Amtech Systems Inc. reported a $417,000 increase in net income for the first quarter of fiscal 1996.

TEMPE, Ariz.--(BUSINESS WIRE)--Feb. 21, 1996--Amtech Systems Inc. (NASDAQ:ASYS) Wednesday reported net income of $296,038, or $.14 per share, on consolidated revenues of $2,906,000 for its first fiscal quarter, ended Dec. 31, 1995.

In comparison, the first quarter of fiscal 1995 resulted in a net loss of $121,000, or a loss of $.12 per share, on consolidated revenues of $2,476,000. Net income for the first quarter of fiscal 1996 represented an improvement of $417,000 over that reported for the comparable period of the prior year.

Income from the continuing semiconductor equipment operations increased $151,000 from a net loss of $150,000 in the first quarter of fiscal 1995 to net income of $1,000 in the first quarter of fiscal 1996.

This improvement was brought about by a 50 percent increase in revenues from continuing operations, which resulted from the sales of semiconductor diffusion furnaces and related parts sold by the company's wholly-owned subsidiary, Tempress(R) Systems Inc., located in the Netherlands.

It was the start-up losses of the Tempress(R) operation, which began in October 1994, which caused the net loss in the first quarter of fiscal 1995. The Tempress operation had sufficient sales of furnaces and related parts to achieve profitability for the first quarter of fiscal 1996, which ended Dec. 31, 1995.

The company has a strong order backlog of $4,830,000 as of Dec. 31, 1995, compared to $2,360,000 one year earlier. However, there are two factors limiting sales and profits. Suppliers of fabricated quartz parts have increased their lead-times on most items to six months or more, which causes delays in the shipment of ATMOSCANs and furnaces that require those parts.

In addition, the company's delay in the shipment of just one or two high-priced system orders can significantly depress its sales and profits for the quarter. As a result of these two factors, sales and profits are expected to decline in the second quarter of the current fiscal year from the level of the first quarter, causing those sales to be substantially below the record quarterly sales achieved in the second quarter of fiscal 1995.

Due to the strong order backlog, shipments are expected to recover from the lower level of sales after the company has worked through the initial affects of these delays.

The company had a $274,000 gain from the sale of Echelon Service Co. (Echelon). The sale was undertaken in order to concentrate 100 percent of the company's management and financial resources on its core business, the manufacturing on two continents and world-wide sales of semiconductor equipment. Echelon was the company's last remaining interest in the technical contract personnel business.

Amtech Systems Inc. manufactures capital equipment for use in the production of semiconductors, including the Tempress(R) Systems' horizontal diffusion furnace, ATMOSCAN(R), an environmentally controlled wafer processing system, IBAL, modular robotic devices which automate the process of wafer loading and unloading, and load stations, which load Tempress(R) and other brands of furnaces. -0-

                           Amtech Systems Inc.
                          Financial Highlights

                                      For the quarters ended
                                             Dec. 31
                                       1995            1994
Revenues:
Semiconductor equipment            $1,670,888      $1,112,338
Discontinued technical
  contract personnel                1,234,621       1,363,886
                                   ----------      ----------
Consolidated revenues              $2,905,509      $2,476,224

Income from the continuing
  semiconductor equipment
  operations net of income taxes         $585       $(150,044)

Income from the discontinued
  technical contract personnel
  operations net of taxes              21,757          29,032

Gain on disposal of technical
  contract personnel segment          273,696              --
                                     --------       ---------
Net income (loss)                    $296,038       $(121,012)

Primary earnings per share:
Income (loss) from continuing
  operations                             $.00           $(.15)
Net income (loss) per share              $.14           $(.12)
Average shares outstanding          2,152,851         993,792

Fully diluted earnings per share:
Income (loss) from continuing
  operations                             $.00           $(.15)
Net income (loss) per share              $.14           $(.12)
Average shares outstanding          2,152,851         993,792

CONTACT: Amtech Systems Inc., Tempe

Robert T. Hass, 602/967-5146