EXHIBIT 99.1

Amtech Reports Significantly Higher Revenue and Earnings for Q3 Fiscal 2017
TEMPE, Ariz., August 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 SystemsTM, Bruce TechnologiesTM, PR HoffmanTM, R2D AutomationTM, 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.


Contacts:
Amtech Systems, Inc.
Robert T. Hass
Chief Financial Officer
(480) 967-5146
irelations@Amtechsystems.com
Christensen
Investor Relations
Patty Bruner
(480) 201-6075
pbruner@christensenir.com

 







AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
August 9, 2017
(Unaudited)

Condensed Consolidated Statements of Operations
 
 
 
 
 
 
 
(in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30,
 
Nine Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Revenues, net of returns and allowances
$
47,760

 
$
33,342

 
$
109,839

 
$
77,899

Cost of sales
32,258

 
23,711

 
77,499

 
56,312

Gross profit
15,502

 
9,631

 
32,340

 
21,587

 
 
 
 
 
 
 
 
Selling, general and administrative
10,108

 
8,665

 
25,366

 
23,709

Research, development and engineering
1,423

 
1,568

 
4,586

 
6,015

Operating income (loss)
3,971

 
(602
)
 
2,388

 
(8,137
)
 
 
 
 
 
 
 
 
Gain on sale of other assets

 

 

 
2,576

Loss (income) from equity method investment
(110
)
 
(444
)
 
(200
)
 
227

Interest expense and other income, net
(34
)
 
(265
)
 
(151
)
 
(434
)
Income (loss) before income taxes
3,827

 
(1,311
)
 
2,037

 
(5,768
)
Income tax provision
986

 
70

 
1,270

 
2,040

Net income (loss)
2,841

 
(1,381
)
 
767

 
(7,808
)
 
 
 
 
 
 
 
 
Add: net loss attributable to noncontrolling interest
446

 
172

 
1,045

 
1,086

Net income (loss) attributable to Amtech Systems, Inc.
$
3,287

 
$
(1,209
)
 
$
1,812

 
$
(6,722
)
 
 
 
 
 
 
 
 
Income (Loss) Per Share:
 
 
 
 
 
 
 
Basic income (loss) per share attributable to Amtech shareholders
$
0.25

 
$
(0.09
)
 
$
0.14

 
$
(0.51
)
Weighted average shares outstanding
13,242

 
13,173

 
13,203

 
13,165

Diluted income (loss) per share attributable to Amtech shareholders
$
0.25

 
$
(0.09
)
 
$
0.14

 
$
(0.51
)
Weighted average shares outstanding
13,398

 
13,173

 
13,288

 
13,165



  





AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
August 9, 2017
(Unaudited)
Condensed Consolidated Balance Sheets
 
 
 
 
(in thousands, except share data)
 
 
 
 
 
 
June 30,
2017
 
September 30,
2016
Assets
 
 
 
 
Current Assets
 
 
 
 
Cash and cash equivalents
 
$
39,160

 
$
27,655

Restricted cash
 
4,671

 
893

Accounts receivable
 
 
 
 
Trade (less allowance for doubtful accounts of $1,522 and $3,730 at June 30, 2017, and September 30, 2016, respectively)
 
24,685

 
17,642

Unbilled and other
 
12,157

 
8,634

Inventories
 
23,186

 
23,223

Refundable income taxes
 

 
260

Vendor deposits
 
7,626

 
1,962

Other
 
2,954

 
2,655

Total current assets
 
114,439

 
82,924

Property, Plant and Equipment - Net
 
15,080

 
15,960

Deferred Income Taxes - Long-Term
 
200

 
200

Other Assets - Long Term
 
1,026

 
1,095

Investments
 
2,831

 
3,032

Intangible Assets - Net
 
3,643

 
4,100

Goodwill - Net
 
11,220

 
11,119

Total Assets
 
$
148,439

 
$
118,430

 
 
 
 
 
Liabilities and Stockholders' Equity
 
 
 
 
Current Liabilities
 
 
 
 
Accounts payable
 
$
22,484

 
$
15,397

Current maturities of long-term debt
 
817

 
1,134

Accrued compensation and related taxes
 
6,450

 
5,710

Accrued warranty expense
 
853

 
795

Deferred profit
 
5,449

 
4,709

Customer deposits
 
25,180

 
7,055

Other accrued liabilities
 
1,863

 
2,164

Income taxes payable
 
996

 
1,100

Total current liabilities
 
64,092

 
38,064

Long-Term Debt
 
9,732

 
9,097

Income Taxes Payable - Long-Term
 
6,520

 
5,930

Total liabilities
 
80,344

 
53,091

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: 13,328,656 and 13,179,355 at June 30, 2017, and September 30, 2016, respectively
 
133

 
132

Additional paid-in capital
 
113,501

 
111,631

Accumulated other comprehensive loss
 
(8,834
)
 
(8,876
)
Retained deficit
 
(34,018
)
 
(35,830
)
Total stockholders' equity
 
70,782

 
67,057

Noncontrolling interest
 
(2,687
)
 
(1,718
)
Total equity
 
68,095

 
65,339

Total Liabilities and Stockholders' Equity
 
$
148,439

 
$
118,430







AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
August 9, 2017
(Unaudited)
Condensed Consolidated Statements of Cash Flows
 
 
 
(in thousands)
 
 
 
 
 
 
 
 
Nine Months Ended June 30,
 
2017
 
2016
Operating Activities
 
 
 
Net income (loss)
$
767

 
(7,808
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
 
 
 
Depreciation and amortization
1,871

 
2,559

Write-down of inventory
448

 
116

Capitalized interest
307

 

Deferred income taxes
(10
)
 
6

Non-cash share based compensation expense
978

 
1,059

Loss on sale of property, plant and equipment
107

 

Gain on sale of other assets

 
(2,576
)
Loss (gain) from equity method investment
200

 
(227
)
Reversal of allowance for doubtful accounts, net of provision
(898
)
 
(143
)
Changes in operating assets and liabilities:
 
 
 

Restricted cash
(3,576
)
 
26

Accounts receivable
(8,997
)
 
(3,538
)
Inventories
(245
)
 
(4,794
)
Accrued income taxes
742

 
1,617

Vendor deposits and other assets
(5,521
)
 
(644
)
Accounts payable
6,616

 
2,842

Accrued liabilities and customer deposits
17,526

 
2,695

Deferred profit
626

 
(828
)
Net cash provided by (used in) operating activities
10,941

 
(9,638
)
Investing Activities
 
 
 
Purchases of property, plant and equipment
(355
)
 
(442
)
Proceeds from sale of property, plant and equipment
39

 

Proceeds from partial sale of subsidiary

 
7,012

Proceeds from sale of other assets

 
4,884

Net cash (used in) provided by investing activities
(316
)
 
11,454

Financing Activities
 
 
 
Proceeds from exercise of stock options
894

 
34

Payments on long-term debt
(485
)
 
(549
)
Borrowings on long-term debt
384

 
1,145

Net cash provided by financing activities
793

 
630

Effect of Exchange Rate Changes on Cash
87

 
(8
)
Net Increase in Cash and Cash Equivalents
11,505

 
2,438

Cash and Cash Equivalents, Beginning of Period
27,655

 
25,852

Cash and Cash Equivalents, End of Period
$
39,160

 
28,290