Amtech delivered results in Q3 that were well received by the market, with management attributing the strong performance to persistent demand for its semiconductor equipment in artificial intelligence (AI) infrastructure and improved operational efficiency. CEO Robert Daigle noted that both Thermal Processing Solutions and Semiconductor Fabrication Solutions segments exceeded internal forecasts, underpinned by a focus on higher-margin products and a more flexible, semi-fabless manufacturing approach. He highlighted, “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-fabless manufacturing model and our focus on higher-margin products where we have competitive advantages.”
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Amtech (ASYS) Q3 CY2025 Highlights:
- Revenue: $19.84 million vs analyst estimates of $17 million (17.7% year-on-year decline, 16.7% beat)
- Adjusted EPS: $0.10 vs analyst estimates of $0.01 (significant beat)
- Adjusted EBITDA: $2.64 million vs analyst estimates of $200,000 (13.3% margin, significant beat)
- Revenue Guidance for Q4 CY2025 is $19 million at the midpoint, below analyst estimates of $19.5 million
- Operating Margin: 9.3%, up from 0.1% in the same quarter last year
- Inventory Days Outstanding: 155, down from 171 in the previous quarter
- Market Capitalization: $170.6 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Amtech’s Q3 Earnings Call
- Craig Irwin (ROTH Capital Partners) asked about AI customer visibility and backlog trends. CEO Robert Daigle said most equipment is shipped within the same quarter but noted increased visibility as some customers plan for future facility ramp-ups.
- Irwin (ROTH Capital Partners) also inquired about further cost savings from subletting facilities. Daigle estimated potential annualized savings of $700,000 to $1 million and clarified these are leased properties being sublet.
- Irwin (ROTH Capital Partners) questioned potential opportunities in silicon carbide substrates for AI chips. Daigle responded that such developments are possible but not imminent, with current relevance mainly in power electronics for data centers.
- Michael Legg (Ladenburg) sought details on recurring service opportunities in niche markets. Daigle explained the focus on medical and defense sectors for high-margin, recurring revenue using foundry services.
- Mark Miller (The Benchmark Company) asked about the margin profile of the backlog. Daigle confirmed that the backlog now consists mainly of higher-margin products after clearing out lower-quality orders over the past year.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be watching (1) signs of sustained AI-related equipment demand and customer order visibility, (2) progress in expanding recurring revenue streams from consumables and services, and (3) execution of further cost savings from facility subletting and operational efficiency efforts. The successful recruitment and onboarding of a new CFO will also be an important milestone to track.
Amtech currently trades at $11.60, up from $9.26 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).
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