Financial Guidance - Amtech Systems, Inc. updated its financial guidance for Q2 fiscal 2025 on April 9, 2025[6] Company Information - The company is listed on the Nasdaq Global Select Market under the symbol ASYS[5] - The press release regarding the financial update is included as Exhibit 99.1[9]

Amtech Systems (ASYS) shares have slid 16.9% over the past six months, underperforming the broader Zacks Computer and Technology sector’s 1.3% decline and the Zacks Semiconductor - General industry’s 1% drop.ASYS has also lagged industry peers such as Intel (INTC) , NVIDIA (NVDA) and Texas Instruments (TXN) . While Intel shares gained 1.2%, NVIDIA and Texas Instruments shares have fallen 0.6% and 12.1%, respectively.This underperformance raises the question on whether investors should cut their losses and e ...

Group 1: Amtech Systems (ASYS) - Amtech Systems shares increased by 5.5% to close at $5.17, following notable trading volume, despite a 13.9% loss over the past four weeks [1] - The company is benefiting from restructuring initiatives, cost optimization, and increasing demand for advanced packaging and AI infrastructure applications [1] - The consensus EPS estimate for the upcoming quarter remains unchanged, with expectations of a quarterly loss of $0.02 per share, reflecting a year-over-year change of -100% and projected revenues of $21.5 million, down 15.5% from the previous year [2][4] Group 2: STMicroelectronics (STM) - STMicroelectronics closed the last trading session at $24.01, down 1.6%, and has experienced a -13.5% return over the past month [4] - The consensus EPS estimate for STM has remained unchanged at $0.05, representing a -90.7% change from the previous year [5] - STMicroelectronics currently holds a Zacks Rank of 5 (Strong Sell) [5]

Industry Overview - The semiconductor industry is experiencing an uptrend driven by the AI revolution, with applications across various sectors including finance, automotive, healthcare, and cybersecurity [1] - The global semiconductor market is showing strong growth, with a 17.9% year-over-year increase in sales in January 2025, reaching $56.5 billion [4] - The global semiconductor market size is projected to reach $707 billion in 2025, reflecting a year-over-year increase of 12.5% [5] Company Insights - Marvell Technology provides a wide range of solutions for data centers, including PAM chips and digital signal processors, which are essential for AI applications [8] - Amtech Systems manufactures specialized equipment for semiconductor manufacturing, with a growing demand for advanced semiconductors driving the need for its products [10][11] - NVIDIA is a leader in the AI space with its GPUs based on Hopper and Blackwell architectures, which are increasingly adopted across various industries [13][14] - Taiwan Semiconductor is crucial for the AI revolution, supplying advanced chips and supporting cutting-edge fabrication technologies [16][17] Stock Performance - Marvell Technology has a Zacks Rank 1 and a Growth Score of A, with an expected EPS growth rate of 42.9% [10] - Amtech Systems also holds a Zacks Rank 1 and a Growth Score of A, with an EPS estimate of 17 cents for fiscal 2025 [12] - NVIDIA has a Zacks Rank 2 and a Growth Score of A, with an expected EPS growth rate of 25.7% [15] - Taiwan Semiconductor carries a Zacks Rank 2 and a Growth Score of B, with an expected EPS growth rate of 33.1% [18]

Core Viewpoint - Amtech Systems (ASYS) has reached a significant support level and shows potential for investors from a technical perspective, with a recent breakthrough of the 20-day moving average indicating a short-term bullish trend [1]. Technical Analysis - The 20-day simple moving average (SMA) is a popular trading tool that reflects a stock's price over a 20-day period, smoothing out short-term price trends and providing trend reversal signals [2]. - A stock price above the 20-day SMA indicates a positive trend, while a price below suggests a downward trend [2]. Performance Metrics - Over the past four weeks, ASYS has gained 11.2%, and it currently holds a Zacks Rank 1 (Strong Buy), suggesting further upward movement potential [3]. - Positive earnings estimate revisions support the bullish case for ASYS, with no estimates decreasing in the past two months and one estimate increasing, alongside a rise in the consensus estimate [3]. Investment Outlook - Given the key technical level and positive earnings estimate revisions, ASYS is positioned for potential gains in the near future [4].

After reaching an important support level, Amtech Systems (ASYS) could be a good stock pick from a technical perspective. ASYS surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend.The 50-day simple moving average is one of three major moving averages used by traders and analysts to determine support or resistance levels for a wide range of securities. But the 50-day is considered to be more important because it's the first marker of an up or down trend.Shares of ASYS have ...

Financial Data and Key Metrics Changes - For fiscal Q1 2025, revenue was $24.4 million, with adjusted EBITDA of $1.9 million, showing a year-over-year adjusted EBITDA increase of $1.8 million despite muted revenue growth [7][19] - GAAP net income for Q1 2025 was $0.3 million, or $0.02 per share, compared to a GAAP net loss of $9.4 million, or $0.60 per share for Q1 2024 [23] - Unrestricted cash and cash equivalents increased to $13.2 million from $11.1 million due to improved accounts receivable collection and inventory management [24] Business Line Data and Key Metrics Changes - The Semiconductor Fabrication Solutions business aims to drive sustainable growth by expanding recurring revenue streams such as consumables, parts, and services [14] - The Thermal Process Solutions business focuses on reflow equipment for advanced chip packaging and surface-mount assembly applications [14] Market Data and Key Metrics Changes - Demand for equipment and consumables in mature node semiconductor production remains muted, particularly in industrial equipment and automotive sectors [11] - Strengthening demand for reflow equipment in leading-edge applications, such as AI infrastructure, has been noted [12] Company Strategy and Development Direction - The company is focused on operational excellence and cost optimization, with restructuring initiatives yielding over $8 million in annualized cost savings [9] - A semi-fabless model has been adopted to enhance operating leverage and reduce fixed costs [9] - The company is investing in growth initiatives for 2025 while refining business segments for greater clarity and focus [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a soft near-term macro environment but expresses confidence in long-term growth drivers, particularly in AI-related infrastructure and supply chain diversification [16][17] - The company anticipates double-digit growth in the electric vehicle segment, which will continue to drive demand for silicon carbide-related consumables [17] Other Important Information - The company is actively pursuing opportunities to introduce more products to new customers and broaden its footprint with existing customers [15] - The outlook for Q2 2025 is expected to be in the range of $21 million to $23 million, with adjusted EBITDA projected to be nominally positive [24] Q&A Session Summary Question: Are there still additional costs that can be taken out of the business? - Management indicated ongoing efforts in supply chain management and footprint utilization to identify further cost-saving opportunities [29][31] Question: What is the current outlook for the automotive market? - Management noted continued softness in the automotive segment, particularly in equipment sales, with no sharp recovery expected in the near term [34][36] Question: What is the activity level in the advanced packaging space? - Management reported strengthening activity in advanced packaging, particularly for AI data centers, and anticipates increased volume as AI hardware proliferates [38][40]

Core Viewpoint - Amtech Systems (ASYS) reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of a loss of $0.05 per share, and showing improvement from a loss of $0.04 per share a year ago [1][2]. Financial Performance - The earnings surprise for the quarter was 220%, with the company previously expected to post a loss of $0.04 per share but instead achieving break-even earnings, resulting in a 100% surprise [2]. - Amtech's revenues for the quarter ended December 2024 were $24.39 million, surpassing the Zacks Consensus Estimate by 3.77%, although this represents a decline from year-ago revenues of $24.92 million [3]. - The company has consistently exceeded consensus EPS and revenue estimates over the last four quarters [2][3]. Stock Performance and Outlook - Amtech shares have declined approximately 3.7% since the beginning of the year, contrasting with the S&P 500's gain of 2.7% [4]. - The company's earnings outlook is mixed, with current consensus EPS estimates of $0.02 on $26 million in revenues for the upcoming quarter and $0.15 on $110 million in revenues for the current fiscal year [8]. - The Zacks Rank for Amtech is currently 3 (Hold), indicating expected performance in line with the market in the near future [7]. Industry Context - The Semiconductor - General industry, to which Amtech belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, suggesting potential challenges ahead [9]. - The performance of Amtech's stock may be influenced by the overall outlook for the semiconductor industry [9].

Financial Performance - Net revenue for Q1 FY 2025 was $24.4 million, a 1% increase sequentially from Q4 FY 2024 and a 2% decrease from Q1 FY 2024[6]. - Adjusted EBITDA for Q1 FY 2025 was $1.9 million, reflecting a $1.8 million year-over-year increase[5]. - GAAP net income for Q1 FY 2025 was $0.3 million, or $0.02 per share, compared to a net loss of $0.5 million in Q4 FY 2024 and a loss of $9.4 million in Q1 FY 2024[12]. - Revenue for the three months ended December 31, 2024, was $24.385 million, a slight decrease from $24.920 million in the same period of 2023, representing a decline of approximately 2.1%[26]. - The company reported a net loss of $0.312 million for the three months ended December 31, 2024, compared to a net loss of $0.358 million in the same period of 2023[26]. - For the three months ended December 31, 2024, Amtech Systems reported a net income of $312,000, a significant improvement compared to a net loss of $9,358,000 in the same period of 2023[28]. - Non-GAAP net income for the three months ended December 31, 2024, was $826,000, compared to a loss of $634,000 in the same period of 2023[30]. Cash and Liquidity - Unrestricted cash and cash equivalents increased to $13.2 million as of December 31, 2024, up from $11.1 million at September 30, 2024[14]. - Cash and cash equivalents at the end of the period were $13,214,000, down from $17,033,000 at the end of December 2023[28]. - The company experienced a net cash provided by operating activities of $2,867,000, a decrease from $4,971,000 in the prior year[28]. - Cash and cash equivalents increased to $13.214 million from $11.086 million, reflecting a growth of approximately 19.2%[27]. Expenses and Cost Management - SG&A expenses decreased by $0.7 million sequentially and $0.5 million year-over-year, primarily due to fixed cost reductions[10]. - Research, Development and Engineering expenses decreased by $0.1 million sequentially and $0.7 million year-over-year, attributed to timing of project-related purchases[11]. - The company continues to focus on operational excellence and cost optimization initiatives to enhance profitability through market cycles[5]. Assets and Liabilities - Total current assets as of December 31, 2024, were $64.267 million, slightly down from $64.376 million at September 30, 2024[27]. - Total liabilities decreased to $35.334 million from $36.595 million, showing a reduction of about 3.5%[27]. - Shareholders' equity increased to $82.442 million from $82.358 million, indicating a growth of approximately 0.1%[27]. - Accounts receivable decreased to $20.822 million from $21.989 million, a decline of about 5.3%[27]. - Inventories decreased to $25.611 million from $26.867 million, reflecting a decrease of approximately 4.7%[27]. - The company maintained goodwill at $21.261 million, unchanged from the previous quarter[27]. Segment Performance - The Semiconductor Fabrication Solutions Segment reported a GAAP gross profit of $2,034,000, with a gross margin of 36%[29]. - The Thermal Processing Solutions Segment achieved a GAAP gross profit of $7,329,000, with a gross margin of 39%[29]. - GAAP gross margin for Q1 FY 2025 was 38.4%, compared to 40.7% in Q4 FY 2024 and 33.0% in Q1 FY 2024[7]. - The GAAP gross profit for the same period was $9,363,000, resulting in a gross margin of 38%, compared to a gross margin of 33% in December 2023[29]. Future Outlook - The company expects revenues for Q2 FY 2025 to be in the range of $21 million to $23 million, with adjusted EBITDA expected to be nominally positive[18].

Financial Performance - Total net revenue for the three months ended December 31, 2024, was $24.4 million, a decrease of approximately $0.5 million or 2% compared to $24.9 million in the same period of 2023[92] - Gross profit for the three months ended December 31, 2024, was $9.4 million, representing a gross margin of 38%, an increase from $8.2 million and 33% in the same period of 2023[95] - The company recognized no impairment of goodwill during the quarter ended December 31, 2024, compared to a goodwill impairment of $6.4 million in the same quarter of 2023[99] Orders and Backlog - New orders for the Thermal Processing Solutions segment decreased by 23% to $13.2 million for the three months ended December 31, 2024, down from $17.1 million in 2023[94] - Total backlog as of December 31, 2024, was $19.0 million, a decrease of 62% from $50.0 million in the same period of 2023[94] Expenses - Research, development, and engineering expenses for the three months ended December 31, 2024, were $0.9 million, down from $1.6 million in the same period of 2023[98] - Selling, general and administrative expenses decreased to $8.1 million for the three months ended December 31, 2024, compared to $8.6 million in the same period of 2023[96] Tax and Cash Flow - The effective tax rate for the three months ended December 31, 2024, was 58.8%, compared to (0.6%) in the same period of 2023[103] - Net cash provided by operating activities decreased to $2.9 million for the three months ended December 31, 2024, down from $5.0 million in the same period of 2023, reflecting a decline of approximately 42.0%[107] Cash Management - Cash used in investing activities was $0.1 million for the three months ended December 31, 2024, compared to $0.8 million in the same period of 2023, indicating a reduction of 87.5%[109] - Cash provided by financing activities was $0.1 million for the three months ended December 31, 2024, while cash used was $0.5 million in the same period of 2023, showing a shift from outflow to inflow[110] - Cash and cash equivalents increased by $2.1 million from September 30, 2024, totaling $13.2 million as of December 31, 2024, compared to $11.1 million at the beginning of the period[105] Working Capital and Liquidity - Working capital rose to $45.3 million as of December 31, 2024, up from $44.8 million on September 30, 2024, reflecting an increase of approximately 1.2%[105] - The current ratio improved to 3.4:1 as of December 31, 2024, compared to 3.3:1 on September 30, 2024, indicating a stronger liquidity position[105] Purchase Obligations and Strategic Plans - Unrecorded purchase obligations decreased to $7.9 million as of December 31, 2024, down from $12.1 million as of September 30, 2024, a decline of approximately 34.6%[112] - The company plans to reinvest cash from operating activities into strategic projects during periods of weakening demand[106] Corporate Actions - The company completed the sale of its corporate headquarters real property in Arizona, resulting in a net cash inflow of approximately $2.5 million[89] - The company continues to pursue acquisitions to supplement organic growth, with a focus on expanding operations outside of mainland China to enhance supply chain resiliency[88] Off-Balance Sheet Arrangements - There were no off-balance sheet arrangements as of December 31, 2024, that could materially affect the company's financial condition[111]