Amtech Systems, Inc.

Good day and welcome to the Amtech Systems Fiscal Third Quarter 2025 earnings call. Please note that this call is being recorded and simultaneously webcast. 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 Third Quarter 2025 conference call. With me today on the call are Bob Daigle, Chairman and Chief Executive Officer, and Wade Janke, Chief Financial Officer. After closing market today, Amtek released its financial results for the third fiscal quarter of 2025. 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 the webcast. Some of the comments to be made during today's call 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 in the investor section of our corporate website. The company assumes no obligation to update any such forward-looking statements. Your caution not to place under-reliance on forward-looking statements would 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 technologies used by customers and competitors, change in volatility in the demand for products, the effect of changing worldwide political and economic conditions, including trade sanctions, the effect of overall market conditions, including equity and credit markets and market acceptance risks, ongoing logistics, supply chain and labor challenges, and capital allocation plans. Other risk factors are detailed in our SEC filings, including our Form 10-K and Forms 10-Q. Additionally, in today's conference call, we will be referring to non-GAAP financial measures as we discuss the third fiscal quarter financial results. You'll find a reconciliation of these non-GAAP measures to our actual GAAP results included in the press release issued today. I will now turn the call over to AMTEC's Chief Executive Officer, Bob Daigle.

Good afternoon and thank you for joining us today. I'm pleased to report that our third quarter performance was above expectations with revenue of $19.6 million, an increase of 26% over the prior quarter. Both our thermal processing solutions and our semiconductor fabrication solutions segments exceeded forecasts, reflecting ongoing strength in the advanced packaging market and stabilizing demand within the mature node semiconductor market. Adjusted EBITDA also came in above expectations at 2.2 million, benefiting from a non-recurring employee retention credit. Excluding those items, EBITDA was nominally positive. This profitability reflects the combination of improved cost controls, operational discipline, as well as benefits of our transition to a more flexible asset-like manufacturing model. Expanding on our end markets, with the thermal processing solution segment, advanced semiconductor packaging remained a highlight this quarter, with continued strength driven primarily by ongoing investments in AI infrastructure. For context, in the third quarter, revenue from equipment used for AI infrastructure increased five-fold from a year ago and over 60% sequentially. AI-related equipment accounted for about 25% of our thermal processing solutions revenue in the quarter. Related to revenue mix, we generated about 60% of our revenue from capital equipment and 40% from reoccurring revenue, including consumables, parts, and services. The balance between capital equipment and reoccurring revenue is important and reflects our strategy to expand reoccurring revenue streams while fully capitalizing on opportunities for equipment used to expand AI infrastructure. As we look ahead, our third quarter bookings suggest we should continue to see strength for AI related equipment revenue. To fully capitalize on this opportunity for growth, we are continuing to invest in next generation semiconductor packaging equipment that enables volume production of higher density advanced packages to increase our addressable market and the value we provide to customers. Turning to our semiconductor fabrication solution segment, as we indicated last quarter, demand for front-end equipment and consumables tied to mature node semiconductor applications in industrial and automotive markets remained weak. That said, performance in this segment modestly exceeded our expectations in the quarter, driven by some improvements in demand for consumables. Beyond the cyclical ebbs and flows of this market, we remain committed controlling our own destiny by investing in applications and product development to solve problems faced by our customers. We expect these initiatives to deepen customer relationships and increase reoccurring revenue streams as customers qualify our products and scale production. While these initiatives will take time to scale, we believe they're important to generate steady growth and building a more resilient higher margin business. Beyond our AI equipment and reoccurring revenue growth initiatives, we have made significant progress in optimizing our operating model. Over the past 18 months, we've implemented a series of cost reduction initiatives resulting in $13 million in annualized savings. This includes consolidating our manufacturing footprint from seven sites foresight as we shifted some of our production to outsource partners. Looking ahead, we expect to realize additional savings by subletting unutilized facilities. These actions will further lower EBITDA break-even point and improve our ability to scale profitability with higher volumes. In summary, while the near-term environment remains dynamic with strong AI-related demand but weak mature-node product demand, We believe the structural changes we've made to improve operating leverage and our focused investments in product and application development position us very well to deliver profitable growth. With that, I'll turn it over to Wade for further details on our financial results.