Axcelis Announces Financial Results For Fourth Quarter And Full Year 2013

February 4, 2014 at 4:01 PM EST
Company Returns to Profitability and Increases System Revenues 26%

BEVERLY, Mass., Feb. 4, 2014 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the fourth quarter and full year ended December 31, 2013. Highlights for the quarter were:

  • Net income was $0.6 million or $0.01 per share compared to a net loss of $4.8 million or ($0.04) per share in the third quarter.
  • System sales were $25.5 million, a 26% increase over the third quarter 2013, and a 100% increase over the first quarter.
  • Several wins for the Purion XE implanter including the penetration of a new foundry dedicated to image sensors and multiple system orders from a new fab focused on advanced NAND devices.
  • The Company introduced the Purion H high current implanter. With this new addition, the Company provides chipmakers with a full common platform to enable 3D device processing and flexible manufacturing capabilities, offering the best overall technical and manufacturing solution.

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

The Company reported fourth quarter revenue of $58.6 million, compared to $48.8 million for the third quarter of 2013. Operating profit for the quarter was $1.04 million, compared to a $2.8 million loss for the third quarter.  Net income for the quarter was $0.6 million, or $0.01 per share. This compares to a net loss for the third quarter of 2013 of $4.8 million, or ($0.04) per share. Cash, cash equivalents and restricted cash were $47.1 million at December 31, 2013 compared with $50.7 million at September 30, 2013.

For the full year 2013, the Company reported revenue of $195.6 million, compared with $203.4 million for the full year 2012. Net loss for the year was $17.1 million or ($0.16) per share. This compares to net loss for the full year 2012 of $34.0 million or ($0.32) per share. 

Chairman and CEO Mary Puma said, "We're extremely pleased with our return to profitability. This quarter reflects the significant progress we've made on strengthening our financial model and capturing new opportunities with our expanding Purion product family. As we enter 2014, we believe we are strongly positioned to regain market share, achieve last peak quarterly revenues of $90 million during the current industry upturn, and maintain long term profitability through the cycle."

Fourth Quarter and Full Year 2013 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 2013. An audio webcast will be available on the Investor page of Axcelis' website 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 passcode: 82752416. A replay of the webcast will be available for 90 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 (Nasdaq: ACLS), headquartered in Beverly, Mass., 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 systems, one of the most critical and enabling steps in the IC manufacturing process. Learn more about Axcelis at 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 

Twelve months ended 


December 31,

December 31,


2013

2012

2013

2012

Revenue





     Product

$51,436

$38,212

$169,587

$174,309

     Services

7,138

6,412

26,045

29,076

       Total revenue

58,574

44,624

195,632

203,385

Cost of revenue





     Product

31,702

38,902

106,678

123,593

     Services

5,592

5,242

21,019

21,621

        Total cost of revenue

37,294

44,144

127,697

145,214








Gross profit

21,280

480

67,935

58,171








Operating expenses





     Research and development

8,899

8,402

34,756

40,401

     Sales and marketing

5,031

7,604

21,159

25,889

     General and administrative

6,306

5,943

25,471

26,554

     Gain on sale of dry strip assets and intellectual property

-

(7,904)

(1,167)

(7,904)

     Restructuring charges

-

558

2,334

4,169

        Total operating expenses

20,236

14,603

82,553

89,109








Income (loss) from operations

1,044

(14,123)

(14,618)

(30,938)








Other income (expense)





     Interest income

36

18

44

45

     Interest expense

(149)

-

(457)

-

     Other, net

(402)

(496)

(1,073)

(1,495)

        Total other income (expense)

(515)

(478)

(1,486)

(1,450)








Income (loss) before income taxes

529

(14,601)

(16,104)

(32,388)










Income taxes (credits)

(85)

217

1,040

1,646










Net income (loss)

$614

($14,818)

($17,144)

($34,034)










Net income (loss) per share








      Basic

$0.01

($0.14)

($0.16)

($0.32)

      Diluted

$0.01

($0.14)

($0.16)

($0.32)










Shares used in computing net income (loss) per share






      Basic weighted average common shares

109,746

107,910

108,869

107,619

      Diluted weighted average common shares

114,906

107,910

108,869

107,619

 

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands)

(Unaudited)









December 31,

December 31,

2013

2012

ASSETS




Current assets




   Cash and cash equivalents

$

46,290

$

44,986

   Accounts receivable, net

36,587

24,843

   Inventories, net

95,789

100,234

   Restricted cash

-

106

   Prepaid expenses and other current assets

6,242

5,056

      Total current assets

184,908

175,225






Property, plant and equipment, net

32,006

34,413

Restricted cash, long-term

825

-

Other assets

15,810

12,520

      Total assets

$

233,549

$

222,158






LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities




   Accounts payable

$

19,451

$

10,166

   Accrued compensation

4,845

7,283

   Warranty

1,316

1,700

   Income taxes

417

278

   Deferred revenue

4,387

6,423

   Current portion of long-term debt

471

-

   Other current liabilities 

4,573

3,932

      Total current liabilities

35,460

29,782






Long-term debt

14,529

-

Long-term deferred revenue

322

456

Other long-term liabilities

7,236

5,844

      Total liabilities

57,547

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; 110,122 shares

      issued and 110,002 shares outstanding at December 31, 2013;108,293 shares

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

110

108

   Additional paid-in capital

510,992

504,643

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

(1,218)

(1,218)

Accumulated deficit

(339,621)

(322,477)

Accumulated other comprehensive income

5,739

5,020

      Total stockholders' equity

176,002

186,076

      Total liabilities and stockholders' equity

$

233,549

$

222,158

 

Axcelis Technologies, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)















Twelve months ended






December 31,






2013

2012

Cash flows from operating activities


      Net loss

($17,144)

($34,034)

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


            Depreciation and amortization

5,075

6,877

            Gain on sale of dry strip assets and intellectual property

(1,167)

(7,904)

            Deferred taxes

(1,465)

826

            Other

-

186

            Stock-based compensation expense

4,337

3,976

            Provision for excess inventory

2,562

14,492

            Changes in operating assets & liabilities


                  Accounts receivable         

(11,528)

10,478

                  Inventories

2,209

5,903

                  Prepaid expenses and other current assets

125

4,386

                  Accounts payable and other current liabilities

7,308

(13,490)

                  Deferred revenue

(2,181)

(5,396)

                  Income taxes

133

(225)

                  Other assets and liabilities

(3,306)

3,328

                        Net cash used for operating activities

(15,042)

(10,597)









Cash flows from investing activities


            Proceeds from sale of dry strip assets and intellectual property

1,200

8,716

            Expenditures for property, plant, and equipment

(822)

(591)

            (Increase) decrease in restricted cash

107

(2)

                        Net cash provided by investing activities

485

8,123









Cash flows from financing activities


            Increase in restricted cash

(825)

-

            Financing fees and other expenses

(560)

-

            Proceeds from exercise of stock options

1,669

968

            Proceeds from Employee Stock Purchase Plan

436

331

            Proceeds from issuance of Term Loan

15,000

-

                        Net cash provided by financing activities

15,720

1,299

Effect of exchange rate changes on cash

141

(716)

Net increase (decrease) in cash and cash equivalents

1,304

(1,891)

Cash and cash equivalents at beginning of period

44,986

46,877

Cash and cash equivalents at end of period

$46,290

$44,986

 

SOURCE Axcelis Technologies, Inc.