[X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
AMTECH SYSTEMS, INC. |
(Exact name of registrant as specified in its charter) |
Arizona | 86-0411215 |
(State or other jurisdiction of | (I.R.S. Employer |
incorporation or organization) | Identification No.) |
131 South Clark Drive, Tempe, Arizona | 85281 |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer [ ] | Accelerated filer [X] |
Non-accelerated filer [ ] (Do not check if a smaller reporting company) | Smaller Reporting Company [ ] |
Emerging Growth Company [ ] |
Page | |
Item 1. | Condensed Consolidated Financial Statements |
June 30, 2017 | September 30, 2016 | |||||||
Assets | (Unaudited) | |||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 39,160 | $ | 27,655 | ||||
Restricted cash | 4,671 | 893 | ||||||
Accounts receivable | ||||||||
Trade (less allowance for doubtful accounts of $1,522 and $3,730 at June 30, 2017, and September 30, 2016, respectively) | 24,685 | 17,642 | ||||||
Unbilled and other | 12,157 | 8,634 | ||||||
Inventories | 23,186 | 23,223 | ||||||
Refundable income taxes | — | 260 | ||||||
Vendor deposits | 7,626 | 1,962 | ||||||
Other | 2,954 | 2,655 | ||||||
Total current assets | 114,439 | 82,924 | ||||||
Property, Plant and Equipment - Net | 15,080 | 15,960 | ||||||
Deferred Income Taxes - Long-Term | 200 | 200 | ||||||
Other Assets - Long-Term | 1,026 | 1,095 | ||||||
Investments | 2,831 | 3,032 | ||||||
Intangible Assets - Net | 3,643 | 4,100 | ||||||
Goodwill - Net | 11,220 | 11,119 | ||||||
Total Assets | $ | 148,439 | $ | 118,430 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 22,484 | $ | 15,397 | ||||
Current maturities of long-term debt | 817 | 1,134 | ||||||
Accrued compensation and related taxes | 6,450 | 5,710 | ||||||
Accrued warranty expense | 853 | 795 | ||||||
Deferred profit | 5,449 | 4,709 | ||||||
Customer deposits | 25,180 | 7,055 | ||||||
Other accrued liabilities | 1,863 | 2,164 | ||||||
Income taxes payable | 996 | 1,100 | ||||||
Total current liabilities | 64,092 | 38,064 | ||||||
Long-Term Debt | 9,732 | 9,097 | ||||||
Income Taxes Payable - Long-Term | 6,520 | 5,930 | ||||||
Total Liabilities | 80,344 | 53,091 | ||||||
Commitments and Contingencies | ||||||||
Stockholders’ 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: 13,328,656 and 13,179,355 at June 30, 2017 and September 30, 2016, respectively | 133 | 132 | ||||||
Additional paid-in capital | 113,501 | 111,631 | ||||||
Accumulated other comprehensive loss | (8,834 | ) | (8,876 | ) | ||||
Retained deficit | (34,018 | ) | (35,830 | ) | ||||
Total stockholders’ equity | 70,782 | 67,057 | ||||||
Noncontrolling interest | (2,687 | ) | (1,718 | ) | ||||
Total equity | 68,095 | 65,339 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 148,439 | $ | 118,430 |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues, net of returns and allowances | $ | 47,760 | $ | 33,342 | $ | 109,839 | $ | 77,899 | |||||||
Cost of sales | 32,258 | 23,711 | 77,499 | 56,312 | |||||||||||
Gross profit | 15,502 | 9,631 | 32,340 | 21,587 | |||||||||||
Selling, general and administrative | 10,108 | 8,665 | 25,366 | 23,709 | |||||||||||
Research, development and engineering | 1,423 | 1,568 | 4,586 | 6,015 | |||||||||||
Operating income (loss) | 3,971 | (602 | ) | 2,388 | (8,137 | ) | |||||||||
Gain on sale of other assets | — | — | — | 2,576 | |||||||||||
(Loss) income from equity method investment | (110 | ) | (444 | ) | (200 | ) | 227 | ||||||||
Interest expense and other income, net | (34 | ) | (265 | ) | (151 | ) | (434 | ) | |||||||
Income (loss) before income taxes | 3,827 | (1,311 | ) | 2,037 | (5,768 | ) | |||||||||
Income tax provision | 986 | 70 | 1,270 | 2,040 | |||||||||||
Net income (loss) | 2,841 | (1,381 | ) | 767 | (7,808 | ) | |||||||||
Add: net loss attributable to noncontrolling interest | 446 | 172 | 1,045 | 1,086 | |||||||||||
Net income (loss) attributable to Amtech Systems, Inc. | $ | 3,287 | $ | (1,209 | ) | $ | 1,812 | $ | (6,722 | ) | |||||
Income (Loss) Per Share: | |||||||||||||||
Basic income (loss) per share attributable to Amtech shareholders | $ | 0.25 | $ | (0.09 | ) | $ | 0.14 | $ | (0.51 | ) | |||||
Weighted average shares outstanding | 13,242 | 13,173 | 13,203 | 13,165 | |||||||||||
Diluted income (loss) per share attributable to Amtech shareholders | $ | 0.25 | $ | (0.09 | ) | $ | 0.14 | $ | (0.51 | ) | |||||
Weighted average shares outstanding | 13,398 | 13,173 | 13,288 | 13,165 |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income (loss) | $ | 2,841 | $ | (1,381 | ) | $ | 767 | $ | (7,808 | ) | |||||
Foreign currency translation adjustment | 740 | (299 | ) | 118 | (217 | ) | |||||||||
Comprehensive income (loss) | 3,581 | (1,680 | ) | 885 | (8,025 | ) | |||||||||
Comprehensive loss attributable to noncontrolling interest | 302 | 197 | 969 | 1,084 | |||||||||||
Comprehensive income (loss) attributable to Amtech Systems, Inc. | $ | 3,883 | $ | (1,483 | ) | $ | 1,854 | $ | (6,941 | ) |
Nine Months Ended June 30, | |||||||
2017 | 2016 | ||||||
Operating Activities | |||||||
Net income (loss) | $ | 767 | $ | (7,808 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 1,871 | 2,559 | |||||
Write-down of inventory | 448 | 116 | |||||
Capitalized interest | 307 | — | |||||
Deferred income taxes | (10 | ) | 6 | ||||
Non-cash share based compensation expense | 978 | 1,059 | |||||
Loss on sale of property, plant and equipment | 107 | — | |||||
Gain on sale of other assets | — | (2,576 | ) | ||||
Loss (gain) from equity method investment | 200 | (227 | ) | ||||
Reversal of allowance for doubtful accounts, net of provision | (898 | ) | (143 | ) | |||
Changes in operating assets and liabilities: | |||||||
Restricted cash | (3,576 | ) | 26 | ||||
Accounts receivable | (8,997 | ) | (3,538 | ) | |||
Inventories | (245 | ) | (4,794 | ) | |||
Accrued income taxes | 742 | 1,617 | |||||
Vendor deposits and other assets | (5,521 | ) | (644 | ) | |||
Accounts payable | 6,616 | 2,842 | |||||
Accrued liabilities and customer deposits | 17,526 | 2,695 | |||||
Deferred profit | 626 | (828 | ) | ||||
Net cash provided by (used in) operating activities | 10,941 | (9,638 | ) | ||||
Investing Activities | |||||||
Purchases of property, plant and equipment | (355 | ) | (442 | ) | |||
Proceeds from sale of property, plant and equipment | 39 | — | |||||
Proceeds from partial sale of subsidiary | — | 7,012 | |||||
Proceeds from sale of other assets | — | 4,884 | |||||
Net cash (used in) provided by investing activities | (316 | ) | 11,454 | ||||
Financing Activities | |||||||
Proceeds from the exercise of stock options | 894 | 34 | |||||
Payments on long-term debt | (485 | ) | (549 | ) | |||
Borrowings on long-term debt | 384 | 1,145 | |||||
Net cash provided by financing activities | 793 | 630 | |||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 87 | (8 | ) | ||||
Net Increase in Cash and Cash Equivalents | 11,505 | 2,438 | |||||
Cash and Cash Equivalents, Beginning of Period | 27,655 | 25,852 | |||||
Cash and Cash Equivalents, End of Period | $ | 39,160 | $ | 28,290 | |||
Supplemental Cash Flow Information: | |||||||
Cash paid for interest | $ | 202 | $ | 257 | |||
Income tax refunds | $ | 262 | $ | — | |||
Income tax payments | $ | 116 | $ | 112 | |||
Transfer capital equipment to inventory | $ | 22 | $ | 521 |
1. | Summary of Significant Accounting Policies |
1. | For our equipment business, transactions where legal title passes to the customer upon shipment, revenue is recognized upon shipment for those products where the customer’s defined specifications have been met with at least two similarly configured systems and processes for a comparably situated customer. Selling prices may include both equipment and services, i.e., installation and start-up services performed by our service technicians. The equipment and services are multiple deliverables. Certain equipment that has a positive track record of successful installation and customer acceptance are considered to be routine systems. Revenue recognition upon delivery of such equipment that has been routinely installed and accepted is equal to the total selling price minus the relative selling price of the undelivered services. |
2. | For products where the customer’s defined specifications have not been met with at least two similarly configured systems and processes, the revenue and directly related costs are deferred at the time of shipment and later recognized at the time of customer acceptance or when this criterion has been met. On occasion, we have experienced longer than expected delays in receiving cash from certain customers pending final installation or system acceptance. If some customers refuse to pay the final payment, or otherwise delay final acceptance or installation, the deferred revenue would not be recognized, adversely affecting future cash flows and operating results. |
3. | Sales of certain equipment, spare parts and consumables are recognized upon shipment, as there are no post shipment obligations other than standard warranties. |
4. | Service revenue is recognized upon performance of the services requested by the customer. Revenue related to service contracts is recognized ratably over the period of the contract or in accordance with the terms of the contract, which generally coincides with the performance of the services requested by the customer. |
June 30, 2017 | September 30, 2016 | ||||||
(dollars in thousands) | |||||||
Deferred revenues | $ | 10,024 | $ | 7,029 | |||
Deferred costs | 4,575 | 2,320 | |||||
Deferred profit | $ | 5,449 | $ | 4,709 |
June 30, 2017 | September 30, 2016 | ||||||
(dollars in thousands) | |||||||
Purchased parts and raw materials | $ | 13,587 | $ | 12,435 | |||
Work-in-process | 6,711 | 7,044 | |||||
Finished goods | 2,888 | 3,744 | |||||
$ | 23,186 | $ | 23,223 |
June 30, 2017 | September 30, 2016 | ||||||
(dollars in thousands) | |||||||
Land, building and leasehold improvements | $ | 18,343 | $ | 18,255 | |||
Equipment and machinery | 8,631 | 9,056 | |||||
Furniture and fixtures | 5,338 | 5,426 | |||||
32,312 | 32,737 | ||||||
Accumulated depreciation and amortization | (17,232 | ) | (16,777 | ) | |||
$ | 15,080 | $ | 15,960 |
Solar | Semiconductor | Polishing | Total | ||||||||||||
(dollars in thousands) | |||||||||||||||
Goodwill | $ | 6,597 | $ | 5,063 | $ | 728 | $ | 12,388 | |||||||
Accumulated impairment losses | (1,269 | ) | — | — | (1,269 | ) | |||||||||
Carrying value at September 30, 2016 | 5,328 | 5,063 | 728 | 11,119 | |||||||||||
Net foreign exchange differences | 101 | — | — | 101 | |||||||||||
Carrying value at June 30, 2017 | $ | 5,429 | $ | 5,063 | $ | 728 | $ | 11,220 | |||||||
Goodwill | $ | 6,726 | $ | 5,063 | $ | 728 | $ | 12,517 | |||||||
Accumulated impairment losses | (1,297 | ) | — | — | (1,297 | ) | |||||||||
Carrying value at June 30, 2017 | $ | 5,429 | $ | 5,063 | $ | 728 | $ | 11,220 |
Useful Life | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||
June 30, 2017 | September 30, 2016 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Customer lists | 6-10 years | $ | 2,446 | $ | (1,406 | ) | $ | 1,040 | $ | 2,432 | $ | (1,164 | ) | $ | 1,268 | ||||||
Technology | 5-10 years | 3,274 | (1,876 | ) | 1,398 | 3,214 | (1,678 | ) | 1,536 | ||||||||||||
Trade names | 10-15 years | 1,460 | (257 | ) | 1,203 | 1,455 | (219 | ) | 1,236 | ||||||||||||
Other | 2-10 years | 283 | (281 | ) | 2 | 277 | (217 | ) | 60 | ||||||||||||
$ | 7,463 | $ | (3,820 | ) | $ | 3,643 | $ | 7,378 | $ | (3,278 | ) | $ | 4,100 |
Nine Months Ended June 30, | |||||||
2017 | 2016 | ||||||
(dollars in thousands) | |||||||
Beginning balance | $ | 795 | $ | 793 | |||
Additions for warranties issued during the period | 899 | 691 | |||||
Reductions for payments made under the warranty | (269 | ) | (624 | ) | |||
Changes related to pre-existing warranties | (582 | ) | (121 | ) | |||
Currency translation adjustment | 10 | 6 | |||||
Ending balance | $ | 853 | $ | 745 |
Nine Months Ended June 30, | |||||||||||||||
2017 | 2016 | ||||||||||||||
Options | Weighted Average Exercise Price | Options | Weighted Average Exercise Price | ||||||||||||
Outstanding at beginning of period | 1,841,567 | $ | 8.15 | 1,627,477 | $ | 9.11 | |||||||||
Granted | 145,000 | 5.23 | 350,075 | 5.25 | |||||||||||
Exercised | (149,301 | ) | 5.99 | (9,846 | ) | 3.46 | |||||||||
Forfeited | (107,480 | ) | 12.68 | (129,430 | ) | 12.87 | |||||||||
Outstanding at end of period | 1,729,786 | $ | 7.82 | 1,838,276 | $ | 8.16 | |||||||||
Exercisable at end of period | 1,191,876 | $ | 8.38 | 1,128,320 | $ | 8.91 | |||||||||
Weighted average fair value of options granted during the period | $ | 3.04 | $ | 3.04 |
Nine Months Ended June 30, | |||
2017 | 2016 | ||
Risk free interest rate | 2% | 2% | |
Expected life | 6 years | 6 years | |
Dividend rate | 0% | 0% | |
Volatility | 63% | 63% |
Nine Months Ended June 30, | |||||||||||||
2017 | 2016 | ||||||||||||
Awards | Weighted Average Grant Date Fair Value | Awards | Weighted Average Grant Date Fair Value | ||||||||||
Beginning Outstanding | — | $ | — | 13,540 | $ | 7.98 | |||||||
Released | — | — | (13,540 | ) | 7.98 | ||||||||
Ending Outstanding | — | $ | — | — | $ | — |
Three Months Ended | Nine Months Ended | ||||||||||||||
June 30, 2017 | June 30, 2016 | June 30, 2017 | June 30, 2016 | ||||||||||||
(dollars in thousands) | |||||||||||||||
Research, development and engineering | $ | 1,774 | $ | 2,078 | $ | 5,547 | $ | 7,217 | |||||||
Grants earned | (351 | ) | (510 | ) | (961 | ) | (1,202 | ) | |||||||
Net research, development and engineering | $ | 1,423 | $ | 1,568 | $ | 4,586 | $ | 6,015 |
2. | Income Taxes |
3. | Earnings Per Share |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Basic Income (Loss) Per Share Computation | |||||||||||||||
Net income (loss) attributable to Amtech Systems, Inc. | $ | 3,287 | $ | (1,209 | ) | $ | 1,812 | $ | (6,722 | ) | |||||
Weighted Average Shares Outstanding: | |||||||||||||||
Common stock | 13,242 | 13,173 | 13,203 | 13,165 | |||||||||||
Basic income (loss) per share attributable to Amtech shareholders | $ | 0.25 | $ | (0.09 | ) | $ | 0.14 | $ | (0.51 | ) | |||||
Diluted Income (Loss) Per Share Computation | |||||||||||||||
Net income (loss) attributable to Amtech Systems, Inc. | $ | 3,287 | $ | (1,209 | ) | $ | 1,812 | $ | (6,722 | ) | |||||
Weighted Average Shares Outstanding: | |||||||||||||||
Common stock | 13,242 | 13,173 | 13,203 | 13,165 | |||||||||||
Common stock equivalents (1) | 156 | — | 85 | — | |||||||||||
Diluted shares | 13,398 | 13,173 | 13,288 | 13,165 | |||||||||||
Diluted income (loss) per share attributable to Amtech shareholders | $ | 0.25 | $ | (0.09 | ) | $ | 0.14 | $ | (0.51 | ) |
5. | Business Segment Information |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(dollars in thousands) | |||||||||||||||
Net Revenues: | |||||||||||||||
Solar * | $ | 28,981 | $ | 19,001 | $ | 56,960 | $ | 38,346 | |||||||
Semiconductor | 15,951 | 12,200 | 45,097 | 33,406 | |||||||||||
Polishing | 2,828 | 2,141 | 7,782 | 6,147 | |||||||||||
$ | 47,760 | $ | 33,342 | $ | 109,839 | $ | 77,899 | ||||||||
Operating income (loss): | |||||||||||||||
Solar * | $ | 2,991 | $ | (402 | ) | $ | 90 | $ | (4,532 | ) | |||||
Semiconductor | 2,250 | 1,056 | 6,013 | 777 | |||||||||||
Polishing | 738 | 343 | 1,705 | 899 | |||||||||||
Non-segment related | (2,008 | ) | (1,599 | ) | (5,420 | ) | (5,281 | ) | |||||||
$ | 3,971 | $ | (602 | ) | $ | 2,388 | $ | (8,137 | ) |
June 30, 2017 | September 30, 2016 | ||||||
(dollars in thousands) | |||||||
Identifiable Assets: | |||||||
Solar | $ | 69,935 | $ | 42,962 | |||
Semiconductor | 56,208 | 51,985 | |||||
Polishing | 4,510 | 4,819 | |||||
Non-segment related | 17,786 | 18,664 | |||||
$ | 148,439 | $ | 118,430 |
Nine Months Ended June 30, | |||||
2017 | 2016 | ||||
United States | 13 | % | 20 | % | |
Other | 1 | % | 2 | % | |
Total North America | 14 | % | 22 | % | |
China | 43 | % | 24 | % | |
Malaysia | 11 | % | 22 | % | |
Taiwan | 10 | % | 13 | % | |
Other | 8 | % | 6 | % | |
Total Asia | 72 | % | 65 | % | |
Germany | 5 | % | 2 | % | |
Other | 9 | % | 11 | % | |
Total Europe | 14 | % | 13 | % | |
100 | % | 100 | % |
Item 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | Overview |
• | Results of Operations |
• | Liquidity and Capital Resources |
• | Off-Balance Sheet Arrangements |
• | Contractual Obligations |
• | Critical Accounting Policies |
• | Impact of Recently Issued Accounting Pronouncements |
Three Months Ended | Nine Months Ended | ||||||||||
June 30, 2017 | June 30, 2016 | June 30, 2017 | June 30, 2016 | ||||||||
Net revenue | 100 | % | 100 | % | 100 | % | 100 | % | |||
Cost of sales | 68 | % | 71 | % | 71 | % | 72 | % | |||
Gross margin | 32 | % | 29 | % | 29 | % | 28 | % | |||
Selling, general and administrative | 21 | % | 26 | % | 23 | % | 30 | % | |||
Research, development and engineering | 3 | % | 5 | % | 4 | % | 8 | % | |||
Operating income (loss) | 8 | % | (2 | )% | 2 | % | (10 | )% | |||
Gain on sale of other assets | 0 | % | 0 | % | 0 | % | 3 | % | |||
Income (loss) from equity method investment | 0 | % | (1 | )% | 0 | % | 0 | % | |||
Interest expense and other income, net | 0 | % | (1 | )% | 0 | % | 0 | % | |||
Income (loss) before income taxes | 8 | % | (4 | )% | 2 | % | (7 | )% | |||
Income taxes provision | 2 | % | 0 | % | 1 | % | 3 | % | |||
Net income (loss) | 6 | % | (4 | )% | 1 | % | (10 | )% | |||
Add: net loss attributable to noncontrolling interest | 1 | % | 0 | % | 1 | % | 1 | % | |||
Net income (loss) attributable to Amtech Systems, Inc. | 7 | % | (4 | )% | 2 | % | (9 | )% | |||
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||||||
Segment | 2017 | 2016 | Incr (Decr) | % Change | 2017 | 2016 | Incr (Decr) | % Change | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||
Solar | $ | 28,981 | $ | 19,001 | $ | 9,980 | 53% | $ | 56,960 | $ | 38,346 | $ | 18,614 | 49% | |||||||||||||
Semiconductor | 15,951 | 12,200 | 3,751 | 31% | 45,097 | 33,406 | 11,691 | 35% | |||||||||||||||||||
Polishing | 2,828 | 2,141 | 687 | 32% | 7,782 | 6,147 | 1,635 | 27% | |||||||||||||||||||
Total net revenue | $ | 47,760 | $ | 33,342 | $ | 14,418 | 43% | $ | 109,839 | $ | 77,899 | $ | 31,940 | 41% |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||||||||||
Segment | 2017 | Gross Margin | 2016 | Gross Margin | Incr (Decr) | 2017 | Gross Margin | 2016 | Gross Margin | Incr (Decr) | |||||||||||||||||||||
Solar | $ | 7,948 | 27% | $ | 4,241 | 22% | $ | 3,707 | $ | 11,506 | 20% | $ | 7,409 | 19% | $ | 4,097 | |||||||||||||||
Semiconductor | 6,428 | 40% | 4,764 | 39% | 1,664 | 18,151 | 40% | 12,388 | 37% | 5,763 | |||||||||||||||||||||
Polishing | 1,126 | 40% | 626 | 29% | 500 | 2,683 | 34% | 1,790 | 29% | 893 | |||||||||||||||||||||
Total gross profit | $ | 15,502 | 32% | $ | 9,631 | 29% | $ | 5,871 | $ | 32,340 | 29% | $ | 21,587 | 28% | $ | 10,753 |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||||||||
2017 | 2016 | Incr. (Decr.) | % Change | 2017 | 2016 | Incr. (Decr.) | % Change | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Research, development and engineering | $ | 1,774 | $ | 2,078 | $ | (304 | ) | (15 | )% | $ | 5,547 | $ | 7,217 | $ | (1,670 | ) | (23 | )% | |||||||||||
Grants earned | (351 | ) | (510 | ) | $ | 159 | (31 | )% | (961 | ) | (1,202 | ) | $ | 241 | (20 | )% | |||||||||||||
Net research, development and engineering | $ | 1,423 | $ | 1,568 | $ | (145 | ) | (9 | )% | $ | 4,586 | $ | 6,015 | $ | (1,429 | ) | (24 | )% |
Item 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Item 4. | CONTROLS AND PROCEDURES |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
• | project management, including potentially lower-than-expected revenue due to project delays and cost over-runs; |
• | organizational stress/burden that could impact order fulfillment of other orders; |
• | project duration and customer acceptance; |
• | use of and reliance on subcontractors; |
• | supplier relationships and constraints; |
• | pricing and fulfillment; |
• | turnkey site conditions, such as readiness of customer facilities and access restrictions; and |
• | local regulations and policies. |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
31.1 | Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as Amended | * |
31.2 | Certification of Chief Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as Amended | * |
32.1 | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | * |
32.2 | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | * |
101.INS | XBRL Instance Document | * |
101.SCH | XBRL Taxonomy Extension Schema Document | * |
101.PRE | Taxonomy Presentation Linkbase Document | * |
101.CAL | XBRL Taxonomy Calculation Linkbase Document | * |
101.LAB | XBRL Taxonomy Label Linkbase Document | * |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | * |
* | Filed herewith. |
By | /s/ Robert T. Hass | Dated: | August 9, 2017 | |
Robert T. Hass | ||||
Vice President – Finance and Chief Financial Officer | ||||
(Principal Financial Officer, Principal Accounting Officer, and Duly Authorized Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Amtech Systems, Inc. (the “registrant”), |
2. | Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
By | /s/ Fokko Pentinga |
Fokko Pentinga | |
President and Chief Executive Officer | |
Amtech Systems, Inc. | |
Date: | August 9, 2017 |
1. | I have reviewed this Quarterly Report on Form 10-Q of Amtech Systems, Inc. (the “registrant”), |
2. | Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
By | /s/ Robert T. Hass |
Robert T. Hass | |
Vice President – Finance and Chief Financial Officer | |
Amtech Systems, Inc. | |
Date: | August 9, 2017 |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
By | /s/ Fokko Pentinga |
Fokko Pentinga | |
President and Chief Executive Officer | |
Amtech Systems, Inc. | |
Date: | August 9, 2017 |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
By | /s/ Robert T. Hass |
Robert T. Hass | |
Vice President – Finance and Chief Financial Officer | |
Amtech Systems, Inc. | |
Date: | August 9, 2017 |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Aug. 04, 2017 |
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Document and Entity Information [Abstract] | ||
Entity Registrant Name | AMTECH SYSTEMS INC | |
Entity Central Index Key | 0000720500 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 13,337,689 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Sep. 30, 2016 |
---|---|---|
Current Assets | ||
Allowance for doubtful accounts | $ 1,522 | $ 3,730 |
Stockholders' Equity | ||
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 13,328,656 | 13,179,355 |
Common stock, shares outstanding | 13,328,656 | 13,179,355 |
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
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Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 2,841 | $ (1,381) | $ 767 | $ (7,808) |
Foreign currency translation adjustment | 740 | (299) | 118 | (217) |
Comprehensive income (loss) | 3,581 | (1,680) | 885 | (8,025) |
Comprehensive loss attributable to noncontrolling interest | 302 | 197 | 969 | 1,084 |
Comprehensive income (loss) attributable to Amtech Systems, Inc. | $ 3,883 | $ (1,483) | $ 1,854 | $ (6,941) |
Summary of Significant Accounting Policies |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations and Basis of Presentation – Amtech Systems, Inc. (the “Company”, “Amtech”, “we”, “us” or “our”) is a global manufacturer of capital equipment, atomic layer deposition (“ALD”) including thermal processing, silicon wafer handling automation, and related consumables used in fabricating solar cells, LED and semiconductor devices. We sell these products to solar cell and semiconductor manufacturers worldwide, particularly in Asia, the United States and Europe. We serve niche markets in industries that are experiencing rapid technological advances and which historically have been very cyclical. Therefore, future profitability and growth depend on our ability to develop or acquire and market profitable new products and on our ability to adapt to cyclical trends. The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”), and consequently do not include all disclosures normally required by accounting principles generally accepted in the United States of America. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all adjustments necessary, all of which are of a normal and recurring nature, to present fairly our financial position, results of operations and cash flows. Certain information and note disclosures normally included in financial statements have been condensed or omitted pursuant to the rules and regulations of the SEC. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K, as amended, for the fiscal year ended September 30, 2016. The consolidated results of operations for the three and nine months ended June 30, 2017, are not necessarily indicative of the results to be expected for the full fiscal year. Principles of Consolidation – The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries and subsidiaries in which it has a controlling interest. The Company reports noncontrolling interests in consolidated entities as a component of equity separate from the Company’s equity. The equity method of accounting is used for investments over which the Company has a significant influence but not a controlling financial interest. All material intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates – The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition – We review product and service sales contracts with multiple deliverables to determine if separate units of accounting are present. Where separate units of accounting exist, revenue allocated to delivered items is the lower of the relative selling price of the delivered items in the sales arrangement or the portion of the selling price that is not contingent upon performance of the service. We recognize revenue when persuasive evidence of an arrangement exists; the product has been delivered and title has transferred, or services have been rendered; and the seller’s price to the buyer is fixed or determinable and collectability is reasonably assured. For us, this policy generally results in revenue recognition at the following points:
Where there have been installation and acceptance of more than two similarly configured items of equipment, but installation and acceptance have not become routine, recognition of revenue upon delivery of equipment is limited to the lesser of (i) the total selling price minus the relative selling price of the undelivered services or (ii) the non-contingent amount. Since we defer only those costs directly related to installation, or another unit of accounting not yet delivered, and the portion of the contract price is often considerably greater than the relative selling price of those items, our policy at times will result in deferral of profit that is disproportionate in relation to the deferred revenue. When this is the case, the gross margin recognized in one period will be lower and the gross margin reported in a subsequent period will improve.
Deferred Profit – Revenue deferred pursuant to our revenue recognition policy, net of the related deferred costs, if any, is recorded as deferred profit in current liabilities. The components of deferred profit are as follows:
Cash and Cash Equivalents – We consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents consist of amounts invested in U.S. money market funds and various U.S. and foreign bank operating and time deposit accounts. Restricted Cash – Restricted cash of $4.7 million and $0.9 million as of June 30, 2017, and September 30, 2016, respectively, includes collateral for bank guarantees required by certain customers from whom deposits have been received in advance of shipment. Restricted cash as of June 30, 2017 and September 30, 2016 includes $0.2 million relating our proportional responsibility, assumed in connection with the BTU International Inc. (“BTU”) acquisition, for clean-up costs at a Superfund site. Refer to Note 8 to Condensed Consolidated Financial Statements, Commitments and Contingencies, for more detail regarding our proportional liability related to the Superfund site. Accounts Receivable and Allowance for Doubtful Accounts – Accounts receivable are recorded at the gross sales price of products sold to customers on trade credit terms. Accounts receivable are considered past due when payment has not been received from the customer within the normal credit terms extended to that customer. A valuation allowance is established for accounts when collection is no longer probable. Accounts are written off against the allowance when the probability of collection is remote. Accounts Receivable - Unbilled and Other – Unbilled and other accounts receivable consist mainly of a contingent portion of the sales price that is not collectible until successful installation of the product. These amounts are generally billed upon final customer acceptance. Accounts receivable also includes Value-added tax receivable. Concentrations of Credit Risk – Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and trade accounts receivable. Our customers consist of solar cell and semiconductor manufacturers worldwide, as well as the lapping and polishing marketplace. Credit risk is managed by performing ongoing credit evaluations of our customers’ financial condition, by requiring significant deposits where appropriate, and by actively monitoring collections. Letters of credit are required of certain customers depending on the size of the order, type of customer or its creditworthiness, and country of domicile. Reserves for potentially uncollectible receivables are maintained based on an assessment of collectability. We maintain our cash, cash equivalents and restricted cash in multiple financial institutions. As of June 30, 2017, approximately 48% of our total cash balances are primarily invested in U.S. Treasuries or are in financial institutions insured by the Federal Deposit Insurance Corporation (“FDIC”). The remainder of our cash is maintained with financial institutions with reputable credit ratings in The Netherlands, France and China. As of June 30, 2017, one customer individually represented 32% of accounts receivable. As of September 30, 2016, one customer individually represented 11% of accounts receivable. Refer to Note 6 to Condensed Consolidated Financial Statements, Major Customers and Foreign Sales, for information regarding revenue in other countries subject to fluctuation in foreign currency exchange rates. Inventories – We value our inventory at the lower of cost or net realizable value. Costs for approximately 50% of inventory is valued on an average cost basis with the remainder determined on a first-in, first-out (FIFO) basis. The components of inventories are as follows:
Property, Plant and Equipment – Property, plant and equipment are recorded at cost. Maintenance and repairs are charged to expense as incurred. The cost of property retired or sold and the related accumulated depreciation are removed from the applicable accounts when disposition occurs and any gain or loss is recognized. Depreciation and amortization is computed using the straight-line method. Useful lives for equipment, machinery and leasehold improvements range from three to seven years; for furniture and fixtures from five to ten years; and for buildings from 20 to 30 years. The following is a summary of property, plant and equipment:
Goodwill – Goodwill and intangible assets with indefinite lives are not subject to amortization, but are tested for impairment when it is determined that it is more likely than not that the fair value of a reporting unit or the indefinite-lived intangible asset is less than its carrying amount, typically at the end of the fiscal year, or more frequently if circumstances dictate. The following is a summary of activity in goodwill:
Intangibles – Intangible assets are capitalized and amortized on a straight-line basis over their useful lives if the life is determinable. If the life is not determinable, amortization is not recorded. The following is a summary of intangibles:
Long-lived assets – Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Warranty – A limited warranty is provided free of charge, generally for periods of 12 to 24 months, for all purchases of our new products and systems. Accruals are recorded for estimated warranty costs at the time revenue is recognized. Estimates are based on past experience and take into account the nature of the products under warranty. The following is a summary of activity in accrued warranty expense:
Stock-Based Compensation – We measure compensation costs relating to share-based payment transactions based upon the grant date fair value of the award. Those costs are recognized as expense over the requisite service period, which is generally the vesting period. The benefits of tax deductions in excess of recognized compensation cost are credited to additional paid-in capital and reported as cash flow from financing activities. Stock-based compensation expense of $0.4 million in each of the three months ended June 30, 2017 and 2016, and $1.0 million and $1.1 million for the nine months ended June 30, 2017 and 2016, respectively, is included in selling, general and administrative expenses. Stock options issued under the terms of our option plans have, or will have, an exercise price equal to the fair market value of the common stock at the close of trading on the NASDAQ Stock Market the trading day prior to the date of the option grant and expire no later than 10 years from the date of grant, with the most recent option grant expiring in 2027. Options issued by us generally vest over six months to four years, subject to our board of directors’ (the “Board”) discretion pursuant to our share-based compensation plans. Stock option transactions and the options outstanding are summarized as follows:
The fair value of options was estimated at the applicable grant date using the Black-Scholes option pricing model with the following assumptions:
To estimate expected lives for this valuation, it was assumed that options will be exercised at varying schedules after becoming fully vested. Forfeitures have been estimated at the time of grant and will be revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based upon historical experience. Fair value computations are highly sensitive to the volatility factor assumed; the greater the volatility, the higher the computed fair value of the options granted. We use historical stock prices to determine the volatility factor. We award restricted shares under our existing share-based compensation plans. Our restricted share awards vested in equal annual installments over a two to four year period. The total value of these awards is expensed on a ratable basis over the service period of the employees receiving the grants. The “service period” is the time during which the employees receiving grants must remain employees for the shares granted to fully vest. Restricted stock transactions and awards outstanding are summarized as follows:
Fair Value of Financial Instruments – In accordance with the requirements of the Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”), we group our financial assets and liabilities measured at fair value on a recurring basis in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1 - Valuation is based upon quoted market price for identical instruments traded in active markets. Level 2 - Valuation is based upon quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 - Valuation is generated from model-based techniques that use significant assumptions not observable in the market. Valuation techniques include use of discounted cash flow models and similar techniques. In accordance with the requirements of the Fair Value Measurements and Disclosures Topic of the FASB ASC, it is our policy to use observable inputs whenever reasonably practicable in order to minimize the use of unobservable inputs when developing fair value measurements. When available, we use quoted market prices to measure fair value. If market prices are not available, the fair value measurement is based on models that use primarily market based parameters including interest rate yield curves, option volatilities and currency rates. In certain cases, where market rate assumptions are not available, we are required to make judgments about assumptions market participants would use to estimate the fair value of a financial instrument. Changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results of current or future values. Cash, Cash Equivalents and Restricted Cash – Included in Cash and Cash Equivalents and Restricted Cash in the Condensed Consolidated Balance Sheets are money market funds invested in treasury bills, notes and other direct obligations of the U.S. Treasury or are in financial institutions insured by the FDIC and foreign bank operating and time deposit accounts. The fair value of this cash equivalent is based on Level 1 inputs in the fair value hierarchy. Receivables and Payables – The recorded amounts of these financial instruments, including accounts receivable and accounts payable, approximate their fair value because of the short maturities of these instruments. If measured at fair value in the financial statements, these financial instruments would be classified as Level 3 in the fair value hierarchy. Debt – The recorded amounts of these financial instruments, including long-term debt and current maturities of long-term debt, approximate fair value and are considered Level 2 in the fair value hierarchy. Pensions and Other Benefit Plans – We have retirement plans covering substantially all employees. The principal plans are the multiemployer defined benefit pension plans of our operations in The Netherlands and France and the plan for hourly union employees in Pennsylvania. The multiemployer plans in the United States and France are insignificant to our results of operations and financial condition. Our defined contribution plans cover substantially all of the employees in the United States. We match certain employee funds on a discretionary basis while certain subsidiaries require a minimum match to maintain their safe harbor status. Shipping Expense – Shipping expenses of $0.5 million and $0.8 million for the three months ended June 30, 2017 and 2016, respectively, and $1.4 million and $1.6 million for the nine months ended June 30, 2017 and 2016, respectively, are included in selling, general and administrative expenses. Research, Development and Engineering Expense – Research, development and engineering expenses consist of the cost of employees, consultants and contractors who design, engineer and develop new products and processes; materials and supplies used in those activities; and product prototyping. We receive reimbursements through governmental research and development grants which are netted against these expenses when certain conditions have been met. The table below shows gross research and development expenses and grants earned:
Impact of Recently Issued Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment”. The guidance is intended to simplify the subsequent accounting for goodwill acquired in a business combination. Prior guidance required utilizing a two-step process to review goodwill for impairment. A second step was required if there was an indication that an impairment may exist, and the second step required calculating the potential impairment by comparing the implied fair value of the reporting unit’s goodwill (as if purchase accounting were performed on the testing date) with the carrying amount of the goodwill. The new guidance eliminates the second step from the goodwill impairment test. Under the new guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and then recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value (although the loss should not exceed the total amount of goodwill allocated to the reporting unit). The guidance requires prospective adoption and will be effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption of this guidance is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We plan to early adopt this guidance in the fourth quarter of fiscal 2017, or with any interim impairment tests during fiscal 2017, and do not expect it to have a significant impact on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows: Restricted Cash”. The amendments address diversity in practice that exists in the classification and presentation of changes in restricted cash and require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This ASU is effective retrospectively for fiscal years and interim periods within those years beginning after December 15, 2017. We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, “Income Taxes: Intra-Entity Transfers of Assets Other than Inventory”. The amendments in this ASU remove the prohibition against the recognition of current and deferred income tax effects of intra-entity transfers of assets other than inventory until the asset has been sold to an outside party. The ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2017. We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments”. These amendments provide cash flow statement classification guidance for: 1. Debt Prepayment or Debt Extinguishment Costs; 2. Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; 3. Contingent Consideration Payments Made after a Business Combination; 4. Proceeds from the Settlement of Insurance Claims; 5. Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned Life Insurance Policies; 6. Distributions Received from Equity Method Investees; 7. Beneficial Interests in Securitization Transactions; and 8. Separately Identifiable Cash Flows and Application of the Predominance Principle. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early application is permitted, including adoption in an interim period. We are currently in the process of evaluating the impact of the adoption on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments”. ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. The new standard applies to financial assets measured at amortized cost basis, including receivables that result from revenue transactions and held-to-maturity debt securities. The new guidance will be effective for us starting in the first quarter of fiscal 2021. Early adoption is permitted starting in the first quarter of fiscal 2020. We are in the process of determining the effects the adoption will have on our consolidated financial statements as well as whether to adopt the new guidance early. In May 2014, the FASB issued ASU No. 2014-09 regarding ASC Topic 606, “Revenue from Contracts with Customers”. ASU 2014-09 provides principles for recognizing revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14 to defer the effective date by one year with early adoption permitted as of the original effective date. ASU 2014-09 will be effective for Amtech’s fiscal year beginning October 1, 2018 unless we elect the earlier date of October 1, 2017. In addition, the FASB issued ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 in March 2016, April 2016, May 2016 and December 2016, respectively, to help provide interpretive clarifications on the new guidance in ASC Topic 606. We have determined that we will not early adopt the standard and are currently assessing the impact that adopting this new accounting standard will have on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718)”. ASU 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The amendments in this ASU are effective for annual periods beginning after December 15, 2016 and for the interim periods therein. We are currently assessing the impact that adopting this new accounting standard will have on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”, which requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use-assets. ASU 2016-02 also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. This ASU is effective for fiscal years beginning after December 15, 2018 and early application is permitted. We are currently in the process of evaluating the impact of this standard on our consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities”, which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017 and early adoption is not permitted. We are currently evaluating the impact that the standard will have on our consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”. This ASU requires entities to classify deferred tax liabilities and assets as noncurrent in a classified statement of financial position. This ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for all entities as of the beginning of an interim or annual reporting period. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory”. This ASU simplifies the measurement of inventory by requiring certain inventory to be measured at the lower of cost or net realizable value. The amendments in this ASU are effective for fiscal years beginning after December 15, 2016 and for interim periods therein. We do not expect adoption of this ASU to have a material impact on our consolidated financial position and results of operations. |
Income Taxes |
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Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The quarterly income tax provision is calculated using an estimated annual effective tax rate, based upon expected annual income, permanent items, statutory rates and planned tax strategies in the various jurisdictions in which we operate. However, losses in certain jurisdictions and discrete items are treated separately. Deferred tax assets and liabilities reflect the tax effects of temporary differences between the carrying value of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. We record a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of a deferred tax asset will not be realized. Our expectations regarding realization of our deferred tax assets is based upon the weight of all available evidence, including such factors as our recent earnings history, expected future taxable income and available tax planning strategies. In prior periods, we established valuation allowances on substantially all net deferred tax assets, after considering all of the available objective evidence, both positive and negative, historical and prospective, with greater weight given to historical evidence, and determined it is not more likely than not that these assets will be realized. As of June 30, 2017, we reversed a portion of the valuation allowance related to net operating loss carryforwards which we have determined will be utilized against net operating income in the current year. We classify all of our uncertain tax positions as income taxes payable long-term. At June 30, 2017 and September 30, 2016, the total amount of unrecognized tax benefits was approximately $3.9 million. If recognized, these amounts would favorably impact the effective tax rate. Income taxes payable long-term primarily includes, among other items, withholding taxes that are not due until the related intercompany service fees are paid. We classify interest and penalties related to unrecognized tax benefits as income tax expense. As of June 30, 2017 and September 30, 2016, we had an accrual for potential interest and penalties of approximately $2.6 million and $2.3 million, respectively, classified with income taxes payable long-term. We and one or more of our subsidiaries file income tax returns in The Netherlands, France, China, Singapore, Malaysia, Hong Kong, and Germany, as well as in the U.S. and various states in the U.S. The Company and its subsidiaries have a number of open tax years dictated by statute in each of their respective taxing jurisdictions, but generally it is from 3 to 5 years in the jurisdictions in which we file tax returns. |
Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similarly to basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if potentially dilutive common shares had been issued. In the case of a net loss, diluted earnings per share is calculated in the same manner as basic EPS. For the three and nine months ended June 30, 2017, options for 1,152,000 and 1,649,000 weighted average shares, respectively, are excluded from the diluted EPS calculations because they are anti-dilutive. For the three and nine months ended June 30, 2016, options for 1,840,000 weighted average shares were excluded from the diluted EPS calculations because they were anti-dilutive. These shares could be dilutive in the future. The following table outlines basic and diluted EPS:
(1) The number of common stock equivalents is calculated using the treasury method and the average market price during the period. |
Stockholders' Equity |
9 Months Ended |
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Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Shareholder Rights Plan – On December 15, 2008, Amtech and Computershare Trust Company, N.A., as Rights Agent (the “Rights Agent”), entered into an Amended and Restated Rights Agreement (the “Restated Rights Agreement”) which amended and restated the terms governing the previously authorized shareholder rights (each a “Right”) to purchase fractional shares of our Series A Participating Preferred Stock (“Series A Preferred”) currently attached to each of our outstanding Common Shares, par value $0.01 per share (“Common Shares”). As amended, each Right entitles the registered holder to purchase from us one one-thousandth of a share of Series A Preferred at an exercise price of $51.60 (the “Exercise Price”), subject to adjustment. The Rights will expire 10 years after issuance and will be exercisable if (a) a person or group becomes the beneficial owner of 15% or more of our common stock or (b) a person or group commences a tender or exchange offer that would result in the offeror beneficially owning 15% or more of our common stock. The Final Expiration Date (as defined in the Restated Rights Agreement) is December 14, 2018. On October 1, 2015, we entered into a Second Amended and Restated Rights Agreement (the “Second Restated Rights Agreement”) with the Rights Agent, which expands the definition of Exempted Person to include any person that the Board, in its sole and absolute discretion, exempts from becoming an Acquiring Person under the Second Restated Rights Agreement. A person deemed an Exempted Person under the Second Restated Rights Agreement cannot trigger any of the Rights provided therein so long as such Exempted Person complies with the terms and conditions by which the Board approved such exemption from the Restated Rights Agreement. As previously disclosed, on October 8, 2015, we entered into a Letter Agreement (the “Agreement”) by and between Amtech and certain shareholders of Amtech who jointly file (the “Joint Filers”) under Section 13 of the Securities Exchange Act of 1934, as amended. One of the Joint Filers became a member of our Board after the Agreement was approved by the Board. The Agreement permits the Joint Filers, pursuant to the Second Restated Rights Agreement, to individually acquire shares of common stock of Amtech that would, in the aggregate, bring the Joint Filers’ collective ownership to no more than 19.9% of our issued and outstanding common stock at any time. In the event the Joint Filers’ collective ownership at any time exceeds 19.9% of our issued and outstanding shares of common stock, we are entitled to specific performance and all other remedies entitled to us at law or equity, among others. Our Board approved the Agreement and transactions contemplated thereunder, and has the sole authority to terminate the Agreement at any time. |
Business Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Information | Business Segment Information Our three reportable segments are as follows: Solar – We are a leading supplier of thermal processing systems, ALD, related automation, parts and services, to the solar/photovoltaic industry and also offer PECVD (plasma-enhanced chemical vapor deposition) equipment to the global solar market. Semiconductor – In our Semiconductor segment, we design, manufacture, sell and service thermal processing equipment and related controls and parts for use by leading semiconductor manufacturers, and in electronics, automotive and other industries. Polishing – In our Polishing segment, we produce consumables and machinery for lapping (fine abrading) and polishing of materials, such as sapphire substrates, optical components, silicon wafers, numerous types of crystal materials, ceramics and metal components. Information concerning our business segments is as follows:
* The revenue and operating income of business units included in the Solar segment include some sales of equipment and parts to the semiconductor, silicon wafer and MEMS industries, comprising less than 25% of the Solar segment revenue.
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Major Customers and Foreign Sales |
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Major Customers And Foreign Sales | Major Customers and Foreign Sales During the nine months ended June 30, 2017, two customers individually represented 18% and 11% of our net revenues. No other customer represented greater than 10% of net revenues. During the nine months ended June 30, 2016, one customer represented 14% of our net revenues. We have operations in The Netherlands, United States, France, and China. Our net revenues were to customers in the following geographic regions:
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Long-term Debt |
9 Months Ended |
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Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-Term Debt We hold debt in the form of a mortgage note secured by our real property in Billerica, Massachusetts that has a remaining balance of $6.3 million as of June 30, 2017. The debt has an interest rate of 4.11% through September 26, 2021, at which time the interest rate will be adjusted to a per annum fixed rate equal to the aggregate of the Federal Home Loan Board Five Year Classic Advance Rate plus two hundred forty basis points. The maturity date of the debt is September 26, 2023. SoLayTec B.V. (“SoLayTec”), a division of our Solar segment, holds long-term debt with a remaining balance of $4.2 million. During the nine months ended June 30, 2017, SoLayTec borrowed approximately $0.4 million. The debt has interest rates ranging from 4.5% to 12.5% and maturity dates ranging from fiscal 2017 to fiscal 2021. See Note 11 for details on subsequent events related to outstanding SoLayTec loans payable. |
Commitments and Contingencies |
9 Months Ended |
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Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations – As of June 30, 2017, we had unrecorded purchase obligations in the amount of $44.5 million compared to $11.3 million as of September 30, 2016. These purchase obligations consist of outstanding purchase orders for goods and services. While the amount represents purchase agreements, the actual amounts to be paid may be less if any agreements are renegotiated, canceled or terminated. Development Projects – In fiscal 2014, our wholly owned subsidiary, Tempress Systems, Inc. (“Tempress”), entered into an agreement with the Energy Research Centre of the Netherlands (“ECN”), a Netherlands government-sponsored research institute, for a joint research and development project. Under the terms of the agreement, Tempress sold an ion implanter (“Equipment”) to ECN for $1.4 million. Both Tempress and ECN are performing research and development projects utilizing the Equipment at the ECN facilities. Each party to the agreement will have 100% rights to the results of the projects developed separately by the individual parties. Any results co-developed will be jointly owned. Tempress met its requirement to contribute $1.4 million to the project in the form of installation of the equipment, acceptance testing, project meeting attendance, training, parts, and service, including keeping the equipment in good condition and repair for the first two years of the agreement prior to fiscal 2017. EPA Accrual – As a result of the BTU acquisition, we assumed BTU’s proportional responsibility for clean-up costs at a Superfund site. As an equipment manufacturer, BTU generated and disposed of small quantities of solid waste that were considered hazardous under Environment Protection Agency (“EPA”) regulations. Because BTU historically used a waste disposal firm that disposed of the solid waste at a site that the EPA designated as a Superfund site, BTU was named by the EPA as one of the entities responsible for a portion of the expected clean-up costs. Based on our proportional responsibility, as negotiated with and agreed to by the EPA, our liability related to this matter is less than $0.1 million, which is included in Other Accrued Liabilities on the Condensed Consolidated Balance Sheets as of June 30, 2017 and September 30, 2016. In accordance with the agreement, we established a letter of credit for $0.2 million to the benefit of the EPA for potential cash payments as settlements for our proportional liability. Legal Proceedings – The Company and its subsidiaries are defendants from time to time in actions for matters arising out of their business operations. We do not believe that any matters or proceedings presently pending will have a material adverse effect on our consolidated financial position, results of operations or liquidity. As previously disclosed in our filings with the SEC, shortly after we entered into the merger agreement with BTU, two separate putative stockholder class action complaints (together, the “Stockholder Actions”) were filed in the Court of Chancery of the State of Delaware (the “Delaware Court”). The first was filed on November 4, 2014 and the second on November 17, 2014, on behalf of BTU’s public stockholders, against BTU, members of the BTU board of directors, Amtech and the special purpose merger subsidiary. The Stockholder Actions were consolidated on December 4, 2014. The complaints generally alleged that, in connection with entering into the merger agreement, the BTU board of directors breached certain fiduciary duties owed to BTU’s stockholders. The complaints sought various forms of declaratory and injunctive relief, as well as compensatory damages. On February 18, 2016, the Delaware Court entered the Order approving the Amended Stipulation of Settlement. As a result, the Released Claims were dismissed with prejudice and without any admission of wrongdoing by any of the parties to the Stockholder Actions. Pursuant to the Amended Stipulation of Settlement, BTU, its insurer(s), or its successor(s) in interest are responsible for payment of fees and expenses in the amount of $325,000 which were paid in full on April 1, 2016. The Released Claims are limited solely to claims related to any disclosures (or lack thereof) to BTU’s stockholders concerning the merger and any fiduciary claims concerning the decision to enter into the merger. While we are currently unaware of any other pending or threatened litigation related to additional claims arising from the Stockholder Actions, any future claims are uncertain, so additional harm could potentially result from this litigation, which may cause us to incur substantial costs and divert management’s attention from operational matters. |
Investments |
9 Months Ended |
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Jun. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments Our long-term investment consists of a 15% interest in Kingstone Technology Hong Kong Limited (“Kingstone”). We recognize our portion of net income or losses on a one-quarter lag. The carrying value of the equity method investment in Kingstone was $2.8 million and $3.0 million as of June 30, 2017 and September 30, 2016, respectively. For the three and nine months ended June 30, 2017 we recognized investment loss of $0.1 million and $0.2 million, respectively. For the three and nine months ended June 30, 2016, we recognized investment loss of $0.4 million and investment income of $0.2 million, respectively. |
Related Party Transactions |
9 Months Ended |
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Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions As of June 30, 2017, SoLayTec has borrowed approximately $1.8 million from its shareholder, TNO Technostarters B.V. The loans have varying interest rates from 9.5% to 12.5% and mature in 2021. See Note 11 for details on subsequent events related to outstanding SoLayTec loans payable. |
Subsequent Event |
9 Months Ended |
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Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On July 31, 2017, Tempress entered into an Exit Agreement (the “Agreement”) with the two minority owners of SoLayTec (“Minority Owners”) to acquire their shares of SoLayTec, resulting in Tempress becoming the sole owner of SoLayTec. The terms of the Agreement, which is effective as of July 1, 2017, state that the Minority Owners will sell all of their SoLayTec shares to Tempress for a nominal fee and waive all right to future repayment of principal and interest on loans payable to the Minority Owners. As a result of the effectiveness of the Agreement, SoLayTec will have no further liability under the loans. The principal balance of these loans at June 30, 2017 is approximately $2.3 million, which management expects to record as a capital contribution, with no impact on the Consolidated Statement of Operations. |
Summary of Significant Accounting Policies (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation – Amtech Systems, Inc. (the “Company”, “Amtech”, “we”, “us” or “our”) is a global manufacturer of capital equipment, atomic layer deposition (“ALD”) including thermal processing, silicon wafer handling automation, and related consumables used in fabricating solar cells, LED and semiconductor devices. We sell these products to solar cell and semiconductor manufacturers worldwide, particularly in Asia, the United States and Europe. We serve niche markets in industries that are experiencing rapid technological advances and which historically have been very cyclical. Therefore, future profitability and growth depend on our ability to develop or acquire and market profitable new products and on our ability to adapt to cyclical trends. The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”), and consequently do not include all disclosures normally required by accounting principles generally accepted in the United States of America. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all adjustments necessary, all of which are of a normal and recurring nature, to present fairly our financial position, results of operations and cash flows. Certain information and note disclosures normally included in financial statements have been condensed or omitted pursuant to the rules and regulations of the SEC. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K, as amended, for the fiscal year ended September 30, 2016. The consolidated results of operations for the three and nine months ended June 30, 2017, are not necessarily indicative of the results to be expected for the full fiscal year. |
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Principles of Consolidation | Principles of Consolidation – The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries and subsidiaries in which it has a controlling interest. The Company reports noncontrolling interests in consolidated entities as a component of equity separate from the Company’s equity. The equity method of accounting is used for investments over which the Company has a significant influence but not a controlling financial interest. All material intercompany accounts and transactions have been eliminated in consolidation. |
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Use of Estimates | Use of Estimates – The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
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Revenue Recognition | Revenue Recognition – We review product and service sales contracts with multiple deliverables to determine if separate units of accounting are present. Where separate units of accounting exist, revenue allocated to delivered items is the lower of the relative selling price of the delivered items in the sales arrangement or the portion of the selling price that is not contingent upon performance of the service. We recognize revenue when persuasive evidence of an arrangement exists; the product has been delivered and title has transferred, or services have been rendered; and the seller’s price to the buyer is fixed or determinable and collectability is reasonably assured. For us, this policy generally results in revenue recognition at the following points:
Where there have been installation and acceptance of more than two similarly configured items of equipment, but installation and acceptance have not become routine, recognition of revenue upon delivery of equipment is limited to the lesser of (i) the total selling price minus the relative selling price of the undelivered services or (ii) the non-contingent amount. Since we defer only those costs directly related to installation, or another unit of accounting not yet delivered, and the portion of the contract price is often considerably greater than the relative selling price of those items, our policy at times will result in deferral of profit that is disproportionate in relation to the deferred revenue. When this is the case, the gross margin recognized in one period will be lower and the gross margin reported in a subsequent period will improve.
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Deferred Profit | Deferred Profit – Revenue deferred pursuant to our revenue recognition policy, net of the related deferred costs, if any, is recorded as deferred profit in current liabilities. |
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Cash Equivalents | Cash and Cash Equivalents – We consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents consist of amounts invested in U.S. money market funds and various U.S. and foreign bank operating and time deposit accounts. |
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Restricted Cash | Restricted Cash – Restricted cash of $4.7 million and $0.9 million as of June 30, 2017, and September 30, 2016, respectively, includes collateral for bank guarantees required by certain customers from whom deposits have been received in advance of shipment. Restricted cash as of June 30, 2017 and September 30, 2016 includes $0.2 million relating our proportional responsibility, assumed in connection with the BTU International Inc. (“BTU”) acquisition, for clean-up costs at a Superfund site. |
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Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts – Accounts receivable are recorded at the gross sales price of products sold to customers on trade credit terms. Accounts receivable are considered past due when payment has not been received from the customer within the normal credit terms extended to that customer. A valuation allowance is established for accounts when collection is no longer probable. Accounts are written off against the allowance when the probability of collection is remote. Accounts Receivable - Unbilled and Other – Unbilled and other accounts receivable consist mainly of a contingent portion of the sales price that is not collectible until successful installation of the product. These amounts are generally billed upon final customer acceptance. Accounts receivable also includes Value-added tax receivable. |
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Concentrations of Credit Risk | Concentrations of Credit Risk – Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and trade accounts receivable. Our customers consist of solar cell and semiconductor manufacturers worldwide, as well as the lapping and polishing marketplace. Credit risk is managed by performing ongoing credit evaluations of our customers’ financial condition, by requiring significant deposits where appropriate, and by actively monitoring collections. Letters of credit are required of certain customers depending on the size of the order, type of customer or its creditworthiness, and country of domicile. Reserves for potentially uncollectible receivables are maintained based on an assessment of collectability. We maintain our cash, cash equivalents and restricted cash in multiple financial institutions. As of June 30, 2017, approximately 48% of our total cash balances are primarily invested in U.S. Treasuries or are in financial institutions insured by the Federal Deposit Insurance Corporation (“FDIC”). The remainder of our cash is maintained with financial institutions with reputable credit ratings in The Netherlands, France and China. |
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Inventories | Inventories – We value our inventory at the lower of cost or net realizable value. Costs for approximately 50% of inventory is valued on an average cost basis with the remainder determined on a first-in, first-out (FIFO) basis. |
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Property, Plant and Equipment | Property, Plant and Equipment – Property, plant and equipment are recorded at cost. Maintenance and repairs are charged to expense as incurred. The cost of property retired or sold and the related accumulated depreciation are removed from the applicable accounts when disposition occurs and any gain or loss is recognized. Depreciation and amortization is computed using the straight-line method. Useful lives for equipment, machinery and leasehold improvements range from three to seven years; for furniture and fixtures from five to ten years; and for buildings from 20 to 30 years. |
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Goodwill | Goodwill – Goodwill and intangible assets with indefinite lives are not subject to amortization, but are tested for impairment when it is determined that it is more likely than not that the fair value of a reporting unit or the indefinite-lived intangible asset is less than its carrying amount, typically at the end of the fiscal year, or more frequently if circumstances dictate. |
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Intangibles | Intangibles – Intangible assets are capitalized and amortized on a straight-line basis over their useful lives if the life is determinable. If the life is not determinable, amortization is not recorded. |
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Long-lived Assets | Long-lived assets – Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. |
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Warranty | Warranty – A limited warranty is provided free of charge, generally for periods of 12 to 24 months, for all purchases of our new products and systems. Accruals are recorded for estimated warranty costs at the time revenue is recognized. Estimates are based on past experience and take into account the nature of the products under warranty. |
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Stock-Based Compensation | Stock-Based Compensation – We measure compensation costs relating to share-based payment transactions based upon the grant date fair value of the award. Those costs are recognized as expense over the requisite service period, which is generally the vesting period. The benefits of tax deductions in excess of recognized compensation cost are credited to additional paid-in capital and reported as cash flow from financing activities. Stock-based compensation expense of $0.4 million in each of the three months ended June 30, 2017 and 2016, and $1.0 million and $1.1 million for the nine months ended June 30, 2017 and 2016, respectively, is included in selling, general and administrative expenses. Stock options issued under the terms of our option plans have, or will have, an exercise price equal to the fair market value of the common stock at the close of trading on the NASDAQ Stock Market the trading day prior to the date of the option grant and expire no later than 10 years from the date of grant, with the most recent option grant expiring in 2027. Options issued by us generally vest over six months to four years, subject to our board of directors’ (the “Board”) discretion pursuant to our share-based compensation plans. Stock option transactions and the options outstanding are summarized as follows:
The fair value of options was estimated at the applicable grant date using the Black-Scholes option pricing model with the following assumptions:
To estimate expected lives for this valuation, it was assumed that options will be exercised at varying schedules after becoming fully vested. Forfeitures have been estimated at the time of grant and will be revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based upon historical experience. Fair value computations are highly sensitive to the volatility factor assumed; the greater the volatility, the higher the computed fair value of the options granted. We use historical stock prices to determine the volatility factor. We award restricted shares under our existing share-based compensation plans. Our restricted share awards vested in equal annual installments over a two to four year period. The total value of these awards is expensed on a ratable basis over the service period of the employees receiving the grants. The “service period” is the time during which the employees receiving grants must remain employees for the shares granted to fully vest. |
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Fair Value of Financial Instruments | Fair Value of Financial Instruments – In accordance with the requirements of the Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”), we group our financial assets and liabilities measured at fair value on a recurring basis in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1 - Valuation is based upon quoted market price for identical instruments traded in active markets. Level 2 - Valuation is based upon quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 - Valuation is generated from model-based techniques that use significant assumptions not observable in the market. Valuation techniques include use of discounted cash flow models and similar techniques. In accordance with the requirements of the Fair Value Measurements and Disclosures Topic of the FASB ASC, it is our policy to use observable inputs whenever reasonably practicable in order to minimize the use of unobservable inputs when developing fair value measurements. When available, we use quoted market prices to measure fair value. If market prices are not available, the fair value measurement is based on models that use primarily market based parameters including interest rate yield curves, option volatilities and currency rates. In certain cases, where market rate assumptions are not available, we are required to make judgments about assumptions market participants would use to estimate the fair value of a financial instrument. Changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results of current or future values. Cash, Cash Equivalents and Restricted Cash – Included in Cash and Cash Equivalents and Restricted Cash in the Condensed Consolidated Balance Sheets are money market funds invested in treasury bills, notes and other direct obligations of the U.S. Treasury or are in financial institutions insured by the FDIC and foreign bank operating and time deposit accounts. The fair value of this cash equivalent is based on Level 1 inputs in the fair value hierarchy. Receivables and Payables – The recorded amounts of these financial instruments, including accounts receivable and accounts payable, approximate their fair value because of the short maturities of these instruments. If measured at fair value in the financial statements, these financial instruments would be classified as Level 3 in the fair value hierarchy. Debt – The recorded amounts of these financial instruments, including long-term debt and current maturities of long-term debt, approximate fair value and are considered Level 2 in the fair value hierarchy. |
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Pensions and Other Benefit Plans | Pensions and Other Benefit Plans – We have retirement plans covering substantially all employees. The principal plans are the multiemployer defined benefit pension plans of our operations in The Netherlands and France and the plan for hourly union employees in Pennsylvania. The multiemployer plans in the United States and France are insignificant to our results of operations and financial condition. Our defined contribution plans cover substantially all of the employees in the United States. We match certain employee funds on a discretionary basis while certain subsidiaries require a minimum match to maintain their safe harbor status. |
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Shipping Expense | Shipping Expense – Shipping expenses of $0.5 million and $0.8 million for the three months ended June 30, 2017 and 2016, respectively, and $1.4 million and $1.6 million for the nine months ended June 30, 2017 and 2016, respectively, are included in selling, general and administrative expenses. |
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Research, Development and Engineering Expense | Research, Development and Engineering Expense – Research, development and engineering expenses consist of the cost of employees, consultants and contractors who design, engineer and develop new products and processes; materials and supplies used in those activities; and product prototyping. We receive reimbursements through governmental research and development grants which are netted against these expenses when certain conditions have been met. |
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Impact of Recently Issued Accounting Pronouncements | Impact of Recently Issued Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment”. The guidance is intended to simplify the subsequent accounting for goodwill acquired in a business combination. Prior guidance required utilizing a two-step process to review goodwill for impairment. A second step was required if there was an indication that an impairment may exist, and the second step required calculating the potential impairment by comparing the implied fair value of the reporting unit’s goodwill (as if purchase accounting were performed on the testing date) with the carrying amount of the goodwill. The new guidance eliminates the second step from the goodwill impairment test. Under the new guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and then recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value (although the loss should not exceed the total amount of goodwill allocated to the reporting unit). The guidance requires prospective adoption and will be effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption of this guidance is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We plan to early adopt this guidance in the fourth quarter of fiscal 2017, or with any interim impairment tests during fiscal 2017, and do not expect it to have a significant impact on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows: Restricted Cash”. The amendments address diversity in practice that exists in the classification and presentation of changes in restricted cash and require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This ASU is effective retrospectively for fiscal years and interim periods within those years beginning after December 15, 2017. We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, “Income Taxes: Intra-Entity Transfers of Assets Other than Inventory”. The amendments in this ASU remove the prohibition against the recognition of current and deferred income tax effects of intra-entity transfers of assets other than inventory until the asset has been sold to an outside party. The ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2017. We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments”. These amendments provide cash flow statement classification guidance for: 1. Debt Prepayment or Debt Extinguishment Costs; 2. Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; 3. Contingent Consideration Payments Made after a Business Combination; 4. Proceeds from the Settlement of Insurance Claims; 5. Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned Life Insurance Policies; 6. Distributions Received from Equity Method Investees; 7. Beneficial Interests in Securitization Transactions; and 8. Separately Identifiable Cash Flows and Application of the Predominance Principle. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early application is permitted, including adoption in an interim period. We are currently in the process of evaluating the impact of the adoption on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments”. ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. The new standard applies to financial assets measured at amortized cost basis, including receivables that result from revenue transactions and held-to-maturity debt securities. The new guidance will be effective for us starting in the first quarter of fiscal 2021. Early adoption is permitted starting in the first quarter of fiscal 2020. We are in the process of determining the effects the adoption will have on our consolidated financial statements as well as whether to adopt the new guidance early. In May 2014, the FASB issued ASU No. 2014-09 regarding ASC Topic 606, “Revenue from Contracts with Customers”. ASU 2014-09 provides principles for recognizing revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14 to defer the effective date by one year with early adoption permitted as of the original effective date. ASU 2014-09 will be effective for Amtech’s fiscal year beginning October 1, 2018 unless we elect the earlier date of October 1, 2017. In addition, the FASB issued ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 in March 2016, April 2016, May 2016 and December 2016, respectively, to help provide interpretive clarifications on the new guidance in ASC Topic 606. We have determined that we will not early adopt the standard and are currently assessing the impact that adopting this new accounting standard will have on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718)”. ASU 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The amendments in this ASU are effective for annual periods beginning after December 15, 2016 and for the interim periods therein. We are currently assessing the impact that adopting this new accounting standard will have on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”, which requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use-assets. ASU 2016-02 also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. This ASU is effective for fiscal years beginning after December 15, 2018 and early application is permitted. We are currently in the process of evaluating the impact of this standard on our consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities”, which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017 and early adoption is not permitted. We are currently evaluating the impact that the standard will have on our consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”. This ASU requires entities to classify deferred tax liabilities and assets as noncurrent in a classified statement of financial position. This ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for all entities as of the beginning of an interim or annual reporting period. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory”. This ASU simplifies the measurement of inventory by requiring certain inventory to be measured at the lower of cost or net realizable value. The amendments in this ASU are effective for fiscal years beginning after December 15, 2016 and for interim periods therein. We do not expect adoption of this ASU to have a material impact on our consolidated financial position and results of operations. |
Summary of Significant Accounting Policies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Deferred Profit | The components of deferred profit are as follows:
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Schedule of Inventory | The components of inventories are as follows:
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Property, Plant and Equipment | The following is a summary of property, plant and equipment:
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Activity in Goodwill | The following is a summary of activity in goodwill:
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Summary of Intangibles | The following is a summary of intangibles:
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Summary of Activity in Accrued Warranty Expense | The following is a summary of activity in accrued warranty expense:
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Stock Option Transactions and Options Outstanding | Stock option transactions and the options outstanding are summarized as follows:
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Options Fair Value Assumptions | The fair value of options was estimated at the applicable grant date using the Black-Scholes option pricing model with the following assumptions:
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Restricted Stock Transactions and Awards Outstanding | Restricted stock transactions and awards outstanding are summarized as follows:
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Research and Development Expense and Grants Earned | The table below shows gross research and development expenses and grants earned:
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Earnings Per Share | The following table outlines basic and diluted EPS:
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Business Segment Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Information | Information concerning our business segments is as follows:
* The revenue and operating income of business units included in the Solar segment include some sales of equipment and parts to the semiconductor, silicon wafer and MEMS industries, comprising less than 25% of the Solar segment revenue.
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Major Customers and Foreign Sales (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Major Customers and Foreign Sales [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues by Geographic Region | Our net revenues were to customers in the following geographic regions:
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Summary of Significant Accounting Policies - Deferred Profit (Details) $ in Thousands |
Jun. 30, 2017
USD ($)
systems
equipment
|
Sep. 30, 2016
USD ($)
|
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of similarly configured systems and processes | systems | 2 | |
Number of similarly configured items of equipment | equipment | 2 | |
Deferred revenues | $ 10,024 | $ 7,029 |
Deferred costs | 4,575 | 2,320 |
Deferred profit | $ 5,449 | $ 4,709 |
Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Sep. 30, 2016 |
---|---|---|
Other Commitments [Line Items] | ||
Restricted cash | $ 4,671 | $ 893 |
Environmental Restoration Costs | Superfund Site | ||
Other Commitments [Line Items] | ||
Restricted cash | $ 200 | $ 200 |
Summary of Significant Accounting Policies - Concentrations of Credit Risk (Details) |
9 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2017 |
Sep. 30, 2016 |
|
US Treasuries and FDIC Insured | Cash and Cash Equivalents and Restricted Cash | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 48.00% | |
Customer One | Accounts Receivable | Customer Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 32.00% | 11.00% |
Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Sep. 30, 2016 |
Jun. 30, 2016 |
---|---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Percentage of average cost inventory | 50.00% | ||
Inventory, Net [Abstract] | |||
Purchased parts and raw materials | $ 13,587 | $ 12,435 | |
Work-in-process | 6,711 | 7,044 | |
Finished goods | 2,888 | 3,744 | |
Inventory | $ 23,186 | $ 23,223 |
Summary of Significant Accounting Policies - Warranty (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Warranty beginning balance | $ 795 | $ 793 |
Additions for warranties issued during the period | 899 | 691 |
Reductions for payments made under the warranty | (269) | (624) |
Changes related to pre-existing warranties | (582) | (121) |
Currency translation adjustment | 10 | 6 |
Warranty ending balance | $ 853 | $ 745 |
Minimum | ||
Product Warranty Liability [Line Items] | ||
Standard product warranty, period | 12 months | |
Maximum | ||
Product Warranty Liability [Line Items] | ||
Standard product warranty, period | 24 months |
Summary of Significant Accounting Policies - Shipping Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Shipping expenses | $ 0.5 | $ 0.8 | $ 1.4 | $ 1.6 |
Summary of Significant Accounting Policies - Research and Development Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Research, development and engineering | $ 1,774 | $ 2,078 | $ 5,547 | $ 7,217 |
Grants earned | (351) | (510) | (961) | (1,202) |
Net research, development and engineering | $ 1,423 | $ 1,568 | $ 4,586 | $ 6,015 |
Income Taxes (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Sep. 30, 2016 |
|
Income Tax Contingency [Line Items] | ||
Unrecognized tax benefits that would impact effective tax rate | $ 3.9 | $ 3.9 |
Unrecognized tax benefits, income tax penalties and interest accrued | $ 2.6 | $ 2.3 |
Minimum | ||
Income Tax Contingency [Line Items] | ||
Number of years open for tax examinations | 3 years | |
Maximum | ||
Income Tax Contingency [Line Items] | ||
Number of years open for tax examinations | 5 years |
Stockholders' Equity (Details) - $ / shares |
Oct. 08, 2015 |
Dec. 15, 2008 |
Jun. 30, 2017 |
Sep. 30, 2016 |
---|---|---|---|---|
Class of Stock [Line Items] | ||||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 | ||
Minimum percent ownership of common stock for exercise of rights | 15.00% | |||
Series A Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Common stock, par value (USD per share) | $ 0.01 | |||
Number of securities called by warrants or rights (in shares) | 0.001 | |||
Exercise price of rights (USD per share) | $ 51.60 | |||
Rights expiration period | 10 years | |||
Collective ownership threshold for joint filers | 19.90% |
Long-term Debt (Details) $ in Millions |
9 Months Ended |
---|---|
Jun. 30, 2017
USD ($)
| |
Mortgage Note | |
Debt Instrument [Line Items] | |
Long-term debt | $ 6.3 |
Interest rate | 4.11% |
Federal Home Loan Board Five Year Classic Advance Rate | Mortgage Note | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 240.00% |
SoLayTec, B.V. | |
Debt Instrument [Line Items] | |
Long-term debt | $ 4.2 |
Proceeds from borrowings | $ 0.4 |
SoLayTec, B.V. | Minimum | |
Debt Instrument [Line Items] | |
Interest rate | 4.50% |
SoLayTec, B.V. | Maximum | |
Debt Instrument [Line Items] | |
Interest rate | 12.50% |
Investments (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Sep. 30, 2016 |
|
Schedule of Equity Method Investments [Line Items] | |||||
Investments | $ 2,831 | $ 2,831 | $ 3,032 | ||
Investment income (loss) | $ (110) | $ (444) | $ (200) | $ 227 | |
Kingstone Holding Company | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 15.00% | 15.00% |
Related Party Transactions (Details) - TNO Technostarters B.V. Loans - TNO Technostarters B.V. $ in Millions |
9 Months Ended |
---|---|
Jun. 30, 2017
USD ($)
| |
SoLayTec, B.V. | |
Related Party Transaction [Line Items] | |
Borrowings from related party | $ 1.8 |
Minimum | |
Related Party Transaction [Line Items] | |
Related party debt interest rate | 9.50% |
Maximum | |
Related Party Transaction [Line Items] | |
Related party debt interest rate | 12.50% |
Subsequent Event (Details) $ in Millions |
Jun. 30, 2017
USD ($)
|
---|---|
Tempress | |
Subsequent Event [Line Items] | |
Long-term debt | $ 2.3 |
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