Amtech Systems, Inc. Q3 FY2025 earnings call

• Third quarter revenue was $19.6 million, up 26% over prior quarter, with both Thermal Processing Solutions and Semiconductor Fabrication Solutions segments exceeding forecast. - Adjusted EBITDA was $2.2 million, benefited from nonrecurring Employee Retention Credit; excluding items, EBITDA was nominally positive. - For Thermal Processing Solutions, advanced semiconductor packaging was a highlight with strength driven by AI infrastructure investments. - For Semiconductor Fabrication Solutions, committed to investing in applications and product development to deepen customer relationships and increase recurring revenue. - Over past 18 months, implemented cost reduction initiatives resulting in $13 million annualized savings, consolidating manufacturing footprint from 7 sites to 4, and expect to realize additional savings by subletting unutilized facilities.

Thermal Processing Solutions segment: Revenue from equipment used for AI infrastructure increased fivefold from a year ago and over 60% sequentially in the third quarter, accounting for about 25% of its revenue. Revenue mix was about 60% from capital equipment and 40% from recurring revenue (including consumables, parts and services). Semiconductor Fabrication Solutions segment: Demand for front-end equipment and consumables tied to mature node semiconductor applications in industrial and automotive markets remained weak, but its performance modestly exceeded expectations in the quarter, driven by some improvements in demand for consumables.

• Expect revenues for fiscal fourth quarter ending September 30, 2025, in the range of $17 million to $19 million. - Growth in AI-related equipment sales in Thermal Processing Solutions segment to partially offset softness in mature node semiconductor product lines. - Expect improved operating leverage with adjusted EBITDA margins in the mid-single digits due to previously implemented structural and operational cost reductions.

• Changes in technologies used by customers and competitors. - Change in volatility and demand for products. - Effect of changing worldwide political and economic conditions, including trade sanctions. - Effect of overall market conditions, including equity and credit markets and market acceptance risks. - Ongoing logistics, supply chain and labor challenges. - Capital allocation plans. - A portion of Amtech's results is denominated in renminbi, and changes in the value of renminbi in relation to the US dollar could cause actual results to differ from expectations.

Q: A: Q: A: