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ASYS Nasdaq· Amtech Systems Inc
Earnings report Q4 2023

ASYS Reports 16% Increase in Net Revenue in Latest Quarter

Segments of revenue

ASYS reported a total net revenue of $24.9 million for the three months ended December 31, 2023, representing a 16% increase compared to the same period in the previous year. The revenue was generated from two reportable segments, namely Semiconductor and Material and Substrate. The Semiconductor segment contributed $17.5 million in net revenue, reflecting a 4% increase from the previous year. The Material and Substrate segment saw a significant growth of 58%, with net revenue amounting to $7.4 million.

Strengths

ASYS demonstrated strength in its revenue performance, particularly in the Material and Substrate segment, which experienced a substantial increase of approximately $3.8 million during the quarter. This growth can be attributed to the addition of Entrepix, effective January 17, 2023, partially offset by lower sales of consumable products. The Semiconductor segment also showed improvement, driven by increased belt furnace shipments. ASYS management highlighted the positive impact of these factors on the company's financial results.

Challenges

Despite the overall revenue growth, ASYS faced challenges in its Semiconductor segment, particularly in shipments of advanced packaging and surface-mount technology (SMT) equipment. The company attributed this slowdown to a global demand decline in the consumer markets. Additionally, the Semiconductor segment experienced a decrease in new orders, with a decline of 19% compared to the previous year.

Noteworthy

ASYS reported a backlog of $49.9 million as of December 31, 2023. It is worth noting that one customer within the Semiconductor segment accounted for 31% of the company's backlog. This concentration of backlog poses a potential risk to ASYS if there are any disruptions or changes in the customer's demand.

Summary

ASYS delivered a strong performance in the latest quarter, with a 16% increase in net revenue. The Material and Substrate segment played a significant role in driving this growth, benefiting from the addition of Entrepix. However, challenges were observed in the Semiconductor segment, primarily due to a slowdown in demand for advanced packaging and SMT equipment. ASYS should closely monitor the concentration of backlog from a single customer within the Semiconductor segment. Overall, the company's revenue performance reflects a positive trend, but attention should be given to address the challenges in the Semiconductor segment and diversify the customer base.

Source documents

Form 10-Q  filed on Feb 09, 2024
136 pages scanned

Reference data

Company financials Q4 revenue 0
Analyst estimates Q4 EPS missed by 0.00%
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