Axcelis Announces Financial Results For Third Quarter 2020
Company Reports Strong Earnings Driven by Robust Gross Margins
BEVERLY, Mass., Nov. 5, 2020 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the third quarter ended September 30, 2020.
The Company reported third quarter revenue of $110.4 million, compared to $123 million for the second quarter of 2020. Operating profit for the quarter was $13.9 million, compared to $16.4 million for the second quarter. Net income for the quarter was $10.8 million, or $0.32 per diluted share, compared to net income for the second quarter of $13.3 million, or $0.39 per diluted share. Gross margin for the quarter was 43.6%, compared to 42.2% in the second quarter. Cash, cash equivalents and restricted cash were $212.7 million on September 30, 2020, compared to $197 million on June 30, 2020.
President and CEO Mary Puma commented, "We are pleased with our third quarter performance, which met or exceeded guidance and consensus. The Company delivered strong earnings driven by robust gross margins. We continue to expand our large and diverse customer base in key market segments, with new penetrations of the Purion H and new Purion product extensions. We are exiting 2020 with good momentum, positioning us well to capitalize on the expectation that 2021 will be a strong investment year and for the achievement of our $550 and $650 million dollar target models over the next several years."
Business Outlook
For the fourth quarter ending December 31, 2020, Axcelis expects revenues to be approximately $110 million with gross margin around 41%. Fourth quarter operating profit is forecasted to be approximately $10 million with earnings per diluted share of approximately $0.21.
Third Quarter 2020 Conference Call
The Company will host a call to discuss the results for the third quarter 2020 on Friday, November 6, 2020 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. If you would like to ask a question, the dial in number is 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: 1999553. Please dial in at least 15 minutes in advance to ensure a timely connection to the call. 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 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
Axcelis Technologies, Inc. Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited) | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||
Revenue: | |||||||||||||
Product | $ | 104,799 | $ | 64,290 | $ | 334,126 | $ | 217,201 | |||||
Services | 5,606 | 5,163 | 18,235 | 18,034 | |||||||||
Total revenue | 110,405 | 69,453 | 352,361 | 235,235 | |||||||||
Cost of revenue: | |||||||||||||
Product | 56,427 | 33,587 | 189,118 | 118,105 | |||||||||
Services | 5,817 | 5,285 | 17,634 | 17,294 | |||||||||
Total cost of revenue | 62,244 | 38,872 | 206,752 | 135,399 | |||||||||
Gross profit | 48,161 | 30,581 | 145,609 | 99,836 | |||||||||
Operating expenses: | |||||||||||||
Research and development | 14,867 | 12,930 | 45,513 | 40,335 | |||||||||
Sales and marketing | 9,763 | 8,057 | 27,404 | 25,411 | |||||||||
General and administrative | 9,649 | 7,707 | 28,726 | 23,097 | |||||||||
Total operating expenses | 34,279 | 28,694 | 101,643 | 88,843 | |||||||||
Income from operations | 13,882 | 1,887 | 43,966 | 10,993 | |||||||||
Other (expense) income: | |||||||||||||
Interest income | 106 | 687 | 658 | 2,373 | |||||||||
Interest expense | (1,296) | (1,308) | (3,898) | (3,849) | |||||||||
Other, net | 900 | (890) | 701 | (1,252) | |||||||||
Total other expense | (290) | (1,511) | (2,539) | (2,728) | |||||||||
Income before income taxes | 13,592 | 376 | 41,427 | 8,265 | |||||||||
Income tax provision (benefit) | 2,807 | (328) | 6,119 | 943 | |||||||||
Net income | $ | 10,785 | $ | 704 | $ | 35,308 | $ | 7,322 | |||||
Net income per share: | |||||||||||||
Basic | $ | 0.32 | $ | 0.02 | $ | 1.06 | $ | 0.22 | |||||
Diluted | $ | 0.32 | $ | 0.02 | $ | 1.04 | $ | 0.22 | |||||
Shares used in computing net income per share: | |||||||||||||
Basic weighted average common shares | 33,477 | 32,344 | 33,159 | 32,584 | |||||||||
Diluted weighted average common shares | 34,174 | 33,323 | 34,070 | 33,821 | |||||||||
Axcelis Technologies, Inc. Consolidated Balance Sheets (In thousands, except per share amounts) (Unaudited) | |||||||
September 30, | December 31, | ||||||
2020 | 2019 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 211,967 | $ | 139,881 | |||
Accounts receivable, net | 45,161 | 83,753 | |||||
Inventories, net | 159,658 | 140,364 | |||||
Prepaid expenses and other current assets | 18,982 | 11,681 | |||||
Total current assets | 435,768 | 375,679 | |||||
Property, plant and equipment, net | 29,199 | 25,328 | |||||
Operating lease assets | 4,655 | 5,849 | |||||
Finance lease assets, net | 20,872 | 21,880 | |||||
Long-term restricted cash | 750 | 6,653 | |||||
Deferred income taxes | 58,247 | 68,060 | |||||
Other assets | 41,165 | 44,645 | |||||
Total assets | $ | 590,656 | $ | 548,094 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 24,260 | $ | 25,341 | |||
Accrued compensation | 18,856 | 7,631 | |||||
Warranty | 4,151 | 2,759 | |||||
Income taxes | 328 | 294 | |||||
Deferred revenue | 13,118 | 24,601 | |||||
Current portion of finance lease obligation | 705 | 399 | |||||
Other current liabilities | 7,965 | 7,639 | |||||
Total current liabilities | 69,383 | 68,664 | |||||
Long-term finance lease obligation | 47,593 | 48,149 | |||||
Long-term deferred revenue | 3,851 | 4,650 | |||||
Other long-term liabilities | 9,166 | 7,204 | |||||
Total liabilities | 129,993 | 128,667 | |||||
Stockholders' equity: | |||||||
Common stock, $0.001 par value, 75,000 shares authorized; 33,491 shares issued and outstanding at September 30, 2020; 32,585 shares issued and outstanding at December 31, 2019 | 33 | 33 | |||||
Additional paid-in capital | 566,195 | 559,878 | |||||
Accumulated deficit | (106,643) | (140,226) | |||||
Accumulated other comprehensive income (loss) | 1,078 | (258) | |||||
Total stockholders' equity | 460,663 | 419,427 | |||||
Total liabilities and stockholders' equity | $ | 590,656 | $ | 548,094 | |||
SOURCE Axcelis Technologies, Inc.
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