Amtech Systems (ASYS) Tops Q4 EPS by 5c, Revenues Beat; Offers 1Q Revenues Guidance Below Consensus

Amtech Systems (NASDAQ: ASYS) reported Q4 EPS of $0.07, $0.05 better than the analyst estimate of $0.02. Revenue for the quarter came in at $20.2 million versus the consensus estimate of $19.23 million.

Fourth Quarter Fiscal 2019 Financial and Operational Highlights from Continuing Operations:

• Net revenue of $20.2 million
• Income from continuing operations, net of tax, of $1.0 million
• Income per diluted share from continuing operations of $0.07
• Customer orders of $20.3 million
• Unrestricted cash of $53.0 million

Mr. J.S. Whang, Executive Chairman and Chief Executive Officer of Amtech, commented, "We can now report that we are in the final stages of the planned divestiture of our solar business and expect to have an announcement before 2019 year-end. Additionally, while evaluating how R2D, our French automation division, might fit into our power semi strategy, a buy-out offer was submitted by certain key members of R2D management. After careful consideration, we accepted the offer and expect to complete the sale in fiscal Q1 2020. We are confident that each of these divestitures is the right decision for Amtech and these businesses. We see this as another step completed in our plan to dedicate our focus and resources to our semiconductor and silicon carbide growth opportunities."

Mr. Whang continued, "We believe we are on a well-defined path to build our power semi business, including making key investments to develop next-generation equipment and enhance and expand our product portfolio, increasing capacity, and other select investments in our silicon carbide and semi businesses. As the market shifts from silicon to silicon carbide solutions for many next-generation applications, we expect to be ready with leading-edge technology solutions. We see indicators that the semi industry will rebound in the second half of 2020, and we will be ready to participate in the recovery and growth. We believe the future is bright and look forward to converting our investments to greater value for all Amtech stakeholders."

GUIDANCE:

Amtech Systems sees Q1 2020 revenue of $16-18 million, versus the consensus of $19.46 million.

For the quarter ending December 31, 2019, further softness is expected due to continued trade tensions and the semiconductor equipment industry downcycle. Revenues for the quarter are expected to be in the range of $16 to $18 million. Gross margin for the quarter ending December 31, 2019 is expected to be in the mid 30% range, with operating margin break-even to slightly positive. The outlook assumes continued weakness in demand given soft business conditions due to the ongoing macroeconomic uncertainties and excludes the impact of any potential restructuring actions.

The semiconductor equipment industries can be cyclical and inherently impacted by changes in market demand. Additionally, operating results can be significantly impacted, positively or negatively, by the timing of orders, system shipments, and the financial results of semiconductor manufacturers.

For earnings history and earnings-related data on Amtech Systems (ASYS) click here.

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