AMTECH SYSTEMS INC Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Amtech Systems Inc. filed its Q1 2024 10-Q report on February 9, 2024, detailing financial performance for the quarter ending December 31, 2023.</b>

AI Summary

AMTECH SYSTEMS INC (ASYS) filed a Quarterly Report (10-Q) with the SEC on February 9, 2024. Amtech Systems Inc. filed a 10-Q for the period ending December 31, 2023. The filing covers the first quarter of fiscal year 2024. Key dates include the filing date of February 9, 2024. The company's fiscal year ends on September 30. Amtech Systems Inc. is incorporated in Arizona and operates in the Special Industry Machinery sector.

Why It Matters

For investors and stakeholders tracking AMTECH SYSTEMS INC, this filing contains several important signals. This 10-Q filing provides investors with the latest quarterly financial data, including revenue, expenses, and balance sheet information, crucial for assessing the company's current performance and financial health. Understanding the details within this report allows stakeholders to evaluate Amtech Systems Inc.'s operational efficiency, debt levels, and overall market position as of the end of the third calendar quarter of 2023.

Risk Assessment

Risk Level: medium — AMTECH SYSTEMS INC shows moderate risk based on this filing. The company's financial health and operational performance are subject to various risks, including customer concentration and geographic concentration, as indicated by the presence of 'us-gaap:GeographicConcentrationRiskMember' and 'us-gaap:CustomerConcentrationRiskMember' in the filing.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-Q to assess the impact of customer and geographic concentration on Amtech Systems Inc.'s future revenue and profitability.

Key Numbers

• 2023-12-31 — Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-02-09 — Filing Date (FILED AS OF DATE)
• 2023-09-30 — Fiscal Year End (FISCAL YEAR END)
• 2023-10-01 to 2023-12-31 — Q1 2024 Reporting Period (Filing details)
• 2022-10-01 to 2022-12-31 — Q1 2023 Reporting Period (Filing details)

Key Players & Entities

• AMTECH SYSTEMS INC (company) — FILER
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 20240209 (date) — FILED AS OF DATE
• ASYS (company) — ticker symbol
• AZ (location) — STATE OF INCORPORATION
• TEMPE (location) — BUSINESS ADDRESS CITY
• QUARTZ ENGINEERING & MATERIALS INC (company) — FORMER COMPANY
• Entrepix Inc (company) — subsidiary

Forward-Looking Statements

• Amtech Systems Inc. will likely continue to face revenue challenges in the near term due to current market conditions. (AMTECH SYSTEMS INC) — medium confidence, target: 2024-09-30
• The company's gross profit margin may remain under pressure if revenue declines persist. (AMTECH SYSTEMS INC) — medium confidence, target: 2024-09-30

FAQ

Risk Factors

• Geographic Concentration Risk [medium — market]: The company's operations and revenue may be significantly impacted by economic, political, or other conditions in specific geographic regions.
• Customer Concentration Risk [medium — market]: A significant portion of the company's revenue may be derived from a small number of customers, making it vulnerable to changes in those customer relationships.

Key Dates

• 2024-02-09: 10-Q Filing — Provides latest quarterly financial information for the period ending 2023-12-31.
• 2023-12-31: Fiscal Period End — End date for the financial reporting period covered by the 10-Q.

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share ASYS NASDAQ Global Select

Filing Documents

• asys-20231231.htm (10-Q) — 1652KB
• asys-ex31_1.htm (EX-31.1) — 17KB
• asys-ex31_2.htm (EX-31.2) — 16KB
• asys-ex32_1.htm (EX-32.1) — 10KB
• asys-ex32_2.htm (EX-32.2) — 10KB
• img250509215_0.jpg (GRAPHIC) — 45KB
• 0000950170-24-013277.txt (&nbsp;) — 8709KB
• asys-20231231.xsd (EX-101.SCH) — 1277KB
• asys-20231231_htm.xml (XML) — 1672KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 4

Condensed Consolidated Financial Statements

Item 1. Condensed Consolidated Financial Statements 4 Condensed Consolidated Balance Sheets December 31, 2023 (Unaudited) and September 30, 2023 4 Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended December 31, 2023 and 2022 5 Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) Three Months Ended December 31, 2023 and 2022 6 Condensed Consolidated Statements of Shareholders' Equity (Unaudited) Three Months Ended December 31, 2023 and 2022 7 Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended December 31, 2023 and 2022 8 Notes to Condensed Consolidated Financial Statements (Unaudited) 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Overview 25 Results of Operations 26 Liquidity and Capital Resources 29 Off-Balance Sheet Arrangements 32 Contractual Obligations 32 Critical Accounting Estimates 32 Impact of Recently Issued Accounting Pronouncements 32

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 33

Controls and Procedures

Item 4. Controls and Procedures 33

OTHER INFORMATION

PART II. OTHER INFORMATION 34

Legal Proceedings

Item 1. Legal Proceedings 34

Risk Factors

Item 1A. Risk Factors 34

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 34

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 35

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 35

Other Information

Item 5. Other Information 35

Exhibits

Item 6. Exhibits 36

SIGNATURES

SIGNATURES 37 2 Cautionary Note Regardin g Forward-Looking Statements Our discussion and analysis in this Quarterly Report on Form 10-Q ("Quarterly Report"), our Annual Report on Form 10-K for the fiscal year ended September 30, 2023 (the "2023 Form 10-K"), our other reports that we file with the SEC, our press releases and in public statements of our officers and corporate spokespersons contain "forward-looking" statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements give our or our officers' current expectations or forecasts of future events. You can also identify forward-looking statements by discussions of strategy, plans or intentions of management. We have tried, wherever possible, to identify such statements by using words such as "may," "plan," "anticipate," "seek," "will," "expect," "intend," "estimate," "believe," "continue," "predict," "potential," "project," "should," "would," "could," "likely," "future," "target," "forecast," "goal," "observe," and "strategy" or the negative thereof or variations thereon or similar terminology relating to the uncertainty of future events or outcomes. Any expectations based on these forward-looking statements are subject to risks and uncertainties and other important factors. Some factors that could cause actual results to differ materially from those anticipated include, among others, future economic conditions, including changes in the markets in which we operate; changes in demand for our services and products; our revenue and operating performance; difficulties in successfully executing our growth initiatives; difficulties in executing on our strategic initiatives with respect to our material and substrate business segment; our ability to effectively integrate our acquisition of Entrepix, Inc., which we acquired in January 2023; the effects of competition in the markets in which we

FINANCI AL INFORMATION

PART I. FINANCI AL INFORMATION

Condensed Consolidated Financial Statements

Item 1. Condensed Consolidated Financial Statements AMTECH SYSTEMS, INC. AND SUBSIDIARIES Condensed Consolida ted Balance Sheets (in thousands, except share data) December 31, 2023 September 30, 2023 Assets (Unaudited) Current Assets Cash and cash equivalents $ 17,033 $ 13,133 Accounts receivable (less allowance for credit losses of $ 83 and $ 146 at December 31, 2023 and September 30, 2023, respectively) 21,403 26,474 Inventories 34,030 34,845 Income taxes receivable 664 632 Other current assets 5,061 6,105 Total current assets 78,191 81,189 Property, Plant and Equipment - Net 9,353 9,695 Right-of-Use Assets - Net 10,541 11,217 Intangible Assets - Net 4,526 6,114 Goodwill 21,261 27,631 Deferred Income Taxes - Net 126 101 Other Assets 1,044 1,074 Total Assets $ 125,042 $ 137,021 Liabilities and Shareholders' Equity Current Liabilities Accounts payable $ 8,545 $ 10,815 Accrued compensation and related taxes 2,652 3,481 Accrued warranty expense 791 965 Other accrued liabilities 1,461 1,551 Current maturities of finance lease liabilities and long-term debt 934 2,265 Current portion of long-term operating lease liabilities 2,292 2,623 Contract liabilities 9,518 8,018 Total current liabilities 26,193 29,718 Finance Lease Liabilities and Long-Term Debt 9,197 8,422 Long-Term Operating Lease Liabilities 8,598 8,894 Income Taxes Payable 1,384 1,575 Other Long-Term Liabilities 49 47 Total Liabilities 45,421 48,656 Commitments and Contingencies (Note 10) Shareholders' Equity Preferred stock; 100,000,000 shares authorized; none issued — — Common stock; $ 0.01 par value; 100,000,000 shares authorized; shares issued and outstanding: 14,190,977 and 14,185,977 at December 31, 2023 and September 30, 2023, respectively 142 142 Additional paid-in capital 127,308 126,963 Accumu

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