ASYS - Earnings call transcript Q4 2019

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Operator

Good morning and welcome to the Amtech Systems Fourth Quarter and Fiscal Year 2019 Conference Call. All participants will be in listen-only mode. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Lisa Gibbs, Chief Financial Officer. ahead. go Please

Lisa Gibbs

Amtech’s thank Robert fourth and call. joining for Chief J.S. us me Officer; Chief Good Whang, Amtech’s Michael and you Executive fiscal Systems our Whang, are today quarter the Officer; conference Chairman year Amtech and on Executive and morning Operating call for Executive Hass, XXXX With President. results Vice

earnings fourth Amtech release quarter the at of opening financial its the XX, on released XXXX. be trading September will today, That fiscal posted company’s and amtechsystems.com. for Before year ended the results website

plans. market detailed Commission including markets; equity credit XX-Q. our During statements today’s and obligation in political and capital market the factors information no All are date. call, available management forward-looking Form worldwide on assume These our statements. the Form risks including we to will in update changing this of make based of And such filings, forward-looking any technologies risk and and to performance, cause our actual and the such as allocation to those used us statements. a results expectations. our forward-looking the statements trade changes the effect of of Securities effect actual our statements current from customers from Exchange not could results could and demand sanctions; Other for the the materially overall change conditions, products; guarantee important including are volatility economic which conditions, are in acceptance competitors; and in Among future and differ XX-K materially factors differ are by and forward-looking

the discontinued Vice call turn to over will Executive discuss Robert operations. President to I Hass, now

Robert Hass

morning. and Lisa good you Thank

France. a agreement press management have entered certain management in our RXD, announced in key release automation we division As buyout our members of with into

its for we of semi that our is RXD. evaluating best of consideration, disclosed how and employees fit After have that and previously strategy. RXD determined the the shareholders, RXD customers whether power disposition Amtech, would We and careful were into we

fiscal We a of expect recognize approximately $X to loss in disposition million. of QX XXXX RXD on

efforts continue parties We cash the potential our are also Tempress we have to of The require buyers are other project. emerged advisors together which with division in divest Netherlands will which our as infusion from negotiation. focus our and are the in who and deal terms final the stages under solar Amtech considering a

our and hoping shareholders and the to are are Amtech segments. to calendar We a growing profitable for Whang, now right and to confident semiconductor We and our the announce J.S. allowing by mean I Chairman these over SiC Officer. -- our Chief LED conclusion J.S. our turn year-end. investments decision to fast our resources us remain and unprofitable call Executive Executive devote I to divestitures will

Jong Whang

our call for joining thank Robert, you morning. Thank you this

our dispose the As efforts our our our continues business focusing and solar growth strategy present. with business we semiconductor off to and on silicon intense carbide move semi and they forward effort opportunities multiple the resources

are and the semi new SiC Therefore when recovering long-term as turns the customers time growth in prudently begin to to emerging fiscal industry our look leading to our well product market and ensuring our the accelerate and our are intact. expand in marketplace we development drivers of anticipated serve we industry markets offerings around. positioned macroeconomic this at While targeted we prevail, underlying R&D our fully XXXX ongoing year issues both growth invest

the revenue grow growth developed business as calls plan are focused semi for profitable strategic have We a on plan recovers. industry our that our to and

growth excellent that the growth acquisition offers will that industry and solar are believe years there to the be With us to we also soon the behind and also in serve opportunity our the an coming be we environment -- confident loss business profitabilities. we will we will believe contribute

divesting task to COO committed for value important the Michael growth operations. will business for is a turn us. have years. I and profitable shareholders behind to Mike. Whang, our continuing provide very now to the Therefore us getting can future solar over believe discuss call coming increased we are exciting We the an that our and we it our

Michael Whang

Thank good and you morning. J.S.

near-term ongoing mix be has Although in PR a impacted mix shipments our the silicon these by adversely we demand issues positives carbide we BTU meaningful market the industry upturn Even still continued tariff the the within semiconductor from manufacturing the devices. growth will at a environment at uncertain exact especially the environment half fourth of quarter been and quarter XXXX we economic trade the second and see return Hoffman. benefited timing although soft believe favorable with remains and the product revenue machine in expect facing to strong industry. fourth of of The in

facilities and position we and strengthen In potential in to offerings, IT growth systems upgrade the preparing to significant for and our this making to prepare meet and expected are upturn our product long-term opportunity demand. select manufacturing expand our us investments

discussed Currently semi As recovery recovers as with profitably the to and J.S. industry we in plan the SiC industry. second had the opportunities we developed the focus, strategic areas grow half the of in following a have emerging of XXXX.

in part area. are We growth well-positioned significant take this to

their customers growth We to and are our SiC plans working closely with opportunities. understand

our SiC help in next will investing investments investing and generation growth believe our development, industry. in fuel We these in capacity, our people. We product are the

applications. millimeter a the Secondly, for we and have power millimeter XXX successful reactor, semiconductor silicon solution growing proven XXX highly thermal horizontal

We strong and base We key for leading in and XXXX to this have area. have opportunity future customer fiscal a half manufacturer. an second industry a order customer expand a with announced we of in revenue growth our strong the believe foundation another we

will continue opportunity track a innovation further. semi products. BTU investments to has our through contributor and industry semi and as grow that an BTU major for believe Lastly We revenue cycles the to SMT packaging product

opportunity shift solutions where area silicon all generation we multiple Our long-term This to shift positioned. we remains significant in customers growth next very as an carbide outlook for are see applications. that positive exciting an well silicon and opportunities from represents

are And to the outlook now year-over-year. is compelling expected We review to turn and the to Lisa the that confident intensify quarter fiscal fourth advanced demand for I'll power results. is long-term as financial year chips call

Lisa Gibbs

Michael. to $X.X million and increased $X the you net of million by by Compared by revenue compared for to quarter $XX carbide silicon year by XXXX. million. increased approximately million semi carbide Sequentially and of decreased approximately $XX.X revenue fiscal LED preceding quarter in million. approximately XXXX approximately $X.X million fourth Net and in $XX.X fourth quarter LED fiscal revenue the silicon $X.X decreased was Thank million semiconductor the revenue prior revenue

compared $XX.X to sequentially conditions economic total machine primarily due primarily to trade in was increased demand $X.X and due next Sequentially $X.X customer fourth from of Selling, upgrades. XX% XXXX. backlog was compared the prior in of year fiscal in fourth employee preceding dispute. of carbide in the at margins the and notably our million quarter of compared within preceding we the in increase segment fourth semiconductor favorable in XXXX. are expense see LED expenses. was our due continue quarter SG&A XXXX fiscal XX margin XX, primarily to of the to orders to [Indiscernible] to fiscal Sequentially general, in both $X.X in quarter months. increased or related was and shipments. compared backlog $XX.X the June expected to million revenue weaker silicon administrative the mix primarily the At of million total SG&A segment resulting increased year XXXX increased million and XXXX gross the Gross quarter XX% product to XX% In compared quarter The fourth XXXX. our of and September XX, parts ship to timing most prior to due the fiscal million quarter and sales to

were SoLayTec. able tax The was fiscal uncertain benefit offset $X.X full the to foreign compared to in income continuing federal fiscal at lower we tax basis fiscal from tax and operations for due XXXX. provision XXXX in both taxes primarily Looking our to sale an million jurisdictions. of resolution provision primarily The on U.S. our taxes represents received tax discontinued of with We provision of fiscal a the had a the due $X.X for year million income XXXX XXXX position. in for

operations or a loss for our to for was of the a XXXX million the tax fourth million included goodwill fiscal share quarter is $X.X and per per XXXX Income in income or $X.X This which $X.XX impairment quarter of $X from fiscal of million compared quarter. fourth share. of $X.XX the $X.X of net million Automation or continuing of charge $X.XX per segment share preceding in

XXXX. were to cash unrestricted at $XX Turning operations $XX.X at compared September million XX, equivalents XXXX million and to September at cash our cash, continuing XX,

held XX% continuing XX, States, was September our at cash equivalents of As XXXX cash outside the approximately unrestricted in mostly of our United and China. operations

discuss profitable Michael in plan key priority organically J.S. our allocation as is product to and I invest continue to our IT would capital Systems. like development, to people, discussed drive growth. briefly and facilities, to One

the research $X participate with customers as with in to capital product be will per required the our to next our year. to investments and our to in in and new We cycle. outlook the be anticipate $X development pleased achieve of we are the buying well-positioned continue targets for and million We development revenue to growth range million expenditures profitable portfolio very product with collaborate objective the

the priority allocation pursue plan product carbides. at our upon enhance capital semi to price technologies, strategic and to capabilities our in is build strengths key silicon in to the opportunities, areas continue Another and right M&A acquisitions in selective to our growth high portfolio,

profitable done the provide We environment integrations execute of in and we long-term. identify acquisition have the in past. and the growth and the the priorities returning accretive shareholders growth capital to above have record to both silicon strong and in as Once and semi the for transactions track been we to evaluate will short-term have skill set met targets the to carbide

quarter industry and Now ending down cycle. further to the softness outlook, company the tensions equipment December trade semiconductor continued turning expects to for XX, XXXX due our the

gross can potential mid $XX given ongoing expected $XX excludes operating is The assumes cyclical the upper semiconductor to impacted revenue equipment break in to XX% demand dispute conditions the margin in We expect by business continued industry million due be soft to demand. to weakness the range be even the margin changes be inherently any range to actions. trade in the impact market positive. million in and outlook the with of Again restructuring and of to slightly and

United can results provided Additionally in by The manufacturers. positively this denominated are the operating semiconductor States or of the RMBs. between on rate United value significantly relation outlook dollar release in A States differ results be system the could results exchange orders, in Amtech's the the financial actual dollar assumed of in an is negatively portion of RMB expectations. based Changes of and and from the cause to the shipments, to press results impacted RMB. timing

call for Now let's operator the over Operator. questions. the turn to

Operator

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

Jeff Osborne

questions good of everyone. end. Hey, on morning Couple my

the you what more of rate On think the detail on as us historic that can division of RXD away? revenue sort just we run side about possibly any give going that was

Robert Hass

basis since On an since in that, on been $X.X been in RXD industry has solar it clear the solar the annual $X to the pretty million annual million. revenue downturn rate the downturn has was

Jeff Osborne

Robert. in you million I then right think X.X And heard if Got helpful that? it, took you I on comments impairment Lisa's that's

Lisa Gibbs

at last the end was fiscal year, year. of that Yes, last

Jeff Osborne

assume sale made Robert buyer cash think by Is reference work? or you're to bracket how that Okay, much to reference of Tempress cash mechanics to also way and year-end. willing that to infusion the a What to was was to and I there confused buyer. the then any there think the I me the how lend I would

Robert Hass

that is on for in how held the No, continuing you script the to show operations. financial the discontinued in that sale. focus should the operations other that And cash cash in help. I statements Does won't The assets in the than on. and we say that's in what comment is much

Jeff Osborne

is of speakers on way remarks that versus that's Got different R&D in in Lisa Yes, shared terms OpEx to plan helpful. that there million the and How $X but for $X strategic CapEx? you million how much to about is think it. the about CapEx in of a

Lisa Gibbs

what is I range towards two expect the of would weighted Sure, gave. it thirds heavily in probably R&D I more

Jeff Osborne

the was it. Got RXD well I a for for can that that OpEx us the what assume or give of as meaningful And in France? you on was Robert sense headcount unit

Robert Hass

the contribution and to not loss been So profit has significant.

Jeff Osborne

it. got Yes,

Robert Hass

of As it far I is as the number around employees think XX.

Jeff Osborne

about moving year? pieces can one, you lot of helpful. what this Okay, that's there fiscal talk Lisa just Maybe we should is on the for tax, a last expect

Lisa Gibbs

through through We understandable. did to divestiture a kind we Sure, achieve SoLayTec. RXD with like benefit of what do of Tempress, and the tax expect

think the after this to And through to we normal we so year divestitures tax benefit that that then these rate resume will range. I fiscal and realize a would expect

Jeff Osborne

I Great, that's had. you. Thank all

Lisa Gibbs

Thank you Jeff.

Operator

question-and-answer [Operator Instructions]. remarks. conference to the will conclude Seeing for session. to any this no I Lisa turn would our further questions Gibbs closing back like over

Lisa Gibbs

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

Operator

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

disconnect. You may now

Amtech Systems (ASYS) 21 Nov 192019 Q4 Earnings call transcript