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Amtech Systems, Inc. (ASYS)
:ASYS
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Amtech Systems (ASYS) AI Stock Analysis

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ASYS

Amtech Systems

(NASDAQ:ASYS)

Rating:56Neutral
Price Target:
$6.00
▲(0.50% Upside)
Amtech Systems' stock score is primarily influenced by its financial challenges, with declining revenues and profitability weighing heavily. Positive technical indicators and strategic growth in AI-related segments provide some optimism. However, the negative P/E ratio and lack of dividend yield limit valuation appeal. The earnings call highlights both growth opportunities and market challenges, contributing to a mixed outlook.
Positive Factors
AI-driven business performance
Strength was noted in AI driven AP business for reflow equipment in Asia.
Cost-saving measures
Restructuring moves are expected to save $13 million on an annual basis and result in an EBITDA breakeven annual sales level of $60 million.
Negative Factors
Industry downturn
The Company anticipates a material impairment charge related to goodwill, intangible, and inventory assets due to the prolonged downturn in the mature node semiconductor industry.
Sales guidance
The Company now expects second quarter revenues in the range of $15 - $16 million, compared to the original second quarter guidance of $21 - $23 million revenue.

Amtech Systems (ASYS) vs. SPDR S&P 500 ETF (SPY)

Amtech Systems Business Overview & Revenue Model

Company DescriptionAmtech Systems, Inc. manufactures and sells capital equipment and related consumables for use in fabricating silicon carbide (SiC), silicon power devices, analog and discrete devices, electronic assemblies, and light-emitting diodes (LEDs) worldwide. The company operates in Semiconductor and Material and Substrate segments. The Semiconductor segment designs, manufactures, sells, and services thermal processing equipment, including solder reflow ovens, diffusion furnaces, and customer high-temp belt furnaces for use by semiconductor manufacturers, as well as in electronics, automotive and other industries; and wafer polishing equipment and related services. Its products include horizontal diffusion furnaces; and belt furnaces. The Material and Substrate segment manufactures and sells consumables and machinery for lapping and polishing of materials, such as silicon wafers for semiconductor products; sapphire substrates for LED lighting and mobile devices; silicon carbide wafers for LED and power device applications; various glass and silica components for 3D image transmission; quartz and ceramic components for telecommunications devices; and medical device components, and optical and photonics applications. This segment also offers substrate process chemicals for use in various manufacturing processes, including semiconductors, silicon and compound semiconductor wafers, and optics. The company sells its products through sales personnel, as well as a network of independent sales representatives and distributors. The company was formerly known as Quartz Engineering & Materials, Inc. and changed its name to Amtech Systems, Inc. in 1987. Amtech Systems, Inc. was incorporated in 1981 and is headquartered in Tempe, Arizona.
How the Company Makes MoneyAmtech Systems generates revenue through the sale of its semiconductor and solar manufacturing equipment, which includes both new and refurbished systems. The company also earns income from service agreements, spare parts sales, and maintenance contracts associated with its equipment. Key revenue streams include direct sales to semiconductor manufacturers and solar cell producers, as well as partnerships with other technology firms that enhance its market reach and product offerings. Additionally, Amtech benefits from the growing demand for advanced semiconductor devices and renewable energy technologies, which drive both equipment sales and service-related revenues.

Amtech Systems Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Nov 20, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant growth in AI-related segments and successful cost-reduction strategies counterbalanced by challenges in the mature node semiconductor market and a year-over-year revenue decline.
Q3-2025 Updates
Positive Updates
Revenue Increase
Revenue for the third quarter was $19.6 million, marking a 26% increase over the previous quarter.
AI Infrastructure Growth
Revenue from equipment used for AI infrastructure increased fivefold from a year ago and over 60% sequentially, accounting for about 25% of the Thermal Processing Solutions revenue.
Cost Reduction Initiatives
Implemented cost reduction initiatives resulted in $13 million in annualized savings, including the consolidation of manufacturing sites from 7 to 4.
Employee Retention Credit
The company benefited from a $2.1 million Employee Retention Credit, which reduced payroll tax expenses.
Improved Gross Margin
Normalized gross margin was at 41.5%, an improvement from 36.5% in the third quarter of fiscal 2024.
Cash Position Improvement
Unrestricted cash and cash equivalents increased to $15.6 million at the end of the quarter, up from $11.1 million at the end of September 2024.
Negative Updates
Year-over-Year Revenue Decline
Revenues were down 27% compared to the same period last year due to continued weakness in the mature node semiconductor market.
Weak Mature Node Demand
Demand for front-end equipment and consumables tied to mature node semiconductor applications remained weak, affecting sales of wafer cleaning equipment, diffusion systems, and high-temperature furnaces.
Reduced R&D Expenses
Research, development, and engineering expenses declined by $0.5 million quarter-over-quarter due to timing of project-specific purchases.
Company Guidance
During the Amtech Systems Fiscal Third Quarter 2025 Earnings Call, the guidance highlighted several key metrics and strategic initiatives. The company reported a revenue increase of 26% over the prior quarter, reaching $19.6 million, driven primarily by demand in Asia for reflow ovens used in AI applications. Adjusted EBITDA was $2.2 million, benefiting from a nonrecurring Employee Retention Credit, with normalized gross margin at 41.5%, up from 36.5% the previous year. For the upcoming fiscal fourth quarter, Amtech expects revenues between $17 million and $19 million, with AI-related equipment sales growth partially offsetting softness in mature node semiconductor product lines. The company continues to focus on cost optimization, having implemented $13 million in annualized savings, and anticipates adjusted EBITDA margins in the mid-single digits. Additionally, Amtech is investing in next-generation semiconductor packaging equipment to expand its addressable market and enhance customer value.

Amtech Systems Financial Statement Overview

Summary
Amtech Systems is facing financial challenges with declining revenues and negative profit margins. The balance sheet shows stability with a healthy equity ratio, but increased leverage and negative return on equity pose risks. Cash flow is mixed, with some ability to generate cash despite negative net income.
Income Statement
45
Neutral
Amtech Systems has experienced significant volatility in revenue with a notable decline from $113.3M in 2023 to $90.8M TTM, indicating a contraction in sales. Gross profit margin decreased from 31.4% to 31.5% TTM, while the net profit margin turned negative at -34.8% TTM. EBIT and EBITDA margins are also negative, reflecting operational challenges and potential profitability issues.
Balance Sheet
60
Neutral
The company maintains a relatively healthy equity base with an equity ratio of 61.2% TTM, down from previous levels, highlighting stability. However, the debt-to-equity ratio increased to 0.32 TTM, reflecting a rise in leverage which could pose risks amid declining revenues. Return on equity is negative, pointing to inefficiencies in generating profits from shareholder equity.
Cash Flow
55
Neutral
Amtech Systems shows a mixed cash flow picture with free cash flow of $4.56M TTM, but free cash flow growth is negative compared to the previous period. The operating cash flow to net income ratio is positive at 0.24, indicating some ability to generate cash despite negative net income, which provides a cushion against financial stress.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue83.63M101.21M113.31M106.30M85.20M65.46M
Gross Profit27.97M36.23M35.55M39.51M34.53M24.44M
EBITDA-27.21M-3.92M-9.65M6.55M5.21M810.00K
Net Income-31.93M-8.49M-12.58M17.37M1.51M-3.91M
Balance Sheet
Total Assets89.46M118.95M137.02M133.53M116.91M102.10M
Cash, Cash Equivalents and Short-Term Investments15.56M11.09M13.13M46.87M32.84M45.07M
Total Debt18.96M17.57M22.20M11.82M13.72M10.24M
Total Liabilities37.75M36.59M48.66M35.17M31.28M20.58M
Stockholders Equity51.72M82.36M88.36M98.37M85.63M81.52M
Cash Flow
Free Cash Flow6.22M4.96M-10.60M4.07M-8.97M-4.34M
Operating Cash Flow6.49M9.84M-7.70M5.20M-5.96M-1.66M
Investing Cash Flow-260.00K-2.18M-37.83M18.77M-8.09M-12.62M
Financing Cash Flow-3.91M-10.63M11.74M-8.27M1.17M-1.50M

Amtech Systems Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.97
Price Trends
50DMA
4.76
Positive
100DMA
4.28
Positive
200DMA
4.81
Positive
Market Momentum
MACD
0.35
Negative
RSI
63.96
Neutral
STOCH
84.74
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASYS, the sentiment is Positive. The current price of 5.97 is above the 20-day moving average (MA) of 5.11, above the 50-day MA of 4.76, and above the 200-day MA of 4.81, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 63.96 is Neutral, neither overbought nor oversold. The STOCH value of 84.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASYS.

Amtech Systems Risk Analysis

Amtech Systems disclosed 31 risk factors in its most recent earnings report. Amtech Systems reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Amtech Systems Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$92.21M25.19-0.82%-0.81%-117.62%
61
Neutral
$35.62B8.22-10.94%1.88%8.86%-10.36%
58
Neutral
$735.61M19.55-3.34%-10.95%-111.40%
56
Neutral
$85.45M40.38-47.86%-20.20%-58.57%
56
Neutral
$942.97M-10.09%-21.27%-207.30%
49
Neutral
$24.50M415.99%32.23%
49
Neutral
$215.67M-24.56%8.70%-13.95%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ASYS
Amtech Systems
5.97
-0.29
-4.63%
AEHR
Aehr Test Systems
25.89
10.94
73.18%
COHU
Cohu
20.20
-6.16
-23.37%
INTT
inTEST
7.39
0.37
5.27%
SQNS
Sequans Communications S A
0.89
-1.51
-62.92%
VLN
Valens
2.04
-0.13
-5.99%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 23, 2025