Axcelis Announces Financial Results for Fourth Quarter and Full Year 2017
The Company reported fourth quarter revenue of
For the full year 2017, the Company reported revenue of
"We are very pleased with our 2017 results and expect continued market strength and growth in 2018," said President and CEO
Chief Financial Officer and Executive Vice President
Q4 2017 Financial Highlights: |
||||||||
GAAP |
Non-GAAP |
|||||||
Period-to-Period Change |
||||||||
Q4 2017 |
Q3 2017 |
Q4 2017 (1) |
Q3 2017 (2) |
$ |
% |
|||
Total revenue ($M) |
$116.4 |
$104.5 |
$116.4 |
$104.5 |
$11.9 |
11.4% |
||
Gross profit ($M) |
$36.7 |
$39.8 |
$42.9 |
$39.8 |
$3.1 |
7.8% |
||
Gross profit (% of total revenue) |
31.5% |
38.0% |
36.8% |
38.0% |
||||
Income from operations ($M) |
$10.8 |
$13.8 |
$16.9 |
$13.8 |
$3.1 |
22.5% |
||
Net income ($M) |
$91.7 |
$11.8 |
$16.2 |
$12.7 |
$3.5 |
27.6% |
||
Net income per share (diluted) |
$2.68 |
$0.35 |
$0.47 |
$0.38 |
$0.09 |
23.7% |
||
Full Year 2017 Financial Highlights: |
||||||||
GAAP |
Non-GAAP |
|||||||
Period-to-Period Change |
||||||||
2017 |
2016 |
2017 (1) |
2016 |
$ |
% |
|||
Total revenue ($M) |
$410.6 |
$267.0 |
$410.6 |
$267.0 |
$143.6 |
53.8% |
||
Gross profit ($M) |
$150.2 |
$99.6 |
$156.4 |
$99.6 |
$56.8 |
57.0% |
||
Gross profit (% of total revenue) |
36.6% |
37.3% |
38.1% |
37.3% |
||||
Income from operations ($M) |
$47.8 |
$16.6 |
$54.0 |
$16.6 |
$37.4 |
225.3% |
||
Net income ($M) |
$127.0 |
$11.0 |
$49.5 |
$11.0 |
$38.5 |
350.0% |
||
Net income per share (diluted) |
$3.80 |
$0.36 |
$1.48 |
$0.36 |
$1.12 |
311.1% |
||
(1) A reconciliation of the fourth quarter and full year ending December 31, 2017 GAAP and non-GAAP results is provided in the financial tables included in this release. See also "Use of Non-GAAP Adjusted Financial Measures" below. |
||||||||
(2) Non-GAAP Q3 2017 net income and diluted earnings per share eliminate the effects of Accounting Standards Update No. 2016-09, which decreased net income by $0.8 million and decreased diluted earnings per share by $0.03. |
On
Use of Non-GAAP Adjusted Financial Measures
In this press release,
Management uses these non-GAAP adjusted financial measures to evaluate the Company's operating and financial performance and for planning purposes.
Business Outlook
For the first quarter ending
Fourth Quarter 2017 Conference Call
The Company will host a conference call today at
Safe Harbor Statement
This press release and the conference call contain forward-looking statements under the Private Securities Litigation Reform Act safe harbor provisions. These statements, which include our expectations for spending in our industry and 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 that could cause actual results to differ materially from those in the forward-looking statements, many of which are outside the control of the Company, including that customer decisions to place orders or our product shipments may not occur when we expect, that orders may not be converted to revenue in any particular quarter, or at all, whether demand will continue for the semiconductor equipment we produce or, if not, whether we can successfully meet changing market requirements, and whether we will be able to maintain continuity of business relationships with and purchases by major customers. Increased competitive pressure on sales and pricing, increases in material and other production costs that cannot be recouped in product pricing and instability caused by changing global economic, political or financial conditions could also could cause actual results to differ materially from those in our forward-looking statements. These risks and other risk factors relating to
About
Company Contacts
Investor Relations:
978.787.9552
Editorial/Media:
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, |
||||||||||||||||||
2017 |
2016 |
2017 |
2016 |
||||||||||||||||
Revenue: |
|||||||||||||||||||
Product |
$ |
110,446 |
$ |
63,959 |
$ |
387,124 |
$ |
244,295 |
|||||||||||
Services |
5,950 |
5,399 |
23,437 |
22,685 |
|||||||||||||||
Total revenue |
116,396 |
69,358 |
410,561 |
266,980 |
|||||||||||||||
Cost of Revenue: |
|||||||||||||||||||
Product |
72,390 |
37,745 |
234,932 |
149,007 |
|||||||||||||||
Services |
7,286 |
4,666 |
25,382 |
18,375 |
|||||||||||||||
Total cost of revenue |
79,676 |
42,411 |
260,314 |
167,382 |
|||||||||||||||
Gross profit |
36,720 |
26,947 |
150,247 |
99,598 |
|||||||||||||||
Operating expenses: |
|||||||||||||||||||
Research and development |
10,917 |
8,795 |
43,071 |
34,402 |
|||||||||||||||
Sales and marketing |
7,197 |
6,097 |
28,532 |
23,839 |
|||||||||||||||
General and administrative |
7,842 |
6,190 |
30,802 |
24,452 |
|||||||||||||||
Restructuring charges |
— |
— |
— |
282 |
|||||||||||||||
Total operating expenses |
25,956 |
21,082 |
102,405 |
82,975 |
|||||||||||||||
Income from operations |
10,764 |
5,865 |
47,842 |
16,623 |
|||||||||||||||
Other (expense) income: |
|||||||||||||||||||
Interest income |
315 |
77 |
714 |
238 |
|||||||||||||||
Interest expense |
(1,337) |
(1,346) |
(5,121) |
(5,073) |
|||||||||||||||
Other, net |
396 |
(412) |
396 |
(764) |
|||||||||||||||
Total other expense |
(626) |
(1,681) |
(4,011) |
(5,599) |
|||||||||||||||
Income before income taxes |
10,138 |
4,184 |
43,831 |
11,024 |
|||||||||||||||
Income tax (benefit) provision |
(81,542) |
219 |
(83,128) |
23 |
|||||||||||||||
Net income |
$ |
91,680 |
$ |
3,965 |
$ |
126,959 |
$ |
11,001 |
|||||||||||
Net income per share: |
|||||||||||||||||||
Basic |
$ |
2.88 |
$ |
0.13 |
$ |
4.11 |
$ |
0.38 |
|||||||||||
Diluted |
$ |
2.68 |
$ |
0.13 |
$ |
3.80 |
$ |
0.36 |
|||||||||||
Shares used in computing net income per share: |
|||||||||||||||||||
Basic weighted average common shares |
31,801 |
29,423 |
30,866 |
29,195 |
|||||||||||||||
Diluted weighted average common shares |
34,198 |
31,436 |
33,436 |
30,947 |
|||||||||||||||
Axcelis Technologies, Inc. |
||||||||||||
December 31, |
December 31, |
|||||||||||
2017 |
2016 |
|||||||||||
ASSETS |
||||||||||||
Cash and cash equivalents |
$ |
133,407 |
$ |
70,791 |
||||||||
Accounts receivable, net |
75,302 |
50,573 |
||||||||||
Inventories, net |
120,544 |
113,853 |
||||||||||
Prepaid expenses & other assets |
32,176 |
28,327 |
||||||||||
Property, plant and equipment, net |
36,168 |
30,840 |
||||||||||
Restricted cash |
7,473 |
6,864 |
||||||||||
Deferred income taxes |
83,148 |
983 |
||||||||||
Total assets |
$ |
488,218 |
$ |
302,231 |
||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||||||
Accounts payable |
$ |
32,642 |
$ |
24,996 |
||||||||
Accrued compensation |
20,955 |
5,142 |
||||||||||
Warranty |
4,502 |
2,668 |
||||||||||
Income taxes |
273 |
240 |
||||||||||
Deferred revenue |
18,145 |
11,009 |
||||||||||
Sale leaseback obligation |
47,714 |
47,586 |
||||||||||
Other liabilities |
10,377 |
9,135 |
||||||||||
Total liabilities |
134,608 |
100,776 |
||||||||||
Commitments and contingencies |
||||||||||||
Stockholders' equity: |
||||||||||||
Common stock, $0.001 par value, 75,000 shares authorized; 32,048 shares issued and outstanding at December 31, 2017; 29,518 shares issued and outstanding at December 31, 2016 |
32 |
30 |
||||||||||
Additional paid-in capital |
556,147 |
535,408 |
||||||||||
Accumulated deficit |
(204,745) |
(331,704) |
||||||||||
Accumulated other comprehensive income (loss) |
2,176 |
(2,279) |
||||||||||
Total stockholders' equity |
353,610 |
201,455 |
||||||||||
Total liabilities and stockholders' equity |
$ |
488,218 |
$ |
302,231 |
||||||||
Reconciliation of GAAP Cost of Revenue, Gross Profit, Income From Operations and Net Income to |
||||||||||||
Non-GAAP Cost of Revenue, Gross Profit, Income From Operations and Net Income |
||||||||||||
(In thousands, except per share amounts) |
||||||||||||
(unaudited) |
||||||||||||
Three months ended December 31, |
Twelve months ended December 31, |
|||||||||||
2017 |
2016 |
2017 |
2016 |
|||||||||
Total cost of revenue: |
||||||||||||
GAAP total cost of revenue |
$ |
79,676 |
$ |
42,411 |
$ |
260,314 |
$ |
167,382 |
||||
Excess inventory reserve |
(6,168) |
— |
(6,168) |
— |
||||||||
Non-GAAP total cost of revenue |
$ |
73,508 |
$ |
42,411 |
$ |
254,146 |
$ |
167,382 |
||||
Gross profit: |
||||||||||||
GAAP gross profit |
$ |
36,720 |
$ |
26,947 |
$ |
150,247 |
$ |
99,598 |
||||
Excess inventory reserve |
6,168 |
— |
6,168 |
— |
||||||||
Non-GAAP gross profit |
$ |
42,888 |
$ |
26,947 |
$ |
156,415 |
$ |
99,598 |
||||
Income from operations: |
||||||||||||
GAAP income from operations |
$ |
10,764 |
$ |
5,865 |
$ |
47,842 |
$ |
16,623 |
||||
Excess inventory reserve |
6,168 |
— |
6,168 |
— |
||||||||
Non-GAAP income from operations |
$ |
16,932 |
$ |
5,865 |
$ |
54,010 |
$ |
16,623 |
||||
Net income: |
||||||||||||
GAAP net income |
$ |
91,680 |
$ |
3,965 |
$ |
126,959 |
$ |
11,001 |
||||
Excess inventory reserve |
6,168 |
— |
6,168 |
— |
||||||||
Tax valuation release |
(81,641) |
(1) |
— |
(83,642) |
(2) |
— |
||||||
Non-GAAP net income |
$ |
16,207 |
$ |
3,965 |
$ |
49,485 |
$ |
11,001 |
||||
Net income per share (diluted): |
||||||||||||
GAAP net income per share |
$ |
2.68 |
$ |
0.13 |
$ |
3.80 |
$ |
0.36 |
||||
Excess inventory reserve |
0.18 |
— |
0.18 |
— |
||||||||
Tax valuation release |
(2.39) |
(1) |
— |
(2.50) |
(2) |
— |
||||||
Non-GAAP net income per share |
$ |
0.47 |
$ |
0.13 |
$ |
1.48 |
$ |
0.36 |
||||
(1) Principally due to the release of our deferred tax assets valuation allowance and related impacts. |
||||||||||||
(2) Principally due to the release of our deferred tax assets valuation allowance and related impacts. Also includes prior quarter tax benefits associated with the effect of Accounting Standards Update No. 2016-09. |
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