Amtech Systems, Inc. Reports Strong Second Quarter Results 59% Increase in Revenues and 400% in Earnings for the Quarter
May 17, 2005 07:45:02 (ET)
TEMPE, Ariz., May 17, 2005 (BUSINESS WIRE) -- Amtech Systems, Inc. (ASYS, Trade), a global supplier of production and automation systems and related supplies for the semiconductor, silicon wafer, solar cell and microelectromechanical system (MEMS) industries, today reported its net income for the second quarter ended March 31, 2005.
Revenues for the second quarter of 2005 totaled $8.9 million, an increase of 59% from $5.6 million in the second quarter of 2004. The increase in second quarter revenues was primarily due to the 84% increase in the revenues of our semiconductor equipment segment. Our newest subsidiary, Bruce Technologies, contributed $2.6 million to the increase in second quarter revenues. Revenues of Bruce Technologies were greatly enhanced by the shipment of a major system in the second quarter of 2005. Revenues of our polishing supplies segment increased 6%.
Revenues for the six months ended March 31, 2005 were $16.1 million, an increase of 68% from $9.6 million for the six months ended March 31, 2004. The increase in year-to-date revenues was also primarily attributable to the increase in revenues of our semiconductor equipment segment, including recognition of $0.2 million of previously deferred revenues in excess of revenues deferred from fiscal year 2005 shipments. Bruce Technologies contributed $4.1 million to the year-to-date increase in revenues. Year-to-date revenues of our polishing supplies segment increased 10% compared to 2004 year-to-date revenues.
Net income during the second quarter of 2005 was $0.5 million, a 400% increase, or $.18 per diluted share, compared to $0.1 million, or $.03 per diluted share, for the second quarter of 2004. The increase in net income resulted directly from the significant increase in revenues. Also, income tax expense was reduced by the reversal of the valuation allowance on the portion of the deferred tax assets utilized during the second quarter of fiscal 2005.
Net income during the six months ended March 31, 2005 was $0.6 million, a 500% increase, or $.21 per diluted share, compared with $0.1 million, or $.04 per diluted share, for the comparable period in 2004.
As of March 31, 2005, our order backlog had decreased to $4.6 million, from $8.5 million at December 31, 2004. The Company's backlog has historically been and continues to be volatile due to the size and timing of large system orders. As of May 12, 2005, our order backlog has recovered to a level in excess of $7 million. Our backlog includes customer orders expected to ship within the next 12 months and revenue deferred pursuant to our revenue recognition policies. Our backlog at any specific point in time is not necessarily indicative of actual revenues or earnings for any succeeding period due to possible customer changes in delivery schedules or cancellation of orders, and because backlog does not provide any assurance of a profit from those orders. However, we do expect that third quarter revenues and earnings will be lower than in our second quarter.
Mr. J.S. Whang, President and Chief Executive Officer, stated, "We are very pleased and encouraged by the strong second quarter profits resulting from our efforts to increase revenue and profit in both our semiconductor equipment and polishing supplies segments. There are signs of our industry continuing to be in a down cycle, which will make our near term recovery less than consistent, however we remain confident and optimistic about our longer term future."
Amtech Systems, Inc. manufactures capital equipment and related consumables used in the manufacture of various thin-wafer materials, primarily silicon wafers for the semiconductor industry, and certain thermal processes and related automation used in fabricating semiconductor devices, MEMS and solar cells. These products include horizontal diffusion furnaces, and related automation and polishing carriers, templates and machines.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by Amtech Systems, Inc.) contains statements that are forward-looking. All statements 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. Such forward looking information involves a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those discussed or anticipated by management. Potential risks and uncertainties include, among other factors, the inability to complete the announced acquisition or to integrate the acquisition due to unforeseen circumstances, industry specific and general business conditions, competitive market conditions, the success of Amtech's growth and sales strategies, the possibility of customer changes in delivery schedules, the cancellation of orders, potential delays in product shipments, delays in obtaining inventory parts from suppliers and the failure to satisfy customer acceptance requirements.
This earnings release should be read in conjunction with the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2004 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2005.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands, except share data)
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QUARTER ENDED SIX MONTHS ENDED
MARCH 31, MARCH 31,
----------------------- -----------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
Net Revenues $ 8,915 $ 5,631 $ 16,087 $ 9,552
Operating Income $ 508 $ 162 $ 607 $ 163
Net Income $ 503 $ 98 $ 572 $ 99
Earnings Per Share:
----------------------
Basic $ .19 $ .04 $ .21 $ .04
Diluted $ .18 $ .03 $ .21 $ .04
Weighted Average
Shares Outstanding:
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Basic 2,705,121 2,700,671 2,705,121 2,700,387
Diluted 2,753,522 2,787,533 2,757,121 2,795,492
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CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
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MARCH 31, SEPTEMBER 30,
2005 2004
---------- --------------
Cash and Equivalents
-- NOTE A $ 909 $ 1,675
Accounts Receivable -
Net 6,475 3,629
Inventories 5,888 5,994
Income Taxes
Receivable and
Prepaid Expenses 871 968
---------- ----------
Total Current Assets 14,143 12,266
Property, Plant and
Equipment - Net 2,112 2,220
Goodwill and Other
Assets - Net 2,092 2,174
---------- ----------
$ 18,347 $ 16,660
========== ==========
Current Liabilities 5,175 4,531
Long-Term Obligations 843 474
Total Stockholders'
Equity 12,329 11,655
---------- ----------
$ 18,347 $ 16,660
========== ==========
NOTE A -- On April 22, 2005, the company obtained $1.9 million in net
proceeds from the issuance of preferred stock.
SOURCE: Amtech Systems, Inc.
Amtech Systems, Inc.
Robert T. Hass, 480-967-5146
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