Amtech Systems, Inc. Reports Its 2004 Fourth Quarter and Fiscal Year Results.TEMPE, Ariz. -- Amtech Systems, Inc. (Nasdaq:ASYS), a global supplier of production and automation systems and related supplies for the semiconductor, silicon wafer (1) A small, thin continuous-loop magnetic tape cartridge that has been used from time to time for data storage and specialized applications. (2) The base unit of chip making. It is a slice taken from a salami-like silicon crystal ingot up to 12" (300mm) in diameter. , solar cell solar cell, semiconductor devised to convert light to electric current. It is a specially constructed diode, usually made of silicon crystal. When light strikes the exposed active surface, it knocks electrons loose from their sites in the crystal. and microelectromechanical system microelectromechanical system (MEMS) Miniature devices formed by combining mechanical parts and electronic circuits, typically on a semiconductor chip, with dimensions from tens to a few hundred micrometres (millionths of a metre). (MEMS (MicroElectroMechanical Systems) Tiny mechanical devices that are built onto semiconductor chips and are measured in micrometers. In the research labs since the 1980s, MEMS devices began to materialize as commercial products in the mid-1990s. ) industries, today reported results for its fourth quarter and fiscal year ended September September: see month. 30, 2004. Revenues for the fourth quarter of fiscal 2004 totaled $4.9 million, a decrease of 18% from $6.0 million in the fourth quarter of fiscal 2003. Excluding revenues of Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. Technologies, Inc. ("BTI BTI Beverage Testing Institute BTI Boyce Thompson Institute BTI British American Tobacco (stock symbol) BTI Boston Theological Institute Bti Bacillus Thuringiensis Israelensis BTI BioTechnology Institute BTI Binding Tariff Information "), acquired in July July: see month. 2004, revenues for the fourth quarter of fiscal 2004 were $3.8 million. Fourth quarter 2004 revenues were below the quarterly average for the year because the quarter began with the lowest quarter-end backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. since March 2000. Also, the $5.2 million of new orders in the fourth quarter of fiscal 2004, excluding orders of BTI, were received too late to positively affect that quarter's revenue. Contributing to the unfavorable comparison was the fact that revenues in the fourth quarter of fiscal 2003 were unusually high as a result of a multi-system order that was produced during the third and fourth quarters of that year, but not recognized until the last system was delivered in the fourth quarter of 2003. Revenues for the 2004 fiscal year were $19.3 million, a 1% decline compared to $19.4 million for the 2003 fiscal year. As with the fourth quarter, the decline in fiscal 2004 revenue to $18.2 million, excluding BTI, was largely due to the volatility and timing in the flow of new orders. The net loss for the fourth quarter of 2004 was $3.0 million, or $1.11 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with net income of $0.4 million, or $.15 per diluted share, for the comparable period in fiscal 2003. The net loss for the 2004 fiscal year was $3.2 million, or $1.17 per diluted share, compared to the fiscal 2003 net loss of $0.1 million, or $.04 per diluted share. A portion of the 2004 loss was attributable to the decline in revenue from existing operations, discussed above. The remainder of the loss was the result of a number of non-cash and other charges, which can be summarized as follows:
1. Provision for inventory losses on existing
operations $ 338,000
2. Difference between our valuation of the opening BTI
inventory and the values at which they were carried
by the seller 303,000
3. Increase in 2004 deferred profits compared to 2003 465,000
4. Investment in a new small batch vertical furnace,
represented by the estimated contract costs in excess
of the selling price 322,000
5. BTI integration costs 88,000
---------
Total $1,516,000
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The fiscal 2004 pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta loss is $2.1 million, compared to the fiscal 2003 pre-tax loss of $0.2 million. The pre-tax loss includes depreciation and amortization expense of $0.5 million. Amtech recorded a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $1.1 million to provide a full valuation allowance on its net deferred tax assets at September 30, 2004, which contributed to the reported net loss of $3.2 million. Deferred tax assets, such as those resulting from net operating losses Net operating losses Losses that a firm can take advantage of to reduce taxes. , reduce taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. in future years. Statement of Financial Accounting Statement (SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System ) No. 109 requires an assessment of a company's current and previous performance and other relevant factors when determining the need for a valuation allowance. Factors such as current and cumulative losses are given substantially more weight than the outlook for future profitability. "As we were closing the fiscal year, a review of the significant fourth quarter loss and the cumulative tax losses from the prior two years caused us to conclude that it would be appropriate to record a valuation allowance related to our net deferred tax assets," said Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. T. Hass HASS Humanities, Arts, and Social Sciences (college department) HASS Highly Accelerated Stress Screening HASS High Availability Storage System HASS Higher, Adjacent, Support, Security , Chief Financial Officer. "Recording this charge is not necessarily a reflection of our view of Amtech's future prospects." As of September 30, 2004, our order backlog had decreased to $7.3 million, from $7.6 million at September 30, 2003. Backlog includes customer orders expected to ship within the next 12 months and revenue deferred pursuant to Amtech's revenue recognition policy. Amtech's backlog as of any specific point in time is not necessarily indicative of actual revenue or earnings for any succeeding period due to possible customer changes in delivery schedules or cancellation of orders, and because a backlog does not provide any assurance of a profit from those orders. Mr. J.S. Whang, President and Chief Executive Officer, stated, "We are in a very cyclical industry Cyclical Industry A term describing an industry that is sensitive to the business cycle and price changes. Many cyclical industries produce durable goods such as raw materials and heavy equipment. and we believe that as we move through the cycles, our results of operations generally lag those of the larger, leading-edge semiconductor equipment manufacturers by two to three quarters. Also, because most of our revenue is derived from the manufacture and sale of large systems and at times from multi-system orders, our results reflect significant volatility between quarters and even years. "Both of these factors negatively affected our results for fiscal 2004. We view our loss in this context and in light of the fact that most of the larger companies in our industry reported significantly larger losses relative to their size in the past two years, before reporting strong earnings in 2004. Despite the results for fiscal 2004, we continued to make investments during the year that are expected to improve our future results of operations." The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 provides a "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " for forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by Amtech Systems, Inc.) contains statements that are forward-looking. All statements other than statements of historical fact are hereby identified as "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward looking information involves a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those discussed or anticipated by management. Potential risks and uncertainties include, among other factors, industry specific and general business conditions, competitive market conditions, success of Amtech's growth and sales strategies, the possibility of customer changes in delivery schedules, cancellation of orders, potential delays in product shipments, delays in obtaining inventory parts from suppliers, failure to satisfy customer acceptance requirements and other risk factors described in Amtech's SEC filings. All forward-looking statements are based on management's estimates, projections and assumptions as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" and Amtech assumes no obligation to update this press release. This earnings release should be read in conjunction with the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended September 30, 2004.
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CONDENSED STATEMENTS OF OPERATIONS
(amounts in thousands, except share data)
----------------------------------------------------------------------
QUARTER ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30,
---------------------- -----------------------
2004 2003 2004 2003
----------- ---------- ---------- -----------
Revenue $ 4,912 $ 6,035 $ 19,299 $ 19,434
Operating Income
(Loss) $ (1,894) $ 552 $ (2,105) $ (245)
Net Income (Loss) $ (3,015) $ 406 $ (3,165) $ (100)
Earnings (Loss)
Per Share:
--------------
Basic $ (1.11) $ .15 $ (1.17) $ (.04)
Diluted $ (1.11) $ .15 $ (1.17) $ (.04)
Weighted Average
Share Outstanding:
Basic 2,705,121 2,695,591 2,702,060 2,692,222
Diluted 2,705,121 2,763,545 2,702,060 2,692,222
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CONDENSED BALANCE SHEETS
(in thousands)
----------------------------------------------------------------------
SEPTEMBER 30, SEPTEMBER 30,
2004 2003
------------ -------------
CASH AND EQUIVALENTS $ 1,674 $ 7,453
ACCOUNTS RECEIVABLE - NET 3,629 3,005
INVENTORIES 5,994 3,894
PREPAIDS AND INCOME TAXES RECEIVABLE 969 654
DEFERRED INCOME TAXES - 980
------------ -------------
TOTAL CURRENT ASSETS 12,266 15,986
PLANT AND EQUIPMENT - NET 2,220 1,503
DEFERRED INCOME TAXES - 150
GOODWILL AND OTHER ASSETS - NET 2,174 760
------------ -------------
$ 16,660 $ 18,399
============ =============
DEFERRED PROFIT 1,031 534
OTHER CURRENT LIABILITIES 3,500 2,725
LONG-TERM OBLIGATIONS 474 641
TOTAL STOCKHOLDERS' EQUITY 11,655 14,499
------------ -------------
$ 16,660 $ 18,399
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