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(ASYS) - 2023 Q4 - Earnings Call Transcript