DevvStream

Amtech Systems Reports Fourth Quarter and Year End Fiscal 2023 Results

14 December 2023

TEMPE, Ariz. / Dec 14, 2023 / Business Wire / Amtech Systems, Inc. ("Amtech") (NASDAQ: ASYS), a manufacturer of thermal processing, wafer cleaning and chemical mechanical polishing (CMP) capital equipment and related consumables used in semiconductor, advanced mobility and renewable energy manufacturing applications, today reported results for its fourth quarter and fiscal year ended September 30, 2023.

Fourth Quarter Fiscal 2023 Financial and Operational Results:

  • Net revenue of $27.7 million
  • GAAP operating loss of $11.7 million, inclusive of $5.2 million intangible asset impairment charge
  • Non-GAAP operating loss of $3.0 million (1)
  • GAAP net loss of $12.0 million
  • Non-GAAP net loss of $2.5 million (1)
  • GAAP net loss per diluted share of $0.85
  • Non-GAAP net loss per diluted share of $0.18 (1)
  • Customer orders of $18.2 million
  • Book to bill ratio of 0.7:1

Fiscal 2023 Financial and Operational Results:

  • Net revenue of $113.3 million
  • GAAP operating loss of $15.0 million, inclusive of $5.2 million intangible asset impairment charge
  • Non-GAAP operating loss of $0.2 million (1)
  • GAAP net loss of $12.6 million
  • Non-GAAP net loss of $0.3 million (1)
  • GAAP net loss per diluted share of $0.89
  • Non-GAAP net loss per diluted share of $0.02 (1)
  • Customer orders of $103.9 million
  • Book to bill ratio of 0.9:1
  • Backlog of $51.8 million.

(1) See GAAP to non-GAAP reconciliation in schedules following this release.

“We experienced continued softness in demand across several of our end markets during the fourth quarter and have taken actions to reduce fixed costs and expenses. These actions include a reduction in force at each of our businesses, as well as a decision to exit the legacy PR Hoffman polishing product lines and focus on their consumable products going forward. The long-term opportunities for Amtech’s products remain strong, and the actions we are taking will allow us to significantly improve profitability as demand recovers,” commented Mr. Bob Daigle, Chief Executive Officer of Amtech.

GAAP and Non-GAAP Financial Results

(in millions, except per share amounts)

Q4

 

 

Q3

 

 

Q4

 

 

12
Months

 

 

12
Months

 

 

FY 2023

 

 

FY 2023

 

 

FY 2022

 

 

2023

 

 

2022

 

Revenues, net

$

27.7

 

 

$

30.7

 

 

$

32.3

 

 

$

113.3

 

 

$

106.3

 

GAAP gross profit

$

2.8

 

 

$

11.0

 

 

$

12.6

 

 

$

35.6

 

 

$

39.5

 

GAAP gross margin

 

10.1

%

 

 

35.7

%

 

 

38.8

%

 

 

31.4

%

 

 

37.2

%

Non-GAAP gross profit (1)

$

8.9

 

 

$

11.0

 

 

$

12.6

 

 

$

41.7

 

 

$

39.5

 

Non-GAAP gross margin (1)

 

32.2

%

 

 

35.7

%

 

 

38.8

%

 

 

36.8

%

 

 

37.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating (loss) income

$

(11.7

)

 

$

(1.1

)

 

$

3.9

 

 

$

(15.0

)

 

$

17.3

 

GAAP operating margin

 

-42.2

%

 

 

-3.6

%

 

 

12.0

%

 

 

-13.2

%

 

 

16.3

%

Non-GAAP operating (loss) income (1)

$

(3.0

)

 

$

0.4

 

 

$

4.0

 

 

$

(0.2

)

 

$

5.4

 

Non-GAAP operating margin (1)

 

-10.9

%

 

 

1.2

%

 

 

12.5

%

 

 

-0.1

%

 

 

5.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net (loss) income

$

(12.0

)

 

$

(1.0

)

 

$

4.2

 

 

$

(12.6

)

 

$

17.4

 

GAAP net (loss) income per diluted share

$

(0.85

)

 

$

(0.07

)

 

$

0.30

 

 

$

(0.89

)

 

$

1.22

 

Non-GAAP net (loss) income (1)

$

(2.5

)

 

$

0.3

 

 

$

4.3

 

 

$

(0.3

)

 

$

5.4

 

Non-GAAP net (loss) income per diluted share (1)

$

(0.18

)

 

$

0.02

 

 

$

0.31

 

 

$

(0.02

)

 

$

0.38

 

(1) See GAAP to non-GAAP reconciliation in schedules following this release.

Net revenues decreased 10% sequentially and 14% from the fourth quarter of fiscal 2022. The decrease from prior year is primarily attributable to lower shipments from our Shanghai manufacturing facility partially offset by an increase in shipments of our high temperature belt furnaces and the addition of Entrepix in fiscal 2023. The sequential decrease is primarily due to a decrease in equipment shipments across our business segments. We are experiencing lower bookings in multiple areas of our business due to the softness in the semiconductor market.

Gross margin decreased sequentially and compared to the prior year due primarily to one-time charges and lower equipment volumes in our Material & Substrate segment. These charges include an intangible asset impairment of $4.6 million and an inventory write down of $1.5 million for our polishing machine products.

During the fourth quarter, we recorded $5.2 million of intangible asset impairment charges in our Material and Substrate segment, of which $4.6 million is recorded within gross profit and the remainder is recorded within operating expenses. This charge was due primarily to the prolonged downturn and general economic conditions in the semiconductor market and customer delays in the adoption of next-gen polishing tools, both of which reduced our projections for the segment.

Selling, General & Administrative (“SG&A”) expenses increased $0.8 million on a sequential basis and increased $3.8 million compared to the prior year period. The sequential increase is due primarily to $0.6 million of additional equity compensation expense primarily related to the change in leadership of the Company. Compared to the prior year, the increase is due primarily to added Entrepix SG&A of $1.8 million, as well as increased equity compensation, consulting, audit, and ERP project expenses.

Research, Development and Engineering expenses increased $0.8 million sequentially and increased $1.2 million compared to the same prior year period, with $0.5 million associated with customer delays in the adoption of next-gen polishing tools at PR Hoffman.

GAAP operating loss was $11.7 million, compared to GAAP operating loss of $1.1 million in the third quarter of fiscal 2023 and GAAP operating income of $3.9 million in the same prior year period.

Non-GAAP operating loss was $3.0 million, compared to non-GAAP operating income of $0.4 million in the third quarter of fiscal 2023 and non-GAAP operating income of $4.0 million in the same prior year period.

GAAP net loss for the fourth quarter of fiscal 2023 was $12.0 million, or 85 cents per share. This compares to GAAP net loss of $1.0 million, or 7 cents per share, for the preceding quarter and GAAP net income of $4.2 million, or 30 cents per share, for the fourth quarter of fiscal 2022.

Non-GAAP net loss for the fourth quarter of fiscal 2023 was $2.5 million, or 18 cents per share. This compares to non-GAAP net income of $0.3 million, or 2 cents per share, for the preceding quarter and non-GAAP net income of $4.3 million, or 31 cents per share, for the fourth quarter of fiscal 2022.

At September 30, 2023, we were not in compliance with the Debt to EBITDA and Fixed Charge Coverage Ratio financial covenants under our Loan Agreement. On December 5, 2023, we entered into a Forbearance & Modification Agreement (the “Forbearance Agreement”) with UMB Bank related to such non-compliance, pursuant to which UMB Bank agreed to forbear from exercising its rights and remedies available to it as a result of such defaults. We will be operating under the terms of this Forbearance Agreement through January 17, 2025 (the “Forbearance Period”).

In discussing financial results for the three months and year ended September 30, 2023 and 2022, and the three months ended June 30, 2023, in this press release, the Company refers to certain financial measures that are adjusted from the financial results prepared in accordance with United States generally accepted accounting principles ("GAAP"). All non-GAAP amounts exclude certain adjustments for stock compensation expense, severance expense, expenses related to the discontinued product line, intangible asset impairment, gain on sale-leaseback of our Massachusetts facility, amortization of acquired intangible assets, acquisition expenses, and income tax benefit related to our acquisition of Entrepix, Inc. A tabular reconciliation of financial measures prepared in accordance with GAAP to the non-GAAP financial measures is included at the end of this press release.

Outlook

Operating results can be significantly impacted, positively or negatively, by the timing of orders, system shipments, logistical challenges, and the financial results of semiconductor manufacturers. Additionally, the semiconductor equipment industries can be cyclical and inherently impacted by changes in market demand. Actual results may differ materially in the weeks and months ahead.

For the first fiscal quarter ending December 31, 2023, we expect revenues in the range of $21 - $24 million with EBITDA nominally negative. Although the near-term outlook for revenue and earnings is challenging, we remain confident that the long-term outlook is strong for both our consumables and equipment serving advanced mobility and advanced packaging applications. We took actions during the first quarter of fiscal 2024, which will reduce Amtech's structural costs by approximately $4 million annually and better align product pricing with value. These steps will significantly improve results and enhance profitability through market cycles.

A portion of Amtech's results is denominated in Renminbis, a Chinese currency. The outlook provided in this press release is based on an assumed exchange rate between the United States Dollar and the Renminbi. Changes in the value of the Renminbi in relation to the United States Dollar could cause actual results to differ from expectations.

About Amtech Systems, Inc.

Amtech Systems, Inc. is a leading, global manufacturer of thermal processing, wafer cleaning and chemical mechanical polishing (CMP) capital equipment and related consumables used in semiconductor, advanced mobility and renewable energy manufacturing applications. We sell process equipment and services used in the fabrication of semiconductor devices, such as silicon carbide (SiC), silicon power, electronic assemblies and modules to semiconductor device and module manufacturers worldwide, particularly in Asia, North America and Europe. Our strategic focus is on growth opportunities which leverage our strengths in thermal and substrate processing. Amtech's products are recognized under the leading brand names BTU International, Entrepix, Inc., PR Hoffman™ and Intersurface Dynamics, Inc.

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this press release is forward-looking in nature. All statements in this press release, or made by management of Amtech Systems, Inc. and its subsidiaries ("Amtech"), other than statements of historical fact, are hereby identified as "forward-looking statements" (as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995). The forward-looking statements in this press release relate only to events or information as of the date on which the statements are made in this press release. Examples of forward-looking statements include statements regarding Amtech's future financial results, operating results, business strategies, projected costs, products under development, competitive positions, plans and objectives of Amtech and its management for future operations, efforts to improve operational efficiencies and effectiveness and profitably grow our revenue, and enhancements to our technologies and expansion of our product portfolio. In some cases, forward-looking statements can be identified by terminology such as "may," "plan," "anticipate," "seek," "will," "expect," "intend," "estimate," "believe," "continue," "predict," "potential," "project," "should," "would," "could", "likely," "future," "target," "forecast," "goal," "observe," and "strategy" or the negative of these terms or other comparable terminology used in this press release or by our management, which are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. The Form 10-K that Amtech filed with the Securities and Exchange Commission (the "SEC") for the year-ended September 30, 2022, listed various important factors that could affect the Company's future operating results and financial condition and could cause actual results to differ materially from historical results and expectations based on forward-looking statements made in this document or elsewhere by Amtech or on its behalf. These factors can be found under the heading "Risk Factors" in the Form 10-K and in our subsequently filed Quarterly Reports on Form 10-Qs, and investors should refer to them. Because it is not possible to predict or identify all such factors, any such list cannot be considered a complete set of all potential risks or uncertainties. Except as required by law, we undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events, or otherwise.

        

AMTECH SYSTEMS, INC.

(NASDAQ: ASYS)

(Unaudited) 

       
        

Summary Financial Information

(in thousands, except percentages)

       
        

 

Three Months Ended

   

Years Ended September 30,

 

September 30,
2023

 

June 30,
2023

 

September 30,
2022

   

2023

 

2022

Amtech Systems, Inc.

 

 

 

 

 

 

 

 

   

 

 

 

 

 

Revenue, net

$

27,707

 

 

$

30,740

 

 

$

32,315

 

   

$

113,315

 

 

$

106,298

 

Gross profit

$

2,794

 

 

$

10,985

 

 

$

12,553

 

   

$

35,552

 

 

$

39,511

 

Gross margin

 

10

%

 

 

36

%

 

 

39

%

   

 

31

%

 

 

37

%

GAAP operating (loss) income

$

(11,690

)

 

$

(1,119

)

 

$

3,889

 

   

$

(14,970

)

 

$

17,286

 

Non-GAAP operating (loss) income

$

(3,020

)

 

$

368

 

 

$

4,047

 

   

$

(160

)

 

$

5,364

 

New orders

$

18,185

 

 

$

26,217

 

 

$

20,365

 

   

$

103,897

 

 

$

113,953

 

Backlog

$

51,794

 

 

$

61,315

 

 

$

50,780

 

   

$

51,794

 

 

$

50,780

 

Semiconductor Segment

 

 

 

 

 

 

 

 

   

 

 

 

 

 

Revenue, net

$

18,820

 

 

$

19,841

 

 

$

26,498

 

   

$

77,595

 

 

$

87,982

 

Gross profit

$

7,374

 

 

$

6,707

 

 

$

9,373

 

   

$

29,184

 

 

$

30,880

 

Gross margin

 

39

%

 

 

34

%

 

 

35

%

   

 

38

%

 

 

35

%

GAAP operating income

$

2,046

 

 

$

1,042

 

 

$

4,425

 

   

$

6,907

 

 

$

20,672

 

Non-GAAP operating income

$

2,046

 

 

$

1,042

 

 

$

4,425

 

   

$

6,907

 

 

$

8,207

 

New orders

$

10,834

 

 

$

18,293

 

 

$

16,165

 

   

$

74,817

 

 

$

94,268

 

Backlog

$

45,233

 

 

$

53,219

 

 

$

48,011

 

   

$

45,233

 

 

$

48,011

 

Material and Substrate Segment

 

 

 

 

 

 

 

 

   

 

 

 

 

 

Revenue, net

$

8,887

 

 

$

10,899

 

 

$

5,817

 

   

$

35,720

 

 

$

18,316

 

Gross (loss) profit

$

(4,580

)

 

$

4,278

 

 

$

3,180

 

   

$

6,368

 

 

$

8,631

 

Gross margin

 

-52

%

 

 

39

%

 

 

55

%

   

 

18

%

 

 

47

%

GAAP operating (loss) income

$

(10,176

)

 

$

481

 

 

$

1,737

 

   

$

(8,765

)

 

$

3,728

 

Non-GAAP operating (loss) income

$

(2,455

)

 

$

1,506

 

 

$

1,737

 

   

$

1,622

 

 

$

3,728

 

New orders

$

7,351

 

 

$

7,924

 

 

$

4,200

 

   

$

29,080

 

 

$

19,685

 

Backlog

$

6,561

 

 

$

8,096

 

 

$

2,769

 

   

$

6,561

 

 

$

2,769

 

 

AMTECH SYSTEMS, INC.

(NASDAQ: ASYS)

(Unaudited)

      

Consolidated Statements of Operations

(in thousands, except per share data)

     
      

 

Three Months Ended
September 30,

 

Years Ended
September 30,

 

2023

 

2022

 

2023

 

2022

Revenue, net

$

27,707

 

 

$

32,315

 

 

$

113,315

 

 

$

106,298

 

Cost of sales

 

20,268

 

 

 

19,762

 

 

 

73,118

 

 

 

66,787

 

Intangible asset impairment

 

4,645

 

 

 

 

 

 

4,645

 

 

 

 

Gross profit

 

2,794

 

 

 

12,553

 

 

 

35,552

 

 

 

39,511

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

11,078

 

 

 

7,292

 

 

 

42,002

 

 

 

28,300

 

Research, development and engineering

 

2,597

 

 

 

1,372

 

 

 

7,311

 

 

 

6,390

 

Gain on sale of fixed assets

 

 

 

 

 

 

 

 

 

 

(12,465

)

Intangible asset impairment

 

544

 

 

 

 

 

 

544

 

 

 

 

Severance expense

 

265

 

 

 

 

 

 

665

 

 

 

 

Operating (loss) income

 

(11,690

)

 

 

3,889

 

 

 

(14,970

)

 

 

17,286

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

10

 

 

 

161

 

 

 

366

 

 

 

210

 

Interest expense

 

(178

)

 

 

2

 

 

 

(520

)

 

 

(164

)

Foreign currency (loss) gain

 

(30

)

 

 

710

 

 

 

(89

)

 

 

1,066

 

Other

 

12

 

 

 

(1

)

 

 

31

 

 

 

387

 

(Loss) income before income taxes

 

(11,876

)

 

 

4,761

 

 

 

(15,182

)

 

 

18,785

 

Income tax provision (benefit)

 

139

 

 

 

578

 

 

 

(2,600

)

 

 

1,418

 

Net (loss) income

$

(12,015

)

 

$

4,183

 

 

$

(12,582

)

 

$

17,367

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) Income Per Share:

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per basic share

$

(0.85

)

 

$

0.30

 

 

$

(0.89

)

 

$

1.24

 

Net (loss) income per diluted share

$

(0.85

)

 

$

0.30

 

 

$

(0.89

)

 

$

1.22

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

14,166

 

 

 

13,933

 

 

 

14,065

 

 

 

14,014

 

Diluted

 

14,166

 

 

 

14,080

 

 

 

14,065

 

 

 

14,184

 

 

AMTECH SYSTEMS, INC.

(NASDAQ: ASYS)

(Unaudited)

 
Consolidated Balance Sheets

(in thousands, except share data)

 

September 30,
2023

 

September 30,
2022

 

 

 

 

 

 

Current Assets

 

 

 

 

 

Cash and cash equivalents

$

13,133

 

 

$

46,874

 

Accounts receivable - Net

 

26,474

 

 

 

25,013

 

Inventories

 

34,845

 

 

 

25,488

 

Income taxes receivable

 

632

 

 

 

 

Other current assets

 

6,105

 

 

 

5,561

 

Total current assets

 

81,189

 

 

 

102,936

 

Property, Plant and Equipment - Net

 

9,695

 

 

 

6,552

 

Right-of-Use Assets - Net

 

11,217

 

 

 

11,258

 

Intangible Assets - Net

 

6,114

 

 

 

758

 

Goodwill

 

27,631

 

 

 

11,168

 

Deferred Income Taxes - Net

 

101

 

 

 

79

 

Other Assets

 

1,074

 

 

 

783

 

Total Assets

$

137,021

 

 

$

133,534

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

Current Liabilities

 

 

 

 

 

Accounts payable

$

10,815

 

 

$

7,301

 

Accrued compensation and related taxes

 

3,481

 

 

 

4,109

 

Accrued warranty expense

 

965

 

 

 

871

 

Other accrued liabilities

 

1,551

 

 

 

900

 

Current portion of finance lease liabilities and long-term debt

 

2,265

 

 

 

107

 

Current portion of long-term operating lease liabilities

 

2,623

 

 

 

2,101

 

Contract liabilities

 

8,018

 

 

 

7,231

 

Income taxes payable

 

 

 

 

6

 

Total current liabilities

 

29,718

 

 

 

22,626

 

Finance Lease Liabilities and Long-Term Debt

 

8,422

 

 

 

220

 

Long-Term Operating Lease Liabilities

 

8,894

 

 

 

9,395

 

Income Taxes Payable

 

1,575

 

 

 

2,849

 

Other Long-Term Liabilities

 

47

 

 

 

76

 

Total Liabilities

 

48,656

 

 

 

35,166

 

Commitments and Contingencies

 

 

 

 

 

Shareholders’ Equity

 

 

 

 

 

Preferred stock; 100,000,000 shares authorized; none issued

 

 

 

 

 

Common stock; $0.01 par value; 100,000,000 shares authorized; shares
issued and outstanding: 14,185,977 and 13,994,154 in
2023 and 2022, respectively

 

142

 

 

 

140

 

Additional paid-in capital

 

126,963

 

 

 

124,458

 

Accumulated other comprehensive loss

 

(1,695

)

 

 

(1,767

)

Retained deficit

 

(37,045

)

 

 

(24,463

)

Total Shareholders’ Equity

 

88,365

 

 

 

98,368

 

Total Liabilities and Shareholders’ Equity

$

137,021

 

 

$

133,534

 

 

AMTECH SYSTEMS, INC.

(NASDAQ: ASYS)

(Unaudited)

 
Consolidated Statements of Cash Flows

(in thousands)

 

Years Ended September 30,

 

2023

 

2022

Operating Activities

 

 

 

 

 

Net (loss) income

$

(12,582

)

 

$

17,367

 

Adjustments to reconcile net (loss) income to net cash used in operating activities:

 

 

 

 

 

Depreciation and amortization

 

5,012

 

 

 

1,729

 

Write-down of inventory

 

2,620

 

 

 

102

 

Non-cash intangible asset impairment

 

5,189

 

 

 

 

Provision for allowance for doubtful accounts

 

14

 

 

 

(32

)

Deferred income taxes

 

(2,513

)

 

 

592

 

Non-cash stock-based compensation expense

 

1,272

 

 

 

543

 

Gain on sale of fixed assets

 

 

 

 

(12,465

)

Other, net

 

196

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

 

4,410

 

 

 

(2,479

)

Inventories

 

(6,294

)

 

 

(3,684

)

Contract and other assets

 

(529

)

 

 

(2,203

)

Accounts payable

 

1,459

 

 

 

(1,080

)

Accrued income taxes

 

(2,897

)

 

 

623

 

Accrued and other liabilities

 

(1,895

)

 

 

584

 

Contract liabilities

 

(1,163

)

 

 

5,607

 

Net cash (used in) provided by operating activities

 

(7,701

)

 

 

5,204

 

Investing Activities

 

 

 

 

 

Purchases of property, plant and equipment

 

(2,898

)

 

 

(1,135

)

Acquisitions, net of cash and cash equivalents acquired

 

(34,938

)

 

 

 

Proceeds from sale of property, plant and equipment

 

6

 

 

 

19,908

 

Net cash (used in) provided by investing activities

 

(37,830

)

 

 

18,773

 

Financing Activities

 

 

 

 

 

Proceeds from the exercise of stock options

 

1,235

 

 

 

720

 

Repurchase of common stock

 

 

 

 

(4,115

)

Payments on long-term debt

 

(1,497

)

 

 

(4,872

)

Borrowings on long-term debt

 

12,000

 

 

 

 

Net cash provided by (used in) financing activities

 

11,738

 

 

 

(8,267

)

Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash

 

52

 

 

 

(1,672

)

Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash

 

(33,741

)

 

 

14,038

 

Cash, Cash Equivalents and Restricted Cash, Beginning of Year

 

46,874

 

 

 

32,836

 

Cash, Cash Equivalents and Restricted Cash, End of Year

$

13,133

 

 

$

46,874

 

 

AMTECH SYSTEMS, INC.

(NASDAQ: ASYS)

(Unaudited)

      

Reconciliation of GAAP to Non-GAAP Financial Measures

(in thousands, except per share data)

 

Three Months Ended

 

 

 

Years Ended September 30,

 

September 30,
2023

 

June 30, 2023

 

September 30,
2022

 

 

 

2023

 

2022

Amtech Systems, Inc. Operating (Loss) Income:

 

 

 

 

 

 

 

 

   

 

 

 

 

 

GAAP operating (loss) income

$

(11,690

)

 

$

(1,119

)

 

$

3,889

 

   

$

(14,970

)

 

$

17,286

 

Acquisition expenses

 

-

 

 

 

272

 

 

 

-

 

   

 

3,242

 

 

 

-

 

Write-down of inventory related to polishing equipment

 

1,487

 

 

 

-

 

 

 

-

 

   

 

1,487

 

 

 

-

 

Amortization of acquired intangible assets

 

985

 

 

 

1,025

 

 

 

-

 

   

 

2,955

 

 

 

-

 

Stock compensation expense

 

744

 

 

 

190

 

 

 

158

 

   

 

1,272

 

 

 

543

 

Gain on sale of fixed assets

 

-

 

 

 

-

 

 

 

-

 

   

 

-

 

 

 

(12,465

)

Intangible asset impairment

 

5,189

 

 

 

-

 

 

 

-

 

   

 

5,189

 

 

 

-

 

Severance expense

 

265

 

 

 

-

 

 

 

-

 

   

 

665

 

 

 

-

 

Non-GAAP operating (loss) income

$

(3,020

)

 

$

368

 

 

$

4,047

 

   

$

(160

)

 

$

5,364

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

GAAP operating margin

 

(42.2

)%

 

 

(3.6

)%

 

 

12.0

%

   

 

(13.2

)%

 

 

16.3

%

Non-GAAP operating margin

 

(10.9

)%

 

 

1.2

%

 

 

12.5

%

   

 

(0.1

)%

 

 

5.0

%

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

Consolidated Net (Loss) Income:

 

 

 

 

 

 

 

 

   

 

 

 

 

 

GAAP net (loss) income

$

(12,015

)

 

$

(1,027

)

 

$

4,183

 

   

$

(12,582

)

 

$

17,367

 

Acquisition expenses

 

-

 

 

 

272

 

 

 

-

 

   

 

3,242

 

 

 

-

 

Write-down of inventory related to polishing equipment

 

1,487

 

 

 

-

 

 

 

-

 

   

 

1,487

 

 

 

-

 

Amortization of acquired intangible assets

 

985

 

 

 

1,025

 

 

 

-

 

   

 

2,955

 

 

 

-

 

Stock compensation expense

 

744

 

 

 

190

 

 

 

158

 

   

 

1,272

 

 

 

543

 

Gain on sale of fixed assets

 

-

 

 

 

-

 

 

 

-

 

   

 

-

 

 

 

(12,465

)

Intangible asset impairment

 

5,189

 

 

 

-

 

 

 

-

 

   

 

5,189

 

 

 

-

 

Severance expense

 

265

 

 

 

-

 

 

 

-

 

   

 

665

 

 

 

-

 

Income tax benefit related to acquisition

 

856

 

 

 

(182

)

 

 

-

 

   

 

(2,490

)

 

 

-

 

Non-GAAP net (loss) income

$

(2,489

)

 

$

278

 

 

$

4,341

 

   

$

(262

)

 

$

5,445

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

Net (Loss) Income per Diluted Share:

 

 

 

 

 

 

 

 

   

 

 

 

 

 

GAAP net (loss) income per diluted share

$

(0.85

)

 

$

(0.07

)

 

$

0.30

 

   

$

(0.89

)

 

$

1.22

 

Acquisition expenses

 

-

 

 

 

0.02

 

 

 

-

 

   

 

0.23

 

 

 

-

 

Write-down of inventory related to polishing equipment

 

0.10

 

 

 

-

 

 

 

-

 

   

 

0.10

 

 

 

-

 

Amortization of acquired intangible assets

 

0.07

 

 

 

0.07

 

 

 

-

 

   

 

0.21

 

 

 

-

 

Stock compensation expense

 

0.05

 

 

 

0.01

 

 

 

0.01

 

   

 

0.09

 

 

 

0.04

 

Gain on sale of fixed assets

 

-

 

 

 

-

 

 

 

-

 

   

 

-

 

 

 

(0.88

)

Intangible asset impairment

 

0.37

 

 

 

-

 

 

 

-

 

   

 

0.37

 

 

 

-

 

Severance expense

 

0.02

 

 

 

-

 

 

 

-

 

   

 

0.05

 

 

 

-

 

Income tax benefit related to acquisition

 

0.06

 

 

 

(0.01

)

 

 

-

 

   

 

(0.18

)

 

 

-

 

Non-GAAP net (loss) income per diluted share

$

(0.18

)

 

$

0.02

 

 

$

0.31

 

   

$

(0.02

)

 

$

0.38

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

Semiconductor Segment Operating Income (Loss):

 

 

 

 

 

 

 

 

   

 

 

 

 

 

GAAP operating income

$

2,046

 

 

$

1,042

 

 

$

4,425

 

   

$

6,907

 

 

$

20,672

 

Gain on sale of fixed assets

 

-

 

 

 

-

 

 

 

-

 

   

 

-

 

 

 

(12,465

)

Non-GAAP operating income (loss)

$

2,046

 

 

$

1,042

 

 

$

4,425

 

   

$

6,907

 

 

$

8,207

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

Material and Substrate Segment Operating (Loss) Income:

 

 

 

 

 

 

 

 

   

 

 

 

 

 

GAAP operating (loss) income

$

(10,176

)

 

$

481

 

 

$

1,737

 

   

$

(8,765

)

 

$

3,728

 

Acquisition expenses

 

-

 

 

 

-

 

 

 

-

 

   

 

696

 

 

 

-

 

Write-down of inventory related to polishing equipment

 

1,487

 

 

 

-

 

 

 

-

 

   

 

1,487

 

 

 

-

 

Amortization of acquired intangible assets

 

985

 

 

 

1,025

 

 

 

-

 

   

 

2,955

 

 

 

-

 

Intangible asset impairment

 

5,189

 

 

 

-

 

 

 

-

 

   

 

5,189

 

 

 

-

 

Severance expense

 

60

 

 

 

-

 

 

 

-

 

   

 

60

 

 

 

-

 

Non-GAAP operating (loss) income

$

(2,455

)

 

$

1,506

 

 

$

1,737

 

   

$

1,622

 

 

$

3,728

 

 

AMTECH SYSTEMS, INC.

(NASDAQ: ASYS)

(Unaudited)

 

Reconciliation of GAAP to Non-GAAP Financial Measures

(in thousands, except per share data)

        

 

Three Months Ended

 

 

  

Years Ended September 30,

 

 

September 30,
2023

 

June 30, 2023

 

September 30,
2022

 

  

2023

 

2022

Amtech Systems, Inc. Gross Profit:

 

 

 

 

 

 

 

 

   

 

 

 

 

 

GAAP gross profit

$

2,794

 

 

$

10,985

 

 

$

12,553

 

   

$

35,552

 

 

$

39,511

 

Write-down of inventory related to polishing equipment

 

1,487

 

 

 

-

 

 

 

-

 

   

 

1,487

 

 

 

-

 

Intangible asset impairment

 

4,645

 

 

 

-

 

 

 

-

 

   

 

4,645

 

 

 

-

 

Non-GAAP gross profit

$

8,926

 

 

$

10,985

 

 

$

12,553

 

   

$

41,684

 

 

$

39,511

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

GAAP gross margin

 

10

%

 

 

36

%

 

 

39

%

   

 

31

%

 

 

37

%

Non-GAAP gross margin

 

32

%

 

 

36

%

 

 

39

%

   

 

37

%

 

 

37

%

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

Semiconductor Segment Gross Profit:

 

 

 

 

 

 

 

 

   

 

 

 

 

 

GAAP gross profit

$

7,374

 

 

$

6,707

 

 

$

9,373

 

   

$

29,184

 

 

$

30,880

 

Write-down of inventory related to polishing equipment

 

-

 

 

 

-

 

 

 

-

 

   

 

-

 

 

 

-

 

Intangible asset impairment

 

-

 

 

 

-

 

 

 

-

 

   

 

-

 

 

 

-

 

Non-GAAP gross profit

$

7,374

 

 

$

6,707

 

 

$

9,373

 

   

$

29,184

 

 

$

30,880

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

GAAP gross margin

 

39

%

 

 

34

%

 

 

35

%

   

 

38

%

 

 

35

%

Non-GAAP gross margin

 

39

%

 

 

34

%

 

 

35

%

   

 

38

%

 

 

35

%

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

Material and Substrate Segment Gross (Loss) Profit:

 

 

 

 

 

 

 

 

   

 

 

 

 

 

GAAP gross (loss) profit

$

(4,580

)

 

$

4,278

 

 

$

3,180

 

   

$

6,368

 

 

$

8,631

 

Write-down of inventory related to polishing equipment

 

1,487

 

 

 

-

 

 

 

-

 

   

 

1,487

 

 

 

-

 

Intangible asset impairment

 

4,645

 

 

 

-

 

 

 

-

 

   

 

4,645

 

 

 

-

 

Non-GAAP gross profit

$

1,552

 

 

$

4,278

 

 

$

3,180

 

   

$

12,500

 

 

$

8,631

 

 

 

 

 

 

 

 

 

 

   

 

 

 

 

 

GAAP gross margin

 

(52

)%

 

 

39

%

 

 

55

%

   

 

18

%

 

 

47

%

Non-GAAP gross margin

 

17

%

 

 

39

%

 

 

55

%

   

 

35

%

 

 

47

%

 

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