Latest news with #ASYS
Yahoo
2 days ago
- Business
- Yahoo
ASYS Q1 Earnings Call: Revenue Misses and Weak Guidance Amid Mature Node Semiconductor Challenges
Semiconductor production equipment provider Amtech Systems (NASDAQ:ASYS) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 38.7% year on year to $15.58 million. Its non-GAAP loss of $0.16 per share was significantly below analysts' consensus estimates. Is now the time to buy ASYS? Find out in our full research report (it's free). Revenue: $15.58 million (38.7% year-on-year decline) Adjusted EPS: -$0.16 vs analyst estimates of $0.01 (significant miss) Revenue Guidance for Q2 CY2025 is $17.5 million at the midpoint, below analyst estimates of $25.2 million Operating Margin: -53.1%, down from -2.8% in the same quarter last year Inventory Days Outstanding: 119, down from 155 in the previous quarter Market Capitalization: $55.97 million Amtech's first quarter was shaped by a combination of shipment delays and ongoing weakness in the mature node semiconductor market. CEO Bob Daigle attributed the revenue shortfall primarily to a delayed $4.9 million shipment in the Thermal Processing Solutions segment, caused by a customer dispute. In addition, Daigle noted a broader decline in demand for equipment and consumables tied to industrial and automotive applications. These conditions mirror broader industry trends, as several semiconductor original equipment manufacturers (OEMs) have reported similar softening. The resulting impact was a significant decline in sales and profitability, with management highlighting that actions such as a major impairment charge and inventory write-off were necessary to align the company's assets with current market conditions. Looking forward, Amtech's guidance reflects continued caution, with management anticipating ongoing demand headwinds in key end markets. Daigle pointed to strong bookings for advanced packaging equipment used in artificial intelligence (AI) applications as a rare bright spot, noting, 'Bookings for this product line exceeded our total bookings for all of fiscal 2024.' Nonetheless, he acknowledged persistent challenges from tariffs and macroeconomic uncertainty—especially in the U.S. market—and emphasized the need for operational efficiency and an expanded customer base. CFO Wade Jenke reinforced the focus on cost-cutting and a semi-fabless operating model, aiming for improved profitability even as near-term revenue expectations remain subdued. Management attributed the quarter's results to shipment delays, weak mature node demand, and necessary asset write-downs, while emphasizing emerging strength in advanced packaging and ongoing cost reductions. Shipment delay impact: A delayed $4.9 million order in the Thermal Processing Solutions segment due to a customer dispute was a primary driver of the revenue shortfall. Management stated that shipment will occur once the dispute is resolved, but timing remains uncertain. Mature node market softness: Orders for equipment and consumables related to mature node applications—used in industrial and automotive semiconductors—remained weak, mirroring broader industry declines and leading to reduced sales and profitability. Asset impairment and write-offs: Amtech recorded a $22.9 million impairment charge and a $6 million inventory write-off for equipment tied to mature node and electric vehicle applications. These non-cash charges were taken to align the company's asset base with current demand conditions. AI-driven advanced packaging demand: In contrast to weak mature node markets, orders for advanced packaging equipment—especially those supporting AI infrastructure—were strong. Management noted that bookings in this area surpassed total bookings for the entire previous year, driven by secular investment in AI. Cost structure optimization: Amtech executed further site consolidations and workforce reductions during the quarter, targeting $1 million in additional quarterly savings. Transitioning to a semi-fabless operating model, the company now expects annualized cost savings of $11 million as it exits the year. Amtech's outlook centers on recovering demand in advanced packaging, continued cost reductions, and managing exposure to tariffs and macroeconomic headwinds. AI infrastructure growth: Management expects sustained demand for advanced packaging equipment as AI applications proliferate. The company believes this segment offers a significant growth opportunity, offsetting some of the weakness in mature node markets. Cost control focus: Amtech's ongoing shift to a semi-fabless model and additional site consolidations are expected to drive meaningful fixed cost reductions. Management forecasts that these efforts will lower the company's breakeven point and enhance EBITDA margins as demand recovers. Tariff and market risk: The company remains exposed to uncertainties around tariffs, particularly in the U.S. and China, and broader macroeconomic volatility. Leadership is evaluating manufacturing alternatives in other regions to mitigate potential tariff-related headwinds. Looking ahead, the StockStory team will monitor (1) resolution of the delayed $4.9 million shipment and its timing, (2) sustained strength in advanced packaging bookings tied to AI investment, and (3) the realization of cost savings from site consolidations and the semi-fabless model. Progress in expanding recurring revenue from consumables, parts, and services will also be a key indicator of Amtech's ability to navigate cyclical downturns. Amtech currently trades at a forward EV-to-EBITDA ratio of 14.7×. At this valuation, is it a buy or sell post earnings? Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. 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Yahoo
30-05-2025
- Business
- Yahoo
3 Stocks Under $10 in the Doghouse
Stocks under $10 pique our interest because they have room to grow (as well as the most affordable option contract premiums). That doesn't mean they're bargains though, and we urge investors to be careful as many have risky business models. Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here are three stocks under $10 to avoid and some other investments you should consider instead. Share Price: $4.17 Focusing on the silicon carbide and power semiconductor sectors, Amtech Systems (NASDAQ:ASYS) produces the machinery and related chemicals needed for manufacturing semiconductors. Why Is ASYS Risky? Customers postponed purchases of its products and services this cycle as its revenue declined by 7.9% annually over the last two years Historical operating margin losses point to an inefficient cost structure Negative returns on capital show that some of its growth strategies have backfired, and its shrinking returns suggest its past profit sources are losing steam Amtech's stock price of $4.17 implies a valuation ratio of 15.6x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than ASYS. Share Price: $3.12 Founded in 2014 to improve healthcare for America's seniors through technology, Clover Health (NASDAQ:CLOV) provides Medicare Advantage plans for seniors with a focus on affordable care and uses its proprietary Clover Assistant software to help physicians manage patient care. Why Are We Cautious About CLOV? Products and services are facing significant end-market challenges during this cycle as sales have declined by 28.7% annually over the last two years Weak customer trends over the past two years suggest it may need to improve its products, pricing, or go-to-market strategy Cash burn makes us question whether it can achieve sustainable long-term growth At $3.12 per share, Clover Health trades at 42.6x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why CLOV doesn't pass our bar. Share Price: $4.90 Pioneering the modern office copier and inventing technologies like Ethernet and the laser printer, Xerox (NASDAQ:XRX) provides document management systems, printing technology, and workplace solutions to businesses of all sizes across the globe. Why Do We Think XRX Will Underperform? Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.7% annually over the last five years Diminishing returns on capital from an already low starting point show that neither management's prior nor current bets are going as planned High net-debt-to-EBITDA ratio of 6× increases the risk of forced asset sales or dilutive financing if operational performance weakens Xerox is trading at $4.90 per share, or 5x forward P/E. To fully understand why you should be careful with XRX, check out our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Washington Post
12-05-2025
- Business
- Washington Post
Amtech: Fiscal Q2 Earnings Snapshot
TEMPE, Ariz. — TEMPE, Ariz. — Amtech Systems Inc. (ASYS) on Monday reported a fiscal second-quarter loss of $31.8 million, after reporting a profit in the same period a year earlier. On a per-share basis, the Tempe, Arizona-based company said it had a loss of $2.23. Losses, adjusted for asset impairment costs and non-recurring costs, were 16 cents per share.
Yahoo
12-05-2025
- Business
- Yahoo
Amtech: Fiscal Q2 Earnings Snapshot
TEMPE, Ariz. (AP) — TEMPE, Ariz. (AP) — Amtech Systems Inc. (ASYS) on Monday reported a fiscal second-quarter loss of $31.8 million, after reporting a profit in the same period a year earlier. On a per-share basis, the Tempe, Arizona-based company said it had a loss of $2.23. Losses, adjusted for asset impairment costs and non-recurring costs, were 16 cents per share. The provider of equipment for solar panel and semiconductor makers posted revenue of $15.6 million in the period. For the current quarter ending in June, Amtech said it expects revenue in the range of $16 million to $19 million. In the final minutes of trading on Monday, the company's shares hit $3.36. A year ago, they were trading at $5.17. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on ASYS at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-05-2025
- Business
- Yahoo
1 Semiconductor Stock with Competitive Advantages and 2 to Keep Off Your Radar
Semiconductors are the silicon backbone of the digital revolution. Demand for chips is variable though, meaning that corporate inventory levels and sentiment can significantly impact the industry. Uncertainty surrounding these factors has hurt semiconductor stocks over the past six months as they have pulled back by 17%. This drawdown was noticeably worse than the S&P 500's 1.7% fall. The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Keeping that in mind, here is one semiconductor stock poised to generate sustainable market-beating returns and two we're steering clear of. Market Cap: $98.5 billion Founded by two MIT graduates, Ray Stata and Matthew Lorber in 1965, Analog Devices (NASDAQ:ADI) is one of the largest providers of high performance analog integrated circuits used mainly in industrial end markets, along with communications, autos, and consumer devices. Why Does ADI Give Us Pause? Products and services are facing significant end-market challenges during this cycle as sales have declined by 13.8% annually over the last two years Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 8.1 percentage points Low returns on capital reflect management's struggle to allocate funds effectively, and its falling returns suggest its earlier profit pools are drying up Analog Devices's stock price of $198.10 implies a valuation ratio of 26.1x forward P/E. To fully understand why you should be careful with ADI, check out our full research report (it's free). Market Cap: $51.44 million Focusing on the silicon carbide and power semiconductor sectors, Amtech Systems (NASDAQ:ASYS) produces the machinery and related chemicals needed for manufacturing semiconductors. Why Do We Pass on ASYS? Muted 4.1% annual revenue growth over the last five years shows its demand lagged behind its semiconductor peers Historical operating losses point to an inefficient cost structure Negative returns on capital show that some of its growth strategies have backfired, and its falling returns suggest its earlier profit pools are drying up Amtech is trading at $3.53 per share, or 7.3x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why ASYS doesn't pass our bar. Market Cap: $126 billion Founded in 1967 as the first company to develop tools for other businesses in the semiconductor industry, Applied Materials (NASDAQ:AMAT) is the largest provider of semiconductor wafer fabrication equipment. Why Does AMAT Stand Out? Market share has increased this cycle as its 13% annual revenue growth over the last five years was exceptional Healthy operating margin of 29.1% shows it's a well-run company with efficient processes, and its rise over the last five years was fueled by some leverage on its fixed costs Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures At $155.10 per share, Applied Materials trades at 16.3x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
