Axcelis Announces Improved Financial Results for Fourth Quarter and Full Year 2009
Operations
The Company reported fourth quarter revenue of $38.7 million, compared to $35.0 million for the third quarter of 2009. Net loss for the fourth quarter was $10.0 million, or $0.10 per share. This compares to a net loss for the third quarter of 2009 of $15.9 million, or $0.15 per share. In the corresponding quarter for the previous year, the Company reported revenue of $42.0 million, and a net loss of $141.4 million, or $1.37 per share, which included charges for restructuring of $3.4 million ($0.03 per share), impairment of intangibles and long-lived assets of $46.9 million ($0.46 per share), impairment of goodwill of $42.1 million ($0.41 per share) and excess inventory of $23.2 million ($0.23 per share).
For the full year 2009, the Company reported revenue of $133.0 million compared with $250.2 million in 2008. Net loss for the year was $77.5 million, or $0.75 per share which includes charges for restructuring of $5.5 million ($0.05 per share). In 2008, the Company reported a net loss of $196.7 million, or $1.91 per share which included charges for restructuring of $6.9 million ($0.07 per share), impairment of intangible and long-lived assets of $46.9 million ($0.46 per share), impairment of goodwill of $42.1 million ($0.41 per share), and excess inventory of $24.6 million ($0.24 per share).
Balance Sheet
Cash and cash equivalents, including restricted cash, were $52.2 million at December 31, 2009. The company generated $3.7 million in cash during the quarter. The Company ended the quarter with working capital of $163.8 million.
Commenting on the Company's performance, Mary Puma, chairman and CEO, stated, "During the downturn we made positive strides in improving our business model and we are now seeing the rewards. In particular we are pleased that we generated cash in the quarter. While we expect this positive trend to continue and we believe we will be cash flow positive in 2010, quarterly cash flows may vary due to timing of shipments, customer buying patterns and investments in working capital. We are experiencing a significant increase in recent order flow and are forecasting sales to be up across all product lines and service programs. These contributions strengthen our foundation for the future, and we look forward to capitalizing on the significant opportunities that lie ahead."
Fourth Quarter 2009 Conference Call
The Company will host a conference call today at 5:00 pm ET to discuss results for the fourth quarter and full year 2009. The call will be available to interested listeners via an audio webcast at Axcelis' home page at www.axcelis.com, or by dialing 1-888-679-8040 (1-617-213-4851 outside North America). Participants calling into the conference call will be requested to provide the company name, Axcelis Technologies and pass code: 68128785. Webcast and telephone replays will be available from 8 pm ET on February 17, 2010 until 11:59 pm on May 24, 2010. Dial 1-888-286-8010 (617-801-6888 outside North America), and enter conference ID code# 90659114.
Safe Harbor Statement
This document contains forward-looking statements under the SEC safe harbor provisions. These statements, which include our 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, many of which are outside the control of the Company, including the timing of orders and shipments, the conversion of orders to revenue in any particular quarter, or at all, our ability to implement successfully our profit plans, the continuing demand for semiconductor equipment, relative market growth, continuity of business relationships with and purchases by major customers, competitive pressure on sales and pricing, increases in material and other production costs that cannot be recouped in product pricing and global economic, political and financial conditions. 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 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 Twelve Months ended
December 31, December 31,
------------------------- -------------------------
2009 2008 2009 2008
----------- ------------ ----------- ------------
Revenue
Systems $ 29,347 $ 30,732 $ 98,716 $ 194,275
Services 9,390 10,520 33,917 51,880
Royalties, primarily
from SEN -- 725 389 4,059
----------- ------------ ----------- ------------
38,737 41,977 133,022 250,214
Cost of revenue
Systems 21,614 48,404 84,185 161,310
Services 5,772 4,423 20,773 26,289
----------- ------------ ----------- ------------
27,386 52,827 104,958 187,599
Gross profit 11,351 (10,850) 28,064 62,615
Operating expenses
Research and development 7,726 13,582 32,661 63,262
Sales and marketing 6,345 7,813 25,209 44,573
General and
administrative 7,012 11,802 34,087 43,056
Impairment of goodwill -- 42,115 -- 42,115
Impairment of
intangibles and long
lived assets -- 46,949 -- 46,949
Amortization of
intangible assets -- 656 -- 2,624
Restructuring charges 13 3,361 5,541 6,873
----------- ------------ ----------- ------------
21,096 126,278 97,498 249,452
----------- ------------ ----------- ------------
Loss from operations (9,745) (137,128) (69,434) (186,837)
Other income (expense)
Gain on sale of SEN -- -- 1,080 --
Equity loss of SEN -- (2,567) (3,238) (3,667)
Interest income 29 214 181 1,614
Interest expense -- (1,739) (1,676) (6,744)
Other-net (319) (483) (3,516) (169)
----------- ------------ ----------- ------------
(290) (4,575) (7,169) (8,966)
----------- ------------ ----------- ------------
Loss before income taxes (10,035) (141,703) (76,603) (195,803)
Income taxes (credits) 1 (258) 865 861
----------- ------------ ----------- ------------
Net loss $ (10,036) $ (141,445) $ (77,468) $ (196,664)
=========== ============ =========== ============
Net loss per share
Basic and diluted net
loss per share $ (0.10) $ (1.37) $ (0.75) $ (1.91)
=========== ============ =========== ============
Shares used in computing
basic and diluted net
loss per share
Weighted average common
shares outstanding 103,917 103,052 103,586 102,739
=========== ============ =========== ============
Axcelis Technologies, Inc.
Consolidated Balance Sheet
In thousands
(Unaudited)
December 31,
----------------------
2009 2008
---------- ----------
ASSETS
Current assets
Cash and cash
equivalents $ 45,020 $ 37,694
Restricted cash 4,918 8,654
Accounts receivable, net 19,094 27,486
Inventories, net 114,558 150,113
Prepaid expenses and
other current assets 10,016 17,231
---------- ----------
Total current assets 193,606 241,178
Property, plant and
equipment, net 40,868 44,432
Investment in SEN -- 156,677
Long-term restricted cash 2,245 --
Other assets 13,884 12,894
---------- ----------
$ 250,603 $ 455,181
========== ==========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 9,680 $ 8,066
Accrued compensation 9,267 15,841
Warranty 638 3,137
Income taxes 1,499 337
Deferred revenue 5,127 12,508
Other current
liabilities 3,546 6,897
Current portion of
convertible
subordinated debt -- 83,210
---------- ----------
Total current
liabilities 29,757 129,996
Long-term deferred
revenue 563 1,872
Other long-term
liabilities 3,884 3,936
---------- ----------
Stockholders' equity
Preferred stock -- --
Common stock 104 103
Additional paid-in
capital 488,321 483,546
Treasury stock (1,218) (1,218)
Accumulated deficit (275,947) (198,479)
Accumulated other
comprehensive income 5,139 35,425
---------- ----------
216,399 319,377
---------- ----------
$ 250,603 $ 455,181
========== ==========
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SOURCE: Axcelis Technologies, Inc.
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
