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Axcelis Announces Financial Results For Third Quarter 2020

Published: 2020-11-05 21:01:00 ET

Company Reports Strong Earnings Driven by Robust Gross Margins

BEVERLY, Mass., Nov. 5, 2020 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the third quarter ended September 30, 2020.

The Company reported third quarter revenue of $110.4 million, compared to $123 million for the second quarter of 2020. Operating profit for the quarter was $13.9 million, compared to $16.4 million for the second quarter. Net income for the quarter was $10.8 million, or $0.32 per diluted share, compared to net income for the second quarter of $13.3 million, or $0.39 per diluted share. Gross margin for the quarter was 43.6%, compared to 42.2% in the second quarter. Cash, cash equivalents and restricted cash were $212.7 million on September 30, 2020, compared to $197 million on June 30, 2020.

President and CEO Mary Puma commented, "We are pleased with our third quarter performance, which met or exceeded guidance and consensus. The Company delivered strong earnings driven by robust gross margins. We continue to expand our large and diverse customer base in key market segments, with new penetrations of the Purion H and new Purion product extensions. We are exiting 2020 with good momentum, positioning us well to capitalize on the expectation that 2021 will be a strong investment year and for the achievement of our $550 and $650 million dollar target models over the next several years."

Business OutlookFor the fourth quarter ending December 31, 2020, Axcelis expects revenues to be approximately $110 million with gross margin around 41%. Fourth quarter operating profit is forecasted to be approximately $10 million with earnings per diluted share of approximately $0.21.

Third Quarter 2020 Conference CallThe Company will host a call to discuss the results for the third quarter 2020 on Friday, November 6, 2020 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. If you would like to ask a question, the dial in number is 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: 1999553. Please dial in at least 15 minutes in advance to ensure a timely connection to the call. 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,
	2020		2019		2020		2019
Revenue:
Product	$	104,799	$	64,290	$	334,126	$	217,201
Services		5,606		5,163		18,235		18,034
Total revenue		110,405		69,453		352,361		235,235
Cost of revenue:
Product		56,427		33,587		189,118		118,105
Services		5,817		5,285		17,634		17,294
Total cost of revenue		62,244		38,872		206,752		135,399
Gross profit		48,161		30,581		145,609		99,836
Operating expenses:
Research and development		14,867		12,930		45,513		40,335
Sales and marketing		9,763		8,057		27,404		25,411
General and administrative		9,649		7,707		28,726		23,097
Total operating expenses		34,279		28,694		101,643		88,843
Income from operations		13,882		1,887		43,966		10,993
Other (expense) income:
Interest income		106		687		658		2,373
Interest expense		(1,296)		(1,308)		(3,898)		(3,849)
Other, net		900		(890)		701		(1,252)
Total other expense		(290)		(1,511)		(2,539)		(2,728)
Income before income taxes		13,592		376		41,427		8,265
Income tax provision (benefit)		2,807		(328)		6,119		943
Net income	$	10,785	$	704	$	35,308	$	7,322
Net income per share:
Basic	$	0.32	$	0.02	$	1.06	$	0.22
Diluted	$	0.32	$	0.02	$	1.04	$	0.22
Shares used in computing net income per share:
Basic weighted average common shares		33,477		32,344		33,159		32,584
Diluted weighted average common shares		34,174		33,323		34,070		33,821

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


	September 30,		December 31,
	2020		2019
ASSETS
Current assets:
Cash and cash equivalents	$	211,967	$	139,881
Accounts receivable, net		45,161		83,753
Inventories, net		159,658		140,364
Prepaid expenses and other current assets		18,982		11,681
Total current assets		435,768		375,679
Property, plant and equipment, net		29,199		25,328
Operating lease assets		4,655		5,849
Finance lease assets, net		20,872		21,880
Long-term restricted cash		750		6,653
Deferred income taxes		58,247		68,060
Other assets		41,165		44,645
Total assets	$	590,656	$	548,094
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	24,260	$	25,341
Accrued compensation		18,856		7,631
Warranty		4,151		2,759
Income taxes		328		294
Deferred revenue		13,118		24,601
Current portion of finance lease obligation		705		399
Other current liabilities		7,965		7,639
Total current liabilities		69,383		68,664
Long-term finance lease obligation		47,593		48,149
Long-term deferred revenue		3,851		4,650
Other long-term liabilities		9,166		7,204
Total liabilities		129,993		128,667

Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 33,491 shares issued and outstanding at September 30, 2020; 32,585 shares issued and outstanding at December 31, 2019		33		33
Additional paid-in capital		566,195		559,878
Accumulated deficit		(106,643)		(140,226)
Accumulated other comprehensive income (loss)		1,078		(258)
Total stockholders' equity		460,663		419,427
Total liabilities and stockholders' equity	$	590,656	$	548,094

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SOURCE Axcelis Technologies, Inc.

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