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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): February 7, 2022

 

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.):

 

¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  
¨Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  
¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
  
¨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 ¨

 

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. ¨

 

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 February 7, 2022, Axcelis Technologies, Inc. (the “Company”) issued a press release regarding its financial results for its fourth quarter and year ended December 31, 2021. 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 7, 2022. Filed herewith.
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

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: February 7, 2022 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 FOURTH QUARTER AND FULL YEAR 2021
Company Reports Record Full Year Revenue, Gross Margin and Operating Profit

 

BEVERLY, Mass. — Feb. 7, 2022 — Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the fourth quarter and full year ended December 31, 2021.

 

Highlights include:

 

·Record full year revenue, operating profit and gross margin since becoming an independent public company in 2001, enabling the Company to surpass its $650M revenue model two years ahead of plan.

 

·Continued strong growth of the Purion Power Series™ product line, which accounted for 29% of our 2021 systems revenue.

 

·Closure of four Purion evaluation units in the fourth quarter and a total of six for the full year, which strengthens our position across all market segments.

 

·Expanded manufacturing capacity with the opening of the new Axcelis Asia Operations Center in Korea.

 

For the full year 2021, the Company reported revenue of $662.4 million, compared with $474.6 million for the full year 2020, an increase of 40% and a Company record. Systems revenue for the year was $454.6 million, compared to $293.6 million in 2020, an increase of 55%, also a Company record. Operating profit was $127.3 million in 2021, compared to $58.0 million in 2020, an almost 120% increase and a Company record. Net income for the year was $98.7 million with diluted earnings per share of $2.88, compared to net income of $50.0 million and diluted earnings per share of $1.46 in 2020, resulting in a 97% year over year increase. Gross margin for the year was 43.2%, a Company record, compared to 41.8% in 2020.

 

The Company reported fourth quarter revenue of $205.7 million, above guidance, compared to $176.7 million for the third quarter of 2021. Operating profit for the quarter was $46.6 million, above guidance, compared to $36.4 million for the third quarter. Net income for the quarter was $35.7 million, or $1.05 per diluted share, above guidance, compared to $27.5 million in the third quarter, or $0.81 per diluted share. Gross margin for the quarter was 43.5%, above guidance, compared to 43.3% in the third quarter. Cash, cash equivalents and restricted cash were $295.7 million on December 31, 2021, a Company record, compared to $271.8 million on September 30, 2021. This is net of $12.5 million of stock buybacks in the quarter.

 

 

News Release  

 

President and CEO Mary Puma commented, “2021 was an outstanding year for Axcelis. We delivered the highest annual revenue since we became an independent public company, and we surpassed our $650M revenue model two years ahead of plan. It is an exciting time with unprecedented growth in the industry and robust customer demand for our products in all market segments and geographies. As a result of the strength of demand in this environment, we expect to achieve a quarterly revenue run rate supporting our $850 million revenue model this year.”

 

Executive Vice President and Chief Financial Officer Kevin Brewer said, “Axcelis’ fourth quarter and full year 2021 financial performance was exceptional thanks to the continued outstanding work of our employees and supply chain partners. For the full year 2021, operating profit increased almost 120% on a 40% increase in revenue, highlighting the significant leverage in our business model.”

 

Business Outlook
For the first quarter ending March 31, 2022, Axcelis expects revenues of approximately $193 million. Gross margin in the first quarter is expected to be approximately 43%. First quarter operating profit is forecasted to be approximately $41 million with earnings per diluted share of approximately $0.92.

 

Fourth Quarter and Full Year 2021 Conference Call
The Company will host a call to discuss the results for the fourth quarter and full year 2021 on Monday, February 7, 2022 at 5:00 p.m. 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: 3608769. 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.

 

 

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

 

 

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, 
   2021   2020   2021   2020 
Revenue:                    
Product  $198,529   $115,777   $634,445   $449,903 
Services   7,155    6,422    27,983    24,657 
Total revenue   205,684    122,199    662,428    474,560 
Cost of revenue:                    
Product   109,335    63,272    349,558    252,390 
Services   6,865    5,952    26,425    23,586 
Total cost of revenue   116,200    69,224    375,983    275,976 
Gross profit   89,484    52,975    286,445    198,584 
Operating expenses:                    
Research and development   16,416    16,320    65,431    61,833 
Sales and marketing   13,569    11,342    47,548    38,746 
General and administrative   12,915    11,238    46,141    39,964 
Total operating expenses   42,900    38,900    159,120    140,543 
Income from operations   46,584    14,075    127,325    58,041 
Other (expense) income:                    
Interest income   85    80    209    738 
Interest expense   (1,263)   (1,313)   (4,835)   (5,211)
Other, net   (140)   1,617    (2,271)   2,318 
Total other (expense) income   (1,318)   384    (6,897)   (2,155)
Income before income taxes   45,266    14,459    120,428    55,886 
Income tax provision (benefit)   9,517    (215)   21,778    5,904 
Net income  $35,749   $14,674   $98,650   $49,982 
Net income per share:                    
Basic  $1.07   $0.44   $2.94   $1.50 
Diluted  $1.05   $0.43   $2.88   $1.46 
Shares used in computing net income per share:                    
Basic weighted average common shares   33,295    33,548    33,555    33,257 
Diluted weighted average common shares   34,011    34,318    34,268    34,128 

 

 

News Release  

 

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)

 

   December 31,   December 31, 
   2021   2020 
ASSETS          
Current assets:          
Cash and cash equivalents  $294,923   $203,479 
Accounts receivable, net   104,410    86,865 
Inventories, net   194,984    161,076 
Prepaid expenses and other current assets   24,929    19,371 
Total current assets   619,246    470,791 
Property, plant and equipment, net   34,972    29,840 
Operating lease assets   9,242    4,542 
Finance lease assets, net   19,238    20,544 
Long-term restricted cash   757    753 
Deferred income taxes   35,454    57,851 
Other assets   34,331    40,303 
Total assets  $753,240   $624,624 
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current liabilities:          
Accounts payable  $38,025   $24,013 
Accrued compensation   30,732    24,562 
Warranty   6,424    4,280 
Income taxes   887    654 
Deferred revenue   60,454    21,221 
Current portion of finance lease obligation   979    756 
Other current liabilities   12,639    8,945 
Total current liabilities   150,140    84,431 
Long-term finance lease obligation   46,415    47,393 
Long-term deferred revenue   7,982    1,837 
Other long-term liabilities   9,744    9,361 
Total liabilities   214,281    143,022 
           
Stockholders’ equity:          
Common stock, $0.001 par value, 75,000 shares authorized; 33,240 shares issued and outstanding at December 31, 2021; 33,633 shares issued and outstanding at December 31, 2020   33    34 
Additional paid-in capital   559,883    570,102 
Accumulated deficit   (22,722)   (91,969)
Accumulated other comprehensive income   1,765    3,435 
Total stockholders’ equity   538,959    481,602 
Total liabilities and stockholders’ equity  $753,240   $624,624