Axcelis Announces Financial Results For Second Quarter 2016
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 OutlookFor 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 CallThe 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 Lawson978.787.9552
Editorial/Media:Maureen Hart978.787.4266
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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.