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Axcelis Announces Financial Results For Third Quarter 2016
[November 02, 2016]

Axcelis Announces Financial Results For Third Quarter 2016


BEVERLY, Mass., Nov. 2, 2016 /PRNewswire/ -- Axcelis Technologies, Inc. (NASDAQ: ACLS) today announced financial results for the third quarter ended September 30, 2016. The Company reported third quarter revenue of $65.7 million, compared to $64.5 million for the second quarter of 2016. Operating profit for the quarter was $3.6 million, compared to $4.6 million for the second quarter. Net income for the quarter was $2.2 million, or $0.07 per diluted share. This compares to net income for the second quarter of 2016 of $2.9 million, or $0.10 per diluted share. Cash, cash equivalents and restricted cash were $72.5 million on September 30, 2016, compared to $67.8 million on June 30, 2016.

Axcelis Technologies, Inc.

"Since the start of the year we have made significant progress on our penetration plans, placing Purion products in thirteen new customer fabs, including seven new customers and six new fabs for existing customers," said President and CEO Mary Puma. "These Purion penetrations position Axcelis for success as the industry enters a strong investment cycle, creating a strong foundation for growth in both 2017 and 2018."

"We remain focused on executing against gross margin initiatives that have already delivered solid increases in Purion product margins. Since ramping production of the full Purion product line with the Purion H in Q1 of 2015, system standard margins have improved 680 basis points on a rolling four quarter average," added Chief Financial Officer and Executive Vice President Kevin Brewer. "These actions along with additional planned improvements should allow us to achieve our goal of 40% gross margins by the end of 2017."

Business Outlook
For the fourth quarter ending December 31, 2016, Axcelis expects revenues of $65-70 million. Gross margin in the fourth quarter is expected to be in the 36-38% range. Fourth quarter operating profit is forecasted to be approximately $3-4 million with $0.04-0.08 earnings per diluted share.

Third Quarter 2016 Conference Call
The Company will host a conference call today, Wednesday, November 2, 2016 at 5:00 pm ET, to discuss results for the third quarter 2016. 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 code: 98342071. 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 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. Our forecasted diluted earnings per share does not take into account option exercises during the quarter and assumes no change in the weighted average stock price from the prior quarter. 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

September 30,


Nine months ended

September 30,





2016


2015


2016


2015












Revenue:













Product

$

59,302


$

73,795


$

180,336


$

214,073


Services


6,348



5,522



17,286



16,964



Total revenue


65,650



79,317



197,622



231,037

Cost of Revenue:













Product


36,360



45,698



111,262



137,443


Services


5,186



4,440



13,709



13,861



Total cost of revenue


41,546



50,138



124,971



151,304
















Gross profit


24,104



29,179



72,651



79,733
















Operating expenses:













Research and development


8,493



8,581



25,607



24,679


Sales and marketing


5,992



6,322



17,742



17,808


General and administrative


5,988



6,584



18,262



18,916


Restructuring charges






282



18



Total operating expenses


20,473



21,487



61,893



61,421
















Income from operations


3,631



7,692



10,758



18,312
















Other (expense) income:













Interest income


53



7



161



16


Interest expense


(1,342)



(1,274)



(3,727)



(3,627)


Other, net


(55)



(167)



(352)



(551)



Total other (expense) income


(1,344)



(1,434)



(3,918)



(4,162)
















Income before income taxes


2,287



6,258



6,840



14,150













Income tax provision (benefit)


136



157



(196)



298













Net income

$

2,151


$

6,101


$

7,036


$

13,852
















Net income per share:














Basic

$

0.07


$

0.21


$

0.24


$

0.49



Diluted

$

0.07


$

0.20


$

0.23


$

0.46
















Shares used in computing net income per share:














Basic weighted average common shares


29,221



28,700



29,118



28,480



Diluted weighted average common shares


31,037



30,466



30,760



30,155


 

 

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








September 30,


December 31,



2016


2015









ASSETS








Cash and cash equivalents


$

65,623


$

78,889


Accounts receivable, net



44,993



36,868


Inventories, net



117,001



109,408


Prepaid expenses and other assets



25,864



19,652


Property, plant and equipment, net



30,804



30,031


Restricted cash



6,865



6,936


         Total assets


$

291,150


$

281,784










LIABILITIES AND STOCKHOLDERS' EQUITY








Accounts payable


$

20,241


$

19,849


Accrued compensation



4,508



9,059


Warranty



2,822



3,555


Income taxes



235



143


Deferred revenue



7,862



8,542


Sale leaseback obligation



47,586



47,586


Other liabilities



9,968



9,286


         Total liabilities



93,222



98,020










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; 29,347 shares issued and 
outstanding at September 30, 2016; 29,025 shares issued and 28,995 shares
outstanding at December 31, 2015



29



29


Additional paid-in capital



533,392



529,089


Treasury stock, at cost, no shares at September 30, 2016 and 30 shares at
December 31, 2015





 

(1,218)


Accumulated deficit



(335,669)



(342,705)


Accumulated other comprehensive income (loss)



176



(1,431)


         Total stockholders' equity



197,928



183,764


         Total liabilities and stockholders' equity


$

291,150


$

281,784

 

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SOURCE Axcelis Technologies, Inc.


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