Axcelis Announces Financial Results For Second Quarter 2018

August 2, 2018 at 4:01 PM EDT
Company Reports Accelerated Gross Margin Performance and Remains Confident in Future Growth

BEVERLY, Mass., Aug. 2, 2018 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the second quarter ended June 30, 2018.

The Company reported second quarter revenue of $119.3 million, compared to $122.2 million for the first quarter of 2018. Operating profit for the quarter was $19.3 million, compared to $18.5 million for the first quarter. Net income for the quarter was $14.7 million, or $0.43 per diluted share, compared to net income for the first quarter of 2018 of $13.9 million, or $0.41 per diluted share. Cash, cash equivalents and restricted cash were $154.9 million at June 30, 2018, compared to $148.5 million on March 31, 2018.

"We're very pleased with our financial performance in the second quarter driven by solid revenue and earnings growth. Our gross margin initiatives continue to deliver improvements, yielding results above guidance. Demand for our products remains strong across our diverse customer base, and the industry continues to be in a robust, sustained cycle fueled by growth in IoT and big data," said President and CEO Mary Puma. "We are still targeting our $450 million business model in 2018, and anticipate 2019 to be another solid year for equipment CAPEX."

Business Outlook
For the third quarter ending September 30, 2018, Axcelis expects revenues of between $95 and $100 million. Gross margin in the third quarter is expected to be around 40%. Third quarter operating profit is forecasted to be approximately $8-10 million. Earnings per share is expected to be between $0.15 and $0.20.

Second Quarter 2018 Conference Call
The Company will host a conference call today at 5:00 pm ET to discuss the Company's results for the second quarter. 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 pass code: 2690966. 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 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

June 30,

Six months ended

June 30,




2018

2017

2018

2017











Revenue:











Product

$

112,521

$

96,539

$

228,543

$

178,517

Services

6,812

6,251

12,975

11,166


Total revenue

119,333

102,790

241,518

189,683

Cost of Revenue:













Product

63,913

57,689

132,287

104,486

Services

6,420

6,039

13,075

11,421


Total cost of revenue

70,333

63,728

145,362

115,907















Gross profit

49,000

39,062

96,156

73,776















Operating expenses:











Research and development

12,553

11,256

24,786

21,151

Sales and marketing

8,912

7,485

17,323

14,534

General and administrative

8,268

7,791

16,278

14,848


Total operating expenses

29,733

26,532

58,387

50,533















Income from operations

19,267

12,530

37,769

23,243















Other (expense) income:













Interest income

515

111

925

180

Interest expense

(1,127)

(1,336)

(2,464)

(2,447)

Other, net

(1,016)

16

(1,118)

(138)


Total other expense

(1,628)

(1,209)

(2,657)

(2,405)















Income before income taxes

17,639

11,321

35,112

20,838












Income tax provision (benefit)

2,970

(2,611)

6,528

(2,600)












Net income

$

14,669

$

13,932

$

28,584

$

23,438















Net income per share:












Basic

$

0.46

$

0.46

$

0.89

$

0.78


Diluted

$

0.43

$

0.42

$

0.84

$

0.72















Shares used in computing net income per share:












Basic weighted average common shares

32,214

30,589

32,154

30,183


Diluted weighted average common shares

33,942

33,168

34,048

32,779

 

Axcelis Technologies, Inc.
Consolidated Balance Sheets
(In thousands, except per share amounts)
(Unaudited)

 







June 30,

December 31,


2018

2017

      ASSETS





Current assets:

Cash and cash equivalents

$

147,297

$

133,407

Short-term restricted cash

730

750

Accounts receivable, net

74,429

75,302

Inventories, net

129,554

120,544

Prepaid expenses & other assets



10,925

9,772

         Total current assets

362,935

339,775

Property, plant and equipment, net

36,312

36,168

Restricted cash

6,915

6,723

Deferred income taxes

77,005

83,148

Other assets

25,264

22,404


Total assets

$

508,431

$

488,218

LIABILITIES AND STOCKHOLDERS' EQUITY







Accounts payable

$

32,633

$

32,642

Accrued compensation

12,727

20,955

Warranty

4,698

4,112

Income taxes

163

273

Deferred revenue

11,927

16,181

Other current liabilities

4,542

5,124

            Total current liabilities

66,690

79,287

Sales leaseback obligation

47,735

47,714

Long-term deferred revenue

3,248

1,964

Other long-term liabilities

5,144

5,643


Total liabilities

122,817

134,608

Commitments and contingencies







Stockholders' equity:






Common stock, $0.001 par value, 75,000 shares authorized; 32,331 shares issued and 
outstanding at June 30, 2018; 32,048 shares issued and outstanding at December 31,
2017

32

32

Additional paid-in capital

559,207

556,147

Accumulated deficit

(174,561)

(204,745)

Accumulated other comprehensive income



936

2,176


Total stockholders' equity

385,614

353,610


Total liabilities and stockholders' equity

$

508,431

$

488,218









 

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SOURCE Axcelis Technologies, Inc.