Amtech Systems reported fiscal 2026 first quarter net revenue of $19.0 million, down from $24.4 million in the year-ago quarter and slightly below the prior quarter’s $19.8 million. GAAP net income fell to $0.1 million (equivalent to $0.01 per diluted share), compared with $0.3 million a year earlier. Non-GAAP net income was $0.4 million, or $0.03 per diluted share, short of consensus estimates of $0.07. The earnings shortfall was driven by lower sales of silicon carbide polishing consumables and reduced volumes in high-temperature belt furnaces and diffusion furnaces following recent product line rationalization.

Demand for AI-related equipment remained robust, accounting for 35% of Thermal Processing Solutions segment revenue (up from 30% in the prior quarter). Customer orders totaled $20.7 million, yielding a book-to-bill ratio of 1.1. The company ended the quarter with a backlog of $21.6 million, with a portion of deliveries scheduled into Q3 to align with customer factory build-outs focusing on advanced packaging and AI semiconductor device assembly.

Operating cash flow in Q1 reached $4.1 million, marking the ninth consecutive quarter of positive cash generation. Unrestricted cash and cash equivalents rose to $22.1 million from $17.9 million in the prior quarter, with no debt on the balance sheet. Management attributed the cash build-up to improved collections, disciplined working capital management and cost-structure improvements implemented over the last two years.

For the second quarter ending March 31, 2026, Amtech expects revenues between $19.0 million and $21.0 million, with adjusted EBITDA margin in the high single digits driven by operational leverage from recent cost reductions. Under its one-year, $5.0 million share repurchase authorization announced in December, no shares have yet been repurchased. The company reaffirmed its strategy to capitalize on AI infrastructure investments and maintain asset-light, semi-fabless operations to deliver shareholder value.