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):  November 1, 2018

 

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:

 

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) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2). 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

 

 

 


 

Item 2.02 Results of Operations and Financial Condition

 

On November 1, 2018, Axcelis Technologies, Inc. (the “Company”) issued a press release regarding its financial results for its quarter ended September 30, 2018.  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 November 1, 2018. 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: November 1, 2018

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 2018

Company Reports Solid Gross Margin Performance Across Diverse Customer Base

 

BEVERLY, Mass. — Nov. 1, 2018—Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the third quarter ended September 30, 2018.

 

The Company reported third quarter revenue of $95.4 million, compared to $119.3 million for the second quarter of 2018. Operating profit for the quarter was $10.7 million, compared to $19.3 million for the second quarter. Net income for the quarter was $8.8 million, or $0.26 per diluted share, compared to net income for the second quarter of 2018 of $14.7 million, or $0.43 per diluted share. Included in the quarter is a tax benefit of $1.4 million or $0.04 per diluted share relating to the calculation of transition tax under the 2017 Tax Cuts and Jobs Act. Gross margin for the quarter was 41.8%, compared to 41.1% in the second quarter. Cash, cash equivalents and restricted cash were $155.6 million at September 30, 2018, compared to $154.9 million on June 30, 2018.

 

“We continue to see significant demand from a highly diverse customer base for the capabilities the Purion Platform provides to address their challenging technology requirements,” commented President and CEO Mary Puma. “Our aggressive initiatives to improve gross margin, combined with favorable revenue mix, delivered results above our Q3 guidance and are enabling the achievement of our 40% gross margin target for 2018.”

 

Business Outlook

 

For the fourth quarter ending December 31, 2018, Axcelis expects revenues of approximately $100 million. Gross margin in the fourth quarter is expected to be around 40%. Fourth quarter operating profit is forecasted to be approximately $10.5 million. Earnings per share is expected to be approximately $0.20.

 

Third Quarter 2018 Conference Call

 

The Company will host a conference call today at 5:00 pm ET to discuss the Company’s results for the third quarter. 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 pass code: 5899327. Webcast replays will be available for 30 days following the call.

 


News Release

 

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 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
September 30,

 

Nine months ended
September 30,

 

 

 

2018

 

2017

 

2018

 

2017

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

Product

 

$

88,496

 

$

98,161

 

$

317,039

 

$

276,678

 

Services

 

6,878

 

6,321

 

19,853

 

17,487

 

Total revenue

 

95,374

 

104,482

 

336,892

 

294,165

 

Cost of Revenue:

 

 

 

 

 

 

 

 

 

Product

 

49,136

 

58,056

 

181,423

 

162,542

 

Services

 

6,325

 

6,675

 

19,400

 

18,096

 

Total cost of revenue

 

55,461

 

64,731

 

200,823

 

180,638

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

39,913

 

39,751

 

136,069

 

113,527

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Research and development

 

12,845

 

11,003

 

37,631

 

32,154

 

Sales and marketing

 

7,923

 

6,801

 

25,246

 

21,335

 

General and administrative

 

8,477

 

8,112

 

24,755

 

22,960

 

Total operating expenses

 

29,245

 

25,916

 

87,632

 

76,449

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

10,668

 

13,835

 

48,437

 

37,078

 

 

 

 

 

 

 

 

 

 

 

Other (expense) income:

 

 

 

 

 

 

 

 

 

Interest income

 

593

 

219

 

1,518

 

399

 

Interest expense

 

(1,323

)

(1,337

)

(3,787

)

(3,784

)

Other, net

 

(592

)

138

 

(1,710

)

 

Total other expense

 

(1,322

)

(980

)

(3,979

)

(3,385

)

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

9,346

 

12,855

 

44,458

 

33,693

 

 

 

 

 

 

 

 

 

 

 

Income tax provision (benefit)

 

508

 

1,014

 

7,036

 

(1,586

)

 

 

 

 

 

 

 

 

 

 

Net income

 

$

8,838

 

$

11,841

 

$

37,422

 

$

35,279

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.27

 

$

0.38

 

$

1.16

 

$

1.15

 

Diluted

 

$

0.26

 

$

0.35

 

$

1.10

 

$

1.07

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing net income per share:

 

 

 

 

 

 

 

 

 

Basic weighted average common shares

 

32,365

 

31,274

 

32,225

 

30,550

 

Diluted weighted average common shares

 

33,973

 

33,524

 

34,032

 

33,048

 

 


News Release

 

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)

 

 

 

September 30,

 

December 31,

 

 

 

2018

 

2017

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

148,716

 

$

133,407

 

Short-term restricted cash

 

 

750

 

Accounts receivable, net

 

84,977

 

75,302

 

Inventories, net

 

124,008

 

120,544

 

Prepaid expenses & other assets

 

9,582

 

9,772

 

Total current assets

 

367,283

 

339,775

 

Property, plant and equipment, net

 

37,659

 

36,168

 

Restricted cash

 

6,877

 

6,723

 

Deferred income taxes

 

76,382

 

83,148

 

Other assets

 

31,031

 

22,404

 

Total assets

 

$

519,232

 

$

488,218

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Accounts payable

 

$

27,930

 

$

32,642

 

Accrued compensation

 

14,261

 

20,955

 

Warranty

 

4,545

 

4,112

 

Income taxes

 

205

 

273

 

Deferred revenue

 

14,393

 

16,181

 

Other current liabilities

 

4,938

 

5,124

 

Total current liabilities

 

66,272

 

79,287

 

Sales leaseback obligation

 

47,746

 

47,714

 

Long-term deferred revenue

 

3,381

 

1,964

 

Other long-term liabilities

 

4,759

 

5,643

 

Total liabilities

 

122,158

 

134,608

 

Commitments and contingencies

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock, $0.001 par value, 75,000 shares authorized; 32,398 shares issued and outstanding at September 30, 2018; 32,048 shares issued and outstanding at December 31, 2017

 

32

 

32

 

Additional paid-in capital

 

562,083

 

556,147

 

Accumulated deficit

 

(165,723

)

(204,745

)

Accumulated other comprehensive income

 

682

 

2,176

 

Total stockholders’ equity

 

397,074

 

353,610

 

Total liabilities and stockholders’ equity

 

$

519,232

 

$

488,218