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.

SOURCE Amtech Systems, Inc.