Amtech Systems, Inc. (NASDAQ:ASYS) Q1 2024 Earnings Call Transcript

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Lisa Gibbs: It was — the team worked really hard this quarter on collections and managing working capital. And I think it will continue to kind of fluctuate. We’ve got this backlog to work down, as well as we’re moving BTU into Massachusetts into a smaller building over the summer. So there will be some CapEx expenditures over the next couple of quarters. I think it will fluctuate, but we’ll continue a very strong focus on working capital. Bob mentioned our partners will be working with them to see where we can leverage their buying power and let them consume some working capital instead of our balance sheet. So it will fluctuate a little bit, but we’ll continue to have a very strong focus on it going forward.

Craig Irwin: Thank you so much. Hey, thanks for taking my questions and good luck.

Lisa Gibbs: Thank you, Craig.

Operator: Thank you. [Operator Instructions] Our next question comes from the line of Mark Miller with The Benchmark Company. Please proceed with your question.

Mark Miller: Thank you for the question and congratulations on your progress on reducing cost. I was just wondering, where are you at right now with relation to some of your financial covenants with your lender?

Lisa Gibbs: So we revised those covenants with our lender. It’s a quarterly EBITDA covenant, and we were in compliance with that well in excess of compliance with that covenant this quarter.

Mark Miller: Okay. You mentioned you were implementing a pricing strategy and trying to pass along some increases you’ve seen. How is that — could you give a little more color on that?

Robert Daigle: Yeah. I’ll talk a little bit more about that, Mark. Yeah. And as I mentioned in the commentary, I think part of what was happening is, we were seeing a little bit of margin pressure because input costs were rising and we really weren’t adjusting pricing accordingly. We’ve changed that and we’ve updated our pricing, our models and how we approach the market. And frankly, that’s been received, okay. I mean customers are never happy about price increases. But in this case, I think it was expected, and we just lagged a little bit, I think, behind where we might have otherwise been. But it’s – we’ve done pretty well with those actions. And again, we’ve got – we have some backlog, which we’ll be working through, so it’s not all immediate. But as we build out our backlog and replace backlog, it’s going to come in at a better margin.

Mark Miller: Okay. Thank you.

Operator: Thank you. Ladies and gentlemen, I see no other questions at this time. I’ll turn the floor back to Mr. Daigle for any final comments.

Robert Daigle: All right. Thank you. Thank you. Thank you again for joining our conference call, and I look forward to updating you on our progress in the months to come. Have a good day, everyone.

Operator: Thank you. This concludes today’s conference call. You may disconnect your lines at this time. Thank you for your participation.

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