Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2016 | Apr. 28, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | AMTECH SYSTEMS INC | |
Entity Central Index Key | 720,500 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 13,173,197 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Sep. 30, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 31,818 | $ 25,852 |
Restricted cash | 535 | 638 |
Accounts receivable | ||
Trade (less allowance for doubtful accounts of $3,537 and $5,009 at March 31, 2016, and September 30, 2015, respectively) | 16,641 | 14,488 |
Unbilled and other | 6,089 | 8,494 |
Inventories | 24,054 | 23,329 |
Deferred income taxes | 2,050 | 2,050 |
Notes and other receivable | 0 | 7,079 |
Other | 3,888 | 3,772 |
Total current assets | 85,075 | 85,702 |
Property, Plant and Equipment - Net | 16,896 | 17,761 |
Deferred income taxes - Long Term | 430 | 430 |
Other Assets - Long Term | 1,167 | 3,356 |
Investments | 3,404 | 2,733 |
Intangible Assets - Net | 4,568 | 4,939 |
Goodwill | 11,188 | 10,535 |
Total Assets | 122,728 | 125,456 |
Current Liabilities | ||
Accounts payable | 15,021 | 15,646 |
Current maturities of long-term debt | 747 | 919 |
Accrued compensation and related taxes | 5,242 | 5,605 |
Accrued warranty expense | 859 | 793 |
Deferred profit | 3,431 | 4,873 |
Customer deposits | 10,495 | 7,154 |
Other accrued liabilities | 2,180 | 3,551 |
Income taxes payable | 2,400 | 830 |
Total current liabilities | 40,375 | 39,371 |
Long-term Debt | 9,351 | 8,448 |
Income Taxes Payable - Long Term | 5,960 | 4,990 |
Total liabilities | $ 55,686 | $ 52,809 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Preferred stock; 100,000,000 shares authorized; none issued | $ 0 | $ 0 |
Common stock; $0.01 par value; 100,000,000 shares authorized; shares issued and outstanding: 13,150,222 and 9,848,253 at June 30, 2015, and September 30, 2014, respectively | 132 | 131 |
Additional paid-in capital | 110,930 | 110,191 |
Accumulated other comprehensive loss | (8,611) | (8,666) |
Retained deficit | (34,335) | (28,822) |
Total stockholders' equity | 68,116 | 72,834 |
Noncontrolling interest | (1,074) | (187) |
Total equity | 67,042 | 72,647 |
Total Liabilities and Stockholders' Equity | $ 122,728 | $ 125,456 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Sep. 30, 2015 |
Current Assets | ||
Allowance for doubtful accounts | $ 3,537 | $ 5,009 |
Stockholders' Equity | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 13,173,197 | 13,150,469 |
Common stock, shares outstanding | 13,173,197 | 13,150,469 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||||
Revenues, net of returns and allowances | $ 22,483 | $ 24,273 | $ 44,557 | $ 36,669 |
Cost of sales | 16,482 | 17,384 | 32,601 | 26,352 |
Gross profit | 6,001 | 6,889 | 11,956 | 10,317 |
Selling, general and administrative | 7,448 | 8,075 | 15,044 | 14,459 |
Research, development and engineering | 2,160 | 750 | 4,447 | 2,586 |
Operating loss | (3,607) | (1,936) | (7,535) | (6,728) |
Gain on sale of other assets | 2,576 | 0 | 2,576 | 0 |
Income from equity method investment | 688 | 0 | 671 | 0 |
Interest expense and other income, net | 33 | (217) | (169) | (120) |
Loss before income taxes | (310) | (2,153) | (4,457) | (6,848) |
Income tax provision | 1,670 | 170 | 1,970 | 350 |
Net loss | (1,980) | (2,323) | (6,427) | (7,198) |
Add: net loss (income) attributable to noncontrolling interest | 481 | 2 | 914 | (317) |
Net loss attributable to Amtech Systems, Inc. | $ (1,499) | $ (2,321) | $ (5,513) | $ (7,515) |
Loss Per Share: | ||||
Basic loss per share attributable to Amtech shareholders (dollars per share) | $ (0.11) | $ (0.19) | $ (0.42) | $ (0.69) |
Weighted average shares outstanding (in shares) | 13,169 | 11,997 | 13,161 | 10,914 |
Diluted loss per share attributable to Amtech shareholders (dollars per share) | $ (0.11) | $ (0.19) | $ (0.42) | $ (0.69) |
Weighted average shares outstanding (in shares) | 13,169 | 11,997 | 13,161 | 10,914 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (1,980) | $ (2,323) | $ (6,427) | $ (7,198) |
Foreign currency translation adjustment | 617 | (2,322) | 82 | (3,380) |
Comprehensive loss | (1,363) | (4,645) | (6,345) | (10,578) |
Comprehensive (income) loss attributable to noncontrolling interest | 454 | 175 | 887 | (138) |
Comprehensive loss attributable to Amtech Systems, Inc. | $ (909) | $ (4,470) | $ (5,458) | $ (10,716) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Activities | ||
Net loss | $ (6,427) | $ (7,198) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,529 | 1,641 |
Write-down of inventory | 74 | 81 |
Deferred income taxes | (5) | 901 |
Non-cash share based compensation expense | 708 | 568 |
Gain on sale of other assets | (2,576) | 0 |
Income from equity method investment | (671) | 0 |
Reversal of allowance for doubtful accounts | (122) | (281) |
Changes in operating assets and liabilities: | ||
Restricted cash | 97 | 844 |
Accounts receivable | 475 | (1,406) |
Inventories | (656) | (7,482) |
Accrued income taxes | 1,939 | (922) |
Other assets | (120) | (2,027) |
Accounts payable | (707) | 7,664 |
Accrued liabilities and customer deposits | 1,515 | 5,269 |
Deferred profit | (1,440) | (643) |
Net cash used in operating activities | (6,387) | (2,991) |
Investing Activities | ||
Purchases of property, plant and equipment | (192) | (125) |
Acquisitions, net of cash acquired | 0 | 8,595 |
Proceeds from partial sale of subsidiary | 7,012 | 0 |
Proceeds from sale of other assets | 4,884 | 0 |
Net cash provided by investing activities | 11,704 | 8,470 |
Financing Activities | ||
Proceeds from the exercise of stock options | 30 | 55 |
Payments on long-term debt | (259) | (121) |
Borrowings on long-term debt | 830 | 335 |
Net cash provided by financing activities | 601 | 269 |
Effect of Exchange Rate Changes on Cash | 48 | (508) |
Net Increase in Cash and Cash Equivalents | 5,966 | 5,240 |
Cash and Cash Equivalents, Beginning of Period | 25,852 | 27,367 |
Cash and Cash Equivalents, End of Period | 31,818 | 32,607 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | 176 | 58 |
Issuance of common stock for acquisitions | $ 0 | $ 26,625 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations and Basis of Presentation - Amtech Systems, Inc. (the “Company” or “Amtech”) is a global manufacturer of capital equipment, atomic layer deposition (“ALD”) including thermal processing, silicon wafer handling automation, and related consumables used in fabricating solar cells, LED and semiconductor devices. The Company sells these products to solar cell and semiconductor manufacturers worldwide, particularly in Asia, United States and Europe. The Company serves niche markets in industries that are experiencing rapid technological advances and which historically have been very cyclical. Therefore, future profitability and growth depend on the Company’s ability to develop or acquire and market profitable new products and on its ability to adapt to cyclical trends. The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”), and consequently do not include all disclosures normally required by accounting principles generally accepted in the United States of America. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all adjustments necessary, all of which are of a normal and recurring nature, to present fairly our financial position, results of operations and cash flows. Certain information and note disclosures normally included in financial statements have been condensed or omitted pursuant to the rules and regulations of the SEC. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2015. The consolidated results of operations for the three and six months ended March 31, 2016, are not necessarily indicative of the results to be expected for the full fiscal year. Principles of Consolidation – The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries and subsidiaries in which it has a controlling interest. The Company reports noncontrolling interests in consolidated entities as a component of equity separate from the Company’s equity. The equity method of accounting is used for investments over which the Company has a significant influence but not a controlling financial interest. All material intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates - The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition - The Company reviews product and service sales contracts with multiple deliverables to determine if separate units of accounting are present. Where separate units of accounting exist, revenue allocated to delivered items is the lower of the relative selling price of the delivered items in the sales arrangement or the portion of the selling price that is not contingent upon performance of the service. The Company recognizes revenue when persuasive evidence of an arrangement exists; the product has been delivered and title has transferred, or services have been rendered; and the seller’s price to the buyer is fixed or determinable and collectability is reasonably assured. For us, this policy generally results in revenue recognition at the following points: 1. For the Company's equipment business, transactions where legal title passes to the customer upon shipment, revenue is recognized upon shipment for those products where the customer’s defined specifications have been met with at least two similarly configured systems and processes for a comparably situated customer. Selling prices may include both equipment and services, i.e., installation and start-up services performed by our service technicians. The equipment and services are multiple deliverables. Certain equipment that has a positive track record of successful installation and customer acceptance are considered to be routine systems. Revenue recognition upon delivery of such equipment that has been routinely installed and accepted is equal to the total selling price minus the relative selling price of the undelivered services. Where there have been installation and acceptance of more than two similarly configured items of equipment, but installation and acceptance have not become routine, recognition of revenue upon delivery of equipment is limited to the lesser of (i) the total selling price minus the relative selling price of the undelivered services or (ii) the non-contingent amount. Since the Company only defers those costs directly related to installation, or other unit of accounting not yet delivered, and the contingent portion of the contract price is often considerably greater than the relative selling price of those items, the policy at times will result in deferral of profit that is disproportionate in relation to the deferred revenue. When this is the case, the gross margin recognized in one period will be lower and the gross margin reported in a subsequent period will improve. 2. For products where the customer’s defined specifications have not been met with at least two similarly configured systems and processes, the revenue and directly related costs are deferred at the time of shipment and later recognized at the time of customer acceptance or when this criterion has been met. On occasion, the Company has experienced longer than expected delays in receiving cash from certain customers pending final installation or system acceptance. If some customers refuse to pay the final payment, or otherwise delay final acceptance or installation, the deferred revenue would not be recognized, adversely affecting future cash flows and operating results. 3. Sales of certain equipment, spare parts and consumables are recognized upon shipment, as there are no post shipment obligations other than standard warranties. 4. Service revenue is recognized upon performance of the services requested by the customer. Revenue related to service contracts is recognized ratably over the period of the contract or in accordance with the terms of the contract, which generally coincides with the performance of the services requested by the customer. Deferred Profit – Revenue deferred pursuant to the Company’s revenue recognition policy, net of the related deferred costs, if any, is recorded as deferred profit in current liabilities. The components of deferred profit are as follows: March 31, September 30, (dollars in thousands) Deferred revenues $ 5,746 $ 7,280 Deferred costs 2,315 2,407 Deferred profit $ 3,431 $ 4,873 Cash Equivalents – The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents consist of amounts invested in U.S. money market funds and various U.S. and foreign bank operating and time deposit accounts. Restricted Cash – Restricted cash of $0.5 million and $0.6 million as of March 31, 2016 , and September 30, 2015, respectively, includes collateral for bank guarantees required by certain customers from whom deposits have been received in advance of shipment. Restricted cash as of March 31, 2016 and September 30, 2015 includes $0.2 million relating the Company's proportional responsibility, assumed in connection with the BTU International Inc. (“BTU”) acquisition, for clean-up costs at a Superfund site. Accounts Receivable and Allowance for Doubtful Accounts – Accounts receivable are recorded at the gross sales price of products sold to customers on trade credit terms. Accounts receivable are considered past due when payment has not been received from the customer within the normal credit terms extended to that customer. A valuation allowance is established for accounts when collection is no longer probable. Accounts are written off against the allowance when the probability of collection is remote. Accounts Receivable - Unbilled and Other – Unbilled and other accounts receivable consist mainly of the contingent portion of the sales price that is not collectible until successful installation of the product. These amounts are generally billed upon final customer acceptance. Concentrations of Credit Risk – Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and trade accounts receivable. The Company’s customers consist of solar cell and semiconductor manufacturers worldwide, as well as the lapping and polishing marketplace. Credit risk is managed by performing ongoing credit evaluations of the customers’ financial condition, by requiring significant deposits where appropriate, and by actively monitoring collections. Letters of credit are required of certain customers depending on the size of the order, type of customer or its creditworthiness, and country of domicile. Reserves for potentially uncollectible receivables are maintained based on an assessment of collectability. The Company maintains its cash, cash equivalents and restricted cash in multiple financial institutions. Approximately 65% of the Company's total cash balances are primarily invested in US Treasuries or are in financial institutions insured by the Federal Deposit Insurance Corporation (FDIC). The remainder of the Company’s cash is maintained with financial institutions with reputable credit in The Netherlands, France and China. As of March 31, 2016 one customer represented 11% of accounts receivable. As of September 30, 2015 , no customer individually represented greater than 10% of accounts receivable. Refer to Note 6 to Condensed Consolidated Financial Statements, Major Customers and Foreign Sales, for information regarding revenue and assets in other countries subject to fluctuation in foreign currency exchange rates. Inventories – Inventories are stated at the lower of cost or net realizable value. Approximately 60% of inventory is valued on an average cost basis with the remainder determined on a first-in, first-out (FIFO) basis. The components of inventories are as follows: March 31, September 30, (dollars in thousands) Purchased parts and raw materials $ 10,707 $ 11,587 Work-in-process 6,797 5,089 Finished goods 6,550 6,653 $ 24,054 $ 23,329 Property, Plant and Equipment – Property, plant and equipment are recorded at cost. Maintenance and repairs are charged to expense as incurred. The cost of property retired or sold and the related accumulated depreciation are removed from the applicable accounts when disposition occurs and any gain or loss is recognized. Depreciation is computed using the straight-line method. Useful lives for equipment, machinery and leasehold improvements range from three to seven years; for furniture and fixtures from five to ten years; and for buildings 20-30 years. The following is a summary of property, plant and equipment: March 31, September 30, (dollars in thousands) Land, building and leasehold improvements $ 18,266 $ 18,095 Equipment and machinery 9,831 9,709 Furniture and fixtures 5,482 5,465 33,579 33,269 Accumulated depreciation and amortization (16,683 ) (15,508 ) $ 16,896 $ 17,761 Goodwill - Goodwill and intangible assets with indefinite lives are not subject to amortization, but are tested for impairment when it is determined that it is more likely than not that the fair value of a reporting unit or the indefinite-lived intangible asset is less than its carrying amount, typically at the end of the fiscal year, or more frequently if circumstances dictate. The following is a summary of activity in goodwill: Solar Semiconductor Polishing Total (dollars in thousands) Goodwill $ 6,617 $ 4,463 $ 728 $ 11,808 Accumulated impairment losses (1,273 ) — — (1,273 ) Carrying value at September 30, 2015 5,344 4,463 728 10,535 Goodwill recognized due to acquisitions — 600 — 600 Net foreign exchange differences 53 — — 53 Carrying value at March 31, 2016 $ 5,397 $ 5,063 $ 728 $ 11,188 Goodwill $ 6,685 $ 5,063 $ 728 $ 12,476 Accumulated impairment losses (1,288 ) — — (1,288 ) Carrying value at March 31, 2016 $ 5,397 $ 5,063 $ 728 $ 11,188 Intangibles – Intangible assets are capitalized and amortized on a straight-line basis over their useful life if the life is determinable. If the life is not determinable, amortization is not recorded. The following is a summary of intangibles: Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount March 31, 2016 September 30, 2015 (dollars in thousands) Customer lists 10 years $ 2,441 $ (884 ) $ 1,557 $ 2,434 $ (808 ) $ 1,626 Technology 5-10 years 3,255 (1,649 ) 1,606 3,223 (1,368 ) 1,855 Trade names 10-15 years 1,458 (125 ) 1,333 1,456 (72 ) 1,384 Other 2-10 years 301 (229 ) 72 278 (204 ) 74 $ 7,455 $ (2,887 ) $ 4,568 $ 7,391 $ (2,452 ) $ 4,939 Long-lived assets - Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Warranty – A limited warranty is provided free of charge, generally for periods of 12 to 24 months, for all purchases of the Company’s new products and systems. Accruals are recorded for estimated warranty costs at the time revenue is recognized. Estimates are based on past experience and take into account the nature of the products under warranty. The following is a summary of activity in accrued warranty expense: Six Months Ended March 31, 2016 2015 (dollars in thousands) Beginning balance $ 793 $ 628 Warranty - merger — 806 Additions for warranties issued during the period 430 211 Reductions in the liability for payments made under the warranty (382 ) $ (673 ) Changes related to pre-existing warranties 3 180 Currency translation adjustment 15 $ (102 ) Ending balance $ 859 $ 1,050 Stock-Based Compensation - The Company measures compensation costs relating to share-based payment transactions based upon the grant date fair value of the award. Those costs are recognized as expense over the requisite service period, which is generally the vesting period. The benefits of tax deductions in excess of recognized compensation cost are credited to additional paid-in capital and reported as cash flow from financing activities rather than as cash flow from operating activities. Stock-based compensation expense reduced the Company’s results of operations by the following amounts: Three Months Ended March 31, Six Months Ended March 31, 2016 2015 2016 2015 (dollars in thousands) Effect on income before income taxes (1) $ (366 ) $ (336 ) $ (708 ) $ (568 ) Effect on income taxes 51 58 98 95 Effect on net income $ (315 ) $ (278 ) $ (610 ) $ (473 ) (1) Stock-based compensation expense is included in selling, general and administrative expenses. Stock options issued under the terms of the Company's option plans have, or will have, an exercise price equal to the fair market value of the common stock at the close of trading on the NASDAQ the day prior to the date of the option grant and expire no later than 10 years from the date of grant, with the most recent grant expiring in 2026. Options issued by the Company generally vest over six months to four years, subject to the Company's board of directors' (the “Board”) discretion. Stock option transactions and the options outstanding are summarized as follows: Six Months Ended March 31, 2016 2015 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Outstanding at beginning of period 1,627,477 $ 9.11 1,063,324 $ 7.37 Granted 350,075 5.25 327,500 9.74 Assumed - merger — — 367,229 14.19 Exercised (9,188 ) 3.27 (11,289 ) 4.91 Forfeited (62,116 ) 13.87 (641 ) 9.08 Outstanding at end of period 1,906,248 $ 8.29 1,746,123 $ 9.26 Exercisable at end of period 1,170,018 $ 9.16 1,102,682 $ 9.90 Weighted average fair value of options granted during the period $ 3.04 $ 5.91 The fair value of options was estimated at the applicable grant date using the Black-Scholes option pricing model with the following assumptions: Six Months Ended March 31, 2016 2015 Risk free interest rate 2% 2% Expected life 6 years 6 years Dividend rate 0% 0% Volatility 63% 67% To estimate expected lives for this valuation, it was assumed that options will be exercised at varying schedules after becoming fully vested. Forfeitures have been estimated at the time of grant and will be revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based upon historical experience. Fair value computations are highly sensitive to the volatility factor assumed; the greater the volatility, the higher the computed fair value of the options granted. The Company uses historical stock prices to determine the volatility factor. The Company awards restricted shares under the existing share-based compensation plans. The Company's restricted share awards vest in equal annual installments over a two to four year period. The total value of these awards is expensed on a ratable basis over the service period of the employees receiving the grants. The “service period” is the time during which the employees receiving grants must remain employees for the shares granted to fully vest. Restricted stock transactions and awards outstanding are summarized as follows: Six Months Ended March 31, 2016 2015 Awards Weighted Average Grant Date Fair Value Awards Weighted Average Grant Date Fair Value Beginning Outstanding 13,540 $ 7.98 35,203 $ 10.13 Released (13,540 ) 7.98 (21,663 ) 11.47 Ending Outstanding — $ — 13,540 $ 7.98 Fair Value of Financial Instruments In accordance with the requirements of the Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), the Company groups its financial assets and liabilities measured at fair value on a recurring basis in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1 - Valuation is based upon quoted market price for identical instruments traded in active markets. Level 2 - Valuation is based upon quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 - Valuation is generated from model-based techniques that use significant assumptions not observable in the market. Valuation techniques include use of discounted cash flow models and similar techniques. In accordance with the requirements of the Fair Value Measurements and Disclosures Topic of the FASB ASC, it is the Company's policy to use observable inputs whenever reasonably practicable in order to minimize the use of unobservable inputs when developing fair value measurements. When available, the Company uses quoted market prices to measure fair value. If market prices are not available, the fair value measurement is based on models that use primarily market based parameters including interest rate yield curves, option volatilities and currency rates. In certain cases, where market rate assumptions are not available, the Company is required to make judgments about assumptions market participants would use to estimate the fair value of a financial instrument. Changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results of current or future values. Cash, Cash Equivalents and Restricted Cash - Included in Cash and Cash Equivalents in the Condensed Consolidated Balance Sheets are money market funds invested in treasury bills, notes and other direct obligations of the U.S. Treasury or are in financial institutions insured by the Federal Deposit Insurance Corporation (FDIC) and foreign bank operating and time deposit accounts. The fair value of this cash equivalent is based on Level 1 inputs in the fair value hierarchy. Receivables and Payables -The recorded amounts of these financial instruments, including accounts receivable and accounts payable, approximate their fair value because of the short maturities of these instruments. If measured at fair value in the financial statements, these financial instruments would be classified as Level 3 in the fair value hierarchy. Debt - The recorded amounts of these financial instruments, including long-term debt and current maturities of long-term debt, approximate fair value and are considered Level 2 in the fair value hierarchy. Pensions - The Company has retirement plans covering substantially all employees. The principal plans are the multiemployer defined benefit pension plans of the Company’s operations in The Netherlands and France and the plan for hourly union employees in Pennsylvania. The multiemployer plans in the United States and France are insignificant to the Company's results of operations and financial condition. The Company's defined contribution plans cover substantially all of the employees in the United States. The Company matches certain employee funds on a discretionary basis while certain subsidiaries require a minimum match to maintain their safe harbor status. Shipping expense – Shipping expenses of $0.3 million and $0.4 million for the three months ended March 31, 2016 and 2015 , respectively, are included in selling, general and administrative expenses. Shipping expenses of $0.8 million and $0.7 million for the six months ended March 31, 2016 and 2015 , respectively, are included in selling, general and administrative expenses. Research, development and engineering expense – Research, development and engineering expenses consist of the cost of employees, consultants and contractors who design, engineer and develop new products and processes; materials and supplies used in those activities; and product prototyping. The Company receives reimbursements through governmental research and development grants which are netted against these expenses when certain conditions have been met. The table below shows gross research and development expenses and grants earned: Three Months Ended Six Months Ended March 31, March 31, March 31, March 31, (dollars in thousands) (dollars in thousands) Research, development and engineering $ 2,525 $ 3,540 $ 5,139 $ 6,113 Grants earned (365 ) (2,790 ) (692 ) (3,527 ) Net research, development and engineering $ 2,160 $ 750 $ 4,447 $ 2,586 Impact of Recently Issued Accounting Pronouncements In April 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-10, "Identifying Performance Obligations and Licensing." This ASU addresses certain implementation issues that have surfaced since the issuance of ASU No. 2014-09 in May 2014. The ASU provides guidance in identifying performance obligations and determining the appropriate accounting for licensing arrangements. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, and for interim periods therein. The Company is in the process of assessing the impact the adoption of this ASU will have on its consolidated financial position, results of operations and cash flows. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718). ASU 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The amendments in this ASU are effective for annual periods beginning after December 15, 2016 and for the interim periods therein. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. The amendments in this ASU are effective for annual periods beginning after December 15, 2017 and for interim periods therein. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. In March 2016, the FASB issued ASU 2016-07, Equity Method and Joint Ventures affect all entities that have an investment that becomes qualified for the equity method of accounting as a result of an increase in the level of ownership or degree of influence. ASU 2016-07 is effective for the Company beginning on January 1, 2017 , early adoption is permitted. The Company is currently evaluating the effect this ASU will have its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities, which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017 and early adoption is not permitted. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes. This ASU requires entities to classify deferred tax liabilities and assets as noncurrent in a classified statement of financial position. This ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for all entities as of the beginning of an interim or annual reporting period. The adoption of this guidance by the Company is not expected to have a material impact on its consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments, which simplifies the accounting for measurement-period adjustments to provisional amounts recognized in a business combination. ASU 2015-16 is effective for fiscal years (and interim reporting periods within those years) beginning after December 15, 2016. The provisions of ASU 2015-16 are not expected to have a material effect on the Company's financial condition, results of operations, or cash flows. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory. This ASU simplifies the measurement of inventory by requiring certain inventory to be measured at the lower of cost or net realizable value. The amendments in this ASU are effective for fiscal years beginning after December 15, 2016 and for interim periods therein. The Company does not expect adoption of this ASU to have a material impact on the Company's consolidated financial position and results of operations. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), that will supersede most current revenue recognition guidance, including industry-specific guidance. The core principle of the new guidance is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include the capitalization and amortization of certain contract costs, ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. Additionally, the guidance requires disclosures related to the nature, amount, timing, and uncertainty of revenue that is recognized. The original effective date for ASU 2014-09 would have required the Company to adopt beginning in its first quarter of 2018. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date, which defers the effective date of ASU 2014-09 for one year and permits early adoption as early as the original effective date of ASU 2014-09. Accordingly, the Company may adopt the standard in either its first quarter of 2018 or 2019. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the timing of its adoption and the impact of adopting the new revenue standard on its consolidated financial statements. |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The quarterly income tax provision is calculated using an estimated annual effective tax rate, based upon expected annual income, permanent items, statutory rates and planned tax strategies in the various jurisdictions in which the Company operates. However, losses in certain jurisdictions and discrete items are treated separately. The gain on the Kingstone transaction, described in Note 10, was treated as a discrete item and accounted for $1.7 million of the tax expense in the quarter, with the tax calculated utilizing the effective tax rate and other discrete items nearly offsetting each other. Deferred tax assets and liabilities reflect the tax effects of temporary differences between the carrying value of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company records a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of a deferred tax asset will not be realized. Our expectations regarding realization of our deferred tax assets is based upon the weight of all available evidence, including such factors as our recent earnings history, expected future taxable income and available tax planning strategies. The Company maintains a valuation allowance with respect to certain state, federal and foreign deferred tax assets that may not be recovered. Each quarter, the valuation allowance is re-evaluated. During the six months ended March 31, 2016 the valuation allowance increased by a net of $1.1 million primarily due to net operating losses in The Netherlands, France and China, partially offset by a decrease in the valuation allowance due to utilization of net operating losses in the United States. The Company classifies all of our uncertain tax positions as non-current income taxes payable. At March 31, 2016 and September 30, 2015, the total amount of unrecognized tax benefits was approximately $2.4 million and $1.8 million, respectively. If recognized, these amounts would favorably impact the effective tax rate. Income taxes payable long-term primarily includes, among other items, withholding taxes that are not due until the related intercompany service fees are paid. The Company classifies interest and penalties related to unrecognized tax benefits as income tax expense. As of March 31, 2016 and September 30, 2015, the Company had an accrual for potential interest and penalties of approximately $2.0 million and $1.8 million, respectively, classified with non-current income taxes payable. The Company and one or more of its subsidiaries file income tax returns in The Netherlands, France, China, Singapore, Malaysia, Hong Kong, and Germany, as well as the U.S. and various states in the U.S. The Company and its subsidiaries have a number of open tax years dictated by statute in each of their respective taxing jurisdictions, but generally is from 3 to 5 years in the jurisdictions in which the Company files tax returns. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share ("EPS") is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similarly to basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if potentially dilutive common shares had been issued. In the case of a net loss, diluted earnings per share is calculated in the same manner as basic EPS. For the three and six months ended March 31, 2016 , options for 1,906,000 shares are excluded from the diluted EPS calculations because they are anti-dilutive. For the three and six months ended March 31, 2015 , options for 1,746,000 shares and 14,000 restricted stock awards were excluded from the diluted EPS calculations because they were anti-dilutive. The following table outlines basic and diluted EPS: Three Months Ended March 31, Six Months Ended March 31, 2016 2015 2016 2015 (in thousands, except per share amounts) (in thousands, except per share amounts) Basic Loss Per Share Computation Net loss attributable to Amtech Systems, Inc. $ (1,499 ) $ (2,321 ) $ (5,513 ) $ (7,515 ) Weighted Average Shares Outstanding: Common stock 13,169 11,997 13,161 10,914 Basic loss per share attributable to Amtech shareholders $ (0.11 ) $ (0.19 ) $ (0.42 ) $ (0.69 ) Diluted Loss Per Share Computation Net loss attributable to Amtech Systems, Inc. $ (1,499 ) $ (2,321 ) $ (5,513 ) $ (7,515 ) Weighted Average Shares Outstanding: Common stock 13,169 11,997 13,161 10,914 Diluted shares 13,169 11,997 13,161 10,914 Diluted loss per share attributable to Amtech shareholders $ (0.11 ) $ (0.19 ) $ (0.42 ) $ (0.69 ) (1) The number of common stock equivalents is calculated using the treasury stock method and the average market price during the period. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Shareholder Rights Plan - On December 15, 2008, the Company and Computershare Trust Company, N.A., as Rights Agent (the “Rights Agent”), entered into an Amended and Restated Rights Agreement (the “Restated Rights Agreement”) which amended and restated the terms governing the previously authorized shareholder rights (each a “Right”) to purchase fractional shares of the Company’s Series A Participating Preferred Stock (“Series A Preferred”) currently attached to each of the Company’s outstanding Common Shares, par value $0.01 per share (“Common Shares”). As amended, each Right entitles the registered holder to purchase from the Company one one-thousandth of a share of Series A Preferred at an exercise price of $51.60 (the “Exercise Price”), subject to adjustment. The Rights will expire 10 years after issuance and will be exercisable if (a) a person or group becomes the beneficial owner of 15% or more of the Company’s common stock or (b) a person or group commences a tender or exchange offer that would result in the offeror beneficially owning 15% or more of the Company’s common stock. The Final Expiration Date (as defined in the Restated Rights Agreement) is December 14, 2018. On October 1, 2015, the Company entered into a Second Amended and Restated Rights Agreement (the “Second Restated Rights Agreement”) with the Rights Agent, which expands the definition of Exempted Person as defined in the Second Restated Rights Agreement to include any person that the Board, in its sole and absolute discretion, exempts from becoming an Acquiring Personas defined in the Second Restated Rights Agreement. A Person deemed an Exempted Person under the Second Restated Rights Agreement cannot trigger any of the Rights provided therein so long as such Exempted Person complies with the terms and conditions by which the Board approved such exemption from the Restated Rights Agreement. As previously disclosed, on October 8, 2015, the Company entered into a Letter Agreement (the “Agreement”) by and between the Company and certain shareholders of the Company who jointly file (the “Joint Filers”) under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). One of the Joint Filers has become a member of our Board after it was approved by the Board. The Agreement permits the Joint Filers, pursuant to the Restated Rights Agreement, to individually acquire shares of common stock of the Company that would, in the aggregate, bring the Joint Filers’ collective ownership to no more than 19.9% of the Company’s issued and outstanding common stock at any time. In the event the Joint Filers’ collective ownership at any time exceeds 19.9% of the Company’s issued and outstanding shares of common stock, the Company is entitled to specific performance and all other remedies entitled to the Company at law or equity, among others. The Company’s board of directors approved the Agreement and transactions contemplated thereunder, and has the sole authority to terminate the Agreement at any time. |
Business Segment Information
Business Segment Information | 6 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information Following the Company’s acquisition of BTU, an evaluation was conducted of the Company’s organizational structure. Beginning with the second quarter of fiscal 2015, the Company made changes to its reportable segments. Prior period amounts have been revised to conform to the current period segment reporting structure. The Company’s three reportable segments are as follows: Solar - The Company is a leading supplier of thermal processing systems, ALD, related automation, parts and services, to the solar/photovoltaic industry and also offers PECVD (plasma-enhanced chemical vapor deposition) equipment to the global solar market. On December 24, 2014, the Company acquired a 51% controlling interest in SoLayTec B.V. (“SoLayTec”) and beginning in the second quarter of 2015, its business has been included in the results for this segment. Semiconductor - In the Company’s Semiconductor segment, it designs, manufactures, sells and services thermal processing equipment and related controls for use by leading semiconductor manufacturers, and in electronics, automotive and other industries. On January 30, 2015, the Company completed its acquisition of BTU and, since the second quarter of 2015, its business has been included in the results for this segment. Polishing - In the Company's Polishing segment, the Company produces consumables and machinery for lapping (fine abrading) and polishing of materials, such as sapphire substrates, optical components, silicon wafers, numerous types of crystal materials, ceramics and metal components. Information concerning our business segments is as follows: Three Months ended March 31, Six Months Ended March 31, 2016 2015 2016 2015 (dollars in thousands) Net Revenues: Solar (1) $ 9,801 $ 9,463 $ 19,344 $ 17,749 Semiconductor 10,507 12,088 21,206 12,820 Polishing 2,175 2,722 4,007 6,100 $ 22,483 $ 24,273 $ 44,557 $ 36,669 Operating income (loss): Solar (1) $ (2,266 ) $ (724 ) $ (4,130 ) $ (3,219 ) Semiconductor (119 ) 730 (279 ) 630 Polishing 386 601 555 1,343 Non-segment related (1,608 ) (2,543 ) (3,681 ) (5,482 ) $ (3,607 ) $ (1,936 ) $ (7,535 ) $ (6,728 ) (1) The financial statement of business units included in the Solar segment include some sales of equipment and parts to the semiconductor, silicon wafer and MEMS industries, comprising less than 25% of the Solar segment revenue. March 31, September 30, (dollars in thousands) Identifiable Assets: Solar $ 46,778 $ 45,717 Semiconductor 46,640 46,912 Polishing 5,714 5,793 Non-segment related 23,596 27,034 $ 122,728 $ 125,456 |
Major Customers and Foreign Sal
Major Customers and Foreign Sales | 6 Months Ended |
Mar. 31, 2016 | |
Major Customers and Foreign Sales [Abstract] | |
Major Customers And Foreign Sales | Major Customers and Foreign Sales During the six months ended March 31, 2016 , no customers represented more than 10% of net revenues. During the six months ended March 31, 2015 , one customer individually represented 19% of net revenues. The Company has operations in The Netherlands, United States, France, and China. Our net revenues were to customers in the following geographic regions: Six Months Ended March 31, 2016 2015 United States 23 % 17 % Other 3 % 3 % Total North America 26 % 20 % China 22 % 28 % Taiwan 12 % 18 % Other 22 % 16 % Total Asia 56 % 62 % Total Europe 18 % 18 % 100 % 100 % |
Long-term Debt
Long-term Debt | 6 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt In January 2015, the Company acquired $7.2 million of long-term debt as part of the BTU acquisition. The debt is secured by the Company's real property in Billerica, Massachusetts, and has a remaining balance of $6.7 million as of March 31, 2016. The debt has an interest rate of 4.4% through September 26, 2018, at which time the interest rate will be adjusted to a per annum fixed rate equal to the aggregate of the Federal Home Loan Board Five Year Classic Advance Rate plus two hundred forty basis points. The maturity date of the debt is September 26, 2023. In December 2014, the Company acquired $2.0 million of long-term debt as part of the SoLayTec B.V. (“SoLayTec”) acquisition. During the six months ended March 31, 2016, SoLayTec borrowed an additional $0.8 million . As of March 31, 2016 the SoLayTec long-term debt has a remaining balance of $3.4 million , with interest capitalized per the agreement bearing interest at rates ranging from 5.95% to 10% and maturity dates ranging from fiscal 2017 to fiscal 2021. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations – As of March 31, 2016 , the Company had purchase obligations in the amount of $19.9 million compared to $9.8 million as of September 30, 2015. These purchase obligations consist of outstanding purchase orders for goods and services. While the amount represents purchase agreements, the actual amounts to be paid may be less if any agreements are renegotiated, canceled or terminated. Development projects – In fiscal 2014, Tempress Systems, Inc. ("Tempress") entered into an agreement with the Energy Research Centre of the Netherlands ("ECN"), a Netherlands government sponsored research institute, for a joint research and development project. Under the terms of the agreement, Tempress sold an ion implanter ("Equipment") to ECN for $1.4 million. Both Tempress and ECN are performing research and development projects utilizing the Equipment at the ECN facilities. Each party to the agreement will have 100% rights to the results of the projects developed separately by the individual parties. Any results co-developed will be jointly owned. Over the four -year period of the agreement, Tempress is required to contribute $1.4 million to the project in the form of installation of the equipment, acceptance testing, project meeting attendance, training, parts, and service, including keeping the equipment in good condition and repair for the first two years of the agreement. As of March 31, 2016, Tempress has contributed $1.1 million of the required $1.4 million to the project. EPA Accrual - As a result of the BTU acquisition, the Company assumed BTU’s proportional responsibility for clean-up costs at a Superfund site. As an equipment manufacturer, BTU generated and disposed of small quantities of solid waste that were considered hazardous under Environment Protection Agency (“EPA”) regulations. Because BTU historically used a waste disposal firm that disposed of the solid waste at a site that the EPA designated as a Superfund site, BTU was named by the EPA as one of the entities responsible for a portion of the expected clean-up costs. Based on the Company's proportional responsibility, as negotiated with and agreed to by the EPA, the Company's liability related to this matter is less than $0.1 million, which is included in Other Accrued Liabilities on the Condensed Consolidated Balance Sheet as of March 31, 2016. In accordance with the agreement, the Company established a letter of credit for $0.2 million to the benefit of the EPA for potential cash payments as settlements for the Company’s proportional liability. Legal Proceedings – The Company and its subsidiaries are defendants from time to time in actions for matters arising out of their business operations. As previously disclosed in the Company’s filings with the SEC, shortly after the Company entered into the merger agreement with BTU, two separate putative stockholder class action complaints (together, the "Stockholder Actions") were filed in the Court of Chancery of the State of Delaware (the "Delaware Court"). The first was filed on November 4, 2014 and the second on November 17, 2014, on behalf of BTU’s public stockholders, against BTU, members of the BTU board, Amtech and the special purpose merger subsidiary. The Stockholder Actions were consolidated on December 4, 2014. The complaints generally alleged that, in connection with entering into the merger agreement, the BTU board of directors breached certain fiduciary duties owed to BTU's stockholders. The complaints sought various forms of declaratory and injunctive relief, as well as compensatory damages. On February 18, 2016, the Delaware Court entered the Order approving the Amended Stipulation of Settlement. As a result, the Released Claims were dismissed with prejudice and without any admission of wrongdoing by any of the parties to the Stockholder Actions. Pursuant to the Amended Stipulation of Settlement, BTU, its insurer(s), or its successor(s) in interest are responsible for payment of fees and expenses in the amount of $325,000 which were paid in full on April 1, 2016. As described above, the Released Claims are limited solely to claims related to any disclosures (or lack thereof) to BTU’s stockholders concerning the merger and any fiduciary claims concerning the decision to enter into the merger. While we are currently unaware of any other pending or threatened litigation related to additional claims arising from the Stockholder Actions, any future claims are uncertain, so additional harm could potentially result to the Company from this litigation, which may cause the Company to incur substantial costs and divert management’s attention from operational matters. |
Investments
Investments | 6 Months Ended |
Mar. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments The Company’s equity method investments include a 15% interest in Kingstone Technology Hong Kong Limited (“Kingstone”). The Company recognizes its portion of net income or losses on a one-quarter lag. The carrying value of the equity method investment in Kingstone was $3.4 million and $2.7 million as of March 31, 2016 and September 30, 2015, respectively. For the three and six months ended March 31, 2016, Amtech's equity income from the investment in Kingstone was $0.7 million and has been included in our condensed consolidated statements of operations in income from equity method investment. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In the fourth quarter of 2015, the Company deconsolidated Kingstone, reducing its ownership to 15% of the Hong Kong holding company. Upon the deconsolidation, Kingstone became a related party of the Company. Based on the terms of the transaction agreements in the second quarter of 2016, the Company received a payment of $4.9 million from Kingstone for its exclusive sale and service rights in the solar ion implant equipment. The company recognized a gain on the sale of $2.6 million for the three and six months ended March 31, 2016, which is included in our condensed consolidated statement of operations in Gain on sale of other assets. At March 31, 2016, the Company's related accounts receivable due from Kingstone were $0.5 million , which are included in Accounts Receivable on the Condensed Consolidated Balance Sheet. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation - Amtech Systems, Inc. (the “Company” or “Amtech”) is a global manufacturer of capital equipment, atomic layer deposition (“ALD”) including thermal processing, silicon wafer handling automation, and related consumables used in fabricating solar cells, LED and semiconductor devices. The Company sells these products to solar cell and semiconductor manufacturers worldwide, particularly in Asia, United States and Europe. The Company serves niche markets in industries that are experiencing rapid technological advances and which historically have been very cyclical. Therefore, future profitability and growth depend on the Company’s ability to develop or acquire and market profitable new products and on its ability to adapt to cyclical trends. The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”), and consequently do not include all disclosures normally required by accounting principles generally accepted in the United States of America. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all adjustments necessary, all of which are of a normal and recurring nature, to present fairly our financial position, results of operations and cash flows. Certain information and note disclosures normally included in financial statements have been condensed or omitted pursuant to the rules and regulations of the SEC. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2015. The consolidated results of operations for the three and six months ended March 31, 2016, are not necessarily indicative of the results to be expected for the full fiscal year. |
Principles of Consolidation | Principles of Consolidation – The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries and subsidiaries in which it has a controlling interest. The Company reports noncontrolling interests in consolidated entities as a component of equity separate from the Company’s equity. The equity method of accounting is used for investments over which the Company has a significant influence but not a controlling financial interest. All material intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates - The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition - The Company reviews product and service sales contracts with multiple deliverables to determine if separate units of accounting are present. Where separate units of accounting exist, revenue allocated to delivered items is the lower of the relative selling price of the delivered items in the sales arrangement or the portion of the selling price that is not contingent upon performance of the service. The Company recognizes revenue when persuasive evidence of an arrangement exists; the product has been delivered and title has transferred, or services have been rendered; and the seller’s price to the buyer is fixed or determinable and collectability is reasonably assured. For us, this policy generally results in revenue recognition at the following points: 1. For the Company's equipment business, transactions where legal title passes to the customer upon shipment, revenue is recognized upon shipment for those products where the customer’s defined specifications have been met with at least two similarly configured systems and processes for a comparably situated customer. Selling prices may include both equipment and services, i.e., installation and start-up services performed by our service technicians. The equipment and services are multiple deliverables. Certain equipment that has a positive track record of successful installation and customer acceptance are considered to be routine systems. Revenue recognition upon delivery of such equipment that has been routinely installed and accepted is equal to the total selling price minus the relative selling price of the undelivered services. Where there have been installation and acceptance of more than two similarly configured items of equipment, but installation and acceptance have not become routine, recognition of revenue upon delivery of equipment is limited to the lesser of (i) the total selling price minus the relative selling price of the undelivered services or (ii) the non-contingent amount. Since the Company only defers those costs directly related to installation, or other unit of accounting not yet delivered, and the contingent portion of the contract price is often considerably greater than the relative selling price of those items, the policy at times will result in deferral of profit that is disproportionate in relation to the deferred revenue. When this is the case, the gross margin recognized in one period will be lower and the gross margin reported in a subsequent period will improve. 2. For products where the customer’s defined specifications have not been met with at least two similarly configured systems and processes, the revenue and directly related costs are deferred at the time of shipment and later recognized at the time of customer acceptance or when this criterion has been met. On occasion, the Company has experienced longer than expected delays in receiving cash from certain customers pending final installation or system acceptance. If some customers refuse to pay the final payment, or otherwise delay final acceptance or installation, the deferred revenue would not be recognized, adversely affecting future cash flows and operating results. 3. Sales of certain equipment, spare parts and consumables are recognized upon shipment, as there are no post shipment obligations other than standard warranties. 4. Service revenue is recognized upon performance of the services requested by the customer. Revenue related to service contracts is recognized ratably over the period of the contract or in accordance with the terms of the contract, which generally coincides with the performance of the services requested by the customer. |
Deferred Profit | Deferred Profit – Revenue deferred pursuant to the Company’s revenue recognition policy, net of the related deferred costs, if any, is recorded as deferred profit in current liabilities. |
Cash Equivalents | Cash Equivalents – The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents consist of amounts invested in U.S. money market funds and various U.S. and foreign bank operating and time deposit accounts. |
Restricted Cash | Restricted Cash – Restricted cash of $0.5 million and $0.6 million as of March 31, 2016 , and September 30, 2015, respectively, includes collateral for bank guarantees required by certain customers from whom deposits have been received in advance of shipment. Restricted cash as of March 31, 2016 and September 30, 2015 includes $0.2 million relating the Company's proportional responsibility, assumed in connection with the BTU International Inc. (“BTU”) acquisition, for clean-up costs at a Superfund site. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts – Accounts receivable are recorded at the gross sales price of products sold to customers on trade credit terms. Accounts receivable are considered past due when payment has not been received from the customer within the normal credit terms extended to that customer. A valuation allowance is established for accounts when collection is no longer probable. Accounts are written off against the allowance when the probability of collection is remote. Accounts Receivable - Unbilled and Other – Unbilled and other accounts receivable consist mainly of the contingent portion of the sales price that is not collectible until successful installation of the product. These amounts are generally billed upon final customer acceptance. |
Concentrations of Credit Risk | Concentrations of Credit Risk – Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and trade accounts receivable. The Company’s customers consist of solar cell and semiconductor manufacturers worldwide, as well as the lapping and polishing marketplace. Credit risk is managed by performing ongoing credit evaluations of the customers’ financial condition, by requiring significant deposits where appropriate, and by actively monitoring collections. Letters of credit are required of certain customers depending on the size of the order, type of customer or its creditworthiness, and country of domicile. Reserves for potentially uncollectible receivables are maintained based on an assessment of collectability. The Company maintains its cash, cash equivalents and restricted cash in multiple financial institutions. Approximately 65% of the Company's total cash balances are primarily invested in US Treasuries or are in financial institutions insured by the Federal Deposit Insurance Corporation (FDIC). The remainder of the Company’s cash is maintained with financial institutions with reputable credit in The Netherlands, France and China. |
Inventories | Inventories – Inventories are stated at the lower of cost or net realizable value. Approximately 60% of inventory is valued on an average cost basis with the remainder determined on a first-in, first-out (FIFO) basis |
Property, Plant and Equipment | Property, Plant and Equipment – Property, plant and equipment are recorded at cost. Maintenance and repairs are charged to expense as incurred. The cost of property retired or sold and the related accumulated depreciation are removed from the applicable accounts when disposition occurs and any gain or loss is recognized. Depreciation is computed using the straight-line method. Useful lives for equipment, machinery and leasehold improvements range from three to seven years; for furniture and fixtures from five to ten years; and for buildings 20-30 years. |
Goodwill | Goodwill - Goodwill and intangible assets with indefinite lives are not subject to amortization, but are tested for impairment when it is determined that it is more likely than not that the fair value of a reporting unit or the indefinite-lived intangible asset is less than its carrying amount, typically at the end of the fiscal year, or more frequently if circumstances dictate. |
Intangibles | Intangibles – Intangible assets are capitalized and amortized on a straight-line basis over their useful life if the life is determinable. If the life is not determinable, amortization is not recorded. |
Long-lived assets | Long-lived assets - Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. |
Warranty | Warranty – A limited warranty is provided free of charge, generally for periods of 12 to 24 months, for all purchases of the Company’s new products and systems. Accruals are recorded for estimated warranty costs at the time revenue is recognized. Estimates are based on past experience and take into account the nature of the products under warranty. |
Stock-Based Compensation | Stock-Based Compensation - The Company measures compensation costs relating to share-based payment transactions based upon the grant date fair value of the award. Those costs are recognized as expense over the requisite service period, which is generally the vesting period. The benefits of tax deductions in excess of recognized compensation cost are credited to additional paid-in capital and reported as cash flow from financing activities rather than as cash flow from operating activities. Stock-based compensation expense reduced the Company’s results of operations by the following amounts: Three Months Ended March 31, Six Months Ended March 31, 2016 2015 2016 2015 (dollars in thousands) Effect on income before income taxes (1) $ (366 ) $ (336 ) $ (708 ) $ (568 ) Effect on income taxes 51 58 98 95 Effect on net income $ (315 ) $ (278 ) $ (610 ) $ (473 ) (1) Stock-based compensation expense is included in selling, general and administrative expenses. Stock options issued under the terms of the Company's option plans have, or will have, an exercise price equal to the fair market value of the common stock at the close of trading on the NASDAQ the day prior to the date of the option grant and expire no later than 10 years from the date of grant, with the most recent grant expiring in 2026. Options issued by the Company generally vest over six months to four years, subject to the Company's board of directors' (the “Board”) discretion. Stock option transactions and the options outstanding are summarized as follows: Six Months Ended March 31, 2016 2015 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Outstanding at beginning of period 1,627,477 $ 9.11 1,063,324 $ 7.37 Granted 350,075 5.25 327,500 9.74 Assumed - merger — — 367,229 14.19 Exercised (9,188 ) 3.27 (11,289 ) 4.91 Forfeited (62,116 ) 13.87 (641 ) 9.08 Outstanding at end of period 1,906,248 $ 8.29 1,746,123 $ 9.26 Exercisable at end of period 1,170,018 $ 9.16 1,102,682 $ 9.90 Weighted average fair value of options granted during the period $ 3.04 $ 5.91 The fair value of options was estimated at the applicable grant date using the Black-Scholes option pricing model with the following assumptions: Six Months Ended March 31, 2016 2015 Risk free interest rate 2% 2% Expected life 6 years 6 years Dividend rate 0% 0% Volatility 63% 67% To estimate expected lives for this valuation, it was assumed that options will be exercised at varying schedules after becoming fully vested. Forfeitures have been estimated at the time of grant and will be revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based upon historical experience. Fair value computations are highly sensitive to the volatility factor assumed; the greater the volatility, the higher the computed fair value of the options granted. The Company uses historical stock prices to determine the volatility factor. The Company awards restricted shares under the existing share-based compensation plans. The Company's restricted share awards vest in equal annual installments over a two to four year period. The total value of these awards is expensed on a ratable basis over the service period of the employees receiving the grants. The “service period” is the time during which the employees receiving grants must remain employees for the shares granted to fully vest. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments In accordance with the requirements of the Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), the Company groups its financial assets and liabilities measured at fair value on a recurring basis in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1 - Valuation is based upon quoted market price for identical instruments traded in active markets. Level 2 - Valuation is based upon quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 - Valuation is generated from model-based techniques that use significant assumptions not observable in the market. Valuation techniques include use of discounted cash flow models and similar techniques. In accordance with the requirements of the Fair Value Measurements and Disclosures Topic of the FASB ASC, it is the Company's policy to use observable inputs whenever reasonably practicable in order to minimize the use of unobservable inputs when developing fair value measurements. When available, the Company uses quoted market prices to measure fair value. If market prices are not available, the fair value measurement is based on models that use primarily market based parameters including interest rate yield curves, option volatilities and currency rates. In certain cases, where market rate assumptions are not available, the Company is required to make judgments about assumptions market participants would use to estimate the fair value of a financial instrument. Changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results of current or future values. Cash, Cash Equivalents and Restricted Cash - Included in Cash and Cash Equivalents in the Condensed Consolidated Balance Sheets are money market funds invested in treasury bills, notes and other direct obligations of the U.S. Treasury or are in financial institutions insured by the Federal Deposit Insurance Corporation (FDIC) and foreign bank operating and time deposit accounts. The fair value of this cash equivalent is based on Level 1 inputs in the fair value hierarchy. Receivables and Payables -The recorded amounts of these financial instruments, including accounts receivable and accounts payable, approximate their fair value because of the short maturities of these instruments. If measured at fair value in the financial statements, these financial instruments would be classified as Level 3 in the fair value hierarchy. Debt - The recorded amounts of these financial instruments, including long-term debt and current maturities of long-term debt, approximate fair value and are considered Level 2 in the fair value hierarchy. |
Pensions | Pensions - The Company has retirement plans covering substantially all employees. The principal plans are the multiemployer defined benefit pension plans of the Company’s operations in The Netherlands and France and the plan for hourly union employees in Pennsylvania. The multiemployer plans in the United States and France are insignificant to the Company's results of operations and financial condition. The Company's defined contribution plans cover substantially all of the employees in the United States. The Company matches certain employee funds on a discretionary basis while certain subsidiaries require a minimum match to maintain their safe harbor status. |
Shipping Expense | Shipping expense – Shipping expenses of $0.3 million and $0.4 million for the three months ended March 31, 2016 and 2015 , respectively, are included in selling, general and administrative expenses. |
Research and Development Expense | Research, development and engineering expense – Research, development and engineering expenses consist of the cost of employees, consultants and contractors who design, engineer and develop new products and processes; materials and supplies used in those activities; and product prototyping. The Company receives reimbursements through governmental research and development grants which are netted against these expenses when certain conditions have been met. |
Impact of Recently Issued Accounting Pronouncements | Impact of Recently Issued Accounting Pronouncements In April 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-10, "Identifying Performance Obligations and Licensing." This ASU addresses certain implementation issues that have surfaced since the issuance of ASU No. 2014-09 in May 2014. The ASU provides guidance in identifying performance obligations and determining the appropriate accounting for licensing arrangements. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017, and for interim periods therein. The Company is in the process of assessing the impact the adoption of this ASU will have on its consolidated financial position, results of operations and cash flows. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718). ASU 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The amendments in this ASU are effective for annual periods beginning after December 15, 2016 and for the interim periods therein. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. The amendments in this ASU are effective for annual periods beginning after December 15, 2017 and for interim periods therein. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. In March 2016, the FASB issued ASU 2016-07, Equity Method and Joint Ventures affect all entities that have an investment that becomes qualified for the equity method of accounting as a result of an increase in the level of ownership or degree of influence. ASU 2016-07 is effective for the Company beginning on January 1, 2017 , early adoption is permitted. The Company is currently evaluating the effect this ASU will have its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities, which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017 and early adoption is not permitted. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes. This ASU requires entities to classify deferred tax liabilities and assets as noncurrent in a classified statement of financial position. This ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for all entities as of the beginning of an interim or annual reporting period. The adoption of this guidance by the Company is not expected to have a material impact on its consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments, which simplifies the accounting for measurement-period adjustments to provisional amounts recognized in a business combination. ASU 2015-16 is effective for fiscal years (and interim reporting periods within those years) beginning after December 15, 2016. The provisions of ASU 2015-16 are not expected to have a material effect on the Company's financial condition, results of operations, or cash flows. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory. This ASU simplifies the measurement of inventory by requiring certain inventory to be measured at the lower of cost or net realizable value. The amendments in this ASU are effective for fiscal years beginning after December 15, 2016 and for interim periods therein. The Company does not expect adoption of this ASU to have a material impact on the Company's consolidated financial position and results of operations. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), that will supersede most current revenue recognition guidance, including industry-specific guidance. The core principle of the new guidance is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include the capitalization and amortization of certain contract costs, ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. Additionally, the guidance requires disclosures related to the nature, amount, timing, and uncertainty of revenue that is recognized. The original effective date for ASU 2014-09 would have required the Company to adopt beginning in its first quarter of 2018. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date, which defers the effective date of ASU 2014-09 for one year and permits early adoption as early as the original effective date of ASU 2014-09. Accordingly, the Company may adopt the standard in either its first quarter of 2018 or 2019. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the timing of its adoption and the impact of adopting the new revenue standard on its consolidated financial statements. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Deferred Profit | The components of deferred profit are as follows: March 31, September 30, (dollars in thousands) Deferred revenues $ 5,746 $ 7,280 Deferred costs 2,315 2,407 Deferred profit $ 3,431 $ 4,873 |
Schedule of Inventory, Current | The components of inventories are as follows: March 31, September 30, (dollars in thousands) Purchased parts and raw materials $ 10,707 $ 11,587 Work-in-process 6,797 5,089 Finished goods 6,550 6,653 $ 24,054 $ 23,329 |
Property, Plant and Equipment | The following is a summary of property, plant and equipment: March 31, September 30, (dollars in thousands) Land, building and leasehold improvements $ 18,266 $ 18,095 Equipment and machinery 9,831 9,709 Furniture and fixtures 5,482 5,465 33,579 33,269 Accumulated depreciation and amortization (16,683 ) (15,508 ) $ 16,896 $ 17,761 |
Schedule of Goodwill | Solar Semiconductor Polishing Total (dollars in thousands) Goodwill $ 6,617 $ 4,463 $ 728 $ 11,808 Accumulated impairment losses (1,273 ) — — (1,273 ) Carrying value at September 30, 2015 5,344 4,463 728 10,535 Goodwill recognized due to acquisitions — 600 — 600 Net foreign exchange differences 53 — — 53 Carrying value at March 31, 2016 $ 5,397 $ 5,063 $ 728 $ 11,188 Goodwill $ 6,685 $ 5,063 $ 728 $ 12,476 Accumulated impairment losses (1,288 ) — — (1,288 ) Carrying value at March 31, 2016 $ 5,397 $ 5,063 $ 728 $ 11,188 |
Schedule of Finite-Lived Intangible Assets | The following is a summary of intangibles: Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount March 31, 2016 September 30, 2015 (dollars in thousands) Customer lists 10 years $ 2,441 $ (884 ) $ 1,557 $ 2,434 $ (808 ) $ 1,626 Technology 5-10 years 3,255 (1,649 ) 1,606 3,223 (1,368 ) 1,855 Trade names 10-15 years 1,458 (125 ) 1,333 1,456 (72 ) 1,384 Other 2-10 years 301 (229 ) 72 278 (204 ) 74 $ 7,455 $ (2,887 ) $ 4,568 $ 7,391 $ (2,452 ) $ 4,939 |
Schedule of Product Warranty Liability | Six Months Ended March 31, 2016 2015 (dollars in thousands) Beginning balance $ 793 $ 628 Warranty - merger — 806 Additions for warranties issued during the period 430 211 Reductions in the liability for payments made under the warranty (382 ) $ (673 ) Changes related to pre-existing warranties 3 180 Currency translation adjustment 15 $ (102 ) Ending balance $ 859 $ 1,050 |
Effects of share-based compensation expense | Stock-based compensation expense reduced the Company’s results of operations by the following amounts: Three Months Ended March 31, Six Months Ended March 31, 2016 2015 2016 2015 (dollars in thousands) Effect on income before income taxes (1) $ (366 ) $ (336 ) $ (708 ) $ (568 ) Effect on income taxes 51 58 98 95 Effect on net income $ (315 ) $ (278 ) $ (610 ) $ (473 ) (1) Stock-based compensation expense is included in selling, general and administrative expenses. |
Schedule of Share-based Compensation, Stock Options, Activity | Stock option transactions and the options outstanding are summarized as follows: Six Months Ended March 31, 2016 2015 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Outstanding at beginning of period 1,627,477 $ 9.11 1,063,324 $ 7.37 Granted 350,075 5.25 327,500 9.74 Assumed - merger — — 367,229 14.19 Exercised (9,188 ) 3.27 (11,289 ) 4.91 Forfeited (62,116 ) 13.87 (641 ) 9.08 Outstanding at end of period 1,906,248 $ 8.29 1,746,123 $ 9.26 Exercisable at end of period 1,170,018 $ 9.16 1,102,682 $ 9.90 Weighted average fair value of options granted during the period $ 3.04 $ 5.91 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of options was estimated at the applicable grant date using the Black-Scholes option pricing model with the following assumptions: Six Months Ended March 31, 2016 2015 Risk free interest rate 2% 2% Expected life 6 years 6 years Dividend rate 0% 0% Volatility 63% 67% |
Schedule of Share-based Compensation, Restricted Stock Activity | Restricted stock transactions and awards outstanding are summarized as follows: Six Months Ended March 31, 2016 2015 Awards Weighted Average Grant Date Fair Value Awards Weighted Average Grant Date Fair Value Beginning Outstanding 13,540 $ 7.98 35,203 $ 10.13 Released (13,540 ) 7.98 (21,663 ) 11.47 Ending Outstanding — $ — 13,540 $ 7.98 |
Research and Development Expense | The table below shows gross research and development expenses and grants earned: Three Months Ended Six Months Ended March 31, March 31, March 31, March 31, (dollars in thousands) (dollars in thousands) Research, development and engineering $ 2,525 $ 3,540 $ 5,139 $ 6,113 Grants earned (365 ) (2,790 ) (692 ) (3,527 ) Net research, development and engineering $ 2,160 $ 750 $ 4,447 $ 2,586 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table outlines basic and diluted EPS: Three Months Ended March 31, Six Months Ended March 31, 2016 2015 2016 2015 (in thousands, except per share amounts) (in thousands, except per share amounts) Basic Loss Per Share Computation Net loss attributable to Amtech Systems, Inc. $ (1,499 ) $ (2,321 ) $ (5,513 ) $ (7,515 ) Weighted Average Shares Outstanding: Common stock 13,169 11,997 13,161 10,914 Basic loss per share attributable to Amtech shareholders $ (0.11 ) $ (0.19 ) $ (0.42 ) $ (0.69 ) Diluted Loss Per Share Computation Net loss attributable to Amtech Systems, Inc. $ (1,499 ) $ (2,321 ) $ (5,513 ) $ (7,515 ) Weighted Average Shares Outstanding: Common stock 13,169 11,997 13,161 10,914 Diluted shares 13,169 11,997 13,161 10,914 Diluted loss per share attributable to Amtech shareholders $ (0.11 ) $ (0.19 ) $ (0.42 ) $ (0.69 ) (1) The number of common stock equivalents is calculated using the treasury stock method and the average market price during the period. |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information concerning our business segments is as follows: Three Months ended March 31, Six Months Ended March 31, 2016 2015 2016 2015 (dollars in thousands) Net Revenues: Solar (1) $ 9,801 $ 9,463 $ 19,344 $ 17,749 Semiconductor 10,507 12,088 21,206 12,820 Polishing 2,175 2,722 4,007 6,100 $ 22,483 $ 24,273 $ 44,557 $ 36,669 Operating income (loss): Solar (1) $ (2,266 ) $ (724 ) $ (4,130 ) $ (3,219 ) Semiconductor (119 ) 730 (279 ) 630 Polishing 386 601 555 1,343 Non-segment related (1,608 ) (2,543 ) (3,681 ) (5,482 ) $ (3,607 ) $ (1,936 ) $ (7,535 ) $ (6,728 ) (1) The financial statement of business units included in the Solar segment include some sales of equipment and parts to the semiconductor, silicon wafer and MEMS industries, comprising less than 25% of the Solar segment revenue. March 31, September 30, (dollars in thousands) Identifiable Assets: Solar $ 46,778 $ 45,717 Semiconductor 46,640 46,912 Polishing 5,714 5,793 Non-segment related 23,596 27,034 $ 122,728 $ 125,456 |
Major Customers and Foreign S21
Major Customers and Foreign Sales (Tables) | 6 Months Ended |
Mar. 31, 2016 | |
Major Customers and Foreign Sales [Abstract] | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | Our net revenues were to customers in the following geographic regions: Six Months Ended March 31, 2016 2015 United States 23 % 17 % Other 3 % 3 % Total North America 26 % 20 % China 22 % 28 % Taiwan 12 % 18 % Other 22 % 16 % Total Asia 56 % 62 % Total Europe 18 % 18 % 100 % 100 % |
Summary of Significant Accoun22
Summary of Significant Accounting Policies - Deferred Profit (Details) $ in Thousands | Mar. 31, 2016USD ($)systemsequipment | Sep. 30, 2015USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of similarly configured systems and processes | systems | 2 | |
Number of similarly configured items of equipment | equipment | 2 | |
Deferred revenues | $ 5,746 | $ 7,280 |
Deferred costs | 2,315 | 2,407 |
Deferred profit | $ 3,431 | $ 4,873 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Sep. 30, 2015 |
Other Commitments [Line Items] | ||
Restricted cash | $ 535 | $ 638 |
Environmental Restoration Costs | Superfund Site | ||
Other Commitments [Line Items] | ||
Restricted cash | $ 200 | $ 200 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies - Concentrations of Credit Risk (Details) - Customer | 6 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Sep. 30, 2015 | |
Accounts Receivable | Customer Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.00% | |
Number of customers | 1 | 0 |
Customer With Largest Receivable Balance | Accounts Receivable | Customer Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 11.00% | |
US Treasuries and FDIC Insured | Cash and Cash Equivalents and Restricted Cash | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 65.00% |
Summary of Significant Accoun25
Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Percentage of average cost inventory | 60.00% | 60.00% | |
Inventory, Net [Abstract] | |||
Purchased parts and raw materials | $ 10,707 | $ 11,587 | |
Work-in-process | 6,797 | 5,089 | |
Finished goods | 6,550 | 6,653 | |
Inventory | $ 24,054 | $ 23,329 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2016 | Sep. 30, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 33,579 | $ 33,269 |
Accumulated depreciation and amortization | (16,683) | (15,508) |
Property, plant and equipment - net | 16,896 | 17,761 |
Land, building and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 18,266 | 18,095 |
Land, building and leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life (in years) | 3 years | |
Land, building and leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life (in years) | 7 years | |
Leasehold Improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life (in years) | 3 years | |
Leasehold Improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life (in years) | 7 years | |
Equipment and machinery | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 9,831 | 9,709 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 5,482 | $ 5,465 |
Furniture and fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life (in years) | 5 years | |
Furniture and fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life (in years) | 10 years | |
Building | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life (in years) | 20 years | |
Building | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life (in years) | 30 years |
Summary of Significant Accoun27
Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2016 | Sep. 30, 2015 | |
Goodwill [Roll Forward] | ||
Goodwill, gross, beginning of year | $ 11,808 | |
Accumulated impairment losses | (1,273) | |
Goodwill, net, beginning of year | 11,188 | $ 10,535 |
Goodwill recognized due to acquisitions | 600 | |
Net foreign exchange differences | 53 | |
Goodwill, gross, end of quarter | 12,476 | |
Accumulated impairment losses | (1,288) | |
Goodwill, net, end of quarter | 11,188 | |
Operating Segments | Solar | ||
Goodwill [Roll Forward] | ||
Goodwill, gross, beginning of year | 6,617 | |
Accumulated impairment losses | (1,273) | |
Goodwill, net, beginning of year | 5,397 | 5,344 |
Goodwill recognized due to acquisitions | 0 | |
Net foreign exchange differences | 53 | |
Goodwill, gross, end of quarter | 6,685 | |
Accumulated impairment losses | (1,288) | |
Goodwill, net, end of quarter | 5,397 | |
Operating Segments | Semiconductor | ||
Goodwill [Roll Forward] | ||
Goodwill, gross, beginning of year | 4,463 | |
Accumulated impairment losses | 0 | |
Goodwill, net, beginning of year | 5,063 | 4,463 |
Goodwill recognized due to acquisitions | 600 | |
Net foreign exchange differences | 0 | |
Goodwill, gross, end of quarter | 5,063 | |
Accumulated impairment losses | 0 | |
Goodwill, net, end of quarter | 5,063 | |
Operating Segments | Polishing | ||
Goodwill [Roll Forward] | ||
Goodwill, gross, beginning of year | 728 | |
Accumulated impairment losses | 0 | |
Goodwill, net, beginning of year | 728 | $ 728 |
Goodwill recognized due to acquisitions | 0 | |
Net foreign exchange differences | 0 | |
Goodwill, gross, end of quarter | 728 | |
Accumulated impairment losses | 0 | |
Goodwill, net, end of quarter | $ 728 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies - Intangibles (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2016 | Sep. 30, 2015 | |
Acquired Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 7,455 | $ 7,391 |
Accumulated Amortization | (2,887) | (2,452) |
Net Carrying Amount | 4,568 | 4,939 |
Customer lists | ||
Acquired Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,441 | 2,434 |
Accumulated Amortization | (884) | (808) |
Net Carrying Amount | $ 1,557 | 1,626 |
Useful Life (in years) | 10 years | |
Technology | ||
Acquired Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 3,255 | 3,223 |
Accumulated Amortization | (1,649) | (1,368) |
Net Carrying Amount | $ 1,606 | 1,855 |
Technology | Minimum | ||
Acquired Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 5 years | |
Technology | Maximum | ||
Acquired Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 10 years | |
Trade names | ||
Acquired Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,458 | 1,456 |
Accumulated Amortization | (125) | (72) |
Net Carrying Amount | $ 1,333 | 1,384 |
Trade names | Minimum | ||
Acquired Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 10 years | |
Trade names | Maximum | ||
Acquired Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 15 years | |
Other | ||
Acquired Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 301 | 278 |
Accumulated Amortization | (229) | (204) |
Net Carrying Amount | $ 72 | $ 74 |
Other | Minimum | ||
Acquired Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 2 years | |
Other | Maximum | ||
Acquired Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 10 years |
Summary of Significant Accoun29
Summary of Significant Accounting Policies - Warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Warranty beginning balance | $ 793 | $ 793 | $ 628 |
Warranty - merger | 0 | 806 | |
Additions for warranties issued during the period | 430 | 211 | |
Reductions in the liability for payments made under the warranty | 382 | 673 | |
Changes related to pre-existing warranties (including adjustments related to changes in estimates) | 3 | 180 | |
Currency translation adjustment | 15 | (102) | |
Warranty ending balance | $ 859 | $ 1,050 | |
Minimum | |||
Product Warranty [Line Items] | |||
Standard product warranty, period | 12 months | ||
Maximum | |||
Product Warranty [Line Items] | |||
Standard product warranty, period | 24 months |
Summary of Significant Accoun30
Summary of Significant Accounting Policies - Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Effect on income before income taxes | $ (366) | $ (336) | $ (708) | $ (568) | |
Effect on income taxes | 51 | 58 | 98 | 95 | |
Effect on net income | $ (315) | $ (278) | $ (610) | $ (473) | |
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Beginning Outstanding (in shares) | 13,540 | 13,540 | 35,203 | ||
Released (in shares) | (13,540) | (21,663) | |||
Ending Outstanding (in shares) | 0 | 13,540 | 0 | 13,540 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||
Beginning Outstanding, Weighted Average Grant Date Fair Value (usd per share) | $ 7.98 | $ 7.98 | $ 10.13 | ||
Released, Weighted Average Grant Date Fair Value (usd per share) | 7.98 | 11.47 | |||
Ending Outstanding, Weighted Average Grant Date Fair Value (usd per share) | $ 0 | $ 7.98 | $ 0 | $ 7.98 | |
Restricted Stock | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Option vesting period (in years) | 4 years | ||||
Restricted Stock | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Option vesting period (in years) | 2 years | ||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Outstanding at beginning of period (in shares) | 1,627,477 | 1,627,477 | 1,063,324 | ||
Granted (in shares) | 350,075 | 327,500 | |||
Assumed - Merger (in shares) | 0 | 367,229 | |||
Exercised (in shares) | (9,188) | (11,289) | |||
Forfeited (in shares) | (62,116) | (641) | |||
Outstanding at end of period (in shares) | 1,906,248 | 1,746,123 | 1,906,248 | 1,746,123 | |
Exercisable at end of period (in shares) | 1,170,018 | 1,102,682 | 1,170,018 | 1,102,682 | |
Weighted average fair value of options granted during the period (usd per share) | $ 3.04 | $ 5.91 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||||
Outstanding at beginning of period, Weighted Average Exercise Price (usd per share) | $ 9.11 | 9.11 | 7.37 | ||
Granted, Weighted Average Exercise Price (usd per share) | 5.25 | 9.74 | |||
Assumed - merger, Weighted Average Exercise Price (usd per share) | 0 | 14.19 | |||
Exercised, Weighted Average Exercise Price (usd per share) | 3.27 | 4.91 | |||
Forfeited, Weighted Average Exercise Price (usd per share) | 13.87 | 9.08 | |||
Outstanding at end of period, Weighted Average Exercise Price (usd per share) | $ 8.29 | $ 9.26 | 8.29 | 9.26 | |
Exercisable at end of period, Weighted Average Exercise Price (usd per share) | $ 9.16 | $ 9.90 | $ 9.16 | $ 9.90 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||
Risk free interest rate | 2.00% | 2.00% | |||
Expected life | 6 years | 6 years | |||
Dividend rate | 0.00% | 0.00% | |||
Volatility | 63.00% | 67.00% | |||
Stock Options | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Option expiration period (in years) | 10 years | ||||
Option vesting period (in years) | 4 years | ||||
Stock Options | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Option vesting period (in years) | 6 months |
Summary of Significant Accoun31
Summary of Significant Accounting Policies - Shipping Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Shipping expenses | $ 0.3 | $ 0.4 | $ 0.8 | $ 0.7 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies - Research and Development Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Research, development and engineering | $ 2,525 | $ 3,540 | $ 5,139 | $ 6,113 |
Grants earned | (365) | (2,790) | (692) | (3,527) |
Net research, development and engineering | $ 2,160 | $ 750 | $ 4,447 | $ 2,586 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2016 | Sep. 30, 2015 | |
Income Tax Contingency [Line Items] | ||
Valuation allowance increase | $ 1.1 | |
Unrecognized tax benefits that would impact effective tax rate | 2.4 | $ 1.8 |
Unrecognized tax benefits, income tax penalties and interest accrued | $ 2 | $ 1.8 |
Minimum | ||
Income Tax Contingency [Line Items] | ||
Number of years open for tax examinations | 3 years | |
Maximum | ||
Income Tax Contingency [Line Items] | ||
Number of years open for tax examinations | 5 years |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Net income (loss) attributable to Amtech Systems, Inc. | $ (1,499) | $ (2,321) | $ (2,321) | $ (5,513) | $ (7,515) |
Weighted average shares outstanding (in shares) | 13,169,000 | 11,997,000 | 11,997,000 | 13,161,000 | 10,914,000 |
Basic income (loss) per share attributable to Amtech shareholders (dollars per share) | $ (0.11) | $ (0.19) | $ (0.19) | $ (0.42) | $ (0.69) |
Diluted shares (in shares) | 13,169,000 | 11,997,000 | 11,997,000 | 13,161,000 | 10,914,000 |
Diluted income (loss) per share attributable to Amtech shareholders (dollars per share) | $ (0.11) | $ (0.19) | $ (0.19) | $ (0.42) | $ (0.69) |
Stock Options | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share, amount | 1,906,000 | 1,746,000 | 1,906,000 | 1,746,000 | |
Restricted Stock | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share, amount | 14,000 | 14,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - $ / shares | Oct. 08, 2015 | Dec. 15, 2008 | Dec. 31, 2015 | Sep. 30, 2015 |
Class of Stock [Line Items] | ||||
Common stock, par value | $ 0.01 | $ 0.01 | ||
Minimum percent ownership of common stock for exercise of rights | 15.00% | |||
Series A Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Common stock, par value | $ 0.01 | |||
Exercise price of rights | $ 51.60 | |||
Rights expiration period | 10 years | |||
Collective ownership threshold for joint filers | 19.90% |
Business Segment Information (D
Business Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2016USD ($)segment | Mar. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Dec. 24, 2014 | |
Segment Reporting Information [Line Items] | ||||||
Number of business segments | segment | 3 | |||||
Net Revenues | $ 22,483 | $ 24,273 | $ 44,557 | $ 36,669 | ||
Operating income (Loss) | (3,607) | (1,936) | (7,535) | (6,728) | ||
Identifiable Assets | 122,728 | $ 122,728 | $ 125,456 | |||
Product Concentration Risk | Sales Revenue, Product Line | Semiconductor | ||||||
Segment Reporting Information [Line Items] | ||||||
Concentration risk, percentage (less than) | 25.00% | |||||
SoLayTec, B.V. | ||||||
Segment Reporting Information [Line Items] | ||||||
Percentage of voting interests acquired | 51.00% | |||||
Operating Segments | Solar | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 9,801 | 9,463 | $ 19,344 | 17,749 | ||
Operating income (Loss) | (2,266) | (724) | (4,130) | (3,219) | ||
Identifiable Assets | 46,778 | 46,778 | 45,717 | |||
Operating Segments | Semiconductor | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 10,507 | 12,088 | 21,206 | 12,820 | ||
Operating income (Loss) | (119) | 730 | (279) | 630 | ||
Identifiable Assets | 46,640 | 46,640 | 46,912 | |||
Operating Segments | Polishing | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 2,175 | 2,722 | 4,007 | 6,100 | ||
Operating income (Loss) | 386 | 601 | 555 | 1,343 | ||
Identifiable Assets | 5,714 | 5,714 | 5,793 | |||
Non-Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating income (Loss) | (1,608) | $ (2,543) | (3,681) | $ (5,482) | ||
Non-Segment | Non-segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Identifiable Assets | $ 23,596 | $ 23,596 | $ 27,034 |
Major Customers and Foreign S37
Major Customers and Foreign Sales (Details) - Customer | 6 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue, Major Customer [Line Items] | ||
Revenue, number of major customers | 0 | 1 |
Revenues, percentage | 100.00% | 100.00% |
United States | ||
Revenue, Major Customer [Line Items] | ||
Revenues, percentage | 23.00% | 17.00% |
Other | ||
Revenue, Major Customer [Line Items] | ||
Revenues, percentage | 3.00% | 3.00% |
Total North America | ||
Revenue, Major Customer [Line Items] | ||
Revenues, percentage | 26.00% | 20.00% |
China | ||
Revenue, Major Customer [Line Items] | ||
Revenues, percentage | 22.00% | 28.00% |
Taiwan | ||
Revenue, Major Customer [Line Items] | ||
Revenues, percentage | 12.00% | 18.00% |
Other | ||
Revenue, Major Customer [Line Items] | ||
Revenues, percentage | 22.00% | 16.00% |
Total Asia | ||
Revenue, Major Customer [Line Items] | ||
Revenues, percentage | 56.00% | 62.00% |
Total Europe | ||
Revenue, Major Customer [Line Items] | ||
Revenues, percentage | 18.00% | 18.00% |
Net Revenues | Customer Concentration Risk | Customer Number One | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 19.00% |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2016 | Jan. 30, 2015 | Dec. 31, 2014 | |
BTU International, Inc (BTU) Merger | |||
Debt Instrument [Line Items] | |||
Long-term debt acquired | $ 7.2 | ||
SoLayTec, B.V. | |||
Debt Instrument [Line Items] | |||
Long-term debt acquired | $ 2 | ||
Long-term debt | $ 3.4 | ||
Proceeds from issuance of debt | $ 0.8 | ||
SoLayTec, B.V. | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.95% | ||
SoLayTec, B.V. | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate | 10.00% | ||
Mortgage Note | BTU International, Inc (BTU) Merger | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 6.7 | ||
Interest rate | 4.40% | ||
Federal Home Loan Board Five Year Classic Advance Rate | Mortgage Note | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 240.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Apr. 01, 2016USD ($) | Mar. 31, 2016USD ($)claims | Mar. 31, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||
Purchase obligation | $ 19,900 | $ 9,800 | |||
Price of an ion implanter | 192 | $ 125 | |||
Tempress Systems and Energy Research Centre Agreement | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Price of an ion implanter | $ 1,400 | ||||
Ownership rights to results of projects developed separately by individual parties | 100.00% | ||||
R&D agreement term | 4 years | ||||
Required contribution in form of labor and assets | $ 1,400 | ||||
Period from agreement start for contribution for project support | 2 years | ||||
Amount contributed | 1,100 | ||||
R&D, required contribution | 1,400 | ||||
Environmental Clean-up | BTU International, Inc (BTU) Merger | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Loss contingency accrual | 100 | ||||
Letter of credit | $ 200 | ||||
Stockholder Actions (Putative Stockholder Class Action Complaints) | Settled Litigation | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of settled claims | claims | 2 | ||||
Subsequent Event | Stockholder Actions (Putative Stockholder Class Action Complaints) | Settled Litigation | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Legal settlement, payment of fees and expenses | $ 325 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Sep. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||||
Investments | $ 3,404 | $ 3,404 | $ 2,733 | ||
Equity income | $ (688) | $ 0 | $ (671) | $ 0 | |
Kingstone Holding Company | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 15.00% | 15.00% | 15.00% | ||
Investments | $ 3,400 | $ 3,400 | $ 0 | ||
Equity income | $ 700 | $ 700 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Sep. 30, 2015 | |
Related Party Transaction [Line Items] | ||||
Gain on sale of exclusive rights | $ 2,576 | $ 0 | ||
Kingstone Holding Company | ||||
Related Party Transaction [Line Items] | ||||
Equity method investment, ownership percentage | 15.00% | 15.00% | 15.00% | |
Accounts Receivable | Kingstone Hong Kong | ||||
Related Party Transaction [Line Items] | ||||
Due from related parties | $ 500 | $ 500 | ||
Exclusive Sales And Service Rights In Solar Ion Implant Equipment | ||||
Related Party Transaction [Line Items] | ||||
Proceeds from sale of exclusive rights | 4,900 | |||
Gain on sale of exclusive rights | $ 2,600 | $ 2,600 |