Axcelis Announces Financial Results for Third Quarter 2013

November 6, 2013 at 4:05 PM EST

BEVERLY, Mass., Nov. 6, 2013 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the quarter ended September 30, 2013. Highlights for the quarter were:

  • System sales were $20.2 million, a 22% increase over the second quarter 2013, and a 59% increase over the first quarter.
  • System bookings were up 60% and system backlog was up 35% from the second quarter 2013.
  • The Company recognized revenue on its first Purion M medium current implanter.

(Logo:  http://photos.prnewswire.com/prnh/20130905/NE75070LOGO)

The Company reported third quarter revenue of $48.8 million, compared to $47.5 million for the second quarter of 2013. Operating loss for the quarter was $2.8 million, compared to $3.4 million for the second quarter.  Net loss for the quarter was $4.8 million, or ($0.04) per share.  This compares to a net loss for the second quarter of 2013 of $4.0 million, or ($0.04) per share. Cash, cash equivalents and restricted cash were $50.7 million at September 30, 2013 compared with $34.7 million at June 30, 2013.

Chairman and CEO Mary Puma said, "The Purion platform continues to gain traction, our balance sheet is healthy, and Axcelis is well positioned to capitalize on the industry upturn.  We expect to return to profitability in the fourth quarter.  We also expect that during the current upturn, we will return to our last quarterly peak revenues and maintain profitability through the cycle."

Third Quarter 2013 Conference Call
The Company will host a conference call today at 5:00 pm ET to discuss results for the third 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:  47494360. A replay of the webcast will be available for 30 days following the conference call.

Safe Harbor Statement
This press release and the conference call 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

Investor Relations:
Doug Lawson
978.787.9552

Editorial/Media:
Maureen Hart
978.787.4266








Axcelis Technologies, Inc.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)













Three months ended


Nine months ended



September 30,

September 30,


2013

2012

2013

2012

Revenue





     Product

$42,934

$37,093

$118,151

$136,096

     Services

5,897

7,547

18,907

22,664

         Total revenue

48,831

44,640

137,058

158,760

Cost of revenue





     Product

27,339

24,809

74,976

84,692

     Services

4,516

5,464

15,427

16,377

          Total cost of revenue

31,855

30,273

90,403

101,069








Gross profit

16,976

14,367

46,655

57,691








Operating expenses





     Research and development

8,148

9,851

25,857

31,999

     Sales and marketing

5,330

5,470

16,128

18,284

     General and administrative

6,164

6,325

19,165

20,611

     Gain on sale of dry strip assets and intellectual property    

-

-

(1,167)

-

     Restructuring charges

112

578

2,334

3,612

          Total operating expenses

19,754

22,224

62,317

74,506








Loss from operations

(2,778)

(7,857)

(15,662)

(16,815)








Other income (expense)





     Interest income

3

9

8

27

     Interest expense

(193)

-

(308)

-

     Other, net

(1,252)

(627)

(671)

(999)

          Total other income (expense)

(1,442)

(618)

(971)

(972)








Loss before income taxes

(4,220)

(8,475)

(16,633)

(17,787)










Income taxes 

530

243

1,125

1,429










 

Net loss



($4,750)

($8,718)

($17,758)

($19,216)










Net loss per share








        Basic and Diluted

($0.04)

($0.08)

($0.16)

($0.18)










Shares used in computing net loss per share






        Basic and diluted weighted average common shares

109,074

107,855

108,573

107,521










 

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands)

(Unaudited)



September 30,
2013

December 31,
2012

ASSETS



Current assets



Cash and cash equivalents

$

48,317

$

44,986

Accounts receivable, net

29,321

24,843

Inventories, net

94,316

100,234

Restricted cash

1,583

106

    Prepaid expenses and other current assets

5,066

5,056

Total current assets

178,603

175,225





Property, plant and equipment, net

32,311

34,413

Restricted cash, long-term

825

-

Other assets

15,542

12,520

        Total assets

$

227,281

$

222,158





LIABILITIES AND STOCKHOLDERS' EQUITY



Current liabilities



Accounts payable

$

16,075

$

10,166

Accrued compensation

7,309

7,283

Warranty

1,461

1,700

Income taxes

262

278

Deferred revenue

3,911

6,423

 

Current portion of long-term debt

185

-

Other current liabilities


4,250

3,932

Total current liabilities

33,453

29,782





Long-term debt

14,815

-

Long-term deferred revenue

154

456

Other long-term liabilities

6,129

5,844

         Total liabilities

54,551

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; 109,586 shares

     issued and 109,466 shares outstanding at September 30, 2013;108,293 shares

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


110

108

Additional paid-in capital

508,976

504,643

Treasury stock, at cost, 120 shares at September 30, 2013 and December 31,

     2012

(1,218)

(1,218)

Accumulated deficit

(340,235)

(322,477)

Accumulated other comprehensive income

5,097

5,020

          Total stockholders' equity

172,730

186,076

          Total liabilities and stockholders' equity

$

227,281

$

222,158

 

Axcelis Technologies, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)


Nine months ended

September 30,

2013

2012

Cash flows from operating activities


Net loss

$  (17,758)

$  (19,216)

Adjustments to reconcile net loss to net cash used for operating activities:      




 

Depreciation and amortization

3,948

5,419

Gain on sale of dry strip assets and intellectual property

(1,167)

-

Deferred taxes

272

998

Stock-based compensation expense

3,105

3,411

Provision for excess inventory

2,451

678

Changes in operating assets & liabilities


Accounts receivable        

(4,359)

10,143

Inventories

3,455

(3,496)

Prepaid expenses and other current assets

(429)

4,490

Accounts payable and other current liabilities

6,276

(11,601)

Deferred revenue

(2,816)

(5,089)

Income taxes

(14)

(135)

Other assets and liabilities

(3,813)

3,025

Net cash used for operating activities

(10,849)

(11,373)




Cash flows from investing activities


Proceeds from sale of dry strip assets and intellectual property

1,200

-

Expenditures for property, plant, and equipment

(484)

(536)

(Increase) decrease in restricted cash

(1,477)

1

Net cash used for investing activities

(761)

(535)




Cash flows from financing activities


Increase in restricted cash

(825)

-

Financing fees and other expenses

(473)

-

Proceeds from exercise of stock options

1,113

863

Proceeds from Employee Stock Purchase Plan

197

179

Proceeds from issuance of Term Loan

15,000

-

Net cash provided by financing activities

15,012

1,042

Effect of exchange rate changes on cash

(71)

(791)

Net increase (decrease) in cash and cash equivalents

3,331

(11,657)

Cash and cash equivalents at beginning of period

44,986

46,877

Cash and cash equivalents at end of period

$48,317

$ 35,220

 

SOURCE Axcelis Technologies, Inc.