SEC Form 10-Q filed by Amtech Systems Inc.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended: March 31, 2024

OR

 

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________ to ________________

Commission File Number: 0-11412

 

 

AMTECH SYSTEMS, INC.

 

(Exact name of registrant as specified in its charter)

 

Arizona		86-0411215
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)
58 South River Drive Suite 370, Tempe, Arizona		85288
(Address of principal executive offices)		(Zip Code)

 

Registrant’s telephone number, including area code: 480-967-5146

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.01 per share		ASYS		NASDAQ Global Select Market

Indicate by a check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:

 

Large Accelerated Filer	☐			Accelerated Filer	☒
Non-Accelerated Filer	☐			Smaller Reporting Company	☒
				Emerging Growth Company	☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

At May 3, 2024, there were outstanding 14,208,795 shares of Common Stock.

---

AMTECH SYSTEMS, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

 

	Page
Cautionary Statement Regarding Forward-Looking Statements	3
PART I. FINANCIAL INFORMATION	4
Item 1. Condensed Consolidated Financial Statements	4
Condensed Consolidated Balance Sheets March 31, 2024 (Unaudited) and September 30, 2023	4
Condensed Consolidated Statements of Operations (Unaudited) Three and Six Months Ended March 31, 2024 and 2023	5
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) Three and Six Months Ended March 31, 2024 and 2023	6
Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) Three and Six Months Ended March 31, 2024 and 2023	7
Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended March 31, 2024 and 2023	8
Notes to Condensed Consolidated Financial Statements (Unaudited)	9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Overview	26
Results of Operations	27
Liquidity and Capital Resources	30
Off-Balance Sheet Arrangements	33
Contractual Obligations	33
Critical Accounting Estimates	33
Impact of Recently Issued Accounting Pronouncements	34
Item 3. Quantitative and Qualitative Disclosures About Market Risk	34
Item 4. Controls and Procedures	34
PART II. OTHER INFORMATION	36
Item 1. Legal Proceedings	36
Item 1A. Risk Factors	36
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 3. Defaults Upon Senior Securities	36
Item 4. Mine Safety Disclosures	36
Item 5. Other Information	36
Item 6. Exhibits	37
SIGNATURES	38

 

---

Cautionary Note Regarding Forward-Looking Statements

 

Our discussion and analysis in this Quarterly Report on Form 10-Q ("Quarterly Report"), our Annual Report on Form 10-K for the fiscal year ended September 30, 2023 (the “2023 Form 10-K”), our other reports that we file with the Securities and Exchange Commission (“SEC”), our press releases and in public statements of our officers and corporate spokespersons contain “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Private Securities Litigation Reform Act of 1995. Forward-looking statements give our or our officers’ current expectations or forecasts of future events. You can also identify forward-looking statements by discussions of strategy, plans or intentions of management. We have tried, wherever possible, to identify such statements by using words such as “may,” “plan,” “anticipate,” “seek,” “will,” “expect,” “intend,” “estimate,” “believe,” “continue,” “predict,” “potential,” “project,” “should,” “would,” “could,” “likely,” “future,” “target,” “forecast,” “goal,” “observe,” and “strategy” or the negative thereof or variations thereon or similar terminology relating to the uncertainty of future events or outcomes. Any expectations based on these forward-looking statements are subject to risks and uncertainties and other important factors. Some factors that could cause actual results to differ materially from those anticipated include, among others, future economic conditions, including changes in the markets in which we operate; changes in demand for our services and products; our revenue and operating performance; difficulties in successfully executing our growth initiatives; difficulties in executing on our strategic initiatives with respect to our material and substrate business segment; the effects of competition in the markets in which we operate, including the adverse impact of competitive product announcements or new entrants into our markets and transfers of resources by competitors into our markets; the cyclical nature of the semiconductor industry; pricing and gross profit pressures; control of costs and expenses; risks associated with new technologies and the impact on our business; legislative, regulatory, and competitive developments in markets in which we operate; possible future claims, litigation or enforcement actions and the results of any such claim, litigation proceeding, or enforcement action; business interruptions, and any future pandemic on our business operations, financial results and financial position; risks of future cybersecurity incidents; adverse developments affecting financial institutions, including bank failures; failure to comply with financial and other covenants and other requirements under our credit agreement and forbearance agreement with UMB Bank, as well as the ability to extend, if necessary the forbearance period or obtain a waiver of the applicable defaults; and other circumstances and risks identified in this Quarterly Report or referenced from time to time in our filings with the SEC. The occurrence of the events described, and the achievement of expected results, depend on many events, some or all of which are not predictable or within our control. These and many other factors could affect Amtech’s future operating results and financial condition and could cause actual results to differ materially from expectations based on forward-looking statements made in this document or elsewhere by Amtech or on its behalf.

 

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based on our or our officers’ current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to certain risks and uncertainties. In light of these risks and uncertainties, there can be no assurance that the forward-looking information contained in this Annual Report on Form 10-K will in fact transpire or prove to be accurate. You should not place undue reliance on these forward-looking statements, which speak only as of the date they were made.

 

The Company undertakes no obligation to update or publicly revise any forward-looking statement whether as a result of new information, future developments or otherwise after the date of this Annual Report on Form 10-K. All subsequent written or oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this cautionary statement. You are advised, however, to consult any further disclosures we make on related subjects in our subsequently filed Form 10-Q and Form 8-K reports and our other filings with the SEC. Also note that we provide a cautionary discussion of risks, uncertainties and possibly inaccurate assumptions relevant to our business under “Item 1A. Risk Factors” of this Annual Report on Form 10-K. We note these factors for investors as permitted by the Private Securities Litigation Reform Act of 1995. You should understand it is not possible to predict or identify all such factors.

 

Unless the context indicates otherwise, the terms “Amtech,” the “Company,” “we,” “us” and “our” refer to Amtech Systems, Inc., an Arizona corporation, together with its subsidiaries.

---

PART I. FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

AMTECH SYSTEMS, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands, except share data)

 

		March 31, 2024				September 30, 2023
Assets		(Unaudited)
Current Assets
Cash and cash equivalents		$	13,000			$	13,133
Accounts receivable (less allowance for credit losses of $115 and $146 at    March 31, 2024 and September 30, 2023, respectively)			21,230				26,474
Inventories			31,308				34,845
Income taxes receivable			457				632
Other current assets			4,304				6,105
Total current assets			70,299				81,189
Property, Plant and Equipment - Net			9,476				9,695
Right-of-Use Assets - Net			9,784				11,217
Intangible Assets - Net			4,352				6,114
Goodwill			21,261				27,631
Deferred Income Taxes - Net			123				101
Other Assets			1,179				1,074
Total Assets		$	116,474			$	137,021
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable		$	6,741			$	10,815
Accrued compensation and related taxes			2,085				3,481
Accrued warranty expense			763				965
Other accrued liabilities			1,133				1,551
Current maturities of finance lease liabilities and long-term debt			4,243				2,265
Current portion of long-term operating lease liabilities			1,934				2,623
Contract liabilities			9,015				8,018
Total current liabilities			25,914				29,718
Finance Lease Liabilities and Long-Term Debt			65				8,422
Long-Term Operating Lease Liabilities			8,195				8,894
Income Taxes Payable			1,357				1,575
Other Long-Term Liabilities			52				47
Total Liabilities			35,583				48,656
Commitments and Contingencies (Note 10)
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: 14,208,795 and 14,185,977 at March 31, 2024    and September 30, 2023, respectively			142				142
Additional paid-in capital			127,658				126,963
Accumulated other comprehensive loss			(1,476	)			(1,695	)
Retained deficit			(45,433	)			(37,045	)
Total Shareholders’ Equity			80,891				88,365
Total Liabilities and Shareholders’ Equity		$	116,474			$	137,021

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

---

AMTECH SYSTEMS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(Unaudited)

(in thousands, except per share data)

 

		Three Months Ended March 31,								Six Months Ended March 31,
		2024				2023				2024				2023
Revenues, net		$	25,433			$	33,310			$	50,353			$	54,868
Cost of sales			16,982				19,840				32,834				33,095
Intangible asset impairment			—				—				849				—
Gross profit			8,451				13,470				16,670				21,773
Selling, general and administrative			8,252				11,434				16,819				20,624
Research, development and engineering			921				1,517				2,509				2,910
Gain on sale of fixed assets			(2,197	)			—				(2,197	)			—
Goodwill impairment			—				—				6,370				—
Intangible asset impairment			—				—				430				—
Severance expense			112				—				310				400
Operating income (loss)			1,363				519				(7,571	)			(2,161	)
Interest income			14				49				33				339
Interest expense			(193	)			(155	)			(391	)			(157	)
Foreign currency loss			—				(168	)			(187	)			(515	)
Other			9				13				9				4
Income (loss) before income tax provision			1,193				258				(8,107	)			(2,490	)
Income tax provision (benefit)			223				(2,946	)			281				(2,950	)
Net income (loss)		$	970			$	3,204			$	(8,388	)		$	460
Income (Loss) Per Share:
Net income (loss) per basic share		$	0.07			$	0.23			$	(0.59	)		$	0.03
Net income (loss) per diluted share		$	0.07			$	0.23			$	(0.59	)		$	0.03
Weighted average shares outstanding:
Basic			14,197				14,028				14,193				14,018
Diluted			14,209				14,157				14,193				14,142

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

---

AMTECH SYSTEMS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

(in thousands)

 

		Three Months Ended March 31,								Six Months Ended March 31,
		2024				2023				2024				2023
Net income (loss)		$	970			$	3,204			$	(8,388	)		$	460
Foreign currency translation adjustment			(50	)			384				219				800
Comprehensive income (loss)		$	920			$	3,588			$	(8,169	)		$	1,260

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

---

AMTECH SYSTEMS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Shareholders’ Equity

(Unaudited)

(in thousands)

 

		Common Stock												Accumulated Other								Total
		Shares				Par Value				Additional Paid- In Capital				Comprehensive (Loss) Income				Retained  Deficit				Shareholders' Equity
Balance at September 30, 2022			13,994			$	140			$	124,458			$	(1,767	)		$	(24,463	)		$	98,368
Net loss			—				—				—				—				(2,744	)			(2,744	)
Translation adjustment			—				—				—				416				—				416
Stock compensation expense			—				—				164				—				—				164
Stock options exercised			9				—				34				—				—				34
Balance at December 31, 2022			14,003				140				124,656				(1,351	)			(27,207	)			96,238
Net income			—				—				—				—				3,204				3,204
Translation adjustment			—				—				—				384				—				384
Stock compensation expense			—				—				174				—				—				174
Stock options exercised			36				—				297				—				—				297
Balance at March 31, 2023			14,039			$	140			$	125,127			$	(967	)		$	(24,003	)		$	100,297
Balance at September 30, 2023			14,186			$	142			$	126,963			$	(1,695	)		$	(37,045	)		$	88,365
Net loss			—				—				—				—				(9,358	)			(9,358	)
Translation adjustment			—				—				—				269				—				269
Stock compensation expense			—				—				317				—				—				317
Stock options exercised			5				—				28				—				—				28
Balance at December 31, 2023			14,191				142				127,308				(1,426	)			(46,403	)			79,621
Net income			—				—				—				—				970				970
Translation adjustment			—				—				—				(50	)			—				(50	)
Stock compensation expense			—				—				350				—				—				350
Stock options exercised			18				—				—				—				—				—
Balance at March 31, 2024			14,209			$	142			$	127,658			$	(1,476	)		$	(45,433	)		$	80,891

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

---

AMTECH SYSTEMS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

 

		Six Months Ended March 31,
		2024				2023
Operating Activities
Net (loss) income		$	(8,388	)		$	460
Adjustments to reconcile net (loss) income to net cash provided by (used in)    operating activities:
Depreciation and amortization			1,572				1,887
Write-down of inventory			940				517
Goodwill impairment			6,370				—
Intangible asset impairment			1,279				—
Deferred income taxes			(22	)			(3,172	)
Non-cash share-based compensation expense			667				338
Gain on sale of property, plant and equipment			(2,197	)			—
Provision for allowance for credit losses			—				156
Changes in operating assets and liabilities:
Accounts receivable			5,244				1,113
Inventories			2,617				(4,631	)
Other assets			3,163				2,215
Accounts payable			(3,462	)			(1,497	)
Accrued income taxes			(42	)			(1,192	)
Accrued and other liabilities			(3,432	)			(2,289	)
Contract liabilities			998				768
Net cash provided by (used in) operating activities			5,307				(5,327	)
Investing Activities
Purchases of property, plant and equipment			(1,976	)			(976	)
Proceeds from the sale of property, plant and equipment			2,700				—
Acquisition, net of cash and cash equivalents acquired			—				(35,498	)
Net provided by provided by (used in) investing activities			724				(36,474	)
Financing Activities
Proceeds from the exercise of stock options			28				331
Payments on long-term debt			(6,413	)			(412	)
Borrowings on long-term debt			—				12,000
Net cash (used in) provided by financing activities			(6,385	)			11,919
Effect of Exchange Rate Changes on Cash and Cash Equivalents			221				741
Net Decrease in Cash and Cash Equivalents			(133	)			(29,141	)
Cash and Cash Equivalents, Beginning of Period			13,133				46,874
Cash and Cash Equivalents, End of Period		$	13,000			$	17,733
Supplemental Cash Flow Information:
Income tax payments, net		$	323			$	1,529
Interest paid		$	391			$	94

The accompanying notes are an integral part of these condensed consolidated financial statements.

---

AMTECH SYSTEMS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

THREE AND SIX MONTHS ENDED MARCH 31, 2024 AND 2023

(UNAUDITED)

 

 

 

 

 

 

 

---

 

 

 

 

 

 

 

---

 

---

 

---

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our “Condensed Consolidated Financial Statements” in Item 1 of this Quarterly Report on Form 10-Q (“Quarterly Report”) and our consolidated financial statements and related notes included in “Item 8. Financial Statements and Supplementary Data” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023 (the “2023 Form 10-K”).

 

Overview

 

We are a leading, global manufacturer of capital equipment, including thermal processing and wafer polishing and related consumables used in fabricating semiconductor devices, such as silicon carbide ("SiC") and silicon power devices, analog and discrete devices, electronic assemblies, and light-emitting diodes ("LEDs"). We sell these products to semiconductor device and module manufacturers worldwide, particularly in Asia, North America and Europe.

 

We operate in two reportable segments, based primarily on the industries they serve: (i) Semiconductor and (ii) Material and Substrate. In our Semiconductor segment, we supply thermal processing equipment, including solder reflow ovens, horizontal diffusion furnaces, and custom high-temp belt furnaces for use by semiconductor, electronics and electro/mechanical assembly manufacturers. Our semiconductor customers are primarily manufacturers of integrated circuits and optoelectronic sensors and discrete ("O-S-D") components used in analog, power and radio frequency ("RF"). In our Material and Substrate segment, we produce wafer cleaning equipment as well as substrate consumables and chemicals for lapping (fine abrading) and polishing of materials, such as silicon wafers for semiconductor products, sapphire wafers for LED applications, and compound substrates, like SiC wafers, for power device applications.

 

The semiconductor industry is cyclical, but not seasonal, and historically has experienced fluctuations. Our revenue is impacted by these broad industry trends.

 

Strategy

 

We continue to focus on our plans to profitably grow our business and have developed a strategic growth plan and a capital allocation plan that we believe will support our growth objectives. Our Power Semiconductor strategic growth plan leverages our experience, products and capabilities in pursuit of growth, profitability and sustainability. Our core focus areas are:

 

 

We anticipate future investments will be required to meet the expected demand from our growing served markets to achieve our revenue growth targets, including investments in research and development as well as capital expenditures, which also includes further investments in talent and management information systems. In June 2022, we completed the sale of the real property where our manufacturing facility in Massachusetts is located. In connection with this sale, we entered into a two-year leaseback of the facility. This sale-leaseback transaction resulted in a net cash inflow of

---

approximately $14.9 million, after repayment of the existing mortgage and settlement of related sale expenses. In September 2023, we signed a lease for a new location more in line with the needs of our Semiconductor product lines. The new location has less square footage as we expand our use of contract manufacturers. We expect to complete the move to this new facility in the third quarter of fiscal 2024. In March 2024, we completed the sale of our corporate headquarters real property in Arizona. The sale resulted in a net cash inflow of approximately $2.5 million, after settlement of related sale expenses. Following the closing of this transaction, we entered into a lease agreement for a new office for our corporate headquarters, which is expected to commence during the third quarter of fiscal year 2024. In addition, we are evaluating business continuity and resiliency within our operations, our management information systems, and our needs to allow for greater efficiencies and to ensure our infrastructure can support our future growth plans. As a capital equipment manufacturer, we will continue to invest in our business to drive future growth.

 

Results of Operations

 

The following table sets forth certain operational data as a percentage of net revenue for the periods indicated:

 

		Three Months Ended March 31,								Six Months Ended March 31,
		2024				2023				2024				2023
Revenues, net			100	%			100	%			100	%			100	%
Cost of sales			67	%			60	%			65	%			60	%
Intangible asset impairment			—	%			—	%			2	%			—	%
Gross margin			33	%			40	%			33	%			40	%
Selling, general and administrative			32	%			34	%			33	%			38	%
Research, development and engineering			4	%			4	%			5	%			5	%
Gain on sale of fixed assets			(9	)%			—	%			(4	)%			—	%
Goodwill impairment			—	%			—	%			13	%			—	%
Intangible asset impairment			—	%			—	%			1	%			—	%
Severance expense			—	%			—	%			—	%			1	%
Operating income (loss)			6	%			2	%			(15	)%			(4	)%
Interest income			—	%			—	%			—	%			—	%
Interest expense			(1	)%			—	%			(1	)%			—	%
Foreign currency loss			—	%			(1	)%			—	%			(1	)%
Other			—	%			—	%			—	%			—	%
Income (loss) before income taxes			5	%			1	%			(16	)%			(5	)%
Income tax provision (benefit)			1	%			(9	)%			1	%			(6	)%
Net income (loss)			4	%			10	%			(17	)%			1	%

 

Net Revenue

 

Net revenue consists of revenue recognized upon shipment or delivery of equipment. Spare parts sales are recognized upon shipment and service revenue is recognized upon completion of the service activity, which is generally ratable over the term of the service contract. Since the majority of our revenue is generated from large system sales, revenue, gross profit and operating income can be significantly impacted by the timing of system shipments.

 

Our net revenue by reportable segment was as follows, dollars in thousands:

 

		Three Months Ended March 31,																Six Months Ended March 31,
Segment		2024				2023				Change				% Change				2024				2023				Change				% Change
Semiconductor			17,441			$	22,047			$	(4,606	)			(21	)%			34,968			$	38,934			$	(3,966	)			(10	)%
Material and Substrate			7,992				11,263				(3,271	)			(29	)%			15,385				15,934				(549	)			(3	)%
Total net revenue		$	25,433			$	33,310			$	(7,877	)			(24	)%		$	50,353			$	54,868			$	(4,515	)			(8	)%

 

Total net revenue for the three months ended March 31, 2024 and 2023 was $25.4 million and $33.3 million, respectively, a decrease of approximately $7.9 million or 24%. Our Semiconductor results for the second quarter of fiscal 2024 reflect decreases in shipments of our belt furnaces, surface-mount technology (“SMT”) and packaging equipment. We continue to experience softness in shipments of our advanced packaging and SMT equipment,

---

primarily related to a slowdown in global demand in the consumer markets. Material and Substrate revenue decreased due to a lower sales of our wafer cleaning equipment and lower demand for spare parts.

 

Total net revenue for the six months ended March 31, 2024 and 2023 was $50.4 million and $54.9 million, respectively, a decrease of approximately $4.5 million or 8%. Revenue from the Semiconductor segment decreased $4.0 million compared to the prior year period. This change is primarily attributable to fewer shipments of our horizontal diffusion furnaces, SMT and packaging equipment partially offset by an increase in shipments of our belt furnaces. Revenue from our Material and Substrate segment decreased $0.5 million due to decreased shipments of consumables.

 

Orders and Backlog

 

New orders booked by reportable segment were as follows, dollars in thousands:

 

		Three Months Ended March 31,																Six Months Ended March 31,
Segment		2024				2023				Change				% Change				2024				2023				Change				% Change
Semiconductor		$	12,061			$	24,606			$	(12,545	)			(51	)%		$	29,189			$	45,690			$	(16,501	)			(36	)%
Material and Substrate			7,710				9,660				(1,950	)			(20	)%			13,687				13,805				(118	)			(1	)%
Total new orders		$	19,771			$	34,266			$	(14,495	)			(42	)%		$	42,876			$	59,495			$	(16,619	)			(28	)%

 

Our backlog by reportable segment was as follows, dollars in thousands:

 

		March 31,
Segment		2024				2023				Change				% Change
Semiconductor		$	39,455			$	54,767			$	(15,312	)			(28	)%
Material and Substrate			4,861				11,071				(6,210	)			(56	)%
Total backlog		$	44,316			$	65,838			$	(21,522	)			(33	)%

 

 

As of March 31, 2024, one of our Semiconductor segment customers individually accounted for 29% of our backlog. Additionally, one customer of both our Semiconductor and Material and Substrate segments accounted for 23% of our backlog. No other customer accounted for more than 10% of our backlog as of March 31, 2024. The orders included in our backlog are generally credit approved customer purchase orders believed to be firm and are generally expected to ship within the next twelve months. Our backlog at any particular point in time is not necessarily representative of actual sales for succeeding periods, nor is backlog any assurance that we will realize profit from completing these orders.

 

Gross Profit and Gross Margin

 

Gross profit is the difference between net revenue and cost of goods sold. Cost of goods sold consists of purchased material, labor and overhead to manufacture equipment and spare parts and the cost of service and support to customers for installation, warranty and paid service calls. Gross margin is gross profit as a percent of net revenue. Our gross profit and gross margin by business segment were as follows, dollars in thousands:

 

		Three Months Ended March 31,																				Six Months Ended March 31,
Segment		2024				Gross Margin				2023				Gross Margin				Change				2024				Gross Margin				2023				Gross Margin				Change
Semiconductor		$	5,040				29	%		$	8,931				41	%		$	(3,891	)		$	11,199				32	%		$	15,103				39	%		$	(3,904	)
Material and Substrate			3,411				43	%			4,539				40	%			(1,128	)			5,471				36	%			6,670				42	%			(1,199	)
Total gross profit		$	8,451				33	%		$	13,470				40	%		$	(5,019	)		$	16,670				33	%		$	21,773				40	%		$	(5,103	)

 

Our gross margins can be affected by capacity utilization, material costs, and the type and volume of machines and consumables sold each quarter. Gross profit for the three months ended March 31, 2024 and 2023 was $8.5 million (33% of net revenue) and $13.5 million (40% of net revenue), respectively, a decrease of $5.0 million. Gross margin on products from our Semiconductor segment decreased due to changes in our product mix, higher material costs, and lower utilization at our Shanghai facility. Gross margin on products from our Material and Substrate segment increased

---

compared to the three months ended March 31, 2023, primarily due to a more favorable product mix, with increased consumable sales partially offset by lower equipment sales. We are experiencing increased material costs across all our segments. In response to such increased costs, we continually review our pricing plans and supplier agreements, with the objective of passing these increased costs to our customers where possible; however, we continue to experience pricing pressure from our customers. Additionally, there is the potential that our backlog could be negatively affected due to rising material costs. We are also exploring partnerships with contract manufacturers, who can leverage their buying power on a larger scale. In the first quarter of fiscal 2024, we began making targeted labor reductions as a result of the shift to contract manufacturing and the continuing slowdown in the broader semiconductor industry.

 

Gross profit for the six months ended March 31, 2024 and 2023 was $16.7 million (33% of net revenue) and $21.8 million (40% of net revenue), respectively, a decrease of $5.1 million. Gross margin on products from our Semiconductor segment decreased compared to the six months ended March 31, 2023 primarily due to changes in our product mix and increased material costs. Gross margin on products from our Material and Substrate segment decreased compared to the six months ended March 31, 2023 primarily due to an impairment charge of $0.8 million for intangible assets.

 

Selling, General and Administrative

 

Selling, general and administrative (“SG&A”) expenses consists of the cost of employees, consultants and contractors, facility costs, sales commissions, shipping costs, promotional marketing expenses, legal and accounting expenses and bad debt expense.

 

SG&A expenses for the three months ended March 31, 2024 and 2023 were $8.3 million and $11.4 million, respectively. SG&A decreased compared to the prior year quarter due primarily to decreased shipping expense on lower sales and decreased labor and employee-related expenses as a result of staff reductions across all of our divisions. Additionally, the prior year period included $1.5 million of transaction expenses related to the acquisition of Entrepix.

SG&A expenses for the six months ended March 31, 2024 and 2023 were $16.8 million and $20.6 million, respectively. SG&A decreased compared to the prior year period primarily due to decreased shipping expense on lower sales, decreased labor and employee-related expenses as a result of staff reductions across all of our divisions, and lower consulting fees. Additionally, the six months ended March 31, 2023 included $3.0 million of transaction expenses related to the acquisition of Entrepix.

 

Research, Development and Engineering

 

Research, development and engineering (“RD&E”) expenses consist of the cost of employees, consultants and contractors who design, engineer and develop new products and processes as well as materials and supplies used in producing prototypes. RD&E expenses may vary from period to period depending on the engineering projects in process. Expenses related to engineers working on strategic projects or sustaining engineering projects are recorded in RD&E. However, from time to time we add functionality to our products or develop new products during engineering and manufacturing to fulfill specifications in a customer’s order, in which case the cost of development, along with other costs of the order, are charged to cost of goods sold. Occasionally, we receive reimbursements through governmental research and development grants which are netted against these expenses when certain conditions have been met.

 

RD&E expense, net of grants earned, for the three months ended March 31, 2024 and 2023 were $0.9 million and $1.5 million, respectively, and $2.5 million and $2.9 million in the six months ended March 31, 2024 and 2023, respectively. The decrease in RD&E is due to the timing of purchases related to specific strategic-development projects at our Semiconductor segment. Grants earned are immaterial in all periods presented.

 

Goodwill Impairment

 

During the six months ended March 31, 2024, we recognized impairment of our goodwill of $6.4 million at our Material and Substrate segment as a result of a triggering event identified at the end of the first quarter.

---

 

Intangible Asset Impairment

 

During the six months ended March 31, 2024, we recognized impairment of our definite lived intangible assets of $1.3 million at our Material and Substrate segment. As stated above, $0.8 million of this impairment was recorded in cost of goods sold, and the remainder was recorded within operating expenses in the Condensed Consolidated Statement of Operations.

 

Severance Expense
 

Severance expense was $0.1 million for the three months ended March 31, 2024. There was no severance expense recorded in the three months ended March 31, 2023. Severance expense was $0.3 million and $0.4 million for the six months ended March 31, 2024 and 2023, respectively. For the three and six months ended March 31, 2024, the amount relates to staff reductions across all our divisions. Severance expense for the six months ended March 31, 2023 relates to the retirement of our founder, Mr. J.S. Whang.

 

Income Taxes

 

Our effective tax rate was (3.5%) and 118.0% for the six months ended March 31, 2024 and 2023, respectively. The effective tax rate for the six months ended March 31, 2024 differs from the U.S. statutory tax rate of 21% primarily due to losses for which no tax benefit can be recognized. The effective tax rate for the six months ended March 31, 2023 differs from the U.S. statutory tax rate of 21% primarily due to the release of a portion of our valuation allowance in connection with a deferred tax liability related to the Entrepix acquisition resulting in recognition of previously recorded deferred tax assets. For the three months ended March 31, 2024 and 2023, we recorded income tax expense of $0.2 million and an income tax benefit of $2.9 million, respectively. For the six months ended March 31, 2024 and 2023, we recorded income tax expense of $0.3 million and income tax benefit of $3.0 million, respectively. The quarterly income tax provision is calculated using an estimated annual effective tax rate, based upon expected annual income, permanent items, statutory rates and planned tax strategies in the various jurisdictions in which we operate. However, losses in certain jurisdictions and discrete items are excluded from the determination of the estimated annual effective tax rate.

 

Our future effective income tax rate depends on various factors, such as the amount of income (loss) in each tax jurisdiction, tax regulations governing each region, non-tax deductible expenses incurred as a percent of pre-tax income and the effectiveness of our tax planning strategies.

 

Liquidity and Capital Resources

 

Cash and Cash Flow

 

The following table sets forth for the periods presented certain consolidated cash flow information, in thousands:

 

		Six Months Ended March 31,
		2024				2023
Net cash provided by (used in) operating activities		$	5,307			$	(5,327	)
Net cash provided by (used in) investing activities			724				(36,474	)
Net cash (used in) provided by financing activities			(6,385	)			11,919
Effect of exchange rate changes on cash and cash equivalents			221				741
Net decrease in cash and cash equivalents			(133	)			(29,141	)
Cash and cash equivalents, beginning of period			13,133				46,874
Cash and cash equivalents, end of period		$	13,000			$	17,733

 

A summary of our cash position as of March 31, 2024 and September 30, 2023, is as follows, in thousands, except working capital ratio:

 

---

		March 31, 2024				September 30, 2023
Cash and cash equivalents		$	13,000			$	13,133
Restricted cash		$	—			$	—
Working capital		$	44,385			$	51,471
Current ratio (current assets to current liabilities)		2.7:1				2.7:1

 

The decrease in cash and cash equivalents from September 30, 2023 of $0.1 million was primarily due to payments on long-term debt and fixed asset purchases, partially offset by increased customer down payments, collections from customers and proceeds from the sale of our real property in Arizona. We maintain a portion of our cash and cash equivalents in Renminbis, a Chinese currency, at our operations in China; therefore, changes in the exchange rates have an impact on our cash balances. The decrease in working capital of $7.1 million (calculated in the table above) was primarily due to the decrease in accounts receivable and inventories.

 

During periods of weakening demand, we typically generate cash from operating activities, which we may decide to reinvest in our business via strategic projects. Conversely, we are more likely to use operating cash flows for working capital requirements during periods of higher growth. Our sources of capital in the past have included the sale of equity securities, which includes common stock sold in private transactions and public offerings, the incurrence of long-term debt and customer deposits. Additionally, in January 2023, we entered into the Loan Agreement with UMB Bank, which included a revolving line of credit with availability up to $8.0 million. On December 5, 2023, we amended this credit facility to, among other things, (i) increase the availability under the revolving line of credit from $8.0 million to $14.0 million (the “Revolver”), (ii) reduce the term loan commitment from $12.0 million to $4.4 million (the “Term Loan”), (iii) extend the maturity date of the Revolver one year to January 17, 2025 and the Term Loan one year to January 17, 2029. See the Forbearance Agreement disclosure under the heading Financing Facilities. Future borrowings, if any, under the Loan Agreement are subject to, among other things, having sufficient unencumbered Eligible Accounts, Eligible Foreign Accounts and Eligible Inventory (as such terms are defined in the Loan Agreement) to meet the borrowing base requirements included in the amended credit facility. There can be no assurance that we can raise such additional capital resources when needed or on satisfactory terms. We believe that our principal sources of liquidity discussed above are sufficient to support operations for at least the next twelve months.

 

Cash Flows from Operating Activities

 

Cash provided by our operating activities was $5.3 million for the six months ended March 31, 2024, compared to $5.3 million used in operating activities for the six months ended March 31, 2023. During the first half of fiscal 2024, our accounts receivable collections exceeded new accounts receivable due to the timing of shipments and collections. Additionally, we received more down payments from customers for future shipments during the quarter. During the six months ended March 31, 2023, we used cash to increase our inventory balances in preparation for shipments scheduled over the next four quarters and to pay the related accounts payable.

 

Cash Flows from Investing Activities

 

Cash provided by investing activities was $0.7 million for the six months ended March 31, 2024, compared to $36.5 million used in investing activities in the six months ended March 31, 2023. The fiscal 2024 amount consists of $2.7 million of proceeds from the sale of our real property in Arizona, partially offset by capital expenditures. The fiscal 2023 amount consists primarily of cash paid for the acquisition of Entrepix. We expect capital expenditures to increase in the third quarter of fiscal 2024 as we relocate our Massachusetts operations to a smaller facility.

 

Cash Flows from Financing Activities

 

For the six months ended March 31, 2024, cash used in financing activities was $6.4 million, primarily comprised of $6.4 million in payments on long-term debt. For the six months ended March 31, 2023, cash provided by financing activities was $11.9 million, comprised of $12.0 million in borrowings on debt facility and $0.3 million of proceeds received from the exercise of stock options partially offset by $0.4 million in payments on long-term debt.

 

Financing Facilities

 

Our debt balance as of March 31, 2024 was $4.3 million, including our finance lease obligations. As previously disclosed in our Form 10-K for the fiscal year ended September 30, 2023, at such date we were not in compliance

---

with the Debt to EBITDA and Fixed Charge Coverage Ratio financial covenants under our Loan Agreement. On December 5, 2023, we entered into a Forbearance & Modification Agreement (the “Forbearance Agreement”) with UMB Bank related to such non-compliance, pursuant to which UMB Bank agreed to forbear from exercising its rights and remedies available to it as a result of such defaults. We will be operating under the terms of such Forbearance Agreement through January 17, 2025 (the “Forbearance Period”).

 

The Forbearance Agreement also amends the Loan Agreement to, among other things, (i) increase the availability under the revolving line of credit from $8.0 million to $14.0 million (the "Revolver"), and (ii) reduce the term loan commitment from $12.0 million to $4.4 million (the “Term Loan”). The Revolver maturity date was extended one year to January 17, 2025 and the Term Loan maturity date was extended one year to January 17, 2029. Both the Revolver and the Term Loan have a floating per annum rate of interest equal to the Prime Rate, adjusted daily, plus the Applicable Margin (as such terms are defined in the Loan Agreement). We are required to pay a non-utilization fee equal to 0.125% of any unused portion of the Revolver in excess of any letter of credit obligations. As of September 30, 2023, no amounts were borrowed against the Revolver and there were no letters of credit outstanding. As of the effective date of the Forbearance Agreement, $10.0 million will be drawn under the Loan Agreement, which includes $4.4 million under the Term Loan and $5.6 million under the Revolver. As of March 31, 2024, $4.2 million was outstanding on the Term Loan, no amounts were borrowed against the Revolver, and there was an outstanding letter of credit in the amount of $0.3 million..

 

Future borrowings, if any, under the Loan Agreement are subject to, among other things, having sufficient unencumbered Eligible Accounts, Eligible Foreign Accounts and Eligible Inventory (as such terms are defined in the Loan Agreement) to meet the borrowing base requirements included in the amended Loan Agreement.

 

Under the Loan Agreement, as amended by the Forbearance Agreement, the Company is required to comply with the following financial covenants:

 

 

If the Lender does not extend the Forbearance Period or otherwise grant a waiver in the future for the covenant defaults described above, an event of default under the Loan Agreement would exist. To the extent the Lender so elects, the outstanding indebtedness under the Loan Agreement could be accelerated following the expiration of any applicable cure periods, causing such debt to be immediately due and payable. In addition, should the Company default in its obligation to comply with any of the covenants described immediately above during the Forbearance Period, an event of default would then exist, and, absent a further forbearance agreement or waiver granted by the Lender, the Lender

---

would have the right to accelerate the indebtedness following the expiration of any applicable cure periods, causing such debt to be immediately due and payable. Both of the foregoing events would also result in the termination of all commitments to extend further credit under the Loan Agreement. There is no guarantee we will have sufficient liquidity to repay our outstanding debt under the Loan Agreement in full if such debt were accelerated. As of March 31, 2024, we had $13.0 million in cash and cash equivalents, and $4.2 million in debt under the Loan Agreement. If we are unable to pay such debt as it comes due, or obtain waivers for such payments, our Lender could foreclose on the assets securing such debt. These events could materially adversely affect our business, results of operations and financial condition. As of March 31, 2024, all outstanding debt under the Loan Agreement was classified as current as a result of the Lender’s ability, in its sole discretion, to call the amounts due thereunder at the end of the Forbearance Period.

 

The Loan Agreement also includes quarterly and annual reporting requirements and other customary affirmative and negative covenants and events of default for facilities of this type. At March 31, 2024, we were in compliance with all such covenants.

 

Off-Balance Sheet Arrangements

 

As of March 31, 2024, we had no off-balance sheet arrangements as defined in Item 303(a)(4) of Regulation S-K promulgated by the SEC that have or are reasonably likely to have a current or future effect on financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

 

Contractual Obligations

 

Unrecorded purchase obligations were $16.3 million as of March 31, 2024, compared to $24.3 million as of September 30, 2023, a decrease of $8.0 million.

 

Other than as described in Note 2, there were no material changes to the contractual obligations included in "Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our 2023 Form 10-K.

 

Critical Accounting Estimates

 

"Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Quarterly Report discusses our condensed consolidated financial statements that have been prepared in accordance with GAAP. The preparation of these condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the condensed consolidated financial statements, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period.

 

On an ongoing basis, we evaluate our estimates and judgments, including those related to revenue recognition, income taxes, inventory valuation, business combination, goodwill, and long-lived asset impairment. We base our estimates and judgments on historical experience, expectations regarding the future and on various other factors that we believe to be reasonable under the circumstances. The results of these estimates and judgments form the basis for making conclusions about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

 

A critical accounting estimate is one that is both important to the presentation of our financial position and results of operations, and requires management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. These uncertainties are discussed in Part I, Item 1A of our 2023 Form 10-K. We believe our critical accounting estimates relate to the more significant judgments and estimates used in the preparation of our consolidated financial statements.

 

We believe the critical accounting estimates discussed in the section entitled “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies” in our 2023 Form 10-K

---

represent the most significant judgments and estimates used in the preparation of our consolidated financial statements. There have been no material changes in our critical accounting estimates during the six months ended March 31, 2024.

 

Impact of Recently Issued Accounting Pronouncements

 

For discussion of the impact of recently issued accounting pronouncements, see “Part I, Item 1. Financial Information” under “Impact of Recently Issued Accounting Pronouncements.”

 

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

As a smaller reporting company, as defined by Rule 12b-2 of the Exchange Act and in Item 10(f)(1) of Regulation S-K, we are electing scaled disclosure reporting obligations and, therefore, are not required to provide the information requested by this Item.

 

Item 4. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures.

We maintain “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are designed to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is (1) recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms and (2) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2024. Based upon the evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were not effective at a reasonable assurance level, due to the material weaknesses previously identified and disclosed in our 2023 Form 10-K and listed below. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting (“ICFR”) such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.

 

Changes in Internal Control over Financial Reporting

Other than as discussed below, there were no other changes to our internal control over financial reporting during the six months ended March 31, 2024, that have materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.

 

We closed on the acquisition of Entrepix during the year ended September 30, 2023. We have evaluated the existing controls and procedures of Entrepix and integrated our internal control structure over this acquired business.

 

Remediation Plan for Existing Material Weaknesses

We are in the process of, and continue to focus on, designing and implementing effective measures to strengthen our ICFR and remediate the material weaknesses disclosed in our 2023 Form 10-K.

 

In relation to the material weakness identified in the areas of goodwill and intangible assets, we have evaluated the design of internal controls over non-routine and complex transactions, including the preparation and review of the third-party service provider valuation reports. Management engaged a new valuation firm to perform the impairment assessment for goodwill and intangible assets for the quarter ended December 31, 2023.

 

With respect to the material weakness related to general information technology controls, our management, under the oversight of our Audit Committee, has evaluated the current processes and has redesigned existing controls and

---

implemented new controls to remediate the control deficiencies giving rise to this material weakness. Remediation efforts include, but are not limited to:

 

The material weaknesses will not be considered remediated until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively. We anticipate that the remediation of this material weakness will be completed during fiscal year 2024. We are committed to continuing to improve our internal control processes, and, as we continue to evaluate and work to improve our internal control over financial reporting, we may take additional measures to address control deficiencies, or we may modify certain of our remediation measures.

---

PART II. OTHER INFORMATION

 

Item 1. Legal Proceedings

 

For discussion of legal proceedings, see Note 10 to our condensed consolidated financial statements under “Part I, Item 1. Financial Information” under “Commitments and Contingencies” of this Quarterly Report.

 

Item 1A. Risk Factors

 

We refer you to documents filed by us with the SEC, specifically “Item 1A. Risk Factors” in our 2023 Form 10-K, which identifies important risk factors that could materially affect our business, financial condition and future results. We also refer you to the factors and cautionary language set forth in the section entitled “Cautionary Statements Regarding Forward-Looking Statements” immediately preceding “Item 1. Condensed Consolidated Financial Statements” of this Quarterly Report. This Quarterly Report, including the accompanying condensed consolidated financial statements and related notes, should be read in conjunction with such risks and other factors for a full understanding of our operations and financial condition. The risks described in our 2023 Form 10-K and any described herein are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or operating results. There have been no material changes to the risk factors previously disclosed in our 2023 Form 10-K and our Form 10-Q for the quarter ended December 31, 2023.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

Issuer Purchases of Equity Securities

 

On February 7, 2023, the Board approved a stock repurchase program, pursuant to which the Company may repurchase up to $5 million of its outstanding Common Stock over a one-year period, commencing on February 10, 2023. Repurchases under the program will be made in open market transactions at prevailing market prices, in privately negotiated transactions, or by other means in compliance with the rules and regulations of the Securities and Exchange Commission; however, the Company has no obligation to repurchase shares and the timing, actual number, and value of shares to be repurchased is subject to management’s discretion and will depend on the Company’s stock price and other market conditions. The Company may, in the sole discretion of the Board, terminate the repurchase program at any time while it is in effect. Repurchased shares may be retired or kept in treasury for further issuance. The term of this plan expired during the quarter ended March 31, 2024.

 

During the six months ended March 31, 2024, we did not repurchase any of our equity securities nor did we sell any equity securities that were not registered under the Securities Act of 1933, as amended.

 

Item 3. Defaults Upon Senior Securities

 

None.

 

Item 4. Mine Safety Disclosures

 

Not applicable.

 

Item 5. Other Information

 

During the three months ended March 31, 2024, none of our directors or officers (as defined in Rule 16a-1(f) promulgated under the Securities Exchange Act of 1934, as amended) adopted, terminated, or modified a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K).

 

 

---

Item 6. Exhibits

 

EXHIBIT

INCORPORATED BY REFERENCE

FILED

NO.

EXHIBIT DESCRIPTION

FORM

FILE NO.

EXHIBIT NO.

FILING DATE

HEREWITH

31.1

Certification Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as Amended

X

31.2

Certification Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as Amended

X

32.1

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

X

32.2

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

X

101.INS

Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

X

101.SCH

Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents

X

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

X

 

---

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

AMTECH SYSTEMS, INC.

 

By		/s/ Lisa D. Gibbs		Dated:		May 8, 2024
		Lisa D. Gibbs
		Vice President and Chief Financial Officer
		(Principal Financial Officer and Duly Authorized Officer)

 

---