Axcelis Announces Financial Results For First Quarter 2019

May 7, 2019 at 4:55 PM EDT
Gross Margins and Expense Management Drive Strong Earnings Performance

BEVERLY, Mass., May 7, 2019 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the first quarter ended March 31, 2019. 

The Company reported first quarter revenue of $91.5 million, compared to $105.7 million for the fourth quarter of 2018. Operating profit for the quarter was $7.1 million, compared to $11.5 million for the fourth quarter. Net income for the quarter was $6.1 million, or $0.18 per diluted share, compared to net income for the fourth quarter of $8.5 million, or $0.25. Gross margin for the quarter was 41.0%, compared to 41.2% in the fourth quarter. Cash, cash equivalents and restricted cash were $170.0 million on March 31, 2019, compared to $184.9 million on December 31, 2018.

"I am very pleased with the Company's first quarter gross margins and expense management, which drove strong earnings performance. In this current downturn, we are focused on managing for profitability given that revenues for the full year could be down 15% compared to 2018. We will continue to invest in R&D for innovative Purion product line extensions," commented President and CEO Mary Puma. "These new segment-focused products provide our customers with significant value from technological advantages, and will drive strong growth for the Company when the market rebounds."

Business Outlook
For the second quarter ending June 30, 2019, Axcelis expects revenues to be approximately $80 million. Gross margin in the second quarter is expected to be approximately 40%. Second quarter operating profit is forecasted to be approximately $2 million. Earnings per diluted share is expected to be in the range of $0.01-0.03.

First Quarter 2019 Conference Call
The Company will host a conference call to discuss the Company's results for the first quarter 2019 on Wednesday, May 8, 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: 2127776. 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 (Nasdaq: 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 

 
   

March 31,

 
   

2019

  

2018

  

Revenue:

              

Product

  

$

84,197

  

$

116,022

  

Services

    

7,280

    

6,163

  

Total revenue

    

91,477

    

122,185

  

Cost of revenue:

              

Product

    

47,338

    

68,374

  

Services

    

6,633

    

6,655

  

Total cost of revenue

    

53,971

    

75,029

  

Gross profit

    

37,506

    

47,156

  

Operating expenses:

              

Research and development

    

13,685

    

12,233

  

Sales and marketing

    

8,918

    

8,411

  

General and administrative

    

7,807

    

8,010

  

Total operating expenses

    

30,410

    

28,654

  

Income from operations

    

7,096

    

18,502

  

Other (expense) income:

              

Interest income

    

841

    

410

  

Interest expense

    

(1,230)

    

(1,337)

  

Other, net

    

(173)

    

(102)

  

Total other expense

    

(562)

    

(1,029)

  

Income before income taxes

    

6,534

    

17,473

  

Income tax provision

    

472

    

3,558

  

Net income

  

$

6,062

  

$

13,915

  

Net income per share:

              

Basic

  

$

0.19

  

$

0.43

  

Diluted

  

$

0.18

  

$

0.41

  

Shares used in computing net income per share:

              

Basic weighted average common shares

    

32,683

    

32,094

  

Diluted weighted average common shares

    

34,224

    

34,123

  
               

 

 

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)

  
   
   
   

March 31,

 

December 31,

 
   

2019

  

2018

  

ASSETS

              

Current assets:

              

Cash and cash equivalents

  

$

163,104

  

$

177,993

  

Short-term restricted cash

    

149

    

—

  

Accounts receivable, net

    

70,947

    

78,727

  

Inventories, net

    

134,051

    

129,000

  

Prepaid expenses and other current assets

    

12,161

    

11,051

  

Total current assets

    

380,412

    

396,771

  

Property, plant and equipment, net

    

19,638

    

41,149

  

Operating lease assets

    

7,453

    

—

  

Finance lease assets, net

    

22,895

    

—

  

Long-term restricted cash

    

6,715

    

6,909

  

Deferred income taxes

    

71,357

    

71,939

  

Other assets

    

34,985

    

31,673

  

Total assets

  

$

543,455

  

$

548,441

  

LIABILITIES AND STOCKHOLDERS' EQUITY

              

Current liabilities:

              

Accounts payable

  

$

29,641

  

$

35,955

  

Accrued compensation

    

6,153

    

19,218

  

Warranty

    

4,319

    

4,819

  

Income taxes

    

491

    

462

  

Deferred revenue

    

16,639

    

19,513

  

Other current liabilities

    

8,815

    

5,030

  

Total current liabilities

    

66,058

    

84,997

  

Finance lease obligation

    

48,549

    

47,757

  

Long-term deferred revenue

    

3,842

    

3,071

  

Other long-term liabilities

    

7,853

    

4,279

  

Total liabilities

    

126,302

    

140,104

  

Commitments and contingencies

             

Stockholders' equity:

              

Common stock, $0.001 par value, 75,000 shares authorized; 32,881 shares issued and
outstanding at March 31, 2019; 32,558 shares issued and outstanding at December 31, 2018

    

33

    

33

  

Additional paid-in capital

    

568,335

    

565,116

  

Accumulated deficit

    

(151,198)

    

(157,260)

  

Accumulated other comprehensive income

   

(17)

    

448

  

Total stockholders' equity

    

417,153

    

408,337

  

Total liabilities and stockholders' equity

  

$

543,455

  

$

548,441

  
               

 

 

 

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SOURCE Axcelis Technologies, Inc.