Axcelis Announces Results for the First Quarter 2002; Company Exceeds Revenue and Earnings Consensus Estimates
Cash and cash equivalents were $229.6 million at the end of the first quarter. The company raised $121.6 million in net cash proceeds through the sale of $125 million in convertible subordinated notes in January 2002.
Mary Puma, President and CEO said, "We are pleased with our increase in sequential quarterly net revenues, particularly given that 2001 was such a difficult year for the semiconductor capital equipment industry. Our business is definitely improving, with net bookings and quotation activity up significantly over the fourth quarter of 2001. While we are encouraged by these improvements, the trajectory of the upturn is still uncertain."
"Axcelis continues to build a strong platform for long term growth by developing and delivering innovative new products. We have just launched our next generation high current low energy ion implanters, the Ultra line, for both 200 mm and 300 mm to take advantage of increased demand as customers migrate to advanced 0.10 micron technologies. The Ultra line delivers higher productivity for low energy implantation for critical ultra shallow junction applications. We believe this will strengthen our competitive positioning in the high current market."
Neil Moses, Executive Vice President and Chief Financial Officer said, "For the second quarter of 2002 we expect worldwide revenues (including SEN) to be $110 to $120 million and net revenues (excluding SEN) to be $70 to $80 million. Our outlook reflects a continued improvement in our business, although SEN's sequential quarterly revenue improvement may not be indicative of a sustained improvement in their business. Corresponding net losses are expected to be in the range of $0.09 - $0.12 per share, a significant improvement over the first quarter due to higher worldwide revenues and margins as well as the continuing impact of cost reduction initiatives."
Safe Harbor Statement
This document contains forward-looking statements under the SEC safe harbor provisions. These statements 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 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, rapid thermal processing, and cleaning and curing systems. Axcelis Technologies has key technology centers in Beverly, Massachusetts, and Rockville, Maryland as well as in Toyo, Japan through its joint venture, SEN. The company's Internet address is: www.axcelis.com.
First Quarter Earnings Conference Call
Please join us for our first quarter conference call on April 24th at 5:00 pm ET. A webcast of the call can be accessed via our website: www.axcelis.com. The dial in numbers for the teleconference are as follows: Domestic: 1-800-360-9865; outside North America: 1-973-694-6836. You will be asked to provide the company name, Axcelis Technologies; the conference leader, Mark Namaroff; and the pass code, Axcelis 1Q. A telephone replay will also be available from 8:00 pm ET on April 24, 2002 until 5:00 pm ET on May 1st, 2002. Dial 1-800-428-6051 (1-973-709-2089 outside North America). Please enter conference ID code # 236117. A webcast replay will also be available from 8:00 pm ET on April 24, 2002 until 5:00 pm ET May 21, 2002.
Consolidated Statements of Operations
In thousands, except per share amounts
Quarter ended
March 31,
2002 2001
Net sales $ 62,085 $152,149
Cost of products sold 46,688 88,801
Gross profit 15,397 63,348
Operating expenses:
Research & development 17,712 19,262
Selling 11,238 13,380
General & administrative 11,947 17,711
Amortization of goodwill &
intangible assets 365 2,320
Income (loss) from operations (25,865) 10,675
Other income (expense):
Royalty income 567 2,800
Equity income of Sumitomo
Eaton Nova Corporation (1,962) 6,632
Interest income 957 2,377
Interest expense (1,198) --
Other income (expense) - net (361) 5
Total other income (expense) (1,997) 11,814
Income before income taxes (27,862) 22,489
Income taxes (10,031) 6,298
Net income (loss) $(17,831) $ 16,191
Basic net income (loss) per share $ (0.18) $ 0.17
Diluted net income (loss) per share $ (0.18) $ 0.17
Shares used in computing:
Basic net income (loss) per share 97,816 97,059
Diluted net income (loss) per share 97,816 97,599
Consolidated Balance Sheets
In thousands
March 31, December 31,
2002 2001
Assets
Current assets:
Cash and cash equivalents $ 229,578 $ 124,177
Accounts receivable 51,687 63,057
Inventories 104,338 105,339
Deferred income taxes &
other current assets 30,638 18,622
Total current assets 416,241 311,195
Property, plant & equipment, net 94,195 92,618
Investment in Sumitomo
Eaton Nova Corporation 45,802 48,183
Goodwill 39,282 39,282
Intangible assets 14,236 14,601
Other assets 48,365 45,517
Total assets $ 658,121 $ 551,396
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 30,150 $ 32,602
Accrued compensation 9,716 6,966
Warranty reserve 23,579 24,218
Income taxes payable -- --
Other current liabilities 18,759 20,997
Total current liabilities 82,204 84,783
Convertible debt 125,000 --
Deferred income taxes -- --
Other long-term liabilities 3,726 3,752
Stockholders' equity
Common stock 98 97
Additional paid-in capital 444,939 440,638
Deferred compensation (1,273) --
Treasury stock - at cost (1,218) (1,218)
Retained earnings 20,688 38,519
Accumulated other comprehensive
income (loss) (16,043) (15,175)
Total stockholders' equity $ 447,191 $ 462,861
Total liabilities and
stockholders' equity $ 658,121 $ 551,396
CONTACT:
Company Contact:
Maureen Hart
Axcelis Technologies, Inc.
(978) 787-4266
maureen.hart@axcelis.com
or
Investor Contact:
Mark Namaroff
Axcelis Technologies, Inc.
(978) 787-4000
investor.relations@axcelis.com
or
Agency Contact:
Dave Snyder
The Loomis Group Inc.
(617) 638-0022
snyderd@loomisgroup.com
