Axcelis Announces Financial Results For Second Quarter 2020

Company Reports Strong Financial Performance

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Aug 04, 2020, 16:01 ET

BEVERLY, Mass., Aug. 4, 2020 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the second quarter ended June 30, 2020.

The Company reported second quarter revenue of $123 million, compared to $119 million for the first quarter of 2020. Operating profit for the quarter was $16.4 million, compared to $13.7 million for the first quarter. Net income for the quarter was $13.3 million, or $0.39 per diluted share, compared to net income for the first quarter of $11.2 million, or $0.33 per diluted share. Gross margin for the quarter was 42.2%, compared to 38.3% in the first quarter. Cash, cash equivalents and restricted cash were $197 million on June 30, 2020, compared to $181.4 million on March 31, 2020.

President and CEO Mary Puma commented, "We are very pleased with our strong second quarter performance. Customer interest in our Purion platform remains strong, as evidenced by demo activity and evaluation system placements for both our Purion base platform and our new Purion product extensions. With the most innovative implant product line available, a broad and diverse customer base, a strong balance sheet and a dedicated team of employees, Axcelis has the building blocks to navigate these uncertain times and ultimately drive growth and market leadership in ion implantation."

Business Outlook
For the third quarter ending September 30, 2020, Axcelis expects revenues to be approximately $110 million with gross margin around 42.5%. Third quarter operating profit is forecasted to be in the range of $10.5-11.5 million with earnings per diluted share of approximately $0.24.

Second Quarter 2020 Conference Call
The Company will host a call to discuss the results for the second quarter 2020 on Wednesday, August 5, 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 Conference ID: 6153997. 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 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				Six months ended
		June 30,			June 30,
	2020		2019		2020		2019
Revenue:
Product	$	117,194	$	68,714	$	229,327	$	152,911
Services		5,771		5,591		12,629		12,871
Total revenue		122,965		74,305		241,956		165,782
Cost of revenue:
Product		65,519		37,188		132,691		84,518
Services		5,547		5,368		11,817		12,009
Total cost of revenue		71,066		42,556		144,508		96,527
Gross profit		51,899		31,749		97,448		69,255
Operating expenses:
Research and development		16,040		13,720		30,646		27,405
Sales and marketing		9,437		8,436		17,641		17,354
General and administrative		10,041		7,583		19,077		15,390
Total operating expenses		35,518		29,739		67,364		60,149
Income from operations		16,381		2,010		30,084		9,106
Other (expense) income:
Interest income		70		845		552		1,686
Interest expense		(1,299)		(1,311)		(2,602)		(2,541)
Other, net		421		(189)		(199)		(362)
Total other expense		(808)		(655)		(2,249)		(1,217)
Income before income taxes		15,573		1,355		27,835		7,889
Income tax provision		2,271		799		3,312		1,271
Net income	$	13,302	$	556	$	24,523	$	6,618
Net income per share:
Basic	$	0.40	$	0.02	$	0.74	$	0.20
Diluted	$	0.39	$	0.02	$	0.72	$	0.19
Shares used in computing net income per share:
Basic weighted average common shares		33,116		32,729		32,998		32,706
Diluted weighted average common shares		33,958		33,901		34,023		34,064

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


	June 30,		December 31,
	2020		2019
ASSETS
Current assets:
Cash and cash equivalents	$	190,340	$	139,881
Accounts receivable, net		64,909		83,753
Inventories, net		149,178		140,364
Prepaid expenses and other current assets		16,272		11,681
Total current assets		420,699		375,679
Property, plant and equipment, net		27,997		25,328
Operating lease assets		5,033		5,849
Finance lease assets, net		21,200		21,880
Long-term restricted cash		6,676		6,653
Deferred income taxes		64,615		68,060
Other assets		42,344		44,645
Total assets	$	588,564	$	548,094
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	30,270	$	25,341
Accrued compensation		14,221		7,631
Warranty		3,942		2,759
Income taxes		298		294
Deferred revenue		29,181		24,601
Current portion of finance lease obligation		654		399
Other current liabilities		8,193		7,639
Total current liabilities		86,759		68,664
Long-term finance lease obligation		47,787		48,149
Long-term deferred revenue		1,236		4,650
Other long-term liabilities		7,758		7,204
Total liabilities		143,540		128,667

Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 33,433 shares issued and outstanding at June 30, 2020; 32,585 shares issued and outstanding at December 31, 2019		33		33
Additional paid-in capital		562,839		559,878
Accumulated deficit		(117,428)		(140,226)
Accumulated other comprehensive loss		(420)		(258)
Total stockholders' equity		445,024		419,427
Total liabilities and stockholders' equity	$	588,564	$	548,094