Amtech Systems: Q4 & Full Year Results

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TEMPE, Arizona - Amtech Systems, Inc. (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 fourth quarter and fiscal year ended September 30, 2014.

Fourth Quarter 2014 Operational and Financial Highlights:

    Obtained field acceptance of PECVD production systems
    Received production order for IonSolar™ implant system
    Expanded customer base for N-type solar boron diffusion system; world leader with over 800MW installed in production, research and pilot lines
    Net revenue of $19.8 million ($12.8 million solar), up 186% from a year ago
    Shipments of $11.7 million ($3.7 million solar)
    Bookings of $11.2 million ($4.9 million solar)
    Backlog of $28.5 million at September 30, 2014
    Net loss of $3.2 million, or $0.33 per share

Fiscal Year 2014 Financial Highlights:

    Net revenue of $56.5 million ($27.6 million solar), up 62% from a year ago
    Shipments of $63.5 million ($32.9 million solar), up 138% from a year ago
    Bookings of $61.3 million ($33.9 million solar), up 41% from a year ago
    Net loss of $13.0 million, or $1.34 per share, compared to a net loss of $20.1 million, or $2.11 per share a year ago

Mr. Fokko Pentinga, Chief Executive Officer of Amtech, commented, "In fiscal 2014, we made meaningful headway as we delivered key technologies into the marketplace.  We shipped PECVD and ion implant technologies to our industry-leading customers, received field acceptance on the PECVD shipments and a first production order for our ion implant technology solution.  Additionally, we made excellent progress as we ramped up n-type cell production in San Antonio, Texas."  

Pentinga continued, "We have seen some strengthening in the solar market which resulted in improved year-over-year bookings growth and a lower loss per share and expect to participate in fiscal 2015 in selective capacity expansion opportunities given our superior technologies and products.  In October, we announced our intent to acquire BTU International.  The combination of our two businesses expands our technology portfolio in adjacent sectors within the thermal processing equipment industry.  Plus, we look for our combined businesses to deliver consistent cash flow to support the ongoing investment in our solar technology solutions and products and Amtech's long-term solar growth opportunity."

Net revenue for the fourth quarter of fiscal 2014 totaled $19.8 million compared to $9.2 million in the previous quarter and $6.9 million in the fourth quarter of fiscal 2013.  The increase is primarily due to favorable recognition of previously-deferred revenue resulting from increased customer acceptances, as well as a high level of revenue deferred in the previous quarter.  Partially offsetting the increase were lower shipments during the fourth quarter of fiscal 2014.

Total customer orders were $11.2 million ($4.9 million solar) in the fourth quarter of fiscal 2014, an increase of 34% compared to total orders of $8.4 million ($0.1 million solar) in the same period a year ago.    

At September 30, 2014, the Company's total order backlog was $28.5 million, including $20.9 million in solar orders and deferred revenue.  The effect of foreign exchange on backlog during the September quarter was a negative $2.3 million.  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 2014 was 13%, compared to 18% in the previous quarter and 46% in the fourth quarter of fiscal 2013.  The lower margins sequentially resulted primarily from the recognition of lower-margin products as well as lower shipment volume.  Gross margin in the fourth quarter of fiscal 2013 reflected a high percentage of net revenue resulting from recognition of previously-deferred revenue.  Selling, general and administrative (SG&A) expenses in the fourth quarter of fiscal 2014 were $4.9 million compared to $4.1 million in the preceding quarter, a 20% increase, resulting primarily from expenses relating to the pending merger with BTU International, Inc.

Research and Development (R&D) expense was $1.8 million in the fourth quarter compared to $1.4 million in preceding quarter.  The increase in R&D expense is primarily due to lower recognition of grant funding during the fourth quarter of fiscal 2014.

Depreciation and amortization in the fourth quarter of fiscal 2014 was $613,000 compared to $591,000 in the third quarter of 2014.

Net loss for the fourth quarter of fiscal 2014 was $3.2 million, or $0.33 per share, compared to a net loss of $5.3 million, or $0.53 per share, in the preceding quarter and a net loss of $1.7 million or $0.18 per share in the fourth quarter of fiscal 2013.

Total unrestricted cash and cash equivalents at September 30, 2014 were $27.4 million, compared to $31.6 million at June 30, 2014, primarily due to losses from operations.


About Amtech Systems, Inc.

Amtech Systems, Inc. is a leading global provider of production and automation systems and related consumables used in fabricating solar cells, LEDs and semiconductor devices. These products 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 in the fabrication of solar cells, LEDs, semiconductors, MEMS 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 and Kingstone Semiconductor.  Amtech is leveraging its proven technology, established brands and strong industry presence to further expand its penetration into the large and growing solar, LED and semiconductor markets.

Contact:
Amtech Systems, Inc.
Bradley C. Anderson
Chief Financial Officer
(480) 967-5146
[email protected]
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