Axcelis Announces Financial Results For Third Quarter 2019

October 31, 2019 at 4:01 PM EDT
Company Introduces Four New Purion Products During the Quarter

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

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 (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 

 

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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SOURCE Axcelis Technologies, Inc.