Amtech reports fourth quarter and fiscal 2022 results
Tempe, ariz.--(business wire)--amtech systems, inc. ("amtech") (nasdaq: asys), a manufacturer of capital equipment, including thermal processing and wafer polishing, and related consumables used in fabricating semiconductor devices, such as silicon carbide (sic) and silicon power devices, analog and discrete devices, electronic assemblies and light-emitting diodes (leds), today reported results for its fourth quarter and fiscal year ended september 30, 2022. fourth quarter fiscal 2022 financial and operational highlights: net revenue of $32.3 million operating income of $3.9 million net income of $4.2 million net income per diluted share of $0.30 customer orders of $20.4 million book to bill ratio of 0.6:1 unrestricted cash of $46.9 million fiscal 2022 financial and operational highlights: net revenue of $106.3 million operating income of $17.3 million net income of $17.4 million net income per diluted share of $1.22 customer orders of $114.0 million book to bill ratio of 1.1:1 september 30, 2022 backlog of $50.8 million repurchased 434,813 shares for $4.1 million “fiscal 2022 was yet another strong year for amtech, with over $106 million in revenue, representing a year-over-year growth rate of 25%. while near-term expectations are tempered by both easing demand and supply chain limitations, in the mid-term we are well positioned with increasing alignment to high growth, megatrend end markets such as electric vehicles. approximately half of our current backlog is related to ev capacity expansion,” commented mr. michael whang, chief executive officer of amtech. “we are securing production-scale projects across multiple amtech product lines and divisions in diverse applications including silicon carbide wafer polishing and thermal processing for ev sensors, power module substrates, and battery cooling assemblies, among others,” added whang. gaap financial results (in millions, except per share amounts) q4 fy q3 fy q4 fy 12 months 12 months 2022 2022 2021 2022 2021 net revenues $ 32.3 $ 20.0 $ 24.3 $ 106.3 $ 85.2 gross profit $ 12.6 $ 5.9 $ 9.2 $ 39.5 $ 34.5 gross margin 38.8 % 29.6 % 37.8 % 37.2 % 40.5 % operating income $ 3.9 $ 9.6 $ 1.3 $ 17.3 $ 3.7 operating margin 12.0 % 47.9 % 5.3 % 16.3 % 4.4 % net income $ 4.2 $ 10.2 $ 0.7 $ 17.4 $ 1.5 net income per diluted share $ 0.30 $ 0.73 $ 0.05 $ 1.22 $ 0.11 net revenues increased 62% sequentially and 33% from the fourth quarter of fiscal 2021, with the sequential increase primarily attributable to increased shipments of our advanced packaging equipment and increases in polishing equipment and consumables. during the third fiscal quarter of 2022, our shanghai facility was closed for approximately two months due to the government-mandated closure relating to its covid policies. the increase in net revenues from the fourth quarter of fiscal 2021 was due primarily to increased shipments across all of our product lines. gross margin increased sequentially and from the fourth quarter of fiscal 2021 due primarily to increased utilization at all our locations, partial offset by increasing material costs, primarily in our semiconductor segment. selling, general & administrative (“sg&a”) expenses increased $0.1 million on a sequential basis and $0.7 million compared to the prior year period. the increase from the fourth quarter of fiscal 2021 primarily relates to the timing of external and internal audit fees. research, development and engineering decreased $0.3 million sequentially and was relatively consistent as compared to the same prior year period. operating income was $3.9 million, compared to operating income of $9.6 million in the third quarter of fiscal 2022 and operating income of $1.3 million in the same prior year period. operating income in the third quarter of fiscal 2022 benefitted from the pre-tax gain resulting from the sale-leaseback of our building in massachusetts. income tax provision was $0.6 million for the three months ended september 30, 2022, compared to a provision of $20,000 in the preceding quarter and $0.7 million in the same prior year period. net income for the fourth quarter of fiscal 2022 was $4.2 million, or 30 cents per share. this compares to net income of $10.2 million, or 73 cents per share, for the preceding quarter and net income of $0.7 million, or 5 cents per share, for the fourth quarter of fiscal 2021. outlook the company’s outlook reflects the ongoing logistical impacts and the related delays for goods shipped to and from china, as well as supply chain delays we are experiencing in our us business. actual results may differ materially in the weeks and months ahead. additionally, the semiconductor equipment industries can be cyclical and inherently impacted by changes in market demand. operating results can be significantly impacted, positively or negatively, by the timing of orders, system shipments, and the financial results of semiconductor manufacturers. for the first fiscal quarter ending december 31, 2022, revenues are expected to be in the range of $21 to $23 million with operating margin negative. a portion of amtech's results is denominated in renminbis, a chinese currency. the outlook provided in this press release is based on an assumed exchange rate between the united states dollar and the renminbi. changes in the value of the renminbi in relation to the united states dollar could cause actual results to differ from expectations. conference call amtech systems will host a conference call today at 5:00 p.m. et to discuss our fiscal fourth quarter financial results. the call will be available to interested parties by dialing 1-877-407-0784. for international callers, please dial +1-201-689-8560. the confirmation code is 13734277. a live webcast of the conference call will be available in the investor relations section of amtech’s website at: https://www.amtechsystems.com/investors/events. a replay of the webcast will be available in the investor relations section of the company’s web site at http://www.amtechsystems.com/conference.htm shortly after the conclusion of the call and will remain available for approximately 30 calendar days. about amtech systems, inc. amtech systems, inc. is a leading, global manufacturer of capital equipment, including thermal processing and wafer polishing, and related consumables used in fabricating semiconductor devices, such as silicon carbide (sic) and silicon power devices, analog and discrete devices, electronic assemblies and light-emitting diodes (leds). we sell these products to semiconductor device and module manufacturers worldwide, particularly in asia, north america and europe. our strategic focus is on semiconductor growth opportunities in power electronics, sensors and analog devices leveraging our strength in our core competencies in thermal and substrate processing. we are a market leader in the high-end power chip market (sic substrates, 300mm horizontal thermal reactor, and electronic assemblies used in power, rf, and other advanced applications), developing and supplying essential equipment and consumables used in the semiconductor industry. amtech's products are recognized under the leading brand names btu international, bruce technologies™, pr hoffman™ and intersurface dynamics, inc. 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, and the private securities litigation reform act of 1995). 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 profitably grow our revenue, and enhancements to our technologies and expansion of our product portfolio. in some cases, forward-looking statements can be identified by terminology such as "may," "plan," "anticipate," "seek," "will," "expect," "intend," "estimate," "believe," "continue," "predict," "potential," "project," "should," "would," "could", "likely," "future," "target," "forecast," "goal," "observe," and "strategy" or the negative of these terms or other comparable terminology used in this press release or by our management, which 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, 2021, 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 in our subsequently filed quarterly reports on form 10-qs, 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. amtech systems, inc. (nasdaq: asys) (unaudited) summary financial information (in thousands, except percentages) three months ended years ended september 30, september 30, 2022 june 30, 2022 september 30, 2021 2022 2021 amtech systems, inc. revenues, net of returns and allowances $ 32,315 $ 19,964 $ 24,340 $ 106,298 $ 85,205 gross profit $ 12,553 $ 5,900 $ 9,211 $ 39,511 $ 34,530 gross margin 39 % 30 % 38 % 37 % 41 % operating income $ 3,889 $ 9,562 $ 1,296 $ 17,286 $ 3,725 new orders $ 20,365 $ 30,145 $ 34,188 $ 113,953 $ 115,444 backlog $ 50,780 $ 62,731 $ 44,143 $ 50,780 $ 44,143 semiconductor segment revenues, net of returns and allowances $ 26,498 $ 15,135 $ 19,891 $ 87,982 $ 72,086 gross profit $ 9,373 $ 3,590 $ 7,732 $ 30,880 $ 30,336 gross margin 35 % 24 % 39 % 35 % 42 % operating income $ 4,425 $ 10,521 $ 2,609 $ 20,672 $ 8,585 new orders $ 16,165 $ 24,144 $ 30,247 $ 94,268 $ 101,988 backlog $ 48,011 $ 58,344 $ 42,743 $ 48,011 $ 42,743 material and substrate segment revenues, net of returns and allowances $ 5,817 $ 4,829 $ 4,449 $ 18,316 $ 13,119 gross profit $ 3,180 $ 2,310 $ 1,479 $ 8,631 $ 4,194 gross margin 55 % 48 % 33 % 47 % 32 % operating income $ 1,737 $ 1,156 $ 264 $ 3,728 $ 278 new orders $ 4,200 $ 6,001 $ 3,941 $ 19,685 $ 13,456 backlog $ 2,769 $ 4,387 $ 1,400 $ 2,769 $ 1,400 amtech systems, inc. (nasdaq: asys) (unaudited) consolidated statements of operations (in thousands, except per share data) three months ended september 30, years ended september 30, 2022 2021 2022 2021 revenue, net $ 32,315 $ 24,340 $ 106,298 $ 85,205 cost of sales 19,762 15,129 66,787 50,675 gross profit 12,553 9,211 39,511 34,530 selling, general and administrative 7,292 6,558 28,300 24,740 research, development and engineering 1,372 1,342 6,390 5,979 gain on sale of fixed assets — — (12,465 ) — severance expense — 15 — 86 operating income 3,889 1,296 17,286 3,725 interest income (expense) and other, net 872 46 1,499 (291 ) income before income tax provision 4,761 1,342 18,785 3,434 income tax provision 578 676 1,418 1,926 net income $ 4,183 $ 666 $ 17,367 $ 1,508 income per share: net income per basic share $ 0.30 $ 0.05 $ 1.24 $ 0.11 net income per diluted share $ 0.30 $ 0.05 $ 1.22 $ 0.11 weighted average shares outstanding: basic 13,933 14,190 14,014 14,189 diluted 14,080 14,387 14,184 14,340 amtech systems, inc. (nasdaq: asys) (unaudited) consolidated balance sheets (in thousands, except share data) september 30, 2022 september 30, 2021 current assets cash and cash equivalents $ 46,874 $ 32,836 accounts receivable - net 25,013 22,502 inventories 25,488 22,075 income taxes receivable — 1,046 other current assets 5,561 2,407 total current assets 102,936 80,866 property, plant and equipment - net 6,552 14,083 right-of-use assets - net 11,258 8,646 intangible assets - net 758 858 goodwill 11,168 11,168 deferred income taxes - net 79 631 other assets 783 661 total assets $ 133,534 $ 116,913 liabilities and shareholders’ equity current liabilities accounts payable $ 7,301 $ 8,229 accrued compensation and related taxes 4,109 2,881 accrued warranty expense 871 545 other accrued liabilities 900 903 current maturities of finance lease liabilities and long-term debt 107 396 current portion of long-term operating lease liabilities 2,101 531 contract liabilities 7,231 1,624 income taxes payable 6 — total current liabilities 22,626 15,109 finance lease liabilities and long-term debt 220 4,402 long-term operating lease liabilities 9,395 8,389 income taxes payable 2,849 3,277 other long-term liabilities 76 102 total liabilities 35,166 31,279 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: 13,994,154 and 14,304,492 in 2022 and 2021, respectively 140 143 additional paid-in capital 124,458 126,380 accumulated other comprehensive (loss) income (1,767 ) 14 retained deficit (24,463 ) (40,903 ) total shareholders’ equity 98,368 85,634 total liabilities and shareholders’ equity $ 133,534 $ 116,913 amtech systems, inc. (nasdaq: asys) (unaudited) consolidated statements of cash flows (in thousands) years ended september 30, 2022 2021 operating activities net income (loss) $ 17,367 $ 1,508 adjustments to reconcile net income (loss) to net cash used in operating activities: depreciation and amortization 1,729 1,398 write-down of inventory 102 544 (reversal of) provision for allowance for doubtful accounts (32 ) 44 deferred income taxes 592 (65 ) non-cash share-based compensation expense 543 401 gain on sale of fixed assets (12,465 ) — other, net — 43 changes in operating assets and liabilities: accounts receivable (2,479 ) (11,023 ) inventories (3,684 ) (5,180 ) contract and other assets (2,203 ) (686 ) accounts payable (1,080 ) 5,472 accrued income taxes 623 353 accrued and other liabilities 584 829 contract liabilities 5,607 400 net cash provided by (used in) operating activities 5,204 (5,962 ) investing activities purchases of property, plant and equipment (1,135 ) (3,012 ) proceeds from sale of property, plant and equipment 19,908 — acquisition, net of cash and cash equivalents acquired — (5,082 ) net cash provided by (used in) investing activities 18,773 (8,094 ) financing activities proceeds from the exercise of stock options 720 1,546 repurchase of common stock (4,115 ) — payments on long-term debt (4,872 ) (380 ) borrowings on long-term debt net cash (used in) provided by financing activities (8,267 ) 1,166 effect of exchange rate changes on cash, cash equivalents and restricted cash (1,672 ) 656 net increase (decrease) in cash, cash equivalents and restricted cash 14,038 (12,234 ) cash, cash equivalents and restricted cash, beginning of year* 32,836 45,070 cash, cash equivalents and restricted cash, end of year $ 46,874 $ 32,836
