Amtech Systems, Inc. ("Amtech") (NASDAQ:ASYS), a manufacturer of equipment and consumables for semiconductor fabrication and packaging, today reported results for its third quarter ended June 30, 2025.

Third Quarter Fiscal 2025 Financial and Operational Results:

Net revenue of $19.6 million
Cash of $15.6 million
Cash provided by operations of $2.5 million
GAAP net income of $0.1 million
Non-GAAP net income of $0.9 million ⁽¹⁾
Adjusted EBITDA of $2.2 million ⁽¹⁾
Customer orders of $21.7 million
Backlog of $21.2 million

(1) See GAAP to non-GAAP and EBITDA and Adjusted EBITDA reconciliation in schedules following this release.

"I'm pleased to report that our third quarter performance was above expectations, with revenue of $19.6 million, an increase of 26% over the prior quarter. Both our Thermal Processing Solutions and our Semiconductor Fabrication Solutions segments exceeded forecasts, reflecting ongoing strength in the advanced packaging market and stabilizing demand within the mature-node semiconductor market. We have made significant progress optimizing our operating model over the past 18 months, resulting in $13 million in annualized savings. Looking ahead, we believe the structural changes we've made to improve operating leverage and our focused investments in product and application development position us well to deliver profitable growth in the years ahead," commented Mr. Bob Daigle, Chief Executive Officer of Amtech.

GAAP and Non-GAAP Financial Results

(in millions, except per share amounts)	Q3			Q2			Q3			9 Months			9 Months
	FY 2025			FY 2025			FY 2024			2025			2024
Revenues, net	$	19.6		$	15.6		$	26.7		$	59.5		$	77.1
Gross profit (loss)	$	9.1		$	(0.3	)	$	9.8		$	18.2		$	26.4
Gross margin		46.7	%		-2.1	%		36.5	%		30.5	%		34.3	%
Non-GAAP gross profit ⁽¹⁾	$	9.1		$	5.7		$	9.8		$	24.2		$	27.7
Non-GAAP gross margin ⁽¹⁾		46.7	%		36.3	%		36.5	%		40.6	%		36.0	%

GAAP net income (loss)	$	0.1		$	(31.8	)	$	0.4		$	(31.4	)	$	(8.0	)
GAAP net income (loss) per diluted share	$	0.01		$	(2.23	)	$	0.03		$	(2.20	)	$	(0.56	)
Non-GAAP net income (loss) ⁽¹⁾	$	0.9		$	(2.3	)	$	1.1		$	(0.6	)	$	0.3
Non-GAAP net income (loss) per diluted share⁽¹⁾	$	0.06		$	(0.16	)	$	0.08		$	(0.04	)	$	0.02

(1) See GAAP to non-GAAP reconciliation in schedules following this release.

Net revenues increased 26% sequentially from the prior quarter, driven primarily by strong demand in Asia for reflow ovens used in AI applications. Revenues decreased 27% compared to the same period last year, largely due to continued weakness in the mature node semiconductor market, which led to lower sales of wafer cleaning equipment, diffusion systems, and high-temperature furnaces. This decline was partially offset by increased sales of advanced packaging solutions.

GAAP gross margin increased by $9.5 million sequentially from the prior quarter, primarily due to the absence of $6.0 million in non-cash inventory write-downs recorded last quarter. Compared to the same period last year, gross margin decreased by $0.6 million, driven by lower sales volume resulting from continued weak demand in the mature node semiconductor market. This quarter's gross margin benefited from a $1.0 million Employee Retention Credit ("ERC") refund. Excluding the ERC, normalized gross margin was 41.5%, a solid improvement from 36.5% in the third quarter of fiscal 2024.

Selling, General & Administrative ("SG&A") expenses increased $0.3 million sequentially from last quarter and decreased $0.8 million compared to the same prior year period. The increase from last quarter is primarily due to an increase in third party consulting costs. The decrease compared to the same prior year period is primarily due to the ERC refund and cost reductions attributed to actions we have taken to reduce our fixed cost structure. We also saw lower commission expense from the reduced sales volume.

Research, Development, and Engineering expenses declined by $0.5 million quarter-over-quarter, primarily due to project-specific purchasing timing and the benefit of the ERC refund. Compared to the same period last year, expenses decreased $0.3 million, reflecting the ERC benefit and non-recurring development efforts within our Semiconductor Fabrication Solutions segment.

GAAP net income for the third quarter of fiscal 2025 was $0.1 million, or 1 cents per share. This compares to GAAP net loss of $31.8 million, or 2.23 cents per share for the preceding quarter and GAAP net income of $0.4 million, or 3 cents per share, for the third quarter of fiscal 2024.

Non-GAAP net income for the third quarter of fiscal 2025 was $0.9 million, or 6 cents per share. This compares to non-GAAP net loss of $2.3 million, or 16 cents per share for the preceding quarter and non-GAAP net income of $1.1 million, or 8 cents per share, for the third quarter of fiscal 2024.

Unrestricted cash and cash equivalents at June 30, 2025, were $15.6 million, compared to $11.1 million at September 30, 2024, due primarily to our focus on operational cash generation, strong accounts receivable collections from customers, and employee retention credit.

In discussing financial results for the three and nine months ended June 30, 2025 and 2024 and the three months ended March 31, 2025, in this press release, the Company refers to certain financial measures that are adjusted from the financial results prepared in accordance with United States generally accepted accounting principles ("GAAP"). All non-GAAP amounts exclude certain adjustments for stock compensation expense, severance expense, expenses related to the discontinued product line, gain on the sale of our Arizona headquarters, moving expenses, amortization of acquired intangible assets, acquisition expenses, goodwill and intangible asset impairment, inventory write-down of mature node semiconductor products, and income tax benefit related to our acquisition of Entrepix, Inc. A tabular reconciliation of financial measures prepared in accordance with GAAP to the non-GAAP financial measures is included at the end of this press release.

Outlook

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 and months ahead.

For the fiscal fourth quarter ending September 30, 2025, we expect revenues in the range of $17 to $19 million. Growth in AI related equipment sales in our Thermal Processing Solutions segment is anticipated to partially offset continued softness in mature node semiconductor product lines. With the benefit of previously implemented structural and operational cost reductions, we expect to deliver improved operating leverage, resulting in adjusted EBITDA margins in the mid-single digits. We remain focused on driving further efficiency gains and cost optimization across Amtech's operations, positioning the company to expand margins and generate more resilient profitability going forward.

A portion of Amtech's results is denominated in Renminbis, a Chinese currency. The outlook provided in this press release is based on an assumed exchange rate between the United States Dollar and the Renminbi. Changes in the value of the Renminbi in relation to the United States Dollar could cause actual results to differ from expectations.

Conference Call

Amtech Systems will host a conference call at 5:00 pm ET on Wednesday, August 6, 2025 to discuss our fiscal third quarter financial results. The call will be available to interested parties by dialing 1-800-717-1738. For international callers, please dial +1-646-307-1865. A live webcast of the conference call will be available in the Investor Relations section of Amtech's website at: https://www.amtechsystems.com/investors/events.

A replay of the webcast will be available in the Investor Relations section of the company's website at http://www.amtechsystems.com/conference.htm shortly after the conclusion of the call and will remain available for approximately 30 calendar days.

About Amtech Systems, Inc.

Amtech Systems, Inc. provides equipment, consumables and services for semiconductor wafer fabrication and device packaging. Our products are used in fabricating semiconductor devices, such as silicon carbide (SiC) and silicon (Si) power devices, digital and analog devices, power electronic packages, advanced semiconductor packages and electronic assemblies. We sell these products to semiconductor device and module manufacturers worldwide, particularly in Asia, North America and Europe.

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this press release is forward-looking in nature. All statements in this press release, or made by management of Amtech Systems, Inc. and its subsidiaries ("Amtech"), other than statements of historical fact, are hereby identified as "forward-looking statements" (as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995). The forward-looking statements in this press release relate only to events or information as of the date on which the statements are made in this press release. Examples of forward-looking statements include statements regarding Amtech's future financial results, delivering profitable growth, creating long-term value for our shareholders, long term future prospects, operating results, business strategies, projected costs, the optimization and reduction of structural costs, products under development, competitive positions, plans and objectives of Amtech and its management for future operations, efforts to improve operational efficiencies and effectiveness and profitably grow our revenue, and enhancements to our technologies and expansion of our product portfolio. In some cases, forward-looking statements can be identified by terminology 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 of these terms or other comparable terminology used in this press release or by our management, which are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. The Form 10-K that Amtech filed with the Securities and Exchange Commission (the "SEC") for the year-ended September 30, 2024, listed various important factors that could affect the Company's future operating results and financial condition and could cause actual results to differ materially from historical results and expectations based on forward-looking statements made in this document or elsewhere by Amtech or on its behalf. These factors can be found under the heading "Risk Factors" in the Form 10-K and in our subsequently filed Quarterly Reports on Form 10-Qs, and investors should refer to them. Because it is not possible to predict or identify all such factors, any such list cannot be considered a complete set of all potential risks or uncertainties. Except as required by law, we undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events, or otherwise.

AMTECH SYSTEMS, INC. (NASDAQ:ASYS) (Unaudited)


Summary Financial Information (in thousands, except percentages)

	Three Months Ended									Nine Months Ended June 30,
	June 30, 2025			March 31, 2025			June 30, 2024			2025			2024
Amtech Systems, Inc.
Revenues, net	$	19,557		$	15,580		$	26,749		$	59,522		$	77,102
GAAP gross profit (loss)	$	9,132		$	(325	)	$	9,758		$	18,169		$	26,428
Non-GAAP gross profit	$	9,132		$	5,661		$	9,758		$	24,155		$	27,725
GAAP gross margin		47	%		(2	)%		36	%		31	%		34	%
Non-GAAP gross margin		47	%		36	%		36	%		41	%		36	%
Operating income (loss)	$	915		$	(31,583	)	$	816		$	(30,328	)	$	(6,755	)
New orders	$	21,655		$	15,701		$	18,814		$	55,426		$	61,690
Backlog	$	21,216		$	19,119		$	31,837		$	21,216		$	31,837
Thermal Processing Solutions Segment
Revenues, net	$	14,208		$	10,575		$	18,038		$	43,467		$	53,006
GAAP gross profit	$	6,325		$	350		$	6,313		$	14,005		$	17,513
Non-GAAP gross profit	$	6,325		$	3,912		$	6,313		$	17,567		$	17,513
GAAP gross margin		45	%		3	%		35	%		32	%		33	%
Non-GAAP gross margin		45	%		37	%		35	%		40	%		33	%
Operating income (loss)	$	2,907		$	(8,401	)	$	1,690		$	(2,620	)	$	3,666
New orders	$	14,057		$	10,562		$	10,801		$	37,786		$	39,990
Backlog	$	15,164		$	15,315		$	27,673		$	15,164		$	27,673
Semiconductor Fabrication Solutions Segment
Revenues, net	$	5,349		$	5,005		$	8,711		$	16,055		$	24,096
GAAP gross profit (loss)	$	2,807		$	(675	)	$	3,445		$	4,164		$	8,915
Non-GAAP gross profit	$	2,807		$	1,749		$	3,445		$	6,588		$	10,212
GAAP gross margin		52	%		(13	)%		40	%		26	%		37	%
Non-GAAP gross margin		52	%		35	%		40	%		41	%		42	%
Operating income (loss)	$	878		$	(21,077	)	$	1,621		$	(20,557	)	$	(5,321	)
New orders	$	7,598		$	5,139		$	8,013		$	17,640		$	21,700
Backlog	$	6,052		$	3,804		$	4,164		$	6,052		$	4,164

AMTECH SYSTEMS, INC. (NASDAQ:ASYS) (Unaudited)

Consolidated Statements of Operations (in thousands, except per share data)

	Three Months Ended June 30,						Nine Months Ended June 30,
	2025			2024			2025			2024
Revenues, net	$	19,557		$	26,749		$	59,522		$	77,102
Cost of sales		10,425			16,991			41,353			49,825
Intangible asset impairment		—			—			—			849
Gross profit		9,132			9,758			18,169			26,428

Selling, general and administrative		7,387			8,209			22,553			25,028
Research, development and engineering		364			693			2,070			3,202
Loss (gain) on sale of fixed assets		45			—			274			(2,197	)
Goodwill impairment		—			—			20,353			6,370
Intangible asset impairment		—			—			2,569			430
Severance expense		421			40			678			350
Operating income (loss)		915			816			(30,328	)		(6,755	)

Interest income		88			2			119			35
Interest expense		(5	)		(107	)		(19	)		(498	)
Foreign currency (loss) gain		(96	)		182			305			(5	)
Other		3			2			45			11
Income (loss) before income tax provision		905			895			(29,878	)		(7,212	)
Income tax provision		799			457			1,516			738
Net income (loss)	$	106		$	438		$	(31,394	)	$	(7,950	)

Income (Loss) Per Share:
Net income (loss) per basic share	$	0.01		$	0.03		$	(2.20	)	$	(0.56	)
Net income (loss) per diluted share	$	0.01		$	0.03		$	(2.20	)	$	(0.56	)
Weighted average shares outstanding:
Basic		14,314			14,209			14,294			14,198
Diluted		14,314			14,254			14,294			14,198

AMTECH SYSTEMS, INC. (NASDAQ:ASYS) (Unaudited)

Consolidated Balance Sheets (in thousands, except share data)

	June 30, 2025			September 30, 2024
Assets
Current Assets
Cash and cash equivalents	$	15,563		$	11,086
Accounts receivable (less allowance for credit losses of $126 and $103 at June 30, 2025 and September 30, 2024, respectively)		19,047			21,989
Inventories		19,620			26,867
Income taxes receivable		152			132
Other current assets		3,373			4,302
Total current assets		57,755			64,376
Property, Plant and Equipment - Net		10,445			11,647
Right-of-Use Assets - Net		17,856			16,596
Intangible Assets - Net		1,135			4,004
Goodwill		908			21,261
Deferred Income Taxes - Net		185			185
Other Assets		1,180			884
Total Assets	$	89,464		$	118,953
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable	$	6,899		$	5,356
Accrued compensation and related taxes		1,666			2,057
Accrued warranty expense		414			602
Other accrued liabilities		1,522			477
Current maturities of finance lease liabilities and long-term debt		112			101
Current portion of long-term operating lease liabilities		1,828			2,041
Contract liabilities		6,399			8,965
Total current liabilities		18,840			19,599
Finance Lease Liabilities and Long-Term Debt		127			189
Long-Term Operating Lease Liabilities		16,894			15,240
Income Taxes Payable		1,750			1,510
Other Long-Term Liabilities		135			57
Total Liabilities		37,746			36,595
Commitments and Contingencies
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: 14,313,963 and 14,258,879 at June 30, 2025 and September 30, 2024, respectively		143			143
Additional paid-in capital		129,577			128,466
Accumulated other comprehensive loss		(1,077	)		(720	)
Retained deficit		(76,925	)		(45,531	)
Total Shareholders' Equity		51,718			82,358
Total Liabilities and Shareholders' Equity	$	89,464		$	118,953

AMTECH SYSTEMS, INC. (NASDAQ:ASYS) (Unaudited)

Consolidated Statements of Cash Flows (in thousands)

	Nine Months Ended June 30,
	2025			2024
Operating Activities
Net loss	$	(31,394	)	$	(7,950	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		2,167			2,310
Write-down of inventory		6,647			1,367
Goodwill impairment		20,353			6,370
Intangible asset impairment		2,569			1,279
Deferred income taxes		—			(13	)
Non-cash share-based compensation expense		961			1,155
Loss (gain) on sale of fixed assets		274			(2,197	)
Provision for allowance for credit losses		43			(21	)
Changes in operating assets and liabilities:
Accounts receivable		2,899			2,204
Inventories		600			4,695
Other assets		3,057			4,205
Accounts payable		1,477			(1,965	)
Accrued income taxes		219			548
Accrued and other liabilities		(1,696	)		(4,298	)
Contract liabilities		(2,567	)		1,274
Net cash provided by operating activities		5,609			8,963
Investing Activities
Purchases of property, plant and equipment		(704	)		(5,310	)
Proceeds from the sale of property, plant and equipment		12			2,700
Net cash used in investing activities		(692	)		(2,610	)
Financing Activities
Proceeds from the exercise of stock options		150			28
Payments on long-term debt		(70	)		(6,668	)
Net cash provided by (used in) financing activities		80			(6,640	)
Effect of Exchange Rate Changes on Cash and Cash Equivalents		(520	)		337
Net Increase in Cash and Cash Equivalents		4,477			50
Cash and Cash Equivalents, Beginning of Period		11,086			13,133
Cash and Cash Equivalents, End of Period	$	15,563		$	13,183

AMTECH SYSTEMS, INC. (NASDAQ:ASYS) (Unaudited)

Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except per share data)

	Three Months Ended									Nine Months Ended June 30,
	June 30, 2025			March 31, 2025			June 30, 2024			2025			2024
Amtech Systems, Inc. Gross Profit (Loss):
GAAP gross profit (loss)	$	9,132		$	(325	)	$	9,758		$	18,169		$	26,428
Write-down of inventory related to polishing equipment		-			-			-			-			448
Inventory write-down of mature node semiconductor products		-			5,986			-			5,986			-
Intangible asset impairment		-			-			-			-			849
Non-GAAP gross profit	$	9,132		$	5,661		$	9,758		$	24,155		$	27,725

GAAP gross margin		47	%		(2	)%		36	%		31	%		34	%
Non-GAAP gross margin		47	%		36	%		36	%		41	%		36	%

Thermal Processing Solutions Segment Gross Profit:
GAAP gross profit	$	6,325		$	350		$	6,313		$	14,005		$	17,513
Write-down of inventory related to polishing equipment		-			-			-			-			-
Inventory write-down of mature node semiconductor products		-			3,562			-			3,562			-
Intangible asset impairment		-			-			-			-			-
Non-GAAP gross profit	$	6,325		$	3,912		$	6,313		$	17,567		$	17,513

GAAP gross margin		45	%		3	%		35	%		32	%		33	%
Non-GAAP gross margin		45	%		37	%		35	%		40	%		33	%

Semiconductor Fabrication Solutions Segment Gross Profit (Loss):
GAAP gross profit (loss)	$	2,807		$	(675	)	$	3,445		$	4,164		$	8,915
Write-down of inventory related to polishing equipment		-			-			-			-			448
Inventory write-down of mature node semiconductor products		-			2,424			-			2,424			-
Intangible asset impairment		-			-			-			-			849
Non-GAAP gross profit	$	2,807		$	1,749		$	3,445		$	6,588		$	10,212

GAAP gross margin		52	%		(13	)%		40	%		26	%		37	%
Non-GAAP gross margin		52	%		35	%		40	%		41	%		42	%

AMTECH SYSTEMS, INC. (NASDAQ:ASYS) (Unaudited)

Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except per share data)

	Three Months Ended							Nine Months Ended June 30,
	June 30, 2025		March 31, 2025			June 30, 2024		2025			2024
Consolidated Net Income (Loss):
GAAP net income (loss)	$	106	$	(31,812	)	$	438	$	(31,394	)	$	(7,950	)
Gain on sale of fixed assets		-		-			-		-			(2,197	)
Building move expense		-		-			-		-			231
Write-down of inventory related to polishing equipment		-		-			-		-			448
Inventory write-down of mature node semiconductor products		-		5,986			-		5,986			-
Amortization of acquired intangible assets		27		107			154		242			595
Stock compensation expense		338		290			488		961			1,155
Goodwill impairment		-		20,353			-		20,353			6,370
Intangible asset impairment		-		2,569			-		2,569			1,279
Severance expense		421		184			40		678			350
Non-GAAP net income (loss)	$	892	$	(2,323	)	$	1,120	$	(605	)	$	281

Net Income (Loss) per Diluted Share:
GAAP net income (loss) per diluted share	$	0.01	$	(2.23	)	$	0.03	$	(2.20	)	$	(0.56	)
Gain on sale of fixed assets		-		-			-		-			(0.15	)
Building move expense		-		-			-		-			0.01
Write-down of inventory related to polishing equipment		-		-			-		-			0.03
Inventory write-down of mature node semiconductor products		-		0.42			-		0.42			-
Amortization of acquired intangible assets		-		0.01			0.01		0.02			0.04
Stock compensation expense		0.02		0.02			0.03		0.07			0.08
Goodwill impairment		-		1.43			-		1.42			0.45
Intangible asset impairment		-		0.18			-		0.18			0.09
Severance expense		0.03		0.01			0.01		0.05			0.02
Non-GAAP net income (loss) per diluted share	$	0.06	$	(0.16	)	$	0.08	$	(0.04	)	$	0.02

AMTECH SYSTEMS, INC. (NASDAQ:ASYS) (Unaudited)

Reconciliation of Net Income to EBITDA and Adjusted EBITDA (in thousands, except per share data)

	Three Months Ended June 30, 2025			Nine Months Ended June 30, 2025
Amtech Systems, Inc. EBITDA:
GAAP net income (loss)	$	106		$	(31,394	)
Interest income		(88	)		(119	)
Interest expense		5			19
Income tax provision		799			1,516
Depreciation and amortization expense		594			2,167
EBITDA		1,416			(27,811	)

Inventory write-down of mature node semiconductor products		-			5,986
Stock compensation expense		338			961
Goodwill impairment		-			20,353
Intangible asset impairment		-			2,569
Severance expense		421			678
Adjusted EBITDA	$	2,175		$	2,736

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Amtech Systems, Inc.

Wade M. Jenke

Vice President and Chief Financial Officer

irelations@amtechsystems.com

Sapphire Investor Relations, LLC

Erica Mannion and Michael Funari

(617) 542-6180

irelations@amtechsystems.com

Amtech Reports Third Quarter Fiscal 2025 Results