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Axcelis Announces Financial Results For Third Quarter 2019

Company Introduces Four New Purion Products During the Quarter

BEVERLY, Mass., Oct. 31, 2019 /PRNewswire/ -- Axcelis Technologies, Inc. (ACLS) today announced financial results for the third quarter ended September 30, 2019.  

Axcelis Technologies, Inc. (PRNewsFoto/Axcelis Technologies, Inc.) (PRNewsFoto/)

The Company reported third quarter revenue of $69.5 million, compared to $74.3 million for the second quarter of 2019. Operating profit for the quarter was $1.9 million, compared to $2.0 million for the second quarter. Net income for the quarter was $0.7 million, or $0.02 per diluted share, compared to net income for the second quarter of $0.6 million, or $0.02 per diluted share. Gross margin for the quarter was 44%, compared to 42.7% in the second quarter. Cash, cash equivalents and restricted cash were $162.2 million on September 30, 2019, compared to $143.2 million on June 30, 2019.

President and CEO Mary Puma commented, "Axcelis is uniquely positioned to solve customers' high value, high impact, ion implantation challenges. We're excited about the recent launch of our new high current and high energy Purion products, which were developed to meet these challenges in emerging market segments, timed perfectly for the market recovery. These new products and our close partnerships with customers will allow us to grow and put us on a path to achieve our $650M target business model."

Executive Vice President and CFO Kevin Brewer noted, "I am very pleased with our third quarter financial performance. With in-line revenues and EPS, stronger gross margins, and tight cost controls, we were profitable for the quarter. We believe the quarter was the bottom of the cycle for Axcelis which means we have maintained through-cycle profitability for the first time as a public company. This is an indication of the many changes we have made to our business as we drive revenue growth and profitability."

Business Outlook

For the fourth quarter ending December 31, 2019, Axcelis expects revenue to be in the range of $92-100 million. Gross margin in the fourth quarter is expected to be approximately 38%. Fourth quarter operating profit is forecasted to be approximately $6.0 million to $9.0 million. Earnings per diluted share is expected to be in the range of $0.14-0.20.

Third Quarter 2019 Conference Call

The Company will host a call to discuss the results for the third quarter 2019 on Friday, November 1, 2019 at 8:30 am ET. The call will be available to interested listeners via an audio webcast that can be accessed through the Investors page of Axcelis' website at www.axcelis.com, or by dialing 866.588.8911 (707.294.1561 outside North America). Participants calling into the conference call will be requested to provide the company name, Axcelis Technologies, and Conference ID: 9627479. Webcast replays will be available for 30 days following the call.

Safe Harbor Statement

This press release and the conference call contain forward-looking statements under the Private Securities Litigation Reform Act safe harbor provisions. These statements, which include our expectations for spending in our industry and guidance for future financial performance, are based on management's current expectations and should be viewed with caution. They are subject to various risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are outside the control of the Company, including that customer decisions to place orders or our product shipments may not occur when we expect, that orders may not be converted to revenue in any particular quarter, or at all, whether demand will continue for the semiconductor equipment we produce or, if not, whether we can successfully meet changing market requirements, and whether we will be able to maintain continuity of business relationships with and purchases by major customers. Increased competitive pressure on sales and pricing, increases in material and other production costs that cannot be recouped in product pricing and instability caused by changing global economic, political or financial conditions could also cause actual results to differ materially from those in our forward-looking statements. These risks and other risk factors relating to Axcelis are described more fully in the most recent Form 10-K filed by Axcelis and in other documents filed from time to time with the Securities and Exchange Commission.

About Axcelis:

Axcelis (ACLS), headquartered in Beverly, Mass., has been providing innovative, high-productivity solutions for the semiconductor industry for over 40 years. Axcelis is dedicated to developing enabling process applications through the design, manufacture and complete life cycle support of ion implantation systems, one of the most critical and enabling steps in the IC manufacturing process. Learn more about Axcelis at www.axcelis.com.

Company Contacts

Investor Relations:
Doug Lawson
978.787.9552

Editorial/Media:
Maureen Hart
978.787.4266

 

Axcelis Technologies, Inc.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)


















Three months ended 


Nine months ended





September 30,


September 30,




2019


2018


2019


2018


Revenue:














Product


$

64,290


$

88,496


$

217,201


$

317,039


Services



5,163



6,878



18,034



19,853


Total revenue



69,453



95,374



235,235



336,892


Cost of revenue:














Product



33,587



49,136



118,105



181,423


Services



5,285



6,325



17,294



19,400


Total cost of revenue



38,872



55,461



135,399



200,823


Gross profit



30,581



39,913



99,836



136,069


Operating expenses:














Research and development



12,930



12,845



40,335



37,631


Sales and marketing



8,057



7,923



25,411



25,246


General and administrative



7,707



8,477



23,097



24,755


Total operating expenses



28,694



29,245



88,843



87,632


Income from operations



1,887



10,668



10,993



48,437


Other (expense) income:














Interest income



687



593



2,373



1,518


Interest expense



(1,308)



(1,323)



(3,849)



(3,787)


Other, net



(890)



(592)



(1,252)



(1,710)


Total other expense



(1,511)



(1,322)



(2,728)



(3,979)


Income before income taxes



376



9,346



8,265



44,458


Income tax (benefit) provision



(328)



508



943



7,036


Net income


$

704


$

8,838


$

7,322


$

37,422


Net income per share:














Basic


$

0.02


$

0.27


$

0.22


$

1.16


Diluted


$

0.02


$

0.26


$

0.22


$

1.10


Shares used in computing net income per share:













Basic weighted average common shares


32,344



32,365



32,584



32,225


Diluted weighted average common shares


33,323



33,973



33,821



34,032


 

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)












September 30,


December 31,




2019


2018


ASSETS








Current assets:








Cash and cash equivalents


$

155,317


$

177,993


Short-term restricted cash



149




Accounts receivable, net



49,046



78,727


Inventories, net



138,353



129,000


Prepaid expenses and other current assets



11,050



11,051


Total current assets



353,915



396,771


Property, plant and equipment, net



25,130



41,149


Operating lease assets



6,175




Finance lease assets, net



22,231




Long-term restricted cash



6,707



6,909


Deferred income taxes



71,121



71,939


Other assets



45,198



31,673


Total assets


$

530,477


$

548,441


LIABILITIES AND STOCKHOLDERS' EQUITY








Current liabilities:








Accounts payable


$

21,320


$

35,955


Accrued compensation



6,961



19,218


Warranty



3,251



4,819


Income taxes



269



462


Deferred revenue



23,300



19,513


Current portion of long-term debt



252




Other current liabilities



7,674



5,030


Total current liabilities



63,027



84,997


Finance lease obligation



48,297



47,757


Long-term deferred revenue



4,141



3,071


Other long-term liabilities



7,165



4,279


       Total liabilities



122,630



140,104


Commitments and contingencies








Stockholders' equity:








Common stock, $0.001 par value, 75,000 shares authorized; 32,397 shares issued and outstanding at September 30, 2019; 32,558 shares issued and outstanding at December 31, 2018



32



33


Additional paid-in capital



559,063



565,116


Accumulated deficit



(149,938)



(157,260)


Accumulated other comprehensive (loss) income



(1,310)



448


          Total stockholders' equity



407,847



408,337


Total liabilities and stockholders' equity


$

530,477


$

548,441










 



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