Amtech Reports Fourth Quarter and Fiscal 2021 Results

Amtech Systems, Inc. (NASDAQ: ASYS), a manufacturer of capital equipment, including thermal processing and wafer polishing, and related consumables used in fabricating semiconductor devices, such as silicon carbide (SiC) and silicon power devices, analog and discrete devices, electronic assemblies and light-emitting diodes (LEDs), today reported results for its fourth quarter and fiscal year ended September 30, 2021.

Fourth Quarter Fiscal 2021 Financial and Operational Highlights:

• Net revenue of $24.3 million
• Operating income of $1.3 million
• Income from operations, net of tax, of $0.7 million
• Income per diluted share of $0.05
• Customer orders of $34.2 million
• Book to bill ratio of 1.4:1
• Unrestricted cash of $32.8 million

Fiscal 2021 Financial and Operational Highlights:

• Net revenue of $85.2 million
• Operating income of $3.7 million
• Income from operations, net of tax, of $1.5 million
• Income per diluted share of $0.11
• Customer orders of $115.4 million
• September 30, 2021 backlog of $44.1 million

Mr. Michael Whang, Chief Executive Officer of Amtech, commented, “Fiscal 2021 was a strong year for Amtech, with over $115 million in bookings and over $85 million in revenue, representing year-over-year growth rates of 84% and 30%, respectively. We are encouraged to see this strength continuing into 2022, with a record backlog of $44.1 million and new quoting activity extending into the second fiscal quarter and beyond. Although industry wide logistics and supply chain challenges are creating near-term headwinds, longer-term growth drivers across our served markets remain healthy.”

GAAP Financial Results

Net revenues increased 5% sequentially and 61% from the fourth quarter of fiscal 2020, with the sequential increase primarily attributable to strong shipments of our advanced packaging and SMT equipment and increased shipments of our polishing machines. The prior year period was affected by the COVID-19 pandemic.

Relative to last quarter, gross margin decreased in the fourth quarter of fiscal 2021 primarily due to a less favorable product mix. Gross margin in the fourth quarter of fiscal 2021 increased compared to prior year due to product mix and increased capacity utilization, partially offset by rising labor and material costs.

Selling, General & Administrative (“SG&A”) expenses decreased $0.7 million on a sequential basis. Adjusting for cyber incident expenses of $1.1 million in the third quarter of fiscal 2021 and the partial insurance reimbursement for this incident ($0.4 million) in the fourth fiscal quarter of 2021, SG&A increased sequentially by $0.8 million due primarily to increased consulting, shipping and logistics costs. SG&A increased $1.3 million compared to the prior year period due primarily to SG&A from the acquisition of Intersurface Dynamics in fiscal 2021, as well as increased travel and consulting expenses.

Research, Development and Engineering decreased $0.2 million sequentially and increased $0.5 million compared to the same prior year period due primarily to the timing of materials used in our strategic R&D projects.

Operating income was $1.3 million, compared to operating income of $1.2 million in the third quarter of fiscal 2021 and an operating loss of $1.2 million in the same prior year period.

Income tax provision was $0.7 million for the three months ended September 30, 2021, compared to a provision of $0.7 million in the preceding quarter and $0.5 million in the same prior year period.

Income from operations, net of tax, for the fourth quarter of fiscal 2021 was $0.7 million, or 5 cents per share. This compares to a loss from operations of $2.0 million, or 14 cent per share, for the fourth quarter of fiscal 2020 and income of $0.4 million, or 3 cent per share, in the preceding quarter.

Outlook

The Company’s outlook reflects the anticipated ongoing logistical impacts and the related delays for goods shipped to and from China. Actual results may differ materially in the weeks and months ahead. Additionally, the semiconductor equipment industries can be cyclical and inherently impacted by changes in market demand. Operating results can be significantly impacted, positively or negatively, by the timing of orders, system shipments, and the financial results of semiconductor manufacturers.

For the first fiscal quarter ending December 31, 2021, revenues are expected to be in the range of $24 to $27 million. Gross margin for the quarter ending December 31, 2021 is expected to be approximately 40% due to a more favorable product mix, with operating margin in the mid to upper single digits.

A portion of Amtech's results is denominated in Renminbis, a Chinese currency. The outlook provided in this press release is based on an assumed exchange rate between the United States Dollar and the Renminbi. Changes in the value of the Renminbi in relation to the United States Dollar could cause actual results to differ from expectations.

Conference Call

Amtech Systems will host a conference call today at 5:00 p.m. ET to discuss our fiscal fourth quarter financial results. The call will be available to interested parties by dialing 800-367-2403. For international callers, please dial +1 334-777-6978. The confirmation code is 7034799. A live webcast of the conference call will be available in the Investor Relations section of Amtech’s website at: https://www.amtechsystems.com/investors/events.

A replay of the webcast will be available in the Investor Relations section of the company’s web site at http://www.amtechsystems.com/conference.htm shortly after the conclusion of the call and will remain available for approximately 30 calendar days.

About Amtech Systems, Inc.

Amtech Systems, Inc. is a leading, global manufacturer of capital equipment, including thermal processing and wafer polishing, and related consumables used in fabricating semiconductor devices, such as silicon carbide (SiC) and silicon power devices, analog and discrete devices, electronic assemblies and light-emitting diodes (LEDs). We sell these products to semiconductor device and module manufacturers worldwide, particularly in Asia, North America and Europe. Our strategic focus is on semiconductor growth opportunities in power electronics, sensors and analog devices leveraging our strength in our core competencies in thermal and substrate processing. We are a market leader in the high-end power chip market (SiC substrates, 300mm horizontal thermal reactor, and electronic assemblies used in power, RF, and other advanced applications), developing and supplying essential equipment and consumables used in the semiconductor industry. Amtech's products are recognized under the leading brand names BTU International, Bruce Technologies™, PR Hoffman™ and Intersurface Dynamics, Inc.

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this press release is forward-looking in nature. All statements in this press release, or made by management of Amtech Systems, Inc. and its subsidiaries ("Amtech"), 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, and the Private Securities Litigation Reform Act of 1995). The forward-looking statements in this press release relate only to events or information as of the date on which the statements are made in this press release. Examples of forward-looking statements include statements regarding Amtech's future financial results, operating results, business strategies, projected costs, products under development, competitive positions, plans and objectives of Amtech and its management for future operations, efforts to improve operational efficiencies and effectiveness and profitably grow our revenue, and enhancements to our technologies and expansion of our product portfolio. In some cases, forward-looking statements can be identified by terminology such as "may," "plan," "anticipate," "seek," "will," "expect," "intend," "estimate," "believe," "continue," "predict," "potential," "project," "should," "would," "could", "likely," "future," "target," "forecast," "goal," "observe," and "strategy" or the negative of these terms or other comparable terminology used in this press release or by our management, which are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. The Form 10-K that Amtech filed with the Securities and Exchange Commission (the "SEC") for the year-ended September 30, 2021, listed various important factors that could affect the Company's future operating results and financial condition and could cause actual results to differ materially from historical results and expectations based on forward-looking statements made in this document or elsewhere by Amtech or on its behalf. These factors can be found under the heading "Risk Factors" in the Form 10-K and investors should refer to them. Because it is not possible to predict or identify all such factors, any such list cannot be considered a complete set of all potential risks or uncertainties. Except as required by law, we undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events, or otherwise.

* Includes Cash, Cash Equivalents and Restricted Cash that are included in Held-For-Sale Assets on the Condensed Consolidated Balance Sheets for periods prior to January 22, 2020.

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