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.
From the Equity Insider archive. This article dates from Dec 13, 2023 and is preserved as first published.
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.
-based maker of equipment for semiconductor and other manufacturing said sales fell 14%, to $27.
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.
