Amtech Systems Shares Slide 30% on Weaker Demand, Cost-Cuts

Amtech Systems Shares Slide 30% on Weaker Demand, Cost-Cuts

Shares of Amtech Systems fell Wednesday after the company said weak demand for its products was persisting in multiple end markets.

The stock was down 30%, to $4.21, in after-hours trading, following a 0.2% rise at Wednesday’s close. Shares are down 21% this year.

The Tempe, Ariz.-based maker of equipment for semiconductor and other manufacturing said sales fell 14%, to $27.7 million, a result of lower bookings in multiple areas of business.

The company said that a prolonged downturn and the general economic conditions in the semiconductor industry and delayed adoption of next-generation polishing tools would lead to an impairment charge in its Material and Substrate segment.

Amtech Chief Executive Bob Daigle said the company was looking to reduce costs, including a workforce reduction in each of its businesses.

The company said as of Sept. 30 that it was not in compliance with terms of its loan agreement, and had on Dec. 5 entered a forbearance agreement with UMB Bank related to the non-compliance.

Amtech will operate under the terms of the agreement through Jan. 17, 2025.

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