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): May 2, 2007

Axcelis Technologies, Inc.

(Exact name of registrant as specified in its 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 2.02   Results of Operations and Financial Condition

On May 2, 2007, Axcelis Technologies, Inc. (the “Company”) issued a press release regarding its financial results for the quarter ended March 31, 2007. The Company’s press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference herein.

Item 9.01  Financial Statements and Exhibits

(c) Exhibits

Exhibit No.		Description
99.1		Press Release dated May 2, 2007

 

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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.

Date: May 2, 2007	Axcelis Technologies, Inc.
	By:		/s/ STEPHEN G. BASSETT
			Stephen G. Bassett Executive Vice President and Chief Financial Officer

 

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Exhibit No.		Exhibit Index
99.1		Press Release dated May 2, 2007

 

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Exhibit 99.1

Company Contact:		Investor Contact:		Agency Contact:
Maureen Hart		Stephen Bassett		Heather Smith
Axcelis Technologies, Inc.		Axcelis Technologies, Inc.		Loomis Group
Tel: +1 (978) 787 4266		Tel: +1 (978) 787 4000		Tel: +1 (617) 309 8005
Fax: +1 (978) 787 4275		Fax: +1 (978) 787 9133		Fax: +1 (617) 638 0033
maureen.hart@axcelis.com		investor.relations@axcelis.com		smithh@loomisgroup.com

 

AXCELIS ANNOUNCES FINANCIAL RESULTS
FOR FIRST QUARTER 2007

Company reports strong traction with ion implant and dry strip product penetrations

BEVERLY, Mass. — May 2, 2007 — Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the first quarter ended March 31, 2007. The Company reported revenues of $97.5 million, compared to $123.3 million for the fourth quarter of 2006. Net income for the first quarter was $2.7 million, or $0.03 per share, compared to net income for the fourth quarter of 2006 of $15.6 million, or $0.15 per share. In the corresponding quarter for the previous year, the Company reported revenues of $97.9 million and net income of $0.5 million, or $0.01 per share.

Commenting on the Company’s performance, Chairman and CEO Mary Puma said, “We are pleased with the momentum of our Optima HD implanter. During the quarter, new design wins and follow-on orders accelerated as leading chipmakers made new technology decisions and added capacity. The product is demonstrating exceptional results in production — providing both enabling and highly productive performance. Looking forward, we are confident these customer successes will continue to enhance our market position.”

She continued, “During the quarter, we also made excellent progress with dry strip, receiving several high volume capacity orders. In 2006, we increased systems revenue 126%, the largest gain among our competitors. We expect this traction to continue as customers add capacity and we expand our product offerings.”

First Quarter Detail

Shipments and Margins

Shipments before provision for deferred revenue for the first quarter totaled $99.9 million. Geographically, Axcelis’ systems shipments for the quarter were to: Asia, 67%; North America, 25%; and Europe, 8%. The ion implantation business accounted for 71% of total shipments in the first quarter, while other products (dry strip, curing, and RTP) accounted for 29%. Gross margin for the first quarter was 42.3%.

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Orders and Backlog

Orders (new systems bookings and service) received for the first quarter totaled $99.8 million. New systems bookings, excluding service, amounted to $55.4 million. Backlog plus deferred systems revenue at quarter end was $127.3 million. Backlog consists of systems only (i.e., excluding service contracts) 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 first quarter totaled $79.0 million.

Business Outlook

Axcelis’ financial outlook for the second quarter of 2007 includes revenues in the range of $108 million to $118 million. Gross margins in the second quarter are expected to remain in the low 40’s. The Company forecasts second quarter earnings per share in the range of $0.03 to $0.07 per share. Axcelis assumes no responsibility to update guidance. Axcelis will only confirm or update guidance via a press release.

First Quarter 2007 Conference Call

The Company will be hosting a conference call today, Wednesday, May 2, 2007, beginning at 5:00 pm ET. The purpose of the call is to discuss first quarter results and to provide guidance for the second 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: Maureen Hart; and pass code: #4830480. A webcast replay will be available from 8:00 pm ET on May 2, 2007, until 5:00 pm ET June 2, 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.

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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 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.

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Axcelis Technologies, Inc.

Consolidated Statements of Operations

In thousands, except per share amounts

(Unaudited)

 

		Three months ended
		March 31,
		2007			2006
Revenue
Systems		$	51,065		$	52,404
Services		44,402			44,081
Royalties, primarily from SEN		2,059			1,436
		97,526			97,921
Cost of Revenue		56,276			58,879
Gross profit		41,250			39,042
Operating expenses
Research and development		18,228			18,212
Sales and marketing		12,938			10,607
General and administrative		10,476			10,853
Amortization of intangible assets		656			612
Restructuring charges		—			(305		)
		42,298			39,979
Loss from operations		(1,048		)	(937		)
Other income (expense)
Equity income of SEN		4,667			2,216
Interest income		1,454			1,651
Interest expense		(1,668		)	(1,641		)
Other—net		(24		)	(655		)
		4,429			1,571
Income before income taxes		3,381			634
Income taxes		709			89
Net income		$	2,672		$	545
Net income per share
Basic		$	0.03		$	0.01
Diluted		$	0.03		$	0.01
Shares used in computing net income per share
Basic		101,492			100,883
Diluted		102,421			101,823

 

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Axcelis Technologies, Inc.

Consolidated Balance Sheets

In thousands

(Unaudited)

 

 

		March 31,			December 31,
		2007			2006
Assets
Current assets
Cash and cash equivalents		$	45,412		$	140,451
Marketable securities		34,000			63,200
Restricted cash		12,194			11,019
Accounts receivable, net		80,040			73,635
Inventories, net		173,967			160,107
Prepaid expenses and other current assets		33,353			26,639
Total current assets		378,966			475,051
Property, plant and equipment, net		68,063			66,678
Investment in SEN		126,988			126,688
Goodwill		46,773			46,773
Intangible assets		12,893			13,549
Restricted cash, long-term portion		—			1,137
Other assets		27,972			24,117
		$	661,655		$	753,993
Liabilities and stockholders’ equity
Current liabilities
Accounts payable		$	26,948		$	37,312
Accrued compensation		13,130			26,996
Warranty		4,609			5,229
Income taxes		3,784			3,906
Deferred revenue		34,928			28,811
Other current liabilities		8,765			13,670
Current portion, long term debt		—			74,217
Total current liabilities		92,164			190,141
Long-term debt		77,624			76,887
Long-term deferred revenue		3,427			5,054
Other long-term liabilities		4,568			4,349
Commitments and contingencies		—			—
Stockholders’ equity
Preferred Stock		—			—
Common stock		102			101
Additional paid-in capital		472,477			469,967
Deferred compensation		—			—
Treasury stock		(1,218		)	(1,218		)
Retained earnings		12,256			9,583
Accumulated other comprehensive income (loss)		255			(871		)
		483,872			477,562
		$	661,655		$	753,993