and many more. We see strong demand for technologies that enable AI-driven semiconductor manufacturing and advanced packaging. Amtik is well positioned to capitalize on these trends by strengthening its core businesses expanding the technology portfolio and increasing our participation in key process steps across customers' manufacturing roadmaps. I'm excited about the opportunities ahead and confident in our ability to execute, support our customers, and create long-term value for our shareholders. With that, I'll turn the call back to Bob. Thank you, Guy.

I'm very pleased that Guy is stepping into the CEO role. and believe this is the right time to execute this transition. Amtek is entering an exciting new phase of growth with strong momentum in our thermal processing solutions business that includes expanded opportunities in advanced packaging and AI infrastructure applications, has a well-established asset-light business model that delivers strong operating results and has an exceptionally strong balance sheet. I'm excited about the future and confident that Amtek's Best days remain ahead of us. Now I'll turn the call over to Tom for more details concerning our Q3 results.

Thank you, Bob. It is my pleasure to review the financials for the fiscal 2026 third quarter. Following the two-year plus transformation led by Bob, the company is at a place where year-over-year revenue comparisons are meaningful. That began with our second quarter and will be my focus on presenting our financial performance today. AI product demand continues to drive our consolidated growth, namely within our TPS segment. TPS revenue of approximately $17.7 million was up nearly 25% year over year, driven by continued strength in AI-related equipment demand and parts and services revenue in support of a growing install base. 20% of TPS revenue in the third quarter of 2026 is related to parts and services. In the third quarter of 2026, AI revenues accounted for more than 40% of TPS segment revenue, up from a 30s handle in the prior year period. Bookings for AI applications remain strong, and we are experiencing both book and ship in the same quarter as well as book now and ship later on. As a result, our backlog is building for the current quarter as well as into Q1 and Q2 of fiscal 2027. For the third consecutive quarter, company-wide bookings exceeded sales for the period. As mentioned, the SFS segment has lagged, so our growth is being carried by our TPS segment, again, notably for sales related to AI equipment. Total SFS revenues were 4.6 million in the third quarter, down just over 13% from the same period a year ago, primarily as a result of weak demand for PR Hoffman silicon carbide related products. Moving on to gross margins. Once again, the company's product line rationalization and our focus on growing higher margin product lines, including AI advanced packaging solutions, as well as our recurring parts and services business are delivering their intended results, particularly as we are also benefiting from greater scale. Overall gross margins as a percentage of sales increased to 50% in the third quarter of 2026, up nearly 400 basis points from 46.7% in the third quarter of 2025. Selling general administrative expenses increased approximately $600,000 from the prior year quarter. The increase is primarily due to expanding business activities, compensation including executive transitions, and tax and IT consulting fees. Research, development, and engineering expenses more than doubled from the prior year, but were relatively flat compared to Q2. Although we expect this may increase, in the coming quarters as we build out our platform to address next gen and tangential opportunities. Gap net income for the second quarter of fiscal 2026 was approximately $1.7 million or $0.10 per diluted share. This compares to gap net income of approximately $100,000 or $0.01 per share for the prior year period. In the third quarter of 2026, we recorded approximately $300,000 in non-cash charges, primarily due to the sublease of our previously closed ACMI Spartansburg facility related to the disposal of certain fixed assets and an impairment of the ROU lease asset. However, we will be recouping approximately 87% of the monthly future lease expenses from the sublease. The company also recorded approximately $400,000 of stock-based compensation expense in Q3, 2026. The company's gap net income includes approximately $400,000 of foreign currency exchange losses in the third quarter of 2026, as compared to $100,000 in the prior year period primarily driven by a weakening US dollar against the Chinese renminbi. Unrestricted cash and cash equivalents at June 30th, 2026 were 83.1 million compared to 24.4 million at March 31st, 2026 and 17.9 million at December 31st, 2025. The increased cash balance at the end of the third quarter is due primarily to the company raising $56.5 million of net proceeds from a $60 million oversubscribed public offering of common stock in June. The company continued to benefit from operational cash generation, working capital optimization, strong accounts receivable collections from customers, and accounts payable management, and generated $1.1 million in cash flow from operations during the fiscal third quarter of 2026. The quarter and cash balances reflects an additional $1.7 million in inventory from the beginning of the fiscal year to accommodate the increased backlog and order flow in our TPS business segment. The company continues to have no debt. As for the $5 million stock repurchase program, The company did not use any cash for this during the quarter, and no shares have been repurchased since the plan was put in place in December of 2025. Now turning to our outlook, for the fourth fiscal quarter ended September 30th, 2026, the company expects revenue to be in the range of $22.5 million to $24 million. With regards to adjusted EBITDA, the company expects to benefit from its operating leverage and consolidated top line growth to deliver adjusted EBITDA margins in the low to mid teens. Again, AI related equipment sales for the thermal processing segment are anticipated to drive the majority of our revenue growth and account for well over 40% of the segment sales in the fourth quarter of 2026. at the same time we remain disciplined on the SFS side of the business where mature no demand has yet to meaningfully recover and we are managing costs and working capital accordingly. The outlook provided today during our call and in our earnings release is based on an assumed exchange rate between the United States dollar and foreign currencies, changes in the value of foreign currencies in relation to the U.S. dollar, could cause the actual results to differ from expectations. And I will now turn the call over to the operator for questions.

We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster. Your first question comes from Craig Irwin with Roth Capital Partners.

Hey guys, Andrew on for Craig. Congrats on the progress. First one for me, he had a nice jump in TPS backlog. Can you kind of just help us understand how long you kind of expect backlog to convert to revenue and the timing there?

Yeah, primarily over our fiscal, we're going into, this is our fiscal fourth quarter, we're expecting it to carry into primarily first quarter and some into the second quarter of our fiscal year 27.

Perfect. Understood. And then second from me, just within your existing silicon carbide customers, can you remind us kind of what the mix is currently of EV versus, you know, defense, medical, any other industrial customers and maybe any pockets you do see potential areas for growth?

Yeah, I kind of alluded to this. We've seen a market decline in silicon carbide demand. And I'd say it's really de minimis at this point. And I don't really envision a meaningful recovery in demand for our silicon carbide products. We've really de-emphasized that going forward and restructured the business accordingly and really have the majority of our effort continues to focus on driving growth in our AI infrastructure equipment for AI infrastructure equipment. And then again, developing our specialty chemicals business and our parts and service in the mature world. That's where we see the big opportunities. So I really don't, you know, really we don't focus a lot of time on what's happening in silicon carbide anymore.

Thanks for taking my questions, and I'll hop back in the queue. All right, thank you.

Your next question comes from Scott Buck with Titan Partners.

Hi, good afternoon, guys.

Just kind of a follow-up on the backlog. I'm curious how much of that uptick may be a few large hyperscaler or OSAT orders versus a more kind of broad step up? just trying to understand what, you know, how bumpy that is.

So we, yeah, no, we're, you know, our equipment is agnostic in terms of what, where it ends up in terms of the, we're shipping to the OSATs and we're shipping to major OEMs. And it really doesn't matter which hyperscaler it goes into. And frankly, our equipment our equipment would also be used across the spectrum, whether you're talking, you know, all the various GPU, TPU applications would all use the same equipment. So we don't, we aren't really tied, we're tied really to overall demand in these infrastructure build-outs, not necessarily specific to any one player customer.

Okay, that's helpful, Bob. And then I wanted to ask about the Q4 Margin Guide. It looks like you're guiding revenue flat to up, but margin came in at 15%. EBITDA margin came in at 15% in the third quarter, but the language suggests kind of low to mid-teens. That seems to imply maybe a margin step down, or maybe that's just some conservatism. How can we be thinking about that?

You know, again, it always depends a lot on mix. But again, when we say low teens, 13 is the first number in the team, right? It's not 11 or 12. Those aren't teens. So we think of 15 kind of being in that low to mid teens range. That's how we think about it. Okay.

I'm nitpicking here, I guess. And then last, I was hoping to maybe get a little bit more color on capital deployment given the balance sheet strength. What does the M&A environment look like? Would something make sense? Or how do you think about kind of prioritizing things organically?

Yeah, so we've got these, I think, very strong systems. Tailwind's obviously associated with AI infrastructure build-outs. Our vision for the future, our strategy for the future is really to try to expand our participation. So that's one area where we would look to potentially deploy capital. And again, whenever anybody asks me about M&A, I say maybe. because there's a lot of things that have to be in place for it to make sense. When we say synergistic acquisitions, one of the key criteria for us is making sure that anything we bring into the fold does create good return on invested capital. So you might imagine some things we would explore are capabilities we can build on to expand our capability in AI, you could potentially envision things where, you know, we did a lot to really change our financials through business, changing our business models. So to the extent there were opportunities to bring things in where we could create value by, you know, implementing a similar business model, that could be interesting. So I would characterize it as, you know, I'd say It's an addition to what we see as strong organic growth, but it will depend on what's available and what kind of valuations in terms of how we execute on that in the next coming quarters.

That makes a lot of sense. Well, I appreciate the added color, guys. Thank you for the time. All right. Thanks, Guy.

Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Your next question comes from George Marama with Pareto Ventures.

Yeah, hi, thanks for taking my questions. Bob, I was wondering if you could give a little more color on this, you said you got a first order on a cooling application. Can you kind of expand on that a little bit?

Yeah. It's basically direct. The application is really geared towards removing heat directly from the semiconductors. It's an efficient way. It's a relatively new trend, we believe, in the industry. And one of our customers for equipment is basically building their process around our equipment to do so. So it's an interesting application. It's similar to what we were doing back when there was a lot of build out of EV. You know, EV was a booming business. We were selling equipment that was used to do heat exchangers for EV batteries. And this is very similar technology that's being applied to cooling semiconductors and data centers.

Would you characterize the opportunity as like a small little niche thing or more than that?

It's too early to tell, George. I think it's an interesting, you know, we've talked about this before. I've mentioned that, you know, one of our goals is really to expand what we do in the AI infrastructure space. I think this was a success story. thought was important in terms of our efforts starting to pay off in this pivot. But I can't really characterize how big this is going to be. It's going to depend a lot on how successful our customer is here.

Okay. And then you mentioned you have a show in September to introduce some products. Approximately how soon after the show will you start taking orders on these products?

Usually, we're going to get exposure. I mean, we'll be ready to start taking orders. We'll have a better sense for that probably at the next quarterly call after we've introduced to see how quickly customers are ready to move on things. But until we actually introduce it, it's not something we know up front, George. but I think we can provide more color in terms of what we see as a roadmap.

Okay, go ahead. How long would it take to be able to produce the actual machine in production, the ship?

Yes, so right now, this is similar to the platforms we're producing with typical lead times of six to eight weeks. I suspect we'll be on the high end, maybe a little bit north of that. But I don't think it'll be, I think with a little bit of time, it should fall within our normal lead time. But it may take six, nine months before the cycle times get to that point.

Okay. And then how's the progress going on the chemical business?

Any new customer wins? We've had some wins. We've talked about some of those. We have a pipeline, but it takes time. We've built the pipeline. We've got a lot of energy right now going towards replicating some of those successes with other customers. So we're expecting to see some incremental improvement in the coming quarters from those efforts. But it's, you know, it's, again, we've focused really on getting some momentum behind that pipeline right now.

Okay. Thanks, Bob.

All right. Thanks, George. This concludes today's question and answer session. I would now like to turn the conference back over to management for any closing remarks.

Well, thank you, operator. In closing, I want to thank everybody for joining our earnings call today. We look forward to seeing some of you later this month at the Canaccord Genuity Conference in Boston. And thanks again for your continued support of Amtech Systems. Have a good evening.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.