Axcelis Announces Financial Results For Third Quarter 2015

Strong Quarterly Results Highlight Market Share Gain and Financial Improvement

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Nov 04, 2015, 04:01 ET

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