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Axcelis Announces Financial Results For Third Quarter 2017
Purion Platform Continues to Drive Strong Revenues, Operating Profit and Cash

BEVERLY, Mass., Nov. 2, 2017 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the third quarter ended September 30, 2017.

The Company reported third quarter revenue of $104.5 million, compared to $102.8 million for the second quarter of 2017. Operating profit for the quarter was $13.8 million, compared to $12.5 million in the second quarter. Net income for the quarter was $11.8 million, or $0.35 per diluted share, compared to net income for the second quarter of 2017 of $13.9 million, or $0.42 per diluted share. Total cash was $120.7 million at September 30, 2017, compared to $115.4 million on June 30, 2017.

In 2017, the Company adopted Accounting Standard Update No. 2016-09 (ASU 2016-09), which addresses accounting for equity compensation expense and related tax effects. This accounting change has no impact on the Company's operating results or cash flow, but can both positively and negatively impact net income and earnings per share. In the third quarter, this new standard decreased net income by $0.8 million and decreased diluted earnings per share by $0.03. In the second quarter, ASU 2016-09 increased net income by $2.8 million, and increased diluted earnings per share by $0.09. Excluding the effect of ASU 2016-09, net income for the third quarter would have been $12.7 million, or $0.38 per diluted share, in comparison to $11.1 million, or $0.33 per diluted share in the second quarter.

President and CEO Mary Puma commented, "Strength across all industry segments continues to drive strong demand for the Purion platform products, resulting in another quarter of robust financial performance. Our Purion H high current system is now in production at eight customers in 11 different fabs, and new Purion H penetrations in the fourth quarter will drive its adoption beyond this level. In addition, our customers in the mature foundry and logic segment made significant investments in Axcelis' high energy implant systems, a testament to the success of the Purion VXE's significant advantages in emerging image sensor applications. With greater visibility into the fourth quarter, we now estimate total 2017 revenues of above $400 million."

Business Outlook

For the fourth quarter ending December 31, 2017, Axcelis expects revenues of approximately $107-112 million with gross margins of approximately 37-38%. Fourth quarter operating profit is forecasted to be approximately $14.0-15.5 million with earnings per diluted share of $0.37-41, prior to any tax effect of ASU 2016-09. Total cash for the quarter is expected to be around $130 million.

Third Quarter 2017 Conference Call

The Company will host a conference call today at 5:00 pm ET to discuss the Company's results for the third quarter of 2017. The call will be available to interested listeners via an audio webcast on 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 required to provide the company name, Axcelis Technologies, and pass code: 96640544. Webcast replays will be available for 30 days following the call.

Use of Non-GAAP Financial Results

Adjusted net income and net income per diluted share excluding the effects of income tax benefits and provisions of ASU 2016-09 are non-GAAP financial measures. Since the Company is not a cash income tax payer in the US and ASU 2016-09 can have a significant impact on our reported net income, management will use adjusted net income and adjusted net income per diluted share to assist in our understanding of the Company's operating and financial performance. The Company believes the presentation of these non-GAAP results is useful to investors for analyzing business trends and comparing performance to prior periods, along with enhancing investors' ability to view the Company's results from management's perspective.  The presentation of supplemental non-GAAP information is not meant to be considered in isolation or as a substitute for results prepared and presented in accordance with GAAP.

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 expectations for the level of 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, 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


Nine months ended





September 30,


September 30,





2017


2016


2017


2016












Revenue:













Product

$

98,161


$

59,302


$

276,678


$

180,336


Services


6,321



6,348



17,487



17,286



Total revenue


104,482



65,650



294,165



197,622

Cost of Revenue:













Product


58,056



36,360



162,542



111,262


Services


6,675



5,186



18,096



13,709



Total cost of revenue


64,731



41,546



180,638



124,971
















Gross profit


39,751



24,104



113,527



72,651
















Operating expenses:













Research and development


11,003



8,493



32,154



25,607


Sales and marketing


6,801



5,992



21,335



17,742


General and administrative


8,112



5,988



22,960



18,262


Restructuring charges








282



Total operating expenses


25,916



20,473



76,449



61,893
















Income from operations


13,835



3,631



37,078



10,758
















Other (expense) income:













Interest income


219



53



399



161


Interest expense


(1,337)



(1,342)



(3,784)



(3,727)


Other, net


138



(55)





(352)



Total other expense


(980)



(1,344)



(3,385)



(3,918)
















Income before income taxes


12,855



2,287



33,693



6,840













Income tax provision (benefit)


1,014



136



(1,586)



(196)













Net income

$

11,841


$

2,151


$

35,279


$

7,036
















Net income per share:














Basic

$

0.38


$

0.07


$

1.15


$

0.24



Diluted

$

0.35


$

0.07


$

1.07


$

0.23
















Shares used in computing net income per share:














Basic weighted average common shares


31,274



29,221



30,550



29,118



Diluted weighted average common shares


33,524



31,037



33,048



30,760
















 

 



Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)




September 30,


December 31,



2017


2016









ASSETS








Cash and cash equivalents


$

113,889


$

70,791


Accounts receivable, net



69,835



50,573


Inventories, net



123,441



113,853


Prepaid expenses and other assets



33,437



29,310


Property, plant and equipment, net



35,704



30,840


Restricted cash



6,799



6,864


          Total assets


$

383,105


$

302,231










LIABILITIES AND STOCKHOLDERS' EQUITY








Accounts payable


$

33,594


$

24,996


Accrued compensation



15,829



5,142


Warranty



4,388



2,668


Income taxes



285



240


Deferred revenue



16,432



11,009


Sale leaseback obligation



47,704



47,586


Other liabilities



10,471



9,135


          Total liabilities



128,703



100,776










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, 75,000 shares authorized; 31,433 shares issued and  outstanding at September 30, 2017; 29,518 shares issued and outstanding at December 31, 2016


31



30


Additional paid-in capital



550,058



535,408


Accumulated deficit



(296,425)



(331,704)


Accumulated other comprehensive income (loss)



738



(2,279)


          Total stockholders' equity



254,402



201,455


          Total liabilities and stockholders' equity


$

383,105


$

302,231

 

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SOURCE Axcelis Technologies, Inc.