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Axcelis Announces Financial Results For Third Quarter 2020

November 5, 2020 GMT
Axcelis Technologies, Inc. (PRNewsFoto/Axcelis Technologies, Inc.) (PRNewsFoto/)
Axcelis Technologies, Inc. (PRNewsFoto/Axcelis Technologies, Inc.) (PRNewsFoto/)

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.

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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 Outlook
For 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 Call
The 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.

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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


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










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.