Amtech Systems, Inc.

Good day, and welcome to the Amtech Systems Second Quarter 2022 Earnings Conference Call. Please note that this event is being recorded. I would now like to turn the call over to Erica Mannion of Sapphire Investor Relations.

Please go ahead. Good afternoon, and thank you for joining us for Amtech Systems Fiscal Second Quarter 2022 Conference Call. With me on the call today are Michael Wang, Chief Executive Officer, Lisa Gibbs, Chief Financial Officer, and Paul Lancaster, Amtek's Vice President of Sales and Customer Service. After close of market today, Amtek released its financial results for the fiscal second quarter of 2022. The earnings release is posted on the company's website at www.amteksystems.com in the Investors section. Before we begin, I'd like to remind everyone that the Safe Harbor disclaimer in our public filings covers this call and our webcast. Some of the comments to be made during the call today will contain forward-looking statements and assumptions that are subject to risks and uncertainties, including but not limited to those contained in our SEC filings, all of which are posted within the investor section of our corporate website. The company assumes no obligation to update any such forward-looking statements. You are cautioned not to place undue reliance on forward-looking statements which speak only as of today. These statements are not a guarantee of future performance and actual results could differ materially from current expectations. Among the important factors which could cause actual results to differ materially from those in the forward-looking statements are changes in the technologies used by customers and competitors, change in volatility and demand for our products, the effect of changing worldwide political and economic conditions, including trade sanctions, the effect of overall market conditions, including the equity and credit markets and market acceptance risks, ongoing logistics, supply chain and labor challenges, capital allocation plans, and the worldwide COVID-19 pandemic. Other risk factors are detailed in the company's SEC filings, including its Form 10-K and Forms 10-Q. I will now turn the call over to Mike Wang, Chief Executive Officer.

Thank you, Erica, and everyone else for joining us today. I would like to start off by thanking our global team for their extraordinary efforts. We have been navigating through several challenges on an unparalleled scale the past couple of years. No doubt the experience has increased our resiliency and furthered our commitment to all of our stakeholders. I also want to let all of our Shanghai employees know that our thoughts are with them and their families. We will overcome this challenge together as we have prior storms. Stay strong. Moving on, the robust demand for our products continued in the second quarter with bookings of $33.7 million, up 4% over a strong second quarter in 2021. Backlog of $53.6 million, up 102% year over year, and a revenue of $28.6 million up 44% year-over-year, representing yet another record over the past three years. As many of you are aware, at the end of the second quarter, the Chinese government mandated a COVID lockdown throughout the Shanghai area. While this lockdown had limited impact on our second quarter results, given the robust overall demand environment, our manufacturing operation in Shanghai has remained closed since a mandated closure. which in effect will have an impact on our third quarter results. Our Shanghai factory producing our advanced packaging and SMT products has represented approximately half our revenues, depending on product mix, over the past four quarters. On May 5th, with support from our key customers, we have received notice that we have been cleared by the Chinese government for reopening. There are several steps and submissions required before being permitted to reopen, and we will be limited in the number of workers allowed into our factory upon such reopening. As of today, we could have the factory reopen in the next few weeks, with the government allowing approximately 10% to 15% of our workforce to return. We continue to expect limited shipments out of Shanghai in fiscal Q3 due to staffing, shipping, and supply chain limitations and the possibility of rolling closures if COVID numbers increase. Unfortunately, due to the extraordinary nature of the situation and the uncertainty of both the timing of a full reopening of our facility and the reopening of our customers and suppliers, disruptions are likely to last beyond the third quarter. Once our factory fully reopens and the local supply chain returns to normal, we will take advantage of our larger capacity to quickly ramp up production to serve the growing backlog. Despite this closure, demand in the market, including from our Chinese customers, remains strong. Our customers understand we are not alone in this situation, and our larger strategic customers wrote letters of support our application to reopen. To date, no customers have canceled orders. In fact, we continue to receive sizable new orders even during the closure. Looking beyond these near-term uncertainties, we strongly believe our leadership and select growth markets with exposure to several secular tailwinds creates significant opportunities to drive increased profitability and shareholder value as demand accelerates and we realize the operating leverage built into our current business model. I will now turn the call over to Paul go into more details in our end markets. Paul?