Axcelis Announces Financial Results For Third Quarter 2015

Strong Quarterly Results Highlight Market Share Gain and Financial Improvement

Nov 04, 2015, 16:01 ET from Axcelis Technologies, Inc.

BEVERLY, Mass., Nov. 4, 2015 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the third quarter ended September 30, 2015. Recent highlights include:

  • Revenues of $79.3 million, above the second quarter.
  • System revenues of $47.0 million, a 13% increase over the second quarter.
  • Operating profit of $7.7 million, a 7.2% increase over the second quarter.
  • Improved gross margin to 36.8% from 34.6% in the second quarter.
  • Increased cash and cash equivalents to $79.9 million from $78.1 million in the second quarter.

 

The Company reported third quarter revenue of $79.3 million, compared to $78.4 million for the second quarter of 2015. Operating profit for the quarter was $7.7 million, compared to $7.2 million for the second quarter. Net income for the quarter was $6.1 million, or $0.05 per share. This compares to net income for the second quarter of 2015 of $5.9 million, or $0.05 per share. Cash and cash equivalents were $79.9 million at September 30, 2015, compared to $78.1 million on June 30, 2015.

"Strong third quarter results demonstrate our progress in gaining market share and improving profitability," said President and CEO Mary Puma. "The rapid adoption of the Purion platform across multiple customers has strengthened Axcelis, allowing us to address the upcoming industry slowdown from a much stronger position.  As a result, Axcelis will enter the next upturn with higher market share, a larger and growing customer base, new product capabilities and higher earnings potential."

Business Outlook For the fourth quarter ending December 31, 2015, Axcelis expects revenues to be $60-65 million. Gross margin in the fourth quarter is expected to be approximately 33-34%. Fourth quarter operating profit is forecasted to be approximately $1 million with breakeven earnings per share. Cash and cash equivalents at the end of the fourth quarter are expected to be approximately $80 million.

Third Quarter 2015 Conference Call The Company will host a conference call today at 5:00 pm ET to discuss results for the third quarter 2015. 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: 50434142. 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 SEC safe harbor provisions. These statements, which include our 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, many of which are outside the control of the Company, including the timing of orders and shipments, the conversion of orders to revenue in any particular quarter, or at all, the continuing demand for semiconductor equipment, relative market growth, continuity of business relationships with and purchases by major customers, competitive pressure on sales and pricing, increases in material and other production costs that cannot be recouped in product pricing and global economic, political and financial conditions. 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 over 35 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,

2015

2014

2015

2014

Revenue:

Product

$

73,795

$

32,360

$

214,073

$

122,170

Services

5,522

6,171

16,964

18,351

Total revenue

79,317

38,531

231,037

140,521

Cost of Revenue:

Product

45,698

18,823

137,443

73,646

Services

4,440

4,564

13,861

15,507

Total cost of revenue

50,138

23,387

151,304

89,153

Gross profit

29,179

15,144

79,733

51,368

Operating expenses:

Research and development

8,581

7,950

24,679

26,052

Sales and marketing

6,322

4,891

17,808

15,404

General and administrative

6,584

5,380

18,916

18,356

Restructuring charges

2,288

18

2,648

Total operating expenses

21,487

20,509

61,421

62,460

Income (loss) from operations

7,692

(5,365)

18,312

(11,092)

Other (expense) income:

Interest income

7

2

16

6

Interest expense

(1,274)

(304)

(3,627)

(812)

Other, net

(167)

1,352

(551)

1,282

Total other (expense) income

(1,434)

1,050

(4,162)

476

Income (loss) before income taxes

6,258

(4,315)

14,150

(10,616)

Income tax provision

157

389

298

814

Net income (loss)

$

6,101

$

(4,704)

$

13,852

$

(11,430)

Net income (loss) per share

Basic

$

0.05

$

(0.04)

$

0.12

$

(0.10)

Diluted

$

0.05

$

(0.04)

$

0.11

$

(0.10)

Shares used in computing net income (loss) per share:

Basic weighted average common shares

114,799

111,701

113,918

111,191

Diluted weighted average common shares

121,862

111,701

120,620

111,191

                                                      

 

Axcelis Technologies, Inc. Consolidated Balance Sheets (In thousands, except per share amounts) (Unaudited)

September 30,

December 31,

2015

2014

ASSETS

Cash and cash equivalents

$

79,871

$

30,753

Accounts receivable, net

38,674

42,794

Inventories, net

120,067

104,063

Prepaid expenses and other assets

24,141

18,755

Property, plant and equipment, net

29,985

30,464

Restricted cash

61

825

Total assets

$

292,799

$

227,654

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable

$

24,350

$

21,605

Accrued compensation

8,262

4,232

Warranty

3,803

1,526

Income taxes

262

196

Deferred revenue

10,136

7,231

Debt

14,530

Sale leaseback obligation

47,586

Other liabilities

10,284

9,982

Total liabilities

104,683

59,302

Commitments and contingencies

Stockholders' equity:

Preferred stock, $0.001 par value, 30,000 shares authorized; none issued or outstanding

Common stock, $0.001 par value, 300,000 shares authorized; 115,721 shares issued and 115,601 shares outstanding at September 30, 2015; 112,849 shares issued and 112,729 shares outstanding at December 31, 2014

116

113

Additional paid-in capital

527,274

519,068

Treasury stock, at cost, 120 shares at September 30, 2015 and December 31, 2014

(1,218)

(1,218)

Accumulated deficit

(337,035)

(350,887)

Accumulated other comprehensive (loss) income

(1,021)

1,276

Total stockholders' equity

188,116

168,352

Total liabilities and stockholders' equity

$

292,799

$

227,654

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SOURCE Axcelis Technologies, Inc.



RELATED LINKS

http://www.axcelis.com