Amtech Reports Second Quarter Fiscal 2013 Results

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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