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):  October 31, 2019

 

Axcelis Technologies, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware

 

000-30941

 

34-1818596

(State or other jurisdiction

 

(Commission

 

(IRS Employer

of incorporation)

 

File Number)

 

Identification No.)

 

108 Cherry Hill Drive, Beverly, Massachusetts

 

01915

(Address of principal executive offices)

 

(Zip Code)

 

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 (see General Instruction A.2.):

 

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))

 

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 the 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

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.001 per share

 

ACLS

 

NASDAQ Global Select Market

 

 

 


 

Item 2.02 Results of Operations and Financial Condition

 

On October 31, 2019, Axcelis Technologies, Inc. (the “Company”) issued a press release regarding its financial results for its quarter ended September 30, 2019.  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.

 

Exhibit No.

 

Description

 

 

 

99.1

 

Press Release dated October 31, 2019. Filed herewith.

 

2


 

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: October 31, 2019

 

Axcelis Technologies, Inc.

 

 

 

 

 

 

By:

/s/ KEVIN J. BREWER

 

 

 

Kevin J. Brewer

 

 

 

Executive Vice President

 

 

 

and Chief Financial Officer

 

3


Exhibit 99.1

 

News Release

 

 

AXCELIS ANNOUNCES FINANCIAL RESULTS FOR THIRD QUARTER 2019

 

Company Introduces Four New Purion Products During the Quarter

 

BEVERLY, Mass. — Oct. 31, 2019—Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the third quarter ended September 30, 2019.

 

The Company reported third quarter revenue of $69.5 million, compared to $74.3 million for the second quarter of 2019. Operating profit for the quarter was $1.9 million, compared to $2.0 million for the second quarter. Net income for the quarter was $0.7 million, or $0.02 per diluted share, compared to net income for the second quarter of $0.6 million, or $0.02 per diluted share. Gross margin for the quarter was 44%, compared to 42.7% in the second quarter. Cash, cash equivalents and restricted cash were $162.2 million on September 30, 2019, compared to $143.2 million on June 30, 2019.

 

President and CEO Mary Puma commented, “Axcelis is uniquely positioned to solve customers’ high value, high impact, ion implantation challenges. We’re excited about the recent launch of our new high current and high energy Purion products, which were developed to meet these challenges in emerging market segments, timed perfectly for the market recovery.  These new products and our close partnerships with customers will allow us to grow and put us on a path to achieve our $650M target business model.”

 

Executive Vice President and CFO Kevin Brewer noted, “I am very pleased with our third quarter financial performance. With in-line revenues and EPS, stronger gross margins, and tight cost controls, we were profitable for the quarter. We believe the quarter was the bottom of the cycle for Axcelis which means we have maintained through-cycle profitability for the first time as a public company. This is an indication of the many changes we have made to our business as we drive revenue growth and profitability.”

 

Business Outlook

 

For the fourth quarter ending December 31, 2019, Axcelis expects revenue to be in the range of $92-100 million. Gross margin in the fourth quarter is expected to be approximately 38%. Fourth quarter operating profit is forecasted to be approximately $6.0 million to $9.0 million. Earnings per diluted share is expected to be in the range of $0.14-0.20.

 

Third Quarter 2019 Conference Call

 

The Company will host a call to discuss the results for the third quarter 2019 on Friday, November 1, 2019 at

 


 

News Release

 

 

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, or by dialing 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: 9627479. 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

 


 

News Release

 

Axcelis Technologies, Inc.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

 

2019

 

2018

 

2019

 

2018

 

Revenue:

 

 

 

 

 

 

 

 

 

Product

 

$

64,290

 

$

88,496

 

$

217,201

 

$

317,039

 

Services

 

5,163

 

6,878

 

18,034

 

19,853

 

Total revenue

 

69,453

 

95,374

 

235,235

 

336,892

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

Product

 

33,587

 

49,136

 

118,105

 

181,423

 

Services

 

5,285

 

6,325

 

17,294

 

19,400

 

Total cost of revenue

 

38,872

 

55,461

 

135,399

 

200,823

 

Gross profit

 

30,581

 

39,913

 

99,836

 

136,069

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Research and development

 

12,930

 

12,845

 

40,335

 

37,631

 

Sales and marketing

 

8,057

 

7,923

 

25,411

 

25,246

 

General and administrative

 

7,707

 

8,477

 

23,097

 

24,755

 

Total operating expenses

 

28,694

 

29,245

 

88,843

 

87,632

 

Income from operations

 

1,887

 

10,668

 

10,993

 

48,437

 

Other (expense) income:

 

 

 

 

 

 

 

 

 

Interest income

 

687

 

593

 

2,373

 

1,518

 

Interest expense

 

(1,308)

 

(1,323)

 

(3,849)

 

(3,787)

 

Other, net

 

(890)

 

(592)

 

(1,252)

 

(1,710)

 

Total other expense

 

(1,511)

 

(1,322)

 

(2,728)

 

(3,979)

 

Income before income taxes

 

376

 

9,346

 

8,265

 

44,458

 

Income tax (benefit) provision

 

(328)

 

508

 

943

 

7,036

 

Net income

 

$

704

 

$

8,838

 

$

7,322

 

$

37,422

 

Net income per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.02

 

$

0.27

 

$

0.22

 

$

1.16

 

Diluted

 

$

0.02

 

$

0.26

 

$

0.22

 

$

1.10

 

Shares used in computing net income per share:

 

 

 

 

 

 

 

 

 

Basic weighted average common shares

 

32,344

 

32,365

 

32,584

 

32,225

 

Diluted weighted average common shares

 

33,323

 

33,973

 

33,821

 

34,032

 

 


 

News Release

 

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)

 

 

 

September 30,

 

December 31,

 

 

 

2019

 

2018

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

155,317

 

$

177,993

 

Short-term restricted cash

 

149

 

 

Accounts receivable, net

 

49,046

 

78,727

 

Inventories, net

 

138,353

 

129,000

 

Prepaid expenses and other current assets

 

11,050

 

11,051

 

Total current assets

 

353,915

 

396,771

 

Property, plant and equipment, net

 

25,130

 

41,149

 

Operating lease assets

 

6,175

 

 

Finance lease assets, net

 

22,231

 

 

Long-term restricted cash

 

6,707

 

6,909

 

Deferred income taxes

 

71,121

 

71,939

 

Other assets

 

45,198

 

31,673

 

Total assets

 

$

530,477

 

$

548,441

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

21,320

 

$

35,955

 

Accrued compensation

 

6,961

 

19,218

 

Warranty

 

3,251

 

4,819

 

Income taxes

 

269

 

462

 

Deferred revenue

 

23,300

 

19,513

 

Current portion of long-term debt

 

252

 

 

Other current liabilities

 

7,674

 

5,030

 

Total current liabilities

 

63,027

 

84,997

 

Finance lease obligation

 

48,297

 

47,757

 

Long-term deferred revenue

 

4,141

 

3,071

 

Other long-term liabilities

 

7,165

 

4,279

 

Total liabilities

 

122,630

 

140,104

 

Commitments and contingencies

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock, $0.001 par value, 75,000 shares authorized; 32,397 shares issued and outstanding at September 30, 2019; 32,558 shares issued and outstanding at December 31, 2018

 

32

 

33

 

Additional paid-in capital

 

559,063

 

565,116

 

Accumulated deficit

 

(149,938)

 

(157,260)

 

Accumulated other comprehensive (loss) income

 

(1,310)

 

448

 

Total stockholders’ equity

 

407,847

 

408,337

 

Total liabilities and stockholders’ equity

 

$

530,477

 

$

548,441