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Amtech Systems (ASYS)
NASDAQ:ASYS
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Amtech Systems
(NASDAQ:ASYS)
Rating:51Neutral
Price Target:
$4.50
▼(-2.17%Downside)
Positive Factors
AI Driven Business
Strength was noted in the AI driven AP business for reflow equipment.
Restructuring Efforts
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
Backlog Decline
The backlog in the year-ago period was $44.3 million, indicating a significant decrease to the current backlog of $19.1 million.
Operating Losses
The GAAP operating loss for the Thermal Processing Solutions segment was $8.40 million in the March quarter versus an operating income of $2.87 million in the prior quarter.
Revenue 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)
Market Cap
$66.42M
Dividend YieldN/A
Average Volume (3M)34.33K
Price to Earnings (P/E)40.4
Beta (1Y)0.42
Revenue Growth-16.52%
EPS Growth-46.13%
CountryUS
Employees328
SectorTechnology
Sector Strength91
IndustrySemiconductors
Share Statistics
EPS (TTM)-2.23
Shares Outstanding14,313,963
10 Day Avg. Volume35,832
30 Day Avg. Volume34,333
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.31
Price to Sales (P/S)0.00
P/FCF Ratio14.63
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue0.17
Enterprise Value/Gross Profit2.41
Enterprise Value/Ebitda-1.47
Forecast
1Y Price Target
$6.00Price Target Upside30.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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 primarily through the sale of its thermal processing equipment and related technologies to semiconductor manufacturers. The company's key revenue streams include the direct sale of its diffusion furnaces and polishing systems, as well as the provision of customer support services and spare parts. Amtech often establishes long-term partnerships with its clients, ensuring a steady demand for its equipment and services. Additionally, the company's focus on innovation and customization enables it to cater to specific customer needs, enhancing its market competitiveness and revenue potential.
Amtech Systems Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q2-2025)
| % Change Since: 36.90%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The call conveyed a mixed outlook with significant challenges in the mature node semiconductor market, impacting revenue and profitability, but also highlighted strong demand in AI-related segments and successful cost optimization efforts. The company's solid cash position and strategic initiatives provide a positive long-term perspective despite current headwinds.Q2-2025 Updates
Positive Updates
AI Packaging Equipment Bookings Surge
Orders for advanced packaging equipment, particularly for AI applications, were very strong, with second-quarter bookings exceeding total bookings for all of fiscal 2024.
Cost Structure Optimization
The company executed site consolidations and workforce adjustments, expecting $1 million in incremental EBITDA savings per quarter from Q4 2025, with total annualized savings anticipated at $11 million.
Strong Cash Position
Amtech ended the quarter with $13.4 million in cash and no outstanding debt, providing flexibility for strategic investments.
Growth in Semiconductor Fabrication Solutions
Stabilization in the Semiconductor Fabrication Solutions segment was noted, with a book-to-bill ratio slightly above 1, indicating balanced incoming orders and revenue.
Negative Updates
Revenue Shortfall and Profitability Impact
Revenue for the second fiscal quarter came in below guidance, driven by a $4.9 million shipment delay in the Thermal Processing Solutions segment and overall softening in the mature node semiconductor market, resulting in an adjusted EBITDA loss of $1.4 million.
Significant Impairment and Write-offs
Amtech recorded a $22.9 million impairment charge and a $6 million inventory write-off due to prolonged softness in the mature node and EV-related semiconductor market.
Decreased Revenue and Net Loss
Net revenue decreased by 36% from fiscal Q1 and 39% from the second quarter of fiscal 2024. GAAP net loss for the second quarter was $31.8 million, compared to net income in previous periods.
Weak Orders for Reflow Equipment in the U.S.
Orders for reflow equipment in the U.S. were weak due to high tariffs, although this was offset by strength in Asia.
Company Guidance
During Amtech Systems' fiscal second quarter 2025 conference call, the company highlighted several key metrics and guidance for the future. The company reported a net revenue of $15.6 million, representing a 36% decrease from fiscal Q1 and a 39% decrease from the same quarter in fiscal 2024. This decline was attributed to a $4.9 million shipment delay and weakened demand in the mature node semiconductor market. The adjusted EBITDA for the quarter was a loss of $1.4 million, with a GAAP net loss of $31.8 million or $2.23 per share. Notably, the company recorded an impairment charge of $22.9 million and a $6 million inventory write-off. Despite these challenges, Amtech saw strong demand for its advanced packaging equipment, driven by AI applications, with Q2 bookings for this product line exceeding total bookings for fiscal 2024. The company anticipates revenues of approximately $16.9 million for Q3 2025 and expects adjusted EBITDA to be nominally neutral. Cost-optimization efforts are projected to yield additional savings of $1 million per quarter starting in Q4 2025, with a target of achieving a breakeven adjusted EBITDA at around $16 million in revenue. Amtech ended the quarter with $13.4 million in cash and no outstanding debt, positioning it to continue strategic investments.Amtech Systems Financial Statement Overview
Summary
Amtech Systems is facing substantial financial challenges with declining revenues and profitability pressures, indicated by negative profit margins and decreased cash flow growth. Despite a relatively stable balance sheet, increased leverage and a negative return on equity highlight potential risks. The company needs to address operational inefficiencies and stabilize revenues to improve its financial health.Income Statement
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.45
Neutral
Balance Sheet
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.60
Neutral
Cash Flow
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.55
Neutral
| 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 |
| EBITDA | -3.92M | -9.65M | 6.55M | 5.21M | 810.00K |
| Net Income | -8.49M | -12.58M | 17.37M | 1.51M | -3.91M |
Balance Sheet | |||||
| Total Assets | 118.95M | 137.02M | 133.53M | 116.91M | 102.10M |
| Cash, Cash Equivalents and Short-Term Investments | 11.09M | 13.13M | 46.87M | 32.84M | 45.07M |
| Total Debt | 17.57M | 22.20M | 11.82M | 13.72M | 10.24M |
| 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
Neutral
4.60
Price Trends
4.08
Positive
4.30
Positive
4.93
Negative
Market Momentum
0.18
Negative
56.56
Neutral
52.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASYS, the sentiment is Neutral. The current price of 4.6 is above the 20-day moving average (MA) of 4.47, above the 50-day MA of 4.08, and below the 200-day MA of 4.93, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 56.56 is Neutral, neither overbought nor oversold. The STOCH value of 52.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $95.94M | 25.19 | -0.10% | ― | 5.19% | -101.31% | |
63 Neutral | $913.31M | ― | -9.87% | ― | -30.75% | -3668.44% | |
63 Neutral | $33.80B | 5.84 | -11.67% | 1.84% | 5.28% | -18.34% | |
61 Neutral | $114.24M | ― | 378.21% | ― | 39.81% | ― | |
58 Neutral | $412.63M | 19.55 | -3.34% | ― | -10.95% | -111.40% | |
57 Neutral | $287.55M | ― | -24.31% | ― | -12.13% | -39.21% | |
51 Neutral | $66.42M | 40.38 | -47.90% | ― | -16.52% | -46.13% |
* Technology Sector Average
Performance Comparison
ASYS
Amtech Systems
4.60
-1.34
-22.56%
AEHR
Aehr Test Systems
14.05
-6.56
-31.83%
COHU
Cohu
19.71
-14.31
-42.06%
INTT
inTEST
7.07
-4.08
-36.59%
SQNS
Sequans Communications S A
4.72
3.57
310.43%
VLN
Valens
2.55
-0.40
-13.56%
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.