Amtech Systems: Q2 Fiscal 2013 Results
TEMPE, Arizona - Amtech Systems, Inc. (NASDAQ: ASYS), a global supplier of production and automation systems and related supplies for the manufacture of solar cells, semiconductors, and sapphire and silicon wafers, today reported results for its second fiscal quarter ending March 31, 2013.
Second Quarter Fiscal 2013 Financial Summary:
Net revenue of $8.1 million
Quarterly bookings of $9.6 million
Quarter-end backlog of $14.2 million
Gross margin of 30%
Operating loss of $3.5 million
Net loss of $2.1 million, or $(0.22) per share
Mr. Fokko Pentinga, Chief Executive Officer of Amtech, commented, "Our results reflect the difficult environment in which we are operating. We are taking actions to further reduce costs across our global operations as we see this difficult environment continuing into at least fiscal 2014. We are focused on preserving cash while we very selectively invest in advancing our technology solutions to meet the future needs of our top-tier customers."
Net revenue for the second quarter of fiscal 2013 was $8.1 million compared to $9.4 million in the preceding quarter and $21.6 million in the second quarter of fiscal 2012. The changes reflect the continued unfavorable market conditions in the solar industry as well as lower activity in the semiconductor portion of Amtech's business.
Total customer orders in the second quarter of fiscal 2013 were $9.6 million ($5.8 million solar), up from total orders of $5.0 million ($0.2 million solar) in the preceding quarter.
At March 31, 2013, the Company's total order backlog was $14.2 million, compared to total backlog of $14.7 million at December 31, 2012. Total backlog at March 31, 2013 includes $10.7 million in solar orders and deferred revenue, compared to solar backlog of $10.1 million at December 31, 2012. Foreign exchange caused a $0.4 million decrease in backlog in the March 2013 quarter due to the weakening of the Euro versus the US dollar. Backlog includes deferred revenue and customer orders that are expected to ship within the next 12 months.
Gross margin in the second quarter of fiscal 2013 was 30%, compared to 15% sequentially and 19% in the second quarter of fiscal 2012. The improvement in gross margin reflects a higher proportion of previously-deferred profit recognized at higher gross margins.
Selling, general and administrative (SG&A) expenses in the second quarter of fiscal 2013 were $4.0 million compared to $4.3 million in the preceding quarter, decreasing primarily due to company-wide cost control initiatives. SG&A expenses decreased $2.0 million from $6.0 million in the second quarter of fiscal 2012 due primarily to lower commissions and shipping costs, related to lower revenues, as well as company-wide cost control.
Research and Development (R&D) expense was $1.9 million in the second quarter of fiscal 2013 compared to $1.2 million in the preceding quarter. The increase is due primarily to the recognition of a significant amount of government grant funding which offset spending in the first quarter of fiscal 2013. R&D expense decreased $1.4 million from $3.3 million in the second quarter of fiscal 2012 due primarily to a decrease in development-related activities compared to previous quarters.
Depreciation and amortization in the second quarter of fiscal 2013 was $683,000, compared to $699,000 in the preceding quarter and $760,000 in the second quarter of fiscal 2012.
Included in the second quarter of fiscal 2013 results is $327,000 of stock option expense, compared to $433,000 in the fiscal first quarter and $437,000 in the second quarter of fiscal 2012.
Income tax in the second quarter of fiscal 2013 was a benefit of $0.8 million, resulting in an effective tax rate of approximately 23%.
The net loss for the second quarter of fiscal 2013 was $2.1 million, or ($0.22) per share, compared to a net loss of $4.2 million, or ($0.44) per share, for the first quarter of fiscal 2013. The net loss for the second quarter of fiscal 2012 was $5.1 million, or ($0.54) per share.
Total unrestricted cash and cash equivalents at March 31, 2013 were $38.8 million, compared to $42.6 million at December 31, 2012 and $46.7 million at September 30, 2012.
About Amtech Systems, Inc.
Amtech Systems, Inc. manufactures capital equipment, including silicon wafer handling automation, thermal processing and ion implant equipment and related consumables used in fabricating solar cells, LED and semiconductor devices. Semiconductors, or semiconductor chips, are fabricated on silicon wafer substrates, sliced from ingots, and are part of the circuitry, or electronic components, of many products including solar cells, computers, telecommunications devices, automotive products, consumer goods, and industrial automation and control systems. 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 and the polishing of newly sliced silicon wafers.
Amtech Systems, Inc.
Bradley C. Anderson
Chief Financial Officer
Christensen Investor Relations