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Axcelis Announces Financial Results For Third Quarter 2021

Published: 2021-11-03 20:01:00 ET

The Company Reports Record Implant Systems Revenue and Backlog

BEVERLY, Mass., Nov. 3, 2021 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS), a leading supplier of enabling ion implantation solutions for the semiconductor industry, today announced financial results for the third quarter ended September 30, 2021.

Axcelis announced financial results for Q3 2021. The Company reports record Implant Systems Revenue and Backlog.

Highlights for the third quarter are as follows:

The Company reported third quarter revenue of $176.7 million, compared to $147.3 million for the second quarter of 2021. This includes quarterly system revenues of $126.2 million dollars, an implant systems record, compared to $100.1 million in the second quarter.
Operating profit for the quarter was $36.4 million, compared to $24 million for the second quarter.
Net income for the quarter was $27.5 million, or $0.81 per diluted share, compared to net income of $18.9 million, or $0.55 per diluted share for the second quarter.
Gross margin for the quarter was 43.3%, compared to 43.5% in the second quarter.
Shipped full family of Purion SiC Power Series™ implanters to leading power device chipmakers located in Asia and Europe.
Shipped multiple Purion™ high current and high energy implanters to a leading memory device manufacturer located in Asia.

President and CEO Mary Puma commented, "Axcelis delivered very strong third quarter financial performance driven by record implant systems revenue and solid gross margins. The mature and specialty markets, especially the implant-intensive power device segment, are generating significant market expansion. Axcelis is capitalizing on the strength of these segments with market leading Purion product extensions specifically designed to meet these customers' requirements. The Company is well positioned for long-term, sustainable growth."

Business OutlookFor the fourth quarter ending December 31, 2021, Axcelis expects revenues to be approximately $190 million. Gross margin in the fourth quarter is expected to be approximately 41.5%. Fourth quarter operating profit is forecasted to be approximately $37 million with earnings per diluted share of approximately $0.84. The Company also expects to exceed $640 million in revenue for the full year 2021.

Third Quarter 2021 Conference CallThe Company will host a call to discuss the results for the third quarter on Thursday, November 4, 2021 at 8:30 am ET. 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 Audience Passcode: 4426677. 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 over 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				Nine months ended
		September 30,			September 30,
	2021		2020		2021		2020
Revenue:
Product	$	169,151	$	104,799	$	435,916	$	334,126
Services		7,543		5,606		20,828		18,235
Total revenue		176,694		110,405		456,744		352,361
Cost of revenue:
Product		93,201		56,427		240,223		189,118
Services		6,981		5,817		19,560		17,634
Total cost of revenue		100,182		62,244		259,783		206,752
Gross profit		76,512		48,161		196,961		145,609
Operating expenses:
Research and development		16,707		14,867		49,015		45,513
Sales and marketing		11,415		9,763		33,979		27,404
General and administrative		11,996		9,649		33,226		28,726
Total operating expenses		40,118		34,279		116,220		101,643
Income from operations		36,394		13,882		80,741		43,966
Other (expense) income:
Interest income		51		106		124		658
Interest expense		(1,269)		(1,296)		(3,572)		(3,898)
Other, net		(963)		900		(2,131)		701
Total other expense		(2,181)		(290)		(5,579)		(2,539)
Income before income taxes		34,213		13,592		75,162		41,427
Income tax provision		6,698		2,807		12,261		6,119
Net income	$	27,515	$	10,785	$	62,901	$	35,308
Net income per share:
Basic	$	0.82	$	0.32	$	1.87	$	1.06
Diluted	$	0.81	$	0.32	$	1.83	$	1.04
Shares used in computing net income per share:
Basic weighted average common shares		33,537		33,477		33,643		33,159
Diluted weighted average common shares		34,089		34,174		34,339		34,070

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


	September 30,		December 31,
	2021		2020
ASSETS
Current assets:
Cash and cash equivalents	$	271,085	$	203,479
Accounts receivable, net		78,257		86,865
Inventories, net		196,812		161,076
Prepaid expenses and other current assets		23,990		19,371
Total current assets		570,144		470,791
Property, plant and equipment, net		32,921		29,840
Operating lease assets		8,106		4,542
Finance lease assets, net		19,563		20,544
Long-term restricted cash		756		753
Deferred income taxes		44,206		57,851
Other assets		35,282		40,303
Total assets	$	710,978	$	624,624
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	35,499	$	24,013
Accrued compensation		23,548		24,562
Warranty		5,741		4,280
Income taxes		623		654
Deferred revenue		54,502		21,221
Current portion of finance lease obligation		921		756
Other current liabilities		16,361		8,945
Total current liabilities		137,195		84,431
Long-term finance lease obligation		46,672		47,393
Long-term deferred revenue		3,738		1,837
Other long-term liabilities		11,694		9,361
Total liabilities		199,299		143,022

Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 33,406 shares issued and outstanding at September 30, 2021; 33,633 shares issued and outstanding at December 31, 2020		33		34
Additional paid-in capital		559,913		570,102
Accumulated deficit		(50,017)		(91,969)
Accumulated other comprehensive income		1,750		3,435
Total stockholders' equity		511,679		481,602
Total liabilities and stockholders' equity	$	710,978	$	624,624

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SOURCE Axcelis Technologies, Inc.

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