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]

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]

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]

Financial Performance - Net revenue for Q1 FY 2025 was $24.4 million, a 1% increase sequentially from Q4 FY 2024 and a 2% decrease from Q1 FY 2024[6]. - Adjusted EBITDA for Q1 FY 2025 was $1.9 million, reflecting a $1.8 million year-over-year increase[5]. - GAAP net income for Q1 FY 2025 was $0.3 million, or $0.02 per share, compared to a net loss of $0.5 million in Q4 FY 2024 and a loss of $9.4 million in Q1 FY 2024[12]. - Revenue for the three months ended December 31, 2024, was $24.385 million, a slight decrease from $24.920 million in the same period of 2023, representing a decline of approximately 2.1%[26]. - The company reported a net loss of $0.312 million for the three months ended December 31, 2024, compared to a net loss of $0.358 million in the same period of 2023[26]. - For the three months ended December 31, 2024, Amtech Systems reported a net income of $312,000, a significant improvement compared to a net loss of $9,358,000 in the same period of 2023[28]. - Non-GAAP net income for the three months ended December 31, 2024, was $826,000, compared to a loss of $634,000 in the same period of 2023[30]. Cash and Liquidity - Unrestricted cash and cash equivalents increased to $13.2 million as of December 31, 2024, up from $11.1 million at September 30, 2024[14]. - Cash and cash equivalents at the end of the period were $13,214,000, down from $17,033,000 at the end of December 2023[28]. - The company experienced a net cash provided by operating activities of $2,867,000, a decrease from $4,971,000 in the prior year[28]. - Cash and cash equivalents increased to $13.214 million from $11.086 million, reflecting a growth of approximately 19.2%[27]. Expenses and Cost Management - SG&A expenses decreased by $0.7 million sequentially and $0.5 million year-over-year, primarily due to fixed cost reductions[10]. - Research, Development and Engineering expenses decreased by $0.1 million sequentially and $0.7 million year-over-year, attributed to timing of project-related purchases[11]. - The company continues to focus on operational excellence and cost optimization initiatives to enhance profitability through market cycles[5]. Assets and Liabilities - Total current assets as of December 31, 2024, were $64.267 million, slightly down from $64.376 million at September 30, 2024[27]. - Total liabilities decreased to $35.334 million from $36.595 million, showing a reduction of about 3.5%[27]. - Shareholders' equity increased to $82.442 million from $82.358 million, indicating a growth of approximately 0.1%[27]. - Accounts receivable decreased to $20.822 million from $21.989 million, a decline of about 5.3%[27]. - Inventories decreased to $25.611 million from $26.867 million, reflecting a decrease of approximately 4.7%[27]. - The company maintained goodwill at $21.261 million, unchanged from the previous quarter[27]. Segment Performance - The Semiconductor Fabrication Solutions Segment reported a GAAP gross profit of $2,034,000, with a gross margin of 36%[29]. - The Thermal Processing Solutions Segment achieved a GAAP gross profit of $7,329,000, with a gross margin of 39%[29]. - GAAP gross margin for Q1 FY 2025 was 38.4%, compared to 40.7% in Q4 FY 2024 and 33.0% in Q1 FY 2024[7]. - The GAAP gross profit for the same period was $9,363,000, resulting in a gross margin of 38%, compared to a gross margin of 33% in December 2023[29]. Future Outlook - The company expects revenues for Q2 FY 2025 to be in the range of $21 million to $23 million, with adjusted EBITDA expected to be nominally positive[18].

Financial Performance - Total net revenue for the three months ended December 31, 2024, was $24.4 million, a decrease of approximately $0.5 million or 2% compared to $24.9 million in the same period of 2023[92] - Gross profit for the three months ended December 31, 2024, was $9.4 million, representing a gross margin of 38%, an increase from $8.2 million and 33% in the same period of 2023[95] - The company recognized no impairment of goodwill during the quarter ended December 31, 2024, compared to a goodwill impairment of $6.4 million in the same quarter of 2023[99] Orders and Backlog - New orders for the Thermal Processing Solutions segment decreased by 23% to $13.2 million for the three months ended December 31, 2024, down from $17.1 million in 2023[94] - Total backlog as of December 31, 2024, was $19.0 million, a decrease of 62% from $50.0 million in the same period of 2023[94] Expenses - Research, development, and engineering expenses for the three months ended December 31, 2024, were $0.9 million, down from $1.6 million in the same period of 2023[98] - Selling, general and administrative expenses decreased to $8.1 million for the three months ended December 31, 2024, compared to $8.6 million in the same period of 2023[96] Tax and Cash Flow - The effective tax rate for the three months ended December 31, 2024, was 58.8%, compared to (0.6%) in the same period of 2023[103] - Net cash provided by operating activities decreased to $2.9 million for the three months ended December 31, 2024, down from $5.0 million in the same period of 2023, reflecting a decline of approximately 42.0%[107] Cash Management - Cash used in investing activities was $0.1 million for the three months ended December 31, 2024, compared to $0.8 million in the same period of 2023, indicating a reduction of 87.5%[109] - Cash provided by financing activities was $0.1 million for the three months ended December 31, 2024, while cash used was $0.5 million in the same period of 2023, showing a shift from outflow to inflow[110] - Cash and cash equivalents increased by $2.1 million from September 30, 2024, totaling $13.2 million as of December 31, 2024, compared to $11.1 million at the beginning of the period[105] Working Capital and Liquidity - Working capital rose to $45.3 million as of December 31, 2024, up from $44.8 million on September 30, 2024, reflecting an increase of approximately 1.2%[105] - The current ratio improved to 3.4:1 as of December 31, 2024, compared to 3.3:1 on September 30, 2024, indicating a stronger liquidity position[105] Purchase Obligations and Strategic Plans - Unrecorded purchase obligations decreased to $7.9 million as of December 31, 2024, down from $12.1 million as of September 30, 2024, a decline of approximately 34.6%[112] - The company plans to reinvest cash from operating activities into strategic projects during periods of weakening demand[106] Corporate Actions - The company completed the sale of its corporate headquarters real property in Arizona, resulting in a net cash inflow of approximately $2.5 million[89] - The company continues to pursue acquisitions to supplement organic growth, with a focus on expanding operations outside of mainland China to enhance supply chain resiliency[88] Off-Balance Sheet Arrangements - There were no off-balance sheet arrangements as of December 31, 2024, that could materially affect the company's financial condition[111]

Industry Dynamics - The semiconductor equipment industry is highly cyclical and volatile, with demand and profitability subject to significant fluctuations due to various factors [100]. - The company faces intense competition from larger manufacturers with greater resources, which may hinder its ability to compete effectively [103]. - Competition from Asian suppliers presents challenges due to their lower operating costs and favorable government policies, impacting the company's market position [126]. - The company may encounter difficulties in managing business cycles, impacting its ability to capitalize on market opportunities [109]. - Uncertain global economic conditions, including slowing growth in major economies, may lead to reduced customer orders and negatively affect net sales and backlog [130]. Customer Concentration and Revenue Sources - As of September 30, 2024, one customer represented 12% of accounts receivable, indicating a concentration risk that could impact financial stability [120]. - In 2024, 59% of net revenue came from international customers, with Asia contributing 43% (including China at 20%) and Europe at 16% [125]. - The company relies on a limited number of customers and products, making it vulnerable to revenue fluctuations if major customers are lost [119]. Financial Risks and Management - The company terminated its existing credit facility in September 2024, raising concerns about future access to financing [105]. - The company actively monitors credit risk by requiring significant partial payments and letters of credit from certain customers [120]. - The company maintains cash deposits exceeding federally insured limits, which poses liquidity risks in the event of bank failures or adverse developments in financial institutions [140]. - The company is exposed to risks from currency fluctuations, which could materially affect future financial performance despite not having been significantly impacted in the past [129]. - The company is monitoring the impact of U.S. export control restrictions, particularly those affecting its operations in China, which could significantly harm its business if further restrictions are imposed [164]. Operational Challenges - Manufacturing interruptions or delays could lead to increased costs and affect the ability to meet customer demand [122]. - Inventory management is critical, as excess inventory could lead to obsolescence and reduced liquidity, while insufficient inventory may result in lost sales [131]. - The company relies on a diverse supplier base, but disruptions or quality issues from key suppliers could increase operating costs and impact product competitiveness [133]. Regulatory and Compliance Risks - Regulatory changes, particularly related to cybersecurity and climate disclosures, may increase compliance costs and legal risks for the company [146]. - The company is subject to various international laws and regulations, including anti-corruption laws, which could result in significant legal and financial consequences if violated [151]. - The company faces inherent risks related to anti-corruption and anti-bribery laws, which could expose it to liabilities for the actions of its employees and business partners [153]. - The company is subject to various environmental laws and regulations, which may result in material costs for compliance and liabilities for past contamination [156]. Product and Innovation Risks - The company must continually innovate to keep pace with rapid technological changes in the semiconductor industry, which requires significant investment in research and development [173]. - The company has made significant investments in its intellectual property, but faces risks from potential violations by third parties, which could lead to costly litigation [174]. - The company’s ability to protect its proprietary rights is challenged by the lengthy and costly patent process, and the expiration of certain patents may diminish its competitive advantage [176]. - Intellectual property infringement claims could lead to substantial damages, including treble damages if willful infringement is found, impacting the company's financial condition [179]. Shareholder and Governance Issues - Shareholder activists may disrupt business operations and increase costs related to legal and administrative expenses, potentially affecting strategic direction [185]. - Provisions in corporate governing documents may deter takeovers and limit shareholder influence over management changes, impacting corporate governance [187]. - Arizona law may further complicate business combinations with interested shareholders, potentially delaying changes in control [188]. - The company is electing scaled disclosure reporting obligations as a smaller reporting company, limiting the information provided about market risks [286]. Warranty and Product Reliability - As of September 30, 2024, the company's accrued warranty costs amounted to $0.6 million, down from $1.0 million in 2023, indicating potential concerns regarding product reliability [165]. - The company may face challenges in meeting customer demands for social and environmental responsibility, which could impact sales and operating results [170]. - The company has no reserves for potential environmental liabilities, which could result in significant future expenditures [158]. Market Volatility - The common stock price has experienced significant volatility, ranging from $11.98 to $3.37 over the two-year period ending September 30, 2024 [180]. - The company faces risks from speculation in the press and investment community, which can affect stock price due to competition and external factors like tariffs and pandemics [181].

Financial Performance - Net revenue for Q4 fiscal 2024 was $24.1 million, a decrease of 10% sequentially and 13% year-over-year[5]. - GAAP net loss for Q4 fiscal 2024 was $0.5 million, or $0.04 per share, compared to a GAAP net income of $0.4 million, or $0.03 per share, in the previous quarter[9]. - Fiscal 2024 total net revenue reached $101.2 million, with a GAAP net loss of $8.5 million[2]. - The net loss for the year ended September 30, 2024, was $8,486,000, compared to a net loss of $12,582,000 for the previous year[24]. - GAAP net loss for the three months ended September 30, 2024, was $(536) thousand, compared to $(8,486) thousand for the year ended September 30, 2024[27]. - The GAAP net loss per diluted share for the year ended September 30, 2024, was $(0.60), compared to $(0.89) for the previous year[26]. - The company reported a non-GAAP net loss income per diluted share of $0.00 for the year ended September 30, 2024, compared to $(0.02) for the previous year[26]. Revenue and Orders - Customer orders for Q4 fiscal 2024 totaled $17.6 million, while the backlog stood at $25.3 million[2]. - New orders for the three months ended September 30, 2024, totaled $17,587, down from $18,185 in the same period last year[22]. - Backlog as of September 30, 2024, was $25,312, a decrease from $51,794 as of September 30, 2023[22]. Profitability and Expenses - Adjusted EBITDA for Q4 fiscal 2024 was $0.8 million, marking the fourth consecutive quarter of positive adjusted EBITDA[3]. - Structural cost reductions of approximately $7 million annually are anticipated to enhance profitability[14]. - Research, Development and Engineering expenses decreased by $1.6 million compared to the prior year period[8]. - Research, development, and engineering expenses for the three months ended September 30, 2024, were $991, down from $2,597 in the same period last year[22]. - GAAP gross profit for the three months ended September 30, 2024, was $9,803, significantly higher than $2,794 for the same period in 2023, resulting in a gross margin increase from 10% to 41%[22]. - Non-GAAP gross profit for the year ended September 30, 2024, was $37,528,000, compared to $41,684,000 for the previous year, with a non-GAAP gross margin of 37%[25]. Cash Flow and Assets - Cash provided by operations for fiscal 2024 was $9.8 million, with unrestricted cash at $11.1 million as of September 30, 2024[11]. - Total current assets decreased to $64,376 as of September 30, 2024, from $81,189 as of September 30, 2023[23]. - Cash and cash equivalents decreased to $11,086 as of September 30, 2024, from $13,133 as of September 30, 2023[23]. - The company had cash and cash equivalents of $11,086,000 at the end of the year, down from $13,133,000 at the beginning of the year[24]. Debt and Liabilities - The company fully repaid $10.7 million on its debt agreement during the quarter[2]. - Total liabilities decreased to $36,595 as of September 30, 2024, from $48,656 as of September 30, 2023[23]. Future Outlook - The company expects revenues for Q1 fiscal 2025 to be in the range of $21 million to $24 million, with nominally positive adjusted EBITDA[14].

EXHIBIT 99.1 Amtech Reports Third Quarter 2024 Results TEMPE, Ariz., August 7, 2024 -- Amtech Systems, Inc. ("Amtech") (NASDAQ: ASYS), a manufacturer of equipment and consumables for semiconductor fabrication and packaging, today reported results for its third quarter ended June 30, 2024. Third Quarter Fiscal 2024 Financial and Operational Results: • Net revenue of $26.7 million • GAAP operating income of $0.8 million • Net cash position of $8.9 million • Non-GAAP operating income of $1.5 million (1) • GAAP ...

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, 2024 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) | --- | --- | ...