Axcelis Announces Financial Results For Fourth Quarter And Full Year 2014

February 5, 2015 at 4:01 PM EST
Purion H Momentum Drives 254% Increase in Systems Revenue

BEVERLY, Mass., Feb. 5, 2015 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the fourth quarter and full year ended December 31, 2014. Recent highlights include:

  • Revenues of $62.5 million, a 62% increase over the third quarter.
  • System sales of $29.9 million, a 254% increase over the third quarter.
  • The Company returned to profitability with net income of $0.2 million or $0.00 per share compared to a net loss of $4.7 million or ($0.04) per share in the third quarter.
  • Significant order activity for the Purion™ platform across DRAM, FLASH and foundry market segments.
  • Closed a $49 million sale leaseback agreement, generating net proceeds of approximately $34 million after mortgage payoff.

The Company reported fourth quarter revenue of $62.5 million, compared to $38.5 million for the third quarter of 2014. Operating profit for the quarter was $0.4 million, compared to a $5.4 million loss for the third quarter. Net income for the quarter was $0.2 million, or $0.00 per share. This compares to a net loss for the third quarter of 2014 of $4.7 million, or ($0.04) per share. This included $2.3 million of restructuring charges. Cash and cash equivalents were $30.8 million at December 31, 2014 compared with $32.5 million at September 30, 2014.

For the full year 2014, the Company reported revenue of $203.1 million, compared with $195.6 million for the full year 2013. Net loss for the year was $11.3 million or ($0.10) per share. This compares to net loss for the full year 2013 of $17.1 million or ($0.16) per share. 

Chairman and CEO Mary Puma said, "In the fourth quarter, we exceeded company guidance and analyst consensus estimates. Significant revenue growth was driven by the rapid adoption of the Purion H™ high current implanter. We expect the continued momentum of the Purion H will drive an increase in system sales in the first quarter." She added, "The introduction of the Purion H high current implanter and the Purion M™ medium current implanter has opened an additional 85% of the market, giving Axcelis access to 100% of the nearly $1B ion implant market."

Fourth Quarter and Full Year 2014 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 2014. The call will be available to interested listeners via an audio webcast that can be accessed through the Investors page of Axcelis' website at www.axcelis.com, or by dialing 1.888.680.0865 (1.617.213.4853 outside North America). Participants calling into the conference call will be requested to provide the company name, Axcelis Technologies, and pass code: 44096419. Webcast replays will be available for 30 days following the 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

December 31,

Twelve months ended

December 31,

2014

2013

2014

2013

Revenue:







Product

$57,076

$51,436

$179,246

$169,587

Services

5,454

7,138

23,805

26,045

   Total revenue

62,530

58,574

203,051

195,632

Cost of revenue:







Product

39,639

31,702

113,285

106,678

Services

4,094

5,592

19,602

21,019

   Total cost of revenue

43,733

37,294

132,887

127,697









Gross profit

18,797

21,280

70,164

67,935









Operating expenses:







Research and development

7,481

8,899

33,533

34,756

Sales and marketing

5,310

5,031

20,713

21,159

General and administrative

5,602

6,306

23,958

25,471

Gain on sale of dry strip assets and intellectual property

—

—

—

(1,167)

Restructuring charges

(27)

—

2,621

2,334

   Total operating expenses

18,366

20,236

80,825

82,553









Income (loss) from operations

431

1,044

(10,661)

(14,618)









Other income (expense):







Interest income

27

36

32

44

Interest expense

(257)

(149)

(1,069)

(457)

Other, net

249

(402)

1,531

(1,073)

   Total other income (expense)

19

(515)

494

(1,486)









Income (loss) before income taxes

450

529

(10,167)

(16,104)









Income tax provision (benefit)

285

(85)

1,099

1,040









Net income (loss)

$165

$614

$(11,266)

$(17,144)









Net income (loss) per share







   Basic

$0.00

$0.01

$(0.10)

$(0.16)

   Diluted

$0.00

$0.01

$(0.10)

$(0.16)









Shares used in computing net loss per share:







   Basic weighted average common shares

112,218

109,746

111,450

108,869

   Diluted weighted average common shares

117,251

114,906

111,450

108,869

 

 


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


December 31,
2014

December 31,
2013

ASSETS


Cash and cash equivalents

$

30,753

$

46,290

Accounts receivable, net

42,794

36,587

Inventories, net

104,063

95,789

  Prepaid expenses and other assets

18,755

22,052

  Property, plant and equipment, net

30,464

32,006

  Restricted cash

825

825

     Total assets

$

227,654

$

233,549




LIABILITIES AND STOCKHOLDERS' EQUITY


Accounts payable

$

21,605

$

19,451

Accrued compensation

4,232

4,845

Warranty

1,527

1,428

Income taxes

196

417

Deferred revenue

7,231

4,709

Debt

14,530

15,000

Other liabilities

9,981

11,697

         Total liabilities

59,302

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; 112,849 shares issued and 112,729 shares outstanding at December 31, 2014; 110,225 shares issued and 110,105 shares outstanding at December 31, 2013

113

110

Additional paid-in capital

519,068

510,992

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

(1,218)

(1,218)

Accumulated deficit

(350,887)

(339,621)

Accumulated other comprehensive income

1,276

5,739

          Total stockholders' equity

168,352

176,002

          Total liabilities and stockholders' equity

$

227,654

$

233,549

 

 

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






Twelve months ended





December 31,





2014

2013

Cash flows from operating activities



Net loss

$(11,266)

$(17,144)

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




Depreciation and amortization

4,586

5,075


Gain on sale of dry strip assets and intellectual property

—

(1,167)


Deferred taxes

1,266

(1,465)


Stock-based compensation expense

4,812

4,337


Provision for inventory reserves

1,817

2,562


Changes in operating assets & liabilities:





Accounts receivable        

(7,069)

(11,528)



Inventories

(12,280)

2,209



Prepaid expenses and other assets and liabilities

(1,051)

(3,181)



Accounts payable and other liabilities

772

7,308



Deferred revenue

2,577

(2,181)



Income taxes

(212)

133




Net cash used for operating activities

(16,048)

(15,042)








Cash flows from investing activities




Proceeds from sale of dry strip assets and intellectual property

—

1,200


Expenditures for property, plant, and equipment

(1,017)

(821)


Decrease in restricted cash

—

106




Net cash (used for) provided by investing activities

(1,017)

485








Cash flows from financing activities




Increase in restricted cash

—

(825)


Financing fees and other expenses

(115)

(560)


Proceeds from exercise of stock options

2,894

1,669


Proceeds from Employee Stock Purchase Plan

447

436


Proceeds from issuance of Term Loan

—

15,000


Principal payments on Term Loan

(470)

—




Net cash provided by financing activities

2,756

15,720

Effect of exchange rate changes on cash and cash equivalents

(1,228)

141

Net (decrease) increase in cash and cash equivalents

(15,537)

1,304

Cash and cash equivalents at beginning of period

46,290

44,986

Cash and cash equivalents at end of period

$30,753

$46,290

 

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SOURCE Axcelis Technologies, Inc.