Amtech Systems, Inc. Q1 FY2026 earnings call

• Introduced Mark Weaver as Interim CFO. - Revenue for the quarter was $19M, adjusted EBITDA $1.4M, within guidance. - Strength in AI-related product demand for Thermal Processing Solutions, bookings strong with book-to-bill ratio 1.1. - Initial orders for panel-level packaging equipment, investment in next-gen high-density packaging equipment. - Semiconductor Fabrication Solutions won a specialty chemical product for medical devices, but Pura Hoffman was impacted. - Nine consecutive quarters of positive operating cash flow, cash balance $22.1M with no debt. - Semi-fabless model led to cost savings and minimal capital expenditures.

Thermal Processing Solutions: Revenue for the quarter was influenced by strength in demand for AI-related products, which accounted for 35% of its revenue in the first quarter, up from about 30% in the fourth quarter. Semiconductor Fabrication Solutions: First win for a specialty chemical product for a medical device semiconductor application, but weak demand for Pura Hoffman products negatively impacted overall results due to weakness in the mature node semiconductor market and cost pressures at major silicon carbide semiconductor customers. Revenue for the quarter was $19 million, with adjusted EBITDA at $1.4 million.

• For the second fiscal quarter ending 03/31/2026, expects revenue in the range of $19 million to $21 million. - AI-related equipment sales for the Thermal Processing Solutions segment anticipated to drive majority of revenue growth. - Adjusted EBITDA margins expected to come in at high single digits.

• Changes in technologies used by customers and competitors. - Changes in volatility and demand for products. - Changing worldwide political and economic conditions including trade sanctions. - Overall market conditions, including equity and credit markets and market acceptance risks. - Ongoing logistics, supply chain and labor matters. - Capital allocation plans. - Impact of foreign currency exchange rate changes on results.

Q: Could you elaborate on the panel-level business?

A: Traditionally chip packaging was discrete components, panel-level is about producing packaging in large panel formats for cost-effectiveness and throughput, with initial orders from industry leaders received.

Q: What are you most encouraged about moving through fiscal 2026?

A: Strong bookings, short lead times on AI equipment, process of record for panel-level packaging, and win with customer and strength of pipeline in specialty chemicals.

Q: About $700,000 increase quarter over quarter on SG&A and R&D lines, any items?

A: R&D increases in next-gen packaging equipment for AI and semi-fab solutions; G&A had consulting costs and variable comp costs.

Q: About 83% tax rate, fair tax rate?

A: US entities in loss position with valuation allowance against deferred tax assets, tax coming from foreign entities; foreign entities have income but US loss affects tax expense.