Amtech Reports Third Quarter Fiscal 2013 Results

TEMPE, Ariz., Aug. 8, 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 third fiscal quarter ending June 30, 2013.

Third Quarter Fiscal 2013 Highlights:

  • Quarterly bookings of $20.7 million (Solar $15.1 million)
  • Book-to-bill ratio of 2.2 (Solar 2.7)
  • Quarter-end backlog of $24.8 million; solar backlog of $19.3 million
  • Unrestricted cash of $38.8 million; unchanged from March 31, 2013
  • Net revenue of $10.4 million (Solar $6.5 million)
  • Non-cash charges:
    • Inventory write-downs of $4.4 million
    • Stock compensation expense of $1.6 million
    • Valuation allowance on deferred tax assets of $4.7 million
  • Net loss of $12.1 million, or $(1.27) per share

Mr. Fokko Pentinga, Chief Executive Officer of Amtech, commented, "Our healthy bookings for the quarter include a significant order for the Nexolon project in San Antonio, Texas, which we expect to ship in the first half of fiscal 2014.  Obtaining the second customer for n-PASHA cell technology and a production order for our new PECVD system is a great milestone for Amtech, underscoring that Amtech is on the right technology path as the solar market progresses towards higher value solutions."

"While we experienced a significant loss in the quarter due primarily to non-cash charges, we were able to maintain our unrestricted cash balance through solid collections of our receivables, utilization of existing inventory, and cost control measures.  During the quarter we took additional actions to reduce our costs and are currently implementing further cost reduction programs at our Tempress subsidiary that we expect to be in place by the end of this fiscal year. Cost management and preservation of cash are high priorities as we manage through this cycle.  While progress continues to be made in rationalizing supply and demand in the solar market, we see a soft sales environment continuing into fiscal 2014."

Net revenue for the third quarter of fiscal 2013 was $10.4 million compared to $8.1 million in the preceding quarter and $24.3 million in the third quarter of fiscal 2012. The sequential increase reflects a large shipment to a single customer during the latest fiscal quarter partially offset by lower recognition of previously deferred revenue.

Total customer orders in the third quarter of fiscal 2013 were $20.7 million ($15.1 million solar), up from total orders of $9.6 million ($5.8 million solar) in the preceding quarter.

At June 30, 2013, the Company's total order backlog was $24.8 million, compared to total backlog of $14.2 million at March 31, 2013. Total backlog at June 30, 2013 includes $19.3 million in solar orders and deferred revenue, compared to solar backlog of $10.7 million at March 31, 2013.  Foreign exchange caused a $0.2 million increase in backlog in the June 2013 quarter due to the strengthening 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 third quarter of fiscal 2013 was negative 26%, reflecting $4.4 million of inventory write-downs and lower margins on product shipped during the quarter, compared to 30% sequentially and 20% in the third quarter of fiscal 2012.

Selling, general and administrative (SG&A) expenses in the third quarter of fiscal 2013 were $5.5 million compared to $4.0 million in the preceding quarter, increasing primarily due to increased stock compensation expense related to the acceleration of vesting and cancellation of certain stock options in the June 2013 quarter.  Despite the higher stock compensation expense, SG&A expenses decreased $0.9 million from $6.4 million in the third quarter of fiscal 2012 due to lower commissions and shipping costs related to lower revenues, as well as company-wide cost control initiatives to reduce salaries, professional fees, travel and insurance expense.

Research and Development (R&D) expense was $1.9 million in the third quarter of fiscal 2013 compared to $1.9 million in the preceding quarter.  R&D expense decreased $1.7 million from $3.7 million in the third quarter of fiscal 2012 due primarily to a decrease in solar research and development.                                           

Depreciation and amortization in the third quarter of fiscal 2013 was $632,000, compared to $683,000 in the preceding quarter and $727,000 in the third quarter of fiscal 2012.

Included in the third quarter of fiscal 2013 results is $1,553,000 of stock option expense, compared to $327,000 in the fiscal second quarter and $438,000 in the third quarter of fiscal 2012. The increase in stock option expense is due to the acceleration of vesting and cancellation of certain stock options in the June 2013 quarter.

Income tax in the third quarter of fiscal 2013 was a provision of $2.6 million due to a valuation allowance of approximately $4.7 million  established on our deferred tax assets in The Netherlands, primarily related to net operating losses in that country.

The net loss for the third quarter of fiscal 2013 was $12.1 million, or ($1.27) per share, compared to a net loss of $2.1 million, or ($0.22) per share, for the second quarter of fiscal 2013.  The net loss for the third quarter of fiscal 2012 was $3.0 million, or ($0.31) per share.

Total unrestricted cash and cash equivalents were $38.8 million at June 30, 2013, unchanged from March 31, 2013.

Conference Call

Amtech Systems will host a conference call and webcast today at 5:00pm ET to discuss third 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 August 16, 2013.  To access the replay please dial US toll free (877) 344-7529 and enter code10032095. 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

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


Nine Months Ended


June 30,


June 30,


2013


2012


2013


2012









Revenues, net of returns and allowances

$   10,398


$  24,300


$   27,873


$  70,594

Cost of sales

8,648


17,146


22,639


50,861

Write-down of inventory

4,427


2,350


4,080


3,680

Gross profit

(2,677)


4,804


1,154


16,053









Selling, general and administrative

5,443


6,360


13,682


18,698

Restructuring and impairment charges

182


-


879


688

Research and development

1,947


3,694


5,055


9,746

Operating loss

(10,249)


(5,250)


(18,462)


(13,079)









Interest and other income, net

143


69


187


195

Loss before income taxes

(10,106)


(5,181)


(18,275)


(12,884)









Income tax provision (benefit)

2,560


(1,110)


1,280


(1,650)

Net loss

(12,666)


(4,071)


(19,555)


(11,234)









Add: Net loss attributable to noncontrolling interest

565


1,106


1,169


2,314

Net loss attributable to Amtech Systems, Inc.

$  (12,101)


$  (2,965)


$  (18,386)


$  (8,920)









Loss Per Share:








Basic loss per share attributable to Amtech shareholders

$     (1.27)


$    (0.31)


$     (1.93)


$    (0.63)

Weighted average shares outstanding

9,539


9,479


9,524


9,462









Diluted loss per share attributable to Amtech shareholders

$     (1.27)


$    (0.31)


$     (1.93)


$    (0.94)

Weighted average shares outstanding

9,539


9,479


9,524


9,468

 






Condensed Consolidated Balance Sheets





(in thousands, except share data)





































June 30,

September 30,

Assets






2013 (Unaudited)

2012

Current Assets









Cash and cash equivalents  




$                38,814

$           46,726


Restricted cash





5,073

4,644


Accounts receivable 









Trade (less allowance for doubtful accounts of $751 and $517 at  June 30, 2013 and September 30, 2012, respectively)

7,333

7,486







Unbilled and other





4,533

10,807


Inventories






17,533

25,670


Deferred income taxes





1,640

3,460


Prepaid income taxes





1,400

1,400


Other






1,808

2,650



Total current assets





78,134

102,843












Property, Plant and Equipment - Net  




11,155

12,387

Deferred Income Taxes - Long Term




1,010

470

Intangible Assets - Net





3,604

4,096

Goodwill 






8,384

8,355

Other Assets - Long Term





1,168

871


Total Assets






$              103,455

$         129,022












Liabilities and Stockholders'  Equity






Current Liabilities









Accounts payable





$                  2,767

$             5,780


Accrued compensation and related taxes



3,968

5,311


Accrued warranty expense  




1,766

2,687


Deferred profit






4,301

10,236


Customer deposits 





3,597

3,958


Other accrued liabilities





10,169

7,499


Income taxes payable 





7,120

7,140



Total current liabilities





33,688

42,611












Income Taxes Payable Long-term




2,360

2,360



Total liabilities





36,048

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 June 30, 2013 and  September 30, 2012, respectively





95

95


Additional paid-in capital





79,689

77,377


Accumulated other comprehensive loss



(6,163)

(6,817)


Retained Earnings (Deficit)




(6,321)

12,065



Total stockholders' equity




67,300

82,720


Noncontrolling interest





107

1,331



Total Equity






67,407

84,051


Total Liabilities and Stockholders' Equity



$             103,455

$         129,022

 





Condensed Consolidated Statements of Cash Flows




Unaudited








(in thousands)

























Nine Months Ended








June 30,








2013


2012

Operating Activities









Net loss





(19,555)


(11,234)


Adjustments to reconcile net loss to net cash used in operating activities:














Depreciation and amortization



2,014


2,255



Write-down of inventory



4,080


3,680



Deferred income taxes



1,287


(4)



Impairment of long-lived assets





688



Non-cash stock based compensation expense 

2,313


1,341



Provision for allowance for doubtful accounts


305


194


Changes in operating assets and liabilities:







Restricted cash




(374)


3,025



Accounts receivable




6,334


12,504



Inventories




3,591


(2,751)



Accrued income taxes




(12)


(5,931)



Prepaid expenses and other assets


570


1,485



Accounts payable




(3,070)


(2,518)



Accrued liabilities and customer deposits


597


(5,401)



Deferred profit




(6,079)


(14,847)


 Net cash used in operating activities



(7,999)


(17,514)











Investing Activities









Purchases of property, plant and equipment


(156)


(1,229)


Other





-


(239)


Net cash used in investing activities



(156)


(1,468)











Financing Activities









Proceeds from issuance of common stock


-


3


Repurchase of common stock 



-


(4,080)


Payments on long-term obligations



-


(30)


Net cash used in financing activities



-


(4,107)











Effect of Exchange Rate Changes on Cash



243


(1,967)











Net Decrease in Cash and Cash Equivalents


(7,912)


(25,056)

Cash and Cash Equivalents, Beginning of Period


46,726


67,382

Cash and Cash Equivalents, End of Period



$ 38,814


$ 42,326

 

 

SOURCE Amtech Systems, Inc.



RELATED LINKS
http://www.amtechsystems.com

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.