Amtech Systems, Inc. ("Amtech") (NASDAQ:ASYS), a manufacturer of thermal processing, wafer cleaning and chemical mechanical polishing (CMP) capital equipment and related consumables used in semiconductor, advanced mobility and renewable energy manufacturing applications, today reported results for its second quarter ended March 31, 2024.

Second Quarter Fiscal 2024 Financial and Operational Results:

Net revenue of $25.4 million
GAAP operating income of $1.4 million
Net proceeds of $2.5 million from sale of corporate headquarters building
Debt payments of $6.4 million, ending the quarter with net cash position of $8.8 million
Non-GAAP operating income of $0.2 million ⁽¹⁾
GAAP net income of $1.0 million
Non-GAAP net loss of $0.2 million ⁽¹⁾
Customer orders of $19.8 million
Backlog of $44.3 million

(1) See GAAP to non-GAAP reconciliation in schedules following this release.

"In the second quarter of fiscal 2024 we benefited from improvements in our cost structure and operational effectiveness. We exceeded the high-end of our guidance range with revenue of $25.4 million and, more importantly, we delivered adjusted EBITDA of $0.8 million despite continued softness in overall market demand. Over the past few quarters, we have better aligned the size of our organization to support current market demand and believe we have positioned the company to deliver strong operating results as the broader semiconductor market recovers," commented Mr. Bob Daigle, Chief Executive Officer of Amtech.

GAAP and Non-GAAP Financial Results

(in millions, except per share amounts)	Q2			Q1			Q2			6 Months			6 Months
	FY 2024			FY 2024			FY 2023			2024			2023
Revenues, net	$	25.4		$	24.9		$	33.3		$	50.4		$	54.9
Gross profit	$	8.5		$	8.2		$	13.5		$	16.7		$	21.8
Gross margin		33.2	%		33.0	%		40.4	%		33.1	%		39.7	%
Non-GAAP gross profit ⁽¹⁾	$	8.6		$	9.3		$	13.5		$	18.0		$	21.8
Non-GAAP gross margin ⁽¹⁾		33.9	%		37.5	%		40.4	%		35.7	%		39.7	%

GAAP operating income (loss)	$	1.4		$	(8.9	)	$	0.5		$	(7.6	)	$	(2.2	)
GAAP operating margin		5.4	%		-35.9	%		1.6	%		-15.0	%		-3.9	%
Non-GAAP operating income (loss) ⁽¹⁾	$	0.2		$	(0.2	)	$	3.2		$	(0.0	)	$	2.5
Non-GAAP operating margin ⁽¹⁾		0.7	%		-0.8	%		9.5	%		0.0	%		4.5	%

GAAP net income (loss)	$	1.0		$	(9.4	)	$	3.2		$	(8.4	)	$	0.5
GAAP net income (loss) per diluted share	$	0.07		$	(0.66	)	$	0.23		$	(0.59	)	$	0.03
Non-GAAP net (loss) income ⁽¹⁾	$	(0.2	)	$	(0.6	)	$	2.7		$	(0.8	)	$	1.9
Non-GAAP net (loss) income per diluted share⁽¹⁾	$	(0.01	)	$	(0.04	)	$	0.19		$	(0.06	)	$	0.14

(1) See GAAP to non-GAAP reconciliation in schedules following this release.

Net revenues increased 2% sequentially and decreased 24% from the second quarter of fiscal 2023. The sequential increase is primarily due to increased consumable sales in our Material and Substrate segment, as customers update their buying patterns and adjust inventory levels. The decrease from prior year is primarily attributable to lower sales across most of our product portfolio due to a slow-down in the broader semiconductor market.

In the second quarter of fiscal 2024, GAAP gross margin was flat sequentially and decreased compared to the same prior year period. In our semiconductor segment, GAAP gross margin was negatively affected by product mix and increased material costs, both primarily attributed to shipments of our horizontal diffusion furnaces. GAAP gross margin in our Material and Substrate segment increased sequentially and compared to the same prior year period due primarily to a more favorable product mix, with increased consumable sales partially offset by lower equipment sales. Non-GAAP gross margin decreased sequentially and compared to the same prior year period due primarily to a less favorable product mix and increased material costs, both primarily attributed to shipments of our horizontal diffusion furnaces.

Selling, General & Administrative ("SG&A") expenses decreased $0.3 million on a sequential basis and decreased $3.2 million compared to the prior year period. The sequential decrease is due primarily to reductions in labor expenses and lower commissions and shipping expenses. Compared to the same prior year period, the decrease is due primarily to $1.5 million of lower acquisition expenses, $0.6 million of lower amortization expense, and reductions in labor, commissions and shipping expenses.

Research, Development and Engineering expenses decreased $0.7 million sequentially and decreased $0.6 million compared to the same prior year period due primarily to the timing of purchases related to specific projects in our Semiconductor segment.

During the second quarter of fiscal 2024, we sold our corporate headquarters building in Tempe, Arizona for a gain of $2.2 million and net cash proceeds of $2.5 million.

GAAP operating income was $1.4 million, compared to GAAP operating loss of $8.9 million in the first quarter of fiscal 2024 and GAAP operating income of $0.5 million in the same prior year period.

Non-GAAP operating income was $0.2 million, compared to non-GAAP operating loss of $0.2 million in the first quarter of fiscal 2024 and non-GAAP operating income of $3.2 million in the same prior year period.

GAAP net income for the second quarter of fiscal 2024 was $1.0 million, or 7 cents per share. This compares to GAAP net loss of $9.4 million, or 66 cents per share, for the preceding quarter and GAAP net income of $3.2 million, or 23 cents per share, for the second quarter of fiscal 2023.

Non-GAAP net loss for the second quarter of fiscal 2024 was $0.2 million, or 1 cent per share. This compares to non-GAAP net loss of $0.6 million, or 4 cents per share, for the preceding quarter and non-GAAP net income of $2.7 million, or 19 cents per share, for the second quarter of fiscal 2023.

Unrestricted cash and cash equivalents at March 31, 2024, were $13.0 million, compared to $13.1 million at September 30, 2023. Debt payments during the three months ended March 31, 2024 were $6.4 million. Net cash as of March 31, 2024 was $8.8 million compared to $7.0 million as of December 31, 2023.

In discussing financial results for the three and six months ended March 31, 2024 and 2023 and the three months ended December 31, 2023, in this press release, the Company refers to certain financial measures that are adjusted from the financial results prepared in accordance with United States generally accepted accounting principles ("GAAP"). All non-GAAP amounts exclude certain adjustments for stock compensation expense, severance expense, expenses related to the discontinued product line, intangible asset impairment, gain on the sale of our Arizona headquarters, amortization of acquired intangible assets, acquisition expenses, and income tax benefit related to our acquisition of Entrepix, Inc. A tabular reconciliation of financial measures prepared in accordance with GAAP to the non-GAAP financial measures is included at the end of this press release.

Outlook

Operating results can be significantly impacted, positively or negatively, by the timing of orders, system shipments, logistical challenges, and the financial results of semiconductor manufacturers. Additionally, the semiconductor equipment industries can be cyclical and inherently impacted by changes in market demand. Actual results may differ materially in the weeks and months ahead.

For the third fiscal quarter ending June 30, 2024, we expect revenues in the range of $22 - 25 million with adjusted EBITDA nominally positive, which includes some expenses and production downtime with the BTU facility move. Although the near-term outlook for revenue and earnings remains challenging, we remain confident that the future prospects are strong for both our consumables and equipment serving advanced mobility and advanced packaging applications. We took actions during the first and second quarters of fiscal 2024, which will reduce Amtech's structural costs by approximately $6 million annually and better align product pricing with value. These steps should significantly improve results and enhance profitability through market cycles.

A portion of Amtech's results is denominated in Renminbis, a Chinese currency. The outlook provided in this press release is based on an assumed exchange rate between the United States Dollar and the Renminbi. Changes in the value of the Renminbi in relation to the United States Dollar could cause actual results to differ from expectations.

Conference Call

Amtech Systems will host a conference call at 5:00 pm ET on Wednesday, May 8, 2024 to discuss our fiscal second quarter financial results. The call will be available to interested parties by dialing 1-888-886-7786. For international callers, please dial +1-416-764-8658. A live webcast of the conference call will be available in the Investor Relations section of Amtech's website at: https://www.amtechsystems.com/investors/events.

A replay of the webcast will be available in the Investor Relations section of the company's website at http://www.amtechsystems.com/conference.htm shortly after the conclusion of the call and will remain available for approximately 30 calendar days.

About Amtech Systems, Inc.

Amtech Systems, Inc. is a leading, global manufacturer of thermal processing, wafer cleaning and chemical mechanical polishing (CMP) capital equipment and related consumables used in semiconductor, advanced mobility and renewable energy manufacturing applications. We sell process equipment and services used in the fabrication of semiconductor devices, such as silicon carbide (SiC), silicon power, electronic assemblies and modules to semiconductor device and module manufacturers worldwide, particularly in Asia, North America and Europe. Our strategic focus is on growth opportunities which leverage our strengths in thermal and substrate processing. Amtech's products are recognized under the leading brand names BTU International, Entrepix, Inc., PR Hoffman™ and Intersurface Dynamics, Inc.

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this press release is forward-looking in nature. All statements in this press release, or made by management of Amtech Systems, Inc. and its subsidiaries ("Amtech"), other than statements of historical fact, are hereby identified as "forward-looking statements" (as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995). The forward-looking statements in this press release relate only to events or information as of the date on which the statements are made in this press release. Examples of forward-looking statements include statements regarding Amtech's future financial results, operating results, business strategies, projected costs, products under development, competitive positions, plans and objectives of Amtech and its management for future operations, efforts to improve operational efficiencies and effectiveness and profitably grow our revenue, and enhancements to our technologies and expansion of our product portfolio. In some cases, forward-looking statements can be identified by terminology such as "may," "plan," "anticipate," "seek," "will," "expect," "intend," "estimate," "believe," "continue," "predict," "potential," "project," "should," "would," "could", "likely," "future," "target," "forecast," "goal," "observe," and "strategy" or the negative of these terms or other comparable terminology used in this press release or by our management, which are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. The Form 10-K that Amtech filed with the Securities and Exchange Commission (the "SEC") for the year-ended September 30, 2023, listed various important factors that could affect the Company's future operating results and financial condition and could cause actual results to differ materially from historical results and expectations based on forward-looking statements made in this document or elsewhere by Amtech or on its behalf. These factors can be found under the heading "Risk Factors" in the Form 10-K and in our subsequently filed Quarterly Reports on Form 10-Qs, and investors should refer to them. Because it is not possible to predict or identify all such factors, any such list cannot be considered a complete set of all potential risks or uncertainties. Except as required by law, we undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events, or otherwise.


AMTECH SYSTEMS, INC. (NASDAQ:ASYS) (Unaudited)

Summary Financial Information (in thousands, except percentages)

	Three Months Ended									Six Months Ended March 31,
	March 31, 2024			December 31, 2023			March 31, 2023			2024			2023
Amtech Systems, Inc.
Revenues, net	$	25,433		$	24,920		$	33,310		$	50,353		$	54,868
GAAP gross profit	$	8,451		$	8,219		$	13,470		$	16,670		$	21,773
Non-GAAP gross profit	$	8,626		$	9,341		$	13,470		$	17,967		$	21,773
GAAP gross margin		33	%		33	%		40	%		33	%		40	%
Non-GAAP gross margin		34	%		37	%		40	%		36	%		40	%
GAAP operating income (loss)	$	1,363		$	(8,934	)	$	519		$	(7,571	)	$	(2,161	)
Non-GAAP operating income (loss)	$	188		$	(210	)	$	3,162		$	(22	)	$	2,492
New orders	$	19,771		$	23,105		$	34,266		$	42,876		$	59,495
Backlog	$	44,316		$	49,979		$	65,838		$	44,316		$	65,838
Semiconductor Segment
Revenues, net	$	17,441		$	17,527		$	22,047		$	34,968		$	38,934
GAAP gross profit	$	5,040		$	6,159		$	8,931		$	11,199		$	15,103
Non-GAAP gross profit	$	5,040		$	6,159		$	8,931		$	11,199		$	15,103
GAAP gross margin		29	%		35	%		41	%		32	%		39	%
Non-GAAP gross margin		29	%		35	%		41	%		32	%		39	%
GAAP operating income	$	896		$	1,081		$	2,950		$	1,977		$	3,819
Non-GAAP operating income	$	896		$	1,192		$	2,950		$	2,088		$	3,819
New orders	$	12,061		$	17,129		$	24,606		$	29,189		$	45,690
Backlog	$	39,455		$	44,835		$	54,767		$	39,455		$	54,767
Material and Substrate Segment
Revenues, net	$	7,992		$	7,393		$	11,263		$	15,385		$	15,934
GAAP gross profit	$	3,411		$	2,060		$	4,539		$	5,471		$	6,670
Non-GAAP gross profit	$	3,586		$	3,182		$	4,539		$	6,768		$	6,670
GAAP gross margin		43	%		28	%		40	%		36	%		42	%
Non-GAAP gross margin		45	%		43	%		40	%		44	%		42	%
GAAP operating income (loss)	$	900		$	(7,844	)	$	297		$	(6,943	)	$	930
Non-GAAP operating income	$	1,300		$	452		$	1,938		$	1,753		$	2,571
New orders	$	7,710		$	5,976		$	9,660		$	13,687		$	13,805
Backlog	$	4,861		$	5,144		$	11,071		$	4,861		$	11,071

AMTECH SYSTEMS, INC. (NASDAQ:ASYS) (Unaudited)

Consolidated Statements of Operations (in thousands, except per share data)

	Three Months Ended March 31,						Six Months Ended March 31,
	2024			2023			2024			2023
Revenues, net	$	25,433		$	33,310		$	50,353		$	54,868
Cost of sales		16,982			19,840			32,834			33,095
Intangible asset impairment		—			—			849			—
Gross profit		8,451			13,470			16,670			21,773

Selling, general and administrative		8,252			11,434			16,819			20,624
Research, development and engineering		921			1,517			2,509			2,910
Gain on sale of fixed assets		(2,197	)		—			(2,197	)		—
Goodwill impairment		—			—			6,370			—
Intangible asset impairment		—			—			430			—
Severance expense		112			—			310			400
Operating income (loss)		1,363			519			(7,571	)		(2,161	)

Interest income		14			49			33			339
Interest expense		(193	)		(155	)		(391	)		(157	)
Foreign currency loss		—			(168	)		(187	)		(515	)
Other		9			13			9			4
Income (loss) before income tax provision		1,193			258			(8,107	)		(2,490	)
Income tax provision (benefit)		223			(2,946	)		281			(2,950	)
Net income (loss)	$	970		$	3,204		$	(8,388	)	$	460

Income (Loss) Per Share:
Net income (loss) per basic share	$	0.07		$	0.23		$	(0.59	)	$	0.03
Net income (loss) per diluted share	$	0.07		$	0.23		$	(0.59	)	$	0.03
Weighted average shares outstanding:
Basic		14,197			14,028			14,193			14,018
Diluted		14,209			14,157			14,193			14,142

AMTECH SYSTEMS, INC. (NASDAQ:ASYS) (Unaudited)

Consolidated Balance Sheets (in thousands, except share data)

	March 31, 2024			September 30, 2023
Assets
Current Assets
Cash and cash equivalents	$	13,000		$	13,133
Accounts receivable (less allowance for credit losses of $115 and $146 at March 31, 2024 and September 30, 2023, respectively)		21,230			26,474
Inventories		31,308			34,845
Income taxes receivable		457			632
Other current assets		4,304			6,105
Total current assets		70,299			81,189
Property, Plant and Equipment - Net		9,476			9,695
Right-of-Use Assets - Net		9,784			11,217
Intangible Assets - Net		4,352			6,114
Goodwill		21,261			27,631
Deferred Income Taxes - Net		123			101
Other Assets		1,179			1,074
Total Assets	$	116,474		$	137,021
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable	$	6,741		$	10,815
Accrued compensation and related taxes		2,085			3,481
Accrued warranty expense		763			965
Other accrued liabilities		1,133			1,551
Current maturities of finance lease liabilities and long-term debt		4,243			2,265
Current portion of long-term operating lease liabilities		1,934			2,623
Contract liabilities		9,015			8,018
Total current liabilities		25,914			29,718
Finance Lease Liabilities and Long-Term Debt		65			8,422
Long-Term Operating Lease Liabilities		8,195			8,894
Income Taxes Payable		1,357			1,575
Other Long-Term Liabilities		52			47
Total Liabilities		35,583			48,656
Commitments and Contingencies
Shareholders' Equity
Preferred stock; 100,000,000 shares authorized; none issued		—			—
Common stock; $0.01 par value; 100,000,000 shares authorized; shares issued and outstanding: 14,208,795 and 14,185,977 at March 31, 2024 and September 30, 2023, respectively		142			142
Additional paid-in capital		127,658			126,963
Accumulated other comprehensive loss		(1,476	)		(1,695	)
Retained deficit		(45,433	)		(37,045	)
Total Shareholders' Equity		80,891			88,365
Total Liabilities and Shareholders' Equity	$	116,474		$	137,021

AMTECH SYSTEMS, INC. (NASDAQ:ASYS) (Unaudited)

Consolidated Statements of Cash Flows (in thousands)

	Six Months Ended March 31,
	2024			2023
Operating Activities
Net (loss) income	$	(8,388	)	$	460
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation and amortization		1,572			1,887
Write-down of inventory		940			517
Goodwill impairment		6,370			—
Intangible asset impairment		1,279			—
Deferred income taxes		(22	)		(3,172	)
Non-cash share-based compensation expense		667			338
Gain on sale of property, plant and equipment		(2,197	)		—
Provision for allowance for credit losses		—			156
Changes in operating assets and liabilities:
Accounts receivable		5,244			1,113
Inventories		2,617			(4,631	)
Other assets		3,163			2,215
Accounts payable		(3,462	)		(1,497	)
Accrued income taxes		(42	)		(1,192	)
Accrued and other liabilities		(3,432	)		(2,289	)
Contract liabilities		998			768
Net cash provided by (used in) operating activities		5,307			(5,327	)
Investing Activities
Purchases of property, plant and equipment		(1,976	)		(976	)
Proceeds from the sale of property, plant and equipment		2,700			—
Acquisition, net of cash and cash equivalents acquired		—			(35,498	)
Net provided by provided by (used in) investing activities		724			(36,474	)
Financing Activities
Proceeds from the exercise of stock options		28			331
Payments on long-term debt		(6,413	)		(412	)
Borrowings on long-term debt		—			12,000
Net cash (used in) provided by financing activities		(6,385	)		11,919
Effect of Exchange Rate Changes on Cash and Cash Equivalents		221			741
Net Decrease in Cash and Cash Equivalents		(133	)		(29,141	)
Cash and Cash Equivalents, Beginning of Period		13,133			46,874
Cash and Cash Equivalents, End of Period	$	13,000		$	17,733

AMTECH SYSTEMS, INC. (NASDAQ:ASYS) (Unaudited)

Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except per share data)

	Three Months Ended									Six Months Ended March 31,
	March 31, 2024			December 31, 2023			March 31, 2023			2024			2023
Amtech Systems, Inc. Gross Profit:
GAAP gross profit	$	8,451		$	8,219		$	13,470		$	16,670		$	21,773
Write-down of inventory related to polishing equipment		175			273			-			448			-
Intangible asset impairment		-			849			-			849			-
Non-GAAP gross profit	$	8,626		$	9,341		$	13,470		$	17,967		$	21,773

GAAP gross margin		33	%		33	%		40	%		33	%		40	%
Non-GAAP gross margin		34	%		37	%		40	%		36	%		40	%

Semiconductor Segment Gross Profit:
GAAP gross profit	$	5,040		$	6,159		$	8,931		$	11,199		$	15,103
Write-down of inventory related to polishing equipment		-			-			-			-			-
Intangible asset impairment		-			-			-			-			-
Non-GAAP gross profit	$	5,040		$	6,159		$	8,931		$	11,199		$	15,103

GAAP gross margin		29	%		35	%		41	%		32	%		39	%
Non-GAAP gross margin		29	%		35	%		41	%		32	%		39	%

Material and Substrate Segment Gross Profit:
GAAP gross profit	$	3,411		$	2,060		$	4,539		$	5,471		$	6,670
Write-down of inventory related to polishing equipment		175			273			-			448			-
Intangible asset impairment		-			849			-			849			-
Non-GAAP gross profit	$	3,586		$	3,182		$	4,539		$	6,768		$	6,670

GAAP gross margin		43	%		28	%		40	%		36	%		42	%
Non-GAAP gross margin		45	%		43	%		40	%		44	%		42	%

AMTECH SYSTEMS, INC. (NASDAQ:ASYS) (Unaudited)

Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except per share data)

	Three Months Ended									Six Months Ended March 31,
	March 31, 2024			December 31, 2023			March 31, 2023			2024			2023
Amtech Systems, Inc. Operating Income (Loss):
GAAP operating income (loss)	$	1,363		$	(8,934	)	$	519		$	(7,571	)	$	(2,161	)
Gain on sale of fixed assets		(2,197	)		-			-			(2,197	)		-
Building move expense		231			-			-			231			-
Acquisition expenses		-			-			1,524			-			2,970
Write-down of inventory related to polishing equipment		175			273			-			448			-
Amortization of acquired intangible assets		154			287			945			441			945
Stock compensation expense		350			317			174			667			338
Goodwill impairment		-			6,370			-			6,370			-
Intangible asset impairment		-			1,279			-			1,279			-
Severance expense		112			198			-			310			400
Non-GAAP operating income (loss)	$	188		$	(210	)	$	3,162		$	(22	)	$	2,492

GAAP operating margin		5.4	%		(35.9	)%		1.6	%		(15.0	)%		(3.9	)%
Non-GAAP operating margin		0.7	%		(0.8	)%		9.5	%		(0.0	)%		4.5	%

Semiconductor Segment Operating Income:
GAAP operating income	$	896		$	1,081		$	2,950		$	1,977		$	3,819
Severance expense		-			111			-			111			-
Non-GAAP operating income	$	896		$	1,192		$	2,950		$	2,088		$	3,819

Material and Substrate Segment Operating Income (Loss):
GAAP operating income (loss)	$	900		$	(7,844	)	$	297		$	(6,943	)	$	930
Acquisition expenses		-			-			696			-			696
Write-down of inventory related to polishing equipment		175			273			-			448			-
Amortization of acquired intangible assets		154			287			945			441			945
Goodwill impairment		-			6,370			-			6,370			-
Intangible asset impairment		-			1,279			-			1,279			-
Severance expense		71			87			-			158			-
Non-GAAP operating income	$	1,300		$	452		$	1,938		$	1,753		$	2,571

AMTECH SYSTEMS, INC. (NASDAQ:ASYS) (Unaudited)

Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except per share data)

	Three Months Ended									Six Months Ended March 31,
	March 31, 2024			December 31, 2023			March 31, 2023			2024			2023
Consolidated Net Income (Loss):
GAAP net income (loss)	$	970		$	(9,358	)	$	3,204		$	(8,388	)	$	460
Gain on sale of fixed assets		(2,197	)		-			-			(2,197	)		-
Building move expense		231			-			-			231			-
Acquisition expenses		-			-			1,524			-			2,970
Write-down of inventory related to polishing equipment		175			273			-			448			-
Amortization of acquired intangible assets		154			287			945			441			945
Stock compensation expense		350			317			174			667			338
Goodwill impairment		-			6,370			-			6,370			-
Intangible asset impairment		-			1,279			-			1,279			-
Severance expense		112			198			-			310			400
Income tax provision related to acquisition		-			-			(3,164	)		-			(3,164	)
Non-GAAP net (loss) income	$	(205	)	$	(634	)	$	2,683		$	(839	)	$	1,949

Net (Loss) Income per Diluted Share:
GAAP net income (loss) per diluted share	$	0.07		$	(0.66	)	$	0.23		$	(0.59	)	$	0.03
Gain on sale of fixed assets		(0.15	)		-			-			(0.15	)		-
Building move expense		0.02			-			-			0.01			-
Acquisition expenses		-			-			0.11			-			0.21
Write-down of inventory related to polishing equipment		0.01			0.02			-			0.03			-
Amortization of acquired intangible assets		0.01			0.02			0.06			0.03			0.07
Stock compensation expense		0.02			0.02			0.01			0.05			0.02
Goodwill impairment		-			0.45			-			0.45			-
Intangible asset impairment		-			0.09			-			0.09			-
Severance expense		0.01			0.02			-			0.02			0.03
Income tax provision related to acquisition		-			-			(0.22	)		-			(0.22	)
Non-GAAP net (loss) income per diluted share	$	(0.01	)	$	(0.04	)	$	0.19		$	(0.06	)	$	0.14

AMTECH SYSTEMS, INC. (NASDAQ:ASYS) (Unaudited)

Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA (in thousands, except per share data)

	Three Months Ended March 31, 2024			Six Months Ended March 31, 2024
Amtech Systems, Inc. EBITDA:
GAAP net income (loss)	$	970		$	(8,388	)
Interest income		(14	)		(33	)
Interest expense		193			391
Income tax provision		223			281
Depreciation and amortization expense		720			1,572
EBITDA		2,092			(6,177	)

Gain on sale of fixed assets		(2,197	)		(2,197	)
Building move expense		231			231
Write-down of inventory related to polishing equipment		175			448
Stock compensation expense		350			667
Goodwill impairment		-			6,370
Intangible asset impairment		-			1,279
Severance expense		112			310
Adjusted EBITDA	$	763		$	931

View source version on businesswire.com: https://www.businesswire.com/news/home/20240508230607/en/