Axcelis Announces Financial Results for First Quarter 2013

May 2, 2013 at 4:02 PM EDT

BEVERLY, Mass., May 2, 2013 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the quarter ended March 31, 2013. The Company reported first quarter revenue of $40.7 million, compared to $44.6 million for the fourth quarter of 2012. Net loss for the quarter was $9.0 million, or $(0.08) per share, which includes:  a $0.4 million milestone payment from the dry strip asset sale to Lam Research Corporation; a $2.1 million charge associated with an inventory write off of 300mm dry strip production components; and $1.8 million of restructuring charges.  This compares to a net loss for the fourth quarter of 2012 of $14.8 million, or ($0.14) per share, which included:  a $7.9 million gain from the dry strip asset sale to Lam; a $13.4 million charge associated with an inventory write off; and $0.6 million of restructuring charges. Cash and cash equivalents were $42.4 million at March 31, 2013 compared with $45.0 million at December 31, 2012.

Chairman and CEO Mary Puma said, "During the quarter our Purion M medium current ion implanter was selected for evaluation by two new customers, representing both memory and foundry market segments. Earlier this week we announced the introduction of the Purion XE, a high energy ion implanter, the second member of our Purion platform family.  Our Purion platform is the foundation for all future generation Axcelis implanters. Purion products are key to our future success and will allow us to quickly capitalize on improving market conditions."

Ms. Puma added, "Each member of the Purion family shares a common, powerful 500+ wafers per hour single wafer end station, industry leading source technology and an innovative and productive ultra-pure beam line. The Purion platform was developed in response to customer requirements for absolute beam purity and the most precise dopant placement possible, while ensuring the highest levels of productivity and capital efficiency.  The Purion platform redefines next generation implanter technology and performance and enables the efficient production of leading edge semiconductor devices."

First Quarter 2013 Conference Call
The Company will host a conference call today at 5:00 pm ET to discuss results for the first quarter of 2013.  An audio webcast will be available on the Investor page of Axcelis' website at www.axcelis.com, or by dialing 1.888.680.0878 (1.617.213.4855 outside North America).  Participants calling into the conference call will be requested to provide the passcode:  43640965. A replay of the webcast will be available for 30 days following the conference call.

Safe Harbor Statement
The conference call will contain 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, 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, has been providing innovative, high-productivity solutions for the semiconductor industry for over 35 years. Axcelis is dedicated to developing enabling process applications through the design, manufacture and complete life cycle support of ion implantation, one of the most critical and enabling steps in the IC manufacturing process.  The Company's Internet address is: www.axcelis.com.

Company Contacts

Financial Community:
Jay Zager
978.787.9408

Editorial/Media Community:
Maureen Hart
978.787.4266

Axcelis Technologies, Inc.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)



Three months ended

March 31,

2013

2012

Revenue



Product

$

34,452

$

47,538

Services

6,274

7,468

   Total revenue

40,726

55,006

Cost of revenue



Product

22,181

29,284

Services

5,602

5,186

   Total cost of revenue

27,783

34,470





Gross profit

12,943

20,536





Operating expenses



Research and development

9,206

11,669

Sales and marketing

5,201

6,583

General and administrative

6,590

7,799

Gain on sale of dry strip assets and intellectual property

(368)

—

Restructuring charges

1,801

2,881

   Total operating expenses

22,430

28,932





Loss from operations

(9,487)

(8,396)





Other income (expense)



Interest income

3

9

Other, net

829

(924)

   Total other income (expense)

832

(915)





Loss before income taxes

(8,655)

(9,311)





Income taxes

333

717





Net loss

$

(8,988)

$

(10,028)





Net loss per share



   Basic and Diluted

$

(0.08)

$

(0.09)





Shares used in computing net loss per share



   Basic and diluted weighted average common shares

108,227

107,067

 

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands)

(Unaudited)



March 31,
2013

December 31,
2012

ASSETS



Current assets



Cash and cash equivalents

$

42,441

$

44,986

Accounts receivable, net

23,150

24,843

Inventories, net

98,729

100,234

Restricted cash

103

106

    Prepaid expenses and other current assets

5,519

5,056

Total current assets

169,942

175,225





Property, plant and equipment, net

33,663

34,413

Other assets

12,352

12,520

        Total assets

$

215,957

$

222,158





LIABILITIES AND STOCKHOLDERS' EQUITY



Current liabilities



Accounts payable

$

13,793

$

10,166

Accrued compensation

8,900

7,283

Warranty

1,539

1,700

Income taxes

356

278

Deferred revenue

5,714

6,423

Other current liabilities

3,768

3,932

Total current liabilities

34,070

29,782





Long-term deferred revenue

321

456

Other long-term liabilities

5,713

5,844

         Total liabilities

40,104

36,082





Commitments and contingencies



Stockholders' equity



Preferred stock, $0.001 par value, 30,000 shares authorized; none issued or

      outstanding

—

—

Common stock, $0.001 par value, 300,000 shares authorized; 108,405 shares

      issued and 108,285 shares outstanding at March 31, 2013;108,293 shares

      issued and 108,173 shares outstanding at December 31, 2012


108

108

Additional paid-in capital

505,478

504,643

Treasury stock, at cost, 120 shares at March 31, 2013 and December 31, 2012

(1,218)

(1,218)

Accumulated deficit

(331,465)

(322,477)

Accumulated other comprehensive income

2,950

5,020

          Total stockholders' equity

175,853

186,076

          Total liabilities and stockholders' equity

$

215,957

$

222,158

 

Axcelis Technologies, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)







Three months ended






March 31,






2013

2012

Cash flows from operating activities


Net loss

$ (8,988)

$

(10,028)

Adjustments to reconcile net loss to net cash used for

operating activities:


Depreciation and amortization

1,394

1,896

Gain on sale of dry strip assets and intellectual property

(368)

-

Deferred taxes

56

378

Stock-based compensation expense

839

1,082

Provision for excess inventory

2,211

248

Changes in operating assets & liabilities


Accounts receivable        

1,458

4,810

Inventories

(1,672)

(8,277)

Prepaid expenses and other current assets

(544)

(385)

Accounts payable and other current liabilities

5,043

(2,162)

Deferred revenue

(843)

(3,818)

Income taxes

84

76

Other assets and liabilities

(549)

6,483

Net cash used for operating activities

(1,879)

(9,697)









Cash flows from investing activities


Proceeds from sale of dry strip assets and intellectual

property

400

-

Expenditures for property, plant, and equipment

(150)

(141)

(Increase) decrease in restricted cash

3

(3)

Net cash provided by (used for) investing

activities

253

(144)









Cash flows from financing activities


Proceeds from exercise of stock options

49

802

Proceeds from Employee Stock Purchase Plan

-

175

Net cash provided by financing activities

49

977

Effect of exchange rate changes on cash

(968)

(795)

Net decrease in cash and cash equivalents

(2,545)

(9,659)

Cash and cash equivalents at beginning of period

44,986

46,877

Cash and cash equivalents at end of period

$ 42,441

$

37,218

 

SOURCE Axcelis Technologies, Inc.