Amtech Reports Fourth Quarter and Fiscal 2013 Results

TEMPE, Ariz., Dec. 11, 2013 /PRNewswire/ -- Amtech Systems, Inc. (NASDAQ: ASYS), a global supplier of production and automation systems and related supplies for the manufacture of solar cells, semiconductors, and sapphire and silicon wafers, today reported results for its fourth quarter and fiscal year ending September 30, 2013.

Fourth Quarter 2013 Financial Highlights:

  • Net revenue of $6.9 million
  • Bookings of $8.4 million
  • Backlog of $26.8 million at September 30, 2013
  • Net loss of $1.7 million, or $0.18 per share
  • Unrestricted cash of $37.2 million at September 30, 2013

Fiscal Year 2013 Financial Highlights:

  • Net revenue of $34.8 million
  • Solar revenue of $17.4 million
  • Bookings of $43.6 million
  • Net loss of $20.1 million, or $2.11 per share

Mr. Fokko Pentinga, Chief Executive Officer of Amtech, commented, "even though fiscal 2013 was a challenging year, progress was made at Amtech. We continued to restructure our global operations and intensified our efforts on developing new products and higher efficiency technology solutions to gain a competitive edge over our competitors.  We introduced a new solar tool, a PECVD system, which doubles our served available market, and we received our first production order.  Also, in June 2013, we announced the receipt of a multi-million dollar order for our advance diffusion and PECVD equipment to be used in Nexolon USA's facility in Texas."

"Although demand is soft, activity in the market has increased.  Discussions with current and potential customers further validate that our technologies strongly position Amtech as a global technology solutions company. We are increasingly optimistic that the second half of 2014 will reflect a renewed demand for our products."

Net revenue for the fourth quarter of fiscal 2013 totaled $6.9 million compared to $10.4 million in the previous quarter and $10.9 million in the fourth quarter of fiscal 2012.  The change reflects lower shipments due to the continued unfavorable market conditions within the solar and semiconductor industries, partially offset by favorable recognition of previously-deferred revenue resulting from increased customer acceptances.

Total customer orders were $8.4 million ($0.1 million solar) in the fourth quarter of fiscal 2013, compared to total orders of $5.6 million ($2.1 million solar) in the same period a year ago.    

At September 30, 2013, the Company's total order backlog was $26.8 million, including $17.1 million in solar orders and deferred revenue.  The effect of foreign exchange on backlog during the September quarter was a positive $0.6 million.  Backlog includes deferred revenue and customer orders that are expected to ship within the next 12 months. 

Gross margin in the fourth quarter of fiscal 2013 was 46%, reflecting a high percentage of net revenue resulting from recognition of previously-deferred revenue.  The portion of revenue recognized upon customer acceptance generally has a significantly higher gross margin percentage.  In the same quarter a year ago, and in the third quarter of fiscal 2013, gross margin was negative, due primarily to significant inventory write-downs.

Selling, general and administrative (SG&A) expenses in the fourth quarter of fiscal 2013 were $3.2 million compared to $5.4 million in the preceding quarter, a 41% reduction.  The decrease in SG&A expenses was due, in part, to lower stock compensation expense.  In the June quarter of fiscal 2013, stock compensation expense was higher due to the acceleration of vesting and cancellation of certain stock options. Additionally, the fourth quarter reflects lower commissions and shipping costs related to lower revenues as well as cost reductions resulting from corporate-wide cost control initiatives.

Research and Development (R&D) expense was $1.5 million in the fourth quarter compared to $1.9 million in preceding quarter, primarily due to cost controls on the Company's solar projects.

Depreciation and amortization in the fourth quarter of fiscal 2013 was $0.7 million compared to $0.6 million in the third quarter of 2013.

Net loss for the fourth quarter of fiscal 2013 was $1.7 million, or $0.18 per share, compared to a net loss of $12.1 million, or $1.27 per share, in the preceding quarter and a net loss of  $14.1 million or $1.49 per share in the fourth quarter of fiscal 2012.

Total unrestricted cash and cash equivalents at September 30, 2013 were $37.2 million, compared to $38.8 million at June 30, 2013, reflecting a large tax payment, partially offset by a significant customer deposit.

Conference Call

Amtech Systems will host a conference call and webcast today at 5:00 pm ET to discuss fourth quarter fiscal 2013 financial results. Those in the USA wishing to participate in the live call should dial (877) 317-6789. Internationally, dial (412) 317-6789. Request "Amtech" when connected to the operator. A replay of the call will be available one hour after the end of the conference through December 19, 2013 at 9:00 AM ET.  To access the replay please dial US toll free (877) 344-7529 and enter code 10037881. 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. manufactures capital equipment, including silicon wafer handling automation, thermal processing equipment and related consumables used in fabricating solar cells, LED and semiconductor devices. Semiconductors, or semiconductor chips, are fabricated on silicon wafer substrates, sliced from ingots, and are part of the circuitry, or electronic components, of many products including solar cells, computers, telecommunications devices, automotive products, consumer goods, and industrial automation and control systems. 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 and the polishing of newly sliced silicon, sapphire and silicon carbide wafers.

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 ("the Company" or "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.  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 the Company and its management for future operations.

We cannot guarantee that any forward-looking statement will be realized, although we believe that the expectations reflected in the forward-looking statements are reasonable. Achievement of future results is subject to risks, uncertainties and potentially inaccurate assumptions. The Form 10-K that we filed with the Securities and Exchange Commission for the year-ended September 30, 2013 listed various important factors that could affect Amtech'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.

Contacts:








Amtech Systems, Inc.
Bradley C. Anderson
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)

December 11, 2013



Condensed Consolidated Statements of Operations

(in thousands, except per share data)










Quarters Ended


Years Ended


September 30,


September 30,


2013 (unaudited)


2012 (unaudited)


2013


2012









Revenues, net of returns and allowances

$                      6,925


$                    10,945


$       34,798


$      81,539

Cost of sales

3,766


8,648


26,833


59,511

Write-down of inventory

-


6,702


3,652


10,380

Losses on inventory purchase commitments

-


2,455


-


2,455

Gross profit (loss)

3,159


(6,860)


4,313


9,193









Selling, general and administrative

3,151


4,354


16,830


23,055

Research and development

1,539


3,947


6,594


13,694

Impairment and restructuring charges

-


4,745


883


5,428

Operating loss

(1,531)


(19,905)


(19,994)


(32,984)









Interest and other income (expense), net

(40)


(129)


147


66

Loss before income taxes

(1,571)


(20,035)


(19,847)


(32,918)









Income tax provision (benefit)

580


(3,670)


1,860


(5,320)

Net loss

(2,151)


(16,365)


(21,707)


(27,598)









Add: net loss attributable to noncontrolling interest

469


2,254


1,638


4,567

Net loss attributable to Amtech Systems, Inc.

$                    (1,682)


$                   (14,111)


$      (20,069)


$     (23,031)









Loss Per Share:








Basic loss per share attributable to Amtech shareholders

$                      (0.18)


$                       (1.49)


$          (2.11)


$         (2.43)

Weighted average shares outstanding

9,543


9,479


9,529


9,471









Diluted loss per share attributable to Amtech shareholders

$                      (0.18)


$                       (1.49)


$          (2.11)


$         (2.43)

Weighted average shares outstanding

9,543


9,479


9,529


9,471

 

AMTECH SYSTEMS, INC.

(NASDAQ: ASYS)

December 11, 2013



Condensed Consolidated Balance Sheets

(in thousands)







September 30,

September 30,

Assets


2013

2012

Current Assets




Cash and cash equivalents  

$               37,197

$               46,726


Restricted cash

5,134

4,644


Accounts receivable 





Trade (less allowance for doubtful accounts of $638 and $517 at September 30, 2013 and September 30, 2012, respectively)

4,829

7,486



Unbilled and other

3,194

10,807


Inventories

22,001

25,670


Deferred income taxes

1,330

3,460


Refundable income taxes

7,580

-


Other

2,930

2,650



Total current assets

84,195

101,443







Property, Plant and Equipment - Net  

11,066

12,387

Deferred Income Taxes - Long Term

1,260

470

Other Assets - Long Term

2,443

2,271

Intangible Assets - Net

3,502

4,096

Goodwill 

8,481

8,355


Total Assets

$             110,947

$             129,022







Liabilities and Stockholders'  Equity




Current Liabilities




Accounts payable

$                 5,472

$                 5,780


Accrued compensation and related taxes

3,778

5,311


Accrued warranty expense  

1,454

2,687


Deferred profit

3,067

10,236


Customer deposits 

11,253

3,958


Other accrued liabilities

10,140

7,499


Income taxes payable 

6,170

7,140



Total current liabilities

41,334

42,611







Income Taxes Payable Long-term

2,810

2,360


Total Liabilities

44,144

44,971







Stockholders' Equity




Common stock; $0.01 par value; 100,000,000 shares authorized;





shares issued and outstanding: 9,550,809 and 9,483,588 at September 30, 2013 and  September 30, 2012, respectively

96

95


Additional paid-in capital

79,610

77,377


Accumulated other comprehensive loss

(4,556)

(6,817)


Retained earnings (deficit)

(8,004)

12,065



Total stockholders' equity

67,146

82,720


Noncontrolling interest

(343)

1,331



Total Equity

66,803

84,051


Total Liabilities and Stockholders' Equity

$            110,947

$            129,022

 

AMTECH SYSTEMS, INC.



(NASDAQ: ASYS)



December 11, 2013













Condensed Consolidated Statements of Cash Flows



(in thousands)











Year Ended




September 30,




2013

2012

Operating Activities




Net loss

$            (21,707)

$            (27,598)


Adjustments to reconcile net loss to net




cash provided by (used in) operating activities:





Depreciation and amortization

2,667

2,858



Write-down of inventory

3,652

10,380



Loss on inventory purchase commitments

-

2,455



Provision for allowance for doubtful accounts

169

300



Deferred income taxes

1,368

3,781



Impairment of long-lived assets

-

5,428



Non-cash share based compensation expense 

2,472

1,763


Changes in operating assets and liabilities:





Change in restricted cash

(326)

1,781



Accounts receivable

10,629

23,700



Inventories

(221)

(2,130)



Accrued income taxes

(7,818)

(15,543)



Prepaid expenses and other assets

(360)

4,677



Accounts payable

(495)

(2,807)



Accrued liabilities and customer deposits

7,489

(5,387)



Deferred profit

(7,472)

(16,096)


 Net cash used in operating activities

(9,953)

(12,438)






Investing Activities




Purchases of property, plant and equipment

(178)

(1,306)


Other

-

(236)


Net cash used in investing activities

(178)

(1,542)






Financing Activities




Proceeds from issuance of common stock, net

26

3


Repurchase of common stock

-

(4,080)


Payments on long-term obligations

-

(31)


Excess tax deficiency of stock compensation

(264)

-


Net cash used in financing activities

(238)

(4,108)






Effect of Exchange Rate Changes on Cash

840

(2,568)






Net Decrease in Cash and Cash Equivalents

(9,529)

(20,656)

Cash and Cash Equivalents, Beginning of Year

46,726

67,382

Cash and Cash Equivalents, End of Year

$             37,197

$             46,726

 

SOURCE Amtech Systems, Inc.



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