Amtech Systems Inc Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Craig Irwin - Roth Capital Partners LLC - Analyst : So I apologize if you handled this in the first couple of minutes of the call. So I missed -- juggling multiple calls tonight. Two key things at top of my mind, really both related to tariffs. With the outlook for maybe a positive resolution on the US-China trade disputes, it seems that some of the business activity can normalize and your significant exposure to the Chinese market maybe looks like it will face a little bit less of a headwind. I was hoping you could comment a little bit about that. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 12, 2025 / 9:00PM, ASYS.OQ - Q2 2025 Amtech Systems Inc Earnings Call And then the flip side of this is the US obvious push for repatriation of manufacturing for us to make our own semiconductors. It seems like it could set up a larger long-term opportunity for you here, particularly in the United States. If you could maybe talk about how these major policy actions out of the White House could possibly benefit business activity for Amtech over the next couple of years?

Question: Craig Irwin - Roth Capital Partners LLC - Analyst : Understood. So my next question again is very much a big picture question. A lot of investors have come to Amtech and been interested in learning more about Amtech for your involvement in the silicon carbide power semiconductor industry. And people look at your R&D spending and just a few million dollars and often overlook the significant technology contribution that you make to your customers. Can you maybe talk a little bit about some of the programs there that are not front center for investors right now, like diamond wafers. I know that you've done work there with all the leading diamond wafer producers and some of these other sort of cutting-edge technologies that could come to market in the next handful of years, how do your customers lean on you as an expert in materials processing and polishing? And how important is this to the basic structure of the industry over the next many years?

Question: Craig Irwin - Roth Capital Partners LLC - Analyst : Congratulations on the continued gross margin strength. It shows you guys are managing things tight and we like that.

Question: Mark Miller - The Benchmark Company - Analyst : You mentioned during your remarks that you basically worked through your lower margin backlog. I'm just wondering if you could give us some insight or some color about the current profile, the margin profile of your existing backlog, is that above what we've been seeing recently?

Question: Mark Miller - The Benchmark Company - Analyst : Okay. You indicated that AI is driving strong demand for advanced packaging. Can you be specific about what products you're seeing a strong demand for?

Question: Mark Miller - The Benchmark Company - Analyst : And finally, just wondering, can you give us a feeling for the revenue from spares and service?

Question: Mark Miller - The Benchmark Company - Analyst : I'm sorry, of which service?

Question: Mark Miller - The Benchmark Company - Analyst : Okay. So was semi basically all parts and services. All right.