Axcelis Delivers Strong Second Quarter 2011 Results, Exceeding Guidance

August 4, 2011 at 4:05 PM EDT

BEVERLY, Mass., Aug 4, 2011 (GlobeNewswire via COMTEX) --

Axcelis Technologies, Inc. (Nasdaq:ACLS) today announced financial results for the second quarter ended June 30, 2011. Revenue for the second quarter was $93.4 million, compared with $93.2 million in Q1, and $58.2 million for the same period a year ago. Net income for the quarter was $4.2 million, or $0.04 per diluted share. Prior quarter net income was $1.8 million or $0.02 per diluted share, and in the prior year period, the company reported a net loss of $4.5 million or $0.04 cents per share. Cash and cash equivalents were $37.9 million on June 30, 2011.

Commenting on the Company's performance, Chairman and CEO Mary Puma said, "Axcelis had a very strong second quarter. Revenues and EPS exceeded the high end of guidance, and our gross margin improved significantly. Although the economic climate was not as robust as in the prior quarter, customers continue to recognize the strength of our product offerings and we were able to achieve improved financial performance. While the industry outlook for the second half of the year remains somewhat uncertain, we expect our penetration of key accounts to continue due to the competitiveness of our products."

Second Quarter 2011 Conference Call

The Company will host a conference call today at 5:00 pm ET to discuss the second quarter of 2011. 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 1-888-679-8018 (1-617-213-4845 outside North America). Participants calling into the conference call will be requested to provide the company name, Axcelis Technologies and pass code: 41102197. Webcast replays will be available from 8 pm ET on August 4, 2011 until 11:59 pm on September 3, 2011.

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 cycle 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       Six months ended
                                  June 30,               June 30,

                              2011       2010        2011        2010
                           ---------  ----------  ----------  -----------
  Revenue
   Product                  $ 84,334    $ 50,693   $ 170,937     $ 90,971

   Service                     9,046       7,510      15,613       15,732
                           ---------  ----------  ----------  -----------
                              93,380      58,203     186,550      106,703
  Cost of revenue
   Product                    52,905      33,690     109,778       64,010

   Service                     6,337       4,645      11,553        9,818
                           ---------  ----------  ----------  -----------
                              59,242      38,335     121,331       73,828

  Gross profit                34,138      19,868      65,219       32,875
  Operating expenses
    Research and
     development              11,829       9,477      23,647       18,610
    Sales and marketing        7,675       6,606      15,494       13,210
    General and
     administrative            8,416       7,464      17,471       15,164
                           ---------  ----------  ----------  -----------

                              27,920      23,547      56,612       46,984
                           ---------  ----------  ----------  -----------

  Income (loss) from
   operations                  6,218     (3,679)       8,607     (14,109)

  Other income (expense)
    Interest income               11          25          17           54

    Other, net               (1,158)         342     (1,608)         (65)
                           ---------  ----------  ----------  -----------

                             (1,147)         367     (1,591)         (11)
                           ---------  ----------  ----------  -----------

  Income (loss) before
   income taxes                5,071     (3,312)       7,016     (14,120)


  Income taxes                   844       1,217         977        1,510
                           ---------  ----------  ----------  -----------


  Net income (loss)          $ 4,227   $ (4,529)     $ 6,039   $ (15,630)
                           =========  ==========  ==========  ===========

  Net income (loss) per share

    Basic                     $ 0.04    $ (0.04)      $ 0.06     $ (0.15)
                           =========  ==========  ==========  ===========

    Diluted                   $ 0.04    $ (0.04)      $ 0.06     $ (0.15)
                           =========  ==========  ==========  ===========

  Shares used in
   computing basic and
   diluted net income
  (loss) per share
    Basic weighted
     average common
     shares                  106,097     104,170     106,017      104,143
                           =========  ==========  ==========  ===========
    Diluted weighted
     average common
     shares                  108,911     104,170     109,723      104,143
                           =========  ==========  ==========  ===========




                 Axcelis Technology
             Consolidated Balance Sheets
                     In thousands
                     (Unaudited)



                                          December
                              June 30,      31,
                                2011        2010
                             ----------  ----------
           ASSETS
  Current assets
    Cash and cash
     equivalents               $ 37,857    $ 45,743
    Accounts receivable,
     net                         57,969      57,888
    Inventories, net            124,273     109,653
    Prepaid expenses and
     other current assets        11,177      15,346
                             ----------  ----------
       Total current assets     231,276     228,630

  Property, plant and
   equipment, net                38,106      38,594
  Long-term restricted cash         116         107

  Other assets                   17,914      13,541
                             ----------  ----------

                              $ 287,412   $ 280,872
                             ==========  ==========

       LIABILITIES AND
     STOCKHOLDERS' EQUITY
  Current liabilities
    Accounts payable           $ 30,904    $ 36,709
    Accrued compensation         11,399      10,597
    Warranty                      4,131       2,556
    Income taxes                    650          --
    Deferred revenue             10,933      13,859
    Other current
     liabilities                  4,518       4,408
                             ----------  ----------
       Total current
        liabilities              62,535      68,129

  Long-term deferred
   revenue                        2,374       2,417
  Other long-term
   liabilities                    5,317       4,759
                             ----------  ----------


  Stockholders' equity
    Preferred stock                  --          --
    Common stock                    106         106
    Additional paid-in
     capital                    496,583     493,967
    Treasury stock              (1,218)     (1,218)
    Accumulated deficit       (287,481)   (293,520)
    Accumulated other
     comprehensive income         9,196       6,232
                             ----------  ----------

                                217,186     205,567
                             ----------  ----------

                              $ 287,412   $ 280,872
                             ==========  ==========




                      Axcelis Technologies, Inc.
                 Consolidated Statements of Cash Flow
                             In thousands
                             (Unaudited)


                                                 Six months ended
                                                     June 30,
                                              ----------------------

                                                 2011       2010
                                              ---------  -----------
  Cash flows from operating activities:
   Net income (loss)                            $ 6,039   $ (15,630)
   Adjustments to reconcile net income
    (loss) to net cash
   used for operating activities:
    Depreciation and amortization                 4,009        3,711
    Taxes                                            16           --
    Stock-based compensation expense              2,124        1,568
    Provision for excess inventory                  536        1,331
    Changes in operating assets & liabilities:
     Accounts receivable                            571     (16,011)
     Inventories                               (13,894)       13,844
     Prepaid expenses and other current
      assets                                      4,442      (5,051)
     Accounts payable & other current
      liabilities                               (3,618)       11,502
     Deferred revenue                           (2,989)        5,366
     Income taxes                                   629        (110)

     Other assets and liabilities               (5,920)        1,673
                                              ---------  -----------
       Net cash provided by (used for)
        operating activities                    (8,055)        2,193
  Cash flows from investing activities:
     Expenditures for property, plant, and
      equipment                                 (1,231)        (480)

     (Increase) decrease in restricted cash         (9)        3,116
                                              ---------  -----------
       Net cash provided by (used for)
        investing activities                    (1,240)        2,636
  Cash flows from financing activities:
    Financing fees and other expenses             (194)        (514)
    Proceeds from exercise of stock options         239           55
    Proceeds from Employee Stock Purchase
     Plan                                           275          206
                                              ---------  -----------
       Net cash provided by (used for)
        financing activities                        320        (253)

  Effect of exchange rate changes on cash         1,089      (1,710)
                                              ---------  -----------
  Net increase (decrease) in cash and cash
   equivalents                                  (7,886)        2,866
  Cash and cash equivalents at beginning of
   period                                        45,743       45,020
                                              ---------  -----------

  Cash and cash equivalents at end of period   $ 37,857     $ 47,886
                                              =========  ===========

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SOURCE: Axcelis Technologies, Inc.

CONTACT: Maureen Hart
(editorial/media)
978.787.4266
maureen.hart@axcelis.com
Jay Zager
(financial community)
978.787.9408
jay.zager@axcelis.com