Axcelis Announces Financial Results For First Quarter 2014

May 6, 2014 at 4:01 PM EDT
System Revenues Increase by 27% Reflecting Continued Market Acceptance

BEVERLY, Mass., May 6, 2014 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the first quarter ended March 31, 2014. Highlights for the quarter were:

  • Net income of $0.2 million or $0.00 per share compared to net income of $0.6 million or $0.01 per share in the fourth quarter of 2013.
  • System sales of $32.5 million, a 27% increase over the fourth quarter of 2013, reflecting market acceptance of the Purion™ platform.
  • Closed an order for the Company's innovative Purion M™ medium current implanter with a second leading chipmaker in Asia after a highly successful evaluation process in which the product exceeded goals in numerous performance categories.
  • Shipped multiple Purion XE™ implanters for high volume production of advanced NAND devices.

The Company reported first quarter revenue of $60.8 million, compared to $58.6 million for the fourth quarter of 2013. Operating profit for the quarter was $0.3 million, compared to $1.04 million for the fourth quarter of 2013. Net income for the quarter was $0.2 million, or $0.00 per share. This compares to net income for the fourth quarter of 2013 of $0.6 million, or $0.01 per share. Cash and cash equivalents were $43.0 million at March 31, 2014 compared with $46.3 million at December 31, 2013.

Chairman and CEO Mary Puma said, "The Purion platform has been specifically designed to address our customers' most stringent requirements for advanced planar and 3D devices. As a result, the Purion products led a strong increase in system revenues during the first quarter, including multiple Purion XE shipments and a Purion M order from a second customer. In addition, the Purion H is generating significant interest from customers."

First Quarter 2014 Conference Call
The Company will host a conference call today at 5:00 pm ET to discuss results for the first quarter 2014. An audio webcast will be available on the Investor page of Axcelis' website at www.axcelis.com, or by dialing 1.888.679.8035 (1. 617.213.4848 outside North America). Participants calling into the conference call will be requested to provide the company name, Axcelis, and passcode: 36177541. Webcast replays will be available for 90 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 (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

March 31,


2014

2013

Revenue



     Product

$55,015

$34,452

     Services

5,825

6,274

       Total revenue

60,840

40,726

Cost of revenue



     Product

33,802

22,181

     Services

5,298

5,602

        Total cost of revenue

39,100

27,783





Gross profit

21,740

12,943





Operating expenses



     Research and development

9,257

9,206

     Sales and marketing

5,476

5,201

     General and administrative

6,481

6,590

     Gain on sale of dry strip assets and intellectual property

-

(368)

     Restructuring charges

200

1,801

        Total operating expenses

21,414

22,430





Income (loss) from operations

326

(9,487)





Other income (expense)



     Interest income

2

3

     Interest expense

(251)

-

     Other, net

292

829

        Total other income

43

832





Income (loss) before income taxes

369

(8,655)





Income taxes


195

333





Net income (loss)


$174

$(8,988)





Net earnings (loss) per share



      Basic


$0.00

$(0.08)

      Diluted


$0.00

$(0.08)










Shares used in computing net earnings (loss) per share



      Basic weighted average common shares

110,649

108,227

      Diluted weighted average common shares

115,798

108,227










 


Axcelis Technologies, Inc.
Consolidated Balance Sheets
(In thousands, except per share amounts)
(Unaudited)



March 31,
2014

December 31,
2013

ASSETS



Current assets



Cash and cash equivalents

$

43,039

$

46,290

Accounts receivable, net

38,121

36,587

Inventories, net

95,533

95,789

  Prepaid expenses and other current assets

7,476

6,242

Total current assets

184,169

184,908





Property, plant and equipment, net

31,605

32,006

Restricted cash, long-term

825

825

Other assets

16,104

15,810

        Total assets

$

232,703

$

233,549





LIABILITIES AND STOCKHOLDERS' EQUITY



Current liabilities



Accounts payable

$

17,865

$

19,451

Accrued compensation

4,692

4,845

Warranty

1,496

1,316

Income taxes

474

417

Deferred revenue

3,836

4,387

Current portion of long-term debt

762

471

Other current liabilities


4,100

4,573

Total current liabilities

33,225

35,460





Long-term debt

14,238

14,529

Long-term deferred revenue

257

322

Other long-term liabilities

7,058

7,236

         Total liabilities

54,778

57,547





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; 111,269 shares

issued and 111,149 shares outstanding at March 31, 2014;110,225 shares

issued and 110,105 shares outstanding at December 31, 2013


111

110

Additional paid-in capital

513,411

510,992

 

Treasury stock, at cost, 120 shares at March 31, 2014 and December 31, 2013

(1,218)

(1,218)

Accumulated deficit

(339,447)

(339,621)

Accumulated other comprehensive income

5,068

5,739

          Total stockholders' equity

177,925

176,002

          Total liabilities and stockholders' equity

$

232,703

$

233,549







 

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













Three months ended






March 31,






2014

2013

Cash flows from operating activities




Net income (loss)

$  174

$  (8,988)

Adjustments to reconcile net income (loss) to net cash used for operating

activities:





Depreciation and amortization

1,140

1,394


Gain on sale of dry strip assets and intellectual property

-

(368)


Deferred taxes

312

56


Stock-based compensation expense

1,172

839


Provision for excess inventory

59

2,211


Changes in operating assets & liabilities






Accounts receivable        


(1,634)

1,458



Inventories

(52)

(1,672)



Prepaid expenses and other current assets

(1,252)

(544)



Accounts payable and other current liabilities

(2,025)

5,043



Deferred revenue

(614)

(843)



Income taxes

61

84



Other assets and liabilities

(1,304)

(549)




Net cash used for operating activities

(3,963)

(1,879)









Cash flows from investing activities





Proceeds from sale of dry strip assets and intellectual property

-

400


Expenditures for property, plant, and equipment

(227)

(150)


Decrease in restricted cash

-

3




Net cash (used for) provided by investing activities

(227)

253









Cash flows from financing activities





Proceeds from exercise of stock options

1,277

49




Net cash provided by financing activities

1,277

49

Effect of exchange rate changes on cash

(338)

(968)

Net decrease in cash and cash equivalents

(3,251)

(2,545)

Cash and cash equivalents at beginning of period

46,290

44,986

Cash and cash equivalents at end of period

$43,039

$ 42,441

 

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SOURCE Axcelis Technologies, Inc.