UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): November 18, 2004

Axcelis Technologies, Inc.

(Exact name of registrant as specified in charter)

Registrant’s telephone number, including area code: (978) 787-4000

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.05    Costs Associated with Exit or Disposal Activities

On November 18, 2004, Axcelis Technologies, Inc. (the “Company”), in an employee communication, committed Axcelis to an exit plan involving the termination of employees under a plan of termination described in paragraph 8 of FASB Statement of Financial Accounting Standards No. 146 “Accounting For Costs Associated With Exit or Disposal Activities”, under which material charges will be incurred under generally accepted accounting principles.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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EXHIBIT INDEX

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Exhibit 99.1

FOR IMMEDIATE RELEASE

Axcelis to Consolidate Maryland-based Cleaning and Curing Group

Actions Expected to Reduce Operating Expenses by $5 Million on an Annualized Basis

BEVERLY, Mass. — November 24, 2004 – Axcelis Technologies Inc. (NASDAQ: ACLS) today announced that it will consolidate the administrative offices and development and customer support operations of its Cleaning and Curing product group, based in Rockville, Maryland, into its headquarters and manufacturing facility in Beverly, MA. The consolidation is part of the Company’s ongoing initiative to reduce its fixed cost infrastructure and to enhance profitability and cash flow.

The Company estimates the move will reduce operating expenses by approximately $5 million on an annualized basis, the benefits of which will begin to be realized when the relocation is completed in the third quarter of 2005. The Company estimates the costs of the consolidation to be incurred over the next three quarters to be approximately $10 million. The Rockville facility employs roughly 120 people, the majority of whom have been offered employment at Axcelis’ corporate headquarters.

Steve Bassett, chief financial officer, said, “Consolidating our organization will improve operating leverage and enhance profitability throughout all phases of the cycle.  This action is one of several ongoing processes to control costs and improve productivity throughout the Company.”

Mary Puma, president and chief executive officer, said, “Our focus remains on maintaining our leadership position in ion implant, while increasing our presence in dry strip and selected emerging applications.  The strength of our product portfolio, combined with ongoing improvements in operational leverage, will position us well for continued profitability going forward.”

Safe Harbor Statement

This document contains forward-looking statements under the SEC safe harbor provisions including the Company’s projected savings from the consolidation, expected timing of the consolidation, costs related to the consolidation and expected profitability. 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, including headcount reduction and other cost-containment initiatives.  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, dry strip and emerging applications. Axcelis Technologies has key technology centers in Beverly, Massachusetts, and Toyo, Japan through its joint venture, SEN. The company’s Internet address is: www.axcelis.com.

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