News Release

Axcelis Announces Financial Results For Second Quarter 2018
Company Reports Accelerated Gross Margin Performance and Remains Confident in Future Growth

BEVERLY, Mass., Aug. 2, 2018 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the second quarter ended June 30, 2018.

The Company reported second quarter revenue of $119.3 million, compared to $122.2 million for the first quarter of 2018. Operating profit for the quarter was $19.3 million, compared to $18.5 million for the first quarter. Net income for the quarter was $14.7 million, or $0.43 per diluted share, compared to net income for the first quarter of 2018 of $13.9 million, or $0.41 per diluted share. Cash, cash equivalents and restricted cash were $154.9 million at June 30, 2018, compared to $148.5 million on March 31, 2018.

"We're very pleased with our financial performance in the second quarter driven by solid revenue and earnings growth. Our gross margin initiatives continue to deliver improvements, yielding results above guidance. Demand for our products remains strong across our diverse customer base, and the industry continues to be in a robust, sustained cycle fueled by growth in IoT and big data," said President and CEO Mary Puma. "We are still targeting our $450 million business model in 2018, and anticipate 2019 to be another solid year for equipment CAPEX."

Business Outlook
For the third quarter ending September 30, 2018, Axcelis expects revenues of between $95 and $100 million. Gross margin in the third quarter is expected to be around 40%. Third quarter operating profit is forecasted to be approximately $8-10 million. Earnings per share is expected to be between $0.15 and $0.20.

Second 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 second 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: 2690966. 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 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 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

June 30,


Six months ended

June 30,





2018


2017


2018


2017












Revenue:













Product

$

112,521


$

96,539


$

228,543


$

178,517


Services


6,812



6,251



12,975



11,166



Total revenue


119,333



102,790



241,518



189,683

Cost of Revenue:













Product


63,913



57,689



132,287



104,486


Services


6,420



6,039



13,075



11,421



Total cost of revenue


70,333



63,728



145,362



115,907
















Gross profit


49,000



39,062



96,156



73,776
















Operating expenses:













Research and development


12,553



11,256



24,786



21,151


Sales and marketing


8,912



7,485



17,323



14,534


General and administrative


8,268



7,791



16,278



14,848



Total operating expenses


29,733



26,532



58,387



50,533
















Income from operations


19,267



12,530



37,769



23,243
















Other (expense) income:













Interest income


515



111



925



180


Interest expense


(1,127)



(1,336)



(2,464)



(2,447)


Other, net


(1,016)



16



(1,118)



(138)



Total other expense


(1,628)



(1,209)



(2,657)



(2,405)
















Income before income taxes


17,639



11,321



35,112



20,838













Income tax provision (benefit)


2,970



(2,611)



6,528



(2,600)













Net income

$

14,669


$

13,932


$

28,584


$

23,438
















Net income per share:














Basic

$

0.46


$

0.46


$

0.89


$

0.78



Diluted

$

0.43


$

0.42


$

0.84


$

0.72
















Shares used in computing net income per share:














Basic weighted average common shares


32,214



30,589



32,154



30,183



Diluted weighted average common shares


33,942



33,168



34,048



32,779

 

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

 








June 30,


December 31,



2018


2017

      ASSETS







Current assets:


Cash and cash equivalents


$

147,297


$

133,407


Short-term restricted cash



730



750


Accounts receivable, net



74,429



75,302


Inventories, net



129,554



120,544


Prepaid expenses & other assets



10,925



9,772


         Total current assets



362,935



339,775

Property, plant and equipment, net



36,312



36,168

Restricted cash



6,915



6,723

Deferred income taxes



77,005



83,148

Other assets



25,264



22,404



Total assets


$

508,431


$

488,218


LIABILITIES AND STOCKHOLDERS' EQUITY









Accounts payable


$

32,633


$

32,642


Accrued compensation



12,727



20,955


Warranty



4,698



4,112


Income taxes



163



273


Deferred revenue



11,927



16,181


Other current liabilities



4,542



5,124


            Total current liabilities



66,690



79,287

Sales leaseback obligation



47,735



47,714

Long-term deferred revenue



3,248



1,964

Other long-term liabilities



5,144



5,643



Total liabilities



122,817



134,608

Commitments and contingencies







Stockholders' equity:








Common stock, $0.001 par value, 75,000 shares authorized; 32,331 shares issued and 
outstanding at June 30, 2018; 32,048 shares issued and outstanding at December 31,
2017

32



32


Additional paid-in capital



559,207



556,147


Accumulated deficit



(174,561)



(204,745)


Accumulated other comprehensive income



936



2,176



Total stockholders' equity



385,614



353,610



Total liabilities and stockholders' equity


$

508,431


$

488,218










 

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SOURCE Axcelis Technologies, Inc.