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 6, 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:

 

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 February 6, 2019, Axcelis Technologies, Inc. (the “Company”) issued a press release regarding its financial results for the fourth quarter and year ended December 31, 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 February 6, 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: February 6, 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 FOURTH QUARTER AND FULL YEAR 2018

 

Company Reports Growth in Revenues, Gross Margin and Cash

 

BEVERLY, Mass. — Feb. 6, 2019—Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the fourth quarter ended December 31, 2018.

 

The Company reported fourth quarter revenue of $105.7 million, compared to $95.4 million for the third quarter of 2018. Operating profit for the quarter was $11.5 million, compared to $10.7 million for the third quarter. Net income for the quarter was $8.5 million, or $0.25 per diluted share, compared to net income for the third quarter of $8.8 million, or $0.26 per diluted share. Gross margin for the quarter was 41.2%, compared to 41.8% in the third quarter. Cash, cash equivalents and restricted cash were $184.9 million on December 31, 2018, compared to $155.6 million on September 30, 2018.

 

For the full year 2018, the Company reported revenue of $442.6 million, compared with $410.6 million for the full year 2017. Systems revenue for the year was $280.4 million, compared to $262.7 million in 2017. Operating profit was $60 million in 2018, compared to $47.8 million in 2017. Net income for the year was $45.9 million with diluted earnings per share of $1.35. This compares to 2017 net income of $127 million and earnings per share of $3.80. 2017 results were impacted by a significant excess inventory reserve adjustment and the reversal of the valuation allowance on our deferred tax assets.

 

“2018 was a strong year for Axcelis, with continued growth in revenues, gross margins and cash. Despite a memory market slowdown, Axcelis kept growing by expanding Purion products to a large and diverse group of customers,” commented President and CEO Mary Puma. “We are focused on additional growth by investing in technology for new market segments and extending our global Purion footprint. These actions position us well to achieve our financial and strategic long-term goals.”

 

Business Outlook

 

For the first quarter ending March 31, 2019, Axcelis expects revenues in the range of $90-95 million. Gross margin in the first quarter is expected to be around 41%. First quarter operating profit is forecasted to be in the range of $6-7 million. Earnings per diluted share is expected to be in the range of $0.10-0.13.

 

Fourth Quarter and Full Year 2018 Conference Call

 

The Company will host a conference call to discuss the Company’s results for the fourth quarter and full year 2018 on Thursday, February 7, 2019 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 Conference ID: 6379519. 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 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

 


 

Axcelis Technologies, Inc.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

 

 

 

Three months ended
December 31,

 

Twelve months ended
December 31,

 

 

 

2018

 

2017

 

2018

 

2017

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

Product

 

$

98,883

 

$

110,446

 

$

415,922

 

$

387,124

 

Services

 

6,800

 

5,950

 

26,653

 

23,437

 

Total revenue

 

105,683

 

116,396

 

442,575

 

410,561

 

Cost of Revenue:

 

 

 

 

 

 

 

 

 

Product

 

55,023

 

72,390

 

236,446

 

234,932

 

Services

 

7,093

 

7,286

 

26,493

 

25,382

 

Total cost of revenue

 

62,116

 

79,676

 

262,939

 

260,314

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

43,567

 

36,720

 

179,636

 

150,247

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Research and development

 

14,245

 

10,917

 

51,876

 

43,071

 

Sales and marketing

 

9,362

 

7,197

 

34,608

 

28,532

 

General and administrative

 

8,438

 

7,842

 

33,193

 

30,802

 

Total operating expenses

 

32,045

 

25,956

 

119,677

 

102,405

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

11,522

 

10,764

 

59,959

 

47,842

 

 

 

 

 

 

 

 

 

 

 

Other (expense) income:

 

 

 

 

 

 

 

 

 

Interest income

 

810

 

315

 

2,328

 

714

 

Interest expense

 

(1,323

)

(1,337

)

(5,110

)

(5,121

)

Other, net

 

(762

)

396

 

(2,472

)

396

 

Total other expense

 

(1,275

)

(626

)

(5,254

)

(4,011

)

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

10,247

 

10,138

 

54,705

 

43,831

 

 

 

 

 

 

 

 

 

 

 

Income tax provision (benefit)

 

1,784

 

(81,542

)

8,820

 

(83,128

)

 

 

 

 

 

 

 

 

 

 

Net income

 

$

8,463

 

$

91,680

 

$

45,885

 

$

126,959

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.26

 

$

2.88

 

$

1.42

 

$

4.11

 

Diluted

 

$

0.25

 

$

2.68

 

$

1.35

 

$

3.80

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing net income per share:

 

 

 

 

 

 

 

 

 

Basic weighted average common shares

 

32,467

 

31,801

 

32,286

 

30,886

 

Diluted weighted average common shares

 

33,886

 

34,198

 

34,002

 

33,436

 

 


 

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)

 

 

 

December 31,

 

December 31,

 

 

 

2018

 

2017

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

177,993

 

$

133,407

 

Short-term restricted cash

 

 

750

 

Accounts receivable, net

 

78,727

 

75,302

 

Inventories, net

 

129,000

 

120,544

 

Prepaid expenses & other assets

 

11,051

 

9,772

 

Total current assets

 

396,771

 

339,775

 

Property, plant and equipment, net

 

41,149

 

36,168

 

Restricted cash

 

6,909

 

6,723

 

Deferred income taxes

 

71,939

 

83,148

 

Other assets

 

31,673

 

22,404

 

Total assets

 

$

548,441

 

$

488,218

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

35,955

 

$

32,642

 

Accrued compensation

 

19,218

 

20,955

 

Warranty

 

4,819

 

4,112

 

Income taxes

 

462

 

273

 

Deferred revenue

 

19,513

 

16,181

 

Other current liabilities

 

5,030

 

5,124

 

Total current liabilities

 

84,997

 

79,287

 

Sales leaseback obligation

 

47,757

 

47,714

 

Long-term deferred revenue

 

3,071

 

1,964

 

Other long-term liabilities

 

4,279

 

5,643

 

Total liabilities

 

140,104

 

134,608

 

Commitments and contingencies

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock, $0.001 par value, 75,000 shares authorized; 32,559 shares issued and outstanding at December 31, 2018; 32,048 shares issued and outstanding at December 31, 2017

 

33

 

32

 

Additional paid-in capital

 

565,116

 

556,147

 

Accumulated deficit

 

(157,260

)

(204,745

)

Accumulated other comprehensive income

 

448

 

2,176

 

Total stockholders’ equity

 

408,337

 

353,610

 

Total liabilities and stockholders’ equity

 

$

548,441

 

$

488,218