Amtech Systems, Inc. a global supplier of production and automation systems and related supplies for the manufacture of solar cells, semiconductors, and sapphire and silicon wafers, reported results for its fourth quarter and fiscal year ending September 30, 2013.
Fourth Quarter 2013 Financial Highlights:
Net revenue of $6.9 million
Bookings of $8.4 million
Backlog of $26.8 million at September 30, 2013
Net loss of $1.7 million, or $0.18 per share
Unrestricted cash of $37.2 million at September 30, 2013
Fiscal Year 2013 Financial Highlights:
Net revenue of $34.8 million Solar revenue of $17.4 million Bookings of $43.6 million
Net loss of $20.1 million, or $2.11 per share
Mr. Fokko Pentinga, Chief Executive Officer of Amtech, commented, "even though fiscal 2013 was a challenging year, progress was made at Amtech. We continued to restructure our global operations and intensified our efforts on developing new products and higher efficiency technology solutions to gain a competitive edge over our competitors. We introduced a new solar tool, a PECVD system, which doubles our served available market, and we received our first production order. Also, in June 2013, we announced the receipt of a multi-million dollar order for our advance diffusion and PECVD equipment to be used in Nexolon USA's facility in Texas."
"Although demand is soft, activity in the market has increased. Discussions with current and potential customers further validate that our technologies strongly position Amtech as a global technology solutions company. We are increasingly optimistic that the second half of
2014 will reflect a renewed demand for our products."
Net revenue for the fourth quarter of fiscal 2013 totaled $6.9 million compared to $10.4 million in the previous quarter and $10.9 million in the fourth quarter of fiscal 2012. The change reflects lower shipments due to the continued unfavorable market conditions within the solar and semiconductor industries, partially offset by favorable recognition of previously-deferred revenue resulting from increased customer acceptances.
Total customer orders were $8.4 million ($0.1 million solar) in the fourth quarter of fiscal 2013, compared to total orders of $5.6 million ($2.1 million solar) in the same period a year ago.
At September 30, 2013, the Company's total order backlog was $26.8 million, including $17.1 million in solar orders and deferred revenue. The effect of foreign exchange on backlog during the September quarter was a positive $0.6 million. Backlog includes deferred revenue and customer orders that are expected to ship within the next 12 months.
Gross margin in the fourth quarter of fiscal 2013 was 46%, reflecting a high percentage of net revenue resulting from recognition of previously-deferred revenue. The portion of revenue recognized upon customer acceptance generally has a significantly higher gross margin percentage. In the same quarter a year ago, and in the third quarter of fiscal 2013, gross margin was negative, due primarily to significant inventory write-downs.
Selling, general and administrative (SG&A) expenses in the fourth quarter of fiscal 2013 were $3.2 million compared to $5.4 million in the preceding quarter, a 41% reduction. The decrease in SG&A expenses was due, in part, to lower stock compensation expense. In the June quarter of fiscal 2013, stock compensation expense was higher due to the acceleration of vesting and cancellation of certain stock options. Additionally, the fourth quarter reflects lower commissions and shipping costs related to lower revenues as well as cost reductions resulting from corporate-wide cost control initiatives.
Research and Development (R&D) expense was $1.5 million in the fourth quarter compared to $1.9 million in preceding quarter, primarily due to cost controls on the Company's solar projects.
Depreciation and amortization in the fourth quarter of fiscal 2013 was $0.7 million compared to $0.6 million in the third quarter of 2013. Net loss for the fourth quarter of fiscal 2013 was $1.7 million, or $0.18 per share, compared to a net loss of $12.1 million, or $1.27 per share, in the preceding quarter and a net loss of $14.1 million or $1.49 per share in the fourth quarter of fiscal 2012.
Total unrestricted cash and cash equivalents at September 30, 2013 were $37.2 million, compared to $38.8 million at June 30, 2013, reflecting a large tax payment, partially offset by a significant customer deposit.
