Axcelis Announces Financial Results For First Quarter 2017

Company Reports Significant Increases in Revenue & Operating Profit; Ships 100th Purion System

News provided by

May 04, 2017, 16:01 ET

BEVERLY, Mass., May 4, 2017 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the first quarter ended March 31, 2017.

The Company reported first quarter revenue of $86.9 million, compared to $69.4 million for the fourth quarter of 2016. Operating profit for the quarter was $10.7 million, compared to $5.9 million for the fourth quarter. Net income for the quarter was $9.5 million, or $0.29 per share. Net income for the fourth quarter of 2016 was $4.0 million, or $0.13 per share. Total cash was $76.2 million at March 31, 2017, compared to $77.7 million on December 31, 2016.

President and CEO Mary Puma commented, "The industry is in a period of strong growth, driven by the thriving IoT and data storage markets. Today we shipped our 100^th Purion system, demonstrating the continuing adoption of Purion products based on the innovative technology differentiation they offer customers. The Purion platform is well positioned to capitalize on the strength of this market."

"I am very pleased with our financial performance in the first quarter. We exceeded guidance and consensus estimates across the board," said Chief Financial Officer and Executive Vice President Kevin Brewer. "Our gross margin initiatives continue to deliver results and this quarter we demonstrated that Axcelis can generate 40% gross margins."

Business Outlook
For the second quarter ending June 30, 2017, Axcelis expects revenues of approximately $100 million. Gross margin in the second quarter is expected to be approximately 38%. Second quarter operating profit is forecasted to be approximately $12-13 million with earnings per share of $0.30-0.35. Total cash for the quarter is also expected to be around $100 million.

First Quarter 2017 Conference Call
The Company will host a conference call today at 5:00 pm ET to discuss the Company's results for the first quarter of 2017. The call will be available to interested listeners via an audio webcast on 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: 97405648. 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 expectations for increased 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, 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. 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 Lawson
978.787.9552

Editorial/Media:
Maureen Hart
978.787.4266

Axcelis Technologies, Inc. Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited)

			Three months ended March 31,
			2017		2016

Revenue:
	Product		$	81,978	$	62,175
	Services			4,915		5,346
		Total revenue		86,893		67,521
Cost of Revenue:
	Product			46,797		40,263
	Services			5,382		3,842
		Total cost of revenue		52,179		44,105

Gross profit				34,714		23,416

Operating expenses:
	Research and development			9,895		8,636
	Sales and marketing			7,049		5,960
	General and administrative			7,057		6,042
	Restructuring charges			—		282
		Total operating expenses		24,001		20,920

Income from operations				10,713		2,496

Other (expense) income:
	Interest income			69		54
	Interest expense			(1,111)		(1,047)
	Other, net			(154)		(59)
		Total other expense		(1,196)		(1,052)

Income before income taxes				9,517		1,444

Income tax provision (benefit)				11		(504)

Net income			$	9,506	$	1,948

Net income per share:
		Basic	$	0.32	$	0.07
		Diluted	$	0.29	$	0.06

Shares used in computing net income per share:
		Basic weighted average common shares		29,772		29,038
		Diluted weighted average common shares		32,255		30,520

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

			March 31,		December 31,
			2017		2016

	ASSETS
	Cash and cash equivalents		$	69,429	$	70,791
	Accounts receivable, net			67,083		50,573
	Inventories, net			115,635		113,853
	Prepaid expenses and other assets			32,182		29,310
	Property, plant and equipment, net			31,486		30,840
	Restricted cash			6,792		6,864
		Total assets	$	322,607	$	302,231

	LIABILITIES AND STOCKHOLDERS' EQUITY
	Accounts payable		$	26,426	$	24,996
	Accrued compensation			5,920		5,142
	Warranty			3,124		2,668
	Income taxes			252		240
	Deferred revenue			13,121		11,009
	Sale leaseback obligation			47,681		47,586
	Other liabilities			9,840		9,135
		Total liabilities		106,364		100,776

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; 29,995 shares issued and outstanding at March 31, 2017; 29,518 shares issued and outstanding at December 31, 2016			30		30
	Additional paid-in capital			538,747		535,408
	Accumulated deficit			(322,198)		(331,704)
	Accumulated other comprehensive loss			(336)		(2,279)
		Total stockholders' equity		216,243		201,455
		Total liabilities and stockholders' equity	$	322,607	$	302,231