Core Viewpoint - Investors in Amtech Systems, Inc. should closely monitor the stock due to significant movements in the options market, particularly the Mar 20, 2026 $22.50 Call which has high implied volatility [1] Company Analysis - Amtech Systems is currently rated as a Zacks Rank 5 (Strong Sell) within the Semiconductor - General Industry, which ranks in the top 37% of the Zacks Industry Rank [3] - Over the past 60 days, no analysts have increased their earnings estimates for the current quarter, while one analyst has revised their estimate downwards, resulting in a decrease in the Zacks Consensus Estimate from nine cents per share to five cents per share [3] Options Market Insights - The high implied volatility surrounding Amtech Systems suggests that options traders are anticipating a significant price movement, which could indicate an upcoming event that may lead to a substantial rally or sell-off [2] - Options traders often seek out options with high implied volatility to sell premium, a strategy that aims to benefit from the decay of options value, hoping that the underlying stock does not move as much as expected by expiration [4]

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 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]

Financial Performance - Net revenue for Q1 FY 2026 was $19.0 million, a decrease from $19.8 million in Q4 FY 2025 and $24.4 million in Q1 FY 2025[6] - The company reported a GAAP net income of $0.1 million, or $0.01 per diluted share, down from $1.1 million, or $0.07 per share in the previous quarter[11] - Revenues for the three months ended December 31, 2025, were $18,973,000, a decrease of 22.4% compared to $24,385,000 in the same period of 2024[27] - Net income for the three months ended December 31, 2025, was $108,000, down from $312,000 in the same period of 2024, with net income per diluted share remaining at $0.01[27][31] Cash Flow and Liquidity - Operating cash flow increased by 43% compared to Q1 FY 2025, reaching $4.1 million[4] - Cash and cash equivalents increased to $22.1 million from $17.9 million in the prior quarter, with no debt reported[12] - Cash and cash equivalents increased to $22,078,000 as of December 31, 2025, compared to $17,904,000 at the end of the previous quarter[29] Margins and Profitability - The gross margin improved to 44.8% in Q1 FY 2026, up from 38.4% in the same period last year[8] - Gross profit for the same period was $8,493,000, resulting in a gross margin of 45%, compared to a gross profit of $9,363,000 and a gross margin of 38% in the prior year[30] - Adjusted EBITDA for the three months ended December 31, 2025, was $1,444,000, reflecting a strong operational performance despite lower net income[32] Customer Demand and Orders - Customer orders totaled $20.7 million, with a backlog of $21.6 million, indicating strong demand for AI-related products[5] - The book-to-bill ratio was 1.1, driven by AI applications, with some deliveries expected to extend into Q3 FY 2026[4] - For Q2 FY 2026, the company expects revenues to range from $19.0 million to $21.0 million, with an adjusted EBITDA margin in the high single digits[15] Expenses and Cost Management - SG&A expenses rose by $0.5 million sequentially but decreased by $1.2 million compared to Q1 FY 2025 due to cost reduction efforts[9] - Research and development expenses increased by $0.3 million sequentially, reflecting growth initiatives[10] Balance Sheet and Liabilities - Total assets rose to $94,145,000 as of December 31, 2025, up from $92,873,000 at the end of September 2025[28] - Total liabilities increased to $40,049,000 as of December 31, 2025, compared to $39,488,000 at the end of the previous quarter[28] - Contract liabilities increased to $7,132,000 as of December 31, 2025, compared to $6,461,000 at the end of September 2025[28] Inventory and Foreign Currency - The company reported a write-down of inventory amounting to $318,000 for the quarter, compared to $632,000 in the same period of 2024[29] - The company experienced a foreign currency loss of $198,000 during the quarter, contrasting with a gain of $401,000 in the same period of the previous year[27]