Market Overview

Axcelis Announces Financial Results For Fourth Quarter And Full Year 2019

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BEVERLY, Mass., Feb. 5, 2020 /PRNewswire/ -- Axcelis Technologies, Inc. (NASDAQ:ACLS) today announced financial results for the fourth quarter and full year ended December 31, 2019.

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

The Company reported fourth quarter revenue of $107.7 million, compared to $69.5 million for the third quarter of 2019. Operating profit for the quarter was $13.2 million, compared to $1.9 million for the third quarter. Net income for the quarter was $9.7 million, or $0.29 per diluted share, compared to net income for the third quarter of $0.7 million, or $0.02 per diluted share. Gross margin for the quarter was 41.1%, compared to 44% in the third quarter. Cash, cash equivalents and restricted cash were $146.5 million on December 31, 2019, compared to $162.2 million on September 30, 2019.

For the full year 2019, the Company reported revenue of $343.0 million, compared with $442.6 million for the full year 2018. Systems revenue for the year was $202.6 million, compared to $280.4 million in 2018. Operating profit was $24.2 million in 2019, compared to $60 million in 2018. Net income for the year was $17 million with diluted earnings per share of $0.50. This compares to 2018 net income of $45.9 million and earnings per diluted share of $1.35.

President and CEO Mary Puma commented, "In 2019 we continued to expand the Purion installed base, growing our large and diverse group of customers in key market segments. We extended our Purion product line with the launch of four new Purion implanters specifically targeted at these segments, while maintaining tight control of operating expenses. This allowed us to remain profitable through the cycle, deliver annual gross margins of 42.0%, sustain a healthy balance sheet, and institute a share repurchase program. Exiting the year with a 94% increase in system revenues in the fourth quarter demonstrates our strong competitive position as we enter what is expected to be an extended growth period driven by 5G."

Business Outlook
For the first quarter ending March 31, 2020, Axcelis expects revenues of approximately $115 million. Gross margin in the first quarter is expected to be around 37%, impacted by the planned closure of three evaluation systems in the quarter. First quarter operating profit is forecasted to be approximately $9.5 million. Earnings per diluted share is expected to be approximately $0.21.

Fourth Quarter and Full Year 2019 Conference Call
The Company will host a call to discuss the results for the fourth quarter and full year 2019 on Thursday, February 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, 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: 3972885. 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 


Twelve months ended





December 31,


December 31,




2019


2018


2019


2018


Revenue:














Product


$

102,304


$

98,883


$

319,505


$

415,922


Services



5,419



6,800



23,453



26,653


Total revenue



107,723



105,683



342,958



442,575


Cost of revenue:














Product



57,627



55,023



175,732



236,446


Services



5,780



7,093



23,074



26,493


Total cost of revenue



63,407



62,116



198,806



262,939


Gross profit



44,316



43,567



144,152



179,636


Operating expenses:














Research and development



13,596



14,245



53,931



51,876


Sales and marketing



8,879



9,362



34,290



34,608


General and administrative



8,629



8,438



31,726



33,193


Total operating expenses



31,104



32,045



119,947



119,677


Income from operations



13,212



11,522



24,205



59,959


Other (expense) income:














Interest income



582



810



2,955



2,328


Interest expense



(1,306)



(1,323)



(5,155)



(5,110)


Other, net



169



(762)



(1,083)



(2,472)


Total other expense



(555)



(1,275)



(3,283)



(5,254)


Income before income taxes



12,657



10,247



20,922



54,705


Income tax provision



2,945



1,784



3,888



8,820


Net income


$

9,712


$

8,463


$

17,034


$

45,885


Net income per share:














Basic


$

0.30


$

0.26


$

0.52


$

1.42


Diluted


$

0.29


$

0.25


$

0.50


$

1.35


Shares used in computing net income per share:














Basic weighted average common shares



32,485



32,467



32,559



32,286


Diluted weighted average common shares



33,848



33,886



33,828



34,002


 

 

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)











December 31,


December 31,




2019


2018


ASSETS








Current assets:








Cash and cash equivalents


$

139,881


$

177,993


Accounts receivable, net



83,753



78,727


Inventories, net



140,364



129,000


Prepaid expenses and other current assets



11,681



11,051


Total current assets



375,679



396,771


Property, plant and equipment, net



25,328



41,149


Operating lease assets



5,849




Finance lease assets, net



21,880




Long-term restricted cash



6,653



6,909


Deferred income taxes



68,060



71,939


Other assets



44,645



31,673


Total assets


$

548,094


$

548,441










LIABILITIES AND STOCKHOLDERS' EQUITY








Current liabilities:








Accounts payable


$

25,341


$

35,955


Accrued compensation



7,631



19,218


Warranty



2,759



4,819


Income taxes



294



462


Deferred revenue



24,601



19,513


Current portion of long-term debt



399




Other current liabilities



7,639



5,030


Total current liabilities



68,664



84,997


Finance lease obligation



48,149



47,757


Long-term deferred revenue



4,650



3,071


Other long-term liabilities



7,204



4,279


       Total liabilities



128,667



140,104


Commitments and contingencies








Stockholders' equity:








Common stock, $0.001 par value, 75,000 shares authorized; 32,585 shares issued and
outstanding at December 31, 2019; 32,558 shares issued and outstanding at December 31,
2018



33



33


Additional paid-in capital



559,878



565,116


Accumulated deficit



(140,226)



(157,260)


Accumulated other comprehensive (loss) income



(258)



448


     Total stockholders' equity



419,427



408,337


       Total liabilities and stockholders' equity


$

548,094


$

548,441










 

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SOURCE Axcelis Technologies, Inc.

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