Axcelis Announces Financial Results For Second Quarter 2015

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Purion Market Share Gains as Customer Base Expands

August 4, 2015 4:01 PM EDT

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Price: $101.72 -2.49%

Overall Analyst Rating:
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Revenue Growth %: -2.1%

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BEVERLY, Mass., Aug. 4, 2015 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the second quarter ended June 30, 2015. Recent highlights include:

Revenues of $78.4 million, a 7% increase over the first quarter.
Operating profit of $7.2 million, a 108.5% increase over the first quarter.
Improved gross margin to 34.6% from 31.9% in the first quarter.
Increased cash and cash equivalents to $78.1 million from $74.5 million in the first quarter.

The Company reported second quarter revenue of $78.4 million, compared to $73.3 million for the first quarter of 2015. Operating profit for the quarter was $7.2 million, compared to $3.4 million for the first quarter. Net income for the quarter was $5.9 million, or $0.05 per share. This compares to net income for the first quarter of 2015 of $1.9 million, or $0.02 per share. Cash and cash equivalents was $78.1 million at June 30, 2015, compared to $74.5 million on March 31, 2015.

President and CEO Mary Puma said, "Axcelis' top line continued to grow in the second quarter, driven by steady Purion system sales and a robust service business. In particular, the Purion H continues to gain market share, and is the fastest growing new product in Axcelis history. Since the start of the year we have doubled the number of Purion H customers, as well as added three new, non-memory Purion XE customers. The success we are seeing with Purion is positioning us well for future revenue and market share growth, as well as stronger earnings and cash flow."

Business OutlookFor the third quarter ending September 30, 2015, Axcelis expects revenues to be $75-80 million. Gross margin in the third quarter is expected to be approximately 34-35%. Third quarter operating profit is forecasted to be $5-7 million with earnings of $0.03-0.05 per share. Cash and cash equivalents in the third quarter is expected to be approximately $80 million.

Second Quarter 2015 Conference CallThe Company will host a conference call today at 5:00 pm ET to discuss results for the second 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: 77665194. 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 Lawson978.787.9552

Editorial/Media:Maureen Hart978.787.4266

Axcelis Technologies, Inc. Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited)

			Three months ended June 30,				Six months ended June 30,
			2015		2014		2015		2014

Revenue:
	Product		$	72,748	$	34,795	$	140,278	$	89,810
	Services			5,689		6,355		11,442		12,180
		Total revenue		78,437		41,150		151,720		101,990
Cost of Revenue:
	Product			46,560		21,021		91,745		54,823
	Services			4,703		5,645		9,421		10,943
		Total cost of revenue		51,263		26,666		101,166		65,766

Gross profit				27,174		14,484		50,554		36,224

Operating expenses:
	Research and development			7,899		8,845		16,098		18,102
	Sales and marketing			5,858		5,037		11,486		10,513
	General and administrative			6,231		6,494		12,332		12,975
	Restructuring charges			8		160		18		360
		Total operating expenses		19,996		20,536		39,934		41,950

Income (loss) from operations				7,178		(6,052)		10,620		(5,726)

Other (expense) income:
	Interest income			6		2		9		4
	Interest expense			(1,310)		(257)		(2,353)		(508)
	Other, net			49		(362)		(384)		(70)
		Total other expense		(1,255)		(617)		(2,728)		(574)

Income (loss) before income taxes				5,923		(6,669)		7,892		(6,300)

Income tax provision				40		231		141		426

Net income (loss)			$	5,883	$	(6,900)	$	7,751	$	(6,726)

Net income (loss) per share
		Basic	$	0.05	$	(0.06)	$	0.07	$	(0.06)
		Diluted	$	0.05	$	(0.06)	$	0.06	$	(0.06)

Shares used in computing net income (loss) per share:
		Basic weighted average common shares		113,784		111,212		113,470		110,932
		Diluted weighted average common shares		120,612		111,212		119,900		110,932

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

			June 30,		December 31,
			2015		2014

	ASSETS
	Cash and cash equivalents		$	78,085	$	30,753
	Accounts receivable, net			42,002		42,794
	Inventories, net			122,001		104,063
	Prepaid expenses and other assets			23,209		18,755
	Property, plant and equipment, net			29,951		30,464
	Restricted cash			65		825
		Total assets	$	295,313	$	227,654

	LIABILITIES AND STOCKHOLDERS' EQUITY
	Accounts payable		$	38,849	$	21,605
	Accrued compensation			5,262		4,232
	Warranty			2,886		1,352
	Income taxes			297		196
	Deferred revenue			8,884		7,231
	Debt			47,586		14,530
	Other liabilities			11,159		10,156
		Total liabilities		114,923		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; 114,322 shares issued and 114,202 shares outstanding at June 30, 2015; 112,849 shares issued and 112,729 shares outstanding at December 31, 2014			114		113
	Additional paid-in capital			523,997		519,068
	Treasury stock, at cost, 120 shares at June 30, 2015 and December 31, 2014			(1,218)		(1,218)
	Accumulated deficit			(343,136)		(350,887)
	Accumulated other comprehensive income			633		1,276
		Total stockholders' equity		180,390		168,352
		Total liabilities and stockholders' equity	$	295,313	$	227,654