Axcelis Announces Financial Results for Third Quarter 2010
BEVERLY, Mass., Nov 3, 2010 (GlobeNewswire via COMTEX) --
Axcelis Technologies, Inc. (Nasdaq:ACLS) today announced financial results for the third quarter ended September 30, 2010. The Company reported third quarter revenue of $75.1 million, compared to $58.2 million for the second quarter of 2010, a 29% increase over the prior quarter. Net loss for the quarter was $6.3 million, or $0.06 per share, of which $1.5 million ($0.01 per share) is attributable to non-cash foreign exchange losses. This compares to a net loss for the second quarter of 2010 of $4.5 million, or $0.04 per share. Loss from operations improved 6.6% over the second quarter. The Company reported a 77% increase in systems revenues and a 48% jump in systems orders over the previous quarter. Cash and cash equivalents, including restricted cash, were $52.9 million at September 30, 2010. The Company ended the quarter with working capital of $156.0 million.
"Momentum across our product lines continues to build. Ongoing innovation in ion implantation and plasma cleaning technology has propelled significant growth in our revenues and orders across all industry segments," said Mary Puma, chairman and CEO. "Our outstanding win rate demonstrates that customers see value in our combination of enabling process technology and industry leading productivity. We're confident this will continue to translate into market share gains. Our strategy and business model support a return to profitability beginning with the fourth quarter of 2010."
Third Quarter 2010 Conference Call
The Company will host a conference call today at 5:00 pm ET to discuss results for the third quarter 2010. The call will be available to interested listeners via an audio webcast that can be accessed through Axcelis' home page at www.axcelis.com, or by dialing 1-888-713-4199 (1-617-213-4861 outside North America). Participants calling into the conference call will be requested to provide the company name, Axcelis Technologies, and pass code: 70472378. Webcast and telephone replays will be available from 8 pm ET on November 3, 2010 until 11:59 pm on February 1, 2011. Dial 1- 888-286-8010 (1-617-801-6888 outside North America), and enter conference ID code# 32926165.
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 Nine months ended
September 30, September 30,
2010 2009 2010 2009
---------- ----------- ----------- -----------
Revenue
Product $ 66,162 $ 25,871 $ 157,133 $ 69,369
Service 8,944 9,132 24,676 24,527
Royalties from SEN -- 4 -- 389
---------- ----------- ----------- -----------
75,106 35,007 181,809 94,285
Cost of revenue
Product 47,848 21,681 111,858 62,571
Service 5,788 5,506 15,606 15,001
---------- ----------- ----------- -----------
53,636 27,187 127,464 77,572
Gross profit 21,470 7,820 54,345 16,713
Operating expenses
Research and
development 9,872 7,648 28,482 24,935
Sales and marketing 7,151 5,700 20,361 18,864
General and
administrative 7,885 7,874 23,049 27,075
Restructuring charges -- 430 -- 5,528
---------- ----------- ----------- -----------
24,908 21,652 71,892 76,402
---------- ----------- ----------- -----------
Loss from operations (3,438) (13,832) (17,547) (59,689)
Other income (expense)
Gain on sale of SEN -- -- -- 1,080
Equity loss of SEN -- -- -- (3,238)
Interest income 15 59 69 152
Interest expense -- -- -- (1,676)
Other, net (1,996) (1,681) (2,061) (3,197)
---------- ----------- ----------- -----------
(1,981) (1,622) (1,992) (6,879)
---------- ----------- ----------- -----------
Loss before income
taxes (5,419) (15,454) (19,539) (66,568)
Income taxes 854 444 2,364 864
---------- ----------- ----------- -----------
Net loss $ (6,273) $ (15,898) $ (21,903) $ (67,432)
========== =========== =========== ===========
Net loss per share
Basic and diluted net
loss per share $ (0.06) $ (0.15) $ (0.21) $ (0.65)
========== =========== =========== ===========
Shares used in
computing basic and
diluted net loss per
share
Weighted average
common shares 104,628 103,850 104,307 103,475
========== =========== =========== ===========
Axcelis Technologies, Inc.
Consolidated Balance Sheets
In thousands
(Unaudited)
September December
30, 31,
2010 2009
---------- ----------
ASSETS
Current assets
Cash and cash
equivalents $ 49,116 $ 45,020
Restricted cash 3,742 4,918
Accounts receivable, net 40,957 19,094
Inventories, net 103,579 114,558
Prepaid expenses and
other current assets 13,046 10,016
---------- ----------
Total current assets 210,440 193,606
Property, plant and
equipment, net 38,904 40,868
Long-term restricted cash -- 2,245
Other assets 9,004 13,884
---------- ----------
$ 258,348 $ 250,603
========== ==========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 25,507 $ 9,680
Accrued compensation 10,828 9,267
Warranty 1,629 638
Income taxes 1,725 1,499
Deferred revenue 10,170 5,127
Other current
liabilities 4,561 3,546
---------- ----------
Total current
liabilities 54,420 29,757
Long-term deferred
revenue 1,365 563
Other long-term
liabilities 4,023 3,884
---------- ----------
Stockholders' equity
Preferred stock -- --
Common stock 105 104
Additional paid-in
capital 492,343 488,321
Treasury stock (1,218) (1,218)
Accumulated deficit (297,850) (275,947)
Accumulated other
comprehensive income 5,160 5,139
---------- ----------
198,540 216,399
---------- ----------
$ 258,348 $ 250,603
========== ==========
Axcelis Technologies, Inc.
Consolidated Statements of Cash Flow
In thousands
(Unaudited)
Nine months ended
September 30,
------------------------
2010 2009
----------- -----------
Cash flows from operating activities
Net loss $ (21,903) $ (67,432)
Adjustments to reconcile net loss to net
cash used for operating activities
Undistributed loss of SEN -- 3,238
Depreciation and amortization 5,367 5,593
Gain on sale of SEN -- (1,080)
Accretion of premium on convertible
debt -- 133
Stock-based compensation expense 2,953 3,594
Provision for excess inventory 1,734 9,268
Changes in operating assets &
liabilities
Accounts receivable (21,890) 1,097
Inventories 9,282 18,091
Prepaid expenses and other current
assets (2,747) 6,468
Accounts payable & other current
liabilities 20,386 (12,908)
Deferred revenue 5,852 (3,650)
Income taxes 201 480
Other assets and liabilities 2,357 (710)
----------- -----------
Net cash provided by (used for)
operating activities 1,592 (37,818)
Cash flows from investing activities
Expenditures for property, plant, and
equipment (761) (381)
Decrease in restricted cash 3,421 1,666
Proceeds from sale of SEN -- 132,847
Payments related to sale of SEN -- (10,590)
----------- -----------
Net cash provided by investing
activities 2,660 123,542
Cash flows from financing activities
Repayment of convertible debt -- (83,344)
Financing fees and other expenses (523) --
Proceeds from exercise of stock options 104 --
Proceeds from Employee Stock Purchase
Plan 206 65
----------- -----------
Net cash used for financing
activities (213) (83,279)
Effect of exchange rate changes on cash 57 1,105
----------- -----------
Net increase in cash and cash equivalents 4,096 3,550
Cash and cash equivalents at beginning of
period 45,020 37,694
----------- -----------
Cash and cash equivalents at end of
period $ 49,116 $ 41,244
=========== ===========
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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
