Axcelis Announces Financial Results for Third Quarter 2007
BEVERLY, Mass.--(BUSINESS WIRE)--Nov. 1, 2007--Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the third quarter ended September 30, 2007. The Company reported revenues of $107.6 million, compared to $110.1 million for the second quarter of 2007. Net loss for the third quarter was $8.2 million or $0.08 per share, of which $0.05 is attributable to a charge for impairment of goodwill relating to the discontinuance of future development of rapid thermal processing (RTP) and curing products. This compares to net income for the second quarter of $4.7 million or $0.05 per share. In the corresponding quarter for the previous year, the Company reported revenues of $122.8 million and net income of $12.5 million, or $0.12 per share.
"Increasing weakness in the semiconductor market has caused a more significant softening in our base business than we had anticipated. During the quarter, we experienced a push out of several shipments, driven mainly by changes in the timing of memory projects," commented Chairman and CEO Mary Puma. "As we previously announced, we are streamlining operations to focus on our core implant and dry strip product lines. We have implemented other significant cost-out actions, including a reduction in force and an extended holiday shutdown, that will reduce our operating expenses by approximately 10%."
Puma continued, "Despite the ongoing softness in the industry, our customers continue to validate the production and process advantages of the Optima HD implanter. We received a follow-on order this quarter for an Optima HD for high-volume manufacturing after we demonstrated these advantages in head-to-head competition. Our customers are conveying to us that the Optima HD will capture a measurable split of their future high dose business."
Third Quarter Detail
Shipments and Margins
Shipments, including aftermarket business, before provision for deferred revenue for the third quarter, totaled $103.4 million. Geographically, Axcelis' systems shipments for the quarter were to: Asia, 66%; North America, 12%; and Europe, 22%. The ion implantation business accounted for 70% of total shipments in the third quarter. Gross margin for the third quarter was approximately 34%.
Orders and Backlog
Orders (new systems bookings and aftermarket) received for the third quarter totaled $76.2 million. New systems bookings, excluding aftermarket, amounted to $33.0 million. Backlog plus deferred systems revenue at quarter end was $63.5 million. Backlog consists of systems orders (aftermarket orders are excluded) that are generally scheduled to ship within six months.
SEN Corporation, an SHI and Axcelis Company ("SEN")
Axcelis owns 50% of SEN, a Japanese company that is licensed to make and sell certain Axcelis ion implanters in Japan. SEN's revenue for the third quarter totaled $49.7 million.
Business Outlook
Axcelis' financial outlook for the fourth quarter of 2007 includes revenues in the range of $80 million to $95 million. The Company also forecasts a fourth quarter loss per share in the range of $0.07 to $0.13 of which $0.02 is attributed to a restructuring of the business. Axcelis assumes no responsibility to update guidance. Axcelis will only confirm or update guidance via a press release.
Third Quarter 2007 Conference Call
The Company will be hosting a conference call today, Thursday, November 1, 2007, beginning at 5:00 pm ET. The purpose of the call is to discuss third quarter results and to provide guidance for the fourth quarter of 2007.
The call will be available to interested listeners via an audio webcast that can be accessed through Axcelis' home page at www.axcelis.com, or by dialing 1-800-479-1628 (1-719-457-2729 outside North America). Participants calling into the conference call will be requested to provide the company name: Axcelis Technologies, the conference leader: Stephen Bassett, and pass code: #3354400. A webcast replay will be available from 8:00 p.m. ET on November 1, 2007 until 5:00 p.m. ET December 1, 2007.
Safe Harbor Statement
This document contains 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, our ability to implement successfully our profit plans, 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 Technologies, Inc.
Axcelis Technologies, Inc., headquartered in Beverly, Massachusetts, provides innovative, high-productivity solutions for the semiconductor industry. Axcelis is dedicated to developing enabling process applications through the design, manufacture and complete life cycle support of ion implantation and cleaning systems. Axcelis also licenses its 50% owned joint venture, SEN Corporation, an SHI and Axcelis Company, to manufacture and sell certain implant products in Japan. The company's Internet address is: www.axcelis.com.
Axcelis Technologies, Inc.
Consolidated Statements of Operations
In thousands, except per share amounts
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
------------------- -------------------
2007 2006 2007 2006
--------- --------- --------- ---------
Revenue $107,553 $122,817 $315,152 $338,378
Cost of Revenue 71,284 69,551 194,043 198,128
Gross profit 36,269 53,266 121,109 140,250
Operating expenses
Research and development 18,288 17,597 54,114 54,000
Sales and marketing 12,411 11,743 38,495 33,919
General and administrative 10,367 11,986 31,037 34,258
Impairment of goodwill 4,658 0 4,658 0
Amortization of intangible
assets 656 656 1,968 1,895
Restructuring charges - 53 - 147
--------- --------- --------- ---------
46,380 42,035 130,272 124,219
--------- --------- --------- ---------
Income (loss) from operations (10,111) 11,231 (9,163) 16,031
Other income (expense)
Equity income of SEN 1,767 2,372 8,340 10,734
Interest income 1,224 2,250 3,824 5,816
Interest expense (1,587) (2,570) (4,822) (6,657)
Other-net 254 153 505 837
--------- --------- --------- ---------
1,658 2,205 7,847 10,730
--------- --------- --------- ---------
Income (loss) before income
taxes (8,453) 13,436 (1,316) 26,761
Income taxes (credits) (256) 916 (536) 1,552
--------- --------- --------- ---------
Net income (loss) $ (8,197) $ 12,520 $ (780) $ 25,209
========= ========= ========= =========
Net income (loss) per share
Basic $ (0.08) $ 0.12 $ (0.01) $ 0.25
Diluted $ (0.08) $ 0.12 $ (0.01) $ 0.25
Shares used in computing net
income (loss) per share
Basic $102,206 $101,165 $101,772 $101,003
Diluted $102,206 $101,612 $101,772 $101,205
Axcelis Technologies, Inc.
Consolidated Balance Sheets
In thousands
(Unaudited)
September 30, December 31,
2007 2006
------------- ------------
Assets
Current assets
Cash and cash equivalents $ 83,152 $ 140,451
Marketable securities - 63,200
Restricted cash 16,656 11,019
Accounts receivable, net 76,191 73,635
Inventories, net 175,547 160,107
Prepaid expenses and other current assets 30,361 26,639
------------- ------------
Total current assets 381,907 475,051
Property, plant and equipment, net 68,492 66,678
Investment in SEN 126,971 126,688
Goodwill 42,115 46,773
Intangible assets 11,581 13,549
Restricted cash, long-term portion - 1,137
Other assets 34,327 24,117
------------- ------------
$ 665,393 $ 753,993
============= ============
Liabilities and stockholders' equity
Current liabilities
Accounts payable $ 21,891 $ 37,312
Accrued compensation 14,285 26,996
Warranty 4,989 5,229
Income taxes 672 3,906
Deferred revenue 35,228 28,811
Current portion of convertible
subordinated debt - 74,217
Other current liabilities 7,727 13,670
------------- ------------
Total current liabilities 84,792 190,141
Convertible subordinated debt 79,142 76,887
Long-term deferred revenue 5,082 5,054
Other long-term liabilities 6,667 4,349
Stockholders' equity
Preferred Stock - -
Common stock 102 101
Additional paid-in capital 476,549 469,967
Treasury stock (1,218) (1,218)
Retained earnings 8,803 9,583
Accumulated other comprehensive income
(loss) 5,474 (871)
------------- ------------
489,710 477,562
------------- ------------
$ 665,393 $ 753,993
============= ============
CONTACT: Company Contact:
Axcelis Technologies, Inc.
David Snyder, +1 978-787-4273
Fax: +1 978-787-4275
david.snyder@axcelis.com
or
Investor Contact:
Axcelis Technologies, Inc.
Stephen Bassett, +1 978-787-4000
Fax: +1 978-787-9133
investor.relations@axcelis.com
or
Agency Contact:
Loomis Group
Heather Smith, +1 617-309-8005
Fax: +1 617-638-0033
smithh@loomisgroup.com
SOURCE: Axcelis Technologies, Inc.
