NASDAQ:ASYS Amtech Systems Q4 2023 Earnings Report $3.55 +0.03 (+0.85%) As of 04/24/2025 04:00 PM Eastern Earnings History Amtech Systems EPS ResultsActual EPS-$0.23Consensus EPS $0.09Beat/MissMissed by -$0.32One Year Ago EPSN/AAmtech Systems Revenue ResultsActual Revenue$27.71 millionExpected Revenue$35.00 millionBeat/MissMissed by -$7.29 millionYoY Revenue GrowthN/AAmtech Systems Announcement DetailsQuarterQ4 2023Date12/14/2023TimeN/AConference Call DateWednesday, December 13, 2023Conference Call Time5:00PM ETUpcoming EarningsAmtech Systems' Q2 2025 earnings is scheduled for Tuesday, May 6, 2025, with a conference call scheduled on Wednesday, May 7, 2025 at 5:00 PM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Annual Report (10-K)Earnings HistoryCompany ProfilePowered by Amtech Systems Q4 2023 Earnings Call TranscriptProvided by QuartrDecember 13, 2023 ShareLink copied to clipboard.There are 5 speakers on the call. Operator00:00:00Good day, and welcome to the Amtech Systems Business Update Conference Call. Please note that this event is being recorded. I would now like to turn the call over to Michael Finari of Sapphire Investment Relations. Speaker 100:00:14Good afternoon, and thank you for joining us for Amtech Systems Business Update Conference Call. With me on the call today are Bob Daigle, Chairman and Chief Executive Officer Lisa Gibbs, Chief Financial Officer and Paul Lancaster, Vice President of Sales and Customer Service. After close of market today, Amtech released a summary of its revenue and business status as of September 30, 2023. The press release is posted on the company's website at www.amteksystems.com in the Investors section. Before we begin, I'd like to remind everyone that the Safe Harbor disclaimer in our public filings covers this call and our webcast. Speaker 100:00:52Some of the comments to be made during today's call will contain forward looking statements and assumptions that are subject to risks and uncertainties, including, but not limited to, Those contained in our SEC filings, all of which are posted within the Investors section of our corporate website. The company assumes no obligation to update any such forward looking statements. You are cautioned not to place undue reliance on forward looking statements, which speak only as of today. These statements are not a guarantee of Our changes in the technologies used by customers and competitors change in volatility and the demand for products the Ongoing logistics, supply chain and labor challenges, capital allocation plans, the COVID-nineteen pandemic, our ability to effectively integrate our acquisition of Intrepix, Inc, which we acquired in January 2023. Other risk factors are detailed in our SEC filings during Form 10 ks and Forms 10 Q. Speaker 100:02:06I will now turn the call over to Amtech's Chief Executive Officer, Bob Daigle. Speaker 200:02:12Thank you, Mike. Good afternoon, everyone, and thank you for joining our conference call. In today's call, we will provide business update. Reporting of our full financial results will be delayed due to the complexity and judgment involved in the valuation and impairment analysis that's underway. I'd like to share a few observations I've made about Amtech in speaking with both customers and stakeholders over the past 4 months and discuss the subsequent actions we are taking. Speaker 200:02:42Amtech is a company with well recognized brands, Great products and technologies, dedicated and talented employees and best in class service capabilities, which support the diverse customer base. Our company has tremendous promise and is well positioned to capitalize on several secular trends that will drive demand for our equipment and consumables. The advanced mobility market, including electric vehicles, is expected to drive growth not only for semiconductors and subsystems within the vehicles, but also for battery cooling systems and a broad array of electric vehicle power modules, which our tools serve. Within the broader semiconductor market, our tools are used for advanced packaging of processors for high performance computing And artificial intelligence applications. And across the electric electronics industry as a whole, The pandemic and global tensions have made it abundantly clear that more resilient semiconductor As we evaluate the strategic roadmap for Amtech, we are focusing on those areas where we have strong differentiation and are able to add As a part of this evaluation, we have come to 3 realizations. Speaker 200:04:16First, technology, innovation and customer partnerships remain core to what sets Amtech apart in the industry. Often the applications we target are amongst the most difficult in the industry, requiring not only industry leading performance and precision, but also a support organization well equipped to assist customers as they refine their own manufacturing processes. 2nd, as we dug in deeper into the product set Amtech currently offers, we have realized some products are not This includes products that have matured and provide limited profit opportunity as well as other products requiring significant investments to deliver capabilities that are not yet needed. 3rd, the past 3 years have demonstrated to us the need to be nimble both in our supply chains and manufacturing operations to have the ability to quickly adapt to rapid cyclical changes in the industries we serve. Going forward, we will continue to invest in the products and customer support organizations within the semiconductor segment where Amtech has the Strongest differentiation in the market. Speaker 200:05:36This includes equipment utilized for advanced packaging, electronic assembly, EV Battery Cooling Systems and Power Semiconductor substrates. While the Advanced Packaging and Electronic Assembly Business Has been meaningfully impacted by the slowdown in the semiconductor market, our tools continue to be very highly regarded. We are confident that as markets recover, we will see orders rebound commensurate with our position, with further opportunity to gain share as applications such as advanced packaging for artificial intelligence processors continue to gain greater traction. Within the substrate and materials segment, we similarly see a very strong opportunity for consumables as well as our cleaning tools, chemical mechanical polishing equipment upgrades and our CMP Foundry Services. Related to each of these product sets, our goal going forward is to ensure that we are tightly aligned with our customers. Speaker 200:06:44By understanding the problems they are trying to solve and developing our own product roadmaps to address these needs, we will be well positioned for growth. As we evaluated the products in the material and substrate portfolio, we came to the conclusion that our legacy polishing As a result, we have notified customers that we will cease manufacturing of these products. With regards to the latest version of these machines, which we have been testing with silicon carbide customers, We have realized that the market is not yet ready for the capabilities we offer. With many players still in the early stages of refining their own The market for high volume batch tools has not materialized along the line timeline that we originally estimated. Unlike our legacy polishing machines, however, we are moving this technology to Intrepix, where we will continue to provide Operationally, as we discussed on prior calls, We have begun to qualify 3rd party contract manufacturers to add incremental capacity for select products where we have high demand and to optimize our cost structure. Speaker 200:08:22For example, in the Q4, we shipped over a dozen high temperature belt furnaces that leverage significant content from manufacturing partners. As we look ahead, our manufacturing operation This will allow us to improve profitability and our ability to respond quickly to changes in demand. While we are exposed to several large market opportunities, which we believe will drive strong growth in the mid to long term, We also need to ensure that Amtech can generate sufficient profitability and cash flow even in downturn conditions like we are After taking time to evaluate the performance and opportunities for each of our businesses, I made the decision to take several actions to reduce fixed costs and expenses. These actions are To provide investors with a framework on how we view the opportunity ahead, we are rolling out a long term target model Of $180,000,000 in annual revenue with 18% EBITDA margins. Our top line target is based on several factors including a return to cyclical growth in our core markets, Continued growth in emerging opportunities such as advanced mobility applications and the potential for additional inorganic opportunities. Speaker 200:10:09While today we are inwardly focused on optimizing our existing operations, Over time, inorganic investments will remain a part of our strategy. Related to the associated EBITDA margin at these levels, We believe leveraging an outsourcing model where appropriate will help us generate better margins while limiting volatility. We will scrutinize all investments to ensure that they generate strong returns on invested capital. In closing, Amtech is a unique company with differentiated exposure to a number of high growth markets. Our mission at this stage is to fully capitalize on these growth opportunities, while addressing operational and supply chain issues to With that, I will turn it over to Lisa for further details on the Q4. Speaker 300:11:07Thank you, Bob. We closed fiscal 2023 with revenues of $113,300,000 compared to $106,300,000 in fiscal 2022. In a challenging demand environment, our acquisition of Intrepix Completed in January of 2023 contributed to this increase in year over year revenues. Turning to our quarterly results. Net revenues decreased 10% sequentially and 14% from the Q4 of fiscal 2022. Speaker 300:11:39The decrease from prior year is primarily attributable to lower shipments from our Shanghai manufacturing facility, partially offset by an increase in shipments of our high temperature belt furnaces and the addition of Entrepix in fiscal 2023. The sequential decrease is primarily due to a decrease in shipments across all of our business segments. We are experiencing lower bookings in multiple areas of our business due to the softness Due to the prolonged downturn in general economic conditions in the semiconductor industry And delays in the adoption of next gen polishing tools, we anticipate an intangible asset impairment charge in our Material and Substrate segment as of September 30, Due to the complexity and judgment involved in the valuation and impairment analyses, We are working with our external auditors to finalize the audit procedures. When complete, the company will issue a press release with our Q4 and full year fiscal 2023 results as well as file our annual report on Form 10 ks. Unrestricted cash and cash equivalents at September 30, 2023 percent of our cash balance as of September 30, 2023 is held in the United States. Speaker 300:13:05We are clearly in a very challenging demand environment for our business. As we disclosed in the 8 ks that was released on Monday, we have entered into a forbearance agreement with our bank. The purpose and intention of this agreement is to give us the runway we need and access to our revolving line of credit until demand picks up. We are making swift and decisive fixed cost reductions in our business with a goal to get to EBITDA breakeven as quickly as possible to give us the ability to weather this prolonged downturn and be ready when the growth returns. For context, we estimate the actions we have already taken will for further cost savings. Speaker 300:13:51The timing of these actions occurred throughout this December quarter, our 1st fiscal quarter of 2024. Therefore, we expect the full benefit of the savings to be realized in our 2nd fiscal quarter of 2024. These steps will significantly improve results and enhance profitability through market cycles. Now turning to our outlook. For The 1st fiscal quarter ending December 31, 2023, we expect revenues in the range of $21,000,000 to $24,000,000 with EBITDA nominally negative. Speaker 300:14:25Although the near term outlook for revenue and earnings is challenging, we remain confident that the long term outlook is strong for both our consumables and equipment serving advanced mobility and advanced packaging applications. The expense I mentioned earlier will significantly improve results and enhance profitability through market cycles. Operating results Can be significantly impacted positively or negatively by the timing of orders, system shipments, Logistical challenges and the financial results of semiconductor manufacturers. Additionally, the semiconductor equipment industries can be cyclical and inherently impacted by changes in market demand. Actual results may differ materially in the weeks months ahead. Speaker 300:15:10A portion of Amtech's results is denominated in RMBs, a Chinese currency. The outlook I provided is based on an assumed exchange rate to differ from expectations. I will now turn the call over to the operator for questions. Operator? Operator00:15:34Thank you. Ladies and gentlemen, at this time, we will be conducting a question and answer From the line of Mark Miller with Benchmark. Please proceed with your question. Speaker 400:16:24Yes. I'd like to ask a couple of questions about the recent forbearance agreement. It appears that you're reducing the size of your term loan and moving the balance to a larger revolver. Is that correct? Speaker 300:16:36That is correct, Mark. Speaker 400:16:38Now why did you do this? Why didn't you do this before violating the covenant? I'm just curious. Speaker 300:16:46We've been working with the bank and the timing kind of worked out with our Q4 results To work through this, obviously, it takes some time to work through everything and unfortunately, we weren't able to get it done before the Q4 results. But the reason for that is it gives us the lower monthly term payments, which helps with our monthly cash flows, as well as increased access to our revolver. The other part of it is that the revolver expired in January of 'twenty four and This extends it into January of 25. Speaker 400:17:25Okay. It also appears that the Moving term balance on the revolver, the former maturity is going from 2028 to 2025, is that correct? Speaker 300:17:38So the term loan is moving from 2028 to 2029 and then the revolver was maturing in 2024 and now it's in January of Speaker 400:17:4725. Okay. There's no so I guess there's no real change in liquidity. Is this confirmed? Speaker 300:17:56That is confirmed. We're working on getting to cash breakeven and managing during this cycle. And you will have access to that revolver as demand returns if we need access to working capital. So we're going to just continue to Strive for that breakeven so that we can stay in this spot until things demand comes back. Speaker 400:18:20And one final question, what is the margin paid on the floating rate and the new interest payment? Speaker 300:18:27My estimate is the interest rate will be right around 10%. Speaker 400:18:31Okay. Just one other question. In terms of your backlog, do you have you or do you anticipate having to remove any of The orders from your backlog? Speaker 300:18:43We've not had cancellations. We've had a couple of customer push outs. At this point, we've not had cancellations. We've talked about our backlog in the past and the importance of shipping it and bringing it down. So that's part of what we saw this quarter with our contract manufacturing partner helping us get more units out the door. Speaker 400:19:07Okay. Thank you. Speaker 300:19:09Thanks, Mark. Operator00:19:25There are no further questions in the queue. I'd like to hand the call back to management for closing remarks. Speaker 200:19:31Yes. This is Bob Daigle again. I'd just like to thank everyone for joining our conference call today and we'll be happy to once we file Okay. Happy to jump on calls with folks to have more discussions. Operator00:19:48Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallAmtech Systems Q4 202300:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K)Annual report(10-K) Amtech Systems Earnings HeadlinesAmtech Systems (NASDAQ:ASYS) investors are sitting on a loss of 62% if they invested three years agoApril 20, 2025 | finance.yahoo.comAmtech Stock Plummets 31% YTD: Should Investors Hold or Fold?April 14, 2025 | msn.comTrump to unlock 15-figure fortune for America (May 3rd) ?We were shown this map by former Presidential Advisor, Jim Rickards, one of the most politically connected men in America. Rickards has spent his fifty-year career in the innermost circles of the U.S. government and banking. And he believes Trump could soon release this frozen asset to the public. April 25, 2025 | Paradigm Press (Ad)Amtech cuts Q2 revenue view to $15M-$16M from $21M-$23MApril 10, 2025 | markets.businessinsider.comAmtech Systems Shares Drop 13% After 2Q Outlook CutApril 9, 2025 | marketwatch.comAmtech Provides Second Quarter Fiscal 2025 Financial Guidance UpdateApril 9, 2025 | businesswire.comSee More Amtech Systems Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Amtech Systems? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Amtech Systems and other key companies, straight to your email. Email Address About Amtech SystemsAmtech Systems (NASDAQ:ASYS) 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 through Semiconductor and Material and Substrate segments. The Semiconductor segment designs, manufactures, sells, and services thermal processing equipment, including solder reflow ovens, horizontal diffusion furnaces, and custom high-temp belt furnaces for use by semiconductor, electronics, and electro/mechanical assembly manufacturers; and diffusion and reflow thermal systems, as well as wafer cleaning equipment and related services. 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. It also offers substrate products comprising of double-sided wafer cleaning system, entegrity head tester, substrate carrier, substrate polishing templates, double-sided lapping and polishing machines, single-sided polisher, and substrate process chemicals. The company sells its products through sales personnel, as well as a network of independent sales representatives and distributors. Amtech Systems, Inc. was incorporated in 1981 and is headquartered in Tempe, Arizona.View Amtech Systems ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Seismic Shift at Intel: Massive Layoffs Precede Crucial EarningsRocket Lab Lands New Contract, Builds Momentum Ahead of EarningsAmazon's Earnings Could Fuel a Rapid Breakout Tesla Earnings Miss, But Musk Refocuses and Bulls ReactQualcomm’s Range Narrows Ahead of Earnings as Bulls Step InWhy It May Be Time to Buy CrowdStrike Stock Heading Into EarningsCan IBM’s Q1 Earnings Spark a Breakout for the Stock? Upcoming Earnings Cadence Design Systems (4/28/2025)Welltower (4/28/2025)Waste Management (4/28/2025)AstraZeneca (4/29/2025)Booking (4/29/2025)DoorDash (4/29/2025)Honeywell International (4/29/2025)Mondelez International (4/29/2025)PayPal (4/29/2025)Regeneron Pharmaceuticals (4/29/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. Start Your 30-Day Trial MarketBeat All Access Features Best-in-Class Portfolio Monitoring Get personalized stock ideas. Compare portfolio to indices. Check stock news, ratings, SEC filings, and more. Stock Ideas and Recommendations See daily stock ideas from top analysts. Receive short-term trading ideas from MarketBeat. Identify trending stocks on social media. Advanced Stock Screeners and Research Tools Use our seven stock screeners to find suitable stocks. Stay informed with MarketBeat's real-time news. Export data to Excel for personal analysis. Sign in to your free account to enjoy these benefits In-depth profiles and analysis for 20,000 public companies. Real-time analyst ratings, insider transactions, earnings data, and more. Our daily ratings and market update email newsletter. Sign in to your free account to enjoy all that MarketBeat has to offer. Sign In Create Account Your Email Address: Email Address Required Your Password: Password Required Log In or Sign in with Facebook Sign in with Google Forgot your password? Your Email Address: Please enter your email address. Please enter a valid email address Choose a Password: Please enter your password. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. Create My Account (Free) or Sign in with Facebook Sign in with Google By creating a free account, you agree to our terms of service. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
There are 5 speakers on the call. Operator00:00:00Good day, and welcome to the Amtech Systems Business Update Conference Call. Please note that this event is being recorded. I would now like to turn the call over to Michael Finari of Sapphire Investment Relations. Speaker 100:00:14Good afternoon, and thank you for joining us for Amtech Systems Business Update Conference Call. With me on the call today are Bob Daigle, Chairman and Chief Executive Officer Lisa Gibbs, Chief Financial Officer and Paul Lancaster, Vice President of Sales and Customer Service. After close of market today, Amtech released a summary of its revenue and business status as of September 30, 2023. The press release is posted on the company's website at www.amteksystems.com in the Investors section. Before we begin, I'd like to remind everyone that the Safe Harbor disclaimer in our public filings covers this call and our webcast. Speaker 100:00:52Some of the comments to be made during today's call will contain forward looking statements and assumptions that are subject to risks and uncertainties, including, but not limited to, Those contained in our SEC filings, all of which are posted within the Investors section of our corporate website. The company assumes no obligation to update any such forward looking statements. You are cautioned not to place undue reliance on forward looking statements, which speak only as of today. These statements are not a guarantee of Our changes in the technologies used by customers and competitors change in volatility and the demand for products the Ongoing logistics, supply chain and labor challenges, capital allocation plans, the COVID-nineteen pandemic, our ability to effectively integrate our acquisition of Intrepix, Inc, which we acquired in January 2023. Other risk factors are detailed in our SEC filings during Form 10 ks and Forms 10 Q. Speaker 100:02:06I will now turn the call over to Amtech's Chief Executive Officer, Bob Daigle. Speaker 200:02:12Thank you, Mike. Good afternoon, everyone, and thank you for joining our conference call. In today's call, we will provide business update. Reporting of our full financial results will be delayed due to the complexity and judgment involved in the valuation and impairment analysis that's underway. I'd like to share a few observations I've made about Amtech in speaking with both customers and stakeholders over the past 4 months and discuss the subsequent actions we are taking. Speaker 200:02:42Amtech is a company with well recognized brands, Great products and technologies, dedicated and talented employees and best in class service capabilities, which support the diverse customer base. Our company has tremendous promise and is well positioned to capitalize on several secular trends that will drive demand for our equipment and consumables. The advanced mobility market, including electric vehicles, is expected to drive growth not only for semiconductors and subsystems within the vehicles, but also for battery cooling systems and a broad array of electric vehicle power modules, which our tools serve. Within the broader semiconductor market, our tools are used for advanced packaging of processors for high performance computing And artificial intelligence applications. And across the electric electronics industry as a whole, The pandemic and global tensions have made it abundantly clear that more resilient semiconductor As we evaluate the strategic roadmap for Amtech, we are focusing on those areas where we have strong differentiation and are able to add As a part of this evaluation, we have come to 3 realizations. Speaker 200:04:16First, technology, innovation and customer partnerships remain core to what sets Amtech apart in the industry. Often the applications we target are amongst the most difficult in the industry, requiring not only industry leading performance and precision, but also a support organization well equipped to assist customers as they refine their own manufacturing processes. 2nd, as we dug in deeper into the product set Amtech currently offers, we have realized some products are not This includes products that have matured and provide limited profit opportunity as well as other products requiring significant investments to deliver capabilities that are not yet needed. 3rd, the past 3 years have demonstrated to us the need to be nimble both in our supply chains and manufacturing operations to have the ability to quickly adapt to rapid cyclical changes in the industries we serve. Going forward, we will continue to invest in the products and customer support organizations within the semiconductor segment where Amtech has the Strongest differentiation in the market. Speaker 200:05:36This includes equipment utilized for advanced packaging, electronic assembly, EV Battery Cooling Systems and Power Semiconductor substrates. While the Advanced Packaging and Electronic Assembly Business Has been meaningfully impacted by the slowdown in the semiconductor market, our tools continue to be very highly regarded. We are confident that as markets recover, we will see orders rebound commensurate with our position, with further opportunity to gain share as applications such as advanced packaging for artificial intelligence processors continue to gain greater traction. Within the substrate and materials segment, we similarly see a very strong opportunity for consumables as well as our cleaning tools, chemical mechanical polishing equipment upgrades and our CMP Foundry Services. Related to each of these product sets, our goal going forward is to ensure that we are tightly aligned with our customers. Speaker 200:06:44By understanding the problems they are trying to solve and developing our own product roadmaps to address these needs, we will be well positioned for growth. As we evaluated the products in the material and substrate portfolio, we came to the conclusion that our legacy polishing As a result, we have notified customers that we will cease manufacturing of these products. With regards to the latest version of these machines, which we have been testing with silicon carbide customers, We have realized that the market is not yet ready for the capabilities we offer. With many players still in the early stages of refining their own The market for high volume batch tools has not materialized along the line timeline that we originally estimated. Unlike our legacy polishing machines, however, we are moving this technology to Intrepix, where we will continue to provide Operationally, as we discussed on prior calls, We have begun to qualify 3rd party contract manufacturers to add incremental capacity for select products where we have high demand and to optimize our cost structure. Speaker 200:08:22For example, in the Q4, we shipped over a dozen high temperature belt furnaces that leverage significant content from manufacturing partners. As we look ahead, our manufacturing operation This will allow us to improve profitability and our ability to respond quickly to changes in demand. While we are exposed to several large market opportunities, which we believe will drive strong growth in the mid to long term, We also need to ensure that Amtech can generate sufficient profitability and cash flow even in downturn conditions like we are After taking time to evaluate the performance and opportunities for each of our businesses, I made the decision to take several actions to reduce fixed costs and expenses. These actions are To provide investors with a framework on how we view the opportunity ahead, we are rolling out a long term target model Of $180,000,000 in annual revenue with 18% EBITDA margins. Our top line target is based on several factors including a return to cyclical growth in our core markets, Continued growth in emerging opportunities such as advanced mobility applications and the potential for additional inorganic opportunities. Speaker 200:10:09While today we are inwardly focused on optimizing our existing operations, Over time, inorganic investments will remain a part of our strategy. Related to the associated EBITDA margin at these levels, We believe leveraging an outsourcing model where appropriate will help us generate better margins while limiting volatility. We will scrutinize all investments to ensure that they generate strong returns on invested capital. In closing, Amtech is a unique company with differentiated exposure to a number of high growth markets. Our mission at this stage is to fully capitalize on these growth opportunities, while addressing operational and supply chain issues to With that, I will turn it over to Lisa for further details on the Q4. Speaker 300:11:07Thank you, Bob. We closed fiscal 2023 with revenues of $113,300,000 compared to $106,300,000 in fiscal 2022. In a challenging demand environment, our acquisition of Intrepix Completed in January of 2023 contributed to this increase in year over year revenues. Turning to our quarterly results. Net revenues decreased 10% sequentially and 14% from the Q4 of fiscal 2022. Speaker 300:11:39The decrease from prior year is primarily attributable to lower shipments from our Shanghai manufacturing facility, partially offset by an increase in shipments of our high temperature belt furnaces and the addition of Entrepix in fiscal 2023. The sequential decrease is primarily due to a decrease in shipments across all of our business segments. We are experiencing lower bookings in multiple areas of our business due to the softness Due to the prolonged downturn in general economic conditions in the semiconductor industry And delays in the adoption of next gen polishing tools, we anticipate an intangible asset impairment charge in our Material and Substrate segment as of September 30, Due to the complexity and judgment involved in the valuation and impairment analyses, We are working with our external auditors to finalize the audit procedures. When complete, the company will issue a press release with our Q4 and full year fiscal 2023 results as well as file our annual report on Form 10 ks. Unrestricted cash and cash equivalents at September 30, 2023 percent of our cash balance as of September 30, 2023 is held in the United States. Speaker 300:13:05We are clearly in a very challenging demand environment for our business. As we disclosed in the 8 ks that was released on Monday, we have entered into a forbearance agreement with our bank. The purpose and intention of this agreement is to give us the runway we need and access to our revolving line of credit until demand picks up. We are making swift and decisive fixed cost reductions in our business with a goal to get to EBITDA breakeven as quickly as possible to give us the ability to weather this prolonged downturn and be ready when the growth returns. For context, we estimate the actions we have already taken will for further cost savings. Speaker 300:13:51The timing of these actions occurred throughout this December quarter, our 1st fiscal quarter of 2024. Therefore, we expect the full benefit of the savings to be realized in our 2nd fiscal quarter of 2024. These steps will significantly improve results and enhance profitability through market cycles. Now turning to our outlook. For The 1st fiscal quarter ending December 31, 2023, we expect revenues in the range of $21,000,000 to $24,000,000 with EBITDA nominally negative. Speaker 300:14:25Although the near term outlook for revenue and earnings is challenging, we remain confident that the long term outlook is strong for both our consumables and equipment serving advanced mobility and advanced packaging applications. The expense I mentioned earlier will significantly improve results and enhance profitability through market cycles. Operating results Can be significantly impacted positively or negatively by the timing of orders, system shipments, Logistical challenges and the financial results of semiconductor manufacturers. Additionally, the semiconductor equipment industries can be cyclical and inherently impacted by changes in market demand. Actual results may differ materially in the weeks months ahead. Speaker 300:15:10A portion of Amtech's results is denominated in RMBs, a Chinese currency. The outlook I provided is based on an assumed exchange rate to differ from expectations. I will now turn the call over to the operator for questions. Operator? Operator00:15:34Thank you. Ladies and gentlemen, at this time, we will be conducting a question and answer From the line of Mark Miller with Benchmark. Please proceed with your question. Speaker 400:16:24Yes. I'd like to ask a couple of questions about the recent forbearance agreement. It appears that you're reducing the size of your term loan and moving the balance to a larger revolver. Is that correct? Speaker 300:16:36That is correct, Mark. Speaker 400:16:38Now why did you do this? Why didn't you do this before violating the covenant? I'm just curious. Speaker 300:16:46We've been working with the bank and the timing kind of worked out with our Q4 results To work through this, obviously, it takes some time to work through everything and unfortunately, we weren't able to get it done before the Q4 results. But the reason for that is it gives us the lower monthly term payments, which helps with our monthly cash flows, as well as increased access to our revolver. The other part of it is that the revolver expired in January of 'twenty four and This extends it into January of 25. Speaker 400:17:25Okay. It also appears that the Moving term balance on the revolver, the former maturity is going from 2028 to 2025, is that correct? Speaker 300:17:38So the term loan is moving from 2028 to 2029 and then the revolver was maturing in 2024 and now it's in January of Speaker 400:17:4725. Okay. There's no so I guess there's no real change in liquidity. Is this confirmed? Speaker 300:17:56That is confirmed. We're working on getting to cash breakeven and managing during this cycle. And you will have access to that revolver as demand returns if we need access to working capital. So we're going to just continue to Strive for that breakeven so that we can stay in this spot until things demand comes back. Speaker 400:18:20And one final question, what is the margin paid on the floating rate and the new interest payment? Speaker 300:18:27My estimate is the interest rate will be right around 10%. Speaker 400:18:31Okay. Just one other question. In terms of your backlog, do you have you or do you anticipate having to remove any of The orders from your backlog? Speaker 300:18:43We've not had cancellations. We've had a couple of customer push outs. At this point, we've not had cancellations. We've talked about our backlog in the past and the importance of shipping it and bringing it down. So that's part of what we saw this quarter with our contract manufacturing partner helping us get more units out the door. Speaker 400:19:07Okay. Thank you. Speaker 300:19:09Thanks, Mark. Operator00:19:25There are no further questions in the queue. I'd like to hand the call back to management for closing remarks. Speaker 200:19:31Yes. This is Bob Daigle again. I'd just like to thank everyone for joining our conference call today and we'll be happy to once we file Okay. Happy to jump on calls with folks to have more discussions. Operator00:19:48Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.Read morePowered by