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Axcelis Announces Financial Results For Third Quarter 2018

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Axcelis Announces Financial Results For Third Quarter 2018

Company Reports Solid Gross Margin Performance Across Diverse Customer Base

PR Newswire

BEVERLY, Mass., Nov. 1, 2018 /PRNewswire/ -- Axcelis Technologies, Inc. (NASDAQ:ACLS) today announced financial results for the third quarter ended September 30, 2018.

Axcelis Technologies, Inc. (PRNewsFoto/Axcelis Technologies, Inc.) (PRNewsFoto/)

The Company reported third quarter revenue of $95.4 million, compared to $119.3 million for the second quarter of 2018. Operating profit for the quarter was $10.7 million, compared to $19.3 million for the second quarter. Net income for the quarter was $8.8 million, or $0.26 per diluted share, compared to net income for the second quarter of 2018 of $14.7 million, or $0.43 per diluted share. Included in the quarter is a tax benefit of $1.4 million or $0.04 per diluted share relating to the calculation of transition tax under the 2017 Tax Cuts and Jobs Act. Gross margin for the quarter was 41.8%, compared to 41.1% in the second quarter. Cash, cash equivalents and restricted cash were $155.6 million at September 30, 2018, compared to $154.9 million on June 30, 2018.

"We continue to see significant demand from a highly diverse customer base for the capabilities the Purion Platform provides to address their challenging technology requirements," commented President and CEO Mary Puma. "Our aggressive initiatives to improve gross margin, combined with favorable revenue mix, delivered results above our Q3 guidance and are enabling the achievement of our 40% gross margin target for 2018."

Business Outlook
For the fourth quarter ending December 31, 2018, Axcelis expects revenues of approximately $100 million. Gross margin in the fourth quarter is expected to be around 40%. Fourth quarter operating profit is forecasted to be approximately $10.5 million. Earnings per share is expected to be approximately $0.20.

Third Quarter 2018 Conference Call
The Company will host a conference call today at 5:00 pm ET to discuss the Company's results for the third quarter. 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 pass code: 5899327. 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 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

September 30,


Nine months ended

September 30,





2018


2017


2018


2017












Revenue:













Product

$

88,496


$

98,161


$

317,039


$

276,678


Services


6,878



6,321



19,853



17,487



Total revenue


95,374



104,482



336,892



294,165

Cost of Revenue:













Product


49,136



58,056



181,423



162,542


Services


6,325



6,675



19,400



18,096



Total cost of revenue


55,461



64,731



200,823



180,638











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