Close

Form 8-K AMTECH SYSTEMS INC For: Feb 04

February 4, 2016 4:14 PM EST



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): February 4, 2016
 
Amtech Systems, Inc.
(Exact Name of Registrant as Specified in Charter)
 
Arizona
 
000-11412
 
86-0411215
(State or Other Jurisdiction
of Incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
131 S. Clark Drive, Tempe, Arizona
 
85281
(Address of Principal Executive Offices)
 
(Zip Code)
Registrant’s telephone number, including area code: (480) 967-5146
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instruction A.2.):
 
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
_____________________________________________________________________________________________





Section 2 - Financial Information

 
 
Item 2.02
Results of Operations and Financial Condition.


On February 4, 2016, Amtech Systems, Inc. (the “Registrant”) conducted an earnings conference call relating to its first quarter results for fiscal 2016 (“2016 Results”). The earnings call was made available to the public via conference call and audio webcast through the website of the Registrant. The financial information included in the earnings call relating to the 2016 Results was also included in a press release issued by the Registrant on February 4, 2016. A copy of the press release is included as Exhibit 99.1 to this Current Report and is incorporated herein by reference.

The information contained in this Current Report, including the accompanying Exhibit 99.1 is furnished pursuant to Item 2.02 of Form 8-K and shall not be incorporated by reference into any filing of the Registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing. The information in this Current Report, including the accompanying exhibit, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.


Section 9 - Financial Statements and Exhibits

Item 9.01    Financial Statements and Exhibits.

Exhibit No.
 
Description
99.1
 
Press Release dated February 4, 2016
 
 
 








SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
                        


 
 
AMTECH SYSTEMS, INC.
 
 
 
Date: February 4, 2016
 
By: /s/ Bradley C. Anderson
 
 
Name: Bradley C. Anderson
 
 
Title: Executive Vice President & Chief Financial Officer







        
Exhibit Index    
 
 
 
 
 
Exhibit No.
 
Description
99.1
 
Press Release dated February 4, 2016





EXHIBIT 99.1

Amtech Reports First Quarter Fiscal 2016 Results

TEMPE, Ariz., February 4, 2016 /PRNewswire/ -- Amtech Systems, Inc. (NASDAQ: ASYS), a global supplier of production equipment and related supplies for the solar, semiconductor, and LED markets, today reported results for its first fiscal quarter ended December 31, 2015.

First Quarter Fiscal 2016 Operational and Financial Highlights
Customer orders of $35.6 million (solar $23.0 million)
Book-to-bill of 1.7 (solar 2.6)
Net revenue of $22.1 million (solar $9.5 million)
Quarter-end backlog of $42.9 million (solar $31.3 million)
Net loss of $4.0 million, or $0.31 per share

Mr. Fokko Pentinga, Chief Executive Officer of Amtech, commented, “We had healthy order activity in the first quarter of fiscal 2016 with $35.6 million in orders, driven primarily by our solar business. Quoting activity in solar remains strong supporting our current view that we can expect to see continued improvement in the marketplace. We expect to see most of the benefit of our recent solar orders in the second half of fiscal 2016, due to timing of shipment. As a market leader, we are focused on building upon the distinctive strengths of our solar technology solutions to support our customers’ interest in advancing both their product and productivity.”

Financial Results
Customer orders in the first quarter of fiscal 2016 were $35.6 million, compared to $18.8 million in the preceding quarter and $30.0 million in the first quarter of fiscal 2015.

At December 31, 2015, the Company’s total order backlog was $42.9 million compared to total backlog of $34.6 million at September 30, 2015 and $48.3 million at December 31, 2014. Total backlog at December 31, 2015, includes $31.3 million in solar orders and deferred revenue compared to solar backlog of $22.9 million at September 30, 2015 and solar backlog of $40.7 million at December 31, 2014. Backlog includes deferred revenue and customer orders that are expected to ship within the next 12 months.

Net revenue for the first quarter of fiscal 2016 was $22.1 million, a decrease of 22% compared to $28.2 million in the preceding quarter, and an increase of 78% compared to $12.4 million in the first quarter of fiscal 2015. The sequential decrease is due primarily to lower volume in the solar segment. The increase from the first quarter of fiscal 2015 is due to increased demand in the solar segment and the inclusion of BTU revenues, partially offset by a decrease in the polishing segment due primarily to the strength of the US dollar versus currencies in the markets served.

Gross margin in the first quarter of fiscal 2016 was 27%, compared to 23% in the previous quarter and 28% in the first quarter of fiscal 2015. The higher margins sequentially resulted primarily from an improvement in our semiconductor product mix.

Selling, general and administrative (SG&A) expenses in the first quarter of fiscal 2016 were $7.6 million compared to $9.1 million in the preceding quarter and $6.4 million in the first quarter of fiscal 2015. Sequentially, the decrease results primarily from lower shipping and commission expense on lower sales volume. Compared to the same quarter in fiscal 2015, the increase results primarily from inclusion of BTU’s SG&A since January 30, 2015, and higher selling expenses related to higher revenues. SG&A expenses include $0.3 million, $0.3 million and $0.2 million of stock-based compensation expense in the first quarter of fiscal 2016, fourth quarter of fiscal 2015 and first quarter of fiscal 2015, respectively.





Research, development and engineering (RD&E) expense was $2.3 million in the first quarter of fiscal 2016 compared to $3.0 million in the preceding quarter and $1.8 million in the first quarter of fiscal 2015. The sequential decrease in RD&E expense is primarily due to the deconsolidation of the Company’s Kingstone subsidiary slightly offset by a decrease in R&D grants earned. Compared to the same quarter in fiscal 2015, RD&E expense increased due primarily to the inclusion of RD&E expense of BTU and SoLayTec, partially offset by the effect of the deconsolidation of Kingstone.

Depreciation and amortization in the first quarter of fiscal 2016 was $783,000, compared to $869,000 in the preceding quarter and $705,000 in the first quarter of fiscal 2015.

Income tax expense in the first quarter of fiscal 2016 was $0.3 million compared to $1.3 million in the preceding quarter. The sequential decrease is due primarily to taxes on the Kingstone gain recognized in the fourth quarter of fiscal 2015. The Company had an income tax expense in the first quarter of fiscal 2015 of $0.2 million.

Net loss for the first quarter of fiscal 2016 was $4.0 million, or $0.31 per share, compared to a net income of $1.3 million or $0.10 per share in the preceding quarter and a net loss for the first quarter of fiscal 2015 of $5.2 million, or $0.53 per share.

Total unrestricted cash and cash equivalents at December 31, 2015 were $22.6 million, compared to $25.9 million at September 30, 2015. The decrease in cash is due primarily to cash used in operations and to fund working capital, partially offset by proceeds in the first quarter of fiscal 2016 from the partial sale of Kingstone.

Outlook
The company expects revenues for the quarter ending March 31, 2016, to be in the range of $20 to $22 million. Gross margin for the quarter ending March 31, 2016, is expected to be in the high teens percent range due to expected lower shipment volumes, with negative operating margins. As a result of recent orders received in December and January and anticipated future order activity, the company expects the quarterly revenue run rate to be significantly higher in the second half of fiscal 2016 compared to the first half of fiscal 2016.

Operating results could be impacted by the timing of system shipments, the net impact of revenue deferral on those shipments, and recognition of revenue based on customer acceptances, all of which can have a significant effect on operating results.

A substantial portion of Amtech's revenues are denominated in Euros. The revenue outlook provided in this press release is based on an assumed exchange rate between the United States Dollar and the Euro. A significant decrease in the value of the Euro in relation to the United States Dollar could cause actual revenues to be lower than anticipated.

Conference Call
Amtech Systems will host a conference call and webcast today at 5:00pm ET to discuss first quarter fiscal 2016 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 Feb. 16, 2016.  To access the replay please dial US toll free (877) 344-7529 and enter code 10079200. 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. is a global supplier of advanced thermal processing equipment to the solar, semiconductor / electronics, and LED manufacturing markets. Amtech's equipment includes diffusion, ALD and PECVD systems and solder reflow systems. Amtech also supplies wafer handling automation and polishing equipment and related consumable products. 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, printed circuit boards, semiconductor packaging, and the polishing of newly sliced sapphire and silicon wafers. Amtech’s products are recognized under the leading brand names Tempress SystemsTM, Bruce TechnologiesTM, PR HoffmanTM, R2D AutomationTM, SoLayTec, and BTU International.
 
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 ("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 or our management are intended to identify such forward-looking statements. 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 Amtech and its management for future operations. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. The Form 10-K that Amtech filed with the Securities and Exchange Commission (the “SEC”) for the year-ended September 30, 2015, listed various important factors that could affect the company’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-Ks 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
Christensen
Investor Relations
Patty Bruner
(480) 201-6075

 







AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
February 4, 2016
Condensed Consolidated Statements of Operations
 
 
 
Unaudited
 
 
 
(in thousands, except per share data)
 
 
 
 
 
 
 
 
Three Months Ended December 31,
 
2015
 
2014
Revenues, net of returns and allowances
$
22,074

 
$
12,396

Cost of sales
16,119

 
8,968

Gross profit
5,955

 
3,428

 
 
 
 
Selling, general and administrative
7,596

 
6,384

Research, development and engineering
2,288

 
1,837

Operating loss
(3,929
)
 
(4,793
)
Interest expense and other income, net
(219
)
 
97

Loss before income taxes
(4,148
)
 
(4,696
)
Income tax provision
300

 
180

Net loss
(4,448
)
 
(4,876
)
 
 
 
 
Add: net loss (income) attributable to noncontrolling interest
433

 
(319
)
Net loss attributable to Amtech Systems, Inc.
$
(4,015
)
 
$
(5,195
)
 
 
 
 
Loss Per Share:
 
 
 
Basic loss per share attributable to Amtech shareholders
$
(0.31
)
 
$
(0.53
)
Weighted average shares outstanding
13,152

 
9,854

Diluted loss per share attributable to Amtech shareholders
$
(0.31
)
 
$
(0.53
)
Weighted average shares outstanding
13,152

 
9,854



  





AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
February 4, 2016
Condensed Consolidated Balance Sheets
 
 
 
 
(in thousands, except share data)
 
 
 
 
 
 
 
 
 
 
 
December 31,
2015
 
September 30,
2015
Assets
 
(Unaudited)
 
 
Current Assets
 
 
 
 
Cash and cash equivalents
 
$
22,617

 
$
25,852

Restricted cash
 
847

 
638

Accounts receivable
 
 
 
 
Trade (less allowance for doubtful accounts of $3,708 and $5,009 at December 31, 2015, and September 30, 2015, respectively)
 
16,063

 
14,488

Unbilled and other
 
7,084

 
8,494

Inventories
 
21,541

 
23,329

Deferred income taxes
 
2,050

 
2,050

Notes and other receivable
 
67

 
7,079

Other
 
6,117

 
3,772

Total current assets
 
76,386

 
85,702

Property, Plant and Equipment - Net
 
17,079

 
17,761

Deferred Income taxes - Long-Term
 
430

 
430

Other Assets - Long Term
 
1,145

 
3,356

Investments
 
2,716

 
2,733

Intangible Assets - Net
 
4,665

 
4,939

Goodwill
 
12,074

 
10,535

Total Assets
 
$
114,495

 
$
125,456

Liabilities and Stockholders' Equity
 
 
 
 
Current Liabilities
 
 
 
 
Accounts payable
 
$
10,582

 
$
15,646

Current maturities of long-term debt
 
822

 
919

Accrued compensation and related taxes
 
5,349

 
5,605

Accrued warranty expense
 
766

 
793

Deferred profit
 
4,679

 
4,873

Customer deposits
 
4,601

 
7,154

Other accrued liabilities
 
2,725

 
3,551

Income taxes payable
 
940

 
830

Total current liabilities
 
30,464

 
39,371

Long-term Debt
 
9,234

 
8,448

Income Taxes Payable - Long-Term
 
6,790

 
4,990

Total liabilities
 
46,488

 
52,809

 
 

 

Stockholders' Equity
 
 
 
 
Common stock; $0.01 par value; 100,000,000 shares authorized;
shares issued and outstanding: 13,164,009 and 13,150,469 at December 31, 2015, and September 30, 2015, respectively
 
132

 
131

Additional paid-in capital
 
110,533

 
110,191

Accumulated other comprehensive loss
 
(9,201
)
 
(8,666
)
Retained deficit
 
(32,837
)
 
(28,822
)
Total stockholders' equity
 
68,627

 
72,834

Noncontrolling interest
 
(620
)
 
(187
)
Total equity
 
68,007

 
72,647

Total Liabilities and Stockholders' Equity
 
$
114,495

 
$
125,456








AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
February 4, 2016
Condensed Consolidated Statements of Cash Flows
 
 
 
Unaudited
 
 
 
(in thousands)
 
 
 
 
 
 
 
 
Three Months Ended December 31,
 
2015
 
2014
Operating Activities
 
 
 
Net loss
$
(4,448
)
 
$
(4,876
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
 
 
 
Depreciation and amortization
783

 
705

Write-down of inventory
39

 
35

Deferred income taxes
9

 
(4
)
Non-cash share based compensation expense
342

 
232

Provision for (reversal of) allowance for doubtful accounts
(158
)
 
44

Changes in operating assets and liabilities:
 
 
 
Restricted cash
(220
)
 
(244
)
Accounts receivable
(309
)
 
2,371

Inventories
1,412

 
(535
)
Accrued income taxes
212

 
172

Other assets
(167
)
 
(722
)
Accounts payable
(4,861
)
 
(429
)
Accrued liabilities and customer deposits
(3,354
)
 
6,407

Deferred profit
(50
)
 
(1,259
)
Net cash (used in) provided by operating activities
(10,770
)
 
1,897

Investing Activities
 
 
 
Purchases of property, plant and equipment
(108
)
 
(155
)
Acquisitions, net of cash acquired

 
(253
)
Proceeds from partial sale of subsidiary
7,012

 

Loss on equity investments
17

 

Net cash provided by (used in) investing activities
6,921


(408
)
Financing Activities
 
 
 
Payments on long-term debt
(180
)
 

Borrowings on long-term debt
830

 

Net cash provided by financing activities
650

 

Effect of Exchange Rate Changes on Cash
(36
)
 
(302
)
Net Increase (Decrease) in Cash and Cash Equivalents
(3,235
)
 
1,187

Cash and Cash Equivalents, Beginning of Period
25,852

 
27,367

Cash and Cash Equivalents, End of Period
$
22,617

 
$
28,554








Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

SEC Filings

Related Entities

American Technology Research