Axcelis Announces Improved Financial Results for Third Quarter 2009

BEVERLY, Mass., Nov. 5, 2009 (GLOBE NEWSWIRE) -- Axcelis Technologies, Inc. (Nasdaq:ACLS) today announced improved financial results for the third quarter ended September 30, 2009.

Operations

The Company reported third quarter revenue of $35.0 million, compared to $33.6 million for the second quarter of 2009. Net loss for the third quarter was $15.9 million, or $0.15 per share. This compares to a net loss for the second quarter of 2009 of $22.4 million, or $0.22 per share of which $4.1 million ($.04 per share) was attributable to restructuring charges. In the corresponding quarter for the previous year, the Company reported revenue of $46.5 million, and a net loss of $24.7 million, or $0.24 per share.

Balance Sheet

Cash and cash equivalents, including restricted cash, were $48.5 million at September 30, 2009. Cash burn ($8.5 million in the third quarter of which $2.4 million was attributable to restructuring costs) continues to decline and we expect to approach cash flow break even in the fourth quarter of 2009. The Company ended the quarter with working capital of $177.5 million. Working capital management remains a focus to enhance cash flow. During 2009 the Company has reduced inventories by $17.2 million through the sale of product on hand.

Commenting on the Company's performance, Mary Puma, chairman and CEO, stated, "We're pleased to report improving financial results this quarter in terms of reducing our losses and slowing our cash burn. Actions taken to reduce operating expenses and increase efficiencies throughout the organization are having, and will continue to have, a positive effect on cash flow and profitability. In fact, we expect to approach cash breakeven in the fourth quarter, as increased fab utilization drives aftermarket business and new systems orders." She added, 'We've also made solid progress with our product portfolio through enhancements to productivity and advanced process capabilities. Consequently, we are well positioned to meet customers' technology demands and benefit from enhanced earnings leverage moving into 2010."

Third Quarter 2009 Conference Call

The Company will also be hosting a conference call today at 5:00 pm ET to discuss results for the third quarter of 2009. The call will be available to interested listeners via an audio webcast at Axcelis' home page at www.axcelis.com, or by dialing 1-888-680-0892 (1-617-213-4858 outside North America). Participants calling into the conference call will be requested to provide the passcode: 99888481. Webcast and telephone replays will be available from 8 pm ET on November 5, 2009 until 11:59 pm on February 5, 2010. Dial 1-888-286-8010 (1-617-801-6888 outside North America), and enter conference ID code#71293614.

About Axcelis

Axcelis Technologies, Inc. (Nasdaq:ACLS) headquartered in Beverly, Massachusetts, provides innovative, high-productivity solutions for the semiconductor industry. Axcelis is dedicated to developing enabling process applications through the design, manufacture and complete life support of ion implantation and cleaning systems. The company's Internet address is: www.axcelis.com.

                      Axcelis Technologies, Inc.
                 Consolidated Statements of Operations
               (In thousands, except per share amounts)
                              (Unaudited)


                               Three months ended   Nine months ended
                                  September 30,       September 30,
                                 2009      2008      2009      2008
                               --------  --------  --------  --------
 Revenue
   Product                     $ 25,871  $ 32,490  $ 69,369  $163,543
   Service                        9,132    13,163    24,527    41,360
   Royalties, primarily
    from SEN                          4       801       389     3,334
                               --------  --------  --------  --------
                                 35,007    46,454    94,285   208,237
 Cost of revenue
   Product                       21,681    22,759    62,571   112,906
   Service                        5,506     6,536    15,001    21,866
                               --------  --------  --------  --------
                                 27,187    29,295    77,572   134,772

 Gross profit                     7,820    17,159    16,713    73,465

 Operating expenses
   Research and development       7,648    15,873    24,935    49,680
   Sales and marketing            5,700    12,381    18,864    36,760
   General and administrative     7,874    10,562    27,075    31,254
   Amortization of
    intangible assets                --       656        --     1,968
   Restructuring charges            430       444     5,528     3,512
                               --------  --------  --------  --------
                                 21,652    39,916    76,402   123,174
                               --------  --------  --------  --------

 Loss from operations           (13,832)  (22,757)  (59,689)  (49,709)

 Other income (expense)
   Gain on sale of SEN               --        --     1,080        --
   Equity loss of SEN                --      (968)   (3,238)   (1,100)
   Interest income                   59       319       152     1,400
   Interest expense                  --    (1,724)   (1,676)   (5,005)
   Other, net                    (1,681)      763    (3,197)      314
                               --------  --------  --------  --------
                                 (1,622)   (1,610)   (6,879)   (4,391)
                               --------  --------  --------  --------

 Loss before income taxes       (15,454)  (24,367)  (66,568)  (54,100)

 Income taxes                       444       374       864     1,118
                               --------  --------  --------  --------

 Net loss                      $(15,898) $(24,741) $(67,432) $(55,218)
                               ========  ========  ========  ========

 Net loss per share
   Basic and diluted net
    loss per share             $  (0.15) $  (0.24) $  (0.65) $  (0.54)
                               ========  ========  ========  ========

 Shares used in computing
  basic and diluted
  net loss per share
   Weighted average common
    shares outstanding          103,850   103,002   103,475   102,635
                               ========  ========  ========  ========

                      Axcelis Technologies, Inc.
                      Consolidated Balance Sheets
                            (In thousands)
                              (Unaudited)


                                             Sept. 30,     Dec. 31,
                                               2009         2008
                                             ---------    ---------
               ASSETS
 Current assets
   Cash and cash equivalents                 $  41,244    $  37,694
   Restricted cash                               7,239        8,654
   Accounts receivable, net                     26,632       27,486
   Inventories, net                            123,630      150,113
   Prepaid expenses and other current assets    10,931       17,231
                                             ---------    ---------
     Total current assets                      209,676      241,178

 Property, plant and equipment, net             41,940       44,432
 Investment in SEN                                  --      156,677
 Other assets                                   10,875       12,894
                                             ---------    ---------
                                             $ 262,491    $ 455,181
                                             =========    =========

   LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities
   Accounts payable                          $   6,432    $   8,066
   Accrued compensation                         10,938       15,841
   Warranty                                      1,029        3,137
   Income taxes                                    856          337
   Deferred revenue                             10,093       12,508
   Other current liabilities                     2,868        6,897
   Current portion of convertible
    subordinated debt                               --       83,210
                                             ---------    ---------
     Total current liabilities                  32,216      129,996

 Long-term deferred revenue                        659        1,872
 Other long-term liabilities                     3,982        3,936
                                             ---------    ---------

 Stockholders' equity
   Preferred stock                                  --           --
   Common stock                                    104          103
   Additional paid-in capital                  487,047      483,546
   Treasury stock                               (1,218)      (1,218)
   Accumulated deficit                        (265,911)    (198,479)
   Accumulated other comprehensive income        5,612       35,425
                                             ---------    ---------
                                               225,634      319,377
                                             ---------    ---------
                                             $ 262,491    $ 455,181
                                             =========    =========

CONTACT:  Axcelis Technologies, Inc.
          editorial/media
          Maureen Hart
            978.787.4266
            Maureen.hart@axcelis.com
          financial community
          Stephen Bassett
            978.787.4110
            Stephen.bassett@axcelis.com