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Company Tech News as it Breaks
Amtech Reports First Quarter Fiscal 2013 Results
Submitted by admin on 2/7/2013 @ 1:10 PM
Companies mentioned in this article:
Amtech Systems, Inc.
TEMPE, Ariz., Feb. 7, 2013 /PRNewswire/ -- 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 first fiscal quarter ending December 31, 2012.
First Quarter Fiscal 2013 Financial Summary:
-- Net revenue of $9.4 million
-- Solar revenue of $4.3 million
-- Semiconductor revenue of $5.1million
-- Quarterly bookings of $5.0 million
-- Quarter-end backlog of $14.7 million; solar backlog of $10.1 million
-- Gross margin of 15%
-- Operating loss of $4.8 million
-- Net loss of $4.2 million, or $(0.44) per share
Mr. Fokko Pentinga, Chief Executive Officer of Amtech, commented, "We currently expect 2013 to be a difficult year throughout the solar value chain. However, we do expect to see selective capacity expansions and limited technology buying. While visibility of the timing of a market upturn continues to be limited, we are working very closely with our customers to support both their current needs as well as their ongoing pursuit of technology differentiation through lower costs and higher cell efficiency. We have continued to invest in advancing our technologies through this cycle and are confident that as a result we have further strengthened our position in the marketplace. Given our leading-edge technology solutions including our new ion implant system, batch PECVD and N-type technologies, and our ongoing relationships with industry-leading customers, we look forward to renewed growth in the next investment cycle."
Pentinga added, "During the quarter we took additional actions to further lower our operating costs resulting in a restructuring charge in the quarter. Cost management and preservation of cash are high priorities as we manage through this cycle."
Net revenue for the first quarter of fiscal 2013 was $9.4 million compared to $10.9 million in the preceding quarter and $24.7 million in the first 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 first quarter of fiscal 2013 were $5.0 million ($0.2 million solar), down from total orders of $5.6 million ($2.1 million solar) in the fourth quarter of fiscal 2012.
At December 31, 2012, the Company's total order backlog was $14.7 million, compared to total backlog of $18.7 million at September 30, 2012. Total backlog at December 31, 2012 includes $10.1 million in solar orders and deferred revenue, compared to solar backlog of $13.8 million at September 30, 2012. Foreign exchange caused a $0.4 million increase in backlog in the December 2012 quarter due to the strengthening 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 first quarter of fiscal 2013 was 15%, compared to negative 63% sequentially and 29% in the first quarter of fiscal 2012. The negative gross margin in the fourth quarter of fiscal 2012 reflects $9.2 million of inventory write-downs and losses on inventory purchase commitments. The lower margins compared to the first quarter of fiscal 2012 resulted primarily from lower sales volumes.
Selling, general and administrative (SG&A) expenses in the first quarter of fiscal 2013 were $4.3 million compared to the preceding quarter's $4.4 million. The SG&A expenses decreased $2.0 million from $6.3 million in the first quarter of fiscal 2012 due primarily to lower commissions and shipping costs, related to lower revenues, as well as lower consulting and legal expenses and company-wide cost control initiatives.
Restructuring expense was $0.7 million in the first quarter of fiscal 2013 reflecting severance costs related to reductions-in-force actions at certain operations.
Research and Development (R&D) expense was $1.2 million in the first quarter of fiscal 2013 compared to $3.9 million in the preceding quarter and $2.8 million in the first quarter of fiscal 2012. The reduction in R&D expense is primarily due to a decrease in development-related activities and the recognition of a significant amount of government grant funding during the first quarter of fiscal 2013 compared to previous quarters.
Depreciation and amortization in the first quarter of fiscal 2013 was $699,000, compared to $670,000 in the preceding quarter and $769,000 in the first quarter of fiscal 2012.
Included in the first quarter of fiscal 2013 results is $433,000 of stock option expense, compared to $465,000 in the fiscal first quarter a year ago and $422,000 in the fourth quarter of fiscal 2012.
Income tax in the first quarter of fiscal 2013 was a benefit of $0.5 million, resulting in an effective tax rate of approximately 10%.
The net loss for the first quarter of fiscal 2013 was $4.2 million, or ($0.44) per share, compared to a net loss of $14.1 million, or ($1.49) per share, for the fourth quarter of fiscal 2012. The fourth quarter loss included charges for impairment, inventory write-downs and loss on inventory purchase commitments. The net loss for the first quarter of fiscal 2012 was $0.9 million, or ($0.09) per diluted share.
Total unrestricted cash and cash equivalents at December 31, 2012 were $42.6 million, compared to $46.7 million at September 30, 2012 and $54.9 million at December 31, 2011.
Conference Call
Amtech Systems will host a conference call and webcast today at 5:00pm ET to discuss first quarter fiscal 2013 financial results. Those in the USA wishing to participate in the live call should dial (877) 317-6789. From Canada, dial (866)-605-3852, and internationally, dial (412) 317-6789. 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, 2013. To access the replay please dial US toll free (877) 344-7529 and enter code 10024431. 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. 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.
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 ("the Company" or "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). 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. 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 the Company and its management for future operations.
We cannot guarantee that any forward-looking statement will be realized, although we believe that the expectations reflected in the forward-looking statements are reasonable. Achievement of future results is subject to risks, uncertainties and potentially inaccurate assumptions. The Form 10-K that we filed with the Securities and Exchange Commission for the year-ended September 30, 2012 listed various important factors that could affect Amtech'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. Christensen
Bradley C. Anderson Investor Relations
Chief Financial Officer Patty Bruner
(480) 967-5146 (480) 201-6075
irelations@Amtechsystems.com pbruner@christensenir.com
Condensed Consolidated Statement of Operations
Unaudited
(amounts in thousands, except per share data)
--------------------------------------------
Three Months Ended
December 31,
------------
2012 2011
---- ----
Revenues, net of returns and
allowances $9,357 $24,728
Cost of sales 7,979 17,527
----- ------
Gross profit 1,378 7,201
Selling, general and administrative 4,272 6,292
Restructuring charges 697 -
Research and development 1,161 2,753
Operating loss (4,752) (1,844)
Interest and other income, net 4 87
--- ---
Loss before income taxes (4,748) (1,757)
Income tax benefit (480) (320)
---- ----
Net loss (4,268) (1,437)
------ ------
Add: Net Loss Attributable to
noncontrolling interest 74 561
Net loss attributable to Amtech
Systems, Inc. $(4,194) $(876)
======= =====
Loss Per Share:
Basic loss per share attributable
to Amtech shareholders $(0.44) $(0.09)
Weighted average shares outstanding 9,494 9,446
Diluted loss per share attributable
to Amtech shareholders $(0.44) $(0.09)
Weighted average shares outstanding 9,494 9,446
Condensed Consolidated Balance Sheets
(in thousands, except share data)
--------------------------------
December 31, September 30,
Assets 2012 (Unaudited) 2012
------ --------------- ----
Current Assets
Cash and cash equivalents $42,615 $46,726
Restricted cash 9,687 4,644
Accounts receivable
Trade (less allowance for
doubtful accounts of $508
and $517 at 5,824 7,486
December 31, 2012 and
September 30, 2012,
respectively)
Unbilled and other 8,923 10,807
Inventories 24,730 25,670
Deferred income taxes 3,480 3,460
Prepaid income taxes 1,440 1,400
Other 2,076 2,650
-----
Total current assets 98,775 102,843
Property, Plant and Equipment - Net 12,265 12,387
Deferred Income Taxes - Long Term 450 470
Intangible Assets - Net 3,982 4,096
Goodwill 8,423 8,355
Other Assets - Long Term 1,005 871
Total Assets $124,900 $129,022
Liabilities and Stockholders' Equity
-------------------------------------
Current Liabilities
Accounts payable $2,729 $5,780
Accrued compensation and related
taxes 4,926 5,311
Accrued warranty expense 2,428 2,687
Deferred profit 8,023 10,236
Customer deposits 3,389 3,958
Other accrued liabilities 12,778 7,499
Income taxes payable 6,660 7,140
-----
Total current liabilities 40,933 42,611
Income Taxes Payable Long-term 2,360 2,630
Total liabilities 43,293 44,971
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: 9,539,234 and
9,483,588
at December 31, 2012 and
September 30, 2012,
respectively 95 95
Additional paid-in capital 77,810 77,377
Accumulated other comprehensive
loss (5,414) (6,817)
Retained earnings 7,871 12,065
-----
Total stockholders' equity 80,362 82,720
Noncontrolling interest 1,245 1,331
Total
Equity 81,607 84,051
------ ------
Total Liabilities and
Stockholders' Equity $124,900 $129,022
========
Condensed Consolidated Statements of Cash Flows
Unaudited
(in thousands)
-------------
Three Months Ended
December 31,
2012 2011
---- ----
Operating Activities
Net loss (4,268) (1,437)
Adjustments to
reconcile net
loss to net
cash used in
operating
activities:
Depreciation
and
amortization 699 769
Write-down
of inventory 194 20
Deferred
income taxes 15 -
Non-cash stock
based
compensation
expense 433 465
Provision for
allowance for
doubtful
accounts 33 78
Changes in
operating assets
and liabilities:
Restricted
cash (905) (420)
Accounts
receivable 3,911 10,128
Inventories 1,117 (1,886)
Accrued
income taxes (500) (752)
Prepaid expenses
and other
assets 484 (251)
Accounts
payable (3,127) (2,164)
Accrued
liabilities and
customer
deposits (178) (5,757)
Deferred
profit (2,460) (4,906)
------ ------
Net cash
used in
operating
activities (4,552) (6,113)
------
Investing Activities
Purchases of
property, plant
and equipment (121) (465)
Net cash used in
investing
activities (121) (465)
----
Financing Activities
Repurchase of
common stock - (4,080)
Payments on
long-term
obligations - (11)
Net cash used in
financing
activities - (4,091)
Effect of Exchange Rate Changes on Cash 562 (1,777)
--- ------
Net Decrease in Cash and Cash Equivalents (4,111) (12,446)
Cash and Cash Equivalents, Beginning of Period 46,726 67,382
Cash and Cash Equivalents, End of Period $42,615 $54,936
======= =======
SOURCE Amtech Systems, Inc.