• Revenue: $24.4 million for fiscal Q1 2025.
• Adjusted EBITDA: $1.9 million, an increase of $1.8 million year over year.
• Annualized Cost Savings: Over $8 million to date, expected to reach $9 million by the end of Q2.
• Net Revenues: Increased 1% sequentially, decreased 2% year over year.
• GAAP Gross Margin: Decreased by $0.4 million sequentially, increased by $1.1 million year over year.
• Selling, General and Administrative Expenses: Decreased by $0.7 million sequentially and $0.5 million year over year.
• Research, Development and Engineering Expenses: Decreased by $0.1 million sequentially and $0.7 million year over year.
• GAAP Net Income: $0.3 million or $0.02 per share for fiscal Q1 2025.
• Non-GAAP Net Income: $0.8 million or $0.06 per share for fiscal Q1 2025.
• Cash and Cash Equivalents: $13.2 million as of December 31, 2024.
• Q2 2025 Revenue Outlook: Expected range of $21 to $23 million.

• Warning! GuruFocus has detected 4 Warning Signs with ASYS.

Release Date: February 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Amtech Systems Inc (NASDAQ:ASYS) exceeded its guidance with revenue of $24.4 million and $1.9 million in adjusted EBITA.
• Year-over-year adjusted EBITA increased by $1.8 million, indicating improved profitability.
• Restructuring initiatives have yielded over $8 million in annualized cost savings, with expectations to reach $9 million by the end of the second fiscal quarter.
• The adoption of a semi-fabulous model has strengthened operating leverage by reducing fixed costs.
• Demand for flow equipment in leading-edge applications, such as AI infrastructure, has continued to strengthen.

Negative Points

• Revenue remained muted on a year-over-year basis due to continued softness in the markets served by Amtech Systems Inc (NASDAQ:ASYS).
• Demand remains muted for equipment and consumables supporting mature nodes in semiconductor production, particularly in the industrial equipment and automotive markets.
• GAAP gross margin decreased by $0.4 million sequentially due to a less favorable product mix.
• The near-term outlook for revenue and earnings remains challenging, with expectations for revenues in the range of $21 to $23 million for the second fiscal quarter.
• The semiconductor equipment industry is cyclical and inherently impacted by changes in market demand, which could affect future results.

Q & A Highlights

Q: You have done a great job with the restructuring plan. Are there still additional costs that you can take out of the business? If so, what areas would those be in? A: Yes, we are continuing to work on supply chain management to reduce input costs for some equipment. We are also looking at footprint utilization to free up space and reduce fixed costs. Our teams are focused on identifying and converting these opportunities into real savings, and this will remain a focus in 2025. - Robert Daigle, CEO

Q: Can you talk about what you're seeing in the automotive market? Has it gotten better or worse compared to three months ago? A: We continue to see softness in the automotive segment, particularly in equipment. Some OEMs report that we've passed the bottom, while others say conditions remain weak. We assume conditions will stay soft, but we are focusing on improving our cost structure and operating leverage to drive organic growth beyond market recovery. - Robert Daigle, CEO

Q: You mentioned seeing more activity in the advanced packaging space. Can you provide more color on this area and the impact of AI moving towards the edge? A: We've seen strengthening in advanced packaging, particularly with OSATs packaging chipsets for AI data centers. We expect more hardware proliferation to support AI on the edge, driving more volume and benefiting advanced packaging equipment. This trend has been strengthening over the past couple of quarters. - Robert Daigle, CEO

Q: What is your outlook for the second fiscal quarter ending March 31, 2025? A: We expect revenues in the range of $21 to $23 million with adjusted EBITDA nominally positive. Although the near-term outlook remains challenging, we are confident in our long-term prospects for consumables and equipment serving advanced mobility and packaging applications. We continue to optimize structural costs to enhance profitability through market cycles. - Wade Jenke, CFO

Q: How are you managing currency risks, particularly with the RMB? A: A portion of our results is denominated in RMB. Our outlook is based on an assumed exchange rate between the USD and RMB. Changes in the RMB's value relative to the USD could cause actual results to differ from expectations. - Wade Jenke, CFO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.