Business Wire | Nov 17, 2021 04:06PM EST

Amtech Reports Fourth Quarter and Fiscal 2021 Results

Nov. 17, 2021

TEMPE, Ariz.--(BUSINESS WIRE)--Nov. 17, 2021--Amtech Systems, Inc. (NASDAQ: ASYS), a manufacturer of capital equipment, including thermal processing and wafer polishing, and related consumables used in fabricating semiconductor devices, such as silicon carbide (SiC) and silicon power devices, analog and discrete devices, electronic assemblies and light-emitting diodes (LEDs), today reported results for its fourth quarter and fiscal year ended September 30, 2021.

Fourth Quarter Fiscal 2021 Financial and Operational Highlights:

* Net revenue of $24.3 million * Operating income of $1.3 million * Income from operations, net of tax, of $0.7 million * Income per diluted share of $0.05 * Customer orders of $34.2 million * Book to bill ratio of 1.4:1 * Unrestricted cash of $32.8 million

Fiscal 2021 Financial and Operational Highlights:

* Net revenue of $85.2 million * Operating income of $3.7 million * Income from operations, net of tax, of $1.5 million * Income per diluted share of $0.11 * Customer orders of $115.4 million * September 30, 2021 backlog of $44.1 million

Mr. Michael Whang, Chief Executive Officer of Amtech, commented, "Fiscal 2021 was a strong year for Amtech, with over $115 million in bookings and over $85 million in revenue, representing year-over-year growth rates of 84% and 30%, respectively. We are encouraged to see this strength continuing into 2022, with a record backlog of $44.1 million and new quoting activity extending into the second fiscal quarter and beyond. Although industry wide logistics and supply chain challenges are creating near-term headwinds, longer-term growth drivers across our served markets remain healthy."

GAAP Financial Results

(in millions, except per Q4 FY Q3 FY Q4 FY 12 12 Monthsshare amounts) Months

2021 2021 2020 2021 2020

Net revenues $ 24.3 $ 23.1 $ 15.1 $ 85.2 $ 65.5

Gross profit $ 9.2 $ 10.1 $ 5.0 $ 34.5 $ 24.4

Gross margin 37.8 % 43.6 % 32.9 % 40.5 % 37.3 %

Operating income (loss) $ 1.3 $ 1.2 $ (1.2 ) $ 3.7 $ (0.5 )

Operating margin 5.3 % 5.2 % -7.8 % 4.4 % -0.7 %

Income (loss) fromcontinuing operations, $ 0.7 $ 0.4 $ (2.0 ) $ 1.5 $ (3.9 )net of tax

Diluted income (loss)per share from $ 0.05 $ 0.03 $ (0.14 ) $ 0.11 $ (0.28 )continuing operations

Net revenues increased 5% sequentially and 61% from the fourth quarter of fiscal 2020, with the sequential increase primarily attributable to strong shipments of our advanced packaging and SMT equipment and increased shipments of our polishing machines. The prior year period was affected by the COVID-19 pandemic.

Relative to last quarter, gross margin decreased in the fourth quarter of fiscal 2021 primarily due to a less favorable product mix. Gross margin in the fourth quarter of fiscal 2021 increased compared to prior year due to product mix and increased capacity utilization, partially offset by rising labor and material costs.

Selling, General & Administrative ("SG&A") expenses decreased $0.7 million on a sequential basis. Adjusting for cyber incident expenses of $1.1 million in the third quarter of fiscal 2021 and the partial insurance reimbursement for this incident ($0.4 million) in the fourth fiscal quarter of 2021, SG&A increased sequentially by $0.8 million due primarily to increased consulting, shipping and logistics costs. SG&A increased $1.3 million compared to the prior year period due primarily to SG&A from the acquisition of Intersurface Dynamics in fiscal 2021, as well as increased travel and consulting expenses.

Research, Development and Engineering decreased $0.2 million sequentially and increased $0.5 million compared to the same prior year period due primarily to the timing of materials used in our strategic R&D projects.

Operating income was $1.3 million, compared to operating income of $1.2 million in the third quarter of fiscal 2021 and an operating loss of $1.2 million in the same prior year period.

Income tax provision was $0.7 million for the three months ended September 30, 2021, compared to a provision of $0.7 million in the preceding quarter and $0.5 million in the same prior year period.

Income from operations, net of tax, for the fourth quarter of fiscal 2021 was $0.7 million, or 5 cents per share. This compares to a loss from operations of $2.0 million, or 14 cent per share, for the fourth quarter of fiscal 2020 and income of $0.4 million, or 3 cent per share, in the preceding quarter.

Outlook

The Company's outlook reflects the anticipated ongoing logistical impacts and the related delays for goods shipped to and from China. Actual results may differ materially in the weeks and months ahead. Additionally, the semiconductor equipment industries can be cyclical and inherently impacted by changes in market demand. Operating results can be significantly impacted, positively or negatively, by the timing of orders, system shipments, and the financial results of semiconductor manufacturers.

For the first fiscal quarter ending December 31, 2021, revenues are expected to be in the range of $24 to $27 million. Gross margin for the quarter ending December 31, 2021 is expected to be approximately 40% due to a more favorable product mix, with operating margin in the mid to upper single digits.

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 today at 5:00 p.m. ET to discuss our fiscal fourth quarter financial results. The call will be available to interested parties by dialing 800-367-2403. For international callers, please dial +1 334-777-6978. The confirmation code is 7034799. 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 web site 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 capital equipment, including thermal processing and wafer polishing, and related consumables used in fabricating semiconductor devices, such as silicon carbide (SiC) and silicon power devices, analog and discrete devices, electronic assemblies and light-emitting diodes (LEDs). We sell these products to semiconductor device and module manufacturers worldwide, particularly in Asia, North America and Europe. Our strategic focus is on semiconductor growth opportunities in power electronics, sensors and analog devices leveraging our strength in our core competencies in thermal and substrate processing. We are a market leader in the high-end power chip market (SiC substrates, 300mm horizontal thermal reactor, and electronic assemblies used in power, RF, and other advanced applications), developing and supplying essential equipment and consumables used in the semiconductor industry. Amtech's products are recognized under the leading brand names BTU International, Bruce Technologies(tm), PR Hoffman(tm) 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, 2021, 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 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)

November 17, 2021

(Unaudited)

Summary Financial Information for Continuing Operations

(in thousands, except percentages and ratios)

Three Months Ended Years Ended September 30,

September June 30, September 30, 2021 30, 2021 2020 2021 2020

Amtech Systems, Inc.

Revenues, netof returns $ 24,340 $ 23,100 $ 15,084 $ 85,205 $ 65,463 andallowances

Gross profit $ 9,211 $ 10,079 $ 4,958 $ 34,530 $ 24,441

Gross margin 38 % 44 % 33 % 41 % 37 %

Operating $ 1,296 $ 1,204 $ (1,181 ) $ 3,725 $ (485 )income (loss)

New orders $ 34,188 $ 30,861 $ 13,767 $ 115,444 $ 62,848

Backlog $ 44,143 $ 34,295 $ 13,905 $ 44,143 $ 13,905

Semiconductor Segment

Revenues, netof returns $ 19,891 $ 19,501 $ 12,935 $ 72,086 $ 54,516 andallowances

Gross profit $ 7,732 $ 8,599 $ 4,647 $ 30,336 $ 21,199

Gross margin 39 % 44 % 36 % 42 % 39 %

Operating $ 2,609 $ 2,114 $ 406 $ 8,585 $ 4,168 income

New orders $ 30,247 $ 26,607 $ 11,979 $ 101,988 $ 52,448

Backlog $ 42,743 $ 32,388 $ 12,842 $ 42,743 $ 12,842

Material andSubstrate Segment

Revenues, netof returns $ 4,449 $ 3,599 $ 2,149 $ 13,119 $ 10,304 andallowances

Gross profit $ 1,479 $ 1,480 $ 311 $ 4,194 $ 3,233

Gross margin 33 % 41 % 14 % 32 % 31 %

Operating $ 264 $ 333 $ (512 ) $ 278 $ 684 income (loss)

New orders $ 3,941 $ 4,254 $ 1,788 $ 13,456 $ 10,400

Backlog $ 1,400 $ 1,907 $ 1,063 $ 1,400 $ 1,063

AMTECH SYSTEMS, INC.

(NASDAQ: ASYS)

November 17, 2021

(Unaudited)

Consolidated Statements of Operations

(in thousands, except per share data)

Three Months Ended September 30,

Years Ended September 30,

2021

2020

2021

2020

Revenue, net of returns and allowances

$

24,340

$

15,084

$

85,205

$

65,463

Cost of sales

15,129

10,126

50,675

41,022

Gross profit

9,211

4,958

34,530

24,441

Selling, general and administrative

6,558

5,263

24,740

21,397

Research, development and engineering

1,342

876

5,979

3,312

Restructuring charges

15

-

86

217

Operating income (loss)

1,296

(1,181

)

3,725

(485

)

Loss on sale of subsidiary

-

-

-

(2,793

)

Interest income (expense) and other, net

46

(350

)

(291

)

162

Income (loss) from continuing operations before income taxes

1,342

(1,531

)

3,434

(3,116

)

Income tax provision

676

494

1,926

791

Income (loss) from continuing operations, net of tax

666

(2,025

)

1,508

(3,907

)

Loss from discontinued operations, net of tax

-

-

-

(11,816

)

Net income (loss)

$

666

$

(2,025

)

$

1,508

$

(15,723

)

Income (Loss) Per Basic Share:

Basic income (loss) per share from continuing operations

$

0.05

$

(0.14

)

$

0.11

$

(0.28

)

Basic loss per share from discontinued operations

$

-

$

-

$

-

$

(0.83

)

Net income (loss) per basic share

$

0.05

$

(0.14

)

$

0.11

$

(1.11

)

Income (Loss) Per Diluted Share:

Diluted income (loss) per share from continuing operations

$

0.05

$

(0.14

)

$

0.11

$

(0.28

)

Diluted loss per share from discontinued operations

$

-

$

-

$

-

$

(0.83

)

Net income (loss) per diluted share

$

0.05

$

(0.14

)

$

0.11

$

(1.11

)

Weighted average shares outstanding - basic

14,190

14,052

14,189

14,159

Weighted average shares outstanding - diluted

14,387

14,052

14,340

14,159

AMTECH SYSTEMS, INC.

(NASDAQ: ASYS)

November 17, 2021

(Unaudited)

Consolidated Statements of Operations

(in thousands, except per share data)

Three Months Ended Years Ended September 30, September 30,

2021 2020 2021 2020

Revenue, net of returns $ 24,340 $ 15,084 $ 85,205 $ 65,463 and allowances

Cost of sales 15,129 10,126 50,675 41,022

Gross profit 9,211 4,958 34,530 24,441



Selling, general and 6,558 5,263 24,740 21,397 administrative

Research, development and 1,342 876 5,979 3,312 engineering

Restructuring charges 15 - 86 217

Operating income (loss) 1,296 (1,181 ) 3,725 (485 )



Loss on sale of subsidiary - - - (2,793 )

Interest income (expense) 46 (350 ) (291 ) 162 and other, net

Income (loss) fromcontinuing operations 1,342 (1,531 ) 3,434 (3,116 )before income taxes

Income tax provision 676 494 1,926 791

Income (loss) fromcontinuing operations, net 666 (2,025 ) 1,508 (3,907 )of tax

Loss from discontinued - - - (11,816 )operations, net of tax

Net income (loss) $ 666 $ (2,025 ) $ 1,508 $ (15,723 )



Income (Loss) Per Basic Share:

Basic income (loss) pershare from continuing $ 0.05 $ (0.14 ) $ 0.11 $ (0.28 )operations

Basic loss per share from $ - $ - $ - $ (0.83 )discontinued operations

Net income (loss) per $ 0.05 $ (0.14 ) $ 0.11 $ (1.11 )basic share



Income (Loss) Per Diluted Share:

Diluted income (loss) pershare from continuing $ 0.05 $ (0.14 ) $ 0.11 $ (0.28 )operations

Diluted loss per sharefrom discontinued $ - $ - $ - $ (0.83 )operations

Net income (loss) per $ 0.05 $ (0.14 ) $ 0.11 $ (1.11 )diluted share



Weighted average shares 14,190 14,052 14,189 14,159 outstanding - basic

Weighted average shares outstanding - diluted 14,387 14,052 14,340 14,159

AMTECH SYSTEMS, INC.

(NASDAQ: ASYS)

November 17, 2021

(Unaudited)

Consolidated Balance Sheets

(in thousands, except share data)

September 30, 2021

September 30, 2020

Assets

Current Assets

Cash and cash equivalents

$

32,836

$

45,070

Accounts receivable - Net

22,502

11,243

Inventory - Net

22,075

17,277

Income taxes receivable

1,046

1,362

Other current assets

2,407

1,617

Total current assets

80,866

76,569

Property, Plant and Equipment - Net

14,083

11,995

Right-of-Use Assets - Net

8,646

5,124

Intangible Assets - Net

858

609

Goodwill - Net

11,168

6,633

Deferred Income Taxes - Net

631

566

Other Assets

661

602

Total Assets

$

116,913

$

102,098

Liabilities and Shareholders' Equity

Current Liabilities

Accounts payable

$

8,229

$

2,676

Accrued compensation and related taxes

2,881

2,066

Accrued warranty expense

545

380

Other accrued liabilities

903

627

Current maturities of long-term debt

396

380

Current portion of long-term lease liability

531

124

Contract liabilities

1,624

1,224

Total current liabilities

15,109

7,477

Long-Term Debt

4,402

4,798

Long-Term Lease Liability

8,389

5,064

Income Taxes Payable

3,277

3,240

Other Long-Term Liabilities

102

-

Total Liabilities

31,279

20,579

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: 14,304,492 and 14,063,172 in 2021 and 2020, respectively

143

141

Additional paid-in capital

126,380

124,435

Accumulated other comprehensive income (loss)

14

(646

)

Retained deficit

(40,903

)

(42,411

)

Total Shareholders' Equity

85,634

81,519

Total Liabilities and Shareholders' Equity

$

116,913

$

102,098

AMTECH SYSTEMS, INC.

(NASDAQ: ASYS)

November 17, 2021

(Unaudited)

Consolidated Balance Sheets

(in thousands, except share data)

September September 30, 30, 2021 2020

Assets

Current Assets

Cash and cash equivalents $ 32,836 $ 45,070

Accounts receivable - Net 22,502 11,243

Inventory - Net 22,075 17,277

Income taxes receivable 1,046 1,362

Other current assets 2,407 1,617

Total current assets 80,866 76,569

Property, Plant and Equipment - Net 14,083 11,995

Right-of-Use Assets - Net 8,646 5,124

Intangible Assets - Net 858 609

Goodwill - Net 11,168 6,633

Deferred Income Taxes - Net 631 566

Other Assets 661 602

Total Assets $ 116,913 $ 102,098

Liabilities and Shareholders' Equity

Current Liabilities

Accounts payable $ 8,229 $ 2,676

Accrued compensation and related taxes 2,881 2,066

Accrued warranty expense 545 380

Other accrued liabilities 903 627

Current maturities of long-term debt 396 380

Current portion of long-term lease liability 531 124

Contract liabilities 1,624 1,224

Total current liabilities 15,109 7,477

Long-Term Debt 4,402 4,798

Long-Term Lease Liability 8,389 5,064

Income Taxes Payable 3,277 3,240

Other Long-Term Liabilities 102 -

Total Liabilities 31,279 20,579

Commitments and Contingencies

Shareholders' Equity

Preferred stock; 100,000,000 shares authorized; - - none issued

Common stock; $0.01 par value; 100,000,000 sharesauthorized; shares issued and outstanding: 143 141 14,304,492 and 14,063,172 in 2021 and 2020,respectively

Additional paid-in capital 126,380 124,435

Accumulated other comprehensive income (loss) 14 (646 )

Retained deficit (40,903 ) (42,411 )

Total Shareholders' Equity 85,634 81,519

Total Liabilities and Shareholders' Equity $ 116,913 $ 102,098

AMTECH SYSTEMS, INC.

(NASDAQ: ASYS)

November 17, 2021

(Unaudited)

Consolidated Statements of Cash Flows

(in thousands)

Years Ended September 30,

2021

2020

Operating Activities

Net income (loss)

$

1,508

$

(15,723

)

Adjustments to reconcile net income (loss) to net cash used in operating activities:

Depreciation and amortization

1,398

1,258

Write-down of inventory

544

733

Provision for allowance for doubtful accounts

44

24

Deferred income taxes

(65

)

218

Non-cash share-based compensation expense

401

326

Loss on sales of subsidiaries

-

13,709

Other, net

43

55

Changes in operating assets and liabilities:

Accounts receivable

(11,023

)

1,359

Inventory

(5,180

)

(913

)

Contract and other assets

(686

)

324

Accounts payable

5,472

(3,620

)

Accrued income taxes

353

(2,701

)

Accrued and other liabilities

829

4,658

Contract liabilities

400

(1,371

)

Net cash used in operating activities

(5,962

)

(1,664

)

Investing Activities

Purchases of property, plant and equipment

(3,012

)

(2,676

)

Net cash disposed of in sales of subsidiaries

-

(9,940

)

Acquisition, net of cash and cash equivalents acquired

(5,082

)

-

Net cash used in investing activities

(8,094

)

(12,616

)

Financing Activities

Proceeds from the exercise of stock options

1,546

877

Repurchase of common stock

-

(2,000

)

Payments on long-term debt

(380

)

(379

)

Net cash provided by (used in) financing activities

1,166

(1,502

)

Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash

656

1,718

Net Decrease in Cash, Cash Equivalents and Restricted Cash

(12,234

)

(14,064

)

Cash, Cash Equivalents and Restricted Cash, Beginning of Year*

45,070

59,134

Cash, Cash Equivalents and Restricted Cash, End of Year

$

32,836

$

45,070

* Includes Cash, Cash Equivalents and Restricted Cash that are included in Held-For-Sale Assets on the Condensed Consolidated Balance Sheets for periods prior to January 22, 2020.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211117006270/en/

CONTACT: Amtech Systems, Inc. Lisa D. Gibbs Chief Financial Officer (480) 360-3756 irelations@amtechsystems.com

CONTACT: Sapphire Investor Relations, LLC Erica Mannion and Mike Funari (617) 542-6180 irelations@amtechsystems.com