Amtech Systems Reports 39% Revenue Decline in Q2 Fiscal 2025

Amtech Systems, Inc. reported a significant decline in financial performance for the second quarter of fiscal year 2025, with net revenues of $15.6 million, down 39% from $25.4 million in the same period last year. For the six months ended March 31, 2025, revenues totaled $40.0 million, a decrease of 21% compared to $50.4 million in the prior year. The company attributed this decline primarily to reduced sales in its Thermal Processing Solutions segment, driven by prolonged weakness in the semiconductor market and a shipping delay related to a customer dispute. The Semiconductor Fabrication Solutions segment also experienced lower sales, particularly in wafer cleaning equipment.

The company's gross profit for the quarter was negative $0.3 million, resulting in a gross margin of -2%, compared to a gross profit of $8.5 million and a gross margin of 33% in the prior year. The decline in gross profit was influenced by higher inventory write-downs and lower revenue. Operating losses for the quarter reached $31.6 million, compared to an operating income of $1.4 million in the same quarter last year. The losses were exacerbated by a $20.4 million impairment charge related to goodwill and intangible assets, reflecting the company's challenges in the current market environment.

Amtech's operational metrics also showed a decline, with total new orders booked at $15.7 million for the quarter, down from $19.8 million in the previous year. The backlog as of March 31, 2025, was $19.1 million, significantly lower than $44.3 million a year earlier. The company reported a decrease in customer engagement, with one customer accounting for 11% of the backlog, indicating a concentration risk. The company’s employee headcount remained stable, with no significant changes reported.

In terms of strategic developments, Amtech continues to focus on its growth strategy, which includes investments in research and development and the introduction of new products, such as the next-generation reflow platform, Aurora. The company also completed the acquisition of Entrepix in 2023, enhancing its capabilities in the semiconductor fabrication market. However, the company is facing challenges due to market conditions, including high inventory levels and geopolitical tensions affecting demand.

Looking ahead, Amtech anticipates ongoing challenges in the semiconductor market, particularly in the mature node segment. The company is committed to pursuing both organic growth and strategic acquisitions to bolster its market position. Management has indicated that future performance will depend on the successful execution of its growth initiatives and the ability to adapt to changing market conditions. The company remains cautious about its outlook, given the current economic uncertainties and the cyclical nature of the semiconductor industry.