Axcelis Announces Financial Results For Fourth Quarter And Full Year 2016

Purion Product Family Fuels Axcelis Growth

News provided by

Feb 01, 2017, 15:01 ET

BEVERLY, Mass., Feb. 1, 2017 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the fourth quarter and full year ended December 31, 2016.

The Company reported fourth quarter revenue of $69.4 million, compared to $65.7 million for the third quarter of 2016. Operating profit for the quarter was $5.9 million, compared to $3.6 million for the third quarter. Net income for the quarter was $4.0 million, or $0.13 per share. Net income for the third quarter of 2016 was $2.2 million, or $0.07 per share. Cash, cash equivalents and restricted cash were $77.7 million at December 31, 2016, compared to $72.5 million on September 30, 2016.

For the full year 2016, the Company reported revenue of $267.0 million, compared with $301.5 million for the full year 2015. Operating profit was $16.6 million in 2016, compared to $20.7 million in 2015. Net income for the year was $11.0 million, compared to net income of $14.7 million in 2015.

"2016 was a strong year for the Purion platform as our customer base expanded significantly, and we successfully introduced several new product extensions," said President and CEO Mary Puma. "We expect 2017 to be the start of a solid up cycle for the industry, with robust implant CAPEX spending, providing Axcelis with substantial opportunities for continued growth."

"I am pleased with our financial performance in 2016. We increased gross margins to 37.3%, up from 33.7% in 2015," said Chief Financial Officer and Executive Vice President Kevin Brewer. "We expect to realize further improvements in gross margin in 2017 with continued focus on supply chain optimization, value engineering and lean programs."

Business Outlook
For the first quarter ending March 31, 2017, Axcelis expects revenues of approximately $80 million dollars. Gross margin in the first quarter is expected to be around 39%. First quarter operating profit is forecasted to be approximately $7.5-9.0 million with earnings per share of $0.20-0.24.

Fourth Quarter 2016 Conference Call
The Company will host a conference call today at 5:00 pm ET to discuss the Company's results for the fourth quarter and full year. 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: 47737570. 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 expectations for increased 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, 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,
			2016		2015		2016		2015

Revenue:
	Product		$	63,959	$	64,802	$	244,295	$	278,875
	Services			5,399		5,656		22,685		22,620
		Total revenue		69,358		70,458		266,980		301,495
Cost of Revenue:
	Product			37,745		43,617		149,007		181,060
	Services			4,666		4,868		18,375		18,729
		Total cost of revenue		42,411		48,485		167,382		199,789

Gross profit				26,947		21,973		99,598		101,706

Operating expenses:
	Research and development			8,795		7,907		34,402		32,586
	Sales and marketing			6,097		5,517		23,839		23,325
	General and administrative			6,190		6,143		24,452		25,059
	Restructuring charges			—		—		282		18
		Total operating expenses		21,082		19,567		82,975		80,988

Income from operations				5,865		2,406		16,623		20,718

Other (expense) income:
	Interest income			77		48		238		64
	Interest expense			(1,346)		(1,349)		(5,073)		(4,976)
	Other, net			(412)		(50)		(764)		(601)
		Total other (expense) income		(1,681)		(1,351)		(5,599)		(5,513)

Income before income taxes				4,184		1,055		11,024		15,205

Income tax provision				219		229		23		527

Net income			$	3,965	$	826	$	11,001	$	14,678

Net income per share:
		Basic	$	0.13	$	0.03	$	0.38	$	0.51
		Diluted	$	0.13	$	0.03	$	0.36	$	0.49

Shares used in computing net income per share:
		Basic weighted average common shares		29,423		28,936		29,195		28,595
		Diluted weighted average common shares		31,436		30,464		30,947		30,229



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

			December 31,		December 31,
			2016		2015

	ASSETS
	Cash and cash equivalents		$	70,791	$	78,889
	Accounts receivable, net			50,573		36,868
	Inventories, net			113,853		109,408
	Prepaid expenses and other assets			29,310		19,652
	Property, plant and equipment, net			30,840		30,031
	Restricted cash			6,864		6,936
		Total assets	$	302,231	$	281,784

	LIABILITIES AND STOCKHOLDERS' EQUITY
	Accounts payable		$	24,996	$	19,849
	Accrued compensation			5,142		9,059
	Warranty			2,668		3,555
	Income taxes			240		143
	Deferred revenue			11,009		8,542
	Sale leaseback obligation			47,586		47,586
	Other liabilities			9,135		9,286
		Total liabilities		100,776		98,020

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, 75,000 shares authorized; 29,518 shares issued and outstanding at December 31, 2016; 29,025 shares issued and 28,995 shares outstanding at December 31, 2015			30		29
	Additional paid-in capital			535,408		529,089
	Treasury stock, at cost, no shares at December 31, 2016 and 30 shares at December 31, 2015			—		(1,218)
	Accumulated deficit			(331,704)		(342,705)
	Accumulated other comprehensive loss			(2,279)		(1,431)
		Total stockholders' equity		201,455		183,764
		Total liabilities and stockholders' equity	$	302,231	$	281,784