Axcelis Announces Financial Results For Second Quarter 2021

The Company Expects 2021 Revenue to Exceed $625M

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Aug 04, 2021, 16:01 ET

BEVERLY, Mass., Aug. 4, 2021 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS), a leading supplier of enabling ion implantation solutions for the semiconductor industry, today announced financial results for the second quarter ended June 30, 2021.

Highlights for the second quarter are as follows:

The Company reported second quarter revenue of $147.3 million, compared to $132.8 million for the first quarter of 2021. This includes quarterly system revenues above $100 million, the first time since 2004.
Operating profit for the quarter was $24 million, compared to $20.3 million for the first quarter.
Net income for the quarter was $18.9 million, or $0.55 per diluted share, compared to net income of $16.5 million, or $0.48 per diluted share for the first quarter.
Gross margin for the quarter was 43.5%, compared to 42.5% in the first quarter.
Cash, cash equivalents and restricted cash were $220.5 million on June 30, 2021, compared to $207.5 million on March 31, 2021, after the settlement of stock repurchases of $13.4 million.
Shipped multiple high current and high energy Purion™ and legacy implant systems to multiple fab locations for a leading foundry located in China.
Shipped multiple Purion M™ Power Series SiC medium current and Purion XE™ Power Series SiC high energy implanters to several leading SiC power device manufacturers located in Asia and Europe.

President and CEO Mary Puma commented, "Axcelis delivered strong second quarter financial performance as a result of overall strength in the semiconductor industry combined with growing demand for our Purion™ implant products, especially in the high growth power device market. The rapid acceleration of the electrification of the automotive industry is creating substantial demand for power devices and image sensors, which is driving sustainable growth for the Purion product extensions specifically developed for these markets. As a result of these market trends and the traction of our Purion base products and product line extensions, Axcelis is on track to exceed $625 million in revenue for the full year 2021. The Company is well positioned for strong sustainable growth."

Business Outlook
For the third quarter ending September 30, 2021, Axcelis expects revenues to be approximately $170 million. Gross margin in the third quarter is expected to be approximately 42.5%. Third quarter operating profit is forecasted to be approximately $32 million with earnings per diluted share of approximately $0.70. The Company also expects to exceed $625 million in revenue for the full year 2021.

Second Quarter 2021 Conference Call
The Company will host a call to discuss the results for the second quarter on Thursday, August 5, 2021 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, 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 Audience Passcode: 7664896. 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				Six months ended
		June 30,			June 30,
	2021		2020		2021		2020
Revenue:
Product	$	140,156	$	117,194	$	266,765	$	229,327
Services		7,118		5,771		13,285		12,629
Total revenue		147,274		122,965		280,050		241,956
Cost of revenue:
Product		76,688		65,519		147,022		132,691
Services		6,572		5,547		12,579		11,817
Total cost of revenue		83,260		71,066		159,601		144,508
Gross profit		64,014		51,899		120,449		97,448
Operating expenses:
Research and development		16,623		16,040		32,308		30,646
Sales and marketing		12,177		9,437		22,564		17,641
General and administrative		11,217		10,041		21,230		19,077
Total operating expenses		40,017		35,518		76,102		67,364
Income from operations		23,997		16,381		44,347		30,084
Other (expense) income:
Interest income		40		70		73		552
Interest expense		(1,274)		(1,299)		(2,303)		(2,602)
Other, net		(15)		421		(1,168)		(199)
Total other expense		(1,249)		(808)		(3,398)		(2,249)
Income before income taxes		22,748		15,573		40,949		27,835
Income tax provision		3,842		2,271		5,563		3,312
Net income	$	18,906	$	13,302	$	35,386	$	24,523
Net income per share:
Basic	$	0.56	$	0.40	$	1.05	$	0.74
Diluted	$	0.55	$	0.39	$	1.03	$	0.72
Shares used in computing net income per share:
Basic weighted average common shares		33,677		33,116		33,696		32,998
Diluted weighted average common shares		34,311		33,958		34,473		34,023

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

	June 30,		December 31,
	2021		2020
ASSETS
Current assets:
Cash and cash equivalents	$	219,731	$	203,479
Accounts receivable, net		79,544		86,865
Inventories, net		192,321		161,076
Prepaid expenses and other current assets		22,535		19,371
Total current assets		514,131		470,791
Property, plant and equipment, net		30,683		29,840
Operating lease assets		7,626		4,542
Finance lease assets, net		19,889		20,544
Long-term restricted cash		755		753
Deferred income taxes		51,386		57,851
Other assets		36,170		40,303
Total assets	$	660,640	$	624,624
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	40,695	$	24,013
Accrued compensation		14,906		24,562
Warranty		4,690		4,280
Income taxes		622		654
Deferred revenue		34,112		21,221
Current portion of finance lease obligation		864		756
Other current liabilities		10,585		8,945
Total current liabilities		106,474		84,431
Long-term finance lease obligation		46,923		47,393
Long-term deferred revenue		1,406		1,837
Other long-term liabilities		11,735		9,361
Total liabilities		166,538		143,022

Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 33,657 shares issued and outstanding at June 30, 2021; 33,633 shares issued and outstanding at December 31, 2020		34		34
Additional paid-in capital		561,680		570,102
Accumulated deficit		(70,281)		(91,969)
Accumulated other comprehensive income		2,669		3,435
Total stockholders' equity		494,102		481,602
Total liabilities and stockholders' equity	$	660,640	$	624,624