ASYS - Earnings call transcript Q2 2018

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Operator

Good afternoon and welcome to the Amtech Systems Second Quarter 2018 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. Please note that this event is being recorded. I would now like to turn the conference over to Robert Hass, Chief Financial Officer. sir. ahead, go Please

Robert Hass

thank fiscal joining call. year and Systems for second quarter XXXX you afternoon us for Amtech Good results conference

the introduce Chief in announced. J.S. Pentinga, are Financial Vice Officer. Robert call President Executive also Chief two On Fokko like individuals would Chairman; to to Hass, Whang, Amtech's previously our the Officer; January Executive Amtech's and as I and today, myself, President today promoted

Michael First, was Vice promoted Operations. President, Wang, to

Michael Wang

afternoon. Good

Robert Hass

President Gibbs and Corporate Accounting has retaining been responsibilities Lisa Vice her to And while Chief promoted Officer, as Controller. our

Lisa Gibbs

afternoon. Good

Robert Hass

you. at Amtech release second earnings the results amtechsystems.com. March Thank quarter After its the That site close XXXX. will of be ending today, for XXXX, XX, released trading posted of on year fiscal web financial Amtech's

could call J.S.? XX-K will market the conditions, overall and our in government-funded of risk solar for Chairman, Whang, the of trade call, markets; those including any such our future economic make from in we the the and Securities demand Commission These political Exchange on forward-looking and used customers actual materially performance, differ today's of management Filings, now the and based are us volatility credit over actual update and All effect changes and statements this statements results are and to in not could discussion. available including of our date acceptance statements to J.S. and and differ materially such XX-Q. statements. factors are; Form begin changing detailed Executive initiatives information Forms obligation forward-looking change forward-looking products; the the to worldwide assume guarantees our which statements. the All important technologies current are no market the to effect as will cause to sanctions; I forward-looking Among factors in turn by equity and expectations. from conditions, the competitors; results During risks. including our

J.S. Whang

Thank today. joining you our you, Thank call Robert. for

polishing We business, are global a delivering happy continues and solutions upon to our our on forward-looking again cycle. stream and distinctive our technology with objective the solar cash to possessing closely predictable evolve, flow our report planned customers. our solar our consistent as In earnings, of industry we are business are semi to while balance business that technologies, of working building

expanding Solar effective solutions. for momentum of Annual a that continuously end of for global installed was in energy XXX cost the XXXX, more market. huge reduce solar growth renewable capacity more a clean is of XXXX is around total and almost users. industrial, gigawatts, for and cost that on cell utility foundation and scale is reliance double energy commercial, The for market strong the manufacturing productions development solar residential, the ongoing solutions

protect technologies Our look to to customers marketplace. edge positions their and advance in the leading

We technology of key have seen that, differentiation driver cost. a so but investment not is only is decisions,

summary, we long polishing term. semi with our In over combination conjunction in our us we support longstanding the believe in technologies improving well needs, superior businesses the to are value constantly both development shareholder and future solar, our better our alignment position cost to and So customers' enhance the position of customers. of

Now CEO. I to the our turn over will Fokko, call

Fokko Pentinga

our to Thank you, J.S. Welcome discussion today.

Amtech. As appreciate always, we interest in your

our and As of again second polishing results. businesses our semiconductor J.S. mentioned, consistent the in is quarter performance validated

meaningful saw quarter. converted BTU demand, in continued Our to performance that Hoffman PR business and units the

focus to development on We customer to technology continue from needs elucidate market service.

automotive and and power in semi consumer ongoing strength in see business fiscal the demand second in of to polishing half the given the expect this markets. year, our We high electronics,

and large good after results. million last a bookings second over inherent turnkey of shipped solar, and Phase-II business; our quarters $XX evident performance few in a quarter fluctuations financial solar including including was of our of financial quarter-by-quarter we results, quarter, the project, discuss let's the Now where

We are customer, plans. assist to with next phase their in our turnkey large engaged

to to continue We service competitive, are We great terms, Phase-III diligently in price, our forward delivering believe operational The throughput focused solar look all market to where considerations. equipment capabilities global to order offering, bring still responsiveness. We payment level working we constant and months. a and the have an excellence position edge have technology, of is our are team highly highest to do, coming is innovation, the cost-to-value more work and best on comparisons. and leading

lower of are we a given last the strategic the see locations more As and pricing changes ongoing outsourcing equipment as the in pressure. sourcing to cost China. discussed we We priority, in components marketplace solar manufacturing doing quarter, this the of and of evaluating high

to We technologies, N-Type on emitter CVD the over Topcon a processes, low made based produce with XX% our layer polysilicon technology, passivated can continue bifacial with efficiency. advance by pressure like cells that

quarter's share. the advanced over these in Robert Robert? position compete And system market With detail. technologies go reduction, and effectively will continued for cost ourselves more results now, to we

Robert Hass

Thank you, Fokko.

Let's cash the expected is $XX.X to orders At million the quarter solar were XXXX $XX are large XXXX the to that of quarter compared now sequential offset compared to backlog revenue to includes shipments backlog first of was the at of March $XX XX, The ship million XX, $XX.X and $XX.X order project. December the semiconductor solar year, in with second XXXX. in within in XX March the million the $XX.X net Net solar Phase-II deferred quarter quarter at Compared large The million, September by year a XXXX to customer and fiscal XX, shipment revenue due million, primarily XXXX. prior flat, was million segment, second to in shipments. turnkey for including contributed fiscal $XX.X the compared and also this in $XX a is financial all slightly next quarter, million at million and the more equipment with than our polishing million review quarter relatively XXXX. of our $XX.X solar segment revenue sequential over results. XXXX, decrease. decrease second increases of Backlog of fiscal preceding timing orders fiscal in in months. for equivalents of to total shipments, Unrestricted and cash XX, semiconductor decreases the

coming $XX cyclical the quarter mid for a XX, take to changes our with upper solar operating ending for slightly XX% June company in the semiconductor be be be market inherently let's view XXXX impacted and negative. at is in XX, $XX by can in margin to June to equipment periods; and expects demand. industries range, the The expected to look Now, ending of XXXX the the Gross revenues million. the for range quarter margin million

over of operating the shipments be affected Operating results significantly manufacturers. timing rate, press of quarters and Euro, United operating Euros. of Additionally, release, The lines, in shipments, solar effect results. in exchange on could net Q&A X of the significant I between anticipated. results and significant the Amtech's decrease for this outlook impacted results States by could dollar, be the influenced operator call to the startup cause turnkey milestones can lower an can deferral timing semiconductor and the be impact now the denominated actual will revenue The are assumed the coming than turn on revenues in value by to also be provided of of is our of results the States the of start by revenue portion dollar Phase-III revenue Euro based will a call. recognition all portion relationship revenue orders, of of based which production the of the and system order have project. on gigawatt substantial United turnkey to on The customer the acceptances, meeting financial a

Operator

go Company. the And Cowen question Instructions]. Osborne first from ahead. from [Operator Jeff comes and Please

Jeff Osborne

backlog and on they you Couple etcetera, shipping, can would assume how questions of was is business a business helpful? my be would afternoon customer? give I III be of that modules Phase I if bifacial momentum could order. get perspective like guys. producing you perspective progressing their Are of end. give Good needed would to sense Any your the wondering today and and

Fokko Pentinga

customers at not where moment. Jeff. to that are necessarily try a like solar do in is startup, new this exactly Yeah. region I really They others. These will there now a maybe

Phase first second operational, so all need the final our go So factory In our to last of then installed through up get got of was two, I still there the the the was by we acceptance in and machines And we started we first acceptance. phase just throughput first everything. gutter the there. to

in third that part, very we efficiency not showing are yield, is yet. are fully Now so the producing we to close the getting

the of is are For whole than building difficult up business. their market other They solar the market, the them, side. course

a just we finalize and there, start timing installation the in few will think I So Phase-II this weeks. important that installation Phase-I it's

the So it's the go point really next they closer coming can phase. that to to

more channel, the project think affect a this sales not next and of only I would you order an I does But and and have it, necessarily right? have an would a of bit take their it when have have been startups yet, there output their these hoped is So And sooner. issue with little not time, to necessarily bit not that new you there phases so it's follow.

Jeff Osborne

growth order? Got potentially anyone funnel, placing was on dependent largely pipeline outside activity or near folks on this hear. else person perspective Is these term the it. with sense turnkey the in or Is of to one That backlog levels to customers. great other an any of one Fokko, or company? close

Fokko Pentinga

company one, Well it of and uses very this all big course a one equipment. of is our

have it full, projects and according all gigawatt if have But is plan for next said bit companies. major look our we number little a here, was individual needed at everything different equipments what's always if handle hands will to year think So a our goes that turnkey, ticket more. option we reality because of I in the to we you

But the too next if work somewhat be But when get down them that should than short to term the more, more level get more more from will next next that's with think our the technology, open the able that. I potential the further a sell to Topcon, that, I more full And with than line. so higher for the something be will the I and little of level bit in am to we lot would not phases, also now happy on we efficiencies. now. have and a turnkeys hands on, we take happy we

Jeff Osborne

Makes sense. BTU? in the stronger as thoughts you little Any the of sense been is turns a second quick in Was active there just June count us, side, one, on to than we side, perspective the and quarter. there, how or were bit the count? Can Two on it turn Have get came cycle should lead PR revenue ones; modeling that then of here just quick be you as share between in remind share helpful? on quarter. the semi And semiconductor this to pretty recognition market, the other order the end sense a time business would buyback? well trying be any sudden the the some popped to expecting from strength Hoffman, revenue you up

Fokko Pentinga

do Well short a on especially I PR that's shipping. between and Hoffman, part can time Jeff. the relatively booking second With

short. say that's I wouldn't days, sometimes very a turnaround, but of So it is

market just So shipments the in good that's quarter. this doing for

taking shipment If got reflow really also, It's reflow think it's of going the products also order in but is they nice business market. good, their The and time the are good. And BTU, business. some that a you of for look doing new at short market piece combination. I a general, well, a between is most

BTU a temp, business shipping, we direct getting a product. as years definitely a On bit is like range, furnaces they four three are market strong order that hesitant now of high of it between doing is a also high ago, temp and longer that the at bigger and traditional type Besides least, the cup [ph], doing and general the to but heat and a cycle. really position five market is conveyor high and bonding share, medium feels in which improving of well. are an a just calls bit little good and struggling, but the the were power that's term, is what the more and We say, they that, bit well, their and at is the are or just belt example, of for applications, months treatment, maybe

continues be So market it's that to combination, a strong. and

affect few However, say also all of a Robert are and let's near there term. we sudden And don't that have these shares, there a where say see words? are the happening, that, it so can far, about could things restrictions, the in way. maybe But

Robert Hass

in shares quarter, next So board not have reviewed in and this this point, that we repurchased at be our meeting. will

Jeff Osborne

you. Got it. Thank Appreciate it.

Operator

Instructions]. [Operator

comes Please Capital from from Shen Our Partners. Philip ahead. go ROTH question next

Philip Shen

might is to was annual give kind questions. are is the if business? Hey run in quarter, guys. of a be you Thanks You the $XX a an view million fair business could year-on-year a in growth wondering rate that year? of I million. so, per -- year you how fiscal this there for I $XX do on on or of it And semiconductor last able think potential a number million kind some grow it segment $XX for much if was this decent about basis,

annual much how this basis So an it could grow year? on

Fokko Pentinga

too semiconductor has very XX lately. well, the but general of will market rest year, going less longer But last doing the on much at strong if becomes been and so outlook for plus it dependent are and there, clear bit electronics been doesn't Also on and the this But for little well next whole has well, economic for that longer. we has look a we term, this to bit is activities, the bit Phil, although we the the all. say, little continue the been whole bad quarter, the back far a say doing look are reluctant to a world

last it positive So are if over year you But more than has last would quarters XX a say expect. the the of I over been yeah, gone a of we the have indicating, be normally way something it we would several would sort it XX% what wouldn't been months, have unreasonable. it's -- growth has been

how So and is to will difficult that long it a bit a high last, period on that's say.

So the you? giving we it term, clear that. help longer for not are projection for Does

Philip Shen

does. Thanks Yes, it Fokko.

to were month I you thought Phase-III next the coming remarks, saying I perhaps relates could in be it that the prepared As you heard it order, say in or -- the

Robert Hass

an the end, answer was yes. at There Yes.

Philip Shen

the to the so kind Okay. and call. want success that the have said talked Got about it. Phase-I to was the in have I And in influence the success with may Phase-III and just In think seems order results and -- Phase-III on actually the is we fair in they in Phase-I Jeff's it's today's it plans if that few would that call required But want looks like, and not have period question confirm; operate like this purchase. the how prior you Phase-I because expanding or it it a was Phase-I of there, a a I chance they be months, of forth that to the thing but chance next the be a could past, just Phase-II? and operations that it six timing. time be run could won't past launch Is but to the ensure could that year, of there even months for say, so, to the And of that, real a delayed running delayed and -- Phase-III smoothly? ramp-up simply

Fokko Pentinga

I last that The part something is expect. not

so hundred I always sometimes, could But to megawatts, a getting something expecting The the those wait want last be are are and few, be you something, period, longer where to not it's longer to like, effective said not there. just is a a you expected right? cost next forward it is, [ph], be few -- do few and if time, looking that we was it if solar, in than within to reality running month, a We are then you you'd to when lines.

two, line to have modify number efficiency. you to easy full, is of one. go that's this higher the course, aim Number So for to

it's going that all startup higher and sufficiently so, then But also, people of all and big for itself very which on lends a the part your already well to technology trained, a chain them challenge to this new later So first important your supply get is and efficiencies line, is that. if you for go now.

like this very this quarter that's I have do not to kind perform expect that where long. of long. now or delay do month it So very company, still, two you A looks of sounds always at think, we what and moment. But the every not

Philip Shen

And Phase-I Should other on Okay. going? by cost we if hitting know structure then, the is structure, words, ramp-up efficiency that the quarter, guys you In pretty that Phase-I, August, targets how know we you targets and by laid the should report next the are quarter, cost running that's again when well? next you out? the

Fokko Pentinga

and pretty we getting everything's extremely am customer is the I cooperation and Because good, going about sure really our smooth need the all support are that. from we friend. with

efficient the maybe bit the maybe of going the is be type here, little can announce bit able everything little more, can So than phase, we a well hopefully, time, tell more so next and a on. I talk and very-very customer next and about to

Philip Shen

or to And a think can you if back, are potential one we holding it I might N-Type quiet, question? again and as customer, about get up to relates back this even another address talked flow Okay. a they a PERC offerings, magnitude, do that? business? there, greater sounds caught it seen, holding out meaningful have bit, kind have price tools activity bit maybe can other that's typically of change like ultimately the Competitively, you guys try but little What tools. the activity, kind competitive -- will, our of of you bottlenecks, the what or landscape to relates Jeff the a then, think to half Has to or be and this do is gigawatt gigawatt. you to it but order needed of guys as do What's what little you it still a it beyond maybe

Fokko Pentinga

pricing no secret. big all, local, is especially a there of with issue, first causes Well and

line in more local care to that of what one. number competition will of working And will part. in take take our does, get but bit in outsourcing China that's little a are prices with we time, We that

example, It quick using there. tools. now, ALD batch used be PECVD all go a the goes lot N-line at look If and you to changes apparently PERC there's for to

way, counter to I this will that we I do we good to have time. -- that will in sure that the be specifically So but mention didn't to next will way going, find a able and call, is market am

for will is we What all, have counter PERC, at every one. So In of a not course of the comes make it difference is bit that that something more it along while the -- a to first difficult turnkey day. that moment. also turnkey

We think an I think a us offer too, offering, really sure I We it, efficiencies. are one the Which customers and that do work in lot from add-on of is is couple production to of of the we help now, on who capability where a for it competitive PERC more and that type also to few with do of that of a makes do quarters high technology. the will the poly-passivated the Topcon an and can volume that one, lot mainstream technology, that to of make course, area but that emitter. present higher B-Type

main is, all future, on So the cost development. that's focus lower the what throughput. our with having and all high the But at the in equipment it combines

combination of work and of them. with us are But a done still all three lot technology to be cost is there we local taking So for throughput. to of the of of care our catch-up

that. to that convinced quite able am will I manage be So we

Philip Shen

I right. it team. All on. pass will Okay. and Fokko Thanks

Fokko Pentinga

Thanks Phil.

Operator

question-and-answer this questions, [Operator session. that no our are concludes there Instructions]. Seeing further

Robert Hass

you your This Amtech. and today for for today. our for your call interest time Thank in concludes

Operator

now attending today's conference you Thank presentation. The for has concluded.

now may You disconnect.

Amtech Systems (ASYS) 10 May 182018 Q2 Earnings call transcript