Amtech Systems to Announce Second Quarter Financial Results on May 5, 2016
Amtech Systems, Inc., a global supplier of production equipment and related supplies for the solar, semiconductor, and LED markets, today reported results for its second fiscal quarter ending March 31, 2016.
Second Quarter Fiscal 2016 Financial and Operational Highlights:
- Customer orders of $45.0 million (solar $28.0 million)
- Quarter-end backlog of $67.3 million (solar $51.3 million)
- Net revenues of $22.5 million (solar $9.8 million)
- Book to bill ratio of 2.1:1 (solar 3.0:1)
- Gain on the sale of sales and service rights of $2.6 million (pre-tax)
- Net loss of $1.5 million, or $0.11 per share
- Unrestricted cash of $31.8 million
Mr. Fokko Pentinga, Chief Executive Officer of Amtech, commented, “We are pleased with our $45 million of total bookings in the second quarter, including $28 million of solar orders, which is the highest solar bookings since the March quarter of 2011. With those bookings, we now have a backlog of $67 million which is a 57 percent increase since December 31, 2015 and the highest in four years. We are positioning for the next wave of growth in solar with expectations to continue to expand our market reach, develop current and new customer relationships, and continue to be recognized as a market leader for our distinguishable technology solutions.
Pentinga continued, “New orders and backlog for our electronics and LED businesses reflect sequential and year-over-year improvements. We look forward to continued improvement in semiconductor capex spending in the second half of calendar 2016 and the opportunity to more fully optimize our operating efficiency in a more robust marketplace.”
Customer orders in the second quarter of fiscal 2016 were $45.0 million ($28.0 million solar), compared to $35.6 million ($23.0 million solar) in the preceding quarter and $30.9 million ($16.7 million solar) in the second quarter of fiscal 2015.
At March 31, 2016, the Company’s total order backlog was $67.3 million (solar $51.3 million), compared to total backlog of $42.9 million (solar $31.3 million) at December 31, 2015. Backlog includes deferred revenue and customer orders that are expected to ship within the next 12 months.
Net revenue for the second quarter of fiscal 2016 was $22.5 million compared to $22.1 million in the preceding quarter and $24.3 million in the second quarter of fiscal 2015. The decrease from the prior year quarter is due primarily to lower shipments caused by the cyclicality of the semiconductor industry and the polishing segment.
Gross margin in the second quarter of fiscal 2016 was 27%, compared to 27% in the preceding quarter and 28% in the second quarter of fiscal 2015. The slightly lower margin in Q2 2016 compared to a year ago resulted primarily from lower usage of previously reserved inventory in the solar segment and lower sales volumes in the polishing segment.
Selling, general and administrative (SG&A) expenses in the second quarter of fiscal 2016 were $7.4 million compared to $7.6 million in the preceding quarter and $8.1 million in the second quarter of fiscal 2015. The decrease compared to a year ago results primarily from lower legal and consulting expenses related to activity that led to the Company’s acquisition of BTU in January 2015, as well as lower commission expenses, partially offset by the inclusion of BTU for a full quarter in Q2 2016 compared to a partial quarter in Q2 2015.
Research, development and engineering (RD&E) expense was $2.2 million in the second quarter of fiscal 2016 compared to $2.3 million in the preceding quarter and $0.8 million in the second quarter of fiscal 2015. The higher RD&E expense compared to a year ago is primarily due to lower grants earned resulting from the deconsolidation of Kingstone in fiscal 2015, and increases in spending resulting from inclusion of BTU and SoLayTec RD&E since acquisition, partially offset by lower spending due to the deconsolidation of Kingstone.
Depreciation and amortization in the second quarter of fiscal 2016 was $0.7 million, compared to $0.8 million in the preceding quarter and $0.9 million in the second quarter of fiscal 2015.
Income tax expense was $1.7 million for the three months ended March 31, 2016 compared to $0.3 million in the preceding quarter and $0.2 million in the second quarter of fiscal 2015. Income tax expense in Q2 2016 is primarily related to tax on the $2.6 million pre-tax gain on the sale of the exclusive sales and service rights for the Kingstone ion implanter.
The net loss for the second quarter of fiscal 2016 was $1.5 million, or $0.11 per share, compared to a net loss of $4.0 million or $0.31 per share in the preceding quarter and a net loss of $2.3 million, or $0.19 per share for the second quarter of fiscal 2015.
Unrestricted cash and cash equivalents at March 31, 2016 were $31.8 million, compared to $22.6 million at December 31, 2015. The increase in cash and cash equivalents is primarily due to cash received from the sale of our exclusive sales and service rights for the Kingstone ion implanter, as well as customer deposits, partially offset by operating losses.
