Axcelis Announces Financial Results For Third Quarter 2014

November 5, 2014 at 4:02 PM EST
Strong Progress on Purion Platform

BEVERLY, Mass., Nov. 5, 2014 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the quarter ended September 30, 2014. Recent highlights include:

  • Made strong progress on Purion platform:
    • Shipped a Purion H™ high current implanter for evaluation at a leading Asia Pacific chipmaker in September 2014, making the customer the second to install the complete Purion Platform.
    • Secured a multiple system revenue order for our Purion H high current implanter from another leading Asia Pacific chipmaker, less than four months after taking delivery of a Purion H for a one year evaluation, demonstrating this customer's recognition of the Purion H's significant advantages.
    • Shipped a follow-on Purion XE™ high energy implanter to a chipmaker using the system for manufacturing DRAM devices. This order signals the start of a wave of increased memory spending.
    • Shipped a Purion XE to a new customer who will use the system to manufacture advanced power, specialty logic and low power devices.
  • Signed a $50M agreement in October 2014 for a sale leaseback expected to close in the fourth quarter. 
  • Lowered our operating and cash breakeven level through a combination of restructuring and reduced discretionary spending.

The Company reported third quarter revenue of $38.5 million, compared to $41.2 million for the second quarter of 2014. Loss from operations for the quarter was $5.4 million, compared to an operating loss of $6.1 million for the second quarter of 2014. Net loss for the quarter was $4.7 million, or $0.04 per share. This included $2.3 million of restructuring charges. This compares to a net loss for the second quarter of 2014 of $6.9 million, or $0.06 per share, including $0.2 million of restructuring charges. Cash and cash equivalents were $32.5 million at September 30, 2014 compared with $35.6 million at June 30, 2014.

Chairman and CEO Mary Puma said, "We made strong progress with the Purion platform, reduced our cost structure and took actions that we expect will strengthen our balance sheet. We now have the full Purion product family in place, and are well positioned to increase our market share as industry dynamics improve."

Third Quarter 2014 Conference Call
The Company will host a conference call today at 5:00 pm ET to discuss results for the third quarter 2014. 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 1.888.713.4211 (1. 617.213.4864 outside North America).  Participants calling into the conference call will be requested to provide the company name, Axcelis Technologies, and pass code: 69902134. Webcast replays will be available for 30 days following the call.

Safe Harbor Statement
This press release contains, and the conference call will 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,

2014

2013

2014

2013

Revenue:







Product

$32,360

$42,934

$122,170

$118,151

Services

6,171

5,897

18,351

18,907

   Total revenue

38,531

48,831

140,521

137,058

Cost of revenue:







Product

18,823

27,339

73,646

74,976

Services

4,564

4,516

15,507

15,427

   Total cost of revenue

23,387

31,855

89,153

90,403









Gross profit

15,144

16,976

51,368

46,655









Operating expenses:







Research and development

7,950

8,148

26,052

25,857

Sales and marketing

4,891

5,330

15,404

16,128

General and administrative

5,380

6,164

18,356

19,165

Gain on sale of dry strip assets and intellectual property

__

__

__

(1,167)

Restructuring charges

2,288

112

2,648

2,334

   Total operating expenses

20,509

19,754

62,460

62,317









Loss from operations

(5,365)

(2,778)

(11,092)

(15,662)









Other income (expense):







Interest income

2

3

6

8

Interest expense

(304)

(193)

(812)

(308)

Other, net

1,352

(1,252)

1,282

(671)

   Total other income (expense)

1,050

(1,442)

476

(971)









Loss before income taxes

(4,315)

(4,220)

(10,616)

(16,633)









Income taxes

389

530

814

1,125









Net loss

$(4,704)

$(4,750)

$(11,430)

$(17,758)









Net loss per share







   Basic and Diluted

$(0.04)

$(0.04)

$(0.10)

$(0.16)









Shares used in computing net loss per share:







   Basic and diluted weighted average common shares

111,701

109,074

111,191

108,573

 

 

 


Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)



September 30,
2014

December 31,
2013

ASSETS



Current assets:



Cash and cash equivalents

$

32,536

$

46,290

Accounts receivable, net

29,904

36,587

Inventories, net

107,816

95,789

   Prepaid expenses and other current assets

5,739

6,242

Total current assets

175,995

184,908





Property, plant and equipment, net

30,880

32,006

Long-term restricted cash

825

825

Other assets

12,843

15,810

     Total assets

$

220,543

$

233,549





LIABILITIES AND STOCKHOLDERS' EQUITY



Current liabilities:



Accounts payable

$

14,699

$

19,451

Accrued compensation

5,830

4,845

Warranty

1,160

1,316

Income taxes

545

417

Deferred revenue

4,867

4,387

Current portion of long-term debt

1,164

471

Other current liabilities

3,462

4,573

Total current liabilities

31,727

35,460





Long-term debt

13,651

14,529

Long-term deferred revenue

175

322

Other long-term liabilities

7,266

7,236

         Total liabilities

52,819

57,547





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; 112,037 shares issued and 111,917 shares outstanding at September 30, 2014; 110,225 shares issued and 110,105 shares outstanding at December 31, 2013

112

110

Additional paid-in capital

516,992

510,992

Treasury stock, at cost, 120 shares at September 30, 2014 and December 31, 2013

(1,218)

(1,218)

Accumulated deficit

(351,051)

(339,621)

Accumulated other comprehensive income

2,889

5,739

          Total stockholders' equity

167,724

176,002

          Total liabilities and stockholders' equity

$

220,543

$

233,549

 

 

Axcelis Technologies, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)







Nine months ended






September 30,






2014

2013

Cash flows from operating activities



Net loss

$(11,430)

$(17,758)

Adjustments to reconcile net loss to net cash used for operating activities:




Depreciation and amortization

3,441

3,948


Gain on sale of dry strip assets and intellectual property

—

(1,167)


Deferred taxes

434

272


Stock-based compensation expense

3,779

3,105


Provision for excess and obsolete inventory

590

2,451


Changes in operating assets & liabilities:





Accounts receivable        

6,164

(4,359)



Inventories

(13,732)

3,455



Prepaid expenses and other current assets

351

(429)



Accounts payable and other current liabilities

(4,849)

6,276



Deferred revenue

372

(2,816)



Income taxes

151

(14)



Other assets and liabilities

976

(3,813)




Net cash used for operating activities

(13,753)

(10,849)









Cash flows from investing activities




Proceeds from sale of dry strip assets and intellectual property

—

1,200


Expenditures for property, plant, and equipment

(710)

(484)


Increase in restricted cash

—

(1,477)




Net cash used for investing activities

(710)

(761)









Cash flows from financing activities




Increase in restricted cash

—

(825)


Financing fees and other expenses

—

(473)


Proceeds from exercise of stock options

2,058

1,113


Proceeds from Employee Stock Purchase Plan

227

197


Proceeds from issuance of Term Loan

—

15,000


Principal payments on Term Loan

(185)

—




Net cash provided by financing activities

2,100

15,012

Effect of exchange rate changes on cash and cash equivalents

(1,391)

(71)

Net (decrease) increase in cash and cash equivalents

(13,754)

3,331

Cash and cash equivalents at beginning of period

46,290

44,986

Cash and cash equivalents at end of period

$32,536

$48,317

 

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SOURCE Axcelis Technologies, Inc.