UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 2.02 Results of Operations and Financial Condition
On February 10, 2021, Axcelis Technologies, Inc. (the “Company”) issued a press release regarding its financial results for its fourth quarter and year ended December 31, 2020. 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 February 10, 2021. Filed herewith. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
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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: February 10, 2021 | Axcelis Technologies, Inc. | |
| By: | /s/ KEVIN J. BREWER | |
| Kevin J. Brewer | ||
| Executive Vice President | ||
| and Chief Financial Officer | ||
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Exhibit 99.1
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News Release
AXCELIS ANNOUNCES FINANCIAL RESULTS FOR FOURTH QUARTER AND FULL YEAR 2020
Full Year 2020 Operating Income Increased 140% on a 38% Increase in Revenue
BEVERLY, Mass. — Feb. 10, 2021—Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the fourth quarter and full year ended December 31, 2020.
The Company reported fourth quarter revenue of $122.2 million, compared to $110.4 million for the third quarter of 2020. Operating profit for the quarter was $14.1 million, compared to $13.9 million for the third quarter. Net income for the quarter was $14.7 million, or $0.43 per diluted share, compared to net income for the third quarter of $10.8 million, or $0.32 per diluted share. EPS was favorably impacted by a previously unrecognized tax benefit of $0.11 per diluted share. Gross margin for the quarter was 43.4%, compared to 43.6% in the third quarter. Cash, cash equivalents and restricted cash were $204.2 million on December 31, 2020, compared to $212.7 million on September 30, 2020.
For the full year 2020, the Company reported revenue of $474.6 million, compared with $343.0 million for the full year 2019. Systems
revenue for the year was $293.6 million, compared to $202.6 million in 2019. Operating profit was $58.0 million in 2020, compared
to $24.2 million in 2019. Net income for the year was $50.0 million with diluted earnings per share of $1.46. This compares to
2019 net income of $17.0 million and earnings per diluted share of $0.50.
President and CEO Mary Puma commented, “After extraordinary revenue and earnings results in 2020, we are planning for another year of growth at Axcelis. The semiconductor market is forecast to show strength across all markets and the expanded Purion product family, specifically targeted at these markets, is poised for further growth.”
Executive Vice President and Chief Financial Officer Kevin Brewer said, “Axcelis delivered exceptional fourth quarter and full year 2020 financial performance. The Company achieved its highest annual revenue in the last 15 years due to the strength of the market and the competitive Purion product line. For the full year 2020, operating profit increased 140% on a 38% increase in revenue, highlighting the significant leverage in our business model.”
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News Release
Business Outlook
For the first quarter ending March 31, 2021, Axcelis expects revenues ranging from $118 to $138 million. Gross margin in the first quarter is expected to be approximately 40%. First quarter operating profit is forecasted to be in the range of $11-19 million with earnings per diluted share in the range of $0.22-0.42. The high end of our revenue range assumes the issuances of required U.S. Government export licenses in the first quarter.
Fourth Quarter and Full Year 2020 Conference Call
The Company will host a call to discuss the results for the fourth quarter and full year 2020 on Thursday, February 11, 2021 at 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 Audience Passcode: 3582149. 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.
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News Release
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
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News Release
Axcelis Technologies, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
| Three months ended | Twelve months ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Revenue: | ||||||||||||||||
| Product | $ | 115,777 | $ | 102,304 | $ | 449,903 | $ | 319,505 | ||||||||
| Services | 6,422 | 5,419 | 24,657 | 23,453 | ||||||||||||
| Total revenue | 122,199 | 107,723 | 474,560 | 342,958 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Product | 63,272 | 57,627 | 252,390 | 175,732 | ||||||||||||
| Services | 5,952 | 5,780 | 23,586 | 23,074 | ||||||||||||
| Total cost of revenue | 69,224 | 63,407 | 275,976 | 198,806 | ||||||||||||
| Gross profit | 52,975 | 44,316 | 198,584 | 144,152 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 16,320 | 13,596 | 61,833 | 53,931 | ||||||||||||
| Sales and marketing | 11,342 | 8,879 | 38,746 | 34,290 | ||||||||||||
| General and administrative | 11,238 | 8,629 | 39,964 | 31,726 | ||||||||||||
| Total operating expenses | 38,900 | 31,104 | 140,543 | 119,947 | ||||||||||||
| Income from operations | 14,075 | 13,212 | 58,041 | 24,205 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 80 | 582 | 738 | 2,955 | ||||||||||||
| Interest expense | (1,313 | ) | (1,306 | ) | (5,211 | ) | (5,155 | ) | ||||||||
| Other, net | 1,617 | 169 | 2,318 | (1,083 | ) | |||||||||||
| Total other income (expense) | 384 | (555 | ) | (2,155 | ) | (3,283 | ) | |||||||||
| Income before income taxes | 14,459 | 12,657 | 55,886 | 20,922 | ||||||||||||
| Income tax (benefit) provision | (215 | ) | 2,945 | 5,904 | 3,888 | |||||||||||
| Net income | $ | 14,674 | $ | 9,712 | $ | 49,982 | $ | 17,034 | ||||||||
| Net income per share: | ||||||||||||||||
| Basic | $ | 0.44 | $ | 0.30 | $ | 1.50 | $ | 0.52 | ||||||||
| Diluted | $ | 0.43 | $ | 0.29 | $ | 1.46 | $ | 0.50 | ||||||||
| Shares used in computing net income per share: | ||||||||||||||||
| Basic weighted average common shares | 33,548 | 32,485 | 33,257 | 32,559 | ||||||||||||
| Diluted weighted average common shares | 34,318 | 33,848 | 34,128 | 33,828 | ||||||||||||
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News Release
Axcelis Technologies, Inc.
Consolidated Balance Sheets
(In thousands, except per share amounts)
(Unaudited)
| December 31, | December 31, | |||||||
| 2020 | 2019 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 203,479 | $ | 139,881 | ||||
| Accounts receivable, net | 86,865 | 83,753 | ||||||
| Inventories, net | 161,076 | 140,364 | ||||||
| Prepaid expenses and other current assets | 19,371 | 11,681 | ||||||
| Total current assets | 470,791 | 375,679 | ||||||
| Property, plant and equipment, net | 29,840 | 25,328 | ||||||
| Operating lease assets | 4,542 | 5,849 | ||||||
| Finance lease assets, net | 20,544 | 21,880 | ||||||
| Long-term restricted cash | 753 | 6,653 | ||||||
| Deferred income taxes | 57,851 | 68,060 | ||||||
| Other assets | 40,303 | 44,645 | ||||||
| Total assets | $ | 624,624 | $ | 548,094 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 24,013 | $ | 25,341 | ||||
| Accrued compensation | 24,562 | 7,631 | ||||||
| Warranty | 4,280 | 2,759 | ||||||
| Income taxes | 654 | 294 | ||||||
| Deferred revenue | 21,221 | 24,601 | ||||||
| Current portion of finance lease obligation | 756 | 399 | ||||||
| Other current liabilities | 8,945 | 7,639 | ||||||
| Total current liabilities | 84,431 | 68,664 | ||||||
| Long-term finance lease obligation | 47,393 | 48,149 | ||||||
| Long-term deferred revenue | 1,837 | 4,650 | ||||||
| Other long-term liabilities | 9,361 | 7,204 | ||||||
| Total liabilities | 143,022 | 128,667 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock, $0.001 par value, 75,000 shares authorized; 33,633 shares issued and outstanding at December 31, 2020; 32,585 shares issued and outstanding at December 31, 2019 | 34 | 33 | ||||||
| Additional paid-in capital | 570,102 | 559,878 | ||||||
| Accumulated deficit | (91,969 | ) | (140,226 | ) | ||||
| Accumulated other comprehensive income (loss) | 3,435 | (258 | ) | |||||
| Total stockholders’ equity | 481,602 | 419,427 | ||||||
| Total liabilities and stockholders’ equity | $ | 624,624 | $ | 548,094 | ||||