Market Overview

Axcelis Announces Financial Results For Third Quarter 2019

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BEVERLY, Mass., Oct. 31, 2019 /PRNewswire/ -- Axcelis Technologies, Inc. (NASDAQ:ACLS) today announced financial results for the third quarter ended September 30, 2019.  

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

The Company reported third quarter revenue of $69.5 million, compared to $74.3 million for the second quarter of 2019. Operating profit for the quarter was $1.9 million, compared to $2.0 million for the second quarter. Net income for the quarter was $0.7 million, or $0.02 per diluted share, compared to net income for the second quarter of $0.6 million, or $0.02 per diluted share. Gross margin for the quarter was 44%, compared to 42.7% in the second quarter. Cash, cash equivalents and restricted cash were $162.2 million on September 30, 2019, compared to $143.2 million on June 30, 2019.

President and CEO Mary Puma commented, "Axcelis is uniquely positioned to solve customers' high value, high impact, ion implantation challenges. We're excited about the recent launch of our new high current and high energy Purion products, which were developed to meet these challenges in emerging market segments, timed perfectly for the market recovery. These new products and our close partnerships with customers will allow us to grow and put us on a path to achieve our $650M target business model."

Executive Vice President and CFO Kevin Brewer noted, "I am very pleased with our third quarter financial performance. With in-line revenues and EPS, stronger gross margins, and tight cost controls, we were profitable for the quarter. We believe the quarter was the bottom of the cycle for Axcelis which means we have maintained through-cycle profitability for the first time as a public company. This is an indication of the many changes we have made to our business as we drive revenue growth and profitability."

Business Outlook

For the fourth quarter ending December 31, 2019, Axcelis expects revenue to be in the range of $92-100 million. Gross margin in the fourth quarter is expected to be approximately 38%. Fourth quarter operating profit is forecasted to be approximately $6.0 million to $9.0 million. Earnings per diluted share is expected to be in the range of $0.14-0.20.

Third Quarter 2019 Conference Call

The Company will host a call to discuss the results for the third quarter 2019 on Friday, November 1, 2019 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: 9627479. 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 


Nine months ended




September 30,


September 30,




2019


2018


2019


2018


Revenue:














Product


$

64,290


$

88,496


$

217,201


$

317,039


Services



5,163



6,878



18,034



19,853


Total revenue



69,453



95,374



235,235



336,892


Cost of revenue:














Product



33,587



49,136



118,105



181,423


Services



5,285



6,325



17,294



19,400


Total cost of revenue



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