ASYS

Leadership Transition

• Guy Sella has stepped into the Chief Executive Officer role, with former Executive Chairman Bob Getch supporting the transition. Management states this transition is well-timed to support Amtek's next phase of growth.

Business Positioning and Strategic Focus

• Amtek sees strong, growing demand for technologies that enable AI-driven semiconductor manufacturing and advanced packaging, and is positioned to capitalize on this trend by expanding its technology portfolio and increasing participation across customer manufacturing roadmaps.
• The company operates an established asset-light business model with strong balance sheet health: it holds $83.1 million in unrestricted cash and cash equivalents as of Q3 end 2026, and has no outstanding debt. The cash balance increased following a $60 million oversubscribed public stock offering that generated $56.5 million in net proceeds in June 2026.
• Strategy prioritizes organic growth driven by AI-focused TPS expansion. Management is open to synergistic acquisitions that meet strict return on invested capital requirements, particularly acquisitions that expand AI capabilities or allow Amtek to replicate its successful asset-light business model.

Operational Updates

• For three consecutive quarters, company-wide bookings have exceeded sales, leading to growing backlog that extends into fiscal 2027 Q1 and Q2. AI bookings remain particularly strong, with both same-quarter and future shipment activity.
• R&D expenses more than doubled year-over-year, and are expected to increase further in coming quarters to develop next-generation product platforms. No share repurchases have been executed under the existing $5 million repurchase program established in December 2025.
• The company secured its first order for semiconductor cooling application equipment, adapted from existing EV battery heat exchanger technology. A new product launch is scheduled for a September industry show, with typical production lead times of 6 to 8 weeks for new equipment after ramp-up.
• The specialty chemicals business has built a customer pipeline and secured initial wins, with ongoing efforts to expand to additional customers for incremental growth in coming quarters.

• For fiscal 2026 Q4 (ending September 30, 2026), management expects total revenue in the range of $22.5 million to $24 million.
• Adjusted EBITDA margins are projected to land in the low to mid-teens range, with 13% to 15% as the guided range, reflecting expected operating leverage from top-line growth.
• AI-related sales in the TPS segment are expected to drive the majority of Q4 revenue growth, and will account for well over 40% of TPS segment revenue, maintaining the elevated share seen in Q3.
• No material recovery of SFS segment silicon carbide demand is expected, and the company will continue disciplined cost and working capital management for this segment.
• All guidance assumes current foreign exchange rates hold; material currency value shifts could lead to actual results deviating from projected outlooks.

Consolidated revenue growth in fiscal 2026 Q3 is entirely driven by the Thermal Processing Solutions (TPS) segment. TPS generated revenue of $17.7 million, a 25% year-over-year increase. AI-related revenue accounted for over 40% of TPS segment revenue, up from ~30% in the year-ago quarter. 20% of TPS segment revenue came from recurring parts and services. The Surface Preparation and Screening (SFS) segment generated total revenue of $4.6 million, representing a 13% year-over-year decrease, driven by weak demand for PR Hoffman silicon carbide products. Overall company gross margins reached 50% in Q3 2026, up 400 basis points from 46.7% in Q3 2025, enabled by product line rationalization, a focus on higher-margin AI and advanced packaging solutions, and growing scale. GAAP net income for the quarter was $1.7 million ($0.10 per diluted share), compared to $100,000 ($0.01 per diluted share) in the year-ago quarter.

• Weak demand for SFS segment silicon carbide products has pressured segment revenue, and management does not expect meaningful demand recovery for this product line in the near term.
• Foreign exchange volatility, specifically weakening of the U.S. dollar against the Chinese renminbi, generated $400,000 in foreign currency exchange losses in Q3 2026, and ongoing currency fluctuations could impact future results.
• New product opportunities, including the emerging semiconductor cooling application, have unproven long-term market size, and growth depends on the success of Amtek's customers developing end applications.
• M&A activity carries inherent risk of failing to meet required return on invested capital targets, so no transactions are guaranteed.
• Inventory builds to accommodate growing TPS backlog could create excess inventory risk if demand softens or order timelines shift.

Q: The analyst asked how long the recent uptick in TPS backlog will take to convert to recognized revenue. / A: Management stated most of the backlog will convert to revenue in fiscal 2026 Q4, with remaining backlog recognized primarily in fiscal 2027 Q1, and a smaller portion extending into fiscal 2027 Q2.

Q: The analyst asked if the backlog uptick comes from a small number of large customers, or reflects broader demand growth. / A: Management explained Amtek's equipment is sold to OSATs and major OEMs, and serves the full range of AI accelerator applications, rather than being tied to any single hyperscaler. Growth is tied to overall AI infrastructure build-out demand, not individual customer orders.

Q: The analyst asked for clarity on whether the Q4 low-to-mid teens adjusted EBITDA margin guidance represents a step down from Q3's 15% margin, or just conservative framing. / A: Management clarified that they consider 13% to 15% to fall within the low-to-mid teens range, so the guidance is consistent with Q3's margin outcome rather than an expected step down.

Q: The analyst asked for details on the new semiconductor cooling application order and its market opportunity. / A: The application directly removes heat from semiconductors for data center use, leveraging existing technology Amtek developed for EV battery heat exchangers. It is too early to estimate the total size of this opportunity, as growth depends on how successful Amtek's customer is in commercializing the end solution.

Q: The analyst asked how Amtek will deploy its strong balance sheet, and how the company prioritizes organic growth versus M&A. / A: Amtek's primary focus is expanding participation in AI semiconductor manufacturing through organic growth. The company will consider synergistic M&A that meets its return on invested capital requirements, such as acquisitions expanding AI capabilities or opportunities to apply Amtek's asset-light business model to new assets, but transactions are not guaranteed.