Amtech Reports Significantly Higher Revenue and Earnings for Q3 Fiscal 2017

TEMPE, Ariz., Aug. 9, 2017 /PRNewswire/ -- Amtech Systems, Inc. (NASDAQ: ASYS), a global supplier of production equipment and related supplies for the solar, semiconductor, and LED markets, today reported results for its third fiscal quarter ending June 30, 2017.

Third Quarter Fiscal 2017 Financial and Operational Highlights:

• Net revenues of $47.8 million (solar $29.0 million)
• Net income of $3.3 million
• Diluted earnings per share of $0.25
• Customer orders of $79.9 million (solar $54.2 million)
• Quarter-end backlog of $125.7 million (solar $98.2 million)
• Book to bill ratio of 1.7:1 (1.9:1 solar)
• Unrestricted cash of $39.2 million

Mr. Fokko Pentinga, Chief Executive Officer of Amtech, commented, "We are pleased to report profitable growth with net revenue of $47.8 million, net income of $3.3 million, and EPS of $0.25, our best performance since our solar business unit peaked in the third and fourth fiscal quarters of 2011.  During the quarter our semiconductor segment revenue and earnings improved as the semiconductor and electronics industries are in a cycle of increased capital spending.  While all segments performed well in the quarter, we are seeing the greatest improvement in the solar growth segment. Our fiscal year-to-date orders were $183 million (solar $117 million) with a backlog at June 30, 2017 of $125.7 million, giving us good visibility for the coming quarters."

Mr. Pentinga continued, "Our n-type bi-facial solar cell technologies are driving our participation in what appears to be a technology focused buying cycle in the solar industry.  With our ongoing investment in both n-type and PERC we have continuously improved cell efficiency and production throughput with our products and technology solutions."

At June 30, 2017, our total order backlog was $125.7 million (solar $98.2 million), compared to total backlog of $87.4 million (solar $66.9 million) at March 31, 2017. Backlog includes deferred revenue and customer orders that are expected to ship within the next 12 months. 

Net revenue for the third quarter of fiscal 2017 was $47.8 million compared to $32.9 million in the preceding quarter and $33.3 million in the third quarter of fiscal 2016. The sequential increase and the increase from the prior year quarter are due primarily to shipments relating to the large turn-key order, as well as increased shipments of our semiconductor equipment.

Gross margin in the third quarter of fiscal 2017 was 32%, compared to 25% in the preceding quarter and 29% in the third quarter of fiscal 2016. Sequentially, gross margin increased primarily due to higher sales volumes, favorable product mix, and a lower net deferral of profit. The higher gross margin compared to a year ago is primarily due to higher sales volumes and improved product mix, slightly offset by lower usage of previously reserved inventory.

Selling, general and administrative (SG&A) expenses in the third quarter of fiscal 2017 were $10.1 million compared to $8.3 million in the preceding quarter and $8.7 million in the third quarter of fiscal 2016.  Sequentially, and compared to prior year, the increase results primarily from severance, higher commissions and other employee-related expenses.

Research, development and engineering (RD&E) expense was $1.4 million in the third quarter of fiscal 2017 compared to $1.5 million in the preceding quarter and $1.6 million in the third quarter of fiscal 2016.  

Depreciation and amortization in the third quarter of fiscal 2017 was $0.6 million, compared to $0.6 million in the preceding quarter and $0.7 million in the third quarter of fiscal 2016.

Income tax expense in the third quarter of fiscal 2017 was $1.0 million compared to $0.2 million in the preceding quarter and $0.1 million in the third quarter of fiscal 2016.

Net income for the third quarter of fiscal 2017 was $3.3 million, or $0.25 per diluted share, compared to a net loss of $1.4 million or $0.11 per share in the preceding quarter and a net loss of $1.2 million, or $0.09 per share for the third quarter of fiscal 2016.

Unrestricted cash and cash equivalents at June 30, 2017 were $39.2 million, compared to $38.9 million at March 31, 2017.

Outlook

The company expects revenues for the quarter ending September 30, 2017 to be in the range of $45 to $48 million. Gross margin for the quarter ending September 30, 2017 is expected to be in the mid to high 20 percent range, with positive operating margin, both influenced by product mix and revenue deferrals.

Operating results could be impacted by the timing of system shipments, particularly the first shipment of equipment for the turnkey order, the net impact of revenue deferral on those shipments, and recognition of revenue based on customer acceptances, all of which can have a significant effect on operating results.

A substantial portion of Amtech's revenues are denominated in Euros. The revenue outlook provided in this press release is based on an assumed exchange rate between the United States Dollar and the Euro. A significant decrease in the value of the Euro in relation to the United States Dollar could cause actual revenues to be lower than anticipated.

Conference Call

Amtech Systems will host a conference call and webcast today at 5:00 p.m. ET to discuss third quarter fiscal 2017 financial results. Those in the USA wishing to participate in the live call should dial (844)-868-9329. From Canada, dial (866) 605-3852, and internationally, dial (412) 317-6703. 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 August 16, 2017.  To access the replay please dial US toll free (877) 344-7529 and enter code 10110517. 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. is a global supplier of advanced thermal processing equipment to the solar, semiconductor / electronics, and LED manufacturing markets. Amtech's equipment includes diffusion, ALD and PECVD systems and solder reflow systems. Amtech also supplies wafer handling automation and polishing equipment and related consumable products. 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, printed circuit boards, semiconductor packaging, and the polishing of newly sliced sapphire and silicon wafers. Amtech's products are recognized under the leading brand names Tempress Systems^TM, Bruce Technologies^TM, PR Hoffman^TM, R2D Automation^TM, SoLayTec, and BTU International.

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). 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 or our management are intended to identify such forward-looking statements.  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 Amtech and its management for future operations.  These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. The Form 10-K, as amended, that Amtech filed with the Securities and Exchange Commission (the "SEC") for the year-ended September 30, 2016, 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-Ks 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.

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SOURCE Amtech Systems, Inc.