Key Takeaways Lumentum benefits from structural AI data center demand and an expanding optical portfolio.ASYS is gaining AI packaging traction but remains pressured by weak non-AI demand.LITE's EPS estimates are trending higher, while ASYS' estimates are moving lower.Lumentum (LITE) and Amtech Systems (ASYS) operate within the semiconductor value chain, supplying critical technologies that enable advanced electronics manufacturing. Lumentum delivers optical and photonic components embedded in AI-driven data ...

Key Takeaways Amtech Systems' stock jumped 94% in six months, but revenues fell to about $19M in Q1 FY26.ASYS faces cyclical demand swings and pricing pressure from rivals like AMAT, KLAC and LRCX.ASYS' earnings estimates for FY26 were cut 42% in 30 days, with a negative 37.2% surprise average.Amtech Systems’ (ASYS) shares have surged 94.2% over the past six months, outpacing the broader Zacks Computer and Technology sector and Semiconductor – General industry’s return of 7.8% and 1.9%, respectively.The sto ...

Core Insights - Amtech Systems' profit growth outlook is uncertain due to ongoing weakness in its Semiconductor Fabrication Solutions (SFS) segment, which saw a 12.4% year-over-year revenue decline and an operating loss in Q1 FY26 [1][9] - The weakness in SFS is viewed as structural rather than temporary, leading to a recurring negative impact on consolidated margins [2] - Management has indicated that FY26 will be an investment year for the SFS business, with expectations for meaningful profitability beyond this period [3] Segment Performance - The SFS segment's underperformance is attributed to soft demand for PR Hoffman products linked to mature-node semiconductor markets and cost pressures from silicon carbide customers [1] - While AI-driven equipment demand is bolstering the Thermal Processing Solutions segment, the overall growth profile of the company is becoming uneven, with AI demand cushioning declines in legacy semiconductor exposure [2] Market Competition - Amtech faces intensified competition from Applied Materials (AMAT), which is expanding its capabilities across multiple critical chip-manufacturing steps, generating approximately $7.0 billion in revenues in Q1 FY26 [5] - KLA Corporation (KLAC) is also pressuring Amtech from the process-control side, with KLAC reporting around $3.30 billion in revenues in Q2 FY26, prioritizing yield monitoring tools that limit Amtech's expansion opportunities [6] Financial Performance - Amtech's shares have increased by 94.2% over the past six months, significantly outperforming the Zacks Semiconductor - General industry's growth of 1.8% [7] - The Zacks Consensus Estimate for Amtech's fiscal 2026 earnings is set at 25 cents per share, reflecting a 42% reduction over the past 30 days but still implying a year-over-year growth of 400% [14] Valuation Metrics - Amtech trades at a forward price-to-sales ratio of 1.92X, which is considerably lower than the industry's average of 12.02X, indicating a potential undervaluation [11] - The company currently holds a Zacks Rank 5 (Strong Sell), suggesting bearish sentiment among analysts [15]

Core Viewpoint - Alps Electric (APELY) is currently outperforming its peers in the Computer and Technology sector, with a year-to-date gain of 6.4% compared to the sector's average return of -2.8% [4]. Company Performance - Alps Electric is ranked 1 (Strong Buy) in the Zacks Rank system, indicating a strong earnings outlook [3]. - The Zacks Consensus Estimate for APELY's full-year earnings has increased by 94.6% over the past quarter, reflecting improved analyst sentiment [4]. - The stock has gained approximately 6.4% year-to-date, outperforming the average return of the Computer and Technology sector, which is at -2.8% [4]. Industry Context - Alps Electric belongs to the Electronics - Miscellaneous Components industry, which is currently ranked 23 in the Zacks Industry Rank [6]. - The average return for stocks in the Electronics - Miscellaneous Components industry is 2.1% year-to-date, indicating that APELY is performing better than its industry peers [6]. - In contrast, another stock in the Computer and Technology sector, Amtech Systems (ASYS), has returned 26.5% year-to-date and belongs to the Semiconductor - General industry, which is ranked 58 [5][6].

Core Insights - Amtech Systems (ASYS) shares fell 27% after reporting weaker-than-expected results for Q1 fiscal 2026, with earnings per share (EPS) of 3 cents compared to 6 cents in the same quarter last year, missing the Zacks Consensus Estimate of 7 cents per share [1][9] Financial Performance - ASYS reported net revenues of $18.97 million, a decline of 22.2% year-over-year, and missed the Zacks Consensus Estimate by 0.14% [2][9] - Thermal Processing Solutions sales were $13.98 million, accounting for 73.7% of total revenue, down 25.2% from the previous year [3] - Semiconductor Fabrication Solutions revenues were $4.99 million, representing 26.3% of total revenue, down 12.4% year-over-year [3] - Non-GAAP gross margin was 45%, an increase of 700 basis points from the year-ago quarter [3] - Adjusted EBITDA was $1.44 million, down from $1.92 million in the same quarter last year [4] Guidance and Future Outlook - For Q2 fiscal 2026, ASYS expects revenues between $19 million and $21 million, with the Zacks Consensus Estimate at $19.5 million, indicating a year-over-year increase of 25.2% [6][9] - Adjusted EBITDA margins are anticipated to remain in the high single digits [6] Earnings Estimates - The Zacks Consensus Estimate for Q2 fiscal 2026 earnings is set at 9 cents per share, compared to a loss of 16 cents per share in the same quarter last year [7]

分组1 - Amtech Systems reported quarterly earnings of $0.03 per share, missing the Zacks Consensus Estimate of $0.07 per share, and down from $0.06 per share a year ago, indicating a negative earnings surprise of -57.14% [1][2] - The company posted revenues of $18.97 million for the quarter, which was 0.14% below the Zacks Consensus Estimate and a decrease from $24.39 million year-over-year [3] - Amtech has outperformed the market with a 25.5% increase in share price since the beginning of the year, compared to a 0.5% gain in the S&P 500 [4] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $19.5 million, and for the current fiscal year, it is $0.43 on revenues of $80 million [8] - The Semiconductor - General industry, to which Amtech belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [9]

Financial Data and Key Metrics Changes - Revenue for the first quarter of fiscal 2026 was $19 million, with Adjusted EBITDA at $1.4 million, both within guidance [5][11] - Gross margin as a percentage of sales increased to 44.8% from 38.4% year-over-year and 44.4% sequentially [14] - GAAP net income for the first quarter was $0.1 million or $0.01 per share, compared to $1.1 million or $0.07 per share in the previous quarter [15] Business Line Data and Key Metrics Changes - AI-related products accounted for 35% of revenue in the Thermal Processing Solutions (TPS) segment, up from 30% in the previous quarter [6][12] - Book-to-bill ratio was 1.1, driven by strong performance in the TPS segment due to AI equipment orders [6] - Specialty chemicals segment showed strong customer engagement and improved bookings, while PR Hoffman products faced weak demand [8] Market Data and Key Metrics Changes - Demand for AI infrastructure is driving growth, with semiconductor OEMs and OSATs increasing investments [6] - Weak demand in the mature node semiconductor market is impacting overall results, particularly for PR Hoffman products [8] Company Strategy and Development Direction - The company is focusing on next-generation equipment for high-density packaging and panel-level packaging, which is expected to drive future growth [7] - A semi-fabless manufacturing model is being adopted to increase revenue with minimal capital expenditures [9] - The company aims to overserve underserved customers with high-value applications in specialty chemicals [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued demand for AI-related equipment and strong bookings, with expectations for growth in the third and fourth quarters [6][32] - The company anticipates revenue for the second quarter to be in the range of $19 million to $21 million, driven primarily by AI-related equipment sales [16] Other Important Information - Cash generated from operations was $4.1 million for the first quarter, with a cash balance of $22.1 million and no debt [9][15] - The company did not repurchase any shares under its stock repurchase program since its initiation [15] Q&A Session Summary Question: Can you elaborate on the panel-level business? - Management explained that panel-level packaging is a cost-effective method for producing packaging in large formats, which is seen as the future of advanced packaging [21][22] Question: Are there any new products related to higher density packaging? - Management indicated that new products are being developed for higher density packaging, with meaningful demand expected around 2027 [23] Question: What are the most encouraging factors moving through fiscal 2026? - Management highlighted strong bookings, short lead times for AI packaging equipment, and a robust pipeline for specialty chemicals as encouraging factors [30][32] Question: Can you discuss the increase in SG&A and R&D expenses? - Management noted that R&D increases are primarily due to investments in next-generation packaging equipment for AI applications and specialty chemicals [36][38] Question: What is the outlook for AI revenue growth? - Management expressed improved visibility on AI revenue, with expectations for continued momentum and new facilities being built to support demand [40][42] Question: Can you explain the high tax rate this quarter? - Management clarified that the high tax rate is due to U.S. entities being in a loss position, resulting in no tax benefit recognized [43][46]

Financial Data and Key Metrics Changes - Revenue for the first quarter of fiscal 2026 was $19 million, with Adjusted EBITDA at $1.4 million, both within guidance [5][6] - Gross margin as a percentage of sales increased to 44.8% from 38.4% year-over-year and 44.4% sequentially [14] - GAAP net income for the first quarter was $0.1 million or $0.01 per share, compared to $1.1 million or $0.07 per share in the previous quarter [15] Business Line Data and Key Metrics Changes - AI-related products accounted for 35% of revenue in the thermal processing solutions segment, up from 30% in the previous quarter [6][12] - Book-to-bill ratio was 1.1, driven by strong performance in AI equipment orders [6] - Weak demand for PR Hoffman products negatively impacted overall SFS results, offsetting gains in other areas [8] Market Data and Key Metrics Changes - Demand for AI infrastructure is expected to continue increasing, with semiconductor OEMs and OSATs expanding capacity [6] - The company received initial orders for panel-level packaging equipment, indicating emerging technology demand [7] Company Strategy and Development Direction - The company is focusing on next-generation equipment for high-density packaging to support emerging customer requirements [7] - A semi-fabless manufacturing model has been adopted, consolidating manufacturing from seven facilities to four, which is expected to increase revenue with minimal capital expenditures [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong demand for AI-related products and a robust opportunity pipeline for specialty chemicals [10][32] - The outlook for the second fiscal quarter is revenue guidance of $19 million to $21 million, primarily driven by AI-related equipment sales [16] Other Important Information - Cash generated from operations was $4.1 million for the first quarter, with a cash balance of $22.1 million and no debt [9][15] - The company did not repurchase any shares under its stock repurchase program since its initiation [15] Q&A Session Summary Question: Can you elaborate on the panel-level business? - Management explained that panel-level packaging is a cost-effective method for producing packaging in large formats, which is seen as the future of advanced packaging [21][22] Question: Are there any other qualifications underway in the services and chemical businesses? - Management confirmed active engagements and a promising pipeline for specialty chemicals, indicating strong customer engagement [24] Question: What are you most encouraged about as you move through fiscal 2026? - Management highlighted strong bookings, short lead times for AI packaging equipment, and a solid pipeline for specialty chemicals as encouraging factors [30][32] Question: Can you discuss the increase in SG&A and R&D expenses? - Management noted that R&D increases are focused on next-generation packaging equipment for AI applications and building momentum in the semi-fab solutions area [36] Question: What is the reason for the high tax rate this quarter? - Management clarified that the high tax rate is due to U.S. entities being in a loss position, with tax expenses primarily from foreign entities [40][41]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $19 million, aligning with guidance, while Adjusted EBITDA was $1.4 million, also within guidance range [5][12] - Gross margin increased to 44.8% in Q1 2026 from 38.4% in the same period last year and 44.4% in Q4 2025 [14] - GAAP net income for Q1 2026 was $0.1 million or $0.01 per share, compared to $1.1 million or $0.07 per share in the preceding quarter [16] Business Line Data and Key Metrics Changes - AI-related products accounted for 35% of revenue in the thermal processing solutions segment, up from 30% in Q4 2025 [6][13] - Book-to-bill ratio was 1.1, driven by strong performance in AI equipment orders [6] - Weak demand for PR Hoffman products negatively impacted overall SFS results, offsetting gains in other segments [9] Market Data and Key Metrics Changes - Demand for AI infrastructure is driving investments from semiconductor OEMs and OSATs, with expectations for continued growth in Q3 and Q4 2026 [6][11] - The semiconductor market, particularly for mature node semiconductors, is experiencing weakness, impacting overall sales [13] Company Strategy and Development Direction - The company is focusing on next-generation equipment for high-density packaging and panel-level packaging, which is expected to drive future growth [8][9] - A semi-fabless manufacturing model has been adopted, consolidating manufacturing from seven facilities to four, allowing for increased revenue with minimal capital expenditures [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for AI-related equipment and the strength of the customer pipeline, indicating improved visibility for growth [32] - The company expects revenue for Q2 2026 to be in the range of $19 million to $21 million, driven primarily by AI-related equipment sales [17] Other Important Information - Cash generated from operations was $4.1 million for Q1 2026, with a cash balance of $22.1 million and no debt [10][16] - The company did not repurchase any shares under its stock repurchase program since its initiation [16] Q&A Session Summary Question: Can you elaborate on the panel-level business? - Management explained that panel-level packaging is a cost-effective method for producing packaging in large formats, which is seen as the future of advanced packaging [22] Question: Are there any new products related to this panel-level business? - Management indicated that new products are focused on higher density packaging requirements, with meaningful demand expected around 2027 [24] Question: What are the key areas of commitment for increased spending in R&D? - Increased investments are being made in next-generation packaging equipment for AI applications and in the semi-fab solutions area to build momentum [36] Question: What is the outlook for AI revenue growth? - Management expressed confidence in continued growth in AI revenue, supported by customer plans for expansion and new facility buildouts [38] Question: Can you explain the high tax rate this quarter? - The high tax rate is due to U.S. entities being in a loss position, with no tax benefits recognized, leading to a larger tax expense from foreign entities [40][41]

Revenue and Orders - Total net revenue for the three months ended December 31, 2025, was $19.0 million, a decrease of approximately $5.4 million or 22% compared to $24.4 million in 2024[94] - New orders for Thermal Processing Solutions increased by 23% to $16.2 million in the three months ended December 31, 2025, while Semiconductor Fabrication Solutions orders decreased by 9% to $4.5 million[96] - The company experienced a decline in shipments of polishing equipment, contributing to the decrease in revenue from Semiconductor Fabrication Solutions[94] Financial Performance - Gross margin for the three months ended December 31, 2025, was 45%, up from 38% in 2024, with gross profit decreasing by $0.9 million to $8.5 million[97] - Selling, general and administrative expenses decreased to $6.9 million in the three months ended December 31, 2025, from $8.1 million in 2024, due to lower personnel and variable costs[101] - The effective tax rate for the three months ended December 31, 2025, was 84.3%, compared to 58.8% in 2024, primarily due to foreign income taxed at different rates[110] Cash Flow and Liquidity - Cash provided by operating activities increased to $4.1 million for the three months ended December 31, 2025, up from $2.9 million in the same period of 2024, reflecting improved collections from customers[117] - Cash and cash equivalents at the end of the period were $22.1 million as of December 31, 2025, compared to $13.2 million at the end of December 31, 2024, marking a year-over-year increase of 67.5%[114] - The net increase in cash and cash equivalents for the three months ended December 31, 2025, was $4.2 million, primarily due to increased collections from customers[114] - Working capital rose to $40.8 million as of December 31, 2025, an increase of $1.1 million from $39.7 million as of September 30, 2025, driven by decreases in accounts receivable[114] - Cash used in investing activities was $0.3 million for the three months ended December 31, 2025, compared to $0.1 million in the same period of 2024, indicating increased capital expenditures[118] - Cash provided by financing activities remained stable at $0.1 million for both the three months ended December 31, 2025, and 2024, primarily due to the exercise of stock options[119] - The current ratio remained stable at 2.9:1 for both December 31, 2025, and September 30, 2025, indicating consistent liquidity management[114] - The effect of exchange rate changes on cash and cash equivalents was a positive $0.2 million for the three months ended December 31, 2025, compared to a negative impact of $0.7 million in the same period of 2024[114] Research and Development - Research, development, and engineering expenses for the three months ended December 31, 2025, were $0.8 million, a decrease from $0.9 million in 2024[103] - The company continues to invest in research and development to expand its Thermal Processing Solutions product line for AI applications, aiming to enable mass production of higher density packages[89] Strategic Initiatives - The company is pursuing both organic growth and acquisitions to enhance its market position, particularly in regions like Southeast Asia and Mexico[91] - Unrecorded purchase obligations increased to $5.4 million as of December 31, 2025, up from $4.0 million as of September 30, 2025, reflecting a rise of 35%[121] - There were no off-balance sheet arrangements as of December 31, 2025, that could materially affect the company's financial condition[120]