Axcelis Announces Financial Results For First Quarter 2018

May 2, 2018 at 4:08 PM EDT
Q1 Initiatives Open Significant Additional Market Opportunities

BEVERLY, Mass., May 2, 2018 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the first quarter ended March 31, 2018.

The Company reported first quarter revenue of $122.2 million, compared to $116.4 million for the fourth quarter of 2017. Operating profit for the quarter was $18.5 million, compared to $10.8 million for the fourth quarter. Net income for the quarter was $13.9 million, or $0.41 per diluted share, compared to net income for the fourth quarter of 2017 of $91.7 million, or $2.68 per diluted share. First quarter net income is after a non-cash tax expense of $0.10 per share. Fourth quarter net income was increased by a tax benefit of $81.6 million due principally to the release of a tax valuation allowance and related impacts. Cash, cash equivalents and restricted cash were $148.5 million at March 31, 2018, compared to $140.9 million on December 31, 2017.

President and CEO Mary Puma commented, "During the quarter, we entered into a strategic agreement for distribution and support with SCREEN Semiconductor Solutions to bring the Purion platform to the Japanese market. In addition, we shipped our first Purion H to a new foundry logic customer for use in their most advanced logic process. The Japanese market combined with the advanced logic market provides Axcelis access to an additional $300 million in potential revenue opportunity. We are very pleased with our first quarter results. Demand for the Purion platform was strong across all industry segments, allowing us to capitalize on a broad and diverse customer base."

Business Outlook
For the second quarter ending June 30, 2018, Axcelis expects revenues of between $114 and $118 million. Gross margin in the second quarter is expected to be around 38%. Second quarter operating profit is forecasted to be approximately $15.5-16.5 million. Earnings per share is expected to be between $0.34 and $0.36, which is after an expected non-cash tax expense of $0.10 per share.

First Quarter 2018 Conference Call
The Company will host a conference call today at 5:00 pm ET to discuss the Company's results for the first quarter. 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 866.588.8911 (707.294.1561 outside North America).  Participants calling into the conference call will be requested to provide the company name, Axcelis Technologies, and pass code: 7599288. 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 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 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 40 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,



2018

2017

Revenue:





Product

$

116,022

$

81,978

Services

6,163

4,915

Total revenue

122,185

86,893

Cost of revenue:





Product

68,374

46,797

Services

6,655

5,382

Total cost of revenue

75,029

52,179

Gross profit

47,156

34,714

Operating expenses:





Research and development

12,233

9,895

Sales and marketing

8,411

7,049

General and administrative

8,010

7,057

Total operating expenses

28,654

24,001

Income from operations

18,502

10,713

Other (expense) income:





Interest income

410

69

Interest expense

(1,337)

(1,111)

Other, net

(102)

(154)

Total other expense

(1,029)

(1,196)

Income before income taxes

17,473

9,517

Income tax provision

3,558

11

Net income

$

13,915

$

9,506

Net income per share:





Basic

$

0.43

$

0.32

Diluted

$

0.41

$

0.29

Shares used in computing net income per share:





Basic weighted average common shares

32,094

29,772

Diluted weighted average common shares

34,123

32,255







 

 

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)







March 31,


December 31,


2018

2017

ASSETS




Current assets:




Cash and cash equivalents

$

140,957

$

133,407

Short-term restricted cash

770

750

Accounts receivable, net

75,588

75,302

Inventories, net

135,005

120,544

Prepaid expenses and other current assets

9,277

9,772

Total current assets

361,597

339,775

Property, plant and equipment, net

36,203

36,168

Long-term restricted cash

6,744

6,723

Deferred income taxes

80,697

83,148

Other assets

19,903

22,404

Total assets

$

505,144

$

488,218

LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$

43,438

$

32,642

Accrued compensation

7,685

20,955

Warranty

4,583

4,112

Income taxes

389

273

Deferred revenue

15,507

16,181

Other current liabilities

5,482

5,124

Total current liabilities

77,084

79,287

Sale leaseback obligation

47,724

47,714

Long-term deferred revenue

3,015

1,964

Other long-term liabilities

5,794

5,643

Total liabilities

133,617

134,608

Commitments and contingencies






Stockholders' equity:




Common stock, $0.001 par value, 75,000 shares authorized; 32,142
shares issued and outstanding at March 31, 2018; 32,048 shares
issued and outstanding at December 31, 2017

32

32

Additional paid-in capital

557,498

556,147

Accumulated deficit

(189,230)

(204,745)

Accumulated other comprehensive income


3,227

2,176

Total stockholders' equity

371,527

353,610

Total liabilities and stockholders' equity

$

505,144

$

488,218






 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/axcelis-announces-financial-results-for-first-quarter-2018-300641481.html

SOURCE Axcelis Technologies, Inc.