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Amtech Reports First Quarter Fiscal 2013 Results

February 7, 2013

TEMPE, Ariz., Feb. 7, 2013 /PRNewswire/ — Amtech Systems, Inc. (NASDAQ: ASYS), a global supplier of production and automation systems and related supplies for the manufacture of solar cells, semiconductors, and sapphire and silicon wafers, today reported results for its first fiscal quarter ending December 31, 2012.

First Quarter Fiscal 2013 Financial Summary:

  • Net revenue of $9.4 million
  • Solar revenue of $4.3 million
  • Semiconductor revenue of $5.1million
  • Quarterly bookings of $5.0 million
  • Quarter-end backlog of $14.7 million; solar backlog of $10.1 million
  • Gross margin of 15%
  • Operating loss of $4.8 million
  • Net loss of $4.2 million, or $(0.44) per share

Mr. Fokko Pentinga, Chief Executive Officer of Amtech, commented, “We currently expect 2013 to be a difficult year throughout the solar value chain. However, we do expect to see selective capacity expansions and limited technology buying. While visibility of the timing of a market upturn continues to be limited, we are working very closely with our customers to support both their current needs as well as their ongoing pursuit of technology differentiation through lower costs and higher cell efficiency. We have continued to invest in advancing our technologies through this cycle and are confident that as a result we have further strengthened our position in the marketplace. Given our leading-edge technology solutions including our new ion implant system, batch PECVD and N-type technologies, and our ongoing relationships with industry-leading customers, we look forward to renewed growth in the next investment cycle.”

Pentinga added, “During the quarter we took additional actions to further lower our operating costs resulting in a restructuring charge in the quarter. Cost management and preservation of cash are high priorities as we manage through this cycle.”

Net revenue for the first quarter of fiscal 2013 was $9.4 million compared to $10.9 million in the preceding quarter and $24.7 million in the first quarter of fiscal 2012. The changes reflect the continued unfavorable market conditions in the solar industry as well as lower activity in the semiconductor portion of Amtech’s business.

Total customer orders in the first quarter of fiscal 2013 were $5.0 million ($0.2 million solar), down from total orders of $5.6 million ($2.1 million solar) in the fourth quarter of fiscal 2012.

At December 31, 2012, the Company’s total order backlog was $14.7 million, compared to total backlog of $18.7 million at September 30, 2012. Total backlog at December 31, 2012 includes $10.1 million in solar orders and deferred revenue, compared to solar backlog of $13.8 million at September 30, 2012. Foreign exchange caused a $0.4 million increase in backlog in the December 2012 quarter due to the strengthening of the Euro versus the US dollar. Backlog includes deferred revenue and customer orders that are expected to ship within the next 12 months.

Gross margin in the first quarter of fiscal 2013 was 15%, compared to negative 63% sequentially and 29% in the first quarter of fiscal 2012. The negative gross margin in the fourth quarter of fiscal 2012 reflects $9.2 million of inventory write-downs and losses on inventory purchase commitments. The lower margins compared to the first quarter of fiscal 2012 resulted primarily from lower sales volumes.

Selling, general and administrative (SG&A) expenses in the first quarter of fiscal 2013 were $4.3 million compared to the preceding quarter’s $4.4 million. The SG&A expenses decreased $2.0 million from $6.3 million in the first quarter of fiscal 2012 due primarily to lower commissions and shipping costs, related to lower revenues, as well as lower consulting and legal expenses and company-wide cost control initiatives.

Restructuring expense was $0.7 million in the first quarter of fiscal 2013 reflecting severance costs related to reductions-in-force actions at certain operations.

Research and Development (R&D) expense was $1.2 million in the first quarter of fiscal 2013 compared to $3.9 million in the preceding quarter and $2.8 million in the first quarter of fiscal 2012. The reduction in R&D expense is primarily due to a decrease in development-related activities and the recognition of a significant amount of government grant funding during the first quarter of fiscal 2013 compared to previous quarters.

Depreciation and amortization in the first quarter of fiscal 2013 was $699,000, compared to $670,000 in the preceding quarter and $769,000 in the first quarter of fiscal 2012.

Included in the first quarter of fiscal 2013 results is $433,000 of stock option expense, compared to $465,000 in the fiscal first quarter a year ago and $422,000 in the fourth quarter of fiscal 2012.

Income tax in the first quarter of fiscal 2013 was a benefit of $0.5 million, resulting in an effective tax rate of approximately 10%.

The net loss for the first quarter of fiscal 2013 was $4.2 million, or ($0.44) per share, compared to a net loss of $14.1 million, or ($1.49) per share, for the fourth quarter of fiscal 2012. The fourth quarter loss included charges for impairment, inventory write-downs and loss on inventory purchase commitments. The net loss for the first quarter of fiscal 2012 was $0.9 million, or ($0.09) per diluted share.

Total unrestricted cash and cash equivalents at December 31, 2012 were $42.6 million, compared to $46.7 million at September 30, 2012 and $54.9 million at December 31, 2011.

Conference Call

Amtech Systems will host a conference call and webcast today at 5:00pm ET to discuss first quarter fiscal 2013 financial results. Those in the USA wishing to participate in the live call should dial (877) 317-6789. From Canada, dial (866)-605-3852, and internationally, dial (412) 317-6789. Request “Amtech” when connected to the operator. A replay of the call will be available one hour after the end of the conference call through February 15, 2013. To access the replay please dial US toll free (877) 344-7529 and enter code 10024431. Internationally, dial (412) 317-0088 and use the same code. A live and archived web cast of the conference call can be accessed in the investor relations section of Amtech’s website at www.amtechsystems.com.

About Amtech Systems, Inc.

Amtech Systems, Inc. manufactures capital equipment, including silicon wafer handling automation, thermal processing and ion implant equipment and related consumables used in fabricating solar cells, LED and semiconductor devices. Semiconductors, or semiconductor chips, are fabricated on silicon wafer substrates, sliced from ingots, and are part of the circuitry, or electronic components, of many products including solar cells, computers, telecommunications devices, automotive products, consumer goods, and industrial automation and control systems. The Company’s wafer handling, thermal processing and consumable products currently address the diffusion, oxidation, and deposition steps used in the fabrication of solar cells, LEDs, semiconductors, MEMS and the polishing of newly sliced silicon wafers.

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 (“the Company” or “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). In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “should,” “would,” “expects,” “plans,” “anticipates,” “intends,” “believes,” “estimates,” “predicts,” “potential,” “continue,” or the negative of these terms or other comparable terminology. Examples of forward-looking statements include statements regarding Amtech’s future financial results, operating results, business strategies, projected costs, products under development, competitive positions and plans and objectives of the Company and its management for future operations.

We cannot guarantee that any forward-looking statement will be realized, although we believe that the expectations reflected in the forward-looking statements are reasonable. Achievement of future results is subject to risks, uncertainties and potentially inaccurate assumptions. The Form 10-K that we filed with the Securities and Exchange Commission for the year-ended September 30, 2012 listed various important factors that could affect Amtech’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 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.

    Contacts:

    Amtech Systems, Inc.         Christensen
    Bradley C. Anderson          Investor Relations
    Chief Financial Officer      Patty Bruner
    (480) 967-5146               (480) 201-6075

    irelations@Amtechsystems.com pbruner@christensenir.com
    Condensed Consolidated Statement of Operations
    Unaudited
    (amounts in thousands, except per share data)
    --------------------------------------------

                                           Three Months Ended
                                              December 31,
                                              ------------
                                                           2012     2011
                                                           ----     ----

    Revenues, net of returns and
     allowances                                          $9,357  $24,728
    Cost of sales                                         7,979   17,527
                                                          -----   ------
    Gross profit                                          1,378    7,201

    Selling, general and administrative                   4,272    6,292
    Restructuring charges                                   697        -
    Research and development                              1,161    2,753
    Operating loss                                       (4,752)  (1,844)

    Interest and other income, net                            4       87
                                                            ---      ---
    Loss before income taxes                             (4,748)  (1,757)

    Income tax benefit                                     (480)    (320)
                                                           ----     ----
    Net loss                                             (4,268)  (1,437)
                                                         ------   ------

    Add: Net Loss Attributable to
     noncontrolling interest                                 74      561
    Net loss attributable to Amtech
     Systems, Inc.                                      $(4,194)   $(876)
                                                        =======    =====

    Loss Per Share:
    Basic loss per share attributable
     to Amtech shareholders                              $(0.44)  $(0.09)
    Weighted average shares outstanding                   9,494    9,446

    Diluted loss per share attributable
     to Amtech shareholders                              $(0.44)  $(0.09)
    Weighted average shares outstanding                   9,494    9,446

    Condensed Consolidated Balance Sheets
    (in thousands, except share data)
    --------------------------------

                                         December 31,  September 30,
    Assets                                                                                                         2012 (Unaudited)            2012
    ------                                                                                                         ---------------             ----
    Current Assets
                                         Cash and cash equivalents                                                        $42,615         $46,726
                                         Restricted cash                                         9,687    4,644
                                         Accounts receivable
                                          Trade (less allowance for
                                          doubtful accounts of $508
                                          and $517 at                           5,824    7,486
                                             December 31, 2012 and
                                              September 30, 2012,
                                              respectively)
                                         Unbilled and other                     8,923   10,807
                                         Inventories                                            24,730   25,670
                                         Deferred income taxes                                   3,480    3,460
                                         Prepaid income taxes                                    1,440    1,400
                                         Other                                                   2,076    2,650
                                                                                                                                          -----
                                         Total current assets                  98,775  102,843

    Property, Plant and Equipment - Net        12,265         12,387
    Deferred Income Taxes - Long Term             450            470
    Intangible Assets - Net                     3,982          4,096
    Goodwill                                    8,423          8,355
    Other Assets - Long Term                    1,005            871
                                         Total Assets                                                                    $124,900        $129,022

    Liabilities and Stockholders'  Equity
    -------------------------------------
    Current Liabilities
                                         Accounts payable                                                                  $2,729          $5,780
                                          Accrued compensation and related
                                          taxes                                                  4,926    5,311
                                         Accrued warranty expense                                2,428    2,687
                                         Deferred profit                                         8,023   10,236
                                         Customer deposits                                       3,389    3,958
                                         Other accrued liabilities                              12,778    7,499
                                         Income taxes payable                                    6,660    7,140
                                                                                                                                          -----
                                         Total current liabilities             40,933   42,611

    Income Taxes Payable Long-term              2,360          2,630
                                         Total liabilities                     43,293   44,971

    Commitments and Contingencies

    Stockholders' 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: 9,539,234 and
                                           9,483,588
                                          at December 31, 2012 and
                                          September 30, 2012,
                                          respectively                             95       95
                                         Additional paid-in capital                             77,810   77,377
                                          Accumulated other comprehensive
                                          loss                                                  (5,414) (6,817)
                                         Retained earnings                                       7,871   12,065
                                                                                                                                          -----
                                         Total stockholders' equity            80,362   82,720
                                         Noncontrolling interest                                           1,245             1,331
                                          Total
                                          Equity                                                                             81,607          84,051
                                                                                                                             ------          ------
                                          Total Liabilities and
                                          Stockholders' Equity                                                            $124,900        $129,022
                                                                                                                                        ========

    Condensed Consolidated Statements of Cash Flows
    Unaudited
    (in thousands)
    -------------

                                                                                     Three Months Ended
                                                                                        December 31,
                                                                                                    2012                     2011
                                                                                                    ----                     ----
    Operating Activities
                     Net loss                           (4,268) (1,437)
                      Adjustments to
                      reconcile net
                      loss to net
                          cash used in
                           operating
                           activities:
                      Depreciation
                      and
                      amortization                          699      769
                      Write-down
                      of inventory                          194       20
                      Deferred
                      income taxes                           15                -
                      Non-cash stock
                      based
                      compensation
                      expense                              433      465
                      Provision for
                      allowance for
                      doubtful
                      accounts                              33       78
                      Changes in
                      operating assets
                      and liabilities:
                      Restricted
                      cash                                 (905)    (420)
                      Accounts
                      receivable                          3,911   10,128
                     Inventories                          1,117  (1,886)
                      Accrued
                      income taxes                         (500)    (752)
                      Prepaid expenses
                      and other
                      assets                               484     (251)
                      Accounts
                      payable                            (3,127) (2,164)
                      Accrued
                      liabilities and
                      customer
                      deposits                            (178) (5,757)
                      Deferred
                      profit                                     (2,460)  (4,906)
                                                                  ------   ------
                      Net cash
                       used in
                       operating
                       activities                                (4,552)  (6,113)
                                                                  ------

    Investing Activities
                      Purchases of
                      property, plant
                      and equipment                       (121)    (465)
                      Net cash used in
                      investing
                      activities                          (121)    (465)
                                                           ----

    Financing Activities
                      Repurchase of
                      common stock                                            -                 (4,080)
                      Payments on
                      long-term
                      obligations                                             -                    (11)
                      Net cash used in
                      financing
                      activities                                              -                 (4,091)

    Effect of Exchange Rate Changes on Cash                                                          562                   (1,777)
                                                                                                     ---                   ------

    Net Decrease in Cash and Cash Equivalents                                                     (4,111)                 (12,446)
    Cash and Cash Equivalents, Beginning of Period                                                46,726                   67,382
    Cash and Cash Equivalents, End of Period                                                     $42,615                  $54,936
                                                                                                 =======                  =======

SOURCE Amtech Systems, Inc.


Source: PR Newswire