Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2022 | May 06, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | AMTECH SYSTEMS, INC. | |
Entity Central Index Key | 0000720500 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 13,888,683 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 0-11412 | |
Entity Tax Identification Number | 86-0411215 | |
Entity Address, Address Line One | 131 South Clark Drive | |
Entity Address, City or Town | Tempe | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85281 | |
City Area Code | 480 | |
Local Phone Number | 967-5146 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | AZ | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Trading Symbol | ASYS | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 27,897 | $ 32,836 |
Restricted cash | 524 | |
Accounts receivable (less allowance for doubtful accounts of $225 and $188 at March 31, 2022, and September 30, 2021, respectively) | 30,782 | 22,502 |
Inventories | 24,393 | 22,075 |
Income taxes receivable | 1,046 | |
Other current assets | 3,440 | 2,407 |
Total current assets | 87,036 | 80,866 |
Property, Plant and Equipment - Net | 13,447 | 14,083 |
Right-of-Use Assets - Net | 8,441 | 8,646 |
Intangible Assets - Net | 808 | 858 |
Goodwill | 11,168 | 11,168 |
Deferred Income Taxes - Net | 671 | 631 |
Other Assets | 618 | 661 |
Total Assets | 122,189 | 116,913 |
Current Liabilities | ||
Accounts payable | 9,635 | 8,229 |
Accrued compensation and related taxes | 3,449 | 2,881 |
Accrued warranty expense | 804 | 545 |
Other accrued liabilities | 679 | 903 |
Current maturities of long-term debt | 405 | 396 |
Current portion of long-term lease liability | 563 | 531 |
Contract liabilities | 5,576 | 1,624 |
Income taxes payable | 294 | |
Total current liabilities | 21,405 | 15,109 |
Long-Term Debt | 4,195 | 4,402 |
Long-Term Lease Liability | 8,175 | 8,389 |
Income Taxes Payable | 3,208 | 3,277 |
Other Long-Term Liabilities | 48 | 102 |
Total Liabilities | 37,031 | 31,279 |
Commitments and Contingencies (Note 9) | ||
Shareholders’ Equity | ||
Preferred stock; 100,000,000 shares authorized; none issued | ||
Common stock; $0.01 par value; 100,000,000 shares authorized; shares issued and outstanding: 13,887,050 and 14,304,492 at March 31, 2022 and September 30, 2021, respectively | 139 | 143 |
Additional paid-in capital | 123,534 | 126,380 |
Accumulated other comprehensive income | 353 | 14 |
Retained deficit | (38,868) | (40,903) |
Total Shareholders' Equity | 85,158 | 85,634 |
Total Liabilities and Shareholders’ Equity | $ 122,189 | $ 116,913 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Current Assets | ||
Allowance for doubtful accounts | $ 225 | $ 188 |
Shareholders’ Equity | ||
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 13,887,050 | 14,304,492 |
Common stock, shares outstanding | 13,887,050 | 14,304,492 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||||
Revenues, net | $ 28,579 | $ 19,790 | $ 55,908 | $ 37,765 |
Cost of sales | 16,396 | 12,062 | 32,961 | 22,525 |
Gross profit | 12,183 | 7,728 | 22,947 | 15,240 |
Selling, general and administrative | 7,788 | 5,688 | 15,740 | 10,901 |
Research, development and engineering | 1,800 | 1,869 | 3,372 | 3,114 |
Operating income | 2,595 | 171 | 3,835 | 1,225 |
Interest income (expense) and other, net | 30 | 73 | (53) | (182) |
Income before income tax provision | 2,625 | 244 | 3,782 | 1,043 |
Income tax provision | 660 | 490 | 820 | 570 |
Net income (loss) | $ 1,965 | $ (246) | $ 2,962 | $ 473 |
Income (Loss) Per Share: | ||||
Net income (loss) per basic share | $ 0.14 | $ (0.02) | $ 0.21 | $ 0.03 |
Net income (loss) per diluted share | $ 0.14 | $ (0.02) | $ 0.21 | $ 0.03 |
Weighted average shares outstanding - basic | 13,979,000 | 14,151,000 | 14,118,000 | 14,121,000 |
Weighted average shares outstanding - diluted | 14,144,000 | 14,151,000 | 14,318,000 | 14,217,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 1,965 | $ (246) | $ 2,962 | $ 473 |
Foreign currency translation adjustment | 102 | (225) | 339 | 370 |
Comprehensive income (loss) | $ 2,067 | $ (471) | $ 3,301 | $ 843 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid- In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Deficit |
Beginning balance at Sep. 30, 2020 | $ 81,519 | $ 141 | $ 124,435 | $ (646) | $ (42,411) | |
Beginning balance (in shares) at Sep. 30, 2020 | 14,063,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 719 | 719 | ||||
Translation adjustment | 595 | 595 | ||||
Stock compensation expense | 65 | 65 | ||||
Stock options exercised | 135 | 135 | ||||
Stock options exercised (in shares) | 28,000 | |||||
Ending balance at Dec. 31, 2020 | 83,033 | $ 141 | 124,635 | (51) | (41,692) | |
Ending balance (in shares) at Dec. 31, 2020 | 14,091,000 | |||||
Beginning balance at Sep. 30, 2020 | 81,519 | $ 141 | 124,435 | (646) | (42,411) | |
Beginning balance (in shares) at Sep. 30, 2020 | 14,063,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 473 | |||||
Ending balance at Mar. 31, 2021 | 83,441 | $ 142 | 125,513 | (276) | (41,938) | |
Ending balance (in shares) at Mar. 31, 2021 | 14,222,000 | |||||
Beginning balance at Dec. 31, 2020 | 83,033 | $ 141 | 124,635 | (51) | (41,692) | |
Beginning balance (in shares) at Dec. 31, 2020 | 14,091,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | (246) | (246) | ||||
Translation adjustment | (225) | (225) | ||||
Stock compensation expense | 84 | 84 | ||||
Stock options exercised | 795 | $ 1 | 794 | |||
Stock options exercised (in shares) | 131,000 | |||||
Ending balance at Mar. 31, 2021 | 83,441 | $ 142 | 125,513 | (276) | (41,938) | |
Ending balance (in shares) at Mar. 31, 2021 | 14,222,000 | |||||
Beginning balance at Sep. 30, 2021 | $ 85,634 | $ 143 | 126,380 | 14 | (40,903) | |
Beginning balance (in shares) at Sep. 30, 2021 | 14,304,492 | 14,304,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 997 | 997 | ||||
Translation adjustment | 237 | 237 | ||||
Stock compensation expense | 103 | 103 | ||||
Repurchase of treasury stock | (2,713) | $ (2,713) | ||||
Repurchase of treasury stock (in shares) | (291,000) | |||||
Retirement of treasury stock | $ (3) | $ 2,713 | (2,122) | (588) | ||
Retirement of treasury stock (in shares) | (291,000) | 291,000 | ||||
Stock options exercised | 69 | 69 | ||||
Stock options exercised (in shares) | 12,000 | |||||
Ending balance at Dec. 31, 2021 | 84,327 | $ 140 | 124,430 | 251 | (40,494) | |
Ending balance (in shares) at Dec. 31, 2021 | 14,025,000 | |||||
Beginning balance at Sep. 30, 2021 | $ 85,634 | $ 143 | 126,380 | 14 | (40,903) | |
Beginning balance (in shares) at Sep. 30, 2021 | 14,304,492 | 14,304,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 2,962 | |||||
Ending balance at Mar. 31, 2022 | $ 85,158 | $ 139 | 123,534 | 353 | (38,868) | |
Ending balance (in shares) at Mar. 31, 2022 | 13,887,050 | 13,887,000 | ||||
Beginning balance at Dec. 31, 2021 | $ 84,327 | $ 140 | 124,430 | 251 | (40,494) | |
Beginning balance (in shares) at Dec. 31, 2021 | 14,025,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,965 | 1,965 | ||||
Translation adjustment | 102 | 102 | ||||
Stock compensation expense | 137 | 137 | ||||
Repurchase of treasury stock | (1,402) | $ (1,402) | ||||
Repurchase of treasury stock (in shares) | (143,000) | |||||
Retirement of treasury stock | $ (1) | $ 1,402 | (1,062) | (339) | ||
Retirement of treasury stock (in shares) | (143,000) | 143,000 | ||||
Stock options exercised | 29 | 29 | ||||
Stock options exercised (in shares) | 5,000 | |||||
Ending balance at Mar. 31, 2022 | $ 85,158 | $ 139 | $ 123,534 | $ 353 | $ (38,868) | |
Ending balance (in shares) at Mar. 31, 2022 | 13,887,050 | 13,887,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Activities | ||
Net income | $ 2,962 | $ 473 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 864 | 644 |
Write-down of inventory | 115 | 230 |
Non-cash stock compensation expense | 240 | 149 |
Provision for allowance for doubtful accounts | 41 | 28 |
Other, net | (2) | 8 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (8,321) | (5,485) |
Inventories | (2,433) | 859 |
Other assets | (788) | (1,132) |
Accounts payable | 1,407 | 3,122 |
Accrued income taxes | 1,272 | 536 |
Accrued and other liabilities | 331 | 1,232 |
Contract liabilities | 3,951 | (929) |
Net cash used in operating activities | (361) | (265) |
Investing Activities | ||
Purchases of property, plant and equipment | (125) | (433) |
Acquisition, net of cash and cash equivalents acquired | (5,082) | |
Net cash used in investing activities | (125) | (5,515) |
Financing Activities | ||
Proceeds from the exercise of stock options | 98 | 930 |
Repurchase of common stock | (4,115) | |
Payments on long-term debt | (198) | (189) |
Net cash (used in) provided by financing activities | (4,215) | 741 |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 286 | 368 |
Net Decrease in Cash, Cash Equivalents and Restricted Cash | (4,415) | (4,671) |
Cash and Cash Equivalents , Beginning of Period | 32,836 | 45,070 |
Cash, Cash Equivalents and Restricted Cash, End of Period | 28,421 | 40,399 |
Supplemental Cash Flow Information: | ||
Income tax refunds (payments), net | 250 | (277) |
Interest paid, net of capitalized interest | $ 123 | $ 109 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 1. 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 leading, global manufacturer of capital equipment, including thermal processing and wafer polishing, and related consumables used in fabricating semiconductor devices, such as silicon carbide (“SiC”) and silicon power devices, analog and discrete devices, electronic assemblies and light-emitting diodes (“LEDs”). We sell these products to semiconductor device and module manufacturers worldwide, particularly in Asia, North America and Europe. We serve niche markets in industries that are experiencing 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 ("GAAP"). 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. The condensed consolidated balance sheet at September 30, 2021, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. 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 for the fiscal year ended September 30, 2021. Our fiscal year is from October 1 to September 30. Unless otherwise stated, references to particular years, quarters, months or periods refer to our fiscal years ending or ended September 30, and the associated quarters, months, and periods of those fiscal years. The consolidated results of operations for the three and six months ended March 31, 2022, are not necessarily indicative of the results to be expected for the full fiscal year. In March 2020, the outbreak of COVID-19 was recognized as a pandemic by the World Health Organization, and the outbreak became increasingly widespread, including in all of the markets in which we operate. We continue to monitor the impact of COVID-19 on all aspects of our business. We are a company operating in a critical infrastructure industry, as defined by the U.S. Department of Homeland Security. Consistent with federal guidelines and with foreign government, state and local orders to date, we have continued to operate across our footprint throughout the COVID-19 pandemic. Following the onset of COVID-19 and its negative effects on our business, most prominently reflected in our second, third and fourth quarter fiscal 2020 results, global economic conditions improved during fiscal 2021, resulting in increased demand for our products and services, which led to our earnings for fiscal 2021 substantially exceeding our fiscal 2020 results. There remain many unknowns and we continue to monitor the expected trends and related demand for our products and services and have and will continue to adjust our operations accordingly. On March 28, 2022, the Chinese government issued a mandatory shutdown in Shanghai, the location of one of our manufacturing facilities. On May 5, 2022, we received notice that we have been cleared by the Chinese government for reopening. There are several steps and submissions required before we will be permitted to reopen, and we will be limited in the number of workers that will be allowed in the facility upon such reopening. We estimate we could be reopened in mid-May with approximately 10 - 15 % of our work force initially allowed to return. There can be no assurance that we will be allowed to reopen in May or, if we are allowed to reopen, we will be able to remain open on a consistent basis thereafter. Principles of Consolidation – The consolidated financial statements include the accounts of the Company and our wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates – The preparation of consolidated financial statements in conformity with GAAP 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. Contract Liabilities – Contract liabilities are reflected in current liabilities on the Condensed Consolidated Balance Sheets as all performance obligations are expected to be satisfied within the next 12 months. Contract liabilities include customer deposits. Contract liabilities relate to payments invoiced or received in advance of completion of performance obligations under a contract. Contract liabilities are recognized as revenue upon the fulfillment of performance obligations. Contract liabilities consist of customer deposits as of March 31, 2022 and September 30, 2021. Of the $ 1.6 million contract liabilities recorded at September 30, 2021 , $ 0.5 million and $ 1.6 million was recorded as revenue for the three and six months ended March 31, 2022 , respectively. Shipping Expense – Shipping and handling fees associated with inbound and outbound freight are expensed as incurred and included in selling, general and administrative expenses. Shipping expense was $ 0.6 million and $ 0.2 million for the three months ended March 31, 2022 and 2021 , respectively, and $ 1.8 million and $ 0.3 million for the six months ended March 31, 2022 and 2021 , respectively. Debt – The recorded amounts of these financial instruments, including long-term debt and current maturities of long-term debt, have an interest rate of 4.11 % and are due in September 2023 . Due to the relatively short-term nature of the debt, we believe that the carrying value approximates fair value. We expect to pay off this debt in the third quarter of fiscal 2022 upon the closing of the sale of our Massachusetts manufacturing facility (see Note 12). Concentrations of Credit Risk – Our customers consist of 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 March 31, 2022, one Semiconductor segment customer individually represented 28 % of accounts receivable. As of September 30, 2021 , one Semiconductor segment customer individually represented 14 % of accounts receivable. We maintain our cash and cash equivalents in multiple financial institutions. Balances in the United States, which account for approximately 77 % and 83 % of total cash balances as of March 31, 2022 and September 30, 2021, respectively, are primarily invested in U.S. Treasuries or are in financial institutions insured by the Federal Deposit Insurance Corporation. The remainder of our cash is maintained with financial institutions with reputable credit in China, the United Kingdom and Malaysia. We maintain cash in bank accounts in amounts which at times may exceed federally insured limits. We have not experienced any losses on such accounts. Refer to Note 11 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 There were no new accounting pronouncements issued or effective as of March 31, 2022 that had or are expected to have a material impact on our consolidated financial statements. |
Acquisition
Acquisition | 6 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisition | 2. Acquisition On March 3, 2021 , we acquired 100 % of the issued and outstanding capital stock of Intersurface Dynamics, Inc. (“Intersurface Dynamics”), a Connecticut-based manufacturer of substrate process chemicals used in various manufacturing processes, including semiconductors, silicon and compound semiconductor wafers, and optics, for a cash purchase price of $ 5.3 million. The total fair value of net assets acquired was approximately $ 0.7 million, including $ 0.4 million of identifiable intangible assets consisting of customer relationships and brand name, which are amortized using the straight-line method over their estimated useful lives of ten and three years , respectively. Goodwill acquired approximated $ 4.5 million, which was recorded in our Material and Substrate segment. Intersurface Dynamics' results of operations are included in our Material and Substrate segment from the date of acquisition. Our historical results would not have been materially affected by the acquisition of Intersurface Dynamics. |
Cybersecurity Incident
Cybersecurity Incident | 6 Months Ended |
Mar. 31, 2022 | |
Cybersecurity Incident [Abstract] | |
Cybersecurity Incident | 3. Cybersecurity Incident On April 12, 2021, we detected a data incident in which attackers acquired data and disabled some of the technology systems used by one of our subsidiaries. Upon learning of the incident, we immediately engaged external counsel and retained a team of third-party forensic, incident response, and security professionals to investigate and determine the full scope of this incident. We also notified law enforcement officials and confirmed that the incident is covered by our insurance. We completed the investigation of the data incident with assistance from our outside professionals, and indications were that the unauthorized third-party gained access to certain personal information relating to employees and their beneficiaries for some of our operations. There was no indication of any misuse of this information. Despite this disruption, production continued in our facilities. Our previously disabled subsidiary network is now back up and running securely. Working alongside our security professionals, we were able to bring our subsidiary’s systems online with enhanced security controls. We have deployed an advanced next generation anti-virus and endpoint detection and response tool, as well as Managed Detection & Response services. We remain committed to protecting the security of the personal information entrusted to us and providing high-quality products and service to our customers. We recorded approximately $ 1.1 million of expense related to this incident, which was included in selling, general and administrative expenses, during the third quarter of 2021. The expense was primarily related to third-party service providers, including security professionals as well as legal and response teams. We may make additional investments in the future to further strengthen our cybersecurity. We filed an insurance claim during the fourth quarter of 2021 related to the incident. As of March 31, 2022, we have signed a final settlement agreement with our insurer resulting in total reimbursement of approximately $ 0.6 million, which included $ 0.4 million received during the quarter ended December 31, 2021 and $ 0.2 million received during the quarter ended March 31, 2022. No portion of the reimbursement remains outstanding as of March 31, 2022. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 4. Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income 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, 2022 , options for 187,000 and 95,000 weighted average shares, respectively, were excluded from the diluted EPS calculations because they were anti-dilutive. For the three and six months ended March 31, 2021 , options for 98,000 and 349,000 weighted average shares, respectively, were excluded from the diluted EPS calculations because they were anti-dilutive. These shares could become dilutive in the future. A reconciliation of the components of the basic and diluted EPS calculations follows (in thousands, except per share amounts): Three Months Ended March 31, Six Months Ended March 31, 2022 2021 2022 2021 Numerator: Net income (loss) $ 1,965 $ ( 246 ) $ 2,962 $ 473 Denominator: Weighted-average shares used to compute basic EPS 13,979 14,151 14,118 14,121 Common stock equivalents (1) 165 — 200 96 Weighted-average shares used to compute diluted EPS 14,144 14,151 14,318 14,217 Income (loss) per share: Net income (loss) per basic share $ 0.14 $ ( 0.02 ) $ 0.21 $ 0.03 Net income (loss) per diluted share $ 0.14 $ ( 0.02 ) $ 0.21 $ 0.03 (1) The number of common stock equivalents is calculated using the treasury method and the average market price during the period. |
Inventories
Inventories | 6 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | 5. Inventories The components of inventories are as follows, in thousands: March 31, September 30, Purchased parts and raw materials $ 18,056 $ 16,260 Work-in-process 5,512 4,865 Finished goods 4,927 5,055 28,495 26,180 Excess and obsolete reserves ( 4,102 ) ( 4,105 ) Inventories $ 24,393 $ 22,075 |
Leases
Leases | 6 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | 6. Leases The following table provides information about the financial statement classification of our lease balances reported within the Condensed Consolidated Balance Sheets, in thousands: March 31, September 30, Assets Right-of-use assets - operating $ 8,441 $ 8,646 Right-of-use assets - finance 170 174 Total right-of-use assets $ 8,611 $ 8,820 Liabilities Current Operating lease liability $ 496 $ 470 Finance lease liability 67 61 Total current portion of long-term lease liability 563 531 Long-term Operating lease liability 8,075 8,279 Finance lease liability 100 110 Total long-term lease liability 8,175 8,389 Total lease liability $ 8,738 $ 8,920 The following table provides information about the financial statement classification of our lease expenses reported in the Condensed Consolidated Statements of Operations, in thousands: Three Months Ended March 31, Six Months Ended March 31, Lease cost Classification 2022 2021 2022 2021 Operating lease cost Cost of sales $ 198 $ 13 $ 395 $ 84 Operating lease cost Selling, general and administrative expenses 86 96 170 144 Finance lease cost Cost of sales 1 2 2 4 Finance lease cost Selling, general and administrative expenses 19 1 35 3 Short-term lease cost Cost of sales — 49 — 76 Total lease cost $ 304 $ 161 $ 602 $ 311 Future minimum lease payments under non-cancelable leases, including leases that are executed but not yet effective, as of March 31, 2022, are as follows, in thousands: Operating Leases Finance Leases Total Remainder of 2022 $ 534 $ 53 $ 587 2023 1,063 115 1,178 2024 1,044 96 1,140 2025 1,033 48 1,081 2026 917 48 965 Thereafter 8,872 25 8,897 Total lease payments 13,463 385 13,848 Less: Interest 4,892 29 4,921 Present value of lease liabilities $ 8,571 $ 356 $ 8,927 Operating le ase payments include $ 6.5 million related to optional lease extension periods for multiple leases that are not yet exercisable but are reasonably certain of being exercised. The following table provides information about the remaining lease terms and discount rates applied: March 31, Weighted average remaining lease term Operating leases 16.59 years Finance leases 3.91 years Weighted average discount rate Operating leases 4.17 % Finance leases 4.17 % |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes Our effective tax rate is generally higher than the statutory rate due to the geographic mix of profit among the foreign and domestic jurisdictions in which we operate. For the three months ended March 31, 2022 and 2021, we recorded income tax expense of $ 0.7 million and $ 0.5 million, respectively. For the six months ended March 31, 2022 and 2021, we recorded income tax expense of $ 0.8 million and $ 0.6 million, respectively. Tax expense for the six months ended March 31, 2021 includes a benefit of approximately $ 0.3 million related to the reversal of previously recorded uncertain tax positions. 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 excluded from the determination of the estimated annual effective tax rate. GAAP requires that a valuation allowance be established when it is “more likely than not” that all or a portion of deferred tax assets will not be realized. A review of all available positive and negative evidence needs to be considered, including a company’s performance, the market environment in which the company operates and the length of carryback and carryforward periods. According to those principles, it is difficult to conclude that a valuation allowance is not needed when the negative evidence includes cumulative losses in recent years. Based on the considerations of all available evidence, we have concluded that we will maintain a full valuation allowance for all net deferred tax assets related to the carryforwards of U.S. net operating losses and foreign tax credits. We will continue to monitor our cumulative income and loss positions in the U.S. and foreign jurisdictions to determine whether full valuation allowances on net deferred tax assets are appropriate. We expect to pay minimal U.S federal cash taxes for the foreseeable future as a result of our U.S. net operating losses that are carried forward. At March 31, 2022 and September 30, 2021 , the total amount of unrecognized tax benefits was approximately $ 1.0 million and $ 0.9 million, respectively. As of March 31, 2022 and September 30, 2021 , we had an accrual for potential interest and penalties of approximately $ 0.7 million and $ 0.6 million, respectively, classified with income taxes payable long-term. |
Equity and Stock-Based Compensa
Equity and Stock-Based Compensation | 6 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Equity and Stock-Based Compensation | 8. Equity and Stock-Based Compensation Stock-based compensation expense was immaterial in all periods presented. Stock-based compensation expense is included in selling, general and administrative expenses. The following table summarizes our stock option activity during the six months ended March 31, 2022: Options Weighted Outstanding at beginning of period 608,269 $ 6.48 Granted 105,500 14.24 Exercised ( 17,371 ) 5.69 Forfeited ( 18,953 ) 6.56 Outstanding at end of period 677,445 $ 7.71 Exercisable at end of period 472,697 $ 6.69 Weighted average fair value of options granted $ 7.07 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, 2022 Risk free interest rate 1 % Expected life 5 years Dividend rate — % Volatility 57 % 2022 Stock Repurchase Plan On February 10, 2022, our Board of Directors (“the Board”) approved a new stock repurchase program, pursuant to which we may repurchase up to $ 5 million of our outstanding Common Stock over a one-year period, commencing on February 16, 2022. 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 our stock price and other market conditions. We may, in the sole discretion of the Board, terminate the repurchase program at any time while it is in effect. Repurchased shares may be retired or kept in treasury for further issuance. During the quarter ended March 31, 2022 , we repurchased 143,430 shares of our Common Stock on the open market at a total cost of approximately $ 1.4 million (an average price of $ 9.78 per share). All repurchased shares have been retired. 2021 Stock Repurchase Plan On February 9, 2021, the Board approved a stock repurchase program, pursuant to which we may repurchase up to $ 4 million of our outstanding Common Stock over a one-year period, commencing on February 16, 2021. Repurchases under the program were to 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 had no obligation to repurchase shares and the timing, actual number, and value of shares to be repurchased was subject to management’s discretion and depended on our stock price and other market conditions. We could have, in the sole discretion of the Board, terminated the repurchase program at any time while it was in effect. Repurchased shares were to be retired or kept in treasury for further issuance. During the quarter ended December 31, 2021, we repurchased 291,383 shares of our Common Stock on the open market at a total cost of approximately $ 2.7 million (an average price of $ 9.31 per share). All repurchased shares have been retired. The term of this repurchase program expired during the quarter ended March 31, 2022. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Purchase Obligations – As of March 31, 2022 , we had unrecorded purchase obligations in the amount of $ 21.0 million. 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. Legal Proceedings and Other Claims – From time to time, we are a party to claims and actions for matters arising out of our business operations. We regularly evaluate the status of the legal proceedings and other claims 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 the outcome of claims and 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 claim or 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 and change in control agreements 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 contracts or severance plans were to become payable, the severance payments would generally range from twelve to twenty-four months of salary. |
Reportable Segment Information
Reportable Segment Information | 6 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | 10. Reportable Segment Information Our two reportable segments are as follows: 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. Material and Substrate – 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. Information concerning our reportable segments is as follows, in thousands: Three Months Ended March 31, Six Months Ended March 31, 2022 2021 2022 2021 Net Revenues: Semiconductor $ 24,607 $ 17,119 $ 48,238 $ 32,694 Material and Substrate 3,972 2,671 7,670 5,071 $ 28,579 $ 19,790 $ 55,908 $ 37,765 Operating income (loss): Semiconductor $ 3,368 $ 1,665 $ 5,725 $ 3,862 Material and Substrate 654 ( 253 ) 835 ( 319 ) Non-segment related ( 1,427 ) ( 1,241 ) ( 2,725 ) ( 2,318 ) $ 2,595 $ 171 $ 3,835 $ 1,225 March 31, September 30, Identifiable Assets: Semiconductor $ 83,024 $ 70,631 Material and Substrate 19,483 19,541 Non-segment related* 19,682 26,741 $ 122,189 $ 116,913 * 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 Notes 1 and 10 of our Annual Report on Form 10-K for the year ended September 30, 2021 . |
Major Customers and Foreign Sal
Major Customers and Foreign Sales | 6 Months Ended |
Mar. 31, 2022 | |
Geographic Areas, Revenues from External Customers [Abstract] | |
Major Customers and Foreign Sales | 11. Major Customers and Foreign Sales During the six months ended March 31, 2022, two Semiconductor segment customers individually represented 16 % and 12 % of our net revenues. During the six months ended March 31, 2021 , two Semiconductor segment customers individually represented 17 % and 10 % of our net revenues. Our net revenues were from customers in the following geographic regions: Six Months Ended March 31, 2022 2021 United States 21 % 24 % Other 9 % 3 % Total North America 30 % 27 % China 20 % 28 % Malaysia 9 % 5 % Taiwan 14 % 20 % Other 5 % 8 % Total Asia 48 % 61 % Germany 6 % 3 % Austria 9 % 1 % Other 7 % 8 % Total Europe 22 % 12 % 100 % 100 % |
Subsequent Events
Subsequent Events | 6 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. Subsequent Events On April 15, 2022, our subsidiary, BTU International, Inc. (“BTU”), entered into a Purchase and Sale Agreement (the “Purchase Agreement”) with Rhino Capital Advisors, LLC (“Buyer”) for the sale of BTU’s building in Billerica, Massachusetts (the “Property”), subject to the terms and conditions contained in the Purchase Agreement. The sale price for the Property is $ 21.5 million, $ 0.5 million of which was paid as a nonrefundable deposit, with the remainder due at closing. The Purchase Agreement contains representations, warranties and covenants customary for transactions of this type. Closing is tentatively set for June 21, 2022 . Closing is subject to the execution of a leaseback of the premises. Terms of the leaseback are expected to include a base rent of $ 1.5 million per year in an absolute triple net lease for a two-year term. Based on a June 2022 closing date, we expect to recognize a gain on this transaction of approximately $ 11 million to $ 12 million, net of tax. We believe we will be able to utilize our net operating losses from a tax perspective, subject to an 80 % federal limitation. Additionally, we expect a net cash inflow of approximately $ 15 million to $ 16 million, after repayment of the existing mortgage and settlement of related sale expenses. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2022 | |
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 leading, global manufacturer of capital equipment, including thermal processing and wafer polishing, and related consumables used in fabricating semiconductor devices, such as silicon carbide (“SiC”) and silicon power devices, analog and discrete devices, electronic assemblies and light-emitting diodes (“LEDs”). We sell these products to semiconductor device and module manufacturers worldwide, particularly in Asia, North America and Europe. We serve niche markets in industries that are experiencing 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 ("GAAP"). 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. The condensed consolidated balance sheet at September 30, 2021, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. 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 for the fiscal year ended September 30, 2021. Our fiscal year is from October 1 to September 30. Unless otherwise stated, references to particular years, quarters, months or periods refer to our fiscal years ending or ended September 30, and the associated quarters, months, and periods of those fiscal years. The consolidated results of operations for the three and six months ended March 31, 2022, are not necessarily indicative of the results to be expected for the full fiscal year. In March 2020, the outbreak of COVID-19 was recognized as a pandemic by the World Health Organization, and the outbreak became increasingly widespread, including in all of the markets in which we operate. We continue to monitor the impact of COVID-19 on all aspects of our business. We are a company operating in a critical infrastructure industry, as defined by the U.S. Department of Homeland Security. Consistent with federal guidelines and with foreign government, state and local orders to date, we have continued to operate across our footprint throughout the COVID-19 pandemic. Following the onset of COVID-19 and its negative effects on our business, most prominently reflected in our second, third and fourth quarter fiscal 2020 results, global economic conditions improved during fiscal 2021, resulting in increased demand for our products and services, which led to our earnings for fiscal 2021 substantially exceeding our fiscal 2020 results. There remain many unknowns and we continue to monitor the expected trends and related demand for our products and services and have and will continue to adjust our operations accordingly. On March 28, 2022, the Chinese government issued a mandatory shutdown in Shanghai, the location of one of our manufacturing facilities. On May 5, 2022, we received notice that we have been cleared by the Chinese government for reopening. There are several steps and submissions required before we will be permitted to reopen, and we will be limited in the number of workers that will be allowed in the facility upon such reopening. We estimate we could be reopened in mid-May with approximately 10 - 15 % of our work force initially allowed to return. There can be no assurance that we will be allowed to reopen in May or, if we are allowed to reopen, we will be able to remain open on a consistent basis thereafter. |
Principles of Consolidation | Principles of Consolidation – The consolidated financial statements include the accounts of the Company and our wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates – The preparation of consolidated financial statements in conformity with GAAP 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. |
Contract Liabilities | Contract Liabilities – Contract liabilities are reflected in current liabilities on the Condensed Consolidated Balance Sheets as all performance obligations are expected to be satisfied within the next 12 months. Contract liabilities include customer deposits. Contract liabilities relate to payments invoiced or received in advance of completion of performance obligations under a contract. Contract liabilities are recognized as revenue upon the fulfillment of performance obligations. Contract liabilities consist of customer deposits as of March 31, 2022 and September 30, 2021. Of the $ 1.6 million contract liabilities recorded at September 30, 2021 , $ 0.5 million and $ 1.6 million was recorded as revenue for the three and six months ended March 31, 2022 , respectively. |
Shipping Expense | Shipping Expense – Shipping and handling fees associated with inbound and outbound freight are expensed as incurred and included in selling, general and administrative expenses. Shipping expense was $ 0.6 million and $ 0.2 million for the three months ended March 31, 2022 and 2021 , respectively, and $ 1.8 million and $ 0.3 million for the six months ended March 31, 2022 and 2021 , respectively. |
Debt | Debt – The recorded amounts of these financial instruments, including long-term debt and current maturities of long-term debt, have an interest rate of 4.11 % and are due in September 2023 . Due to the relatively short-term nature of the debt, we believe that the carrying value approximates fair value. We expect to pay off this debt in the third quarter of fiscal 2022 upon the closing of the sale of our Massachusetts manufacturing facility (see Note 12). |
Concentrations of Credit Risk | Concentrations of Credit Risk – Our customers consist of 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 March 31, 2022, one Semiconductor segment customer individually represented 28 % of accounts receivable. As of September 30, 2021 , one Semiconductor segment customer individually represented 14 % of accounts receivable. We maintain our cash and cash equivalents in multiple financial institutions. Balances in the United States, which account for approximately 77 % and 83 % of total cash balances as of March 31, 2022 and September 30, 2021, respectively, are primarily invested in U.S. Treasuries or are in financial institutions insured by the Federal Deposit Insurance Corporation. The remainder of our cash is maintained with financial institutions with reputable credit in China, the United Kingdom and Malaysia. We maintain cash in bank accounts in amounts which at times may exceed federally insured limits. We have not experienced any losses on such accounts. Refer to Note 11 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 | Impact of Recently Issued Accounting Pronouncements There were no new accounting pronouncements issued or effective as of March 31, 2022 that had or are expected to have a material impact on our consolidated financial statements. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of Components of Basic and Diluted EPS Calculations | A reconciliation of the components of the basic and diluted EPS calculations follows (in thousands, except per share amounts): Three Months Ended March 31, Six Months Ended March 31, 2022 2021 2022 2021 Numerator: Net income (loss) $ 1,965 $ ( 246 ) $ 2,962 $ 473 Denominator: Weighted-average shares used to compute basic EPS 13,979 14,151 14,118 14,121 Common stock equivalents (1) 165 — 200 96 Weighted-average shares used to compute diluted EPS 14,144 14,151 14,318 14,217 Income (loss) per share: Net income (loss) per basic share $ 0.14 $ ( 0.02 ) $ 0.21 $ 0.03 Net income (loss) per diluted share $ 0.14 $ ( 0.02 ) $ 0.21 $ 0.03 (1) The number of common stock equivalents is calculated using the treasury method and the average market price during the period. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventories | The components of inventories are as follows, in thousands: March 31, September 30, Purchased parts and raw materials $ 18,056 $ 16,260 Work-in-process 5,512 4,865 Finished goods 4,927 5,055 28,495 26,180 Excess and obsolete reserves ( 4,102 ) ( 4,105 ) Inventories $ 24,393 $ 22,075 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of Financial Statement Classification of Lease Balances Within Condensed Consolidated Balance Sheets | The following table provides information about the financial statement classification of our lease balances reported within the Condensed Consolidated Balance Sheets, in thousands: March 31, September 30, Assets Right-of-use assets - operating $ 8,441 $ 8,646 Right-of-use assets - finance 170 174 Total right-of-use assets $ 8,611 $ 8,820 Liabilities Current Operating lease liability $ 496 $ 470 Finance lease liability 67 61 Total current portion of long-term lease liability 563 531 Long-term Operating lease liability 8,075 8,279 Finance lease liability 100 110 Total long-term lease liability 8,175 8,389 Total lease liability $ 8,738 $ 8,920 |
Schedule of Financial Statement Classification of Lease Expenses Reported in Condensed Consolidated Statements of Operations | The following table provides information about the financial statement classification of our lease expenses reported in the Condensed Consolidated Statements of Operations, in thousands: Three Months Ended March 31, Six Months Ended March 31, Lease cost Classification 2022 2021 2022 2021 Operating lease cost Cost of sales $ 198 $ 13 $ 395 $ 84 Operating lease cost Selling, general and administrative expenses 86 96 170 144 Finance lease cost Cost of sales 1 2 2 4 Finance lease cost Selling, general and administrative expenses 19 1 35 3 Short-term lease cost Cost of sales — 49 — 76 Total lease cost $ 304 $ 161 $ 602 $ 311 |
Future Minimum Lease Payments Under Non-cancelable Leases Including Leases that are Executed but not yet Effective | Future minimum lease payments under non-cancelable leases, including leases that are executed but not yet effective, as of March 31, 2022, are as follows, in thousands: Operating Leases Finance Leases Total Remainder of 2022 $ 534 $ 53 $ 587 2023 1,063 115 1,178 2024 1,044 96 1,140 2025 1,033 48 1,081 2026 917 48 965 Thereafter 8,872 25 8,897 Total lease payments 13,463 385 13,848 Less: Interest 4,892 29 4,921 Present value of lease liabilities $ 8,571 $ 356 $ 8,927 |
Schedule of Weighted Average Remaining Term and Discount Rates | The following table provides information about the remaining lease terms and discount rates applied: March 31, Weighted average remaining lease term Operating leases 16.59 years Finance leases 3.91 years Weighted average discount rate Operating leases 4.17 % Finance leases 4.17 % |
Equity and Stock-Based Compen_2
Equity and Stock-Based Compensation (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | The following table summarizes our stock option activity during the six months ended March 31, 2022: Options Weighted Outstanding at beginning of period 608,269 $ 6.48 Granted 105,500 14.24 Exercised ( 17,371 ) 5.69 Forfeited ( 18,953 ) 6.56 Outstanding at end of period 677,445 $ 7.71 Exercisable at end of period 472,697 $ 6.69 Weighted average fair value of options granted $ 7.07 |
Schedule of Fair Value of Stock Option Using Black-Scholes Option Pricing Model | 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, 2022 Risk free interest rate 1 % Expected life 5 years Dividend rate — % Volatility 57 % |
Reportable Segment Information
Reportable Segment Information (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segment Information | Information concerning our reportable segments is as follows, in thousands: Three Months Ended March 31, Six Months Ended March 31, 2022 2021 2022 2021 Net Revenues: Semiconductor $ 24,607 $ 17,119 $ 48,238 $ 32,694 Material and Substrate 3,972 2,671 7,670 5,071 $ 28,579 $ 19,790 $ 55,908 $ 37,765 Operating income (loss): Semiconductor $ 3,368 $ 1,665 $ 5,725 $ 3,862 Material and Substrate 654 ( 253 ) 835 ( 319 ) Non-segment related ( 1,427 ) ( 1,241 ) ( 2,725 ) ( 2,318 ) $ 2,595 $ 171 $ 3,835 $ 1,225 March 31, September 30, Identifiable Assets: Semiconductor $ 83,024 $ 70,631 Material and Substrate 19,483 19,541 Non-segment related* 19,682 26,741 $ 122,189 $ 116,913 * Non-segment related assets include cash, property, and other assets. |
Major Customers and Foreign S_2
Major Customers and Foreign Sales (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Geographic Areas, Revenues from External Customers [Abstract] | |
Schedule of Revenues by Geographic Region | Our net revenues were from customers in the following geographic regions: Six Months Ended March 31, 2022 2021 United States 21 % 24 % Other 9 % 3 % Total North America 30 % 27 % China 20 % 28 % Malaysia 9 % 5 % Taiwan 14 % 20 % Other 5 % 8 % Total Asia 48 % 61 % Germany 6 % 3 % Austria 9 % 1 % Other 7 % 8 % Total Europe 22 % 12 % 100 % 100 % |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies - Nature of Operations and Basis of Presentation - Additional Information (Details) - Subsequent Event | May 05, 2022 |
Minimum | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Percentage of work force initially allowed to return | 10.00% |
Maximum | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Percentage of work force initially allowed to return | 15.00% |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Contract Liabilities - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Contract liabilities | $ 5,576 | $ 5,576 | $ 1,624 |
Contract revenue | $ 500 | $ 1,600 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Shipping Expense - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule Of Expense [Line Items] | ||||
Selling, general and administrative expenses | $ 7,788 | $ 5,688 | $ 15,740 | $ 10,901 |
Shipping | ||||
Schedule Of Expense [Line Items] | ||||
Selling, general and administrative expenses | $ 600 | $ 200 | $ 1,800 | $ 300 |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies - Debt - Additional Information (Details) | 6 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Interest rate | 4.11% |
Debt, maturity period | 2023-09 |
Basis of Presentation and Sig_7
Basis of Presentation and Significant Accounting Policies - Concentrations of Credit Risk - Additional Information (Details) | 6 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Sep. 30, 2021 | |
US Treasuries and FDIC Insured | ||
Concentration Risk [Line Items] | ||
Percentage of cash balances | 77.00% | 83.00% |
Accounts Receivable | Customer Concentration Risk | Customer One | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 28.00% | 14.00% |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) - USD ($) $ in Thousands | Mar. 03, 2021 | Mar. 31, 2022 | Sep. 30, 2021 |
Business Acquisition [Line Items] | |||
Goodwill - Net | $ 11,168 | $ 11,168 | |
Customer Relationships | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible asset, estimated useful lives | 10 years | ||
Brand Name | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible asset, estimated useful lives | 3 years | ||
Intersurface Dynamics, Inc. | |||
Business Acquisition [Line Items] | |||
Business acquisition, effective date of acquisition | Mar. 3, 2021 | ||
Business acquisition, percentage of voting interests acquired | 100.00% | ||
Business acquisition, cash purchase price | $ 5,300 | ||
Business acquisition, fair value of net assets | 700 | ||
Business acquisition, identifiable intangible assets | 400 | ||
Goodwill - Net | $ 4,500 |
Cybersecurity Incident - Additi
Cybersecurity Incident - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2022 | |
Selling, General And Administrative Expenses [Member] | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Cybersecurity expenses | $ 1.1 | |||
Insurance Claims [Member] | ||||
Unusual or Infrequent Item, or Both [Line Items] | ||||
Reimbursement received | $ 0.2 | $ 0.4 | $ 0.6 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Stock Options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 187,000 | 98,000 | 95,000 | 349,000 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Components of Basic and Diluted EPS Calculations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | ||
Numerator: | |||||
Net income (loss) | $ 1,965 | $ (246) | $ 2,962 | $ 473 | |
Denominator: | |||||
Weighted-average shares used to compute basic EPS | 13,979,000 | 14,151,000 | 14,118,000 | 14,121,000 | |
Common stock equivalents | [1] | 165,000 | 200,000 | 96,000 | |
Weighted-average shares used to compute diluted EPS | 14,144,000 | 14,151,000 | 14,318,000 | 14,217,000 | |
Net income (loss) per basic share | $ 0.14 | $ (0.02) | $ 0.21 | $ 0.03 | |
Net income (loss) per diluted share | $ 0.14 | $ (0.02) | $ 0.21 | $ 0.03 | |
[1] | The number of common stock equivalents is calculated using the treasury method and the average market price during the period. |
Inventories - Schedule of Compo
Inventories - Schedule of Components of Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Purchased parts and raw materials | $ 18,056 | $ 16,260 |
Work-in-process | 5,512 | 4,865 |
Finished goods | 4,927 | 5,055 |
Inventory, gross | 28,495 | 26,180 |
Excess and obsolete reserves | (4,102) | (4,105) |
Inventories | $ 24,393 | $ 22,075 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 6 Months Ended |
Mar. 31, 2022USD ($) | |
Lessee Lease Description [Line Items] | |
Operating lease, existence of option to extend | true |
Operating lease, optional lease extension periods for multiple leases, description | Operating lease payments include $6.5 million related to optional lease extension periods for multiple leases that are not yet exercisable but are reasonably certain of being exercised. |
Payments related to optional lease extension periods for multiple leases | $ 6.5 |
Leases - Schedule of Financial
Leases - Schedule of Financial Statement Classification of Lease Balances Within Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Leases [Abstract] | ||
Right-of-use assets - operating | $ 8,441 | $ 8,646 |
Right-of-use assets - finance | $ 170 | $ 174 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, Plant and Equipment - Net | Property, Plant and Equipment - Net |
Total right-of-use assets | $ 8,611 | $ 8,820 |
Operating lease liability | $ 496 | $ 470 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Total current portion of long-term lease liability | Total current portion of long-term lease liability |
Finance lease liability | $ 67 | $ 61 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Total current portion of long-term lease liability | Total current portion of long-term lease liability |
Total current portion of long-term lease liability | $ 563 | $ 531 |
Operating lease liability | $ 8,075 | $ 8,279 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Total long-term lease liability | Total long-term lease liability |
Finance lease liability | $ 100 | $ 110 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Total long-term lease liability | Total long-term lease liability |
Total long-term lease liability | $ 8,175 | $ 8,389 |
Total lease liability | $ 8,738 | $ 8,920 |
Leases - Schedule of Financia_2
Leases - Schedule of Financial Statement Classification of Lease Expenses Reported in Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Lessee Lease Description [Line Items] | ||||
Total lease cost | $ 304 | $ 161 | $ 602 | $ 311 |
Cost of sales | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease cost | 198 | 13 | 395 | 84 |
Finance lease cost | 1 | 2 | 2 | 4 |
Short-term lease cost | 49 | 76 | ||
Selling, General And Administrative Expenses [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease cost | 86 | 96 | 170 | 144 |
Finance lease cost | $ 19 | $ 1 | $ 35 | $ 3 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Under Non-cancelable Leases Including Leases that are Executed but not yet Effective (Detail) $ in Thousands | Mar. 31, 2022USD ($) |
Operating Lease | |
Remainder of 2022 | $ 534 |
2023 | 1,063 |
2024 | 1,044 |
2025 | 1,033 |
2026 | 917 |
Thereafter | 8,872 |
Total lease payments | 13,463 |
Less: Interest | 4,892 |
Present value of lease liabilities | 8,571 |
Finance Lease | |
Remainder of 2022 | 53 |
2023 | 115 |
2024 | 96 |
2025 | 48 |
2026 | 48 |
Thereafter | 25 |
Total lease payments | 385 |
Less: Interest | 29 |
Present value of lease liabilities | 356 |
Operating Lease and Finance lease | |
Remainder of 2022 | 587 |
2023 | 1,178 |
2024 | 1,140 |
2025 | 1,081 |
2026 | 965 |
Thereafter | 8,897 |
Total lease payments | 13,848 |
Less: Interest | 4,921 |
Present value of lease liabilities | $ 8,927 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Term and Discount Rates (Detail) | Mar. 31, 2022 |
Leases [Abstract] | |
Operating leases, Weighted average remaining lease term | 16 years 7 months 2 days |
Finance leases, Weighted average remaining lease term | 3 years 10 months 28 days |
Operating leases, Weighted average discount rate | 4.17% |
Finance leases, Weighted average discount rate | 4.17% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | |
Income Tax Contingency [Line Items] | |||||
Income tax expense | $ 660 | $ 490 | $ 820 | $ 570 | |
Benefit related to reversal of previously recorded uncertain tax positions | $ 300 | ||||
Unrecognized tax benefits that would impact effective tax rate | 1,000 | 1,000 | $ 900 | ||
Accrual for potential interest and penalties | $ 700 | $ 700 | $ 600 |
Equity and Stock-Based Compen_3
Equity and Stock-Based Compensation - Additional Information (Details) - USD ($) | Feb. 16, 2021 | Mar. 31, 2022 | Dec. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total cost of shares repurchased and retired | $ 1,402,000 | $ 2,713,000 | |
2022 Stock Repurchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Authorized stock repurchase amount | $ 5,000,000 | ||
Stock repurchase program period | 1 year | ||
Shares repurchased and retired during the period | 143,430 | ||
Total cost of shares repurchased and retired | $ 1,400,000 | ||
Average price per share of shares repurchased | $ 9.78 | ||
2021 Stock Repurchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Authorized stock repurchase amount | $ 4,000,000 | ||
Stock repurchase program period | 1 year | ||
Shares repurchased and retired during the period | 291,383 | ||
Total cost of shares repurchased and retired | $ 2,700,000 | ||
Average price per share of shares repurchased | $ 9.31 |
Equity and Stock-Based Compen_4
Equity and Stock-Based Compensation - Summary of Stock Option Activity (Details) - Stock Options | 6 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Options | |
Outstanding at beginning of period | shares | 608,269 |
Granted | shares | 105,500 |
Exercised | shares | (17,371) |
Forfeited | shares | (18,953) |
Outstanding at end of period | shares | 677,445 |
Exercisable at end of period | shares | 472,697 |
Weighted average fair value of options granted during the period | $ 7.07 |
Weighted Average Exercise Price | |
Outstanding at beginning of period | 6.48 |
Granted | 14.24 |
Exercised | 5.69 |
Forfeited | 6.56 |
Outstanding at end of period | 7.71 |
Exercisable at end of period | $ 6.69 |
Equity and Stock-Based Compen_5
Equity and Stock-Based Compensation - Schedule of Fair Value of Stock Option Using Black-Scholes Option Pricing Model (Details) | 6 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Risk free interest rate | 1.00% |
Expected life | 5 years |
Volatility | 57.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 6 Months Ended |
Mar. 31, 2022USD ($) | |
Commitments and Contingencies [Line Items] | |
Purchase obligation | $ 21 |
Minimum | |
Commitments and Contingencies [Line Items] | |
Severance payment term | 12 months |
Maximum | |
Commitments and Contingencies [Line Items] | |
Severance payment term | 24 months |
Reportable Segment Informatio_2
Reportable Segment Information - Additional Information (Details) | 6 Months Ended |
Mar. 31, 2022Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Reportable Segment Informatio_3
Reportable Segment Information - Schedule of Reportable Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | ||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | $ 28,579 | $ 19,790 | $ 55,908 | $ 37,765 | ||
Operating income (loss) | 2,595 | 171 | 3,835 | 1,225 | ||
Identifiable Assets | 122,189 | 122,189 | $ 116,913 | |||
Operating Segments | Semiconductor | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 24,607 | 17,119 | 48,238 | 32,694 | ||
Operating income (loss) | 3,368 | 1,665 | 5,725 | 3,862 | ||
Identifiable Assets | 83,024 | 83,024 | 70,631 | |||
Operating Segments | Material and Substrate | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Revenues | 3,972 | 2,671 | 7,670 | 5,071 | ||
Operating income (loss) | 654 | (253) | 835 | (319) | ||
Identifiable Assets | 19,483 | 19,483 | 19,541 | |||
Non-Segment Related | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating income (loss) | (1,427) | $ (1,241) | (2,725) | $ (2,318) | ||
Identifiable Assets | [1] | $ 19,682 | $ 19,682 | $ 26,741 | ||
[1] | * Non-segment related assets include cash, property, and other assets. |
Major Customers and Foreign S_3
Major Customers and Foreign Sales - Additional Information (Details) - Net Revenues - Customer Concentration Risk | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Customer One | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 16.00% | 17.00% |
Customer Two | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 12.00% | 10.00% |
Major Customers and Foreign S_4
Major Customers and Foreign Sales - Schedule of Revenues by Geographic Region (Details) - Net Revenues - Geographic Concentration Risk | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 100.00% | 100.00% |
United States | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 21.00% | 24.00% |
Other North America | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 9.00% | 3.00% |
Total North America | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 30.00% | 27.00% |
China | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 20.00% | 28.00% |
Malaysia | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 9.00% | 5.00% |
Taiwan | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 14.00% | 20.00% |
Other Asia | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 5.00% | 8.00% |
Total Asia | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 48.00% | 61.00% |
Germany | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 6.00% | 3.00% |
Austria | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 9.00% | 1.00% |
Other Europe | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 7.00% | 8.00% |
Total Europe | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 22.00% | 12.00% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ in Millions | Jun. 21, 2022 | Apr. 15, 2022 |
Forecast | ||
Subsequent Event [Line Items] | ||
Sale lease back transaction date | June 21, 2022 | |
Expected base rent | $ 1.5 | |
Term of absolute triple net lease | Terms of the leaseback are expected to include a base rent of $1.5 million per year in an absolute triple net lease for a two-year term. | |
Expected gain on lease back transaction | $ 11 | |
Percentage of federal limitation to utilize net operating losses | 80.00% | |
Forecast | Minimum | ||
Subsequent Event [Line Items] | ||
Expected net cash inflow, after repayment of existing mortgage and settlement of related sale expenses | $ 15 | |
Forecast | Maximum | ||
Subsequent Event [Line Items] | ||
Expected gain on lease back transaction | 12 | |
Expected net cash inflow, after repayment of existing mortgage and settlement of related sale expenses | $ 16 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Amount of nonrefundable deposits paid | $ 0.5 | |
Subsequent Event | Property | ||
Subsequent Event [Line Items] | ||
Sale of property | $ 21.5 |