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): September 24, 2019
Axcelis Technologies, Inc.
(Exact name of registrant as specified in its charter)
Delaware |
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000-30941 |
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34-1818596 |
(State or other jurisdiction |
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(Commission |
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(IRS Employer |
of incorporation) |
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File Number) |
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Identification No.) |
108 Cherry Hill Drive, Beverly, Massachusetts |
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01915 |
(Address of principal executive offices) |
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(Zip Code) |
Registrants 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))
Securities registered pursuant to Section 12(b) of the Act:
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Trading symbol(s) |
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Name of each exchange on |
Common Stock, $0.001 par value |
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ACLS |
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Nasdaq Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 7.01 Regulation FD Disclosure.
On September 24, 2019, the Company posted a new investor presentation on its Investor website (https://investor.axcelis.com/), which is filed as Exhibit 99.1 to this Form 8-K.
tem 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit No. |
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Description |
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99.1 |
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Investor Presentation dated September 24, 2019. Filed herewith. |
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: September 24, 2019 |
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Axcelis Technologies, Inc. | |
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By: |
/s/ Lynnette C. Fallon |
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Lynnette C. Fallon |
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Executive Vice President HR/Legal and General Counsel |
2 expectations for statements managements are described fer materially ard-looking Safe Harbor Statement This presentation and discussion contain forward-looking statements, including our future revenues, expense reductions, profits, and other results that are forward-looking under the SECs safe harbor provision. These forward-looking statements are based on current expectations, and are subject to the risks inherent in our business. These risks in detail in our Form 10-K annual report and other SEC filings. Our actual results may dif from our current expectations. We do not assume any obligation to update these forw statements. 2
dation The Future Built on a Strong Purion Foun Mary Puma President and CEO 3
Axcelis is Uniquely Positioned with the Capability, DNA, and Unwavering Focus to olve customers high value, high impact, on implantation challenges. s i 4
Purion Fueling Axcelis Growth TODAYS KEY TAKEAWAYS New product introductions New target business model Enhanced marketing & product development THE BEGINNING OF PURION Created the organization required to develop the common platform and base products while under significant financial pressure FOCUSED MARKET SEGMENTATION Established differentiated segment-focused Purion products that deliver high value to customers and Axcelis THE NEXT WAVE OF PURION Accelerate the segment-focused strategy into the high current market that represents 60% of the Ion Implant TAM UNWAVERING FOCUS Solve customer high value, high impact implant challenges that will drive customer, employee and investor satisfaction 5
lopment The Benefits of Concurrent Product Deve Russell Low, Ph.D. Executive Vice President, Engineering 6
currently me Concurrent Product Development (CPD) A work methodology based on the parallelization of tasks; i.e. Performing tasks con Simultaneous, upfront engagement by a fully cross-functional, integrated team The right people at the right time Spend more time up front, so you spend less time at the end Get it right the first ti Results in more mature products out of the box with Quality as a natural outcome 7
& Tools) ng Axcelis Implementation of Concurrent Product Development All newly announced products have been developed utilizing the CPD methodology We kicked-off the CPD initiative in February 2017, surveying 132 employees Benchmark CPD practices in all four SPOT domains (Strategy, Process, Organization Identified five key initiatives for development Regular re-evaluation of CPD practices is used Similar to the well entrenched Lean/Kaizen approaches used by Axcelis manufacturi In January 2019, full SPOT diagnostic (2nd) administered Measured the progress in five targeted CPD initiatives Offered recommendations on becoming Best in Class; Continuous improvement 8
Spotlight: Building Out the DFx Initiative Design for X or Excellence (Also known as DfX) is a general term used during product that serves as a placeholder for different design objectives Axcelis is Focusing on these 7 Xs: Cost (DfC) Supply Chain (DfSC) Manufacturability (DfM) Service Revenue (DfSR) Serviceability (DfS) Reliability (DfR) Installation (DfI) development 9 Design for X (DfX) Collaborate Early and Design Once
Value of Concurrent Product Development Higher Customer Satisfaction and Improved Financial Performance Increased market share Lower OPEX Higher Quality Better pricing Stronger product pipeline Improved gross m argin 10*Grand Median Reductions Based on 25 Studies of the Impact of CPD Among 11 Industry Groups - Leong & Collins, 1997
gmentation egy The Evolution of Ion Implantation Market Se Doug Lawson Executive Vice President, Corporate Marketing and Strat 11
Applications Space Coverage General Purpose Products Derived through Technical Capability Purion H Purion MPurion XE 12
process technology stomers and industry device type tunities implant recipes alue/high impact es for customer. market opportunity n product extension High Level Market Segmentation for Advanced and Emerging Technology Segment by Work with cu peers to identi Segment by Work with dev implant oppor Assess 30-40 Identify high v implant recip Analyze the Develop Purio using CPD fy implant opportunities ice engineers to identify 13
The Next Wave of Purion Bill Bintz Executive Vice President, Product Development 14
ket continues to of >9% through 2023 automotive, security and ices smart phone Image Sensors Strong Market Growth with High Implant Capital Intensity Image sensor mar thrive with CAGR High growth in m including industrial Volume to contin mobile as more s smart phone dev Cameras per forecast to grow ost segments ue to be driven by ensors added to at 6.2% CAGR 15
steps required to p-well vely towards ng need for higher count, driving need Isolation p-well Isolation p-well Image Sensors Operating Principle & Emerging Implant Requirements Image sensors utilize a ph capture photons and conv electrical current Large number of implant fabricate an image sensor high energy implant steps Industry moving aggressi deeper photodiodes, drivi energy implants Deep p-well Challenges associated wit dark current/white pixel for reduced metals levels, energetic metals otodiode area to ert them to particularly h reduction of particularly 16 High Implant Capital Intensity Reset Gate p+ Pinning Layer Shallow n-PD p-well n+ Floatingn+ DiffusionSSTTII STI Deep n-PhotodiodeGraded p-layernLDD (a series of chained implants) Depletion regionp-substrate Transfer Gate
ever improving (CIS) performance in nfra-red regions engths associated nfra-red region of have larger ths in Si requirement for ng max energy Image Sensors Emerging Device Fabrication Technical Requirements Drive towards image sensor the deep red to i Longer wavel with the red to i +=light spectrum absorption leng Deep p-well In turn, driving deeper image se and related isola Ultimately movi requirements to >12MeV nsor photodiodes tion well depths higher MeV levels: 17 Transfer Gate STI Pinning Diode n+ Floating Diffusion STI p-n-Photodiode wellp-well
TechnologyTM energetic metals for current and white capability for performance image performance ogy enables a Purion XEmax New High Energy Extension Targeting Advanced Image Sensor Applications Patented Boost Filters out reduced dark pixel count level Enables energy emerging high sensors Strong CoO New technol dramatic prod for customers s uctivity advantage 18
mprised of multiple uctures, including ar devices Si, SiC, GaN ce driven by specific nts, weight mitations, etc. wer device market automotive industries nt capabilities Power Device Market Strong Market Growth with Increasing Implant Capital Intensity Power device market co device technologies voltage, operating Multiple device str MOSFET, IGBT, and Bipol Multiple material types Device technology of choi application requirements Power requirements, max frequency, size constrai constraints, power loss li Yole Development Strong growth in overall po driven by industrial and Growing need for new impla 19
emerged as a leader ency for EV/HEV market energy an expanding set capabilities SiC Power Device Market Very High Growth Rate with High Implant Capital Intensity SiC devices have in markets requiring high operating frequ Strong adoption and renewable Driving the need for of new implant high power with 20
development of Trench MOSFET fundamentally new device technology e- Higher than historic max energy capability - for SiC devices (~500 C) Power Device Operating Principle & Emerging Implant Requirements Example: SiC Power Device Power Device performance requirements driving Reduced Ron for lower power consumption and thermal dissipation demands High blocking voltages (100s to 1000s of volts) Fast on-off switching speeds Reduced size & weight of power module Above requirements driving need for a wide range device implant capabilities, including Need for high dose implants above 60keV Implanting of SiC substrates New implant materials: Use of Aluminum ions DrainElevated temperature implants for SiC devices reduced of new power 21 Gate SourceSource n++n++ P welle-e- P well e-e- e-e- N-epie-Drift e-Region e-e N+ Substrate
ndustry leading product Accelerator proven Purion M ology ant wafer ng m source ogy Purion XE SiC New High Energy Extension Targeting Advanced Power Device Applications Built off i Purion XE RF Linear technology highest pro reliability Leverages SiC techn Hot impl processi Aluminu technol delivers industrys ductivity and 22
current architectural emerging high dose, applications architecture enables a ty/CoO advantage tive medium current products Purion H200 New Extension to the Purion H Family Targeting Power Device Applications A unique high solution for higher energy High current large productivi versus competi based solutions Built off of Axcel Purion H80 is Purion H60 and 23
0 GAA aJtcelis 90nm65nm45/40nm32/28nm22/20nm16/14nmIOnm8/7nmSnm IC Knowledge, 03/2018 24 30 FinFET Strain Engineering HKMG 0 0 0 0 0 0 0
accomplished ectures ants for electrical structures require cation implants, dominant focus nued need to improve Advanced Memory and Logic/Foundry Devices Emerging Implant Requirements Overall scaling objectives being through strategies beyond traditiona Ever increasing use of 3D archit Expanding use of new or modified Implications for ion implant include Increasing use of low energy impl contact performance optimization Related high aspect ratio and 3D improved angle and dose control Increasing use of material modifi often at very low energies Cost of ownership(CoO) remains a area for customers, driving conti implanter productivity l scaling materials 25
ons for advance c devices anced spot beam delivers best in class e control for most high aspect ratio and applications result of a Joint ory customer and aluation phase Purion Dragon Revolutionary New High Current Implanter Architecture Purion Dragon optics advance productivity to With focus on l dose applicati memory & logi Systems adv technology dose and angl challenging 3D structure Product is a Development P leading mem currently in ev orthogonal beam s high current the next level ow energy, high rogram with a 26
Image Sensors Image Sensors Advanced Memory/Logic Base Purion Product Power Power /on Implantation Phase 1 Phase 2 Current Phase --27 --------------------------------a ceHs H200 XESiC Dragon H XE EXE M MSiC High Current High Energy Medium Current
Purion The Financial Benefits of the Next Wave of Kevin Brewer Chief Financial Officer 28
44-45% High value upgrades on commonality anning ence capability and efficiency cess IATF 16949 support PRICING SUPPLY CHAIN LEAN QUALITY CS&I Gross Margin Provides the Fuel for Investment and Profitability PRICING Product extensions New products SUPPLY CHAIN Pillars of Gross Margin ImprovementMake vs Buy decision Leverage volume and Puri Global sourcing LEAN Cycle improvement Labor productivity Capacity and resource pl QUALITY Improve customer experi Enhance organizational Certified ISO9001, In-pro Concurrent Product DevelopmentCS&I Market Segment Focused ProductsAccretive to the business One stop shopping with un Purion Common PlatformProvides strong customer ique offerings 29
30 Model* Target Business Model (GAAP) 30* The model is not a forecast of results but is intended to be indicative of the annual results Axcelis may achieve based on our strategic objectives ** Assumes our federal net operating loss carryforwards have been consumed and Axcelis is now paying cash taxes Revenue $301.5M 2015(A) $267M 2016(A) $410.6M 2017(A) $442.6M 2018(A) $550M Model* $650M Gross Margin 33.7% 37.3% 36.6% 40.6% 42-43% 44-45% Total OPEX 26.8% 31.1% 24.9% 27.0% ~25% ~24% Operating Profit 6.9% 6.2% 11.7% 13.5% 17-18% 20-21% Free Cash Flow (Cash From Operations Capex) 5.5% (4.1%) 11.9% 9.5% >15% >17%**
Axcelis is Uniquely Positioned with the Capability, DNA, and Unwavering Focus to olve customers high value, high impact, on implantation challenges. s i 31