Amtech Systems Reports $24.4M Revenue, Net Income Turnaround in Latest Quarter

Amtech Systems, Inc. reported a net revenue of $24.4 million for the three months ended December 31, 2024, a decrease of approximately 2% compared to $24.9 million in the same period last year. The company achieved a gross profit of $9.4 million, resulting in a gross margin of 38%, up from 33% in the prior year. This improvement in gross margin was attributed to a favorable product mix and lower costs in the Thermal Processing Solutions segment, which generated $18.7 million in revenue, an increase from $17.5 million in the previous year. Conversely, the Semiconductor Fabrication Solutions segment saw a decline in revenue to $5.7 million from $7.4 million, primarily due to reduced sales of wafer cleaning equipment.

The company reported a net income of $312,000 for the quarter, a significant turnaround from a net loss of $9.4 million in the same quarter of 2023. This positive shift was supported by a reduction in selling, general, and administrative expenses, which decreased to $8.1 million from $8.6 million year-over-year. Additionally, research and development expenses fell to $876,000 from $1.6 million, reflecting a strategic focus on cost management. The effective tax rate for the quarter was 58.8%, compared to a negative rate of (0.6%) in the prior year, primarily due to foreign income being taxed at different rates.

Operationally, Amtech's backlog as of December 31, 2024, was $19.0 million, down from $50.0 million a year earlier, indicating a decrease in new orders booked, which totaled $18.1 million compared to $23.1 million in the previous year. The company noted that one customer accounted for 22% of its net revenues during the quarter, highlighting a concentration risk. Geographically, the Americas contributed 30% of total revenues, while Asia accounted for 51%, with significant sales in Taiwan and China.

In terms of strategic developments, Amtech continues to focus on growth through both acquisitions and organic initiatives. The company recently completed the acquisition of Entrepix, enhancing its capabilities in chemical mechanical planarization (CMP) technology. Furthermore, Amtech is investing in research and development, including the launch of its next-generation reflow platform, Aurora, in 2023. The company is also adapting to market conditions by evaluating its operational efficiencies and exploring opportunities for geographic expansion, particularly in regions outside of China.

Looking ahead, Amtech remains cautiously optimistic about its growth prospects, driven by trends in advanced mobility, supply chain resiliency, and artificial intelligence. However, the company acknowledges the cyclical nature of the semiconductor industry and the potential impact of market conditions on its future performance. The management's focus on cost control and strategic investments is expected to support its operational resilience and long-term growth objectives.