Amtech Reports First Quarter Fiscal 2025 Results

Rhea-AI Summary

Amtech Systems (NASDAQ: ASYS) reported strong Q1 fiscal 2025 results, exceeding guidance with net revenue of $24.4 million and adjusted EBITDA of $1.9 million. The company achieved GAAP net income of $0.3 million ($0.02 per share) and non-GAAP net income of $0.8 million ($0.06 per share).

Key financial metrics include cash position of $13.2 million, up from $11.1 million in September 2024, and operating cash flow of $2.9 million. Customer orders reached $18.1 million with a backlog of $19.0 million. The company's gross margin stood at 38.4%, with sequential revenue increasing 1% but decreasing 2% year-over-year.

For Q2 FY2025, Amtech projects revenues between $21-23 million with nominally positive adjusted EBITDA. Despite near-term challenges, management remains optimistic about long-term prospects in consumables and equipment for advanced mobility and packaging applications.

Positive

• Revenue of $24.4M exceeded guidance expectations
• Returned to profitability with GAAP net income of $0.3M
• Cash position improved to $13.2M from $11.1M quarter-over-quarter
• Generated positive operating cash flow of $2.9M
• Year-over-year increase of $1.8M in adjusted EBITDA
• Gross margin improved to 38.4% from 33.0% year-over-year

Negative

• Revenue declined 2% year-over-year
• Customer orders of $18.1M below quarterly revenue rate
• Q2 guidance indicates sequential revenue decline to $21-23M
• Gross margin decreased sequentially from 40.7% to 38.4%

Insights

Financial Analyst

The Q1 FY2025 results demonstrate Amtech's operational resilience amid challenging market conditions. The company achieved three significant improvements:

• Successful transition to profitability with $0.3 million GAAP net income, a notable turnaround from the $9.4 million loss in Q1 FY2024
• Strong cash management evidenced by $2.9 million operating cash flow and $13.2 million cash position
• Margin expansion to 38.4% through cost optimization initiatives

However, market headwinds are reflected in declining orders and backlog metrics, suggesting near-term growth constraints. The $18.1 million in new orders versus $24.4 million in revenue indicates a book-to-bill ratio below 1.0, typically signaling potential revenue pressure ahead.

The strategic focus on AI infrastructure and consumables business presents promising long-term opportunities. The consumables segment typically offers higher margins and more stable recurring revenue compared to equipment sales, which could help smooth out cyclical fluctuations. Management's emphasis on structural cost improvements positions the company to potentially emerge stronger when industry conditions improve.

The guidance for Q2 FY2025 suggests a 10-14% sequential revenue decline, reflecting ongoing semiconductor industry softness. However, the commitment to maintaining positive adjusted EBITDA despite lower revenue demonstrates effective cost management and operational discipline.

TEMPE, Ariz.--(BUSINESS WIRE)-- Amtech Systems, Inc. ("Amtech") (NASDAQ: ASYS), a manufacturer of equipment and consumables for semiconductor fabrication and packaging, today reported results for its first quarter ended December 31, 2024.

First Quarter Fiscal 2025 Financial and Operational Results:

• Net revenue of $24.4 million
• Cash of $13.2 million
• Cash provided by operations of $2.9 million
• GAAP net income of $0.3 million
• Non-GAAP net income of $0.8 million⁽¹⁾
• Adjusted EBITDA $1.9 million ⁽¹⁾
• Customer orders of $18.1 million
• Backlog of $19.0 million

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

“I'm pleased to report a strong first quarter that exceeded the high end of our guidance, with $24.4 million in revenue and $1.9 million in adjusted EBITDA. While industry softness remains a headwind, we continue to make progress on our operational excellence and cost optimization initiatives, evidenced by the $1.8 million year-over-year increase in adjusted EBITDA. With strong long-term growth drivers that include AI infrastructure investments and our initiatives to grow our consumables, parts and services revenue, we are well positioned to deliver profitable growth that should result in meaningful value creation for shareholders,” commented Mr. Bob Daigle, Chief Executive Officer of Amtech.

GAAP and Non-GAAP Financial Results

(in millions, except per share amounts)	Q1				Q4				Q1
	FY 2025				FY 2024				FY 2024
Revenues, net	$	24.4			$	24.1			$	24.9
Gross profit	$	9.4			$	9.8			$	8.2
Gross margin		38.4	%			40.7	%			33.0	%
Non-GAAP gross profit (1)	$	9.4			$	9.8			$	9.3
Non-GAAP gross margin (1)		38.4	%			40.7	%			37.5	%
GAAP net income (loss)	$	0.3			$	(0.5	)		$	(9.4	)
GAAP net income (loss) per diluted share	$	0.02			$	(0.04	)		$	(0.66	)
Non-GAAP net income (loss) (1)	$	0.8			$	(0.0	)		$	(0.6	)
Non-GAAP net income (loss) per diluted share (1)	$	0.06			$	(0.00	)		$	(0.04	)

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

Net revenues increased 1% sequentially from last quarter and decreased 2% from the first quarter of fiscal 2024. The sequential increase from last quarter is primarily due to increased sales of our diffusion and high temperature furnaces, partially offset by lower sales of our wafer cleaning equipment. The decrease from the prior year is primarily attributable to lower sales of our wafer cleaning equipment.

GAAP gross margin decreased by $0.4 million sequentially compared to last quarter due to a less favorable product mix. GAAP gross margin increased by $1.1 million dollars compared to the same prior year period. This is driven by better margin profiles and cost savings despite $0.5 million lower revenue and due to an intangible asset impairment of $0.8 million in Q1 2024.

Selling, General & Administrative (“SG&A”) expenses decreased $0.7 million sequentially from last quarter and decreased $0.5 million compared to the same prior year period. The decrease across both periods are primarily due to fixed cost reductions.

Research, Development and Engineering expenses decreased $0.1 million sequentially from last quarter and decreased $0.7 million compared to the same prior year period. The sequential decrease is due primarily to the timing of purchases related to specific projects. The decrease from prior year is attributable to development efforts in our Semiconductor Fabrication Solutions segment that did not recur.

GAAP net income for the first quarter of fiscal 2025 was $0.3 million, or 2 cents per share. This compares to GAAP net loss of $0.5 million, or 4 cents per share for the preceding quarter and GAAP net loss of $9.4 million, or 66 cents per share, for the first quarter of fiscal 2024.

Non-GAAP net income for the first quarter of fiscal 2025 was $0.8 million, or 6 cents per share. This compares to non-GAAP net loss of $7,000, or 0 cents per share for the preceding quarter and non-GAAP net loss of $0.6 million, or 4 cents per share, for the first quarter of fiscal 2024.

Unrestricted cash and cash equivalents at December 31, 2024, were $13.2 million, compared to $11.1 million at September 30, 2024, due primarily to strong accounts receivable collection and inventory management efforts during the quarter.

In discussing financial results for the three months ended December 31, 2024 and 2023 and the three months ended September 30, 2024, 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, gain on the sale of our Arizona headquarters, moving expenses, 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 second quarter ending March 31, 2025, we expect revenues in the range of $21 - 23 million with adjusted EBITDA nominally positive. Although the near-term outlook for revenue and earnings remains challenging, we remain confident that our long-term future prospects are strong for both our consumables and equipment serving advanced mobility and advanced packaging applications. We continue to optimize and reduce Amtech's structural costs. We believe these steps should 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.

Conference Call

Amtech Systems will host a conference call at 5:00 pm ET on Wednesday, February 5, 2025 to discuss our fiscal first quarter financial results. The call will be available to interested parties by dialing 1-800-717-1738. For international callers, please dial +1-646-307-1865. A live webcast of the conference call will be available in the Investor Relations section of Amtech’s website at: https://www.amtechsystems.com/investors/events.

A replay of the webcast will be available in the Investor Relations section of the company’s website at http://www.amtechsystems.com/conference.htm shortly after the conclusion of the call and will remain available for approximately 30 calendar days.

About Amtech Systems, Inc.

Amtech Systems, Inc. provides equipment, consumables and services for semiconductor wafer fabrication and device packaging. Our products are used in fabricating semiconductor devices, such as silicon carbide (SiC) and silicon (Si) power devices, digital and analog devices, power electronic packages, advanced semiconductor packages and electronic assemblies. We sell these products to semiconductor device and module manufacturers worldwide, particularly in Asia, North America and Europe.

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, long term future prospects, operating results, business strategies, projected costs, the optimization and reduction of structural 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, 2024, 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
		December 31, 2024				September 30, 2024				December 31, 2023
Amtech Systems, Inc.
Revenues, net		$	24,385			$	24,112			$	24,920
GAAP gross profit		$	9,363			$	9,803			$	8,219
Non-GAAP gross profit		$	9,363			$	9,803			$	9,341
GAAP gross margin			38	%			41	%			33	%
Non-GAAP gross margin			38	%			41	%			37	%
Operating income (loss)		$	339			$	26			$	(8,934	)
New orders		$	18,070			$	17,587			$	23,105
Backlog		$	18,998			$	25,312			$	49,979
Thermal Processing Solutions Segment
Revenues, net		$	18,684			$	16,155			$	17,527
GAAP gross profit		$	7,329			$	6,756			$	6,159
Non-GAAP gross profit		$	7,329			$	6,756			$	6,159
GAAP gross margin			39	%			42	%			35	%
Non-GAAP gross margin			39	%			42	%			35	%
Operating income		$	2,874			$	2,530			$	1,081
New orders		$	13,167			$	9,328			$	17,129
Backlog		$	15,328			$	20,845			$	44,835
Semiconductor Fabrication Solutions Segment
Revenues, net		$	5,701			$	7,957			$	7,393
GAAP gross profit		$	2,034			$	3,047			$	2,060
Non-GAAP gross profit		$	2,034			$	3,047			$	3,182
GAAP gross margin			36	%			38	%			28	%
Non-GAAP gross margin			36	%			38	%			43	%
Operating (loss) income		$	(358	)		$	447			$	(7,844	)
New orders		$	4,903			$	8,259			$	5,976
Backlog		$	3,670			$	4,467			$	5,144

AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
(Unaudited)
Consolidated Statements of Operations
(in thousands, except per share data)
		Three Months Ended December 31,
		2024				2023
Revenues, net		$	24,385			$	24,920
Cost of sales			15,022				15,852
Intangible asset impairment			—				849
Gross profit			9,363				8,219
Selling, general and administrative			8,051				8,567
Research, development and engineering			876				1,588
Loss on disposal of fixed assets			24				—
Goodwill impairment			—				6,370
Intangible asset impairment			—				430
Severance expense			73				198
Operating income (loss)			339				(8,934	)
Interest income			5				19
Interest expense			(7	)			(198	)
Foreign currency gain (loss)			401				(187	)
Other			19				—
Income (loss) before income tax provision			757				(9,300	)
Income tax provision (benefit)			445				58
Net income (loss)		$	312			$	(9,358	)
Income (Loss) Per Share:
Net income (loss) per basic share		$	0.02			$	(0.66	)
Net income (loss) per diluted share		$	0.02			$	(0.66	)
Weighted average shares outstanding:
Basic			14,272				14,188
Diluted			14,300				14,188

AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
(Unaudited)
Consolidated Balance Sheets
(in thousands, except share data)
		December 31, 2024				September 30, 2024
Assets
Current Assets
Cash and cash equivalents		$	13,214			$	11,086
Accounts receivable (less allowance for credit losses of $117 and $103 at December 31, 2024 and September 30, 2024, respectively)			20,822				21,989
Inventories			25,611				26,867
Income taxes receivable			95				132
Other current assets			4,525				4,302
Total current assets			64,267				64,376
Property, Plant and Equipment - Net			11,076				11,647
Right-of-Use Assets - Net			15,978				16,596
Intangible Assets - Net			3,876				4,004
Goodwill			21,261				21,261
Deferred Income Taxes - Net			185				185
Other Assets			1,133				884
Total Assets		$	117,776			$	118,953
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable		$	6,888			$	5,356
Accrued compensation and related taxes			2,254				2,057
Accrued warranty expense			513				602
Other accrued liabilities			447				477
Current maturities of finance lease liabilities and long-term debt			102				101
Current portion of long-term operating lease liabilities			2,098				2,041
Contract liabilities			6,658				8,965
Total current liabilities			18,960				19,599
Finance Lease Liabilities and Long-Term Debt			161				189
Long-Term Operating Lease Liabilities			14,666				15,240
Income Taxes Payable			1,488				1,510
Other Long-Term Liabilities			59				57
Total Liabilities			35,334				36,595
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: 14,289,066 and 14,258,879 at December 31, 2024 and September 30, 2024, respectively			143				143
Additional paid-in capital			128,949				128,466
Accumulated other comprehensive loss			(1,431	)			(720	)
Retained deficit			(45,219	)			(45,531	)
Total Shareholders’ Equity			82,442				82,358
Total Liabilities and Shareholders’ Equity		$	117,776			$	118,953

AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
(Unaudited)
Consolidated Statements of Cash Flows
(in thousands)
		Three Months Ended December 31,
		2024				2023
Operating Activities
Net income (loss)		$	312			$	(9,358	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization			752				852
Write-down of inventory			632				572
Goodwill impairment			—				6,370
Intangible asset impairment			—				1,279
Deferred income taxes			—				(25	)
Non-cash share-based compensation expense			333				317
Loss on disposal of fixed assets			24				—
Provision for allowance for credit losses			19				(42	)
Changes in operating assets and liabilities:
Accounts receivable			1,148				5,114
Inventories			624				243
Other assets			146				1,783
Accounts payable			1,608				(1,661	)
Accrued income taxes			14				(222	)
Accrued and other liabilities			(438	)			(1,751	)
Contract liabilities			(2,307	)			1,500
Net cash provided by operating activities			2,867				4,971
Investing Activities
Purchases of property, plant and equipment			(143	)			(756	)
Net cash used in investing activities			(143	)			(756	)
Financing Activities
Proceeds from the exercise of stock options			150				28
Payments on long-term debt			(24	)			(556	)
Net cash provided by (used in) financing activities			126				(528	)
Effect of Exchange Rate Changes on Cash and Cash Equivalents			(722	)			213
Net Increase in Cash and Cash Equivalents			2,128				3,900
Cash and Cash Equivalents, Beginning of Period			11,086				13,133
Cash and Cash Equivalents, End of Period		$	13,214			$	17,033

AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
(Unaudited)
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except per share data)
		Three Months Ended
		December 31, 2024				September 30, 2024				December 31, 2023
Amtech Systems, Inc. Gross Profit:
GAAP gross profit		$	9,363			$	9,803			$	8,219
Write-down of inventory related to polishing equipment			-				-				273
Intangible asset impairment			-				-				849
Non-GAAP gross profit		$	9,363			$	9,803			$	9,341
GAAP gross margin			38	%			41	%			33	%
Non-GAAP gross margin			38	%			41	%			37	%
Thermal Processing Solutions Segment Gross Profit:
GAAP gross profit		$	7,329			$	6,756			$	6,159
Write-down of inventory related to polishing equipment			-				-				-
Intangible asset impairment			-				-				-
Non-GAAP gross profit		$	7,329			$	6,756			$	6,159
GAAP gross margin			39	%			42	%			35	%
Non-GAAP gross margin			39	%			42	%			35	%
Semiconductor Fabrication Solutions Segment Gross Profit:
GAAP gross profit		$	2,034			$	3,047			$	2,060
Write-down of inventory related to polishing equipment			-				-				273
Intangible asset impairment			-				-				849
Non-GAAP gross profit		$	2,034			$	3,047			$	3,182
GAAP gross margin			36	%			38	%			28	%
Non-GAAP gross margin			36	%			38	%			43	%

AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
(Unaudited)
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except per share data)
		Three Months Ended
		December 31, 2024			September 30, 2024				December 31, 2023
Consolidated Net Income (Loss):
GAAP net income (loss)		$	312		$	(536	)		$	(9,358	)
Write-down of inventory related to polishing equipment			-			-				273
Amortization of acquired intangible assets			108			154				287
Stock compensation expense			333			375				317
Goodwill impairment			-			-				6,370
Intangible asset impairment			-			-				1,279
Severance expense			73			-				198
Non-GAAP net income (loss)		$	826		$	(7	)		$	(634	)
Net Income (Loss) per Diluted Share:
GAAP net income (loss) per diluted share		$	0.02		$	(0.04	)		$	(0.66	)
Write-down of inventory related to polishing equipment			-			-				0.02
Amortization of acquired intangible assets			0.01			0.01				0.02
Stock compensation expense			0.02			0.03				0.02
Goodwill impairment			-			-				0.45
Intangible asset impairment			-			-				0.09
Severance expense			0.01			-				0.02
Non-GAAP net income (loss) per diluted share		$	0.06		$	(0.00	)		$	(0.04	)

AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
(Unaudited)
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
(in thousands, except per share data)
		Three Months Ended December 31, 2024
Amtech Systems, Inc. EBITDA:
GAAP net income		$	312
Interest income			(5	)
Interest expense			7
Income tax provision			445
Depreciation and amortization expense			752
EBITDA			1,511
Stock compensation expense			333
Severance expense			73
Adjusted EBITDA		$	1,917

 

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Amtech Systems, Inc.

Wade M. Jenke

Vice President and Chief Financial Officer

irelations@amtechsystems.com



Sapphire Investor Relations, LLC

Erica Mannion and Michael Funari

(617) 542-6180

irelations@amtechsystems.com

Source: Amtech Systems, Inc.

FAQ

What were Amtech Systems (ASYS) Q1 2025 earnings per share?

Amtech reported GAAP earnings of $0.02 per share and non-GAAP earnings of $0.06 per share for Q1 2025.

How much revenue did ASYS generate in Q1 2025?

Amtech Systems generated net revenue of $24.4 million in Q1 fiscal 2025.

What is ASYS's revenue guidance for Q2 2025?

Amtech Systems expects Q2 2025 revenues to be in the range of $21-23 million.

How much cash does ASYS have as of December 31, 2024?

Amtech Systems had $13.2 million in unrestricted cash and cash equivalents as of December 31, 2024.

What was ASYS's order backlog at the end of Q1 2025?

Amtech Systems reported a backlog of $19.0 million at the end of Q1 2025.