Amtech Systems NASDAQ: ASYS reported fiscal 2026 third-quarter revenue of $22.4 million, up 14% from the prior-year period and at the top end of its guidance range, as demand for artificial intelligence-related equipment supported growth in its Thermal Processing Solutions business.
Chairman and Chief Executive Officer Bob Daigle said revenue growth was partly offset by weaker sales in the company’s Semiconductor Fabrication Solutions segment. AI-related revenue in Thermal Processing Solutions increased about 120% year over year, while consolidated gross margin rose to 50% from 46.7% a year earlier.
The company reported GAAP net income of approximately $1.7 million, or $0.10 per diluted share, compared with approximately $100,000, or $0.01 per share, in the prior-year quarter. Adjusted EBITDA was $3.3 million, approaching 15% of sales, according to management.
AI Equipment Demand Drives Thermal Processing Growth
Thermal Processing Solutions revenue was approximately $17.7 million, an increase of nearly 25% year over year. Daigle said equipment used in AI-related applications represented more than 40% of segment revenue during the quarter, while parts and services revenue increased roughly 30% from the prior-year period.
The segment’s book-to-bill ratio approached 1.4, marking the third consecutive quarter in which it exceeded one. Chief Financial Officer Thomas Sabol said the company’s backlog is building for the fiscal fourth quarter and into the first and second quarters of fiscal 2027.
Management attributed demand to continued investments by semiconductor manufacturers, outsourced semiconductor assembly and test providers, and other participants in the AI supply chain. Daigle said advanced packaging remains important for increasingly complex semiconductor designs and that customers are seeking equipment with high yields, throughput and repeatable process performance.
During the quarter, Amtech received its first order for equipment used to manufacture cooling components for AI semiconductors. Daigle said the application is intended to remove heat directly from semiconductors in data centers and expands the company’s AI infrastructure exposure beyond advanced packaging and server board assembly.
He cautioned that it was too early to quantify the opportunity, saying its scale will depend in part on the success of the customer building a process around Amtech’s equipment.
Silicon Carbide Weakness Continues in Semiconductor Fabrication
Semiconductor Fabrication Solutions revenue totaled $4.6 million, down more than 13% year over year. The decline was driven primarily by weaker demand for PR Hoffman templates used in silicon carbide substrate manufacturing.
Daigle said the company does not expect a meaningful recovery in demand for its silicon carbide products due to what he described as structural changes in that market. In response, Amtech has de-emphasized silicon carbide and restructured the business accordingly.
The company is instead focusing its Semiconductor Fabrication Solutions strategy on underserved customers and applications, including specialty chemicals and parts and services for mature-node semiconductor manufacturing. At Entrepix, the parts and service business posted 19% year-over-year revenue growth during the quarter.
Management said it has built a pipeline for its specialty chemicals business and expects incremental improvement from those efforts in coming quarters, though Daigle noted that converting opportunities takes time.
Cash Position Bolstered by Equity Offering
Amtech ended the quarter with $83.1 million in unrestricted cash and cash equivalents and no debt. The cash balance included $56.5 million in net proceeds from an oversubscribed $60 million public offering of common stock completed in June.
Excluding the capital raise, Daigle said cash increased $2.2 million from the prior quarter and $11 million from the prior year. The company generated $1.1 million in operating cash flow during the quarter, supported by operational cash generation, working-capital management and customer collections.
The company added $1.7 million in inventory from the beginning of the fiscal year to support higher backlog and order flow in Thermal Processing Solutions. Amtech did not repurchase shares during the quarter under its $5 million stock repurchase program, and no shares have been repurchased since the program was established in December 2025.
Daigle said management raised capital opportunistically to strengthen the balance sheet ahead of potential acquisitions that could supplement organic growth. He said any acquisition would need to be synergistic and generate an attractive return on invested capital.
Leadership Transition and Outlook
Amtech also announced that Daigle will transition from chairman and chief executive officer to executive chairman after three years in the dual role. Guy Shechter, previously president and chief operating officer, will become chief executive officer and join the company’s board.
Shechter said he brings more than 25 years of leadership experience in semiconductor and advanced-packaging equipment industries, including prior senior roles at Yield Engineering Systems and Veeco Instruments. He said Amtech plans to strengthen its core businesses, broaden its technology portfolio and increase its involvement in customer manufacturing process steps tied to AI-driven semiconductor production.
For the fiscal fourth quarter ending Sept. 30, Amtech expects revenue of $22.5 million to $24 million and adjusted EBITDA margins in the low-to-mid-teens. Management expects AI-related Thermal Processing Solutions equipment to account for well over 40% of segment sales in the fourth quarter.
The company plans to introduce new equipment platforms and process capabilities for emerging semiconductor applications and higher-density packaging at the SEMICON Taiwan trade show in early September. Management said the products are expected to expand Amtech’s addressable market, though the pace of customer adoption will become clearer after their introduction.
About Amtech Systems (NASDAQ:ASYS)
Amtech Systems, Inc is a global supplier of capital equipment and aftermarket parts for the solar photovoltaic and semiconductor industries. The company's solutions support key steps in wafer and cell production, offering both new machinery and spares designed to optimize yield, throughput and energy efficiency. Amtech operates through two primary segments: solar manufacturing and semiconductor & electronics packaging.
In its solar segment, Amtech provides diffusion furnaces, epitaxy reactors and plasma-enhanced chemical vapor deposition (PECVD) systems used in high-volume solar cell fabrication.
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