Amtech Systems(ASYS) - 2026 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $19 million, aligning with guidance, while Adjusted EBITDA was $1.4 million, also within guidance range [5][12] - Gross margin increased to 44.8% in Q1 2026 from 38.4% in the same period last year and 44.4% in Q4 2025 [14] - GAAP net income for Q1 2026 was $0.1 million or $0.01 per share, compared to $1.1 million or $0.07 per share in the preceding quarter [16] Business Line Data and Key Metrics Changes - AI-related products accounted for 35% of revenue in the thermal processing solutions segment, up from 30% in Q4 2025 [6][13] - Book-to-bill ratio was 1.1, driven by strong performance in AI equipment orders [6] - Weak demand for PR Hoffman products negatively impacted overall SFS results, offsetting gains in other segments [9] Market Data and Key Metrics Changes - Demand for AI infrastructure is driving investments from semiconductor OEMs and OSATs, with expectations for continued growth in Q3 and Q4 2026 [6][11] - The semiconductor market, particularly for mature node semiconductors, is experiencing weakness, impacting overall sales [13] Company Strategy and Development Direction - The company is focusing on next-generation equipment for high-density packaging and panel-level packaging, which is expected to drive future growth [8][9] - A semi-fabless manufacturing model has been adopted, consolidating manufacturing from seven facilities to four, allowing for increased revenue with minimal capital expenditures [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for AI-related equipment and the strength of the customer pipeline, indicating improved visibility for growth [32] - The company expects revenue for Q2 2026 to be in the range of $19 million to $21 million, driven primarily by AI-related equipment sales [17] Other Important Information - Cash generated from operations was $4.1 million for Q1 2026, with a cash balance of $22.1 million and no debt [10][16] - The company did not repurchase any shares under its stock repurchase program since its initiation [16] Q&A Session Summary Question: Can you elaborate on the panel-level business? - Management explained that panel-level packaging is a cost-effective method for producing packaging in large formats, which is seen as the future of advanced packaging [22] Question: Are there any new products related to this panel-level business? - Management indicated that new products are focused on higher density packaging requirements, with meaningful demand expected around 2027 [24] Question: What are the key areas of commitment for increased spending in R&D? - Increased investments are being made in next-generation packaging equipment for AI applications and in the semi-fab solutions area to build momentum [36] Question: What is the outlook for AI revenue growth? - Management expressed confidence in continued growth in AI revenue, supported by customer plans for expansion and new facility buildouts [38] Question: Can you explain the high tax rate this quarter? - The high tax rate is due to U.S. entities being in a loss position, with no tax benefits recognized, leading to a larger tax expense from foreign entities [40][41]