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Axcelis Announces Financial Results For First Quarter 2020

Published: 2020-05-05 20:01:00 ET

Company Reports Continued Strong Demand for Purion Products

BEVERLY, Mass., May 5, 2020 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the first quarter ended March 31, 2020.

The Company reported first quarter revenue of $119 million, compared to $107.7 million for the fourth quarter of 2019. Operating profit for the quarter was $13.7 million, compared to $13.2 million for the fourth quarter. Net income for the quarter was $11.2 million, or $0.33 per diluted share, compared to net income for the fourth quarter of $9.7 million, or $0.29 per diluted share. Gross margin for the quarter was 38.3%, compared to 41.1% in the fourth quarter. Cash, cash equivalents and restricted cash were $181.4 million on March 31, 2020, compared to $146.5 million on December 31, 2019.

President and CEO Mary Puma commented, "We are very pleased with our strong first quarter performance. As a result of everyone's extraordinary efforts, we delivered an excellent financial quarter by continuing to meet our customers' expectations. While there is limited visibility to near-term macroeconomic conditions, customer demand for our Purion platform remains strong. Axcelis has a highly differentiated product line, a broad and diverse customer base, a robust balance sheet and a dedicated team of employees. These strengths will propel us through this difficult period and lead us to market leadership in ion implantation."

First Quarter 2020 Conference CallThe Company will host a call to discuss the results for the first quarter 2020 on Wednesday, May 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, 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: 1738978. 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
	March 31,
	2020		2019
Revenue:
Product	$	112,133	$	84,197
Services		6,858		7,280
Total revenue		118,991		91,477
Cost of revenue:
Product		67,172		47,338
Services		6,270		6,633
Total cost of revenue		73,442		53,971
Gross profit		45,549		37,506
Operating expenses:
Research and development		14,606		13,685
Sales and marketing		8,204		8,918
General and administrative		9,036		7,807
Total operating expenses		31,846		30,410
Income from operations		13,703		7,096
Other (expense) income:
Interest income		482		841
Interest expense		(1,303)		(1,230)
Other, net		(620)		(173)
Total other expense		(1,441)		(562)
Income before income taxes		12,262		6,534
Income tax provision		1,041		472
Net income	$	11,221	$	6,062
Net income per share:
Basic	$	0.34	$	0.19
Diluted	$	0.33	$	0.18
Shares used in computing net income per share:
Basic weighted average common shares		32,872		32,683
Diluted weighted average common shares		34,057		34,224

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

	March 31,		December 31,
	2020		2019
ASSETS
Current assets:
Cash and cash equivalents	$	174,745	$	139,881
Accounts receivable, net		64,238		83,753
Inventories, net		136,068		140,364
Prepaid expenses and other current assets		16,621		11,681
Total current assets		391,672		375,679
Property, plant and equipment, net		26,363		25,328
Operating lease assets		5,583		5,849
Finance lease assets, net		21,528		21,880
Long-term restricted cash		6,671		6,653
Deferred income taxes		66,607		68,060
Other assets		44,149		44,645
Total assets	$	562,573	$	548,094
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	26,089	$	25,341
Accrued compensation		9,237		7,631
Warranty		3,431		2,759
Income taxes		344		294
Deferred revenue		28,892		24,601
Current portion of finance lease obligation		573		399
Other current liabilities		6,807		7,639
Total current liabilities		75,373		68,664
Long-term finance lease obligation		47,976		48,149
Long-term deferred revenue		5,214		4,650
Other long-term liabilities		6,838		7,204
Total liabilities		135,401		128,667

Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 32,837 shares issued and outstanding at March 31, 2020; 32,585 shares issued and outstanding at December 31, 2019		33		33
Additional paid-in capital		559,182		559,878
Accumulated deficit		(130,730)		(140,226)
Accumulated other comprehensive loss		(1,313)		(258)
Total stockholders' equity		427,172		419,427
Total liabilities and stockholders' equity	$	562,573	$	548,094

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SOURCE Axcelis Technologies, Inc.

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