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Amtech Systems (ASYS)
NASDAQ:ASYS
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Amtech Systems
(NASDAQ:ASYS)
57Neutral
Positive Factors
Cash Reserves
Unrestricted cash and cash equivalents at the end of the December quarter were $13.2 million dollars, compared to $11.1 million dollars at the end of the September quarter.
Cost Reduction
Amtech has taken actions to reduce fixed costs and expenses, which are now expected to result in annualized savings of $7 million.
Sales and Earnings
Driven by the Thermal Processing Segment, Amtech reported upside sales and earnings for F1Q25.
Negative Factors
Impairment Charge
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.
Revenue Forecast
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.
Shipping Delays
Amtech's Thermal Processing Solutions Segment experienced a customer dispute resulting in a shipping delay of a separate order worth approximately $4.9 million.
Amtech Systems (ASYS) vs. S&P 500 (SPY)
Market Cap
$51.44M
Dividend YieldN/A
Average Volume (3M)62.49K
Price to Earnings (P/E)43.3
Beta (1Y)0.45
Revenue Growth-13.71%
EPS GrowthN/A
CountryUS
Employees328
SectorTechnology
Sector Strength67
IndustrySemiconductors
Share Statistics
EPS (TTM)0.02
Shares Outstanding14,289,066
10 Day Avg. Volume48,851
30 Day Avg. Volume62,489
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.59
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit2.26
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.00Price Target Upside77.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Amtech Systems Business Overview & Revenue Model
Company DescriptionAmtech Systems, Inc. (ASYS) is a global supplier of advanced thermal processing equipment, primarily serving the semiconductor industry. The company's core products include diffusion furnaces, related automation, and other tools used in the manufacturing of semiconductors. Amtech Systems operates within the semiconductor equipment sector, focusing on providing innovative solutions that enhance the efficiency and productivity of semiconductor manufacturing processes.
How the Company Makes MoneyAmtech Systems generates revenue through the sale of its advanced thermal processing equipment and related services to semiconductor manufacturers. The company primarily makes money by selling diffusion furnaces and automation tools that are integral to the semiconductor production process. Additionally, Amtech may earn revenue from providing maintenance services, spare parts, and equipment upgrades. Significant partnerships with semiconductor manufacturers and continuous innovation in product offerings contribute to the company's earnings, enabling them to cater to the evolving needs of the semiconductor industry.
Amtech Systems Financial Statement Overview
Summary
Amtech Systems shows signs of recovery, particularly in cash flow metrics. Profitability and revenue growth have faced challenges, but recent improvements in operating efficiency and balance sheet stability reflect a positive trajectory. Continued focus on enhancing profit margins and sustaining cash flow growth will be crucial for stronger financial health.Income Statement
The company experienced fluctuations in revenue, showing a decline from the previous year but a recent improvement in the TTM period. Gross profit margin is reasonable at approximately 37.1% for TTM. However, net profit margin is relatively low at 1.2% in TTM, indicating weak profitability. EBIT and EBITDA margins have improved compared to the previous annual report, but still suggest challenges in operational efficiency.58
Neutral
Balance Sheet
The balance sheet shows stability with a debt-to-equity ratio of approximately 0.21, indicating low leverage. The equity ratio is strong at around 70% for TTM, suggesting good asset backing by equity. Return on equity has improved in the TTM period to 1.44%, but remains low, indicating modest returns on shareholders' equity.65
Positive
Cash Flow
Operating cash flow is positive in the TTM period, showing recovery from previous negative cash flows. Free cash flow is also positive, indicating improved liquidity. The operating cash flow to net income ratio is strong, suggesting efficient cash conversion from earnings. However, free cash flow growth has been volatile, presenting potential risks in cash flow stability.72
Positive
| Breakdown | ||||
| Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 101.21M | 113.31M | 106.30M | 85.20M | 65.46M | Gross Profit |
| 36.23M | 35.55M | 39.51M | 34.53M | 24.44M | EBIT |
| -6.73M | -14.97M | 4.82M | 3.73M | 2.74M | EBITDA |
| -3.92M | -9.65M | 6.55M | 5.21M | 810.00K | Net Income Common Stockholders |
| -8.49M | -12.58M | 17.37M | 1.51M | -3.91M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 11.09M | 13.13M | 46.87M | 32.84M | 45.07M | Total Assets |
| 118.95M | 137.02M | 133.53M | 116.91M | 102.10M | Total Debt |
| 17.57M | 22.20M | 11.82M | 13.72M | 10.24M | Net Debt |
| 6.49M | 9.07M | -35.05M | -19.12M | -34.83M | Total Liabilities |
| 36.59M | 48.66M | 35.17M | 31.28M | 20.58M | Stockholders Equity |
| 82.36M | 88.36M | 98.37M | 85.63M | 81.52M |
| Cash Flow | Free Cash Flow | |||
| 4.96M | -10.60M | 4.07M | -8.97M | -4.34M | Operating Cash Flow |
| 9.84M | -7.70M | 5.20M | -5.96M | -1.66M | Investing Cash Flow |
| -2.18M | -37.83M | 18.77M | -8.09M | -12.62M | Financing Cash Flow |
| -10.63M | 11.74M | -8.27M | 1.17M | -1.50M |
Amtech Systems Technical Analysis
Negative
3.38
Price Trends
4.43
Negative
4.91
Negative
5.39
Negative
Market Momentum
-0.30
Negative
30.65
Neutral
51.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASYS, the sentiment is Negative. The current price of 3.38 is below the 20-day moving average (MA) of 3.66, below the 50-day MA of 4.43, and below the 200-day MA of 5.39, indicating a bearish trend. The MACD of -0.30 indicates Negative momentum. The RSI at 30.65 is Neutral, neither overbought nor oversold. The STOCH value of 51.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $74.47M | 25.19 | -0.10% | ― | 5.19% | -101.31% | |
68 Neutral | $259.31M | 11.22 | 21.69% | ― | -14.48% | 46.79% | |
60 Neutral | $10.93B | 10.46 | -6.70% | 2.99% | 7.54% | -12.22% | |
59 Neutral | $776.75M | ― | -9.87% | ― | -30.75% | -3668.44% | |
57 Neutral | $51.44M | 43.27 | 1.46% | ― | -13.71% | ― | |
57 Neutral | $51.04M | ― | 230.94% | ― | 9.36% | ― | |
55 Neutral | $287.55M | ― | -23.83% | ― | -31.25% | -79.47% |
* Technology Sector Average
Performance Comparison
ASYS
Amtech Systems
3.38
-1.61
-32.26%
AEHR
Aehr Test Systems
8.26
-3.39
-29.10%
COHU
Cohu
16.42
-12.50
-43.22%
INTT
inTEST
5.70
-5.99
-51.24%
SQNS
Sequans Communications S A
1.90
0.54
39.71%
VLN
Valens
2.74
0.32
13.22%
Amtech Systems Earnings Call Summary
Earnings Call Date:Feb 05, 2025
(Q1-2025)
| % Change Since: -35.37%|
Next Earnings Date:May 07, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a company in transition, with significant progress in cost savings and profitability improvements, especially in AI and advanced packaging. However, challenges remain with muted revenue growth and softness in key markets such as automotive, casting a shadow over near-term prospects.Q1-2025 Updates
Positive Updates
Exceeding Guidance in Q1 2025
Amtech's revenue of $24.4 million and $1.9 million in adjusted EBITDA exceeded guidance, showing operational excellence and cost optimization.
Significant Cost Savings Achieved
Restructuring initiatives have yielded over $8 million in annualized cost savings, expected to reach $9 million by the end of Q2.
Improved Profitability
GAAP net income for Q1 2025 was $0.3 million, a significant improvement from the GAAP net loss of $9.4 million in Q1 2024.
Strength in AI and Advanced Packaging
Demand for reflow equipment in AI infrastructure and advanced packaging has strengthened, providing growth opportunities.
Cash Position Improvement
Unrestricted cash and cash equivalents increased to $13.2 million from $11.1 million in the previous quarter due to better receivables and inventory management.
Negative Updates
Muted Revenue Growth
Revenue remained muted on a year-over-year basis due to continued softness in the markets served, with a decrease of 2% from a year ago.
Decreased Gross Margin
GAAP gross margin decreased by $0.4 million sequentially compared to the previous quarter due to a less favorable product mix.
Softness in Automotive Market
The automotive segment, particularly on the equipment side, continues to experience softness with no sharp recovery in sight.
Challenging Near-Term Outlook
For Q2 2025, expected revenues are in the range of $21 million to $23 million with adjusted EBITDA nominally positive, indicating a challenging outlook.
Company Guidance
During the Amtech Systems Fiscal First Quarter 2025 Earnings Conference Call, the company reported that their results surpassed expectations with $24.4 million in revenue and $1.9 million in adjusted EBITDA, despite a 2% year-over-year revenue decline. The restructuring efforts have led to over $8 million in annualized cost savings, which are expected to increase to approximately $9 million by the end of the second fiscal quarter. The company's strategic shift to a semi-fabless model has enhanced operational efficiency, and pricing adjustments have been made to counter inflationary pressures. Looking ahead, Amtech anticipates second-quarter revenues between $21 million and $23 million, with nominally positive adjusted EBITDA, driven by investments in AI infrastructure and supply chain diversification, despite near-term challenges in the automotive market. The advanced packaging segment is experiencing growth, and the company is focused on expanding its consumables, parts, and services offerings to drive higher margins and more stable revenue growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.