Amtech Reports Second Quarter Fiscal 2013 Results

May 09, 2013, 16:10 ET from Amtech Systems, Inc.

TEMPE, Ariz., May 9, 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 second fiscal quarter ending March 31, 2013.

Second Quarter Fiscal 2013 Financial Summary:

  • Net revenue of $8.1 million
  • Quarterly bookings of $9.6 million
  • Quarter-end backlog of $14.2 million
  • Gross margin of 30%
  • Operating loss of $3.5 million
  • Net loss of $2.1 million, or $(0.22) per share

Mr. Fokko Pentinga, Chief Executive Officer of Amtech, commented, "Our results reflect the difficult environment in which we are operating.  We are taking actions to further reduce costs across our global operations as we see this difficult environment continuing into at least fiscal 2014.  We are focused on preserving cash while we very selectively invest in advancing our technology solutions to meet the future needs of our top-tier customers." 

Net revenue for the second quarter of fiscal 2013 was $8.1 million compared to $9.4 million in the preceding quarter and $21.6 million in the second quarter of fiscal 2012. The changes reflect the continued unfavorable market conditions in the solar industry as well as lower activity in the semiconductor portion of Amtech's business.

Total customer orders in the second quarter of fiscal 2013 were $9.6 million ($5.8 million solar), up from total orders of $5.0 million ($0.2 million solar) in the preceding quarter.

At March 31, 2013, the Company's total order backlog was $14.2 million, compared to total backlog of $14.7 million at December 31, 2012.  Total backlog at March 31, 2013 includes $10.7 million in solar orders and deferred revenue, compared to solar backlog of $10.1 million at December 31, 2012.  Foreign exchange caused a $0.4 million decrease in backlog in the March 2013 quarter due to the weakening of the Euro versus the US dollar. Backlog includes deferred revenue and customer orders that are expected to ship within the next 12 months.

Gross margin in the second quarter of fiscal 2013 was 30%, compared to 15% sequentially and 19% in the second quarter of fiscal 2012. The improvement in gross margin reflects a higher proportion of previously-deferred profit recognized at higher gross margins.

Selling, general and administrative (SG&A) expenses in the second quarter of fiscal 2013 were $4.0 million compared to $4.3 million in the preceding quarter, decreasing primarily due to company-wide cost control initiatives.  SG&A expenses decreased $2.0 million from $6.0 million in the second quarter of fiscal 2012 due primarily to lower commissions and shipping costs, related to lower revenues, as well as company-wide cost control.

Research and Development (R&D) expense was $1.9 million in the second quarter of fiscal 2013 compared to $1.2 million in the preceding quarter.  The increase is due primarily to the recognition of a significant amount of government grant funding which offset spending in the first quarter of fiscal 2013.  R&D expense decreased $1.4 million from $3.3 million in the second quarter of fiscal 2012 due primarily to a decrease in development-related activities compared to previous quarters.                                            

Depreciation and amortization in the second quarter of fiscal 2013 was $683,000, compared to $699,000 in the preceding quarter and $760,000 in the second quarter of fiscal 2012.

Included in the second quarter of fiscal 2013 results is $327,000 of stock option expense, compared to $433,000 in the fiscal first quarter and $437,000 in the second quarter of fiscal 2012.

Income tax in the second quarter of fiscal 2013 was a benefit of $0.8 million, resulting in an effective tax rate of approximately 23%.

The net loss for the second quarter of fiscal 2013 was $2.1 million, or ($0.22) per share, compared to a net loss of $4.2 million, or ($0.44) per share, for the first quarter of fiscal 2013.  The net loss for the second quarter of fiscal 2012 was $5.1 million, or ($0.54) per share.

Total unrestricted cash and cash equivalents at March 31, 2013 were $38.8 million, compared to $42.6 million at December 31, 2012 and $46.7 million at September 30, 2012.

Conference Call

Amtech Systems will host a conference call and webcast today at 5:00pm ET to discuss second quarter fiscal 2013 financial results. Those in the USA wishing to participate in the live call should dial (877) 317-6789. From Canada, dial (866)-605-3852, and 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 call through May 17, 2013.  To access the replay please dial US toll free (877) 344-7529 and enter code 10027993. 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 and ion implant 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 wafers.

Cautionary Note Regarding Forward-Looking Statements

This press release should be read in conjunction with our consolidated financial statements and the related notes and Management's Discussion and Analysis included in Amtech Systems, Inc.'s filing on Form 10-Q or Form 10-K for the fiscal periods referred to above. 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, 2012 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

 

 

Condensed Consolidated Statement of Operations

Unaudited

(amounts in thousands, except per share data)

Three Months Ended

Six Months Ended

March 31,

March 31,

2013

2012

2013

2012

Revenues, net of returns and allowances

$   8,118

$  21,566

$  17,475

$  46,294

Cost of sales

5,665

17,518

13,644

35,045

Gross profit

2,453

4,048

3,831

11,249

Selling, general and administrative

3,968

6,046

8,238

12,338

Restructuring and impairment charges

-

688

697

688

Research and development

1,946

3,299

3,108

6,052

Operating loss

(3,461)

(5,985)

(8,212)

(7,829)

Interest and other income, net

39

39

44

126

Loss before income taxes

(3,422)

(5,946)

(8,168)

(7,703)

Income tax benefit

(800)

(220)

(1,280)

(540)

Net loss

(2,622)

(5,726)

(6,888)

(7,163)

Add: Net loss attributable to noncontrolling interest

530

647

603

1,208

Net loss attributable to Amtech Systems, Inc.

$  (2,092)

$  (5,079)

$  (6,285)

$  (5,955)

Loss Per Share:

Basic loss per share attributable to Amtech shareholders

$    (0.22)

$    (0.54)

$    (0.66)

$    (0.63)

Weighted average shares outstanding

9,539

9,479

9,516

9,462

Diluted loss per share attributable to Amtech shareholders

$    (0.22)

$    (0.54)

$    (0.66)

$    (0.63)

Weighted average shares outstanding

9,539

9,479

9,516

9,462

 

 

Condensed Consolidated Balance Sheets

(in thousands, except share data)

March 31,

September 30,

Assets

2013 (Unaudited)

2012

Current Assets

Cash and cash equivalents  

$                38,807

$           46,726

Restricted cash

6,710

4,644

Accounts receivable 

Trade (less allowance for doubtful accounts of $516 and $517 at     March 31, 2013 and September 30, 2012, respectively)

7,213

7,486

Unbilled and other

5,169

10,807

Inventories

24,929

25,670

Deferred income taxes

3,460

3,460

Prepaid income taxes

1,400

1,400

Other

1,954

2,650

Total current assets

89,642

102,843

Property, Plant and Equipment - Net  

11,517

12,387

Deferred Income Taxes - Long Term

480

470

Intangible Assets - Net

3,747

4,096

Goodwill 

8,348

8,355

Other Assets - Long Term

1,084

871

Total Assets

$             114,818

$         129,022

Liabilities and Stockholders'  Equity

Current Liabilities

Accounts payable

$                  3,044

$             5,780

Accrued compensation and related taxes

4,600

5,311

Accrued warranty expense  

2,065

2,687

Deferred profit

5,054

10,236

Customer deposits 

3,190

3,958

Other accrued liabilities

10,781

7,499

Income taxes payable 

5,880

7,140

Total current liabilities

34,614

42,611

Income Taxes Payable Long-term

2,360

2,360

Total liabilities

36,974

44,971

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: 9,539,234 and 9,483,588

at March 31, 2013 and  September 30, 2012, respectively

95

95

Additional paid-in capital

78,136

77,377

Accumulated other comprehensive loss

(6,877)

(6,817)

Retained earnings 

5,780

12,065

Total stockholders' equity

77,134

82,720

Noncontrolling interest

710

1,331

Total Equity

77,844

84,051

Total Liabilities and Stockholders' Equity

$             114,818

$         129,022

 

 

Condensed Consolidated Statements of Cash Flows

Unaudited

(in thousands)

Six Months Ended

March 31,

2013

2012

Operating Activities

Net loss

(6,888)

(7,163)

Adjustments to reconcile net loss to net

     cash used in operating activities:

Depreciation and amortization

1,382

1,528

Write-down of inventory

392

1,330

Impairment of long-lived assets

688

Deferred income taxes

(12)

-

Non-cash stock based compensation expense 

758

903

Provision for allowance for doubtful accounts

63

133

Changes in operating assets and liabilities:

Restricted cash

48

2,878

Accounts receivable

5,901

12,009

Inventories

60

(2,487)

Accrued income taxes

(1,262)

(4,105)

Prepaid expenses and other assets

493

198

Accounts payable

(2,762)

(2,073)

Accrued liabilities and customer deposits

(689)

(8,379)

Deferred profit

(5,255)

(8,115)

 Net cash used in operating activities

(7,771)

(12,655)

Investing Activities

Purchases of property, plant and equipment

(162)

(1,062)

Net cash used in investing activities

(162)

(1,062)

Financing Activities

Repurchase of common stock 

-

(4,080)

Payments on long-term obligations

-

(22)

Payment for license fee

-

(44)

Net cash used in financing activities

-

(4,146)

Effect of Exchange Rate Changes on Cash

14

(750)

Net Decrease in Cash and Cash Equivalents

(7,919)

(18,613)

Cash and Cash Equivalents, Beginning of Period

46,726

67,382

Cash and Cash Equivalents, End of Period

$ 38,807

$ 48,769

SOURCE Amtech Systems, Inc.



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