Form 8-K AMTECH SYSTEMS INC For: Nov 27
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): November 27, 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 November 29, 2018, Amtech Systems, Inc. (the “Registrant”) announced by press release its results of operations for the fourth quarter and fiscal year ended September 30, 2018. 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 8.01 Other Events.
On November 27, 2018, the Board of Directors of Amtech Systems, Inc. (the “Company”) approved a stock repurchase program, pursuant to which the Company may repurchase up to $4 million of its outstanding common stock, par value $0.01 per share, over a one-year period, commencing immediately. Repurchases under the program will be made in open market transactions at prevailing market prices, in privately negotiated transactions, or by other means in compliance with the rules and regulations of the Securities and Exchange Commission; however, the Company has no obligation to repurchase shares and the timing, actual number, and value of shares to be repurchased is subject to management’s discretion and will depend on the Company’s stock price and other market conditions. The Company may, in the sole discretion of the Board of Directors, terminate the repurchase program at any time while it is in effect.
Item 9.01 Financial Statements and Exhibits.
Exhibit No. Description
99.1 Press Release dated November 29, 2018
Exhibit Index
Exhibit No. Description
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: | November 29, 2018 | By: /s/ Lisa D. Gibbs | |
Name: Lisa D. Gibbs | |||
Title: Vice President & Chief Accounting Officer | |||
EXHIBIT 99.1
Amtech Reports Fourth Quarter and Fiscal 2018 Results
TEMPE, Ariz., November 29, 2018 /PRNewswire/ -- Amtech Systems, Inc. (NASDAQ: ASYS), a manufacturer of capital equipment, including thermal processing and wafer handling automation, and related consumables used in fabricating semiconductor devices, light-emitting diodes, or LEDs, silicon carbide (SiC) and silicon power chips and solar cells, today reported results for its fourth quarter and year ended September 30, 2018.
Fourth Quarter Fiscal 2018 Financial and Operational Highlights:
• | Net revenues of $28.8 million (Combined Semi and LED/SiC* $22.3M, Solar $6.6M) |
• | Net loss of $9.0 million, after a $7.0 million non-cash impairment charge in the Solar segment |
• | Diluted loss per share of $0.61 |
• | Customer orders of $40.4 million (Combined Semi and LED/SiC* $23.7M, Solar $16.7M) |
• | September 30, 2018 backlog of $51.1 million (Combined Semi and LED/SiC* $23.7M, Solar $27.4M) |
• | Book to bill ratio of 1.4:1 (Combined Semi and LED/SiC* 1.1:1, Solar 2.7:1) |
• | Unrestricted cash of $58.3 million |
Fiscal Year 2018 Financial and Operational Highlights:
• | Net revenues of $176.4 million (Combined Semi and LED/SiC* $93.9M, Solar $82.5M) |
• | Net income of $5.3 million, after a $7.0 million non-cash impairment charge in the Solar segment |
• | Diluted earnings per share of $0.35 |
• | Customer orders of $132.7 million (Combined Semi and LED/SiC* $96.6M, Solar $36.1M) |
• | Book to bill ratio of 0.8:1 (Combined Semi and LED/SiC* 1.0:1, Solar 0.4:1) |
Mr. J.S. Whang, Executive Chairman of Amtech, commented, “In fiscal year 2018, we realized progress in all of our businesses, closing the year with record net revenues in our combined semiconductor and LED/SiC businesses. In solar, we successfully installed Phase I of our large turnkey project and announced orders this quarter of more than $11 million for our N-type systems."
Mr. Whang continued, "We continue to develop our core technologies to ensure we are best positioned to be the supplier of choice in the marketplace. We look forward to continuing to prudently invest in the long-term profitable growth of the Company. And, in combination with that ongoing investment, we are pleased to report that in the fourth quarter we bought back over 771,000 shares of our common stock, completing our $4 million stock repurchase plan. In November 2018, the Board of Directors approved an additional $4 million stock repurchase plan."
Net revenue for the fourth quarter of fiscal 2018 was $28.8 million compared to $41.2 million in the preceding quarter and $54.7 million in the fourth quarter of fiscal 2017. The sequential decrease is primarily due to decreased shipments of our solar and semiconductor equipment. Compared to the prior year quarter, net revenue decreased due primarily to lower shipments of solar equipment for the turnkey project. Our semiconductor shipments are experiencing quarter-to-quarter variability based on the timing of orders and the delivery schedules established by one of our customers.
Unrestricted cash and cash equivalents at September 30, 2018 were $58.3 million, compared to $51.1 million at September 30, 2017. Pursuant to our previously announced stock repurchase program, during the quarter ended September 30, 2018, we completed our $4.0 million stock repurchase plan and repurchased 771,149 shares of our common stock. All shares repurchased were retired. On November 27, 2018 the Board of Directors of Amtech Systems, Inc. (the “Company”) approved a stock repurchase program, pursuant to which the Company may repurchase up to $4 million of its outstanding common stock, par value $0.01 per share, over a one-year period.
At September 30, 2018, our total order backlog was $51.1 million (Semi and LED/SiC* segments $23.7 million, Solar segment $27.4 million), compared to total backlog of $41.2 million (Semi and LED/SiC* segments $22.3 million, Solar segment $19.0 million) at June 30, 2018. 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 2018 was 29%, compared to 35% in the preceding quarter and 36% in the fourth quarter of fiscal 2017. Sequentially and compared to the prior year, gross margin decreased primarily due to lower volumes and factory utilization, and less recognition of previously deferred profit.
Selling, general and administrative expense (“SG&A”) in the fourth quarter of fiscal 2018 was $7.9 million, compared to $9.5 million in the preceding quarter and $9.8 million in the fourth quarter of fiscal 2017. Sequentially and compared to prior year, SG&A decreased primarily due to lower commissions and freight resulting from lower shipments. Lower employee-related expenses in the fourth quarter of fiscal 2018 also contributed to the decrease in SG&A compared to prior year.
As previously announced, due to the ongoing challenges we are experiencing in our Solar segment, we implemented a restructuring plan ("the Plan") during the fourth quarter of fiscal 2018. Once fully implemented, we expect the Plan to reduce operating costs by approximately $3 million on an annualized basis. It is expected that the effect of these reductions will not be fully realized until our third quarter of fiscal 2019. The Plan is to better align our workforce with the current needs of our business and enhance our competitive position for long-term success. Under the Plan, we reduced our Solar workforce by approximately 35-40 employees. We recorded approximately $0.9 million of related costs in the fourth quarter of fiscal 2018. We conducted our periodic assessment of long-lived assets in the fourth quarter of fiscal 2018. The assessment resulted in a determination that the goodwill and intangible assets of the Solar segment were impaired in the amounts of $5.7 million and $1.3 million, respectively, due primarily to the decline in the expected performance of that segment. We will continue to evaluate opportunities to improve our operational efficiencies and effectiveness, including greater China sourcing, in order to improve the competitive position for our Solar segment while pursuing continued technological advancements.
Research, development and engineering (RD&E) expense was $1.5 million in the fourth quarter of fiscal 2018 compared to $2.1 million in the preceding quarter and $1.8 million in the fourth quarter of fiscal 2017.
Income tax in the fourth quarter of fiscal 2018 was an expense of $0.4 million compared to $1.4 million in the preceding quarter and $0.5 million in the fourth quarter of fiscal 2017.
Net loss for the fourth quarter of fiscal 2018 was $9.0 million, or $0.61 per diluted share, compared to net income of $7.3 million, or $0.51 per diluted share for the fourth quarter of fiscal 2017 and net income of $5.0 million or $0.33 per diluted share in the preceding quarter. The net loss in the fourth quarter of fiscal 2018 was primarily due to the $7.0 million non-cash impairment in the Solar segment.
*Note: LED/SiC (silicon carbide) refers to our Polishing segment. Combined Semi and LED/SiC refers to the sum of our Semiconductor and LED/SiC segments. Solar refers to our Solar segment, which includes products sold for semiconductor applications of no more than 25% of the segment’s totals. The Combined Semi and LED/SiC amounts above are non-GAAP measures, as they are a subtotal of two separate segments. These non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A tabular reconciliation of financial measures prepared in accordance with GAAP to the non-GAAP financial measures is included in the Summary Financial Information table in this press release.
Outlook
The Company expects revenues for the quarter ending December 31, 2018 to be in the range of $27 to $29 million. Gross margin for the quarter ending December 31, 2018 is expected to be in the mid to upper 20 percent range, with operating margin negative.
The solar and 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 net impact of revenue deferral on shipments, recognition of revenue based on customer acceptances and the financial results of solar and semiconductor manufacturers. The results for the coming quarters could be significantly influenced by the timing of future orders of the 1GW turnkey project and the timing of meeting start-up milestones of the turnkey production lines.
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 fourth quarter and 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 December 7, 2018. To access the replay please dial US toll free (877) 344-7529 and enter code 10125841. 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 and polishing equipment and related consumables to the semiconductor / electronics, power IC businesses, solar, and advanced lighting manufacturing markets. Amtech's equipment includes diffusion, solder reflow systems. wafer handling automation, ALD and PECVD systems and polishing equipment and related consumables for surface preparation of various materials, including silicon carbide (“SiC”), sapphire and silicon. The Company's wafer handling, thermal processing, polishing and consumable products currently address the diffusion, oxidation, and deposition steps used in the fabrication of semiconductors, printed circuit boards, semiconductor packaging, solar cells, MEMS, and advanced lighting, including the polishing of newly sliced sapphire and silicon wafers. Amtech’s products are recognized under the leading brand names BTU International, Bruce TechnologiesTM, PR HoffmanTM, Tempress SystemsTM, R2D AutomationTM and SoLayTec.
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, plans and objectives of Amtech and its management for future operations, efforts to improve operational efficiencies and effectiveness and greater China sourcing. 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 used in this press release or by 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, as amended, 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 | Christensen Investor Relations Patty Bruner (480) 201-6075 |
AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
November 29, 2018
(Unaudited)
Summary Financial Information | ||||||||||||||||
(in thousands, except percentages and ratios) | ||||||||||||||||
Three Months Ended | Years Ended September 30, | |||||||||||||||
September 30, 2018 | June 30, 2018 | September 30, 2017 | 2018 | 2017 | ||||||||||||
Amtech Systems, Inc. | ||||||||||||||||
Revenues, net of returns and allowances | $ | 28,832 | $ | 41,200 | $ | 54,677 | $ | 176,426 | $ | 164,516 | ||||||
Gross profit | $ | 8,496 | $ | 14,599 | $ | 19,592 | $ | 55,157 | $ | 51,932 | ||||||
Gross margin | 29 | % | 35 | % | 36 | % | 31 | % | 32 | % | ||||||
Operating income | $ | (8,848 | ) | $ | 2,936 | $ | 8,034 | $ | 1,919 | $ | 10,425 | |||||
New orders | $ | 40,420 | $ | 26,207 | $ | 27,645 | $ | 132,710 | $ | 210,488 | ||||||
Book-to-bill ratio | 1.4:1 | 0.7:1 | 0.5:1 | 0.8:1 | 1.3:1 | |||||||||||
Backlog | $ | 51,101 | $ | 41,231 | $ | 102,377 | $ | 51,101 | $ | 102,377 | ||||||
Semiconductor Segment | ||||||||||||||||
Revenues, net of returns and allowances | $ | 19,218 | $ | 23,472 | $ | 22,139 | $ | 80,163 | $ | 67,237 | ||||||
Gross profit | $ | 7,238 | $ | 8,721 | $ | 8,189 | $ | 30,522 | $ | 26,340 | ||||||
Gross margin | 38 | % | 37 | % | 37 | % | 38 | % | 39 | % | ||||||
Operating income | $ | 2,726 | $ | 3,861 | $ | 3,525 | $ | 11,848 | $ | 9,538 | ||||||
New orders | $ | 19,478 | $ | 17,871 | $ | 14,492 | $ | 81,868 | $ | 72,931 | ||||||
Book-to-bill ratio | 1.0:1 | 0.8:1 | 0.7:1 | 1.0:1 | 1.1:1 | |||||||||||
Backlog | $ | 21,023 | $ | 20,764 | $ | 19,318 | $ | 21,023 | $ | 19,318 | ||||||
Solar Segment | ||||||||||||||||
Revenues, net of returns and allowances | $ | 6,573 | $ | 14,134 | $ | 30,071 | $ | 82,502 | $ | 87,031 | ||||||
Gross profit | $ | 344 | $ | 4,584 | $ | 10,165 | $ | 19,351 | $ | 21,671 | ||||||
Gross margin | 5 | % | 32 | % | 34 | % | 23 | % | 25 | % | ||||||
Operating (loss) income | $ | (10,413 | ) | $ | (85 | ) | $ | 5,970 | $ | (7,050 | ) | $ | 6,060 | |||
New orders | $ | 16,712 | $ | 5,029 | $ | 9,554 | $ | 36,073 | $ | 126,577 | ||||||
Book-to-bill ratio | 2.7:1 | 0.4:1 | 0.3:1 | 0.4:1 | 1.4:1 | |||||||||||
Backlog | $ | 27,383 | $ | 18,960 | $ | 81,371 | $ | 27,383 | $ | 81,371 | ||||||
LED/SiC Segment | ||||||||||||||||
Revenues, net of returns and allowances | $ | 3,041 | $ | 3,594 | $ | 2,467 | $ | 13,761 | $ | 10,248 | ||||||
Gross profit | $ | 914 | $ | 1,294 | $ | 1,238 | $ | 5,284 | $ | 3,921 | ||||||
Gross margin | 30 | % | 36 | % | 50 | % | 38 | % | 38 | % | ||||||
Operating income | $ | 520 | $ | 938 | $ | 911 | $ | 3,672 | $ | 2,617 | ||||||
New orders | $ | 4,230 | $ | 3,307 | $ | 3,598 | $ | 14,769 | $ | 10,980 | ||||||
Book-to-bill ratio | 1.4:1 | 0.9:1 | 1.5:1 | 1.1:1 | 1.1:1 | |||||||||||
Backlog | $ | 2,695 | $ | 1,507 | $ | 1,688 | $ | 2,695 | $ | 1,688 | ||||||
AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
November 29, 2018
(Unaudited)
Condensed Consolidated Statements of Operations | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
Three Months Ended September 30, | Years Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues, net of returns and allowances | $ | 28,832 | $ | 54,677 | $ | 176,426 | $ | 164,516 | |||||||
Cost of sales | 20,336 | 35,085 | 121,269 | 112,584 | |||||||||||
Gross profit | 8,496 | 19,592 | 55,157 | 51,932 | |||||||||||
Selling, general and administrative | 7,936 | 9,771 | 37,535 | 35,135 | |||||||||||
Research, development and engineering | 1,505 | 1,787 | 7,800 | 6,372 | |||||||||||
Impairment charges | 7,006 | — | 7,006 | — | |||||||||||
Restructuring charges | 897 | — | 897 | — | |||||||||||
Operating (loss) income | (8,848 | ) | 8,034 | 1,919 | 10,425 | ||||||||||
Gain on sale of other assets | — | — | 2,883 | — | |||||||||||
(Loss) income from equity method investment | — | (216 | ) | 234 | (417 | ) | |||||||||
Interest and other income (expense), net | 265 | (27 | ) | 489 | (178 | ) | |||||||||
Income before income taxes | (8,583 | ) | 7,791 | 5,525 | 9,830 | ||||||||||
Income tax provision | 370 | 474 | 220 | 1,744 | |||||||||||
Net (loss) income | (8,953 | ) | 7,317 | 5,305 | 8,086 | ||||||||||
Add: net loss attributable to noncontrolling interest | — | — | — | 1,045 | |||||||||||
Net (loss) income attributable to Amtech Systems, Inc. | $ | (8,953 | ) | $ | 7,317 | $ | 5,305 | $ | 9,131 | ||||||
(Loss) Income Per Share: | |||||||||||||||
Basic (loss)income per share attributable to Amtech shareholders | $ | (0.61 | ) | $ | 0.53 | $ | 0.36 | $ | 0.68 | ||||||
Weighted average shares outstanding | 14,730 | 13,895 | 14,833 | 13,378 | |||||||||||
Diluted (loss) income per share attributable to Amtech shareholders | $ | (0.61 | ) | $ | 0.51 | $ | 0.35 | $ | 0.68 | ||||||
Weighted average shares outstanding | 14,730 | 14,294 | 15,065 | 13,501 | |||||||||||
AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
November 29, 2018
(unaudited)
Condensed Consolidated Balance Sheets | ||||||||
(in thousands, except share data) | ||||||||
September 30, 2018 | September 30, 2017 | |||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 58,331 | $ | 51,121 | ||||
Restricted cash | 4,165 | 24,640 | ||||||
Accounts receivable | ||||||||
Trade (less allowance for doubtful accounts of $1,407 and $866 at September 30, 2018, and September 30, 2017, respectively) | 20,475 | 22,519 | ||||||
Unbilled and other | 12,749 | 14,275 | ||||||
Inventory | 24,710 | 30,210 | ||||||
Vendor deposits | 668 | 11,806 | ||||||
Other | 3,192 | 2,542 | ||||||
Total current assets | 124,290 | 157,113 | ||||||
Property, Plant and Equipment - Net | 16,452 | 15,792 | ||||||
Intangible Assets - Net | 1,130 | 3,495 | ||||||
Goodwill - Net | 6,633 | 11,405 | ||||||
Investments | — | 2,615 | ||||||
Deferred Income Taxes - Long-Term | — | 200 | ||||||
Other Assets - Long-Term | 901 | 1,003 | ||||||
Total Assets | $ | 149,406 | $ | 191,623 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 11,374 | $ | 21,555 | ||||
Accrued compensation and related taxes | 7,394 | 7,592 | ||||||
Accrued warranty expense | 1,040 | 1,254 | ||||||
Other accrued liabilities | 4,239 | 2,056 | ||||||
Customer deposits | 15,298 | 48,784 | ||||||
Current maturities of long-term debt | 374 | 361 | ||||||
Deferred profit | 3,071 | 4,081 | ||||||
Income taxes payable | 2,353 | 286 | ||||||
Total current liabilities | 45,143 | 85,969 | ||||||
Long-Term Debt | 7,960 | 8,134 | ||||||
Income Taxes Payable - Long-Term | 3,213 | 7,037 | ||||||
Total Liabilities | 56,316 | 101,140 | ||||||
Commitments and Contingencies | ||||||||
Shareholders’ 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: 14,216,596 and 14,710,591 at September 30, 2018, and September 30, 2017, respectively | 142 | 147 | ||||||
Additional paid-in capital | 124,316 | 125,564 | ||||||
Accumulated other comprehensive loss | (9,974 | ) | (8,529 | ) | ||||
Retained deficit | (21,394 | ) | (26,699 | ) | ||||
Total shareholders’ equity | 93,090 | 90,483 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 149,406 | $ | 191,623 | ||||
AMTECH SYSTEMS, INC.
(NASDAQ: ASYS)
November 29, 2018
(unaudited)
Condensed Consolidated Statements of Cash Flows | |||||||
(in thousands) | |||||||
Years Ended September 30, | |||||||
2018 | 2017 | ||||||
Operating Activities | |||||||
Net income | $ | 5,305 | $ | 8,086 | |||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||
Depreciation and amortization | 1,854 | 2,493 | |||||
Non-cash impairment charges | 7,006 | — | |||||
Write-down of inventory | 542 | 420 | |||||
Capitalized interest | 143 | 277 | |||||
Deferred income taxes | 209 | (27 | ) | ||||
Non-cash share based compensation expense | 855 | 1,328 | |||||
(Gain) loss on sale of property, plant and equipment | (92 | ) | 26 | ||||
Gain on sale of other assets | (2,883 | ) | — | ||||
(Gain) loss from equity method investment | (234 | ) | 417 | ||||
Provision for (reversal of) allowance for doubtful accounts, net | 45 | (720 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Restricted cash | 20,558 | (22,262 | ) | ||||
Accounts receivable | 3,274 | (8,655 | ) | ||||
Inventory | 3,965 | (6,638 | ) | ||||
Accrued income taxes | (1,749 | ) | 573 | ||||
Vendor deposits and other assets | 10,649 | (8,898 | ) | ||||
Accounts payable | (10,164 | ) | 5,374 | ||||
Customer deposits and accrued liabilities | (31,532 | ) | 40,817 | ||||
Deferred profit | (961 | ) | (822 | ) | |||
Net cash provided by operating activities | 6,790 | 11,789 | |||||
Investing Activities | |||||||
Purchases of property, plant and equipment | (1,495 | ) | (1,256 | ) | |||
Proceeds from sale of property, plant and equipment | 114 | 40 | |||||
Proceeds from sale of other assets | 5,732 | — | |||||
Net cash provided by (used in) investing activities | 4,351 | (1,216 | ) | ||||
Financing Activities | |||||||
Proceeds from the exercise of stock options | 1,892 | 12,602 | |||||
Repurchases of common stock | (4,000 | ) | — | ||||
Payments on long-term debt | (368 | ) | (674 | ) | |||
Borrowings on long-term debt | — | 755 | |||||
Excess tax benefit of stock compensation | — | 18 | |||||
Net cash (used in) provided by financing activities | (2,476 | ) | 12,701 | ||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (1,455 | ) | 192 | ||||
Net Increase in Cash and Cash Equivalents | 7,210 | 23,466 | |||||
Cash and Cash Equivalents, Beginning of Year | 51,121 | 27,655 | |||||
Cash and Cash Equivalents, End of Year | $ | 58,331 | $ | 51,121 | |||