Amtech Systems Reports 27% Revenue Decline in Q3 Fiscal 2025

Amtech Systems, Inc. reported a significant decline in financial performance for the third quarter of fiscal year 2025, with net revenues of $19.6 million, down 27% from $26.7 million in the same period last year. For the nine months ending June 30, 2025, revenues totaled $59.5 million, a decrease of 23% compared to $77.1 million in the prior year. The company attributed this decline primarily to reduced sales in its Thermal Processing Solutions and Semiconductor Fabrication Solutions segments, driven by prolonged weakness in the semiconductor market and a shipping delay related to a customer dispute.

The company's gross profit for the quarter was $9.1 million, representing a gross margin of 47%, compared to 36% in the previous year. However, for the nine-month period, gross profit fell to $18.2 million, with a gross margin of 31%, down from 34% in the prior year. The decrease in gross margin was influenced by higher inventory write-downs and a shift in product mix away from mature semiconductor nodes. Despite these challenges, the company received an employee retention tax credit that positively impacted gross margins during the quarter.

Operationally, Amtech's total backlog as of June 30, 2025, was $21.2 million, a decrease of 33% from $31.8 million a year earlier. The company reported new orders of $21.7 million for the quarter, a 15% increase compared to the previous year, with strong demand for AI application products in Asia contributing to this growth. However, the Semiconductor Fabrication Solutions segment saw a decline in new orders, reflecting ongoing market challenges. The company’s employee headcount remained stable, with 14.3 million shares outstanding as of June 30, 2025.

Amtech's financial position showed a cash increase to $15.6 million from $11.1 million at the end of the previous fiscal year, primarily due to improved collections and the receipt of employee retention credits. The company reported a net loss of $31.4 million for the nine months ended June 30, 2025, compared to a loss of $8 million in the same period last year. This loss was largely attributed to goodwill impairments totaling $20.4 million, reflecting the impact of market conditions on the company's asset valuations. Looking ahead, Amtech plans to continue investing in research and development and pursue strategic acquisitions to bolster its market position, while navigating the cyclical nature of the semiconductor industry.