Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
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 | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 14,047,172 | |
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, 2020 | Sep. 30, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 49,268 | $ 52,982 |
Restricted cash | 101 | |
Accounts receivable (less allowance for doubtful accounts of $151 and $172 at March 31, 2020, and September 30, 2019, respectively) | 11,285 | 12,873 |
Inventories | 17,332 | 17,532 |
Notes and other receivables | 1,250 | |
Income taxes receivable | 240 | |
Held-for-sale assets | 22,755 | |
Other current assets | 2,192 | 2,027 |
Total current assets | 81,567 | 108,270 |
Property, Plant and Equipment - Net | 10,100 | 10,217 |
Intangible Assets - Net | 739 | 870 |
Goodwill - Net | 6,633 | 6,633 |
Other Assets | 559 | 487 |
Total Assets | 99,598 | 126,477 |
Current Liabilities | ||
Accounts payable | 4,447 | 4,371 |
Accrued compensation and related taxes | 1,525 | 2,717 |
Accrued warranty expense | 398 | 556 |
Other accrued liabilities | 1,423 | 1,274 |
Current maturities of long-term debt | 372 | 371 |
Contract liabilities | 1,532 | 1,378 |
Income taxes payable | 1,434 | |
Held-for-sale liabilities | 18,547 | |
Total current liabilities | 9,697 | 30,648 |
Long-Term Debt | 4,989 | 5,178 |
Long-Term Lease Liability | 29 | |
Income Taxes Payable | 2,726 | 3,199 |
Total Liabilities | 17,441 | 39,025 |
Commitments and Contingencies | ||
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: 14,041,322 and 14,268,797 at March 31, 2020 and September 30, 2019, respectively | 140 | 143 |
Additional paid-in capital | 124,145 | 125,098 |
Accumulated other comprehensive loss | (1,814) | (11,233) |
Retained deficit | (40,314) | (26,556) |
Total shareholders’ equity | 82,157 | 87,452 |
Total Liabilities and Shareholders’ Equity | $ 99,598 | $ 126,477 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Current Assets | ||
Allowance for doubtful accounts | $ 151 | $ 172 |
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 | 14,041,322 | 14,268,797 |
Common stock, shares outstanding | 14,041,322 | 14,268,797 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||||
Revenues, net of returns and allowances | $ 14,460 | $ 20,633 | $ 35,152 | $ 43,858 |
Cost of sales | 9,102 | 12,706 | 21,620 | 26,911 |
Gross profit | 5,358 | 7,927 | 13,532 | 16,947 |
Selling, general and administrative | 5,415 | 5,793 | 11,330 | 12,419 |
Research, development and engineering | 915 | 713 | 1,537 | 1,579 |
Restructuring charges | 173 | 1,037 | ||
Operating (loss) income | (972) | 1,248 | 665 | 1,912 |
Loss on sale of subsidiary | (2,793) | |||
Interest income and other, net | 595 | 96 | 525 | 262 |
(Loss) income from continuing operations before income taxes | (377) | 1,344 | (1,603) | 2,174 |
Income tax provision | 166 | 332 | 207 | 914 |
(Loss) income from continuing operations, net of tax | (543) | 1,012 | (1,810) | 1,260 |
Loss from discontinued operations, net of tax | (11,151) | (6,647) | (11,816) | (9,267) |
Net loss | $ (11,694) | $ (5,635) | $ (13,626) | $ (8,007) |
(Loss) Income Per Basic Share: | ||||
Basic (loss) income per share from continuing operations | $ (0.04) | $ 0.07 | $ (0.13) | $ 0.09 |
Basic loss per share from discontinued operations | (0.79) | (0.47) | (0.83) | (0.65) |
Net loss per basic share | (0.83) | (0.40) | (0.96) | (0.56) |
(Loss) Income Per Diluted Share: | ||||
Diluted (loss) income per share from continuing operations | (0.04) | 0.07 | (0.13) | 0.09 |
Diluted loss per share from discontinued operations | (0.79) | (0.47) | (0.83) | (0.65) |
Net loss per diluted share | $ (0.83) | $ (0.40) | $ (0.96) | $ (0.56) |
Weighted average shares outstanding - basic | 14,150 | 14,228 | 14,193 | 14,224 |
Weighted average shares outstanding - diluted | 14,150 | 14,258 | 14,193 | 14,255 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (11,694) | $ (5,635) | $ (13,626) | $ (8,007) |
Foreign currency translation adjustment | (459) | (210) | 622 | (786) |
Reclassification adjustment for net foreign currency translation losses included in net loss | 7,205 | 8,797 | ||
Comprehensive loss | $ (4,948) | $ (5,845) | $ (4,207) | $ (8,793) |
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 Earnings (Accumulated Deficit) |
Beginning balance at Sep. 30, 2018 | $ 93,090 | $ 142 | $ 124,316 | $ (9,974) | $ (21,394) | |
Beginning balance (in shares) at Sep. 30, 2018 | 14,217,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (2,372) | (2,372) | ||||
Translation adjustment | (576) | (576) | ||||
Stock compensation expense | 169 | 169 | ||||
Stock options exercised | 37 | 37 | ||||
Stock options exercised (in shares) | 11,000 | |||||
Ending balance at Dec. 31, 2018 | 90,348 | $ 142 | 124,522 | (10,550) | (23,766) | |
Ending balance (in shares) at Dec. 31, 2018 | 14,228,000 | |||||
Beginning balance at Sep. 30, 2018 | 93,090 | $ 142 | 124,316 | (9,974) | (21,394) | |
Beginning balance (in shares) at Sep. 30, 2018 | 14,217,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (8,007) | |||||
Ending balance at Mar. 31, 2019 | 84,697 | $ 142 | 124,716 | (10,760) | (29,401) | |
Ending balance (in shares) at Mar. 31, 2019 | 14,228,000 | |||||
Beginning balance at Dec. 31, 2018 | 90,348 | $ 142 | 124,522 | (10,550) | (23,766) | |
Beginning balance (in shares) at Dec. 31, 2018 | 14,228,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (5,635) | (5,635) | ||||
Translation adjustment | (210) | (210) | ||||
Stock compensation expense | 194 | 194 | ||||
Ending balance at Mar. 31, 2019 | 84,697 | $ 142 | 124,716 | (10,760) | (29,401) | |
Ending balance (in shares) at Mar. 31, 2019 | 14,228,000 | |||||
Beginning balance at Sep. 30, 2019 | $ 87,452 | $ 143 | 125,098 | (11,233) | (26,556) | |
Beginning balance (in shares) at Sep. 30, 2019 | 14,268,797 | 14,269,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | $ (1,932) | (1,932) | ||||
Translation adjustment | 2,673 | 2,673 | ||||
Stock compensation expense | $ 68 | 68 | ||||
Stock repurchases (in Shares) | 0 | |||||
Stock options exercised | $ 701 | $ 1 | 700 | |||
Stock options exercised (in shares) | 117,000 | |||||
Ending balance at Dec. 31, 2019 | 88,962 | $ 144 | 125,866 | (8,560) | (28,488) | |
Ending balance (in shares) at Dec. 31, 2019 | 14,386,000 | |||||
Beginning balance at Sep. 30, 2019 | $ 87,452 | $ 143 | 125,098 | (11,233) | (26,556) | |
Beginning balance (in shares) at Sep. 30, 2019 | 14,268,797 | 14,269,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | $ (13,626) | |||||
Ending balance at Mar. 31, 2020 | $ 82,157 | $ 140 | 124,145 | (1,814) | (40,314) | |
Ending balance (in shares) at Mar. 31, 2020 | 14,041,322 | 14,041,000 | ||||
Beginning balance at Dec. 31, 2019 | $ 88,962 | $ 144 | 125,866 | (8,560) | (28,488) | |
Beginning balance (in shares) at Dec. 31, 2019 | 14,386,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (11,694) | (11,694) | ||||
Translation adjustment | 6,746 | 6,746 | ||||
Stock compensation expense | 65 | 65 | ||||
Stock repurchases | $ (2,000) | $ (2,000) | ||||
Stock repurchases (in Shares) | (366,000) | (366,000) | ||||
Retirement of stock repurchases | $ (4) | $ 2,000 | (1,864) | (132) | ||
Retirement of stock repurchases (in Shares) | (366,000) | 366,000 | ||||
Stock options exercised | $ 78 | 78 | ||||
Stock options exercised (in shares) | 21,000 | |||||
Ending balance at Mar. 31, 2020 | $ 82,157 | $ 140 | $ 124,145 | $ (1,814) | $ (40,314) | |
Ending balance (in shares) at Mar. 31, 2020 | 14,041,322 | 14,041,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Operating Activities | |||
Net loss | $ (13,626) | $ (8,007) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 694 | 888 | |
Write-down of inventory | 330 | 2,794 | |
Deferred income taxes | 784 | 7 | |
Non-cash share-based compensation expense | 133 | 363 | |
Loss on sales of subsidiaries | 13,709 | ||
(Reversal of) provision for allowance for doubtful accounts, net | (32) | 1,141 | |
Other, net | 4 | 115 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 1,374 | (1,533) | |
Inventories | (527) | (650) | |
Other assets | 3,667 | 10,143 | |
Accounts payable | (1,849) | (650) | |
Accrued income taxes | (2,094) | 216 | |
Accrued and other liabilities | (228) | (378) | |
Contract liabilities | (1,063) | (7,516) | |
Net cash provided by (used in) operating activities | 1,276 | (3,067) | |
Investing Activities | |||
Purchases of property, plant and equipment | (345) | (238) | |
Net cash disposed of in sales of subsidiaries | (9,940) | ||
Net cash used in investing activities | (10,285) | (238) | |
Financing Activities | |||
Proceeds from the exercise of stock options | 779 | 37 | |
Repurchase of common stock | (2,000) | ||
Payments on long-term debt | (194) | (186) | |
Net cash used in financing activities | (1,415) | (149) | |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | 558 | (903) | |
Net Decrease in Cash, Cash Equivalents and Restricted Cash | (9,866) | (4,357) | |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | [1] | 59,134 | 62,496 |
Cash, Cash Equivalents and Restricted Cash, End of Period | [1] | $ 49,268 | $ 58,139 |
[1] | Includes Cash, Cash Equivalents and Restricted Cash that are included in Held-For-Sale Assets on the Condensed Consolidated Balance Sheets for periods prior to January 22, 2020. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2020 | |
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 chips, electronic assemblies and light-emitting diodes (LEDs). We sell these products to semiconductor and automotive component 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, our 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. In the second quarter of fiscal 2019, we began the process to divest our solar business. As such, we have classified substantially all of the Solar segment as held for sale in our Condensed Consolidated Balance Sheets and reported its results as discontinued operations in our Condensed Consolidated Statements of Operations. These divestitures were completed in the second quarter of fiscal 2020. For additional information on the divestitures, see Note 4. For additional information on our segments, see Note 10. 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. The condensed balance sheet at September 30, 2019, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles 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, 2019. Our fiscal year is from October 1 to September 30. Unless otherwise stated, references to the years 2020 and 2019 relate to the fiscal years ended September 30, 2020 and 2019, respectively. The consolidated results of operations for the three and six months ended March 31, 2020, 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. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates – The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Reclassifications – Certain reclassifications have been made to prior year financial statements to conform to the current year presentation. Results for all periods presented in this report have been reclassified for changes to our reportable segments (Note 10). These reclassifications had no effect on the previously reported consolidated financial statements for any period. Divestitures – Significant accounting policies associated with a decision to dispose of a business are discussed below: Discontinued Operations – A business is classified as discontinued operations if the disposal represents a strategic shift that will have a major effect on operations or financial results and meets the criteria to be classified as held for sale or is disposed of by sale or otherwise. Significant judgments are involved in determining whether a business meets the criteria for discontinued operations reporting and the period in which these criteria are met. If a business is reported as a discontinued operation, the results of operations through the date of sale, including any gain or loss recognized on the disposition, are presented on a separate line of the Condensed Consolidated Statements of Operations. Interest on debt directly attributable to the discontinued operation is allocated to discontinued operations. Assets Held for Sale – An asset or business is classified as held for sale when (i) management commits to a plan to sell and it is actively marketed; (ii) it is available for immediate sale and the sale is expected to be completed within one year; and (iii) it is unlikely significant changes to the plan will be made or that the plan will be withdrawn. In isolated instances, assets held for sale may exceed one year due to events or circumstances beyond our control. The assets and related liabilities are aggregated and reported on separate lines of the Condensed Consolidated Balance Sheets. Shipping Expense – Shipping expenses of $0.1 million and $0.2 million in each of the three months ended March 31, 2020 and 2019, respectively, and $0.3 million and $0.5 million for the six months ended March 31, 2020 and 2019, 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 March 31, Six Months Ended March 31, 2020 2019 2020 2019 Research, development and engineering $ 1,017 $ 713 $ 1,780 $ 1,579 Grants earned (102 ) — (243 ) — Net research, development and engineering $ 915 $ 713 $ 1,537 $ 1,579 Concentrations of Credit Risk – Our customers consist primarily 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, 2020, one Semiconductor segment customer individually represented 10% of accounts receivable. As of September 30, 2019, one Semiconductor customer individually represented 15% 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 86% and 79% of total cash balances at our continuing operations as of March 31, 2020 and September 30, 2019, 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 China, the United Kingdom, Singapore 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 Effective October 1, 2019, we adopted the Financial Accounting Standards Board’s (“FASB”) Accounting Standard Update (“ASU”) No. 2016-02—Leases (Topic 842), using the retrospective cumulative effect adjustment transition method. We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. In addition, we made an accounting policy election not to separate non-lease components from lease components for all existing classes of underlying assets with the exception of land and buildings. We also made an accounting policy election to not record right of use (“ROU”) assets and lease liabilities for leases with an initial term of twelve months or less on our condensed consolidated balance sheet. Adoption of the new standard resulted in the recording of lease ROU assets and lease liabilities of approximately $195,000 and $163,000, respectively, as of October 1, 2019. The standard did not materially impact our consolidated results from operations and had no impact on our cash flows upon adoption. However, within the third quarter of fiscal 2020, we expect to record an additional $5.0 million of ROU assets and lease liabilities upon the commencement of our new SiC/LED building lease. Refer to Note 3 to the Condensed Consolidated Financial Statements for further information regarding Topic 842. 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 for the year ended September 30, 2019 that affect or may affect our consolidated financial statements. Recent Developments – COVID-19 On January 30, 2020 the World Health Organization declared an outbreak of a highly contagious form of an upper respiratory infection caused by COVID-19, a novel coronavirus strain commonly referred to as “coronavirus”. Amtech determined as a key supplier to essential businesses we were allowed to remain open and continue to supply our products and services in the geographic areas in U.S. in which we operate; however, federal and local guidelines and restrictions have significantly curtailed the level of economic activity in affected areas, which include the areas in which we conduct our business. See additional information in “Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Item 1a. Risk Factors”. |
Contracts with Customers
Contracts with Customers | 6 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Contracts with Customers | 2. Contracts with Customers The components of contract assets, which are included in other current assets in our condensed consolidated balance sheets, are as follows, in thousands: March 31, 2020 September 30, 2019 Unbilled accounts receivable $ — $ 36 Contract assets $ — $ 36 The components of contract liabilities are as follows, in thousands: March 31, 2020 September 30, 2019 Customer deposits $ 1,532 $ 1,378 Contract liabilities $ 1,532 $ 1,378 |
Leases
Leases | 6 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | 3. Leases We lease office space, buildings, land, vehicles and equipment. Lease agreements with an initial term of 12 months or less are not recorded on the balance sheet. Instead, we recognize the lease expense as incurred over the lease term. Certain lease agreements include one or more options to renew, with renewal terms that can extend the lease term from one to five years. The exercise of lease renewal options is at our sole discretion. Some agreements also include options to purchase the leased property. The estimated life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Significant Accounting Policy We determine if a contract or arrangement is, or contains, a lease at inception. Balances related to operating leases are included in other assets in our condensed consolidated balance sheet. Balances related to financing leases are immaterial and are included in property and equipment, other current liabilities, and long-term lease liability in our condensed consolidated balance sheet. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As none of our leases provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU asset includes any prepaid lease payments and additional direct costs and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. The following table provides information about the financial statement classification of our lease balances reported within the condensed consolidated balance sheets as of March 31, 2020 and October 1, 2019, in thousands: March 31, 2020 October 1, 2019 Assets Operating lease assets $ 32 $ 146 Finance lease assets 36 49 Total lease assets $ 68 $ 195 Liabilities Current Operating lease liabilities $ 14 $ 99 Finance lease liabilities 19 22 Non-current Operating lease liabilities 11 15 Finance lease liabilities 18 27 Total lease liabilities $ 62 $ 163 The following table provides information about the financial statement classification of our lease expenses reported in the condensed consolidated statements of operations for the three and six months ended March 31, 2020, in thousands: Lease cost Classification Three Months Ended March 31, 2020 Six Months Ended March 31, 2020 Operating lease cost Selling, general and administrative expenses $ 39 $ 115 Finance lease cost Selling, general and administrative expenses 8 15 Total lease cost $ 47 $ 130 Future minimum lease payments under non-cancelable leases, including leases that are executed but not yet effective, as of March 31, 2020 are as follows, in thousands: Operating leases Finance Leases Total Remainder of 2020 $ 73 $ 11 $ 84 2021 314 12 326 2022 313 7 320 2023 313 7 320 2024 311 2 313 Thereafter 7,264 — 7,264 Total lease payments 8,588 39 8,627 Less: Interest 3,442 2 3,444 Present value of lease liabilities 5,146 37 $ 5,183 Operating lease payments include $0 related to options to extend lease terms that are reasonably certain of being exercised. The following table provides information about the remaining lease terms and discount rates applied as of March 31, 2020: March 31, 2020 Weighted average remaining lease term (years) Operating leases 24.52 Finance leases 2.84 Weighted average discount rate (%) Operating leases 4.17 Finance leases 4.17 |
Assets Held for Sale, Discontin
Assets Held for Sale, Discontinued Operations and Disposals | 6 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Assets Held for Sale, Discontinued Operations and Disposals | 4. Assets Held for Sale, Discontinued Operations and Disposals In April 2019, we announced that our Board of Directors (the “Board”) determined that it was in the long-term best interest of the Company to exit the solar business segment and focus our strategic efforts on our semiconductor and silicon carbide/polishing business segments in order to more fully realize the opportunities the Company believes are presented in those areas. The anticipated divestitures of our solar business included our Tempress and SoLayTec subsidiaries, which comprised substantially all of our Solar segment. We adopted a plan to sell our Solar operations on or before March 31, 2020. As such, we classified substantially all of the Solar segment as held for sale in our Condensed Consolidated Balance Sheets and reported its results as discontinued operations in our Condensed Consolidated Statements of Operations. On June 7, 2019 (“SoLayTec Sale Date”), we completed the sale of our subsidiary, SoLayTec, to a third party located in the Netherlands. Upon the sale, we recognized a gain of approximately $1.6 million, which we reported as gain on sale of subsidiary in our Consolidated Statements of Operations for the three months ended June 30, 2019. Effective on the SoLayTec Sale Date, SoLayTec is no longer included in our consolidated financial statements. SoLayTec was not material to Amtech’s results of operations or financial position. On December 13, 2019 (“R2D Sale Date”), we finalized the sale of our subsidiary, R2D Automation SAS (“R2D”), to certain members of R2D’s management team. Upon the sale, we recognized a loss of approximately $2.8 million, which we reported as loss on sale of subsidiary in our Condensed Consolidated Statements of Operations for the six months ended March 31, 2020. Effective on the R2D Sale Date, R2D is no longer included in our consolidated financial statements. R2D does not meet the discontinued operations or held-for-sale criteria and is not material to Amtech’s results of operations or financial position. Effective January 22, 2020 (“Tempress Sale Date”), we completed the sale of our subsidiary, Tempress Group Holding B.V. (“Tempress”) for nominal consideration to a third party located in the Netherlands. In connection with this sale transaction, we provided an unsecured term loan to Tempress in the principal sum of $2.25 million, to be used to fund Tempress’ working capital requirements and to facilitate the restructuring of Tempress’ operations. To date, we have received repayment of $0.5 million of the loan balance. We have forgiven $0.5 million of the loan in accordance with the terms of the loan agreement and expect the remaining $1.25 million to be paid in the next 12 months. Therefore, we have recorded the note receivable within current assets on our Condensed Consolidated Balance Sheet as of March 31, 2020. We recorded a pre-tax loss on deconsolidation of approximately $10.9 million, of which approximately $7.2 million was the recognition of previously recorded accumulated foreign currency translation losses. The total pre-tax loss does not have a material effect on our cash balances at our continuing operations. We also recognized a significant tax benefit relating to this loss, which can be carried over to future years. Effective on the Tempress Sale Date, Tempress is no longer included in our consolidated financial statements. Operating results of our discontinued solar operations were as follows, in thousands: Three Months Ended March 31, Six Months Ended March 31, 2020 2019 2020 2019 Revenues, net of returns and allowances $ 2,155 $ 8,153 $ 7,442 $ 14,381 Cost of sales 1,830 9,229 5,969 15,352 Gross profit (loss) 325 (1,076 ) 1,473 (971 ) Selling, general and administrative 476 4,082 1,814 5,677 Research, development and engineering 91 831 540 1,911 Restructuring charges 37 591 37 601 Operating loss (279 ) (6,580 ) (918 ) (9,160 ) Loss on sale of subsidiary (10,916 ) — (10,916 ) — Interest expense and other, net (22 ) (48 ) (29 ) (70 ) Loss from discontinued operations before income taxes (11,217 ) (6,628 ) (11,863 ) (9,230 ) Income tax (benefit) provision (66 ) 19 (47 ) 37 Net loss from discontinued operations, net of tax $ (11,151 ) $ (6,647 ) $ (11,816 ) $ (9,267 ) The following table presents a summary of the solar assets and liabilities held for sale included in our Condensed Consolidated Balance Sheets, in thousands: Assets September 30, 2019 Total current assets $ 17,591 Property, plant and equipment - net 5,164 Total assets included in the disposal group 22,755 Total current liabilities 18,272 Long-term debt 275 Total liabilities included in the disposal group 18,547 Net assets included in the disposal group $ 4,208 Amtech’s Condensed Consolidated Statements of Cash Flows combines cash flows from discontinued operations with cash flows from continuing operations within each cash flow statement category. The following table summarizes selected cash flow information for discontinued operations, in thousands: Six Months Ended March 31, 2020 2019 Loss from discontinued operations, net of tax $ (11,816 ) $ (9,267 ) Depreciation and amortization $ 180 $ 287 (Reversal of) provision for allowance for doubtful accounts, net $ (66 ) $ 981 Purchases of property, plant and equipment $ 1 $ 96 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 5. Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similarly to basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if potentially dilutive common shares had been issued. In the case of a net loss, diluted earnings per share is calculated in the same manner as basic EPS. For the three and six months ended March 31, 2020, options for 641,000 and 690,000 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, 2019, options for 1,248,000 and 1,220,000 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 denominators of the basic and diluted EPS calculations follows (in thousands, except per share amounts): Three Months Ended March 31, Six Months Ended March 31, 2020 2019 2020 2019 Numerator: Net (loss) income from continuing operations $ (543 ) $ 1,012 $ (1,810 ) $ 1,260 Net loss from discontinued operations $ (11,151 ) $ (6,647 ) $ (11,816 ) $ (9,267 ) Net loss $ (11,694 ) $ (5,635 ) $ (13,626 ) $ (8,007 ) Denominator: Weighted-average shares used to compute basic EPS 14,150 14,228 14,193 14,224 Common stock equivalents (1) — 30 — 31 Weighted-average shares used to compute diluted EPS 14,150 14,258 14,193 14,255 Basic (loss) income per share from continuing operations $ (0.04 ) $ 0.07 $ (0.13 ) $ 0.09 Basic loss per share from discontinued operations $ (0.79 ) $ (0.47 ) $ (0.83 ) $ (0.65 ) Net loss per basic share $ (0.83 ) $ (0.40 ) $ (0.96 ) $ (0.56 ) Diluted (loss) income per share from continuing operations $ (0.04 ) $ 0.07 $ (0.13 ) $ 0.09 Diluted loss per share from discontinued operations $ (0.79 ) $ (0.47 ) $ (0.83 ) $ (0.65 ) Net loss per diluted share $ (0.83 ) $ (0.40 ) $ (0.96 ) $ (0.56 ) (1) The number of common stock equivalents is calculated using the treasury method and the average market price during the period. |
Inventory
Inventory | 6 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | 6. Inventory The components of inventories are as follows, in thousands: March 31, 2020 September 30, 2019 Purchased parts and raw materials $ 14,200 $ 15,192 Work-in-process 4,215 4,215 Finished goods 3,361 3,183 21,776 22,590 Excess and obsolete reserves (4,444 ) (5,058 ) $ 17,332 $ 17,532 |
Equity and Stock-Based Compensa
Equity and Stock-Based Compensation | 6 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity and Stock-Based Compensation | 7. Equity and Stock-Based Compensation Stock-based compensation expense was less than $0.1 million and $0.2 million for the three months ended March 31, 2020 and 2019, respectively, and was $0.1 million and $0.4 million in the six months ended March 31, 2020 and 2019, respectively. 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, 2020: Options Weighted Average Exercise Price Outstanding at beginning of period 1,068,665 $ 7.04 Granted 32,500 5.34 Exercised (138,525 ) 5.63 Forfeited (87,431 ) 6.67 Outstanding at end of period 875,209 $ 7.23 Exercisable at end of period 759,420 $ 7.48 Weighted average fair value of options granted during the period $ 2.89 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, 2020 Risk free interest rate 1 % Expected life 6 years Dividend rate — % Volatility 58 % On November 29, 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 (“Common Stock”), over a one-year On February 4, 2020, the Board approved a new stock repurchase program, pursuant to which the Company may repurchase up to $4 million of its outstanding Common Stock over a one-year |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes For the three months ended March 31, 2020 and 2019, we recorded income tax expense at our continuing operations of $0.2 million and $0.3 million, respectively. For the six months ended March 31, 2020 and 2019, we recorded income tax expense of $0.2 million and $0.9 million, respectively. In the three months ended March 31, 2020 and 2019, we recorded income tax benefit of $0.1 million and income tax expense of $19,000, respectively, in our discontinued operations. In the six months ended March 31, 2020 and 2019, we recorded income tax benefit of $47,000 and income tax expense of $37,000, respectively, in our discontinued operations. 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. 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. 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 classify all of our uncertain tax positions as income taxes payable long-term. At March 31, 2020 and September 30, 2019, the total amount of unrecognized tax benefits was approximately $1.2 million and $1.3 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 both March 31, 2020 and September 30, 2019, we had an accrual for potential interest and penalties of approximately $0.8 million classified with income taxes payable long-term. Amtech and one or more of our subsidiaries file income tax returns in 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 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 | 6 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Purchase Obligations – As of March 31, 2020, we had unrecorded purchase obligations at our continuing operations in the amount of $8.8 million compared to $4.4 million as of September 30, 2019. This increase was primarily the result of COVID-19 related closures throughout the second quarter of 2020. 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 and Change in Control Agreements – 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 thirty-six months of salary. |
Business Segments Information
Business Segments Information | 6 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segment Information | 10. Business Segment Information After announcing the planned divestiture of our Solar segment (see Note 4), we conducted an evaluation of our organizational structure. Beginning with the second quarter of fiscal 2019, we made changes to our reportable segments. With the divesture of our Automation segment in the first quarter of fiscal 2020, we further evaluated our organizational structure and concluded that we have two reportable business segments following the divestiture. Prior period amounts have been revised to conform to the current period segment reporting structure. 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. SiC/LED – We produce consumables and machinery for lapping (fine abrading) and polishing of materials, such as silicon and silicon carbide substrates, sapphire substrates, optical components, numerous types of crystalline materials, ceramics and metal components. We formerly referred to our SiC/LED segment as “Polishing.” Information concerning our business segments is as follows, in thousands: Three Months Ended March 31, Six Months Ended March 31, 2020 2019 2020 2019 Net Revenues: Semiconductor $ 11,992 $ 16,053 $ 29,224 $ 35,013 SiC/LED 2,468 3,273 5,285 6,256 Non-segment related — 1,307 643 2,589 $ 14,460 $ 20,633 $ 35,152 $ 43,858 Operating income (loss): Semiconductor $ (18 ) $ 1,732 $ 2,704 $ 4,477 SiC/LED 421 877 955 1,646 Non-segment related (1,375 ) (1,361 ) (2,994 ) (4,211 ) $ (972 ) $ 1,248 $ 665 $ 1,912 March 31, 2020 September 30, 2019 Identifiable Assets: Semiconductor $ 55,337 $ 56,855 SiC/LED 8,253 7,779 Non-segment related* 36,008 39,088 Held-for-sale assets** — 22,755 $ 99,598 $ 126,477 * Non-segment related assets include cash, property and other assets. ** See Note 4 for additional information on held-for-sale 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, 2019. |
Major Customers and Foreign Sal
Major Customers and Foreign Sales | 6 Months Ended |
Mar. 31, 2020 | |
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, 2020, no customer represented greater than 10% of net revenues. During the six months ended March 31, 2019, one Semiconductor segment customer individually represented 11% of our net revenues. Our net revenues were from customers in the following geographic regions: Six Months Ended March 31, 2020 2019 United States 34 % 40 % Other 6 % 2 % Total North America 40 % 42 % China 24 % 19 % Malaysia 4 % 3 % Taiwan 11 % 6 % Other 7 % 7 % Total Asia 46 % 35 % Germany 3 % 11 % Other 11 % 12 % Total Europe 14 % 23 % 100 % 100 % |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2020 | |
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 chips, electronic assemblies and light-emitting diodes (LEDs). We sell these products to semiconductor and automotive component 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, our 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. In the second quarter of fiscal 2019, we began the process to divest our solar business. As such, we have classified substantially all of the Solar segment as held for sale in our Condensed Consolidated Balance Sheets and reported its results as discontinued operations in our Condensed Consolidated Statements of Operations. These divestitures were completed in the second quarter of fiscal 2020. For additional information on the divestitures, see Note 4. For additional information on our segments, see Note 10. 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. The condensed balance sheet at September 30, 2019, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles 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, 2019. Our fiscal year is from October 1 to September 30. Unless otherwise stated, references to the years 2020 and 2019 relate to the fiscal years ended September 30, 2020 and 2019, respectively. The consolidated results of operations for the three and six months ended March 31, 2020, 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. 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 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. |
Reclassifications | Reclassifications – Certain reclassifications have been made to prior year financial statements to conform to the current year presentation. Results for all periods presented in this report have been reclassified for changes to our reportable segments (Note 10). These reclassifications had no effect on the previously reported consolidated financial statements for any period. |
Divestitures | Divestitures – Significant accounting policies associated with a decision to dispose of a business are discussed below: Discontinued Operations – A business is classified as discontinued operations if the disposal represents a strategic shift that will have a major effect on operations or financial results and meets the criteria to be classified as held for sale or is disposed of by sale or otherwise. Significant judgments are involved in determining whether a business meets the criteria for discontinued operations reporting and the period in which these criteria are met. If a business is reported as a discontinued operation, the results of operations through the date of sale, including any gain or loss recognized on the disposition, are presented on a separate line of the Condensed Consolidated Statements of Operations. Interest on debt directly attributable to the discontinued operation is allocated to discontinued operations. Assets Held for Sale – An asset or business is classified as held for sale when (i) management commits to a plan to sell and it is actively marketed; (ii) it is available for immediate sale and the sale is expected to be completed within one year; and (iii) it is unlikely significant changes to the plan will be made or that the plan will be withdrawn. In isolated instances, assets held for sale may exceed one year due to events or circumstances beyond our control. The assets and related liabilities are aggregated and reported on separate lines of the Condensed Consolidated Balance Sheets. |
Shipping Expense | Shipping Expense – Shipping expenses of $0.1 million and $0.2 million in each of the three months ended March 31, 2020 and 2019, respectively, and $0.3 million and $0.5 million for the six months ended March 31, 2020 and 2019, respectively, are included in selling, general and administrative expenses. |
Research, Development and Engineering Expenses | Research, Development and Engineering Expense – The table below shows gross research and development expenses and grants earned, in thousands: Three Months Ended March 31, Six Months Ended March 31, 2020 2019 2020 2019 Research, development and engineering $ 1,017 $ 713 $ 1,780 $ 1,579 Grants earned (102 ) — (243 ) — Net research, development and engineering $ 915 $ 713 $ 1,537 $ 1,579 |
Concentrations of Credit Risk | Concentrations of Credit Risk – Our customers consist primarily 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, 2020, one Semiconductor segment customer individually represented 10% of accounts receivable. As of September 30, 2019, one Semiconductor customer individually represented 15% 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 86% and 79% of total cash balances at our continuing operations as of March 31, 2020 and September 30, 2019, 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 China, the United Kingdom, Singapore 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 Effective October 1, 2019, we adopted the Financial Accounting Standards Board’s (“FASB”) Accounting Standard Update (“ASU”) No. 2016-02—Leases (Topic 842), using the retrospective cumulative effect adjustment transition method. We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. In addition, we made an accounting policy election not to separate non-lease components from lease components for all existing classes of underlying assets with the exception of land and buildings. We also made an accounting policy election to not record right of use (“ROU”) assets and lease liabilities for leases with an initial term of twelve months or less on our condensed consolidated balance sheet. Adoption of the new standard resulted in the recording of lease ROU assets and lease liabilities of approximately $195,000 and $163,000, respectively, as of October 1, 2019. The standard did not materially impact our consolidated results from operations and had no impact on our cash flows upon adoption. However, within the third quarter of fiscal 2020, we expect to record an additional $5.0 million of ROU assets and lease liabilities upon the commencement of our new SiC/LED building lease. Refer to Note 3 to the Condensed Consolidated Financial Statements for further information regarding Topic 842. 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 for the year ended September 30, 2019 that affect or may affect our consolidated financial statements. |
Recent Developments – COVID-19 | Recent Developments – COVID-19 On January 30, 2020 the World Health Organization declared an outbreak of a highly contagious form of an upper respiratory infection caused by COVID-19, a novel coronavirus strain commonly referred to as “coronavirus”. Amtech determined as a key supplier to essential businesses we were allowed to remain open and continue to supply our products and services in the geographic areas in U.S. in which we operate; however, federal and local guidelines and restrictions have significantly curtailed the level of economic activity in affected areas, which include the areas in which we conduct our business. See additional information in “Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Item 1a. Risk Factors”. |
Significant Accounting Policy | Significant Accounting Policy We determine if a contract or arrangement is, or contains, a lease at inception. Balances related to operating leases are included in other assets in our condensed consolidated balance sheet. Balances related to financing leases are immaterial and are included in property and equipment, other current liabilities, and long-term lease liability in our condensed consolidated balance sheet. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As none of our leases provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU asset includes any prepaid lease payments and additional direct costs and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Research, Development and Engineering Expense | The table below shows gross research and development expenses and grants earned, in thousands: Three Months Ended March 31, Six Months Ended March 31, 2020 2019 2020 2019 Research, development and engineering $ 1,017 $ 713 $ 1,780 $ 1,579 Grants earned (102 ) — (243 ) — Net research, development and engineering $ 915 $ 713 $ 1,537 $ 1,579 |
Contracts with Customers (Table
Contracts with Customers (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Contract with Customer, Asset and Liability | The components of contract assets, which are included in other current assets in our condensed consolidated balance sheets, are as follows, in thousands: March 31, 2020 September 30, 2019 Unbilled accounts receivable $ — $ 36 Contract assets $ — $ 36 The components of contract liabilities are as follows, in thousands: March 31, 2020 September 30, 2019 Customer deposits $ 1,532 $ 1,378 Contract liabilities $ 1,532 $ 1,378 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of Financial Statement Classification of Lease Balances With Condensed Consolidated Balance Sheet | The following table provides information about the financial statement classification of our lease balances reported within the condensed consolidated balance sheets as of March 31, 2020 and October 1, 2019, in thousands: March 31, 2020 October 1, 2019 Assets Operating lease assets $ 32 $ 146 Finance lease assets 36 49 Total lease assets $ 68 $ 195 Liabilities Current Operating lease liabilities $ 14 $ 99 Finance lease liabilities 19 22 Non-current Operating lease liabilities 11 15 Finance lease liabilities 18 27 Total lease liabilities $ 62 $ 163 |
Schedule of Financial Statement Classification of Lease Balances in Condensed Consolidated Statement of Operations | The following table provides information about the financial statement classification of our lease expenses reported in the condensed consolidated statements of operations for the three and six months ended March 31, 2020, in thousands: Lease cost Classification Three Months Ended March 31, 2020 Six Months Ended March 31, 2020 Operating lease cost Selling, general and administrative expenses $ 39 $ 115 Finance lease cost Selling, general and administrative expenses 8 15 Total lease cost $ 47 $ 130 |
Schedule of Future Minimum Lease Payments Under Non-cancelable Leases Including Leases | Future minimum lease payments under non-cancelable leases, including leases that are executed but not yet effective, as of March 31, 2020 are as follows, in thousands: Operating leases Finance Leases Total Remainder of 2020 $ 73 $ 11 $ 84 2021 314 12 326 2022 313 7 320 2023 313 7 320 2024 311 2 313 Thereafter 7,264 — 7,264 Total lease payments 8,588 39 8,627 Less: Interest 3,442 2 3,444 Present value of lease liabilities 5,146 37 $ 5,183 |
Schedule of Weighted Average Remaining Term and Discount Rates | The following table provides information about the remaining lease terms and discount rates applied as of March 31, 2020: March 31, 2020 Weighted average remaining lease term (years) Operating leases 24.52 Finance leases 2.84 Weighted average discount rate (%) Operating leases 4.17 Finance leases 4.17 |
Assets Held for Sale, Discont_2
Assets Held for Sale, Discontinued Operations and Disposals (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | Operating results of our discontinued solar operations were as follows, in thousands: Three Months Ended March 31, Six Months Ended March 31, 2020 2019 2020 2019 Revenues, net of returns and allowances $ 2,155 $ 8,153 $ 7,442 $ 14,381 Cost of sales 1,830 9,229 5,969 15,352 Gross profit (loss) 325 (1,076 ) 1,473 (971 ) Selling, general and administrative 476 4,082 1,814 5,677 Research, development and engineering 91 831 540 1,911 Restructuring charges 37 591 37 601 Operating loss (279 ) (6,580 ) (918 ) (9,160 ) Loss on sale of subsidiary (10,916 ) — (10,916 ) — Interest expense and other, net (22 ) (48 ) (29 ) (70 ) Loss from discontinued operations before income taxes (11,217 ) (6,628 ) (11,863 ) (9,230 ) Income tax (benefit) provision (66 ) 19 (47 ) 37 Net loss from discontinued operations, net of tax $ (11,151 ) $ (6,647 ) $ (11,816 ) $ (9,267 ) The following table presents a summary of the solar assets and liabilities held for sale included in our Condensed Consolidated Balance Sheets, in thousands: Assets September 30, 2019 Total current assets $ 17,591 Property, plant and equipment - net 5,164 Total assets included in the disposal group 22,755 Total current liabilities 18,272 Long-term debt 275 Total liabilities included in the disposal group 18,547 Net assets included in the disposal group $ 4,208 Six Months Ended March 31, 2020 2019 Loss from discontinued operations, net of tax $ (11,816 ) $ (9,267 ) Depreciation and amortization $ 180 $ 287 (Reversal of) provision for allowance for doubtful accounts, net $ (66 ) $ 981 Purchases of property, plant and equipment $ 1 $ 96 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Denominators of Basic and Diluted EPS Calculations | A reconciliation of the denominators of the basic and diluted EPS calculations follows (in thousands, except per share amounts): Three Months Ended March 31, Six Months Ended March 31, 2020 2019 2020 2019 Numerator: Net (loss) income from continuing operations $ (543 ) $ 1,012 $ (1,810 ) $ 1,260 Net loss from discontinued operations $ (11,151 ) $ (6,647 ) $ (11,816 ) $ (9,267 ) Net loss $ (11,694 ) $ (5,635 ) $ (13,626 ) $ (8,007 ) Denominator: Weighted-average shares used to compute basic EPS 14,150 14,228 14,193 14,224 Common stock equivalents (1) — 30 — 31 Weighted-average shares used to compute diluted EPS 14,150 14,258 14,193 14,255 Basic (loss) income per share from continuing operations $ (0.04 ) $ 0.07 $ (0.13 ) $ 0.09 Basic loss per share from discontinued operations $ (0.79 ) $ (0.47 ) $ (0.83 ) $ (0.65 ) Net loss per basic share $ (0.83 ) $ (0.40 ) $ (0.96 ) $ (0.56 ) Diluted (loss) income per share from continuing operations $ (0.04 ) $ 0.07 $ (0.13 ) $ 0.09 Diluted loss per share from discontinued operations $ (0.79 ) $ (0.47 ) $ (0.83 ) $ (0.65 ) Net loss per diluted share $ (0.83 ) $ (0.40 ) $ (0.96 ) $ (0.56 ) (1) The number of common stock equivalents is calculated using the treasury method and the average market price during the period. |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventories | The components of inventories are as follows, in thousands: March 31, 2020 September 30, 2019 Purchased parts and raw materials $ 14,200 $ 15,192 Work-in-process 4,215 4,215 Finished goods 3,361 3,183 21,776 22,590 Excess and obsolete reserves (4,444 ) (5,058 ) $ 17,332 $ 17,532 |
Equity and Stock-Based Compen_2
Equity and Stock-Based Compensation (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | The following table summarizes our stock option activity during the six months ended March 31, 2020: Options Weighted Average Exercise Price Outstanding at beginning of period 1,068,665 $ 7.04 Granted 32,500 5.34 Exercised (138,525 ) 5.63 Forfeited (87,431 ) 6.67 Outstanding at end of period 875,209 $ 7.23 Exercisable at end of period 759,420 $ 7.48 Weighted average fair value of options granted during the period $ 2.89 |
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, 2020 Risk free interest rate 1 % Expected life 6 years Dividend rate — % Volatility 58 % |
Business Segments Information (
Business Segments Information (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Business Segment Information | Information concerning our business segments is as follows, in thousands: Three Months Ended March 31, Six Months Ended March 31, 2020 2019 2020 2019 Net Revenues: Semiconductor $ 11,992 $ 16,053 $ 29,224 $ 35,013 SiC/LED 2,468 3,273 5,285 6,256 Non-segment related — 1,307 643 2,589 $ 14,460 $ 20,633 $ 35,152 $ 43,858 Operating income (loss): Semiconductor $ (18 ) $ 1,732 $ 2,704 $ 4,477 SiC/LED 421 877 955 1,646 Non-segment related (1,375 ) (1,361 ) (2,994 ) (4,211 ) $ (972 ) $ 1,248 $ 665 $ 1,912 March 31, 2020 September 30, 2019 Identifiable Assets: Semiconductor $ 55,337 $ 56,855 SiC/LED 8,253 7,779 Non-segment related* 36,008 39,088 Held-for-sale assets** — 22,755 $ 99,598 $ 126,477 * Non-segment related assets include cash, property and other assets. ** See Note 4 for additional information on held-for-sale assets. |
Major Customers and Foreign S_2
Major Customers and Foreign Sales (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 United States 34 % 40 % Other 6 % 2 % Total North America 40 % 42 % China 24 % 19 % Malaysia 4 % 3 % Taiwan 11 % 6 % Other 7 % 7 % Total Asia 46 % 35 % Germany 3 % 11 % Other 11 % 12 % Total Europe 14 % 23 % 100 % 100 % |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Shipping Expense - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Schedule Of Expense [Line Items] | ||||
Selling, general and administrative expenses | $ 5,415 | $ 5,793 | $ 11,330 | $ 12,419 |
Shipping | ||||
Schedule Of Expense [Line Items] | ||||
Selling, general and administrative expenses | $ 100 | $ 200 | $ 300 | $ 500 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Summary of Research, Development and Engineering Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||
Research, development and engineering | $ 1,017 | $ 713 | $ 1,780 | $ 1,579 |
Grants earned | (102) | (243) | ||
Net research, development and engineering | $ 915 | $ 713 | $ 1,537 | $ 1,579 |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies - Concentrations of Credit Risk - Additional Information (Details) | 6 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Sep. 30, 2019 | |
US Treasuries and FDIC Insured | ||
Concentration Risk [Line Items] | ||
Percentage of cash balances | 86.00% | 79.00% |
Customer One | Accounts Receivable | Customer Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.00% | 15.00% |
Basis of Presentation and Sig_7
Basis of Presentation and Significant Accounting Policies - Impact of Recently Issued Accounting Pronouncements - Additional Information (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 | Oct. 01, 2019 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
ROU assets | $ 68,000 | $ 195,000 | |
Lease liabilities | $ 62,000 | $ 163,000 | |
Scenario Forecast | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
ROU assets | $ 5,000,000 | ||
Lease liabilities | $ 5,000,000 |
Contracts with Customers - Cont
Contracts with Customers - Contract Assets (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Revenue From Contract With Customer [Abstract] | |
Unbilled accounts receivable | $ 36 |
Contract assets | $ 36 |
Contracts with Customers - Co_2
Contracts with Customers - Contract Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Capitalized Contract Cost [Line Items] | ||
Contract liabilities | $ 1,532 | $ 1,378 |
Customer deposits | ||
Capitalized Contract Cost [Line Items] | ||
Contract liabilities | $ 1,532 | $ 1,378 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 6 Months Ended |
Mar. 31, 2020USD ($) | |
Lessee Lease Description [Line Items] | |
Operating lease, existence of option to extend | true |
Operating lease, option to extend lease terms, description | Operating lease payments include $0 related to options to extend lease terms that are reasonably certain of being exercised. |
Payments related to options to extend lease terms | $ 0 |
Minimum | |
Lessee Lease Description [Line Items] | |
Operating lease renewal term | 1 year |
Maximum | |
Lessee Lease Description [Line Items] | |
Operating lease renewal term | 5 years |
Leases - Schedule of Financial
Leases - Schedule of Financial Statement Classification of Lease Balances With Condensed Consolidated Balance Sheet (Details) - USD ($) | Mar. 31, 2020 | Oct. 01, 2019 |
Leases [Abstract] | ||
Operating lease assets | $ 32,000 | $ 146,000 |
Finance lease assets | 36,000 | 49,000 |
Total lease assets | 68,000 | 195,000 |
Operating lease liabilities | 14,000 | 99,000 |
Finance lease liabilities | 19,000 | 22,000 |
Operating lease liabilities | 11,000 | 15,000 |
Finance lease liabilities | 18,000 | 27,000 |
Total lease liabilities | $ 62,000 | $ 163,000 |
Leases - Schedule of Financia_2
Leases - Schedule of Financial Statement Classification of Lease Balances in Condensed Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Mar. 31, 2020 | Mar. 31, 2020 | |
Lessee Lease Description [Line Items] | ||
Total lease cost | $ 47 | $ 130 |
Selling, general and administrative expenses | ||
Lessee Lease Description [Line Items] | ||
Operating lease cost | 39 | 115 |
Finance lease cost | $ 8 | $ 15 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Under Non-cancelable Leases Including Leases (Detail) $ in Thousands | Mar. 31, 2020USD ($) |
Operating Lease | |
Remainder of 2020 | $ 73 |
2021 | 314 |
2022 | 313 |
2023 | 313 |
2024 | 311 |
Thereafter | 7,264 |
Total lease payments | 8,588 |
Less: Interest | 3,442 |
Present value of lease liabilities | 5,146 |
Finance Lease | |
Remainder of 2020 | 11 |
2021 | 12 |
2022 | 7 |
2023 | 7 |
2024 | 2 |
Total lease payments | 39 |
Less: Interest | 2 |
Present value of lease liabilities | 37 |
Operating Lease and Finance lease | |
Remainder of 2020 | 84 |
2021 | 326 |
2022 | 320 |
2023 | 320 |
2024 | 313 |
Thereafter | 7,264 |
Total lease payments | 8,627 |
Less: Interest | 3,444 |
Present value of lease liabilities | $ 5,183 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Term and Discount Rates (Detail) | Mar. 31, 2020 |
Leases [Abstract] | |
Operating leases, Weighted average remaining lease term (years) | 24 years 6 months 7 days |
Finance leases, Weighted average remaining lease term (years) | 2 years 10 months 2 days |
Operating leases, Weighted average discount rate | 4.17% |
Finance leases, Weighted average discount rate | 4.17% |
Assets Held for Sale, Discont_3
Assets Held for Sale, Discontinued Operations and Disposals - Additional Information (Details) - USD ($) $ in Thousands | Jan. 22, 2020 | Jun. 07, 2019 | Mar. 31, 2020 | Mar. 31, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain (Loss) on sale of subsidiary | $ (13,709) | |||
SoLayTec | Discontinued Operations, Disposed of by Sale [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain (Loss) on sale of subsidiary | $ 1,600 | |||
R2D | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain (Loss) on sale of subsidiary | (2,800) | |||
Tempress | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Unsecured term loan, principal amount | $ 2,250 | |||
Repayment of loan received | $ 500 | |||
Expected pre-tax loss on deconsolidation | 10,900 | |||
Previously recorded accumulated foreign currency translation losses recognized | $ 7,200 | |||
Forgiven unsecured term loans | 500 | |||
Remaining repayment of loan received | $ 1,250 |
Assets Held for Sale, Discont_4
Assets Held for Sale, Discontinued Operations and Disposals - Operating Results of Discontinued Operations (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income tax (benefit) provision | $ (100,000) | $ 19,000 | $ (47,000) | $ 37,000 |
Net loss from discontinued operations, net of tax | (11,151,000) | (6,647,000) | (11,816,000) | (9,267,000) |
Tempress and SoLayTec | Discontinued Operations, Held-for-sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenues, net of returns and allowances | 2,155,000 | 8,153,000 | 7,442,000 | 14,381,000 |
Cost of sales | 1,830,000 | 9,229,000 | 5,969,000 | 15,352,000 |
Gross profit (loss) | 325,000 | (1,076,000) | 1,473,000 | (971,000) |
Selling, general and administrative | 476,000 | 4,082,000 | 1,814,000 | 5,677,000 |
Research, development and engineering | 91,000 | 831,000 | 540,000 | 1,911,000 |
Restructuring charges | 37,000 | 591,000 | 37,000 | 601,000 |
Operating loss | (279,000) | (6,580,000) | (918,000) | (9,160,000) |
Loss on sale of subsidiary | (10,916,000) | (10,916,000) | ||
Interest expense and other, net | (22,000) | (48,000) | (29,000) | (70,000) |
Loss from discontinued operations before income taxes | (11,217,000) | (6,628,000) | (11,863,000) | (9,230,000) |
Income tax (benefit) provision | (66,000) | 19,000 | (47,000) | 37,000 |
Net loss from discontinued operations, net of tax | $ (11,151,000) | $ (6,647,000) | $ (11,816,000) | $ (9,267,000) |
Assets Held for Sale, Discont_5
Assets Held for Sale, Discontinued Operations and Disposals - Assets and Liabilities Held for Sale (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Assets | |
Total current assets | $ 22,755 |
Total current liabilities | 18,547 |
Tempress | Discontinued Operations, Held-for-sale | |
Assets | |
Total current assets | 17,591 |
Property, plant and equipment - net | 5,164 |
Total assets included in the disposal group | 22,755 |
Total current liabilities | 18,272 |
Long-term debt | 275 |
Total liabilities included in the disposal group | 18,547 |
Net assets included in the disposal group | $ 4,208 |
Assets Held for Sale, Discont_6
Assets Held for Sale, Discontinued Operations and Disposals - Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
(Reversal of) provision for allowance for doubtful accounts, net | $ (32) | $ 1,141 |
Tempress and SoLayTec | Discontinued Operations, Held-for-sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss from discontinued operations, net of tax | (11,816) | (9,267) |
Depreciation and amortization | 180 | 287 |
(Reversal of) provision for allowance for doubtful accounts, net | (66) | 981 |
Purchases of property, plant and equipment | $ 1 | $ 96 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Stock Options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 641,000 | 1,248,000 | 690,000 | 1,220,000 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Denominators of Basic and Diluted EPS Calculations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | ||||
Net (loss) income from continuing operations | $ (543) | $ 1,012 | $ (1,810) | $ 1,260 |
Net loss from discontinued operations | (11,151) | (6,647) | (11,816) | (9,267) |
Net loss | $ (11,694) | $ (5,635) | $ (13,626) | $ (8,007) |
Denominator: | ||||
Weighted-average shares used to compute basic EPS | 14,150 | 14,228 | 14,193 | 14,224 |
Common stock equivalents | 30 | 31 | ||
Weighted-average shares used to compute diluted EPS | 14,150 | 14,258 | 14,193 | 14,255 |
Basic (loss) income per share from continuing operations | $ (0.04) | $ 0.07 | $ (0.13) | $ 0.09 |
Basic loss per share from discontinued operations | (0.79) | (0.47) | (0.83) | (0.65) |
Net loss per basic share | (0.83) | (0.40) | (0.96) | (0.56) |
Diluted (loss) income per share from continuing operations | (0.04) | 0.07 | (0.13) | 0.09 |
Diluted loss per share from discontinued operations | (0.79) | (0.47) | (0.83) | (0.65) |
Net loss per diluted share | $ (0.83) | $ (0.40) | $ (0.96) | $ (0.56) |
Inventory - Schedule of Compone
Inventory - Schedule of Components of Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Inventory Disclosure [Abstract] | ||
Purchased parts and raw materials | $ 14,200 | $ 15,192 |
Work-in-process | 4,215 | 4,215 |
Finished goods | 3,361 | 3,183 |
Inventory, gross | 21,776 | 22,590 |
Excess and obsolete reserves | (4,444) | (5,058) |
Inventory | $ 17,332 | $ 17,532 |
Equity and Stock-Based Compen_3
Equity and Stock-Based Compensation - Additional Information (Details) - USD ($) | Feb. 10, 2020 | Nov. 29, 2018 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Sep. 30, 2019 |
Equity [Abstract] | ||||||||
Stock-based compensation expense | $ 100,000 | $ 200,000 | $ 133,000 | $ 363,000 | ||||
Authorized stock repurchase amount | $ 4,000,000 | $ 4,000,000 | ||||||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Stock repurchase program period | 1 year | 1 year | ||||||
Shares repurchased and retired during the period | 366,000 | 0 | ||||||
Total cost of shares repurchased and retired | $ 2,000,000 | |||||||
Average price per share of shares repurchased | $ 5.46 | |||||||
Remaining authorized amount available for repurchase | $ 2,000,000 | $ 2,000,000 |
Equity and Stock-Based Compen_4
Equity and Stock-Based Compensation - Summary of Stock Option Activity (Details) - Stock Options | 6 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Options | |
Outstanding at beginning of period | shares | 1,068,665 |
Granted | shares | 32,500 |
Exercised | shares | (138,525) |
Forfeited | shares | (87,431) |
Outstanding at end of period | shares | 875,209 |
Exercisable at end of period | shares | 759,420 |
Weighted average fair value of options granted during the period | $ 2.89 |
Weighted Average Exercise Price | |
Outstanding at beginning of period | 7.04 |
Granted | 5.34 |
Exercised | 5.63 |
Forfeited | 6.67 |
Outstanding at end of period | 7.23 |
Exercisable at end of period | $ 7.48 |
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, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Risk free interest rate | 1.00% |
Expected life | 6 years |
Volatility | 58.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Sep. 30, 2019 | |
Income Tax Contingency [Line Items] | |||||
Income tax expense | $ 166,000 | $ 332,000 | $ 207,000 | $ 914,000 | |
Income tax expense from discontinued operations | (100,000) | $ 19,000 | (47,000) | $ 37,000 | |
Unrecognized tax benefits that would impact effective tax rate | 1,200,000 | 1,200,000 | $ 1,300,000 | ||
Accrual for potential interest and penalties | $ 800,000 | $ 800,000 | $ 800,000 | ||
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 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2020 | Sep. 30, 2019 | |
Commitments and Contingencies [Line Items] | ||
Purchase obligation | $ 8.8 | $ 4.4 |
Minimum | ||
Commitments and Contingencies [Line Items] | ||
Severance payment term | 12 months | |
Maximum | ||
Commitments and Contingencies [Line Items] | ||
Severance payment term | 36 months |
Business Segment Information -
Business Segment Information - Additional Information (Details) | 6 Months Ended |
Mar. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of business segments | 2 |
Business Segment Information _2
Business Segment Information - Schedule of Business Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | |||||
Net revenues | $ 14,460 | $ 20,633 | $ 35,152 | $ 43,858 | |
Operating income (loss) | (972) | 1,248 | 665 | 1,912 | |
Identifiable assets | 99,598 | 99,598 | $ 126,477 | ||
Discontinued Operations | |||||
Segment Reporting Information [Line Items] | |||||
Identifiable assets | 22,755 | ||||
Operating Segments | Semiconductor | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 11,992 | 16,053 | 29,224 | 35,013 | |
Operating income (loss) | (18) | 1,732 | 2,704 | 4,477 | |
Identifiable assets | 55,337 | 55,337 | 56,855 | ||
Operating Segments | SiC/LED | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 2,468 | 3,273 | 5,285 | 6,256 | |
Operating income (loss) | 421 | 877 | 955 | 1,646 | |
Identifiable assets | 8,253 | 8,253 | 7,779 | ||
Non-Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 1,307 | 643 | 2,589 | ||
Operating income (loss) | (1,375) | $ (1,361) | (2,994) | $ (4,211) | |
Identifiable assets | $ 36,008 | $ 36,008 | $ 39,088 |
Major Customers and Foreign S_3
Major Customers and Foreign Sales - Additional Information (Details) | 6 Months Ended |
Mar. 31, 2019 | |
Net Revenues | Customer Concentration Risk | Customer One | |
Revenue, Major Customer [Line Items] | |
Concentration risk, percentage | 11.00% |
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, 2020 | Mar. 31, 2019 | |
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 100.00% | 100.00% |
United States | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 34.00% | 40.00% |
Other North America | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 6.00% | 2.00% |
Total North America | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 40.00% | 42.00% |
China | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 24.00% | 19.00% |
Malaysia | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 4.00% | 3.00% |
Taiwan | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 11.00% | 6.00% |
Other Asia | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 7.00% | 7.00% |
Total Asia | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 46.00% | 35.00% |
Germany | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 3.00% | 11.00% |
Other Europe | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 11.00% | 12.00% |
Total Europe | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 14.00% | 23.00% |