Axcelis Announces Financial Results For Third Quarter 2018
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 OutlookFor 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 CallThe 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 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 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.