Press releases

Axcelis Announces Financial Results For Third Quarter 2018

10 December 2018

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

Axcelis Technologies, Inc. (PRNewsFoto/Axcelis Technologies, Inc.) (PRNewsFoto/)

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.

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 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


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

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SOURCE Axcelis Technologies, Inc.