Axcelis Announces Financial Results For Second Quarter 2016

August 2, 2016 at 4:02 PM EDT
Solid Quarterly Results Driven by Expanding Customer Base

BEVERLY, Mass., Aug. 2, 2016 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the second quarter ended June 30, 2016.

The Company reported second quarter revenue of $64.5 million, compared to $67.5 million for the first quarter of 2016. Operating profit for the quarter was $4.6 million, compared to $2.5 million for the first quarter. Net income for the quarter was $2.9 million, or $0.10 per diluted share. This compares to net income for the first quarter of 2016 of $1.9 million, or $0.06 per diluted share. Cash, cash equivalents and restricted cash were $67.8 million on June 30, 2016, compared to $74.4 million on March 31, 2016.

"During the second quarter, we made significant progress towards expanding our customer base through new penetrations and capacity buys, as well as offering new product line extensions to address emerging market needs," said President and CEO Mary Puma. "These actions position us well for a strong build cycle in 2017, which will drive continued market share gains."

Business Outlook
For the third quarter ending September 30, 2016, Axcelis expects revenues of $65-$70 million. Gross margin in the third quarter is expected to be in the mid 30% range. Third quarter operating profit is forecasted to be approximately $2.5-3.5 million with $0.03-0.06 earnings per diluted share.

Second Quarter 2016 Conference Call
The Company will host a conference call today, Tuesday, August 2, 2016 at 5:00 pm ET, to discuss results for the second quarter 2016. 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 conference ID code: 47289190. 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. Our forecasted diluted earnings per share does not take into account option exercises during the quarter and assumes no change in the weighted average stock price from the prior quarter. 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

June 30,

Six months ended

June 30,




2016

2015

2016

2015











Revenue:











Product

$

58,859

$

72,748

$

121,034

$

140,278

Services

5,592

5,689

10,938

11,442


Total revenue

64,451

78,437

131,972

151,720

Cost of Revenue:













Product

34,638

46,560

74,902

91,745

Services

4,682

4,703

8,523

9,421


Total cost of revenue

39,320

51,263

83,425

101,166















Gross profit

25,131

27,174

48,547

50,554















Operating expenses:











Research and development

8,478

7,899

17,114

16,098

Sales and marketing

5,790

5,858

11,750

11,486

General and administrative

6,232

6,231

12,274

12,332

Restructuring charges

—

8

282

18


Total operating expenses

20,500

19,996

41,420

39,934















Income from operations

4,631

7,178

7,127

10,620















Other (expense) income:













Interest income

54

6

108

9

Interest expense

(1,338)

(1,310)

(2,385)

(2,353)

Other, net

(238)

49

(297)

(384)


Total other (expense) income

(1,522)

(1,255)

(2,574)

(2,728)















Income before income taxes

3,109

5,923

4,553

7,892












Income tax provision (benefit)

172

40

(332)

141












Net income

$

2,937

$

5,883

$

4,885

$

7,751















Net income per share:












Basic

$

0.10

$

0.21

$

0.17

$

0.27


Diluted

$

0.10

$

0.20

$

0.16

$

0.26















Shares used in computing net income per share:












Basic weighted average common shares

29,097

28,446

29,066

28,367


Diluted weighted average common shares

30,701

30,153

30,607

29,975



































 

 

 










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







June 30,

December 31,


2016

2015








ASSETS






Cash and cash equivalents

$

60,981

$

78,889

Accounts receivable, net

63,482

36,868

Inventories, net

110,582

109,408

Prepaid expenses and other assets

26,324

19,652

Property, plant and equipment, net

31,057

30,031

Restricted cash

6,862

6,936


Total assets

$

299,288

$

281,784









LIABILITIES AND STOCKHOLDERS' EQUITY






Accounts payable

$

26,836

$

19,849

Accrued compensation

5,935

9,059

Warranty

3,227

3,555

Income taxes

196

143

Deferred revenue

14,431

8,542

Sale leaseback obligation

47,586

47,586

Other liabilities

9,265

9,286


Total liabilities

107,476

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; 29,134 shares issued and  outstanding at June 30, 2016; 29,025 shares issued and 28,995 shares outstanding at December 31, 2015

29

29

Additional paid-in capital

530,389

529,089

Treasury stock, at cost, no shares at June 30, 2016 and 30 shares at December 31, 2015

 

—

 

(1,218)

Accumulated deficit

(337,820)

(342,705)

Accumulated other comprehensive loss

(786)

(1,431)


Total stockholders' equity

191,812

183,764


Total liabilities and stockholders' equity

$

299,288

$

281,784













 

Note: The consolidated balance sheets as of June 30, 2016 and December 31, 2015 have been adjusted to reflect the correction of a cumulative error associated with the elimination of profits on sales of inventory to the Company's subsidiaries.  This error had no impact upon the Company's consolidated statement of operations or consolidated statement of cash flows subsequent to the year ended December 31, 2010. This adjustment resulted in a decrease in inventory and an increase in accumulated deficit of $6.5 million.  More detailed information will be provided in a note to the consolidated financial statements in the Company's Form 10-Q for the quarterly period ended June 30, 2016, to be filed on or before August 9, 2016. 

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SOURCE Axcelis Technologies, Inc.