FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
================================================================================
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended: December 31, 1997
----------------------
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________ to ____________
Commission File Number: 0-11412
----------
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)
Registrant's telephone number, including area code (602) 967-5146
- --------------------------------------------------------------------------------
Indicate by check mark whether the Registrant (i) has filed all reports required
by section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (ii) has been subject to such filing requirements for
the past 90 days. Yes X No
----- -----
Indicate the number of shares outstanding of each of the issuer's classes
of common stock as of the close of the period covered by this report.
Common Stock, $.01 Par Value
- --------------------------------------------------------------------------------
(Title of Class)
4,190,456 Shares
- --------------------------------------------------------------------------------
Outstanding as of December 31, 1997
<PAGE>
AMTECH SYSTEMS, INC.
AND SUBSIDIARIES
TABLE OF CONTENTS
Page
----
PART I. FINANCIAL INFORMATION.
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
December 31, 1997 and September 30, 1997............................ 3
Condensed Consolidated Statements of Operations -
Three Months Ended December 31, 1997 and 1996....................... 4
Condensed Consolidated Statements of Cash Flows
Three Months Ended December 31, 1997, and 1996...................... 5
Notes to Condensed Consolidated Financial Statements.............. 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.................................. 9
Results of Operations.......................................... 9
Financial Condition and Working Capital ....................... 11
Liquidity and Capital Resources................................ 11
FORWARD-LOOKING STATEMENTS..................................... 13
PART II. OTHER INFORMATION.
Item 1. Legal Proceedings............................................. 14
Item 4. Submission of Matters to a Vote of Security Holders........... 14
Item 6. Exhibits and Reports on Form 8-K.............................. 14
SIGNATURES................................................................. 14
2
<PAGE>
AMTECH SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, September 30,
1997 1997
------------ -------------
(Unaudited)
ASSETS
------
CURRENT ASSETS:
Cash and cash equivalents $ 1,810,010 $ 1,395,849
Short-term investments -- 579,191
Accounts receivable, net 3,029,333 2,983,573
Inventories 2,080,620 2,062,052
Deferred income taxes 277,000 273,000
Prepaid expenses 145,136 85,820
----------- -----------
Total current assets 7,342,099 7,379,485
----------- -----------
PROPERTY, PLANT AND EQUIPMENT
Land, building and leasehold improvements 633,415 629,604
Equipment and machinery 845,483 785,142
Furniture and fixtures 735,134 726,365
----------- -----------
2,214,032 2,141,111
Less: accumulated depreciation and amortization 842,627 781,078
----------- -----------
1,371,405 1,360,033
----------- -----------
PURCHASE PRICE IN EXCESS OF NET ASSETS
ACQUIRED, at amortized cost 596,856 561,238
OTHER ASSETS 47,845 54,336
----------- -----------
$ 9,358,205 $ 9,355,092
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Accounts payable $ 911,537 $ 935,338
Accrued liabilities:
Compensation and related taxes 480,554 471,604
Warranty and installation expenses 292,357 369,868
Other accrued liabilities 214,909 208,355
Income taxes payable 125,000 123,000
----------- -----------
Total current liabilities 2,024,357 2,108,165
----------- -----------
LONG-TERM OBLIGATIONS 312,696 318,721
----------- -----------
STOCKHOLDERS' EQUITY
Preferred stock; no specified terms;
100,000,000 shares authorized; none issued -- --
Common stock; $.01 par value; 100,000,000 shares
authorized; 4,190,456 shares issued and outstanding
(4,185,106 at September 30, 1997) 41,905 41,850
Additional paid-in capital 7,353,612 7,345,187
Cumulative foreign currency translation adjustment (309,327) (284,453)
Accumulated deficit (65,038) (174,378)
----------- -----------
Total stockholders' equity 7,021,152 6,928,206
----------- -----------
$ 9,358,205 $ 9,355,092
=========== ===========
See accompanying notes to Condensed Financial Statements.
3
<PAGE>
AMTECH SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For The Three Months Ended December 31, 1997 and 1996
Three Months Ended
---------------------------
1997 1996
----------- -----------
(Unaudited) (Unaudited)
Net revenue $ 4,060,826 $ 2,007,520
Cost of product sales 2,731,814 1,338,603
----------- -----------
Gross profit 1,329,012 668,917
Selling and general 1,089,294 578,400
Gain on disposition of Korean joint venture -- (115,487)
Research and development 68,494 75,571
----------- -----------
Operating profit 171,224 130,433
Interest income-net 18,116 47,025
----------- -----------
Income from continuing
operations before income taxes 189,340 177,458
Income tax provision 80,000 57,000
----------- -----------
NET INCOME $ 109,340 $ 120,458
=========== ===========
EARNINGS PER SHARE :
Basic $ .02 $ .03
Diluted $ .02 $ .02
Weighted average outstanding shares 4,190,456 4,141,668
Weighted average common and
common equivalent shares outstanding 4,713,839 5,171,007
See accompanying notes to Condensed Financial Statements.
4
<PAGE>
AMTECH SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For The Three Months Ended December 31, 1997 and 1996
Three Months Ended
-----------------------
1997 1996
----------- -----------
(Unaudited) (Unaudited)
OPERATING ACTIVITIES:
Net income $ 109,340 $ 120,458
Adjustments to reconcile net income to net
cash provided (used) by operating activities:
Depreciation and amortization 83,499 49,910
Inventory and accounts receivable write-offs 11,241 21,159
Gain on disposition of Korean joint venture -- (115,487)
Deferred tax expense (benefit) (4,000) 6,000
Decreases (increases) in operating assets:
Accounts receivable (66,242) (183,330)
Inventories, prepaids and other assets (147,224) 35,112
Increases (decreases) in operating liabilities:
Accounts payable (14,509) (96,337)
Accrued liabilities (56,019) (24,567)
Income taxes payable 2,000 (9,000)
---------- ----------
Net cash Provided by (Used In) Operating Activities (81,914) (196,082)
---------- ----------
INVESTING ACTIVITIES:
Maturities (purchases) of short-term investments - net 579,191 (978,614)
Proceeds from disposition of (Investment in)
unconsolidated Korean joint venture -- 475,047
Proceeds from sale of assets 2,225 --
Purchases of property, plant and equipment (88,067) (102,883)
---------- ----------
Net Cash Provided by (Used in) Investing Activities 493,349 (606,450)
---------- ----------
FINANCING ACTIVITIES:
Proceeds from stock options exercised 8,480 21,600
Proceeds from (Payments on) mortgage loan (2,042) (4,707)
---------- ----------
Net Cash Provided By Financing Activities 6,438 16,893
---------- ----------
EFFECT OF EXCHANGE RATE CHANGES (3,712) (8,483)
---------- ----------
CASH AND EQUIVALENTS
Net increase (decrease) 414,161 (794,122)
Beginning of year 1,395,849 1,994,217
---------- ----------
END OF QUARTER CASH AND EQUIVALENTS $1,810,010 $1,200,095
========== ==========
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the year for:
Interest $ 4,033 $ 4,908
Income taxes, net of refunds 82,000 60,000
See accompanying notes to Condensed Financial Statements.
5
<PAGE>
AMTECH SYSTEMS, INC.
AND SUBSIDIARIES
NOTES TO CONDENSED FINANCIAL STATEMENTS
THREE MONTHS ENDED DECEMBER 31, 1997
(1) BASIS OF PRESENTATION
---------------------
The accompanying consolidated financial statements include the accounts
of Amtech Systems, Inc., and its wholly-owned subsidiaries, Tempress Systems,
Inc., based in Heerde, The Netherlands, and P. R. Hoffman Machine Products,
Inc., formed July 1, 1997 (the "Company"). All significant intercompany balances
and transactions have been eliminated in consolidation.
The accompanying consolidated financial statements have been prepared
in accordance with generally accepted accounting principles, pursuant to the
rules and regulations of the Securities and Exchange Commission and are
unaudited. In the opinion of management these financial statements include all
adjustments which are necessary for a fair presentation of the consolidated
financial position of the Company as of December 31, 1997 and September 30, 1997
and the consolidated results of its operations and its consolidated cash flows
for the three months ended December 31, 1997 and 1996.
Certain information and footnote disclosures normally included in
financial statements have been condensed or omitted pursuant to such rules and
regulations. It is suggested that these consolidated financial statements be
read in conjunction with the consolidated financial statements and notes thereto
included in the Company's Annual Report on Form 10-K for the year ended
September 30, 1997, which is incorporated herein by reference.
The consolidated results of operations for the three months ended
December 31, 1997, are not necessarily indicative of the results to be expected
for the full year.
(2) Inventories
-----------
The components of inventories are as follows:
December 31, September 30,
1997 1997
------------ -------------
Purchased parts and
raw material $1,155,017 $995,850
Work-in-process 466,515 618,295
Finished goods 459,088 447,907
---------- ----------
Totals $2,080,620 $2,062,052
========== ==========
6
<PAGE>
(3) INVESTMENT IN UNCONSOLIDATED SUBSIDIARY
---------------------------------------
During the first quarter of fiscal 1996, the Company entered into a
joint venture agreement pursuant to which it would have a 45% ownership interest
and a 50% voting interest in Seil Semicon, Inc. in return for a commitment to
invest $500,000 in cash. The joint venturers' plan was to operate a silicon test
wafer reclaiming business through Seil Semicon, Inc. During the fourth quarter
of fiscal 1996, it was determined that the joint venture required significantly
more capital than originally anticipated. In the first quarter of fiscal 1997,
the Company disposed of its interest in the joint venture because management
believed that raising the Company's commitment to $3 million, without obtaining
majority control, was more risk than was appropriate for the Company. The
Company received $475,000 during December 1996, in exchange for its interest in
the joint venture, thereby recovering its investment and related expenses.
Because the Company disposed of its interest in the joint venture and recovered
its equity in the first year start-up losses and certain expenses related to
that venture incurred in fiscal 1996, a $115,000 gain was recorded in the first
quarter of fiscal 1997.
(4) EARNINGS PER SHARE
------------------
The Company adopted the provisions of Statement of Financial Accounting
Standards ("SFAS") No. 128 in the quarter ended December 31, 1997. Statement No.
128 establishes new standards for computing and presenting earnings per share
("EPS") and supersedes APB Opinion No. 15. Statement 128 replaces primary EPS
with Basic EPS and fully diluted EPS with diluted EPS and requires dual
presentation of basic and diluted EPS. Statement No. 128 is effective for annual
and interim periods ending after December 15, 1997. Earlier adoption was not
permitted. All prior period EPS data have been restated to conform to Statement
No. 128. The effect of this accounting change was to decrease the EPS reported
for the three months ended December 31, 1996, by $.01, from $.03 fully diluted
EPS to $.02 diluted EPS. Basic EPS was the same as primary EPS for the first
quarter of last year.
Three Months Ended
December 31,
--------------------------
1997 1996
---------- ----------
Net income $ 109,340 $ 120,458
After-tax amortization of
contingent goodwill (8,113) --
---------- ----------
Income used in calculation $ 101,227 $ 120,458
========== ==========
Continued on next page.....
7
<PAGE>
(4) EARNINGS PER SHARE - continued
------------------------------
Weighted average shares:
Common shares outstanding 4,190,456 4,141,668
Common equivalent shares,
issuable upon exercise of
Warrants and stock options (1) 523,383 1,029,339
---------- ----------
4,713,839 5,171,007
========== ==========
Basic net income per share $ .02 $ .03
====== ======
Diluted net income per share $ .02 $ .02
====== ======
- ---------------------
(1) Number of shares calculated using the treasury stock method and the
average market price during the period. All shares that could
potentially be dilutive in the future were included in the calculation.
(5) ACQUISITION OF P. R. HOFFMAN
----------------------------
On July 1, 1997, the Company purchased substantially all of the assets of P. R.
Hoffman Machine Products Corporation, an "S" corporation ("P. R. Hoffman") based
in Carlisle, Pennsylvania. In addition to the purchase price paid in fiscal
1997, the Company will pay in either cash or stock an earn-out equal to 50% of
the pre-tax income of the P. R. Hoffman, before amortization of goodwill, other
expense arising from the application of purchase accounting and allocations of
corporate expenses, ("Adjusted Income") in excess of $800,000 per year, during
the five (5) fiscal years ending September 30, 2002. The maximum earn-out
payable under the purchase agreement is $2 million. This additional purchase
price will be treated as part of the purchase price to the extent earned and
amortized over the remainder of the period ending June 30, 2012. Thus far into
fiscal 1998, the annualized Adjusted Income of this operation has exceeded
$800,000 by approximately $347,684. If Adjusted Income for fiscal 1998 equals
the annualized Adjusted Income for the period ending December 31, 1997, the
contingent purchase price to be paid for the first year of the earn-out will be
$173,842. One-fourth of that amount, $43,461, has been recorded as additional
goodwill during the first three months of fiscal 1998. All earnings per share
amounts for fiscal 1998 include the estimated after-tax amortization of the
total projected contingent consideration of $869,210 (five times the $173,842
projected for fiscal 1998).
8
<PAGE>
AMTECH SYSTEMS, INC.
AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
The following table sets forth certain operational data as a
percentage of net revenue for the periods indicated:
Three Months Ended
December 31,
---------------------
1997 1996
---- ----
Net revenue 100.0% 100.0%
Cost of product sales (67.3) (66.7)
----- -----
Gross profit 32.7 33.3
Selling and general expenses (26.8) (28.8)
Research and development (1.7) (3.8)
Gain on sale of joint venture -- 5.8
----- -----
Operating income 4.2% 6.5%
===== =====
Net Revenue. Net Revenue increased $2,053,000, or 102%, to $4,061,000
in the first quarter of fiscal 1998, from $2,008,000 of product sales reported
in the first quarter of fiscal 1997. Diffusion products contributed $2,145,000
of the total revenue, a 7% increase from the comparable quarter of fiscal 1997.
Manufacturing support services, which began operations in the fourth quarter of
fiscal 1997, produced $225,000 of revenue. P. R. Hoffman, which produces double
sided lapping and polishing machines, related consumables, and semiconductor
wafer polishing templates ("wafer fabrication products") was acquired in the
fourth quarter of fiscal 1997, produced revenue of $1,691,000 and is the primary
reason for the increase in net revenue.
Gross Profit. Gross profit for the three months ended December 31,
1997, was $1,242,000, $573,000 or 86% higher than in the first quarter of fiscal
1997. The gross profit on diffusion products was $684,000, or 55% of the total
gross profit, 32% of diffusion product sales and an increase of $15,000 compared
to the first quarter of fiscal 1997. As a percentage of sales, the gross profit
from diffusion products was slightly lower in the first quarter of the current
year, compared to the similar period in fiscal 1997, as labor and overhead costs
have increased to accommodate future growth. Wafer fabrication products
contributed $530,296 of gross profit and are the primary source of the increase
in gross profit. Manufacturing support services also made a positive
contribution to gross profit.
9
<PAGE>
The selling, general and administrative expenses for the first quarter
of fiscal 1998 were $511,000 higher than in comparable period of last fiscal
year. New operations (i.e. P. R. Hoffman and manufacturing support services)
accounted for $291,000 of this increase. The diffusion business accounted for
$220,000 of the increase in such expenses, which results from increased staffing
in sales and marketing, added personnel to increase management depth and the
costs associated with identifying and reviewing potential acquisitions. Despite
the significant increase in selling, general and administrative expenses, they
grew at a slower rate than revenue, and amounted to 26.8% of sales, two
percentage points lower than the 28.9% for the first quarter of fiscal 1997.
Research and development. Research and development costs were $7,000
lower than in the three months ended December 31, 1997. While the Company
increased its photo-CVD research efforts by $16,000, in preparation for the
delivery of higher intensity lamps, this was partially offset by lower costs as
progress on other development projects was slowed due to the holidays. It is
anticipated that the study of these modified lamps will continue until
approximately October 1998.
As a result of the above, operating profit for the first quarter of
fiscal 1998 was $171,000, or 4.2% of revenue, compared to $130,000, or 6.5% of
revenue for the first quarter of fiscal 1997. The operating profit for the first
quarter of fiscal 1997 included a $115,000 gain from the disposition of the
Korean joint venture for which there is no comparable item in the most recently
completed quarter. Excluding that gain, operating profit for the first quarter
of fiscal 1998, $171,000, or 4.2% of revenue, would be compared to $15,000, or
.7% of revenue for the first quarter of fiscal 1997.
Net income includes the operating profit discussed above, net interest
income, and the provision for income taxes. During the first quarter of the
fiscal 1998, net interest income was $18,000, a decrease of $29,000 from the
corresponding quarter of the preceding year, due to the cash used in the
acquisition of P. R. Hoffman. As a result, income before income taxes for the
latest period was $189,000, compared to $177,000 in the first quarter of fiscal
1997.
Income tax expense increased $23,000 and from 32% of pre-tax income to
42% pre-tax income this year. The increase was partially attributable to the
state income taxes on the income of P. R. Hoffman, as the Arizona diffusion
business has operating loss carryforwards, which are not available to P. R.
Hoffman. Also, the $57,000 provision for income tax for the first quarter of
10
<PAGE>
fiscal 1997 was less than what would result from applying the statutory rates to
the before tax income, because of the effects of the permanent differences
between financial and taxable income.
The three months ended December 31, 1997, resulted in a net income of
$109,000, or $.02 per share, compared to $120,000, or $.03 per share, in the
first quarter of fiscal 1997. As noted above, the most significant factor
contributing to the decline in net income was that the first quarter of fiscal
1997 included the gain from the disposition of the Korean joint venture.
Financial Condition and Working Capital.
- ----------------------------------------
As of December 31, 1997, the Company has $1,810,000 of readily
available liquidity in the form of cash and cash equivalents and short-term
investments, a decrease of $165,000 since September 30, 1997. During the three
months ended December 31, 1997, working capital increased by $46,000 to
$5,362,000, primarily due the positive results of the operations. Similarly, the
current ratio improved slightly to 3.6:1 as of December 31, 1997, compared to
3.5:1 as of September 30, 1997. Cash and short-term investments comprise 19% of
total assets and stockholders' equity is 75% of total capitalization. Management
continues to believe that the level of liquidity and working capital are a
reflection of the Company's strong financial condition.
Liquidity and Capital Resources.
- --------------------------------
Management believes the Company's liquidity is sufficient for its
current operations. The Company is continuing to perform research on high
intensity lamps to be used in conjunction with its patented photo-assisted
chemical vapor deposition ("CVD") technology prior to making a decision
regarding development of a commercial product incorporating that technology. See
the management's discussion and analysis included in the Company's 1997 annual
report on Form 10-K for further information regarding the Company's strategy for
acquisitions and development of a product based upon the Company's CVD
technology. The Company continues to evaluate potential product or business
acquisitions that may complement its business. There can be no assurance of the
sufficiency of existing working capital or the availability of any other source
of financing necessary to permit the Company to pursue simultaneously both its
acquisition strategy and to complete development of a photo-assisted CVD
product.
11
<PAGE>
The semiconductor equipment order backlog was $5,300,000 as of
December 31, 1997, compared to $2,480,000 as of December 31, 1996, an increase
of $2,820,000. The growth in the order backlog reflects the $1,250,000 order
backlog of P. R. Hoffman. Also, the backlog for the diffusion business increased
$1,569,000, as last years order backlog was adversely effected by the earlier
slow-down in the semiconductor industry. While orders are ordinarily filled
within three to nine months of receipt, the current backlog includes
approximately $800,000 of orders from one customer that may not be shipped until
fiscal 1999.
Several countries, predominantly in Asia, have recently experienced
economic difficulties including high rates of loan defaults, business failures
and currency devaluations. During fiscal year 1997, the Company derived 27% of
its sales from these countries. The turmoil in the Asian financial markets is
expected to eliminate most, if not all, of the Company's sales of capital
equipment into that region for at least all of fiscal 1998. These adverse
conditions are expected to have the greatest impact on the high margin U.S.
based portion of the diffusion product line, as the ATMOSCAN(R) and IBAL
Automation products are believed to improve the customer's yields and
efficiencies, but may not be viewed as an absolutely necessity, and therefore
are the first types of equipment to be eliminated from customers' capital
budgets. Indeed, prior to the intervention of the International Monetary Fund
("IMF"), the Company was expecting to receive a $1 million order from that
region, which now will not be received during the foreseeable future. One
domestic customer has informed the Company that a $1 million planned order would
not be placed during the current fiscal year, as had been originally expected,
due reduced demand for their products in the pacific rim. There could be other
indirect, adverse effects of the Asian financial crisis, as a number of the
Company's domestic and European customers consider Japan and Asia as very
important markets. The Company's products are sold on a world-wide basis.
Accordingly, the Company will attempt to offset the sales declines caused by the
above factors by focusing more attention on other geographic regions. The fact
that the sales of diffusion products for the first quarter increased by 7%, and
the backlog for such products as of December 31, 1997 was $1,569,000 higher than
at the same point in the previous year are encouraging and fiscal 1998 sales of
those products are expected to exceed fiscal 1997 levels. However, there can be
no assurance that the Company's sales of diffusion products and the related
operating results will not be adversely affected. The Company's wafer
fabrication products, which were acquired during fiscal 1997 have historically
been less dependent on the Asian markets and include a much higher percentage of
consumable products. In any event, the Company expects to be able to report
higher sales in fiscal 1998 than in fiscal 1997 because the
12
<PAGE>
acquired business will be included for four quarters versus one quarter last
year.
FORWARD-LOOKING STATEMENTS
This report contains certain forward-looking statements. The
forward-looking statements contained herein are based upon current expectations
that involve a number of risks and uncertainties. The forward-looking statements
are based upon a number of assumptions, including, without limitation, those
enumerated in the related section of the Management's Discussion and Analysis
included in the Company's 1997 annual report on Form 10-K, which are hereby
incorporated by reference. Assumptions related to the foregoing involve
judgments with respect to, among other things, future economic, competitive and
market conditions, and future business decisions, all of which are beyond the
control of the Company. Although the Company believes that the assumptions
underlying the forward-looking statements are reasonable, any of the assumptions
could prove inaccurate and, therefore, there can be no assurance that the
results contemplated in forward-looking statements will be realized. In
addition, the business and operations of the Company are subject to substantial
risks which increase the uncertainty inherent in such forward-looking
statements. In light of the significant uncertainties inherent in such
forward-looking information included herein, the inclusion of such information
should not be regarded as a representation by the Company, or any other person,
that the objectives or plans for the Company will be achieved.
13
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
------------------
None.
Item 4. Submission of Matters to a Vote of Security Holders.
----------------------------------------------------
None.
Item 5. Other Matters.
--------------
None.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits -
None.
(b) Reports on Form 8-K
The Company did not file any reports on Form 8-K during
the three months ended December 31, 1997.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
AMTECH SYSTEMS, INC.
by /s/ Robert T. Hass
---------------------------------------
Robert T. Hass, Vice-President and
Chief Financial Officer
DATED: February 17, 1998
14
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL
INFORMATION EXTRACTED FROM THE BALANCE SHEET AS OF
DECEMBER 31, 1997, AND THE STATEMENT OF OPERATION
AND THE STATEMENT OF CASH FLOW FOR THE THREE
MONTHS ENDED DECEMBER 31, 1997 AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH QUARTERLY REPORT
ON FORM 10-Q FOR THE QUARTER ENDED DECEMBER 31,
1997.
</LEGEND>
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<CASH> 1,810,010
<SECURITIES> 0
<RECEIVABLES> 3,161,333
<ALLOWANCES> 132,000
<INVENTORY> 2,080,620
<CURRENT-ASSETS> 7,342,099
<PP&E> 2,414,032
<DEPRECIATION> 842,627
<TOTAL-ASSETS> 9,358,205
<CURRENT-LIABILITIES> 2,024,357
<BONDS> 210,275
<COMMON> 41,905
0
0
<OTHER-SE> 6,979,247
<TOTAL-LIABILITY-AND-EQUITY> 9,358,205
<SALES> 4,060,826
<TOTAL-REVENUES> 4,060,826
<CGS> 2,731,814
<TOTAL-COSTS> 2,731,814
<OTHER-EXPENSES> 1,146,547
<LOSS-PROVISION> 11,241
<INTEREST-EXPENSE> 4,033
<INCOME-PRETAX> 189,340
<INCOME-TAX> 80,000
<INCOME-CONTINUING> 109,340
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 109,340
<EPS-PRIMARY> .03
<EPS-DILUTED> .02
</TABLE>
