This article first appeared on GuruFocus .
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Revenue:$22.4 million, up 14% year-over-year and at the top end of guidance.
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Gross Margin:Increased to 50%, up nearly 400 basis points from 46.7% in the prior year quarter.
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Adjusted EBITDA:$3.3 million, approaching 15% of sales.
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GAAP Net Income:Approximately $1.7 million, or $0.10 per diluted share, compared to $100,000, or $0.01 per share, in the prior year period.
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Thermal Processing Solutions (TPS) Revenue:Approximately $17.7 million, up nearly 25% year-over-year.
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TPS AI-Related Revenue:Up approximately 120% from the prior year period, accounting for more than 40% of segment revenue.
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TPS Parts and Services Revenue:Increased approximately 30% year-over-year, representing 20% of TPS revenue.
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TPS Book-to-Bill Ratio:Approached 1.4 in the quarter, marking the third consecutive quarter with a book-to-bill exceeding one.
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Semiconductor Fabrication Solutions (SFS) Revenue:$4.6 million, down just over 13% year-over-year.
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Entrepix Parts and Service Revenue:Increased 19% year-over-year.
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Cash and Cash Equivalents:$83.1 million at June 30, 2026, including $56.5 million in net proceeds from a public offering.
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Cash Flow from Operations:$1.1 million generated during the fiscal third quarter.
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SG&A Expenses:Increased approximately $600,000 from the prior year quarter.
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R&D Expenses:More than doubled from the prior year, relatively flat compared to Q2.
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Foreign Currency Exchange Losses:Approximately $400,000 in Q3 2026, compared to $100,000 in the prior year period.
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Q4 Fiscal 2026 Revenue Guidance:Expected to be in the range of $22.5 million to $24 million.
Release Date: August 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Revenue for the quarter was $22.4 million, up 14% year-over-year and at the top end of guidance, driven by strong AI-related demand in the Thermal Processing Solutions segment.
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AI-related revenue in the Thermal Processing Solutions segment surged approximately 120% year-over-year, with AI accounting for more than 40% of segment revenue.
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Gross margin improved to 50%, up nearly 400 basis points year-over-year, and adjusted EBITDA of $3.3 million approached 15% of sales, reflecting strong operating leverage.
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The book-to-bill ratio for the Thermal Processing Solutions segment approached 1.4, marking the third consecutive quarter with a book-to-bill above 1, indicating strong future demand.
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The company received its first order for equipment used in producing cooling components for AI semiconductors, expanding its participation in AI infrastructure beyond advanced packaging and server board assembly.
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Cash position strengthened significantly to $83.1 million, including $56.5 million from an oversubscribed public offering, providing ample capital for potential synergistic acquisitions and organic growth.
Negative Points
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Revenue in the Semiconductor Fabrication Solutions segment declined over 13% year-over-year, primarily due to a significant reduction in demand for PR Hoffman templates used in silicon carbide substrate manufacturing.
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The company does not expect a meaningful recovery in silicon carbide demand due to structural changes in the industry, leading to a de-emphasis of that product line.
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Selling, general, and administrative expenses increased by approximately $600,000 year-over-year, driven by expanding business activities, compensation, and consulting fees.
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Research, development, and engineering expenses more than doubled year-over-year, and are expected to increase further as the company builds out platforms for next-generation opportunities.
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The company recorded approximately $300,000 in non-cash charges related to the sublease of a previously closed facility, including an impairment of the lease asset.
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Foreign currency exchange losses increased to $400,000 in the quarter, primarily due to a weakening US dollar against the Chinese renminbi.
Q & A Highlights
Q: Can you help us understand how long you expect the TPS backlog to convert to revenue and the timing there? A: Robert Daigle, Chairman and CEO, stated that the backlog is expected to convert primarily in the fiscal fourth quarter, with some carrying into the first quarter and a portion into the second quarter of fiscal year 2027.
Q: Within your existing silicon carbide customers, what is the mix currently of EV versus defense, medical, and other industrial customers, and where do you see potential areas for growth? A: Robert Daigle, Chairman and CEO, explained that the company has seen a market decline in silicon carbide demand, which is now de minimis. He does not envision a meaningful recovery and stated the company has de-emphasized this area, restructuring the business to focus on AI infrastructure equipment, specialty chemicals, and parts and service in the mature market.
Q: How much of the backlog uptick is from a few large hyperscaler or OSAT orders versus a broad step up, and how bumpy is that? A: Robert Daigle, Chairman and CEO, clarified that the company's equipment is agnostic regarding which hyperscaler or OSAT it ships to. The demand is tied to overall AI infrastructure build-outs across the spectrum of GPU and TPU applications, not specific to any single player or customer.
Q: The Q4 margin guide seems to imply a step down from the 15% EBITDA margin in Q3. Is that conservatism or a mix shift? A: Robert Daigle, Chairman and CEO, noted that results depend heavily on mix. He clarified that "low to mid-teens" includes 13% as the first number in the teens, and the company considers 15% to be within that low to mid-teens range.
Q: Given the balance sheet strength, what does the M&A environment look like, and how do you prioritize capital deployment between organic growth and acquisitions? A: Robert Daigle, Chairman and CEO, stated that the company's strategy is to expand participation in AI infrastructure build-outs. For M&A, key criteria include creating good return on invested capital and potentially implementing a similar asset-light business model. He characterized it as an addition to strong organic growth, dependent on availability and valuations in coming quarters.
Q: Can you expand on the first order for equipment used in the production of cooling components for AI semiconductors? A: Robert Daigle, Chairman and CEO, explained that the application is geared towards removing heat directly from semiconductors, a relatively new trend in the industry. A customer is building their process around Amtech's equipment, which is similar to technology previously used for EV battery heat exchangers, now applied to cooling semiconductors and data centers.
Q: Would you characterize the cooling application opportunity as a small niche or something more significant? A: Robert Daigle, Chairman and CEO, stated it is too early to tell. He views it as a success story in the company's efforts to expand in the AI infrastructure space, but the ultimate size will depend on how successful the customer is with the application.
Q: Approximately how soon after the Semicon Taiwan show in September will you start taking orders for the new products? A: Robert Daigle, Chairman and CEO, said the company will be ready to start taking orders after the introduction. He expects to provide more color on the roadmap at the next quarterly call, after gauging how quickly customers are ready to move on the new capabilities.
Q: How long would it take to produce and ship the new machines in production? A: Robert Daigle, Chairman and CEO, noted that the new platforms are similar to existing ones with typical lead times of six to eight weeks. He suspects initial lead times may be on the high end or slightly above, but should fall within normal cycle times within six to nine months.
Q: How is the progress going on the specialty chemicals business? A: Robert Daigle, Chairman and CEO, acknowledged some wins and a growing pipeline. He noted that it takes time to replicate successes with other customers, but the company expects incremental improvement in the coming quarters as it builds momentum behind the pipeline.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
