Axcelis Announces Financial Results For Third Quarter 2020

November 5, 2020 at 4:01 PM EST
Company Reports Strong Earnings Driven by Robust Gross Margins

BEVERLY, Mass., Nov. 5, 2020 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the third quarter ended September 30, 2020.

The Company reported third quarter revenue of $110.4 million, compared to $123 million for the second quarter of 2020. Operating profit for the quarter was $13.9 million, compared to $16.4 million for the second quarter. Net income for the quarter was $10.8 million, or $0.32 per diluted share, compared to net income for the second quarter of $13.3 million, or $0.39 per diluted share. Gross margin for the quarter was 43.6%, compared to 42.2% in the second quarter. Cash, cash equivalents and restricted cash were $212.7 million on September 30, 2020, compared to $197 million on June 30, 2020.

President and CEO Mary Puma commented, "We are pleased with our third quarter performance, which met or exceeded guidance and consensus. The Company delivered strong earnings driven by robust gross margins. We continue to expand our large and diverse customer base in key market segments, with new penetrations of the Purion H and new Purion product extensions. We are exiting 2020 with good momentum, positioning us well to capitalize on the expectation that 2021 will be a strong investment year and for the achievement of our $550 and $650 million dollar target models over the next several years." 

Business Outlook
For the fourth quarter ending December 31, 2020, Axcelis expects revenues to be approximately $110 million with gross margin around 41%. Fourth quarter operating profit is forecasted to be approximately $10 million with earnings per diluted share of approximately $0.21.

Third Quarter 2020 Conference Call
The Company will host a call to discuss the results for the third quarter 2020 on Friday, November 6, 2020 at 8:30 am ET.  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. If you would like to ask a question, the dial in number is 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 Conference ID: 1999553. Please dial in at least 15 minutes in advance to ensure a timely connection to the call. 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 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 


Nine months ended





September 30,


September 30,




2020

2019

2020

2019

Revenue:












Product

$

104,799

$

64,290

$

334,126

$

217,201

Services

5,606

5,163

18,235

18,034

Total revenue

110,405

69,453

352,361

235,235

Cost of revenue:












Product

56,427

33,587

189,118

118,105

Services

5,817

5,285

17,634

17,294

Total cost of revenue

62,244

38,872

206,752

135,399

Gross profit

48,161

30,581

145,609

99,836

Operating expenses:












Research and development

14,867

12,930

45,513

40,335

Sales and marketing

9,763

8,057

27,404

25,411

General and administrative

9,649

7,707

28,726

23,097

Total operating expenses

34,279

28,694

101,643

88,843

Income from operations

13,882

1,887

43,966

10,993

Other (expense) income:












Interest income

106

687

658

2,373

Interest expense

(1,296)

(1,308)

(3,898)

(3,849)

Other, net

900

(890)

701

(1,252)

Total other expense

(290)

(1,511)

(2,539)

(2,728)

Income before income taxes

13,592

376

41,427

8,265

Income tax provision (benefit)

2,807

(328)

6,119

943

Net income

$

10,785

$

704

$

35,308

$

7,322

Net income per share:












Basic

$

0.32

$

0.02

$

1.06

$

0.22

Diluted

$

0.32

$

0.02

$

1.04

$

0.22

Shares used in computing net income per share:












Basic weighted average common shares

33,477

32,344

33,159

32,584

Diluted weighted average common shares

34,174

33,323

34,070

33,821

 

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)






September 30,


December 31,




2020

2019

ASSETS






Current assets:






Cash and cash equivalents

$

211,967

$

139,881

Accounts receivable, net

45,161

83,753

Inventories, net

159,658

140,364

Prepaid expenses and other current assets

18,982

11,681

Total current assets

435,768

375,679

Property, plant and equipment, net

29,199

25,328

Operating lease assets

4,655

5,849

Finance lease assets, net

20,872

21,880

Long-term restricted cash

750

6,653

Deferred income taxes

58,247

68,060

Other assets

41,165

44,645

Total assets

$

590,656

$

548,094

LIABILITIES AND STOCKHOLDERS' EQUITY






Current liabilities:






Accounts payable

$

24,260

$

25,341

Accrued compensation

18,856

7,631

Warranty

4,151

2,759

Income taxes

328

294

Deferred revenue

13,118

24,601

Current portion of finance lease obligation

705

399

Other current liabilities

7,965

7,639

Total current liabilities

69,383

68,664

Long-term finance lease obligation

47,593

48,149

Long-term deferred revenue

3,851

4,650

Other long-term liabilities

9,166

7,204

Total liabilities

129,993

128,667








Stockholders' equity:






Common stock, $0.001 par value, 75,000 shares authorized; 33,491 shares issued and outstanding at September 30, 2020; 32,585 shares issued and outstanding at December 31, 2019

33

33

Additional paid-in capital

566,195

559,878

Accumulated deficit

(106,643)

(140,226)

Accumulated other comprehensive income (loss)

1,078

(258)

Total stockholders' equity

460,663

419,427

Total liabilities and stockholders' equity

$

590,656

$

548,094








 

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SOURCE Axcelis Technologies, Inc.