Amtech Systems, Inc.

Good day, and welcome to the Amtech Systems Fiscal Fourth 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 Jordan Darrow of Darrow Associates Investor Relations. Please go ahead.

Thank you, and good afternoon, everyone. We appreciate you joining us for Amtech Systems Fiscal Fourth Quarter 2025 Conference Call and Webcast. With me today on the call are Bob Daigle, Chairman and Chief Executive Officer, and Wade Janke, Chief Financial Officer. After close of market today, Amtech released its financial results for the fourth quarter of 2025. The earnings release is posted on the company's website at www.amtechsystems.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. He will caution 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 technologies used by customers and competitors, change in volatility and 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 matters, and capital allocation plans. Other risk factors are detailed in our SEC filings, including our Form 10-K and Form 10-Q. Additionally, in today's conference call, we will be referencing non-GAAP financial measures as we discuss the fiscal fourth quarter financial results. You will find a reconciliation of those non-GAAP measures to our actual GAAP results included in the press release issued today. I will now turn the call over to AMTAC's Chief Executive Officer, Bob Daigle.

Thank you, Jordan, and good afternoon, and thank you for joining us today. I'm pleased to report that our fourth quarter performance was above expectations. with revenue of 19.8 million versus a guidance range of 17 to 19 million. Strength in demand for the equipment we produce for AI applications continues to be our primary growth driver. However, both our thermal processing solutions and our semiconductor fabrication solutions segments did exceed forecast, reflecting our strong position for advanced packaging solutions in AI markets, and more stable demand within the mature node semiconductor market. Adjusted EBITDA also came in above expectations at 2.6 million, or about 13 percent of revenue, versus the mid-single-digit EBITDA expected. These recent results are demonstrating our strong operating leverage and ability to generate cash. We ended the quarter with almost $18 million of cash on the balance sheet and continue to have no debt after paying it off last year. The cash swing over the past two fiscal years enabled us to eliminate our debt, which stood at over $10 million, and increase our cash to current levels. Our stronger-than-expected results for the quarter reflect the combined contribution of improved operational discipline, the benefits of our transition to a more flexible semi-fabulous manufacturing model, and our focus on higher-margin products where we have competitive advantages. Expanding on our end markets, within 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 fourth quarter, revenue from equipment used for AI infrastructure accounted for over 30 percent of our thermal processing solutions revenue, versus 25% in the prior quarter. Based on our channel checks, we see no slowdown for this area of our business. Related to revenue mix, we generated about 60% of our revenue from capital equipment and 40% from reoccurring revenues, including consumables, parts, and services. The balance between capital equipment and reoccurring revenue is important and reflects our strategy to expand higher margin reoccurring revenue streams while we fully capitalize on opportunities for equipment used to expand AI infrastructure. As we look ahead, our fourth quarter bookings suggest we should continue to see strength for AI-related equipment revenue. To fully capitalize on this growth opportunity, We are continuing to invest in next-generation equipment that enables volume production of higher density advanced packaging and electronic assemblies 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 slightly exceeded our expectations in the quarter. Beyond the cyclical ebbs and flows of this market, we remain committed to 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 increased recurring revenue streams as customers qualify our products and scale production. While these initiatives will take time to scale, we are encouraged by the level of customer interest and engagement. This is all part of our strategy to over-serve the under-served. As a relatively small player in a very large overall market for semiconductor consumables and equipment, We are targeting high-end, high-margin applications where we can leverage strong technical capabilities and provide exceptional service. End markets include medtech and defense applications, among others, where we have strong customer engagement enabled by our foundry service and differentiated capabilities so we can develop sticky reoccurring revenue streams. Over the past 18 months, we've made tremendous progress optimizing our operating model and improving our cost structure. We implemented a series of cost reduction initiatives that included the elimination of some unprofitable products and a shift of some products to outsource partners to reduce labor and fixed overhead costs. These initiatives, which include consolidation of our manufacturing footprint from seven sites to four sites, resulted in $13 million of annualized savings. Looking ahead, we expect to realize additional savings by subletting underutilized factories. These actions have significantly reduced our EBITDA breakeven point, improved our ability to scale profitably with higher volumes. With the majority of major optimization initiatives completed, we are now focused on growth initiatives to fully capitalize on AI equipment opportunities and increase our reoccurring revenue. Our improved financial performance, prospects for continued operating cash flow generation, CapEx light business model, and a strong balance sheet have provided us with the flexibility to return capital to shareholders while also investing in growth opportunities. So Amtech's board of directors has authorized the share repurchase program of up to $5 million of the company's common stock for a one-year period. In summary, we have a strong foundation for growth driven by AI market opportunities and differentiated capabilities. The changes we've made to optimize our business model and streamline our product portfolio have created strong operating leverage, which positions us well to elevate profitability as we grow and create meaningful shareholder value. With that, I'll turn it over to Wade for further details on our financial results.