Amtech Systems shares sell off after missing Q4 estimates
Amtech Systems, Inc. (Nasdaq: ASYS) are swooning this afternoon after the manufacturer of solar cells, semiconductors and silicon wafers today reported fourth-quarter results below the sole analyst on Wall Street’s estimates and issued a tempered outlook for its first fiscal quarter.
For the three months ended Sept. 30, the Tempe, Ariz.- based firm recorded net income of $1.1 million, or $0.17 per share, below the sole analyst’s estimate of $0.15 per share as polled by Thomson. The current quarter’s bottom line compares with $0.5 million, or $0.14 per share, for the fourth quarter of fiscal 2006.
Net income was positively impacted in the quarter by the recording of a net tax benefit of approximately $0.3 million from a reduction in the valuation allowance on deferred tax assets of approximately $0.6 million, compared with zero tax expense in the same period a year ago.
Revenue was $13.1 million for the quarter, below the $13.3 million an analyst polled by Thomson was forecasting. The current quarter’s revenue represented a 16% increase over the $11.3 million booked in the same quarter last year. The company attributed the increase in revenues mainly to higher solar revenues.
At Sept. 30, 2007, the company’s order backlog was $23.2 million, a 70% increase over the Sept. 30, 2006 backlog. The backlog comprised approximately $17.4 million in solar orders, a whopping 128% increase over the $7.6 million of solar backlog at Sept. 30, 2006.
The $17.4 million in solar backlog does not include an additional $15 million solar order received shortly after the fiscal year end.
Gross margin in the fourth quarter was 31%, up from 24% in the fourth quarter of fiscal 2006, and was positively impacted by a favorable product mix and the diffusion of fixed and semi-fixed costs over higher revenue, partially offset by the increase in deferred profit.
Looking ahead, for the first quarter fiscal 2008 Amtech said it expects revenues to be down sequentially due to the timing of shipment and acceptance of several systems moving into the second quarter of fiscal 2008. The company is forecasting revenues to be in the range of $11 to $12 million, compared with $9.45 million earned for the first quarter of 2007. An analyst polled by Thomson is projecting revenues of $13.84 million for the first quarter.
The silicon wafer maker said it expects operating results for the first quarter of fiscal 2008 to be break-even to negative on account of lower revenues, an increase in higher operating costs and an increase in production personnel.
For the full fiscal year of 2008, the company said it anticipates revenue to be in the range of $65 to $75 million, representing growth of approximately 40% to 60% over fiscal 2007. Solar revenues are expected to be the primary growth driver while semiconductor revenues, relative to last fiscal year and consistent with overall industry trends, are expected to be flat or slightly down, according to the company.
Overall for fiscal 2008, the Amtech said it expects gross margin to be in the range of 28% to 30%. The company stipulated that gross margins are expected to remain at annual historical rates through the first half of fiscal 2008, with an improvement in the second half of fiscal 2008.
Shares of Amtech Systems (ASYS) skidded 28.21%, or $4.29, to $10.92 at 1:11 p.m. ET. Shares of Amtech Systems have been trading in the range of $6.65 to $17.74 for the past 52 weeks.
