related equipment [3][4] - Adjusted EBITDA was $2.6 million, approximately 13% of revenue, surpassing mid-single-digit expectations [3] - GAAP net income for the fourth quarter was $1.1 million, or $0.07 per share, compared to a net income of $0.1 million, or $0.01 per share in the previous quarter [13] Business Line Data and Key Metrics Changes - Revenue from thermal processing solutions saw a significant increase, with AI infrastructure equipment accounting for over 30% of this segment's revenue, up from 25% in the prior quarter [4][5] - The semiconductor fabrication solutions segment experienced weak demand for front-end equipment, but performance slightly exceeded expectations [6] - The revenue mix consisted of approximately 60% from capital equipment and 40% from recurring revenues, indicating a strategic focus on higher-margin recurring revenue streams [5][11] Market Data and Key Metrics Changes - Demand for AI-related equipment remains strong, with no signs of slowdown in this area [5] - The company noted that the automotive market remains soft, particularly among Western OEMs, despite better sales in China [40] Company Strategy and Development Direction - The company is focused on expanding its higher-margin recurring revenue streams while capitalizing on AI infrastructure opportunities [5][8] - Cost reduction initiatives have resulted in $13 million of annualized savings, improving the company's operating model and cost structure [7][8] - A share repurchase program of up to $5 million has been authorized, reflecting confidence in the company's financial position and growth prospects [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued strength in AI-related equipment revenue, supported by fourth-quarter bookings [5][14] - The company anticipates revenue in the range of $18-$20 million for the first quarter of fiscal 2026, with solid operating leverage expected [14][15] - Management acknowledged the cyclical nature of the semiconductor equipment industry and the potential impact of market demand fluctuations [15] Other Important Information - The CFO announced resignation effective December 29, 2025, with plans to assist in the transition [16][17] - The company is actively searching for a new CFO [33] Q&A Session Summary Question: Visibility with AI customers and backlog trends - Management noted strong demand and visibility, with most equipment being booked and shipped within the same quarter [21][22] Question: Sublet savings from underutilized facilities - Expected annualized savings from subletting underutilized facilities are estimated to be between $700,000 and $1 million [24] Question: New applications for silicon carbide - Management indicated that potential growth in silicon carbide applications is more likely to translate into consumables rather than direct equipment sales [26][27] Question: Opportunities in the service area - The company is focusing on high-value niche opportunities in medical and defense sectors, leveraging foundry services for recurring revenue [31][32] Question: Update on CFO search - The search for a new CFO has just begun, with updates to be provided as progress is made [33] Question: Margin profile of existing backlog - The backlog has been cleaned up to consist of high-quality, high-margin products [38] Question: Automotive market performance - The company’s exposure is primarily to Western OEMs, which explains the softness in the automotive sector [40]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $19.8 million, exceeding guidance of $17-$19 million, driven by strong demand for AI-related equipment [5][13] - Adjusted EBITDA was $2.6 million, approximately 13% of revenue, surpassing mid-single-digit expectations [5] - GAAP net income for Q4 2025 was $1.1 million, or $0.07 per share, compared to a net income of $0.1 million, or $0.01 per share in the previous quarter [16] Business Line Data and Key Metrics Changes - Thermal processing solutions segment saw over 30% of revenue from AI infrastructure equipment, up from 25% in the prior quarter [6] - Semiconductor fabrication solutions segment slightly exceeded expectations despite weak demand for mature node applications [9] - Revenue mix consisted of approximately 60% from capital equipment and 40% from recurring revenues [7][36] Market Data and Key Metrics Changes - Strong demand in Asia for reflow ovens used in AI applications contributed to sequential revenue increase [13] - Mature node semiconductor revenues declined significantly, impacting overall revenue compared to the same period last year [13] Company Strategy and Development Direction - The company is focusing on expanding higher-margin recurring revenue streams while capitalizing on AI infrastructure opportunities [8][11] - Cost reduction initiatives have resulted in $13 million of annualized savings, improving operational efficiency [10] - A share repurchase program of up to $5 million has been authorized to return capital to shareholders while investing in growth [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strength for AI-related equipment revenue based on fourth quarter bookings [8] - The company anticipates revenue in the range of $18-$20 million for Q1 2026, with expectations for solid operating leverage [17][18] - Management acknowledged the cyclical nature of the semiconductor equipment industry and its impact on revenue [18] Other Important Information - The CFO announced resignation effective December 29, 2025, with plans to assist in the transition [19][20] - The company is targeting high-end, high-margin applications in medtech and defense markets to develop recurring revenue streams [10] Q&A Session Summary Question: Visibility with AI customers and backlog trends - Management noted strong demand and visibility, with most equipment being booked and shipped within the same quarter [23][24] Question: Savings from subletting underutilized facilities - Expected annualized savings from subletting underutilized facilities are estimated at $700,000-$1 million [26] Question: New applications for silicon carbide - Management indicated potential growth in silicon carbide for power electronics in data centers, but noted that substrate applications for AI chips are still in early stages [27][30] Question: Opportunities in the service area - Focus is on high-value niche opportunities in medical and defense sectors, leveraging foundry services for recurring revenue [32] Question: Margin profile of existing backlog - Management confirmed that the backlog has been cleaned up, with a focus on high-quality, high-margin products [37] Question: Impact of auto industry trends - Management clarified that their exposure is primarily to Western OEMs, which have been soft, despite better EV sales in China [38] Question: Competitive landscape in thermal area - No significant changes in the competitive landscape were noted [46]

Financial Performance - Net revenue for Q4 FY 2025 was $19.8 million, a slight increase from $19.6 million in Q3 FY 2025[5] - GAAP net income for Q4 FY 2025 was $1.1 million, or $0.07 per share, compared to $0.1 million, or $0.01 per share in Q3 FY 2025[12] - Non-GAAP net income for Q4 FY 2025 was $1.4 million, or $0.10 per share, up from $0.9 million, or $0.06 per share in Q3 FY 2025[13] - Adjusted EBITDA for Q4 FY 2025 was $2.6 million, with adjusted EBITDA margins above 10%[5][4] - Revenues for the three months ended September 30, 2025, were $19,842,000, a decrease of 17.8% compared to $24,112,000 for the same period in 2024[28] - GAAP gross profit for the three months ended September 30, 2025, was $8,813,000, resulting in a gross margin of 44%, compared to 41% in the same period of 2024[28] - Operating income for the three months ended September 30, 2025, was $1,841,000, a significant improvement from an operating loss of $28,488,000 for the year ended September 30, 2024[29] - Adjusted EBITDA for the year ended September 30, 2025, was $5,375,000, showing recovery from a loss of $25,463,000 in the previous year[34] Cash Flow and Assets - Cash provided by operations for FY 2025 was $2.3 million, with total cash at $17.9 million, up from $11 million at the end of the previous year[5][14] - Cash and cash equivalents increased to $17,904,000 as of September 30, 2025, from $11,086,000 in the previous year[30] - Total assets decreased to $92,873,000 as of September 30, 2025, from $119,313,000 in 2024[30] - Total shareholders' equity decreased to $53,385,000 as of September 30, 2025, from $82,358,000 in 2024[30] Orders and Backlog - Customer orders for the quarter totaled $18.5 million, with a backlog of $19.9 million[5] - New orders for the three months ended September 30, 2025, totaled $18,514,000, compared to $17,587,000 in the same period of 2024[28] - The backlog as of September 30, 2025, was $19,889,000, down from $25,312,000 in the previous year[28] Inventory and Write-downs - The company reported a write-down of inventory amounting to $6,550,000 for the year ended September 30, 2025[31] - The company reported a write-down of inventory related to mature node semiconductor products amounting to $5,986,000 for the year ended September 30, 2025[33] Future Outlook - For Q1 FY 2026, the company expects revenues in the range of $18 to $20 million, driven by AI-related equipment sales[17] - The company aims to achieve adjusted EBITDA margins in the high single digits for the upcoming quarter, focusing on operational efficiency and cost optimization[17] - The company announced a $5 million share repurchase authorization effective December 10, 2025[19] Impairments and Expenses - The company incurred a goodwill impairment of $20,353,000 for the year ended September 30, 2025, reflecting challenges in asset valuation[34] - Stock compensation expense for Q3 2025 was $268,000, compared to $338,000 in Q2 2025 and $375,000 in Q3 2024, indicating cost management efforts[33] Gross Profit and Margins - GAAP gross profit for Q3 2025 was $8,813,000, a decrease from $9,132,000 in Q2 2025 and $9,803,000 in Q3 2024[32] - Non-GAAP gross profit for Q3 2025 was $8,813,000, compared to $9,132,000 in Q2 2025 and $9,803,000 in Q3 2024, indicating a consistent performance[32] - GAAP gross margin for Q3 2025 was 44%, down from 47% in Q2 2025 but up from 41% in Q3 2024[32] - Non-GAAP gross margin for Q3 2025 was also 44%, consistent with Q2 2025 and an increase from 41% in Q3 2024[32]