Axcelis Announces Financial Results for Fourth Quarter and Full Year 2015

Driven by Purion, 2015 systems revenues increase by 110.6% over 2014

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Feb 02, 2016, 04:01 ET

BEVERLY, Mass., Feb. 2, 2016 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the fourth quarter and full year ended December 31, 2015.

Highlights for the full year include:

Revenues of $301.5 million, a 48.5% increase over 2014.
System revenues of $171.9 million, a 110.6% increase over 2014.
- Resulting in market share gains from 12.8% in 2014 to between 17% and 20% in 2015.
Systems margins improved by 26% for the full year 2015 over the fourth quarter of 2014.
Operating profit of $20.7 million, compared to an operating loss of $10.7 million in 2014.
Net income of $14.7 million or $0.12 per share, compared to a net loss of $11.3 million or $0.10 per share in 2014.
Increased cash, cash equivalents and restricted cash to $85.8 million from $31.6 million in the fourth quarter of 2014, and eliminated all bank debt.

The Company reported fourth quarter revenue of $70.5 million, compared to $79.3 million for the third quarter of 2015. Operating profit for the quarter was $2.4 million, compared to $7.7 million for the third quarter. Net income for the quarter was $0.8 million, or $0.01 per share. This compares to net income for the third quarter of 2015 of $6.1 million, or $0.05 per share. Cash, cash equivalents and restricted cash were $85.8 million at December 31, 2015, compared to $79.9 million on September 30, 2015.

"2015 was a very successful year for Axcelis, fueled by strong sales of the Purion platform, which accounted for 74.3% of our systems revenues," said President and CEO Mary Puma. "Looking forward to 2016, we believe the continued adoption of our Purion product family will allow us to capture the next wave of industry growth, driving market share gains and improved financial results."

Business Outlook
For the first quarter ending March 31, 2016, Axcelis expects revenues to be in the mid $60 million range. Gross margin in the first quarter is expected to be in the mid 30% range. First quarter operating profit is forecasted to be approximately $1-2 million with breakeven to $0.01 earnings per share.

Fourth Quarter 2015 Conference Call
The Company will host a conference call today at 5:00 pm ET to discuss results for the fourth quarter and full year 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: 14855645. 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 December 31,				Twelve months ended December 31,
			2015		2014		2015		2014

Revenue:
	Product		$	64,802	$	57,076	$	278,875	$	179,246
	Services			5,656		5,454		22,620		23,805
		Total revenue		70,458		62,530		301,495		203,051
Cost of Revenue:
	Product			43,617		39,639		181,060		113,285
	Services			4,868		4,094		18,729		19,602
		Total cost of revenue		48,485		43,733		199,789		132,887

Gross profit				21,973		18,797		101,706		70,164

Operating expenses:
	Research and development			7,907		7,481		32,586		33,533
	Sales and marketing			5,517		5,310		23,325		20,713
	General and administrative			6,143		5,602		25,059		23,958
	Restructuring charges			—		(27)		18		2,621
		Total operating expenses		19,567		18,366		80,988		80,825

Income (loss) from operations				2,406		431		20,718		(10,661)

Other (expense) income:
	Interest income			48		27		64		32
	Interest expense			(1,349)		(257)		(4,976)		(1,069)
	Other, net			(50)		249		(601)		1,531
		Total other (expense) income		(1,351)		19		(5,513)		494

Income (loss) before income taxes				1,055		450		15,205		(10,167)

Income tax provision				229		285		527		1,099

Net income (loss)			$	826	$	165	$	14,678	$	(11,266)

Net income (loss) per share:
		Basic	$	0.01	$	0.00	$	0.13	$	(0.10)
		Diluted	$	0.01	$	0.00	$	0.12	$	(0.10)

Shares used in computing net income (loss) per share:
		Basic weighted average common shares		115,745		112,218		114,378		111,450
		Diluted weighted average common shares		121,855		117,251		120,916		111,450



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


			December 31,		December 31,
			2015		2014

	ASSETS
	Cash and cash equivalents		$	78,889	$	30,753
	Accounts receivable, net			36,868		42,794
	Inventories, net			115,904		104,063
	Prepaid expenses and other assets			19,652		18,755
	Property, plant and equipment, net			30,031		30,464
	Restricted cash			6,936		825
		Total assets	$	288,280	$	227,654

	LIABILITIES AND STOCKHOLDERS' EQUITY
	Accounts payable		$	19,849	$	21,605
	Accrued compensation			9,059		4,232
	Warranty			3,555		1,527
	Income taxes			143		196
	Deferred revenue			8,542		7,231
	Bank debt			—		14,530
	Sale leaseback obligation			47,586		—
	Other liabilities			9,286		9,981
		Total liabilities		98,020		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; 116,101 shares issued and 115,981 shares outstanding at December 31, 2015; 112,849 shares issued and 112,729 shares outstanding at December 31, 2014			116		113
	Additional paid-in capital			529,002		519,068
	Treasury stock, at cost, 120 shares at December 31, 2015 and 2014			(1,218)		(1,218)
	Accumulated deficit			(336,209)		(350,887)
	Accumulated other comprehensive (loss) income			(1,431)		1,276
		Total stockholders' equity		190,260		168,352
		Total liabilities and stockholders' equity	$	288,280	$	227,654