Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2018 | Aug. 03, 2018 | |
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, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 14,987,745 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 48,729 | $ 51,121 |
Restricted cash | 6,876 | 24,640 |
Accounts receivable | ||
Trade (less allowance for doubtful accounts of $1,441 and $866 at June 30, 2018, and September 30, 2017, respectively) | 27,627 | 22,519 |
Unbilled and other | 14,748 | 14,275 |
Inventories | 22,590 | 30,210 |
Note receivable | 5,738 | 0 |
Vendor deposits | 1,802 | 11,806 |
Other | 2,688 | 2,542 |
Total current assets | 130,798 | 157,113 |
Property, Plant and Equipment - Net | 16,314 | 15,792 |
Intangible Assets - Net | 3,039 | 3,495 |
Goodwill - Net | 11,342 | 11,405 |
Investments | 0 | 2,615 |
Deferred Income Taxes - Long-Term | 0 | 200 |
Other Assets - Long-Term | 948 | 1,003 |
Total Assets | 162,441 | 191,623 |
Current Liabilities | ||
Accounts payable | 12,579 | 21,555 |
Accrued compensation and related taxes | 6,539 | 7,592 |
Accrued warranty expense | 1,223 | 1,254 |
Other accrued liabilities | 3,077 | 2,056 |
Customer deposits | 15,065 | 48,784 |
Current maturities of long-term debt | 371 | 361 |
Deferred profit | 3,560 | 4,081 |
Income taxes payable | 2,246 | 286 |
Total current liabilities | 44,660 | 85,969 |
Long-term Debt | 8,028 | 8,134 |
Income Taxes Payable - Long Term | 3,334 | 7,037 |
Total liabilities | 56,022 | 101,140 |
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 | 150 | 147 |
Additional paid-in capital | 128,083 | 125,564 |
Accumulated other comprehensive loss | (9,373) | (8,529) |
Retained deficit | (12,441) | (26,699) |
Total stockholders' equity | 106,419 | 90,483 |
Total Liabilities and Stockholders' Equity | $ 162,441 | $ 191,623 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Current Assets | ||
Allowance for doubtful accounts | $ 1,441 | $ 866 |
Stockholders' Equity | ||
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 14,986,620 | 14,710,591 |
Common stock, shares outstanding (in shares) | 14,986,620 | 14,710,591 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenues, net of returns and allowances | $ 41,200 | $ 47,760 | $ 147,594 | $ 109,839 |
Cost of sales | 26,601 | 32,258 | 100,933 | 77,499 |
Gross profit | 14,599 | 15,502 | 46,661 | 32,340 |
Selling, general and administrative | 9,541 | 10,108 | 29,599 | 25,366 |
Research, development and engineering | 2,122 | 1,423 | 6,295 | 4,586 |
Operating income | 2,936 | 3,971 | 10,767 | 2,388 |
Gain on sale of other assets | 2,883 | 0 | 2,883 | 0 |
Income (loss) from equity method investment | 232 | (110) | 234 | (200) |
Interest expense and other income, net | 310 | (34) | 224 | (151) |
Income before income taxes | 6,361 | 3,827 | 14,108 | 2,037 |
Income tax provision (benefit) | 1,390 | 986 | (150) | 1,270 |
Net income | 4,971 | 2,841 | 14,258 | 767 |
Add: net loss attributable to noncontrolling interest | 0 | 446 | 0 | 1,045 |
Net income attributable to Amtech Systems, Inc. | $ 4,971 | $ 3,287 | $ 14,258 | $ 1,812 |
Income Per Share: | ||||
Basic income per share attributable to Amtech shareholders (USD per share) | $ 0.33 | $ 0.25 | $ 0.96 | $ 0.14 |
Weighted average shares outstanding (in shares) | 14,925 | 13,242 | 14,867 | 13,203 |
Diluted income per share attributable to Amtech shareholders (USD per share) | $ 0.33 | $ 0.25 | $ 0.94 | $ 0.14 |
Weighted average shares outstanding (in shares) | 15,091 | 13,398 | 15,181 | 13,288 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 4,971 | $ 2,841 | $ 14,258 | $ 767 |
Foreign currency translation adjustment | (2,181) | 740 | (844) | 118 |
Comprehensive income | 2,790 | 3,581 | 13,414 | 885 |
Comprehensive loss attributable to noncontrolling interest | 0 | 302 | 0 | 969 |
Comprehensive income attributable to Amtech Systems, Inc. | $ 2,790 | $ 3,883 | $ 13,414 | $ 1,854 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Activities | ||
Net income | $ 14,258 | $ 767 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 1,622 | 1,871 |
Write-down of inventory | 195 | 448 |
Capitalized interest | 143 | 307 |
Deferred income taxes | 206 | (10) |
Non-cash share based compensation expense | 632 | 978 |
(Gain) loss on sale of property, plant and equipment | 53 | (107) |
Gain on sale of other assets | (2,883) | 0 |
(Gain) loss from equity method investment | (234) | 200 |
Provision for (reversal of) allowance for doubtful accounts, net | 64 | (898) |
Changes in operating assets and liabilities: | ||
Restricted cash | 17,956 | (3,576) |
Accounts receivable | (5,877) | (8,997) |
Inventories | 6,565 | (245) |
Accrued income taxes | (1,742) | 742 |
Vendor deposits and other assets | 10,034 | (5,521) |
Accounts payable | (9,022) | 6,616 |
Customer deposits and accrued liabilities | (34,025) | 17,526 |
Deferred profit | (486) | 626 |
Net cash (used in) provided by operating activities | (2,647) | 10,941 |
Investing Activities | ||
Purchases of property, plant and equipment | (845) | (355) |
Proceeds from sale of property, plant and equipment | 64 | 39 |
Costs related to sale of equity method investment | (6) | 0 |
Net cash used in investing activities | (787) | (316) |
Financing Activities | ||
Proceeds from the exercise of stock options | 1,889 | 894 |
Payments on long-term debt | (275) | (485) |
Borrowings on long-term debt | 0 | 384 |
Net cash provided by financing activities | 1,614 | 793 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (572) | 87 |
Net (Decrease) Increase in Cash and Cash Equivalents | (2,392) | 11,505 |
Cash and Cash Equivalents, Beginning of Period | 51,121 | 27,655 |
Cash and Cash Equivalents, End of Period | 48,729 | 39,160 |
Supplemental Non-cash Financing and Investing Activities: | ||
Short-term note receivable received in sale of investment (See Note 10) | 5,738 | 0 |
Transfer of inventory to property, plant and equipment | $ 908 | $ 0 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Nature of Operations and Basis of Presentation – Amtech Systems, Inc. (the “Company”, “Amtech”, “we”, “our” or “us”) is a global manufacturer of capital equipment, including thermal processing, silicon wafer handling automation, and related consumables used in fabricating solar cells, LED and semiconductor devices. We sell these products to solar cell and semiconductor manufacturers worldwide, particularly in Asia, the United States and Europe. We serve niche markets in industries that are experiencing rapid technological advances and which historically have been very cyclical. Therefore, future profitability and growth depend on our ability to develop or acquire and market profitable new products and on our ability to adapt to cyclical trends. The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. 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 unaudited 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, as amended, for the fiscal year ended September 30, 2017 . The consolidated results of operations for the three and nine months ended June 30, 2018 , 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 our wholly-owned subsidiaries and subsidiaries in which we have a controlling interest. We report non-controlling interests in consolidated entities as a component of equity separate from our equity. The equity method of accounting is used for investments over which we have a significant influence but not a controlling financial interest. All material intercompany accounts and transactions have been eliminated in consolidation. Effective July 1, 2017, we purchased the non-controlling interest in SoLayTec B.V. (“SoLayTec”), pursuant to which SoLayTec became a wholly-owned subsidiary of Amtech. Beginning July 1, 2017, the non-controlling interest will no longer be reported. Prior amounts have not been restated. 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 – We review 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. We recognize 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 our equipment business, transactions where legal title passes to the customer upon shipment, we recognize revenue 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. Our 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. Our recognition of revenue 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 the installation and acceptance of more than two similarly configured items of equipment 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 we defer only those costs directly related to installation, or another unit of accounting not yet delivered, and the portion of the contract price is often considerably greater than the relative selling price of those items, our 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. We have, on occasion, 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. Service contract revenue is recognized as services are performed over the term of the contract, which generally results in ratable recognition over the period of the contract. Deferred Profit – Revenue deferred pursuant to our revenue 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, in thousands: June 30, September 30, Deferred revenues $ 6,172 $ 6,822 Deferred costs 2,612 2,741 Deferred profit $ 3,560 $ 4,081 Shipping Expense – Shipping expenses of $0.5 million for each of the three months ended June 30, 2018 and 2017 , are included in selling, general and administrative expenses. Shipping expenses of $2.4 million and $1.4 million for the nine months ended June 30, 2018 and 2017 , respectively, are included in selling, general and administrative expenses. Research, Development and Engineering Expense – The table below shows gross research and development expenses and grants earned, in thousands: Three Months Ended June 30, Nine Months Ended June 30, 2018 2017 2018 2017 Research, development and engineering $ 2,284 $ 1,774 $ 7,102 $ 5,547 Grants earned (162 ) (351 ) (807 ) (961 ) Net research, development and engineering $ 2,122 $ 1,423 $ 6,295 $ 4,586 Foreign Currency Transactions and Translation – We use the U.S. dollar as our reporting currency. Our operations in Europe, China and other countries are primarily conducted in their functional currencies: the Euro, Renminbi, or the local country currency, respectively. Accordingly, assets and liabilities of the foreign subsidiaries are translated into U.S. dollars at the exchange rate in effect at the balance sheet dates. Income and expense items are translated at the average exchange rate for each month within the year. The resulting translation adjustments are recorded directly in accumulated other comprehensive income (loss), net of tax - foreign currency translation adjustments as a separate component of stockholders’ equity. Net foreign currency transaction gains/losses, including transaction gains/losses on intercompany balances that are not long-term investments, and non-functional currency cash balances, are reported as a separate component of non-operating (income) expense in our consolidated statements of operations. Concentrations of Credit Risk – Our customers consist of solar cell and semiconductor manufacturers worldwide, as well as the lapping and polishing marketplace. Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and trade accounts receivable. 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. As of June 30, 2018 , two customers individually represented 23% and 14% of accounts receivable. As of September 30, 2017 , two customers individually represented 24% and 11% of accounts receivable. We maintain our cash, cash equivalents and restricted cash in multiple financial institutions. Balances in the United States, which account for approximately 60% and 45% of total cash balances as of June 30, 2018 and September 30, 2017 , respectively, are primarily invested in U.S. Treasuries or are in financial institutions insured by the Federal Deposit Insurance Corporation (“FDIC”). The remainder of our cash is maintained with financial institutions with reputable credit ratings in The Netherlands, France, China, the United Kingdom, Singapore and Malaysia. Refer to Note 9 to Condensed Consolidated Financial Statements for information regarding major customers, foreign sales and revenue in other countries subject to fluctuation in foreign currency exchange rates. Impact of Recently Issued Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 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. This new standard increases volatility in the statement of operations by requiring all excess tax benefits and deficiencies to be recognized as discrete income tax benefits or expenses in the statement of operations in the period in which they occur. We adopted the new standard as of October 1, 2017, and prospectively applied the provisions in this guidance requiring recognition of excess tax benefits and deficits in the statement of operations. Also, as a result of the adoption of the new standard, we made an accounting policy election to recognize forfeitures as they occur and no longer estimate expected forfeitures. The provisions in this guidance requiring the use of a modified retrospective transition method would have required us to record a cumulative-effect adjustment in retained earnings as of October 1, 2017. On the basis of immateriality, we recorded such cumulative-effect adjustment as stock-based compensation in the first quarter of 2018 rather than adjusting retained earnings. Lastly, we applied the provisions of this guidance relating to classification on the statement of cash flows retrospectively with no material effect on our cash flows. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which amends the existing accounting standards for revenue recognition. The core principle of the guidance is that an entity should 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. An entity may choose to adopt the new standard either retrospectively or through a cumulative effect adjustment as of the start of the first period for which it applies the new standard. We are in the process of determining the effect that the adoption will have on our consolidated financial statements. Based on our analysis to date, we have reached the following tentative conclusions regarding the new standard and how we expect it to affect our consolidated financial statements and related disclosures: • We expect to adopt the standard as of October 1, 2018, the start of our first quarter of fiscal 2019. • We believe that since substantially all of our revenue is contractual, substantially all of our revenue falls within the scope of ASU 2014-09, as amended. • We expect to use the cumulative effect transition method. Such method provides that upon applying the new standard, the cumulative effect from prior periods is recognized in our consolidated balance sheet as of the date of adoption, including an adjustment to retained earnings. Prior periods will not be retrospectively adjusted. • As discussed in our revenue recognition policy above, we currently have three categories of equipment revenue: routine equipment, non-routine equipment and new technology. Our routine equipment revenue is generally recognized upon shipment with a deferral equal to the relative selling price of the undelivered services (i.e. installation) which is typically recognized upon customer acceptance. Deferrals for non-routine equipment are generally equal to the contractual non-contingent amount. For new technology, all revenue and direct costs are deferred at the time of shipment and later recognized at the time of customer acceptance or when this criteria has been met. We have determined that under ASU 2014-09, our policy for deferrals related to non-routine equipment will no longer apply. Therefore, our new revenue recognition policy will consist of only two categories: routine equipment and new technology. Routine equipment revenue will continue to be recognized at shipment with a deferral equal to the relative selling price of the undelivered services (i.e. installation) which is recognized upon customer acceptance. Revenue and direct costs for new technology will continue to be deferred at the time of shipment and later recognized at the time of customer acceptance or when this criteria has been met. The elimination of the non-routine category affects a small percentage of our equipment sales (less than 5% of fiscal year 2017 revenue). In most contracts, this change will result in higher revenue recognized at shipment and lower revenue deferrals, which are recognized upon customer acceptance. • Sales commissions on contracts with performance periods that exceed one year will be recorded as an asset and amortized to expense over the related contract performance period in proportion to the revenue recognized as opposed to being expensed in the period the transaction is generated. • We expect that our disclosures in our notes to our consolidated financial statements related to revenue recognition will be significantly expanded under the new standard. Our analysis and evaluation of the new standard will continue through its effective date in the first quarter of fiscal 2019. A substantial amount of work has been completed, and findings and progress to date have been reported to management and the Audit Committee of the Board of Directors (the “Board”). Although we currently believe that the changes overall resulting from the adoption of the new standard will not lead to operating trends that are materially different than we reported in prior years, our evaluation of the effects is still being finalized. The quantification of the effects of the new standard, including the items discussed above, is a significant undertaking. Currently, we continue to work on our estimate of the cumulative effect adjustment from prior periods that will be recognized in our consolidated balance sheet as of the date of adoption as an adjustment to retained earnings. This estimate frequently changes as we continue to ship equipment and receive customer acceptances which result in revenue recognition and deferrals in the current fiscal year. Further, we will be required to implement necessary changes in our processes, accounting systems and internal controls in conjunction with applying the new standard. There have been no other material changes or additions to the recently issued accounting standards other than those previously reported in Note 1 to our Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K, as amended, for the year ended September 30, 2017 that affect or may affect our financial statements. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jun. 30, 2018 | |
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 nine months ended June 30, 2018 , options for 679,000 and 428,000 weighted average shares, respectively, were excluded from the diluted EPS calculations because they were anti-dilutive. For the three and nine months ended June 30, 2017 , options for 1,152,000 and 1,649,000 weighted average shares, respectively, were excluded from the diluted EPS calculations because they were anti-dilutive. These shares could become dilutive in the future. The following table outlines basic and diluted EPS, in thousands, except per share amounts: Three Months Ended June 30, Nine Months Ended June 30, 2018 2017 2018 2017 Basic Income Per Share Computation Net income attributable to Amtech Systems, Inc. $ 4,971 $ 3,287 $ 14,258 $ 1,812 Weighted Average Shares Outstanding: Common stock 14,925 13,242 14,867 13,203 Basic income per share attributable to Amtech shareholders $ 0.33 $ 0.25 $ 0.96 $ 0.14 Diluted Income Per Share Computation Net income attributable to Amtech Systems, Inc. $ 4,971 $ 3,287 $ 14,258 $ 1,812 Weighted Average Shares Outstanding: Common stock 14,925 13,242 14,867 13,203 Common stock equivalents (1) 166 156 314 85 Diluted shares 15,091 13,398 15,181 13,288 Diluted income per share attributable to Amtech shareholders $ 0.33 $ 0.25 $ 0.94 $ 0.14 (1) The number of common stock equivalents is calculated using the treasury method and the average market price during the period. |
Equity and Stock-based Compensa
Equity and Stock-based Compensation (Notes) | 9 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Equity and Stock-based Compensation | Equity and Stock-Based Compensation Stock-based compensation expense was $0.2 million and $0.4 million in the three months ended June 30, 2018 and 2017 , respectively, and was $0.6 million and $1.0 million in the nine months ended June 30, 2018 and 2017 , respectively, and was included in selling, general and administrative expenses. The following table summarizes our stock option activity during the nine months ended June 30, 2018 : Options Weighted Average Exercise Price Outstanding at beginning of period 1,560,441 $ 7.95 Granted 44,000 7.40 Exercised (276,029 ) 6.72 Forfeited (74,368 ) 16.73 Outstanding at end of period 1,254,044 $ 7.68 Exercisable at end of period 1,012,503 $ 7.93 Weighted average fair value of options granted during the period $ 4.20 The fair value of options was estimated at the applicable grant date using the Black-Scholes option pricing model with the following assumptions: Nine Months Ended June 30, 2018 Risk free interest rate 3% Expected life 6 years Dividend rate 0% Volatility 59% On March 28, 2018, we announced that our Board approved a stock repurchase program, pursuant to which we may repurchase up to $4 million of our outstanding common stock, par value $0.01 per share, over a one -year period, commencing on April 2, 2018. Repurchases under the program will be made in open market transactions at prevailing market prices, in privately negotiated transactions, or by other means in compliance with the rules and regulations of the SEC; however, we have no obligation to repurchase shares and the timing, actual number, and value of shares to be repurchased is subject to management’s discretion and will depend on the Company’s stock price and other market conditions. Our Board may terminate the repurchase program at any time while it is in effect. We intend to retire any repurchased shares. There were no shares repurchased during the quarter ended June 30, 2018 . |
Inventory
Inventory | 9 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory The components of inventories are as follows, in thousands: June 30, September 30, Purchased parts and raw materials $ 13,995 $ 14,789 Work-in-process 5,312 11,078 Finished goods 3,283 4,343 $ 22,590 $ 30,210 |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2018 | |
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 we operate. However, losses in certain jurisdictions and discrete items are treated separately. 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. We record 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. In prior periods, we established valuation allowances on substantially all net deferred tax assets, after considering all of the available objective evidence, both positive and negative, historical and prospective, with greater weight given to historical evidence, and determined it is not more likely than not that these assets will be realized. The Tax Cuts and Jobs Act (the “Act”), which was enacted on December 22, 2017, permanently reduces the U.S. federal corporate tax rate from 35% to 21%, eliminates corporate Alternative Minimum Tax, modifies rules for expensing capital investment, and limits the deduction of interest expense for certain companies. The Act is a fundamental change to the taxation of multinational companies, including a shift from a system of worldwide taxation with some deferral elements to a territorial system, current taxation of certain foreign income, a minimum tax on low-tax foreign earnings, and new measures to curtail tax base erosion and promote U.S. production. As a result of the Act, the statutory rate applicable to our fiscal year ending September 30, 2018 will be 24.5% , based on a fiscal year blended rate calculation. Accounting Standard Codification (“ASC”) 740 requires filers to record the effect of tax law changes in the period enacted. However, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”), that permits filers to record provisional amounts during a measurement period ending no later than one year from the date of enactment. In the first quarter of fiscal 2018, we re-measured the applicable deferred tax assets based on the rates at which they are expected to reverse. We adjusted our gross deferred tax assets and liabilities and recorded a corresponding offset to our full valuation allowance against our net deferred tax assets, which resulted in minimal net effect to our provision for income taxes and effective tax rate. We have not made any other provisional adjustments as a result of the Act. The Act includes a one-time mandatory repatriation transition tax on certain net accumulated earnings and profits of our foreign subsidiaries. We are still in the process of analyzing the earnings and profits and tax pools of our foreign subsidiaries to reasonably estimate the effects of the one-time transition tax and, therefore, have not recorded a provisional impact. The tax expense impact of the one-time transition tax to be determined may be partially or fully offset by a release of valuation allowance for the utilization of existing net operating losses and tax credits that may reduce the amount of related taxes payable. We expect the accounting for this aspect of the Act to be complete by the end of fiscal 2018. As of June 30, 2018 , consistent with historical conclusions, our cash balances held in foreign locations are expected to be permanently reinvested outside the United States as the impact of the Act on our current position is not yet fully understood and is still under evaluation. We are assessing the applicability of the other provisions in the Act and expect to complete this analysis by the end of fiscal 2018. For the three and nine months ended June 30, 2018 , we recorded income tax expense of $1.4 million and an income tax benefit of $0.2 million , respectively. Over the last several months, we have undertaken an effort to resolve an uncertain tax position in specific tax jurisdictions. We have worked with tax experts in the local jurisdictions and in the U.S. to review the transactions and tax laws that resulted in this uncertain tax position, as well as the related interest and penalties. At the conclusion of this review, we determined that the Company is not liable for withholding taxes nor the associated interest and penalties in one of the jurisdictions. Therefore, during the second quarter of fiscal 2018 we reversed the accrued tax, interest and penalties relating to this jurisdiction, which total $3.1 million , which was partially offset by income tax expense relating to our consolidated pre-tax income. The difference in our effective tax rate from the U.S. statutory rate primarily reflects the impact of the resolution of the uncertain tax position discussed above, as well as a mix of domestic and international pre-tax income and valuation allowance. In 2017 and in fiscal 2018, we reversed a portion of the valuation allowance related to net operating loss carryforwards which we have determined will be utilized against net operating income in the current year. We classify all of our uncertain tax positions as income taxes payable long-term. At June 30, 2018 and September 30, 2017 , the total amount of unrecognized tax benefits was approximately $1.2 million and $4.2 million, respectively. Income taxes payable long-term includes other items, primarily withholding taxes that are not due until the related intercompany service fees are paid. We classify interest and penalties related to unrecognized tax benefits as income tax expense. As of June 30, 2018 and September 30, 2017 , we had an accrual for potential interest and penalties of approximately $0.6 million and $2.6 million, respectively, classified with income taxes payable long-term. Amtech and one or more of our subsidiaries file income tax returns in The Netherlands, Germany, France, China and other foreign jurisdictions, as well as in the U.S. and various states in the U.S. We have not signed any agreements with the Internal Revenue Service, any state or foreign jurisdiction to the extend the statute of limitations for any fiscal year. As such, the number of open years is the number of years dictated by statute in each of the respective taxing jurisdictions, which generally is from 3 to 5 years. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations – As of June 30, 2018 , we had unrecorded purchase obligations in the amount of $14.6 million compared to $34.4 million as of September 30, 2017 . 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 in the event that any agreements are renegotiated, canceled or terminated. Development Projects – In fiscal 2014, our wholly owned subsidiary, 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. Tempress met its requirement 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 prior to fiscal 2017. EPA Accrual – As a result of the BTU International, Inc. (“BTU”) acquisition in January 2015, we 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 our proportional responsibility, as negotiated with and agreed to by the EPA, our liability related to this matter is less than $0.1 million, which is included in Other Accrued Liabilities in the Condensed Consolidated Balance Sheets as of June 30, 2018 and September 30, 2017 . In accordance with the agreement, BTU established a letter of credit for $0.2 million to the benefit of the EPA for potential cash payments as settlements for our proportional liability, which is included in Restricted Cash in the Condensed Consolidated Balance Sheets as of June 30, 2018 and September 30, 2017 . Legal Proceedings – We are defendants from time to time in actions for matters arising out of our business operations. We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss, or an additional loss, may have been incurred and determine if accruals are appropriate. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of possible loss or range of possible loss can be made for disclosure. Although litigation is inherently unpredictable, we believe that we have adequate provisions for any probable and estimable losses. It is possible, nevertheless, that our consolidated financial position, results of operations or liquidity could be materially and adversely affected in any particular period by the resolution of a legal proceeding. Legal expenses related to defense, negotiations, settlements, rulings and advice of outside legal counsel are expensed as incurred. Employment Contracts – We have employment contracts with, and severance plans covering, certain officers and management employees under which severance payments would become payable in the event of specified terminations without cause or terminations under certain circumstances after a change in control. If severance payments under the current employment agreements or plan payments were to become payable, the severance payments would generally range from twelve to thirty-six months of salary. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Shareholder Rights Plan | Shareholder Rights Plan In December 2008, Amtech 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 our Series A Participating Preferred Stock (“Series A Preferred”) currently attached to each of our outstanding shares of common stock, par value $0.01 per share. As amended, each Right entitles the registered holder to purchase from us 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 our 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 our common stock. The Final Expiration Date (as defined in the Restated Rights Agreement) is December 14, 2018. In October 2015, we 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 in the Restated Rights Agreement to include any person that our Board, in its sole and absolute discretion, exempts from becoming an Acquiring Person (as defined in the Restated Rights Agreement) under 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, in October 2015, we entered into a Letter Agreement (the “Agreement”) by and between Amtech and certain shareholders of Amtech who jointly file (the “Joint Filers”) under Section 13 of the Securities Exchange Act of 1934, as amended. One of the Joint Filers became a member of our Board after the Agreement was approved by the Board. The Agreement permits the Joint Filers, pursuant to the Second Restated Rights Agreement, to individually acquire shares of common stock of Amtech that would, in the aggregate, bring the Joint Filers’ collective ownership to no more than 19.9% of our issued and outstanding common stock at any time. In the event the Joint Filers’ collective ownership at any time exceeds 19.9% of our issued and outstanding shares of common stock, we are entitled to specific performance and all other remedies entitled to us at law or equity, among others. Our Board 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 | 9 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information Our three reportable segments are as follows: Solar – We are a leading supplier of thermal processing systems, including related automation, parts and services, to the solar/photovoltaic industry and also offer PECVD (plasma-enhanced chemical vapor deposition) equipment to the global solar market. Semiconductor – We design, manufacture, sell and service thermal processing equipment and related controls for use by leading semiconductor manufacturers, and in electronics, automotive and other industries. Polishing – We produce 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. We also refer to our Polishing segment as “LED/SiC” (silicon carbide). Information concerning our business segments is as follows, in thousands: Three Months Ended June 30, Nine Months Ended June 30, 2018 2017 2018 2017 Net Revenues: Solar * $ 14,134 $ 28,981 $ 75,929 $ 56,960 Semiconductor 23,472 15,951 60,945 45,097 Polishing 3,594 2,828 10,720 7,782 $ 41,200 $ 47,760 $ 147,594 $ 109,839 Operating income (loss): Solar * $ (85 ) $ 2,991 $ 3,364 $ 90 Semiconductor 3,861 2,250 9,122 6,013 Polishing 938 738 3,153 1,705 Non-segment related (1,778 ) (2,008 ) (4,872 ) (5,420 ) $ 2,936 $ 3,971 $ 10,767 $ 2,388 * 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. June 30, September 30, Identifiable Assets: Solar $ 59,726 $ 97,999 Semiconductor 60,048 57,177 Polishing 6,476 5,078 Non-segment related 36,191 31,369 $ 162,441 $ 191,623 Non-segment related assets include cash, property and other assets. Goodwill and other long-lived assets We review our long-lived assets, including goodwill, for impairment at least annually in our fourth quarter or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Additional information on impairment testing of long-lived assets, intangible assets and goodwill can be found in Note 1 of our Annual Report on Form 10-K, as amended, for the year ended September 30, 2017 . |
Major Customers and Foreign Sal
Major Customers and Foreign Sales | 9 Months Ended |
Jun. 30, 2018 | |
Geographic Areas, Revenues from External Customers [Abstract] | |
Major Customers And Foreign Sales | Major Customers and Foreign Sales During the nine months ended June 30, 2018 , one customer individually represented 29% of our net revenues. No other customer represented greater than 10% of net revenues. During the nine months ended June 30, 2017 , two customers individually represented 18% and 11% of our net revenues. Our net revenues were to customers in the following geographic regions: Nine Months Ended June 30, 2018 2017 United States 12 % 13 % Other 1 % 1 % Total North America 13 % 14 % China 54 % 43 % Malaysia 5 % 11 % Taiwan 6 % 10 % Other 5 % 8 % Total Asia 70 % 72 % Germany 8 % 5 % Other 9 % 9 % Total Europe 17 % 14 % 100 % 100 % |
Sale of Investment (Notes)
Sale of Investment (Notes) | 9 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of Investment | Sale of Investment Effective June 29, 2018, we sold our remaining 15% ownership interest in Kingstone Technology Hong Kong Limited (“Kingstone Hong Kong”) to the majority owner for approximately $5.7 million . We recognized a gain of approximately $2.9 million , which is reported as gain on sale of other assets in our Consolidated Statements of Operations for the three and nine months ended June 30, 2018 . We recorded a note receivable of $5.7 million . The note is due in August 2018, and is, therefore, recorded as a current asset in our Consolidated Balance Sheet as of June 30, 2018 . Upon collection of the note, Kingstone Hong Kong and its owner will no longer be related parties of Amtech. |
Subsequent Event (Notes)
Subsequent Event (Notes) | 9 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event In July 2018, we established a restructuring plan related to our operations in the Netherlands, which are part of our Solar operating segment (the “Plan”). The goal of the Plan is to reduce operating costs and better align our workforce with the current needs of our business and enhance our competitive position for long-term success. Once fully implemented, we expect the Plan to reduce operating costs by approximately $3.0 million on an annualized basis, although specific details of the Plan remain under development and subject to change. Under the Plan, we will reduce our Solar workforce by approximately 35-40 employees (approximately 20% ). The affected employees are covered by a collective bargaining agreement, which defines the amount due to employees in the event of involuntary termination. We expect to incur approximately $0.6 million to $0.8 million of one-time termination costs in the fourth quarter of fiscal 2018. It is expected that these efforts will be completed over the next six to eight months. |
Basis of Presentation and Sum18
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2018 | |
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”, “Amtech”, “we”, “our” or “us”) is a global manufacturer of capital equipment, including thermal processing, silicon wafer handling automation, and related consumables used in fabricating solar cells, LED and semiconductor devices. We sell these products to solar cell and semiconductor manufacturers worldwide, particularly in Asia, the United States and Europe. We serve niche markets in industries that are experiencing rapid technological advances and which historically have been very cyclical. Therefore, future profitability and growth depend on our ability to develop or acquire and market profitable new products and on our ability to adapt to cyclical trends. The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. 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 unaudited 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, as amended, for the fiscal year ended September 30, 2017 . The consolidated results of operations for the three and nine months ended June 30, 2018 , 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 our wholly-owned subsidiaries and subsidiaries in which we have a controlling interest. We report non-controlling interests in consolidated entities as a component of equity separate from our equity. The equity method of accounting is used for investments over which we have a significant influence but not a controlling financial interest. All material intercompany accounts and transactions have been eliminated in consolidation. Effective July 1, 2017, we purchased the non-controlling interest in SoLayTec B.V. (“SoLayTec”), pursuant to which SoLayTec became a wholly-owned subsidiary of Amtech. Beginning July 1, 2017, the non-controlling interest will no longer be reported. Prior amounts have not been restated. |
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 – We review 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. We recognize 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 our equipment business, transactions where legal title passes to the customer upon shipment, we recognize revenue 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. Our 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. Our recognition of revenue 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 the installation and acceptance of more than two similarly configured items of equipment 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 we defer only those costs directly related to installation, or another unit of accounting not yet delivered, and the portion of the contract price is often considerably greater than the relative selling price of those items, our 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. We have, on occasion, 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. Service contract revenue is recognized as services are performed over the term of the contract, which generally results in ratable recognition over the period of the contract. |
Deferred Profit | Deferred Profit – Revenue deferred pursuant to our revenue policy, net of the related deferred costs, if any, is recorded as deferred profit in current liabilities. |
Foreign Currency Transactions and Translation | Foreign Currency Transactions and Translation – We use the U.S. dollar as our reporting currency. Our operations in Europe, China and other countries are primarily conducted in their functional currencies: the Euro, Renminbi, or the local country currency, respectively. Accordingly, assets and liabilities of the foreign subsidiaries are translated into U.S. dollars at the exchange rate in effect at the balance sheet dates. Income and expense items are translated at the average exchange rate for each month within the year. The resulting translation adjustments are recorded directly in accumulated other comprehensive income (loss), net of tax - foreign currency translation adjustments as a separate component of stockholders’ equity. Net foreign currency transaction gains/losses, including transaction gains/losses on intercompany balances that are not long-term investments, and non-functional currency cash balances, are reported as a separate component of non-operating (income) expense in our consolidated statements of operations. |
Concentrations of Credit Risk | Concentrations of Credit Risk – Our customers consist of solar cell and semiconductor manufacturers worldwide, as well as the lapping and polishing marketplace. Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and trade accounts receivable. 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. As of June 30, 2018 , two customers individually represented 23% and 14% of accounts receivable. As of September 30, 2017 , two customers individually represented 24% and 11% of accounts receivable. We maintain our cash, cash equivalents and restricted cash in multiple financial institutions. Balances in the United States, which account for approximately 60% and 45% of total cash balances as of June 30, 2018 and September 30, 2017 , respectively, are primarily invested in U.S. Treasuries or are in financial institutions insured by the Federal Deposit Insurance Corporation (“FDIC”). The remainder of our cash is maintained with financial institutions with reputable credit ratings in The Netherlands, France, China, the United Kingdom, Singapore and Malaysia. |
Impact of Recently Issued Accounting Pronouncements | Impact of Recently Issued Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 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. This new standard increases volatility in the statement of operations by requiring all excess tax benefits and deficiencies to be recognized as discrete income tax benefits or expenses in the statement of operations in the period in which they occur. We adopted the new standard as of October 1, 2017, and prospectively applied the provisions in this guidance requiring recognition of excess tax benefits and deficits in the statement of operations. Also, as a result of the adoption of the new standard, we made an accounting policy election to recognize forfeitures as they occur and no longer estimate expected forfeitures. The provisions in this guidance requiring the use of a modified retrospective transition method would have required us to record a cumulative-effect adjustment in retained earnings as of October 1, 2017. On the basis of immateriality, we recorded such cumulative-effect adjustment as stock-based compensation in the first quarter of 2018 rather than adjusting retained earnings. Lastly, we applied the provisions of this guidance relating to classification on the statement of cash flows retrospectively with no material effect on our cash flows. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which amends the existing accounting standards for revenue recognition. The core principle of the guidance is that an entity should 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. An entity may choose to adopt the new standard either retrospectively or through a cumulative effect adjustment as of the start of the first period for which it applies the new standard. We are in the process of determining the effect that the adoption will have on our consolidated financial statements. Based on our analysis to date, we have reached the following tentative conclusions regarding the new standard and how we expect it to affect our consolidated financial statements and related disclosures: • We expect to adopt the standard as of October 1, 2018, the start of our first quarter of fiscal 2019. • We believe that since substantially all of our revenue is contractual, substantially all of our revenue falls within the scope of ASU 2014-09, as amended. • We expect to use the cumulative effect transition method. Such method provides that upon applying the new standard, the cumulative effect from prior periods is recognized in our consolidated balance sheet as of the date of adoption, including an adjustment to retained earnings. Prior periods will not be retrospectively adjusted. • As discussed in our revenue recognition policy above, we currently have three categories of equipment revenue: routine equipment, non-routine equipment and new technology. Our routine equipment revenue is generally recognized upon shipment with a deferral equal to the relative selling price of the undelivered services (i.e. installation) which is typically recognized upon customer acceptance. Deferrals for non-routine equipment are generally equal to the contractual non-contingent amount. For new technology, all revenue and direct costs are deferred at the time of shipment and later recognized at the time of customer acceptance or when this criteria has been met. We have determined that under ASU 2014-09, our policy for deferrals related to non-routine equipment will no longer apply. Therefore, our new revenue recognition policy will consist of only two categories: routine equipment and new technology. Routine equipment revenue will continue to be recognized at shipment with a deferral equal to the relative selling price of the undelivered services (i.e. installation) which is recognized upon customer acceptance. Revenue and direct costs for new technology will continue to be deferred at the time of shipment and later recognized at the time of customer acceptance or when this criteria has been met. The elimination of the non-routine category affects a small percentage of our equipment sales (less than 5% of fiscal year 2017 revenue). In most contracts, this change will result in higher revenue recognized at shipment and lower revenue deferrals, which are recognized upon customer acceptance. • Sales commissions on contracts with performance periods that exceed one year will be recorded as an asset and amortized to expense over the related contract performance period in proportion to the revenue recognized as opposed to being expensed in the period the transaction is generated. • We expect that our disclosures in our notes to our consolidated financial statements related to revenue recognition will be significantly expanded under the new standard. Our analysis and evaluation of the new standard will continue through its effective date in the first quarter of fiscal 2019. A substantial amount of work has been completed, and findings and progress to date have been reported to management and the Audit Committee of the Board of Directors (the “Board”). Although we currently believe that the changes overall resulting from the adoption of the new standard will not lead to operating trends that are materially different than we reported in prior years, our evaluation of the effects is still being finalized. The quantification of the effects of the new standard, including the items discussed above, is a significant undertaking. Currently, we continue to work on our estimate of the cumulative effect adjustment from prior periods that will be recognized in our consolidated balance sheet as of the date of adoption as an adjustment to retained earnings. This estimate frequently changes as we continue to ship equipment and receive customer acceptances which result in revenue recognition and deferrals in the current fiscal year. Further, we will be required to implement necessary changes in our processes, accounting systems and internal controls in conjunction with applying the new standard. There have been no other material changes or additions to the recently issued accounting standards other than those previously reported in Note 1 to our Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K, as amended, for the year ended September 30, 2017 that affect or may affect our financial statements. |
Basis of Presentation and Sum19
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Deferred Profit | The components of deferred profit are as follows, in thousands: June 30, September 30, Deferred revenues $ 6,172 $ 6,822 Deferred costs 2,612 2,741 Deferred profit $ 3,560 $ 4,081 |
Research and Development Expense | The table below shows gross research and development expenses and grants earned, in thousands: Three Months Ended June 30, Nine Months Ended June 30, 2018 2017 2018 2017 Research, development and engineering $ 2,284 $ 1,774 $ 7,102 $ 5,547 Grants earned (162 ) (351 ) (807 ) (961 ) Net research, development and engineering $ 2,122 $ 1,423 $ 6,295 $ 4,586 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The following table outlines basic and diluted EPS, in thousands, except per share amounts: Three Months Ended June 30, Nine Months Ended June 30, 2018 2017 2018 2017 Basic Income Per Share Computation Net income attributable to Amtech Systems, Inc. $ 4,971 $ 3,287 $ 14,258 $ 1,812 Weighted Average Shares Outstanding: Common stock 14,925 13,242 14,867 13,203 Basic income per share attributable to Amtech shareholders $ 0.33 $ 0.25 $ 0.96 $ 0.14 Diluted Income Per Share Computation Net income attributable to Amtech Systems, Inc. $ 4,971 $ 3,287 $ 14,258 $ 1,812 Weighted Average Shares Outstanding: Common stock 14,925 13,242 14,867 13,203 Common stock equivalents (1) 166 156 314 85 Diluted shares 15,091 13,398 15,181 13,288 Diluted income per share attributable to Amtech shareholders $ 0.33 $ 0.25 $ 0.94 $ 0.14 (1) The number of common stock equivalents is calculated using the treasury method and the average market price during the period. |
Equity and Stock-based Compen21
Equity and Stock-based Compensation (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Share-based Compensation, Stock Options, Activity | The following table summarizes our stock option activity during the nine months ended June 30, 2018 : Options Weighted Average Exercise Price Outstanding at beginning of period 1,560,441 $ 7.95 Granted 44,000 7.40 Exercised (276,029 ) 6.72 Forfeited (74,368 ) 16.73 Outstanding at end of period 1,254,044 $ 7.68 Exercisable at end of period 1,012,503 $ 7.93 Weighted average fair value of options granted during the period $ 4.20 |
Fair Value Assumptions | The fair value of options was estimated at the applicable grant date using the Black-Scholes option pricing model with the following assumptions: Nine Months Ended June 30, 2018 Risk free interest rate 3% Expected life 6 years Dividend rate 0% Volatility 59% |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | The components of inventories are as follows, in thousands: June 30, September 30, Purchased parts and raw materials $ 13,995 $ 14,789 Work-in-process 5,312 11,078 Finished goods 3,283 4,343 $ 22,590 $ 30,210 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Information | Information concerning our business segments is as follows, in thousands: Three Months Ended June 30, Nine Months Ended June 30, 2018 2017 2018 2017 Net Revenues: Solar * $ 14,134 $ 28,981 $ 75,929 $ 56,960 Semiconductor 23,472 15,951 60,945 45,097 Polishing 3,594 2,828 10,720 7,782 $ 41,200 $ 47,760 $ 147,594 $ 109,839 Operating income (loss): Solar * $ (85 ) $ 2,991 $ 3,364 $ 90 Semiconductor 3,861 2,250 9,122 6,013 Polishing 938 738 3,153 1,705 Non-segment related (1,778 ) (2,008 ) (4,872 ) (5,420 ) $ 2,936 $ 3,971 $ 10,767 $ 2,388 * 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. June 30, September 30, Identifiable Assets: Solar $ 59,726 $ 97,999 Semiconductor 60,048 57,177 Polishing 6,476 5,078 Non-segment related 36,191 31,369 $ 162,441 $ 191,623 |
Major Customers and Foreign S24
Major Customers and Foreign Sales (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Geographic Areas, Revenues from External Customers [Abstract] | |
Revenues by Geographic Region | Our net revenues were to customers in the following geographic regions: Nine Months Ended June 30, 2018 2017 United States 12 % 13 % Other 1 % 1 % Total North America 13 % 14 % China 54 % 43 % Malaysia 5 % 11 % Taiwan 6 % 10 % Other 5 % 8 % Total Asia 70 % 72 % Germany 8 % 5 % Other 9 % 9 % Total Europe 17 % 14 % 100 % 100 % |
Basis of Presentation and Sum25
Basis of Presentation and Summary of Significant Accounting Policies - Deferred Profit (Details) $ in Thousands | Jun. 30, 2018USD ($)systemsequipment | Sep. 30, 2017USD ($) |
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 | $ 6,172 | $ 6,822 |
Deferred costs | 2,612 | 2,741 |
Deferred profit | $ 3,560 | $ 4,081 |
Basis of Presentation and Sum26
Basis of Presentation and Summary of Significant Accounting Policies - Shipping Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | |||||
Shipping expense | $ 9,541 | $ 10,108 | $ 29,599 | $ 25,366 | |
Shipping and Handling | |||||
Disaggregation of Revenue [Line Items] | |||||
Shipping expense | $ 500 | $ 500 | $ 2,400 | $ 1,400 |
Basis of Presentation and Sum27
Basis of Presentation and Summary of Significant Accounting Policies - Research and Development Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Research, development and engineering | $ 2,284 | $ 1,774 | $ 7,102 | $ 5,547 |
Grants earned | (162) | (351) | (807) | (961) |
Net research, development and engineering | $ 2,122 | $ 1,423 | $ 6,295 | $ 4,586 |
Basis of Presentation and Sum28
Basis of Presentation and Summary of Significant Accounting Policies - Concentrations of Credit Risk (Details) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Sep. 30, 2017 | |
Cash and Cash Equivalents and Restricted Cash | US Treasuries and FDIC Insured | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 60.00% | |
Cash and Cash Equivalents and Restricted Cash | US Treasuries and FDIC Insured | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 45.00% | |
Customer One | Accounts Receivable | Customer Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 23.00% | 24.00% |
Customer Two | Accounts Receivable | Customer Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 14.00% | 11.00% |
Equipment Sales | ||
Concentration Risk [Line Items] | ||
Percentage of sales affected by revenue recognition adoption | 5.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Basic Income Per Share Computation | ||||
Net income attributable to Amtech Systems, Inc. | $ 4,971 | $ 3,287 | $ 14,258 | $ 1,812 |
Weighted Average Shares Outstanding: | ||||
Common stock (in shares) | 14,925 | 13,242 | 14,867 | 13,203 |
Basic income per share attributable to Amtech shareholders (USD per share) | $ 0.33 | $ 0.25 | $ 0.96 | $ 0.14 |
Diluted Income Per Share Computation | ||||
Net income attributable to Amtech Systems, Inc. | $ 4,971 | $ 3,287 | $ 14,258 | $ 1,812 |
Weighted Average Shares Outstanding: | ||||
Common stock (in shares) | 14,925 | 13,242 | 14,867 | 13,203 |
Common stock equivalents (in shares) | 166 | 156 | 314 | 85 |
Diluted shares (in shares) | 15,091 | 13,398 | 15,181 | 13,288 |
Diluted income per share attributable to Amtech shareholders (USD per share) | $ 0.33 | $ 0.25 | $ 0.94 | $ 0.14 |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 679 | 1,152 | 428 | 1,649 |
Equity and Stock-based Compen30
Equity and Stock-based Compensation Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 28, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2017 |
Equity [Abstract] | ||||||
Share-based compensation expense | $ 200 | $ 400 | $ 632 | $ 978 | ||
Authorized stock repurchase amount | $ 4,000 | |||||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||
Stock repurchase program period | 1 year | |||||
Shares repurchased (in shares) | 0 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Purchased parts and raw materials | $ 13,995 | $ 14,789 |
Work-in-process | 5,312 | 11,078 |
Finished goods | 3,283 | 4,343 |
Inventory | $ 22,590 | $ 30,210 |
Equity and Stock-based Compen32
Equity and Stock-based Compensation Stock Option Activity (Details) - Stock Options | 9 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding at beginning of period (in shares) | shares | 1,560,441 |
Granted (in shares) | shares | 44,000 |
Exercised (in shares) | shares | 276,029 |
Forfeited (in shares) | shares | (74,368) |
Outstanding at end of period (in shares) | shares | 1,254,044 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Outstanding at beginning of period (USD per share) | $ 7.95 |
Granted (USD per share) | 7.40 |
Exercised (USD per share) | 6.72 |
Forfeited (USD per share) | 16.73 |
Outstanding at end of period (USD per share) | $ 7.68 |
Exercisable at end of period (in shares) | shares | 1,012,503 |
Exercisable at end of period, weighted average exercise price (USD per share) | $ 7.93 |
Weighted average fair value of options granted during the period | $ 4.20 |
Equity and Stock-based Compen33
Equity and Stock-based Compensation Fair Value Assumptions (Details) | 9 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Risk free interest rate | 2.89% |
Expected life | 6 years |
Dividend rate | 0.00% |
Volatility | 58.76% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Contingency [Line Items] | ||||||
Income tax expense | $ 1,390 | $ 986 | $ (150) | $ 1,270 | ||
Reversal of accrued taxes, interest and penalties | 3,100 | 3,100 | ||||
Unrecognized tax benefits that would impact effective tax rate | 1,200 | 1,200 | $ 4,200 | |||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 600 | $ 600 | $ 2,600 | |||
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 | |||||
Scenario, Forecast | ||||||
Income Tax Contingency [Line Items] | ||||||
Statutory tax rate | 24.50% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2014 | Sep. 30, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||||
Purchase obligation | $ 14,600 | $ 34,400 | ||
Price of an ion implanter | 845 | $ 355 | ||
Environmental Clean-up | BTU International, Inc (BTU) Merger | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Loss contingency accrual, less than | 100 | 100 | ||
Letter of credit | $ 200 | $ 200 | ||
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% | |||
Required contribution in form of labor and assets | $ 1,400 | |||
Period from agreement start for contribution for project support | 2 years | |||
Minimum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Severance payment term | 12 months | |||
Maximum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Severance payment term | 36 months |
Shareholder Rights Plan (Detail
Shareholder Rights Plan (Details) - $ / shares | Oct. 08, 2015 | Dec. 15, 2008 | Jun. 30, 2018 | Mar. 28, 2018 | Sep. 30, 2017 |
Class of Stock [Line Items] | |||||
Common stock, par value (USD per share) | $ 0.01 | $ 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 (USD per share) | $ 0.01 | ||||
Number of securities called by warrants or rights (in shares) | 0.001 | ||||
Exercise price of rights (USD per share) | $ 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 | 9 Months Ended | |||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)segment | Jun. 30, 2017USD ($) | Sep. 30, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of business segments | segment | 3 | ||||
Net revenues | $ 41,200 | $ 47,760 | $ 147,594 | $ 109,839 | |
Operating income (loss) | 2,936 | 3,971 | 10,767 | 2,388 | |
Identifiable assets | 162,441 | $ 162,441 | $ 191,623 | ||
Semiconductor | Product Concentration Risk | Sales Revenue, Product Line | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk, percentage (less than) | 25.00% | ||||
Operating Segments | Solar | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 14,134 | 28,981 | $ 75,929 | 56,960 | |
Operating income (loss) | (85) | 2,991 | 3,364 | 90 | |
Identifiable assets | 59,726 | 59,726 | 97,999 | ||
Operating Segments | Semiconductor | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 23,472 | 15,951 | 60,945 | 45,097 | |
Operating income (loss) | 3,861 | 2,250 | 9,122 | 6,013 | |
Identifiable assets | 60,048 | 60,048 | 57,177 | ||
Operating Segments | Polishing | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 3,594 | 2,828 | 10,720 | 7,782 | |
Operating income (loss) | 938 | 738 | 3,153 | 1,705 | |
Identifiable assets | 6,476 | 6,476 | 5,078 | ||
Non-Segment | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (loss) | (1,778) | $ (2,008) | (4,872) | $ (5,420) | |
Identifiable assets | $ 36,191 | $ 36,191 | $ 31,369 |
Major Customers and Foreign S38
Major Customers and Foreign Sales (Details) - Net Revenues | 9 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Customer Concentration Risk | Customer One | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 29.00% | 18.00% |
Customer Concentration Risk | Customer Two | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 11.00% | |
Geographic Concentration Risk | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 100.00% | 100.00% |
Geographic Concentration Risk | United States | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 12.00% | 13.00% |
Geographic Concentration Risk | Other North America | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 1.00% | 1.00% |
Geographic Concentration Risk | Total North America | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 13.00% | 14.00% |
Geographic Concentration Risk | China | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 54.00% | 43.00% |
Geographic Concentration Risk | Malaysia | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 5.00% | 11.00% |
Geographic Concentration Risk | Taiwan | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 6.00% | 10.00% |
Geographic Concentration Risk | Other Asia | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 5.00% | 8.00% |
Geographic Concentration Risk | Total Asia | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 70.00% | 72.00% |
Geographic Concentration Risk | Germany | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 8.00% | 5.00% |
Geographic Concentration Risk | Other Europe | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 9.00% | 9.00% |
Geographic Concentration Risk | Total Europe | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 17.00% | 14.00% |
Sale of Investment (Details)
Sale of Investment (Details) - USD ($) $ in Thousands | Jun. 29, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on sale of other assets | $ 2,883 | $ 0 | $ 2,883 | $ 0 | |
Short-term note receivable received in sale of investment | $ 5,738 | $ 0 | |||
Kingstone Hong Kong | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Percentage of ownership interest sold | 15.00% | ||||
Consideration received | $ 5,700 | ||||
Short-term note receivable received in sale of investment | $ 5,700 |
Subsequent Event (Details)
Subsequent Event (Details) - Netherlands Restructuring Plan - Subsequent Event $ in Millions | 1 Months Ended |
Jul. 31, 2018USD ($)employee | |
Subsequent Event [Line Items] | |
Expected savings amount | $ 3 |
Expected percentage of workforce reduction | 20.00% |
Minimum | |
Subsequent Event [Line Items] | |
Expected number of positions eliminated | employee | 35 |
Restructuring and Related Cost, Expected Completion Period | 6 months |
Maximum | |
Subsequent Event [Line Items] | |
Expected number of positions eliminated | employee | 40 |
Restructuring and Related Cost, Expected Completion Period | 8 months |
Employee Severance | Minimum | |
Subsequent Event [Line Items] | |
Expected costs to be incurred | $ 0.6 |
Employee Severance | Maximum | |
Subsequent Event [Line Items] | |
Expected costs to be incurred | $ 0.8 |