Release Date: December 09, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you elaborate on the strategic focus behind renaming your business segments and how Amtech plans to participate in AI and data center growth? A: Bob Dle, CEO: The renaming of our segments aims to provide clearer definitions and align with our strategic focus. Our semiconductor fabrication solutions business will focus on consumables, parts, and services for semiconductor wafer and device fabrication, while our thermal processing solutions business will focus on capital equipment for advanced packaging. We see opportunities in AI, particularly in advanced packaging applications and thermal management solutions. Our goal is to transform Amtech into a business with more recurring revenue streams, reducing reliance on equipment sales and enhancing margins.
Q: How is Amtech positioned in the silicon carbide industry, and what growth have you seen in consumables for this market? A: Bob Dle, CEO: We have seen substantial growth in our consumables business, particularly in silicon carbide wafer production, with a 28% year-over-year increase in sales from our PR Hoffman division. While the EV market has tempered expectations, we remain optimistic about silicon carbide's growth potential due to expanding applications beyond EVs.
Q: What is your outlook for cash flow generation over the next six months, considering the recent cash decrease? A: Wade Jany, CFO: Our cash flow will be supported by operational activities and inventory reduction. The recent cash decrease was due to paying off $4 million in debt, leaving us debt-free. We aim to maintain positive cash flow even during downturns by focusing on cost control and growth initiatives.
Q: What is your margin outlook, given the recent increase in margins? A: Wade Jany, CFO: We expect margins to be slightly below the fourth quarter's performance in the first quarter of fiscal 2025, but we aim to maintain around 40% margins. Our restructuring efforts and contract manufacturing strategy are designed to enhance margins as revenue and volume increase.
Q: Will R&D expenses return to previous levels after the recent increase? A: Wade Jany, CFO: The recent increase in R&D expenses was due to timing shifts, and we expect to return to a normal run rate of around $1 million per quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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