Form 8-K AMTECH SYSTEMS INC For: Feb 08

February 8, 2018 4:17 PM



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 8, 2018
 
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))
_____________________________________________________________________________________________
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
 
[ ]
Emerging growth company
[ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.






Item 2.02    Results of Operations and Financial Condition

On February 8, 2018, Amtech Systems, Inc. (the “Registrant”) announced by press release its results of operations for the first quarter ended December 31, 2017. 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 99.1, 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.


Item 9.01    Financial Statements and Exhibits.

Exhibit No.            Description                
99.1                Press Release dated February 8, 2018






Exhibit Index    


Exhibit No.            Description                
99.1Press Release dated February 8, 2018






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 8, 2018
 
By: /s/ Lisa D. Gibbs
 
 
 
Name: Lisa D. Gibbs
 
 
 
Title: Vice President & Chief Accounting Officer





EXHIBIT 99.1

Amtech Reports First Quarter Fiscal 2018 Results

TEMPE, Ariz., February 8, 2018 /PRNewswire/ -- Amtech Systems, Inc. (NASDAQ: ASYS), a global manufacturer and supplier of production equipment and related supplies for the solar, semiconductor and LED markets, today reported results for its first quarter ended December 31, 2017.

First Quarter Fiscal 2018 Financial and Operational Highlights:

Net revenues of $73.6 million (solar $49.2 million)
Net income of $6.5 million
Diluted earnings per share of $0.42
Customer orders of $37.3 million (solar $7.3 million)
Quarter-end backlog of $65.9 million (solar $39.3 million)
Book to bill ratio of 0.5:1 (0.1:1 solar)
Unrestricted cash of $52.7 million

Mr. Fokko Pentinga, Chief Executive Officer of Amtech, commented, “As anticipated, we had a very good start to our fiscal 2018. In the December quarter we had record revenues with an even higher record level of shipments, along with solid profitability. All three of our reporting segments, solar, semiconductor, and polishing, performed well, with our semiconductor and polishing segments outperforming our expectations. Our financial position is strong and we continue to make strategic investments in our businesses and to focus on operational excellence.”

Net revenue for the first quarter of fiscal 2018 was $73.6 million compared to $54.7 million in the preceding quarter and $29.1 million in the first quarter of fiscal 2017. The sequential increase is due primarily to the shipment of all of the equipment for Phase II of the solar turnkey order and increased sales of our polishing templates. The increase from the prior year quarter is due primarily to shipments relating to Phase II of the solar turnkey order, as well as increased shipments of our semiconductor equipment and sales of our polishing templates.

Net income for the first quarter of fiscal 2018 was $6.5 million, or $0.42 per diluted share, compared to a net loss of $0.1 million, or $0.00 per share for the first quarter of fiscal 2017 and net income of $7.3 million or $0.51 per diluted share in the preceding quarter.

Unrestricted cash and cash equivalents at December 31, 2017 were $52.7 million, compared to $51.1 million at September 30, 2017.

At December 31, 2017, our total order backlog was $65.9 million (solar $39.3 million), compared to total backlog of $102.4 million (solar $81.4 million) at September 30, 2017. Backlog includes deferred revenue and customer orders that are expected to ship within the next 12 months.

Gross margin in the first quarter of fiscal 2018 was 28%, compared to 36% in the preceding quarter and 29% in the first quarter of fiscal 2017. Sequentially, gross margin decreased primarily due to $2.1 million in revenue deferrals in the first quarter of fiscal 2018, compared to the recognition of $1.5 million of previously deferred profit in the fourth quarter of fiscal 2017. Additionally, less utilization of previously reserved inventory and sales of lower-margin products in our semiconductor segment contributed to the sequential decrease in gross margin. Compared to the prior year quarter, gross margin decreased slightly on higher sales volumes due to a lower-margin product mix and a deferral of profit in the first quarter of fiscal 2018, compared to recognition of previously deferred profit in the first quarter of fiscal 2017.

Selling, general and administrative expense ("SG&A") in the first quarter of fiscal 2018 were $10.6 million, compared to $9.8 million in the preceding quarter and $7.0 million in the first quarter of fiscal 2017.





Sequentially, the SG&A increase was due primarily to increased commissions and freight related to the higher revenues, partially offset by lower employee-related expenses. The increase in SG&A from the prior year quarter is due primarily to higher commissions, freight, and other selling expenses. For the three months ended December 31, 2016, SG&A expenses include the collection of previously reserved accounts receivable of approximately $1.0 million which contributed to the year-over-year increase.

Research, development and engineering (RD&E) expense was $2.0 million in the first quarter of fiscal 2018 compared to $1.8 million in the preceding quarter and $1.6 million in the first quarter of fiscal 2017.

Income tax expense in the first quarter of fiscal 2018 was $1.2 million compared to $0.5 million in the preceding quarter and $0.1 million in the first quarter of fiscal 2017.

Outlook

The company expects revenues for the quarter ending March 31, 2018 to be in the range of $26 to $29 million. Gross margin for the quarter ending March 31, 2018 is expected to be in the mid 20 percent range, with operating margin slightly negative.

The solar and semiconductor equipment industries can be cyclical and inherently impacted by changes in market demand. Additionally, operating results can be impacted by the timing of orders, system shipments and the financial results of the solar and semiconductor businesses.  The results for the second half of fiscal 2018 will be significantly influenced by the timing of the Phase III order of the 1GW turnkey project. Operating results could also be affected by the net impact of revenue deferral on shipments, and recognition of revenue based on customer acceptances, and progress on the start-up of the turnkey production lines, 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 5:00 p.m. ET to discuss first quarter fiscal 2018 financial results. Those in the USA wishing to participate in the live call should dial (844) 868-9329. From Canada, dial (866) 605-3852, and internationally, dial (412) 317-6703. 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 February 15, 2018.  To access the replay please dial US toll free (877) 344-7529 and enter code 10116145. 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). The forward-looking statements in this press release relate only to events or information as of the date on which the statements are made in this press release. 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. 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. 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, 2017, 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-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.
Robert T. Hass
Chief Financial Officer
(480) 967-5146
irelations@Amtechsystems.com
Christensen
Investor Relations
Patty Bruner
(480) 201-6075
pbruner@christensenir.com

 







AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
February 8, 2018
(Unaudited)

Condensed Consolidated Statements of Operations
 
 
 
(in thousands, except per share data)
 
 
 
 
 
 
 
 
Three Months Ended December 31,
 
2017
 
2016
Revenues, net of returns and allowances
$
73,611

 
$
29,135

Cost of sales
53,274

 
20,692

Gross profit
20,337

 
8,443

 
 
 
 
Selling, general and administrative
10,580

 
6,996

Research, development and engineering
1,991

 
1,627

Operating income (loss)
7,766

 
(180
)
 
 
 
 
Loss from equity method investment
(26
)
 
(143
)
Interest and other expense, net
(48
)
 
81

Income (loss) before income taxes
7,692

 
(242
)
Income tax provision
1,240

 
90

Net income (loss)
6,452

 
(332
)
 
 
 
 
Add: net loss attributable to noncontrolling interest

 
279

Net income (loss) attributable to Amtech Systems, Inc.
$
6,452

 
$
(53
)
 
 
 
 
Income (Loss) Per Share:
 
 
 
Basic income (loss) per share attributable to Amtech shareholders
$
0.44

 
$
0.00

Weighted average shares outstanding
14,781

 
13,179

Diluted income (loss) per share attributable to Amtech shareholders
$
0.42

 
$
0.00

Weighted average shares outstanding
15,298

 
13,179



  





AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
February 8, 2018
(unaudited)

Condensed Consolidated Balance Sheets
 
 
 
 
(in thousands, except share data)
 
 
 
 
 
 
December 31,
2017
 
September 30,
2017
Assets
 
 
 
 
Current Assets
 
 
 
 
Cash and cash equivalents
 
$
52,696

 
$
51,121

Restricted cash
 
9,913

 
24,640

Accounts receivable
 
 
 
 
Trade (less allowance for doubtful accounts of $1,473 and $866 at December 31, 2017, and September 30, 2017, respectively)
 
24,365

 
22,519

Unbilled and other
 
21,620

 
14,275

Inventories
 
22,762

 
30,210

Vendor deposits
 
5,180

 
11,806

Other
 
2,310

 
2,542

Total current assets
 
138,846

 
157,113

Property, Plant and Equipment - Net
 
15,637

 
15,792

Intangible Assets - Net
 
3,378

 
3,495

Goodwill - Net
 
11,484

 
11,405

Investments
 
2,588

 
2,615

Deferred Income Taxes - Long-Term
 
200

 
200

Other Assets - Long-Term
 
980

 
1,003

Total Assets
 
$
173,113

 
$
191,623

Liabilities and Stockholders' Equity
 
 
 
 
Current Liabilities
 
 
 
 
Accounts payable
 
$
20,483

 
$
21,555

Accrued compensation and related taxes
 
7,422

 
7,592

Accrued warranty expense
 
1,401

 
1,254

Other accrued liabilities
 
2,918

 
2,056

Customer deposits
 
19,328

 
48,784

Current maturities of long-term debt
 
365

 
361

Deferred profit
 
5,632

 
4,081

Income taxes payable
 
1,608

 
286

Total current liabilities
 
59,157

 
85,969

Long-Term Debt
 
8,225

 
8,134

Income Taxes Payable - Long-Term
 
6,802

 
7,037

Total Liabilities
 
74,184

 
101,140

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: 14,876,430 and 14,710,591 at December 31, 2017, and September 30, 2017, respectively
 
149

 
147

Additional paid-in capital
 
127,015

 
125,564

Accumulated other comprehensive loss
 
(7,988
)
 
(8,529
)
Retained deficit
 
(20,247
)
 
(26,699
)
Total equity
 
98,929

 
90,483

Total Liabilities and Stockholders' Equity
 
$
173,113

 
$
191,623






AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
February 8, 2018
(unaudited)

Condensed Consolidated Statements of Cash Flows
 
 
 
(in thousands)
 
 
 
 
 
 
 
 
Three Months Ended December 31,
 
2017
 
2016
Operating Activities
 
 
 
Net income (loss)
$
6,452

 
$
(332
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
 
 
 
Depreciation and amortization
471

 
654

Write-down of inventory
41

 
33

Capitalized interest
143

 
190

Deferred income taxes
(7
)
 
31

Non-cash share based compensation expense
253

 
319

Loss from equity method investment
26

 
143

Provision for (reversal of) allowance for doubtful accounts, net
48

 
(1,178
)
Changes in operating assets and liabilities:
 
 
 

Restricted cash
14,885

 
(2,425
)
Accounts receivable
(8,869
)
 
(3,600
)
Inventories
7,558

 
1,621

Accrued income taxes
1,087

 
239

Vendor deposits and other assets
6,974

 
725

Accounts payable
(1,255
)
 
78

Customer deposits and accrued liabilities
(29,023
)
 
584

Deferred profit
1,479

 
(619
)
Net cash provided by (used in) operating activities
263

 
(3,537
)
Investing Activities
 
 
 
Purchases of property, plant and equipment
(93
)
 
(86
)
Proceeds from sale of property, plant and equipment

 
1

Net cash used in investing activities
(93
)
 
(85
)
Financing Activities
 
 
 
Proceeds from exercise of stock options
1,199

 
1

Payments on long-term debt
(89
)
 
(160
)
Borrowings on long-term debt

 
21

Net cash provided by (used in) financing activities
1,110

 
(138
)
Effect of Exchange Rate Changes on Cash and Cash Equivalents
295

 
(257
)
Net Increase (Decrease) in Cash and Cash Equivalents
1,575

 
(4,017
)
Cash and Cash Equivalents, Beginning of Period
51,121

 
27,655

Cash and Cash Equivalents, End of Period
$
52,696

 
$
23,638

 
 
 
 



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