Axcelis Announces Financial Results For Third Quarter 2018

November 1, 2018 at 4:02 PM EDT
Company Reports Solid Gross Margin Performance Across Diverse Customer Base

BEVERLY, Mass., Nov. 1, 2018 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the third quarter ended September 30, 2018.

The Company reported third quarter revenue of $95.4 million, compared to $119.3 million for the second quarter of 2018. Operating profit for the quarter was $10.7 million, compared to $19.3 million for the second quarter. Net income for the quarter was $8.8 million, or $0.26 per diluted share, compared to net income for the second quarter of 2018 of $14.7 million, or $0.43 per diluted share. Included in the quarter is a tax benefit of $1.4 million or $0.04 per diluted share relating to the calculation of transition tax under the 2017 Tax Cuts and Jobs Act. Gross margin for the quarter was 41.8%, compared to 41.1% in the second quarter. Cash, cash equivalents and restricted cash were $155.6 million at September 30, 2018, compared to $154.9 million on June 30, 2018.

"We continue to see significant demand from a highly diverse customer base for the capabilities the Purion Platform provides to address their challenging technology requirements," commented President and CEO Mary Puma. "Our aggressive initiatives to improve gross margin, combined with favorable revenue mix, delivered results above our Q3 guidance and are enabling the achievement of our 40% gross margin target for 2018."

Business Outlook
For the fourth quarter ending December 31, 2018, Axcelis expects revenues of approximately $100 million. Gross margin in the fourth quarter is expected to be around 40%. Fourth quarter operating profit is forecasted to be approximately $10.5 million. Earnings per share is expected to be approximately $0.20.

Third Quarter 2018 Conference Call
The Company will host a conference call today at 5:00 pm ET to discuss the Company's results for the third quarter. 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: 5899327. 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 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

September 30,

Nine months ended

September 30,




2018

2017

2018

2017











Revenue:











Product

$

88,496

$

98,161

$

317,039

$

276,678

Services

6,878

6,321

19,853

17,487


Total revenue

95,374

104,482

336,892

294,165

Cost of Revenue:













Product

49,136

58,056

181,423

162,542

Services

6,325

6,675

19,400

18,096


Total cost of revenue

55,461

64,731

200,823

180,638















Gross profit

39,913

39,751

136,069

113,527















Operating expenses:











Research and development

12,845

11,003

37,631

32,154

Sales and marketing

7,923

6,801

25,246

21,335

General and administrative

8,477

8,112

24,755

22,960


Total operating expenses

29,245

25,916

87,632

76,449















Income from operations

10,668

13,835

48,437

37,078















Other (expense) income:













Interest income

593

219

1,518

399

Interest expense

(1,323)

(1,337)

(3,787)

(3,784)

Other, net

(592)

138

(1,710)

—


Total other expense

(1,322)

(980)

(3,979)

(3,385)















Income before income taxes

9,346

12,855

44,458

33,693












Income tax provision (benefit)

508

1,014

7,036

(1,586)












Net income

$

8,838

$

11,841

$

37,422

$

35,279















Net income per share:












Basic

$

0.27

$

0.38

$

1.16

$

1.15


Diluted

$

0.26

$

0.35

$

1.10

$

1.07















Shares used in computing net income per share:












Basic weighted average common shares

32,365

31,274

32,225

30,550


Diluted weighted average common shares

33,973

33,524

34,032

33,048



































 

 



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







September 30,

December 31,


2018

2017

      ASSETS





Current assets:

Cash and cash equivalents

$

148,716

$

133,407

Short-term restricted cash

—

750

Accounts receivable, net

84,977

75,302

Inventories, net

124,008

120,544

Prepaid expenses & other assets



9,582

9,772

         Total current assets

367,283

339,775

Property, plant and equipment, net

37,659

36,168

Restricted cash

6,877

6,723

Deferred income taxes

76,382

83,148

Other assets

31,031

22,404

       Total assets

$

519,232

$

488,218

          LIABILITIES AND STOCKHOLDERS' EQUITY







Accounts payable

$

27,930

$

32,642

Accrued compensation

14,261

20,955

Warranty

4,545

4,112

Income taxes

205

273

Deferred revenue

14,393

16,181

Other current liabilities

4,938

5,124

            Total current liabilities

66,272

79,287

Sales leaseback obligation

47,746

47,714

Long-term deferred revenue

3,381

1,964

Other long-term liabilities

4,759

5,643

Total liabilities


122,158

134,608

Commitments and contingencies







Stockholders' equity:






Common stock, $0.001 par value, 75,000 shares authorized; 32,398 shares issued and
outstanding at September 30, 2018; 32,048 shares issued and outstanding at December
31, 2017

32

32

Additional paid-in capital

562,083

556,147

Accumulated deficit

(165,723)

(204,745)

Accumulated other comprehensive income



682

2,176

          Total stockholders' equity


397,074

353,610

          Total liabilities and stockholders' equity

$

519,232

$

488,218




















 

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SOURCE Axcelis Technologies, Inc.