Amtech Reports Second Quarter 2024 Results

Rhea-AI Summary

Amtech Systems, Inc. reported second quarter fiscal 2024 results with net revenue of $25.4 million, GAAP operating income of $1.4 million, and net proceeds of $2.5 million from the sale of corporate headquarters building. Despite market challenges, adjusted EBITDA was $0.8 million. The company took cost-cutting measures to align with market demand and expects revenues of $22 - 25 million for the third fiscal quarter. Amtech remains confident in future prospects by reducing structural costs and enhancing profitability.

Positive

• Net revenue of $25.4 million in the second quarter fiscal 2024.

• Adjusted EBITDA of $0.8 million despite market challenges.

• Cost-cutting measures to reduce structural costs by $6 million annually.

• Expecting revenues of $22 - 25 million for the third fiscal quarter.

• Confidence in future prospects by enhancing profitability.

Negative

• Non-GAAP net loss of $0.2 million in the second quarter fiscal 2024.

• Decreased revenue compared to the same period in fiscal 2023.

• GAAP gross margin negatively affected by product mix and increased material costs.

• Market demand challenges impacting sales across product portfolio.

• Operating results may be significantly impacted by the semiconductor market and logistical challenges.

Insights

Financial Analyst

Amtech Systems reported a sequential revenue increase of 2% but a significant year-over-year decline of 24%, indicating potential challenges in market demand. Despite this downturn, they achieved a GAAP operating income of $1.4 million, recovering from a substantial operating loss the previous quarter. This resilience could be a signal of effective cost management and operational improvements, especially after their corporate measures to reduce structural costs by approximately $6 million annually, which investors may view positively as it can enhance profitability through market cycles.

The sale of the corporate headquarters yielding $2.5 million in net proceeds and debt repayments of $6.4 million suggest a strategic approach to capital management. These actions contribute to a net cash position of $8.8 million, that provides a cushion for future operational flexibility. However, investors should be circumspect about the non-GAAP net loss and the expected 'nominally positive' adjusted EBITDA in the upcoming quarter, which could imply continuing pressure on profitability. Amtech's link to the cyclical semiconductor industry and exposure to currency risk, with portions of their income in Renminbis, are important variables for investors to consider as they may influence future financial performance.

Market Research Analyst

The semiconductor sector is known for its cyclical nature and Amtech's results reflect this trend, with a downturn in sales hinting at a broader market slowdown. The company's backlog of $44.3 million might provide some stability, but the softness in overall market demand casts uncertainty on the timeline for conversion of this backlog to revenue. Amtech's focus on aligning their organization to current market demand and the mention of serving advanced mobility and advanced packaging applications suggest strategic positioning to capitalize on future market recoveries.

Investors should note Amtech's confidence in the long-term prospects of their consumables and equipment despite the near-term revenue and earnings challenges. This outlook, coupled with the structural cost reductions, indicates Amtech's strategic focus on long-term growth over immediate gains, a factor that typically appeals to patient investors with a longer investment horizon. Their emphasis on operational effectiveness, as well as improved product pricing to match value, could facilitate better performance during market upturns.

TEMPE, Ariz.--(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 second quarter ended March 31, 2024.

Second Quarter Fiscal 2024 Financial and Operational Results:

• Net revenue of $25.4 million
• GAAP operating income of $1.4 million
• Net proceeds of $2.5 million from sale of corporate headquarters building
• Debt payments of $6.4 million, ending the quarter with net cash position of $8.8 million
• Non-GAAP operating income of $0.2 million ⁽¹⁾
• GAAP net income of $1.0 million
• Non-GAAP net loss of $0.2 million ⁽¹⁾
• Customer orders of $19.8 million
• Backlog of $44.3 million

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

“In the second quarter of fiscal 2024 we benefited from improvements in our cost structure and operational effectiveness. We exceeded the high-end of our guidance range with revenue of $25.4 million and, more importantly, we delivered adjusted EBITDA of $0.8 million despite continued softness in overall market demand. Over the past few quarters, we have better aligned the size of our organization to support current market demand and believe we have positioned the company to deliver strong operating results as the broader semiconductor market recovers,” commented Mr. Bob Daigle, Chief Executive Officer of Amtech.

GAAP and Non-GAAP Financial Results

(in millions, except per share amounts)	Q2				Q1				Q2				6 Months				6 Months
	FY 2024				FY 2024				FY 2023				2024				2023
Revenues, net	$	25.4			$	24.9			$	33.3			$	50.4			$	54.9
Gross profit	$	8.5			$	8.2			$	13.5			$	16.7			$	21.8
Gross margin		33.2	%			33.0	%			40.4	%			33.1	%			39.7	%
Non-GAAP gross profit (1)	$	8.6			$	9.3			$	13.5			$	18.0			$	21.8
Non-GAAP gross margin (1)		33.9	%			37.5	%			40.4	%			35.7	%			39.7	%
GAAP operating income (loss)	$	1.4			$	(8.9	)		$	0.5			$	(7.6	)		$	(2.2	)
GAAP operating margin		5.4	%			-35.9	%			1.6	%			-15.0	%			-3.9	%
Non-GAAP operating income (loss) (1)	$	0.2			$	(0.2	)		$	3.2			$	(0.0	)		$	2.5
Non-GAAP operating margin (1)		0.7	%			-0.8	%			9.5	%			0.0	%			4.5	%
GAAP net income (loss)	$	1.0			$	(9.4	)		$	3.2			$	(8.4	)		$	0.5
GAAP net income (loss) per diluted share	$	0.07			$	(0.66	)		$	0.23			$	(0.59	)		$	0.03
Non-GAAP net (loss) income (1)	$	(0.2	)		$	(0.6	)		$	2.7			$	(0.8	)		$	1.9
Non-GAAP net (loss) income per diluted share (1)	$	(0.01	)		$	(0.04	)		$	0.19			$	(0.06	)		$	0.14
(1) See GAAP to non-GAAP reconciliation in schedules following this release.

Net revenues increased 2% sequentially and decreased 24% from the second quarter of fiscal 2023. The sequential increase is primarily due to increased consumable sales in our Material and Substrate segment, as customers update their buying patterns and adjust inventory levels. The decrease from prior year is primarily attributable to lower sales across most of our product portfolio due to a slow-down in the broader semiconductor market.

In the second quarter of fiscal 2024, GAAP gross margin was flat sequentially and decreased compared to the same prior year period. In our semiconductor segment, GAAP gross margin was negatively affected by product mix and increased material costs, both primarily attributed to shipments of our horizontal diffusion furnaces. GAAP gross margin in our Material and Substrate segment increased sequentially and compared to the same prior year period due primarily to a more favorable product mix, with increased consumable sales partially offset by lower equipment sales. Non-GAAP gross margin decreased sequentially and compared to the same prior year period due primarily to a less favorable product mix and increased material costs, both primarily attributed to shipments of our horizontal diffusion furnaces.

Selling, General & Administrative (“SG&A”) expenses decreased $0.3 million on a sequential basis and decreased $3.2 million compared to the prior year period. The sequential decrease is due primarily to reductions in labor expenses and lower commissions and shipping expenses. Compared to the same prior year period, the decrease is due primarily to $1.5 million of lower acquisition expenses, $0.6 million of lower amortization expense, and reductions in labor, commissions and shipping expenses.

Research, Development and Engineering expenses decreased $0.7 million sequentially and decreased $0.6 million compared to the same prior year period due primarily to the timing of purchases related to specific projects in our Semiconductor segment.

During the second quarter of fiscal 2024, we sold our corporate headquarters building in Tempe, Arizona for a gain of $2.2 million and net cash proceeds of $2.5 million.

GAAP operating income was $1.4 million, compared to GAAP operating loss of $8.9 million in the first quarter of fiscal 2024 and GAAP operating income of $0.5 million in the same prior year period.

Non-GAAP operating income was $0.2 million, compared to non-GAAP operating loss of $0.2 million in the first quarter of fiscal 2024 and non-GAAP operating income of $3.2 million in the same prior year period.

GAAP net income for the second quarter of fiscal 2024 was $1.0 million, or 7 cents per share. This compares to GAAP net loss of $9.4 million, or 66 cents per share, for the preceding quarter and GAAP net income of $3.2 million, or 23 cents per share, for the second quarter of fiscal 2023.

Non-GAAP net loss for the second quarter of fiscal 2024 was $0.2 million, or 1 cent per share. This compares to non-GAAP net loss of $0.6 million, or 4 cents per share, for the preceding quarter and non-GAAP net income of $2.7 million, or 19 cents per share, for the second quarter of fiscal 2023.

Unrestricted cash and cash equivalents at March 31, 2024, were $13.0 million, compared to $13.1 million at September 30, 2023. Debt payments during the three months ended March 31, 2024 were $6.4 million. Net cash as of March 31, 2024 was $8.8 million compared to $7.0 million as of December 31, 2023.

In discussing financial results for the three and six months ended March 31, 2024 and 2023 and the three months ended December 31, 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 the sale of our Arizona headquarters, 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 third fiscal quarter ending June 30, 2024, we expect revenues in the range of $22 - 25 million with adjusted EBITDA nominally positive, which includes some expenses and production downtime with the BTU facility move. Although the near-term outlook for revenue and earnings remains challenging, we remain confident that the future prospects are strong for both our consumables and equipment serving advanced mobility and advanced packaging applications. We took actions during the first and second quarters of fiscal 2024, which will reduce Amtech's structural costs by approximately $6 million annually and better align product pricing with value. 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, May 8, 2024 to discuss our fiscal second quarter financial results. The call will be available to interested parties by dialing 1-888-886-7786. For international callers, please dial +1-416-764-8658. 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. 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, 2023, 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														Six Months Ended March 31,
		March 31, 2024				December 31, 2023				March 31, 2023						2024				2023
Amtech Systems, Inc.
Revenues, net		$	25,433			$	24,920			$	33,310					$	50,353			$	54,868
GAAP gross profit		$	8,451			$	8,219			$	13,470					$	16,670			$	21,773
Non-GAAP gross profit		$	8,626			$	9,341			$	13,470					$	17,967			$	21,773
GAAP gross margin			33	%			33	%			40	%					33	%			40	%
Non-GAAP gross margin			34	%			37	%			40	%					36	%			40	%
GAAP operating income (loss)		$	1,363			$	(8,934	)		$	519					$	(7,571	)		$	(2,161	)
Non-GAAP operating income (loss)		$	188			$	(210	)		$	3,162					$	(22	)		$	2,492
New orders		$	19,771			$	23,105			$	34,266					$	42,876			$	59,495
Backlog		$	44,316			$	49,979			$	65,838					$	44,316			$	65,838
Semiconductor Segment
Revenues, net		$	17,441			$	17,527			$	22,047					$	34,968			$	38,934
GAAP gross profit		$	5,040			$	6,159			$	8,931					$	11,199			$	15,103
Non-GAAP gross profit		$	5,040			$	6,159			$	8,931					$	11,199			$	15,103
GAAP gross margin			29	%			35	%			41	%					32	%			39	%
Non-GAAP gross margin			29	%			35	%			41	%					32	%			39	%
GAAP operating income		$	896			$	1,081			$	2,950					$	1,977			$	3,819
Non-GAAP operating income		$	896			$	1,192			$	2,950					$	2,088			$	3,819
New orders		$	12,061			$	17,129			$	24,606					$	29,189			$	45,690
Backlog		$	39,455			$	44,835			$	54,767					$	39,455			$	54,767
Material and Substrate Segment
Revenues, net		$	7,992			$	7,393			$	11,263					$	15,385			$	15,934
GAAP gross profit		$	3,411			$	2,060			$	4,539					$	5,471			$	6,670
Non-GAAP gross profit		$	3,586			$	3,182			$	4,539					$	6,768			$	6,670
GAAP gross margin			43	%			28	%			40	%					36	%			42	%
Non-GAAP gross margin			45	%			43	%			40	%					44	%			42	%
GAAP operating income (loss)		$	900			$	(7,844	)		$	297					$	(6,943	)		$	930
Non-GAAP operating income		$	1,300			$	452			$	1,938					$	1,753			$	2,571
New orders		$	7,710			$	5,976			$	9,660					$	13,687			$	13,805
Backlog		$	4,861			$	5,144			$	11,071					$	4,861			$	11,071

AMTECH SYSTEMS, INC. (NASDAQ: ASYS) (Unaudited)
Consolidated Statements of Operations (in thousands, except per share data)
		Three Months Ended March 31,								Six Months Ended March 31,
		2024				2023				2024				2023
Revenues, net		$	25,433			$	33,310			$	50,353			$	54,868
Cost of sales			16,982				19,840				32,834				33,095
Intangible asset impairment			—				—				849				—
Gross profit			8,451				13,470				16,670				21,773
Selling, general and administrative			8,252				11,434				16,819				20,624
Research, development and engineering			921				1,517				2,509				2,910
Gain on sale of fixed assets			(2,197	)			—				(2,197	)			—
Goodwill impairment			—				—				6,370				—
Intangible asset impairment			—				—				430				—
Severance expense			112				—				310				400
Operating income (loss)			1,363				519				(7,571	)			(2,161	)
Interest income			14				49				33				339
Interest expense			(193	)			(155	)			(391	)			(157	)
Foreign currency loss			—				(168	)			(187	)			(515	)
Other			9				13				9				4
Income (loss) before income tax provision			1,193				258				(8,107	)			(2,490	)
Income tax provision (benefit)			223				(2,946	)			281				(2,950	)
Net income (loss)		$	970			$	3,204			$	(8,388	)		$	460
Income (Loss) Per Share:
Net income (loss) per basic share		$	0.07			$	0.23			$	(0.59	)		$	0.03
Net income (loss) per diluted share		$	0.07			$	0.23			$	(0.59	)		$	0.03
Weighted average shares outstanding:
Basic			14,197				14,028				14,193				14,018
Diluted			14,209				14,157				14,193				14,142

AMTECH SYSTEMS, INC. (NASDAQ: ASYS) (Unaudited)
Consolidated Balance Sheets (in thousands, except share data)
		March 31, 2024				September 30, 2023
Assets
Current Assets
Cash and cash equivalents		$	13,000			$	13,133
Accounts receivable (less allowance for credit losses of $115 and $146 at March 31, 2024 and September 30, 2023, respectively)			21,230				26,474
Inventories			31,308				34,845
Income taxes receivable			457				632
Other current assets			4,304				6,105
Total current assets			70,299				81,189
Property, Plant and Equipment - Net			9,476				9,695
Right-of-Use Assets - Net			9,784				11,217
Intangible Assets - Net			4,352				6,114
Goodwill			21,261				27,631
Deferred Income Taxes - Net			123				101
Other Assets			1,179				1,074
Total Assets		$	116,474			$	137,021
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable		$	6,741			$	10,815
Accrued compensation and related taxes			2,085				3,481
Accrued warranty expense			763				965
Other accrued liabilities			1,133				1,551
Current maturities of finance lease liabilities and long-term debt			4,243				2,265
Current portion of long-term operating lease liabilities			1,934				2,623
Contract liabilities			9,015				8,018
Total current liabilities			25,914				29,718
Finance Lease Liabilities and Long-Term Debt			65				8,422
Long-Term Operating Lease Liabilities			8,195				8,894
Income Taxes Payable			1,357				1,575
Other Long-Term Liabilities			52				47
Total Liabilities			35,583				48,656
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: 14,208,795 and 14,185,977 at March 31, 2024 and September 30, 2023, respectively			142				142
Additional paid-in capital			127,658				126,963
Accumulated other comprehensive loss			(1,476	)			(1,695	)
Retained deficit			(45,433	)			(37,045	)
Total Shareholders’ Equity			80,891				88,365
Total Liabilities and Shareholders’ Equity		$	116,474			$	137,021

AMTECH SYSTEMS, INC. (NASDAQ: ASYS) (Unaudited)
Consolidated Statements of Cash Flows (in thousands)
		Six Months Ended March 31,
		2024				2023
Operating Activities
Net (loss) income		$	(8,388	)		$	460
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation and amortization			1,572				1,887
Write-down of inventory			940				517
Goodwill impairment			6,370				—
Intangible asset impairment			1,279				—
Deferred income taxes			(22	)			(3,172	)
Non-cash share-based compensation expense			667				338
Gain on sale of property, plant and equipment			(2,197	)			—
Provision for allowance for credit losses			—				156
Changes in operating assets and liabilities:
Accounts receivable			5,244				1,113
Inventories			2,617				(4,631	)
Other assets			3,163				2,215
Accounts payable			(3,462	)			(1,497	)
Accrued income taxes			(42	)			(1,192	)
Accrued and other liabilities			(3,432	)			(2,289	)
Contract liabilities			998				768
Net cash provided by (used in) operating activities			5,307				(5,327	)
Investing Activities
Purchases of property, plant and equipment			(1,976	)			(976	)
Proceeds from the sale of property, plant and equipment			2,700				—
Acquisition, net of cash and cash equivalents acquired			—				(35,498	)
Net provided by provided by (used in) investing activities			724				(36,474	)
Financing Activities
Proceeds from the exercise of stock options			28				331
Payments on long-term debt			(6,413	)			(412	)
Borrowings on long-term debt			—				12,000
Net cash (used in) provided by financing activities			(6,385	)			11,919
Effect of Exchange Rate Changes on Cash and Cash Equivalents			221				741
Net Decrease in Cash and Cash Equivalents			(133	)			(29,141	)
Cash and Cash Equivalents, Beginning of Period			13,133				46,874
Cash and Cash Equivalents, End of Period		$	13,000			$	17,733

AMTECH SYSTEMS, INC. (NASDAQ: ASYS) (Unaudited)
Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except per share data)
		Three Months Ended														Six Months Ended March 31,
		March 31, 2024				December 31, 2023				March 31, 2023						2024				2023
Amtech Systems, Inc. Gross Profit:
GAAP gross profit		$	8,451			$	8,219			$	13,470					$	16,670			$	21,773
Write-down of inventory related to polishing equipment			175				273				-						448				-
Intangible asset impairment			-				849				-						849				-
Non-GAAP gross profit		$	8,626			$	9,341			$	13,470					$	17,967			$	21,773
GAAP gross margin			33	%			33	%			40	%					33	%			40	%
Non-GAAP gross margin			34	%			37	%			40	%					36	%			40	%
Semiconductor Segment Gross Profit:
GAAP gross profit		$	5,040			$	6,159			$	8,931					$	11,199			$	15,103
Write-down of inventory related to polishing equipment			-				-				-						-				-
Intangible asset impairment			-				-				-						-				-
Non-GAAP gross profit		$	5,040			$	6,159			$	8,931					$	11,199			$	15,103
GAAP gross margin			29	%			35	%			41	%					32	%			39	%
Non-GAAP gross margin			29	%			35	%			41	%					32	%			39	%
Material and Substrate Segment Gross Profit:
GAAP gross profit		$	3,411			$	2,060			$	4,539					$	5,471			$	6,670
Write-down of inventory related to polishing equipment			175				273				-						448				-
Intangible asset impairment			-				849				-						849				-
Non-GAAP gross profit		$	3,586			$	3,182			$	4,539					$	6,768			$	6,670
GAAP gross margin			43	%			28	%			40	%					36	%			42	%
Non-GAAP gross margin			45	%			43	%			40	%					44	%			42	%

AMTECH SYSTEMS, INC. (NASDAQ: ASYS) (Unaudited)
Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except per share data)
		Three Months Ended														Six Months Ended March 31,
		March 31, 2024				December 31, 2023				March 31, 2023						2024				2023
Amtech Systems, Inc. Operating Income (Loss):
GAAP operating income (loss)		$	1,363			$	(8,934	)		$	519					$	(7,571	)		$	(2,161	)
Gain on sale of fixed assets			(2,197	)			-				-						(2,197	)			-
Building move expense			231				-				-						231				-
Acquisition expenses			-				-				1,524						-				2,970
Write-down of inventory related to polishing equipment			175				273				-						448				-
Amortization of acquired intangible assets			154				287				945						441				945
Stock compensation expense			350				317				174						667				338
Goodwill impairment			-				6,370				-						6,370				-
Intangible asset impairment			-				1,279				-						1,279				-
Severance expense			112				198				-						310				400
Non-GAAP operating income (loss)		$	188			$	(210	)		$	3,162					$	(22	)		$	2,492
GAAP operating margin			5.4	%			(35.9	)%			1.6	%					(15.0	)%			(3.9	)%
Non-GAAP operating margin			0.7	%			(0.8	)%			9.5	%					(0.0	)%			4.5	%
Semiconductor Segment Operating Income:
GAAP operating income		$	896			$	1,081			$	2,950					$	1,977			$	3,819
Severance expense			-				111				-						111				-
Non-GAAP operating income		$	896			$	1,192			$	2,950					$	2,088			$	3,819
Material and Substrate Segment Operating Income (Loss):
GAAP operating income (loss)		$	900			$	(7,844	)		$	297					$	(6,943	)		$	930
Acquisition expenses			-				-				696						-				696
Write-down of inventory related to polishing equipment			175				273				-						448				-
Amortization of acquired intangible assets			154				287				945						441				945
Goodwill impairment			-				6,370				-						6,370				-
Intangible asset impairment			-				1,279				-						1,279				-
Severance expense			71				87				-						158				-
Non-GAAP operating income		$	1,300			$	452			$	1,938					$	1,753			$	2,571

AMTECH SYSTEMS, INC. (NASDAQ: ASYS) (Unaudited)
Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except per share data)
		Three Months Ended														Six Months Ended March 31,
		March 31, 2024				December 31, 2023				March 31, 2023						2024				2023
Consolidated Net Income (Loss):
GAAP net income (loss)		$	970			$	(9,358	)		$	3,204					$	(8,388	)		$	460
Gain on sale of fixed assets			(2,197	)			-				-						(2,197	)			-
Building move expense			231				-				-						231				-
Acquisition expenses			-				-				1,524						-				2,970
Write-down of inventory related to polishing equipment			175				273				-						448				-
Amortization of acquired intangible assets			154				287				945						441				945
Stock compensation expense			350				317				174						667				338
Goodwill impairment			-				6,370				-						6,370				-
Intangible asset impairment			-				1,279				-						1,279				-
Severance expense			112				198				-						310				400
Income tax provision related to acquisition			-				-				(3,164	)					-				(3,164	)
Non-GAAP net (loss) income		$	(205	)		$	(634	)		$	2,683					$	(839	)		$	1,949
Net (Loss) Income per Diluted Share:
GAAP net income (loss) per diluted share		$	0.07			$	(0.66	)		$	0.23					$	(0.59	)		$	0.03
Gain on sale of fixed assets			(0.15	)			-				-						(0.15	)			-
Building move expense			0.02				-				-						0.01				-
Acquisition expenses			-				-				0.11						-				0.21
Write-down of inventory related to polishing equipment			0.01				0.02				-						0.03				-
Amortization of acquired intangible assets			0.01				0.02				0.06						0.03				0.07
Stock compensation expense			0.02				0.02				0.01						0.05				0.02
Goodwill impairment			-				0.45				-						0.45				-
Intangible asset impairment			-				0.09				-						0.09				-
Severance expense			0.01				0.02				-						0.02				0.03
Income tax provision related to acquisition			-				-				(0.22	)					-				(0.22	)
Non-GAAP net (loss) income per diluted share		$	(0.01	)		$	(0.04	)		$	0.19					$	(0.06	)		$	0.14

AMTECH SYSTEMS, INC. (NASDAQ: ASYS) (Unaudited)
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA (in thousands, except per share data)
		Three Months Ended March 31, 2024				Six Months Ended March 31, 2024
Amtech Systems, Inc. EBITDA:
GAAP net income (loss)		$	970			$	(8,388	)
Interest income			(14	)			(33	)
Interest expense			193				391
Income tax provision			223				281
Depreciation and amortization expense			720				1,572
EBITDA			2,092				(6,177	)
Gain on sale of fixed assets			(2,197	)			(2,197	)
Building move expense			231				231
Write-down of inventory related to polishing equipment			175				448
Stock compensation expense			350				667
Goodwill impairment			-				6,370
Intangible asset impairment			-				1,279
Severance expense			112				310
Adjusted EBITDA		$	763			$	931

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240508230607/en/

Amtech Systems, Inc.

Lisa D. Gibbs

Chief Financial Officer

(480) 360-3756

irelations@amtechsystems.com

Sapphire Investor Relations, LLC

Erica Mannion and Mike Funari

(617) 542-6180

irelations@amtechsystems.com

Source: Amtech Systems, Inc.

FAQ

What was Amtech Systems' net revenue in the second quarter of fiscal 2024?

Amtech Systems reported net revenue of $25.4 million in the second quarter of fiscal 2024.

What were Amtech Systems' GAAP operating income and net proceeds from the sale of corporate headquarters building in the second quarter of fiscal 2024?

Amtech Systems reported GAAP operating income of $1.4 million and net proceeds of $2.5 million from the sale of corporate headquarters building in the second quarter of fiscal 2024.

What were Amtech Systems' adjusted EBITDA and revenue expectations for the third fiscal quarter ending June 30, 2024?

Amtech Systems reported adjusted EBITDA of $0.8 million and expects revenues in the range of $22 - 25 million for the third fiscal quarter ending June 30, 2024.

How did Amtech Systems address market challenges in the second quarter of fiscal 2024?

Amtech Systems took cost-cutting measures to reduce structural costs by $6 million annually and aligned product pricing with value in the second quarter of fiscal 2024.

What actions did Amtech Systems take to enhance profitability in the future?

Amtech Systems reduced structural costs by $6 million annually and remains confident in future prospects by enhancing profitability through market cycles.