Amtech Systems, a semiconductor and manufacturing equipment provider based in Tempe, Arizona, experienced a significant decline in its stock value due to persistently weak demand across multiple end markets. Following a 0.2% increase at Wednesday’s close, the stock plummeted 30% to $4.21 during after-hours trading. This drop reflects the challenges the company has faced throughout the year, with shares falling by 21%.
Amtech Systems reported a 14% decrease in sales, amounting to $27.7 million. The decline was primarily driven by lower bookings in various sectors of its business. Furthermore, the semiconductor industry’s prolonged downturn and delayed adoption of next-generation polishing tools contributed to an impairment charge in the company’s Material and Substrate segment.
In response to these difficulties, Amtech Systems’ Chief Executive, Bob Daigle, announced that the company aims to reduce costs, including a workforce reduction in all of its business divisions. Additionally, Amtech Systems disclosed that it did not comply with the terms of its loan agreement as of September 30. To address this non-compliance, a forbearance agreement was reached with UMB Bank on December 5.
Under the terms of the forbearance agreement, Amtech Systems will operate until January 17, 2025. Despite these challenges, the company remains committed to navigating these headwinds and finding opportunities for future growth.