10-K/A

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K/A

(Mark One)
ý	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2014
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                to               
Commission file number 000-30941

AXCELIS TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction
of incorporation or organization) 34-1818596
(IRS Employer Identification No.)

108 Cherry Hill Drive
Beverly, Massachusetts 01915
(Address of principal executive offices) (zip code)

(978) 787-4000
(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Common Stock, $.001 par value	The Nasdaq Stock Market LLC

Securities registered pursuant to Section 12(g) of the Act:
None

         Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o No ý

         Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o No ý

         Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o

         Indicate by checkmark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý No o

         Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ý

         Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer o Accelerated filer ý Non-accelerated filer o
(Do not check if a smaller
reporting company) Smaller reporting company o

         Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No ý

         Aggregate market value of the voting stock held by non-affiliates of the registrant as of June 30, 2014: $219,360,386

         Number of shares outstanding of the registrant's Common Stock, $0.001 par value, as of March 6, 2015: 113,466,753.

Documents incorporated by reference:

         Portions of the definitive Proxy Statement for Axcelis Technologies, Inc.'s Annual Meeting of Stockholders to be held on May 13, 2015 are incorporated by reference into Part III of this Form 10-K.

Explanatory Note

        This Form 10-K/A for Axcelis Technologies, Inc.'s fiscal year ended December 31, 2014 is being filed to include the Interactive Data Files in Exhibit 101, which were inadvertently omitted from Axcelis' Form 10-K filed on March 11, 2015.

        No other changes have been made to the Form 10-K as previously filed. This amendment speaks as of the original filing date of the Form 10-K, does not reflect events that may have occurred since the original filing date, and does not modify or update the disclosures made in the Form 10-K.

Signatures

        Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this amended report to be signed on its behalf by the undersigned, thereunto duly authorized.

	AXCELIS TECHNOLOGIES, INC.
	By:	/s/ MARY G. PUMA
Dated: March 12, 2015		Mary G. Puma, Chief Executive Officer

Exhibit Index

Exhibit No.		Description
	2.1	Real Estate Sale Agreement dated as of October 3, 2014 between the Company and Middleton Beverly Investors LLC. Incorporated by reference to Exhibit 2. 1 to the Company's Form 10-Q filed with the Commission on November 6, 2014.
	2.2	Sixth Amendment to Real Estate Sale Agreement between the Company and Middleton Beverly Investors LLC dated as of January 30, 2015.(1)
	3.1	Amended and Restated Certificate of Incorporation of the registrant, as adopted May 6, 2009. Incorporated by reference to Exhibit 3.1 of the Company's Form 8-K filed with the Commission on May 11, 2009.
	3.2	Bylaws of the Company, as amended and restated as of May 13, 2014.Incorporated by reference to Exhibit 3.2 of the Company's Form 8-K filed with the Commission on May 19, 2014.
	4.1	Specimen Stock Certificate. Incorporated by reference to Exhibit 4.1 of the Company's Registration Statement on Form S-1 (Registration No. 333-36330).
	10.1*	Axcelis Technologies, Inc. 2000 Stock Plan, as amended through November 13, 2014.(1)
	10.2*	Axcelis Technologies, Inc. 2012 Equity Incentive Plan, as amended through November 13, 2014.(1)
	10.3*	Axcelis Management Incentive Plan, as amended and restated by the Compensation Committee of the Board of Directors on February 11, 2010. Incorporated by reference to Exhibit 10.2 of the Company's report on Form 10-K for the year ended December 31, 2009 filed with the Commission on March 15, 2010.
	10.4*	Form of Indemnification Agreement approved by the Board of Directors of the Company on February 9, 2012 for use with each of its directors and officers. Incorporated by reference to Exhibit 10.4 of the Company's report on Form 10-K for the year ended December 31, 2011 filed with the Commission on February 29, 2012.
	10.5*	Form of Change in Control Agreement, as amended, as approved by the Board of Directors on April 27, 2012 between the Company and each of its executive officers. Incorporated by reference to Exhibit 10.5 of the Company's report on Form 10-Q for the quarter ended June 30, 2012 filed with the Commission on August 7, 2012.
	10.6*	Form of Employee non-qualified stock option grant under the 2000 Stock Plan, updated as of April 5, 2002. Incorporated by reference to Exhibit 10.1 of the Company's report on Form 10-Q filed with the Commission on November 9, 2004.
	10.7*	Form of Non-Employee Director stock non-qualified stock option grant under the 2000 Stock Plan, updated as of July 12, 2004. Incorporated by reference to Exhibit 10.2 of the Company's report on Form 10-Q filed with the Commission on November 9, 2004.
	10.8*	Form of Restricted Stock Unit Award Agreement for use under the 2000 Stock Plan. Incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K filed with the Commission on June 28, 2005.
	10.9*	Form of Employee Non-Qualified Stock Option Certificate under the 2012 Equity Incentive Plan, adopted June 18, 2012. Incorporated by reference to Exhibit 10.2 of the Company's report on Form 10-Q for the quarter ended June 30, 2012 filed with the Commission on August 7, 2012.

Exhibit No.		Description
	10.10*	Form of Non-Employee Director Non-Qualified Stock Option Certificate under the 2012 Equity Incentive Plan, adopted June 18, 2012. Incorporated by reference to Exhibit 10.3 of the Company's report on Form 10-Q for the quarter ended June 30, 2012 filed with the Commission on August 7, 2012.
	10.11*	Form of Restricted Stock Unit Award Agreement under the 2012 Equity Incentive Plan, adopted June 18, 2012. Incorporated by reference to Exhibit 10.4 of the Company's report on Form 10-Q for the quarter ended June 30, 2012 filed with the Commission on August 7, 2012.
	10.12*	Named Executive Officer Base Compensation at March 5, 2015.(1)
	10.13*	Non-Employee Director Cash Compensation at March 5, 2015.(1)
	10.14*	Amended and Restated Employment Agreement between the Company and Mary G. Puma dated November 6, 2007. Incorporated by reference to Exhibit 10.3 of the Company's report on Form 10-Q for the quarter ended September 30, 2007 filed with the Commission on November 8, 2007.
	10.15*	Form of Executive Separation Pay Agreement between the Company and each of Kevin J. Brewer, William Bintz, John E. Aldeborgh, Lynnette C. Fallon and Douglas A. Lawson dated March 5, 2015.(1)
	10.19	License Agreement dated as of March 30, 2009 between the Company and SEN Corporation. Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the Commission on April 3, 2009.
	10.20	Loan and Security Agreement dated as of October 31, 2013 between the Company and Silicon Valley Bank. Incorporated by reference to Exhibit 10.4 to the Company's report on Form 10-Q filed with the Commission on November 8, 2013.
	10.21	Waiver and First Amendment dated August 1, 2014 to the Loan and Security Agreement dated as of October 31, 2013 between the Company and Silicon Valley Bank. Incorporated by reference to Exhibit 10.3 to the Company's Form 10-Q filed with the Commission on November 6, 2014.
	10.23	Second Amendment to the Loan and Security Agreement between the Company and Silicon Valley Bank., effective February 2, 2015.(1)
	10.24	Lease Agreement between the Company and Beverly Property Owner LLC, effective January 30, 2015.(1)
	14.1	Ethical Business Conduct at Axcelis, revised through January 2003. Incorporated by reference to Exhibit 14.1 of the Company's report on Form 10-K filed with the Commission on March 28, 2003.
	21.1	Subsidiaries of the Company.(1)
	23.1	Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm.(1)
	31.1	Certification of the Principal Executive Officer under Exchange Act Rule 13a-14(a)/15d-14(a) (Section 302 of the Sarbanes-Oxley Act), dated March 11, 2015.(1)
	31.2	Certification of the Principal Financial Officer under Exchange Act Rule 13a-14(a)/15d-14(a) (Section 302 of the Sarbanes-Oxley Act), dated March 11, 2015.(1)
	32.1	Certification of the Principal Executive Officer pursuant to Section 1350 of Chapter 63 of title 18 of the United States Code (Section 906 of the Sarbanes-Oxley Act), dated March 11, 2015.(1)

Exhibit No.		Description
	32.2	Certification of the Principal Financial Officer pursuant to Section 1350 of Chapter 63 of title 18 of the United States Code (Section 906 of the Sarbanes-Oxley Act), dated March 11, 2015.(1)
	101	The following materials from the Company's Form 10-K for the year ended December 31, 2014, formatted in eXtensible Business Reporting Language (XBRL): (i) Consolidated Statements of Operations, (ii) Consolidated Statement of Comprehensive Income (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements. Filed herewith.

*

Indicates a management contract or compensatory plan.

(1)

Filed with the original Form 10-K on March 11, 2015.

You may obtain a copy of any of these exhibits free of charge either on our website at http://www.axcelis.com or by contacting Investor Relations at Axcelis Technologies, Inc., 108 Cherry Hill Drive, Beverly, MA 01915-1053.

QuickLinks

Documents incorporated by reference
Explanatory Note
Signatures
Exhibit Index

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Stock Award Plans and Stock Based Compensation (Tables)

12 Months Ended

Dec. 31, 2014

Stock Award Plans and Stock Based Compensation

Schedule of estimated weighted-average assumptions used in calculation of fair value of options granted

	Years ended December 31,
	2014		2013		2012
Weighted-average expected volatility	60.59-98.40	%	98.1	%	97.8%-113.55	%
Weighted-average expected term	3.75-4.71 years		4.7 years		3.8-6.1 years
Risk-free interest rate	1.19%-1.67	%	0.7%-1.4	%	0.45%-1.37	%
Expected dividend yield	0	%	0	%	0	%

Summary of stock option activity

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
	(in thousands)					(years)		(in thousands)
Outstanding at December 31, 2013		22,299		$	1.89
Granted		3,976			1.81
Exercised		(2,418	)		1.20
Canceled		(991	)		1.64
Expired		(1,162	)		8.28
Outstanding at December 31, 2014		21,704		$	1.62		5.41	$	22,238
Exercisable at December 31, 2014		12,461		$	1.55		5.09	$	14,347
Options Vested or Expected to Vest at December 31, 2014(1)		21,102		$	1.61		5.47	$	13,448

(1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest is calculated by applying an estimated forfeiture rate to the unvested options.

Schedule of changes in the Company's non-vested restricted stock units

	Shares/units			Weighted-Average Grant Date Fair Value per Share
	(in thousands)
Outstanding at December 31, 2013		23		$	1.39
Granted		90			2.17
Vested		(10	)		1.45
Forfeited		—			—
Outstanding at December 31, 2014		103		$	2.07

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Assets Manufactured for Internal Use (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Assets manufactured for internal use
Cost	$ 87,497,000	$ 87,206,000
Accumulated depreciation	(57,033,000)	(55,200,000)
Net	30,464,000	32,006,000
Depreciation expense	2,400,000	3,200,000	3,300,000
Assets Manufactured for Internal Use
Assets manufactured for internal use
Cost	27,774,000	28,672,000
Accumulated depreciation	(17,927,000)	(15,774,000)
Net	9,847,000	12,898,000
Depreciation expense	2,200,000	1,800,000	3,400,000
Assets Manufactured for Internal Use | Internal use assets
Assets manufactured for internal use
Cost	24,309,000	23,409,000
Assets Manufactured for Internal Use | Construction in process.
Assets manufactured for internal use
Cost	$ 3,465,000	$ 5,263,000

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Summary of Significant Accounting Policies (Details 4) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Changes in accumulated other comprehensive income, net of tax
Balance at the beginning of period	$ 5,739
Other comprehensive loss	(4,463)	719	243
Balance at the end of period	1,276	5,739
Foreign currency
Changes in accumulated other comprehensive income, net of tax
Balance at the beginning of period	6,070
Other comprehensive loss	(4,150)
Balance at the end of period	1,920
Defined benefit pension plan
Changes in accumulated other comprehensive income, net of tax
Balance at the beginning of period	(331)
Other comprehensive loss	(313)
Balance at the end of period	$ (644)

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Income Taxes (Details 4) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Tax credit carryforwards
Interest and penalty expense recognized related to unrecognized tax benefits	$ 200,000	$ 200,000	$ 200,000
Reconciliation of the beginning and ending balance of unrecognized tax benefits
Balance at beginning of year	7,645,000	7,719,000
Increases in unrecognized tax benefits as a result of tax positions taken during a prior period	92,000	324,000
Increases in unrecognized tax benefits as a result of tax positions taken during the current period	223,000
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations		(398,000)
Balance at end of year	7,960,000	7,645,000	7,719,000
Recorded as other long-term liability	2,328,000	2,343,000
Recorded as a decrease in deferred tax assets and offsetting valuation allowance	5,632,000	5,302,000
Unrecognized tax benefits	7,960,000	7,645,000	7,719,000
Research and development and other tax credit carryforwards
Tax credit carryforwards
Tax credit carryforwards	18,100,000
Foreign
Tax credit carryforwards
Tax credit carryforwards	$ 3,900,000

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Assets Manufactured for Internal Use (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended			9 Months Ended	15 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2013	Dec. 31, 2014
Change in estimate of useful life of assets manufactured for internal use
Profit before tax									$ (10,167)	$ (16,104)	$ (32,388)
Net profit	164	(4,704)	(6,900)	174	614	(4,750)	(4,019)	(8,988)	(11,266)	(17,144)	(34,034)
Assets Manufactured for Internal Use | Useful life of assets manufactured for internal use | Adjustment
Change in estimate of useful life of assets manufactured for internal use
Useful life												5 years	10 years
Profit before tax									300	100
Net profit									$ 300	$ 100

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Summary of Significant Accounting Policies (Details 2)	12 Months Ended
	Dec. 31, 2014 item	Dec. 31, 2013 item	Dec. 31, 2012 item
Revenue | Customer concentration risk
Concentration of risk
Number of customers	2	1	1
Revenue | Customer concentration risk | Ten largest customers
Concentration of risk
Number of customers	10	10	10
Percentage of concentration risk	68.10%	69.10%	70.60%
Revenue | Customer concentration risk | One customer
Concentration of risk
Percentage of concentration risk	17.40%	15.50%	18.20%
Revenue | Customer concentration risk | Second customer
Concentration of risk
Percentage of concentration risk	12.30%
Consolidated accounts receivable | Credit concentration risk
Concentration of risk
Number of customers	2	3
Consolidated accounts receivable | Credit concentration risk | One customer
Concentration of risk
Percentage of concentration risk	21.70%	23.20%
Consolidated accounts receivable | Credit concentration risk | Second customer
Concentration of risk
Percentage of concentration risk	20.40%	14.20%
Consolidated accounts receivable | Credit concentration risk | Third customer
Concentration of risk
Percentage of concentration risk		13.60%

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Inventories, net (Tables)

12 Months Ended

Dec. 31, 2014

Inventories, net

Schedule of components of inventories

	December 31,
	2014		2013
	(in thousands)
Raw materials	$	65,723	$	56,942
Work in process		22,358		27,462
Finished goods		15,982		11,385
	$	104,063	$	95,789

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Schedule II Valuation and Qualifying Accounts (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Allowance for doubtful accounts and returns
Changes in Valuation and Qualifying Accounts
Balance at Beginning of Period	$ 404	$ 305	$ 411
Charged to Costs and Expenses		96
Deductions			(112)
Other	(14)	3	6
Balance at End of Period	390	404	305
Inventory reserves
Changes in Valuation and Qualifying Accounts
Balance at Beginning of Period	25,091	33,601	22,778
Charged to Costs and Expenses	1,003	2,562	14,492
Deductions	(2,452)	(10,913)	(4,819)
Other		(159)	1,150
Balance at End of Period	$ 23,642	$ 25,091	$ 33,601

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Product Warranty (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Product Warranty
Product warranty period	1 year
Changes in product warranty liability
Balance at the beginning of the period	$ 1,428	$ 1,801	$ 3,697
Warranties issued during the period	1,743	2,240	3,042
Settlements made during the period	(2,096)	(1,515)	(3,010)
Changes in estimate of liability for pre-existing warranties during the period	451	(1,098)	(1,928)
Balance at the end of the period	1,526	1,428	1,801
Product warranty classification
Amount classified as current	1,352	1,316	1,700
Amount classified within other long-term liabilities	174	112	101
Total warranty liability	$ 1,526	$ 1,428	$ 1,801

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Quarterly Results of Operations (unaudited) (Details) (USD $)	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Quarterly Results of Operations (unaudited)
Revenue	$ 62,530,000	$ 38,531,000	$ 41,150,000	$ 60,840,000	$ 58,574,000	$ 48,831,000	$ 47,501,000	$ 40,726,000	$ 203,051,000	$ 195,632,000	$ 203,385,000
Gross profit	18,796,000	15,144,000	14,484,000	21,740,000	21,280,000	16,976,000	16,737,000	12,943,000	70,164,000	67,935,000	58,171,000
Net loss	164,000	(4,704,000)	(6,900,000)	174,000	614,000	(4,750,000)	(4,019,000)	(8,988,000)	(11,266,000)	(17,144,000)	(34,034,000)
Net income (loss) per share basic and diluted (in dollars per share)	$ 0.00	$ (0.04)	$ (0.06)	$ 0.00	$ 0.01	$ (0.04)	$ (0.04)	$ (0.08)
Quarterly charges and expenses
Inventory reserves	800,000	800,000	200,000						800,000
Restructuring charges		2,300,000	100,000	200,000			400,000	1,800,000	2,621,000	2,334,000	4,169,000
Income related to an uncertain tax position in a certain foreign jurisdiction					400,000
Write off of deferred tax assets in foreign jurisdictions						400,000
Gain on sale of dry strip assets and intellectual property										1,167,000	7,904,000
Charges to cost of sales relating to inventory								2,100,000	1,817,000	2,562,000	14,492,000
Dry strip assets and intellectual property
Quarterly charges and expenses
Gain on sale of dry strip assets and intellectual property							$ 800,000	$ 400,000		$ 1,200,000	$ 7,900,000

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Business Segment and Geographic Region Information

12 Months Ended

Dec. 31, 2014

Business Segment and Geographic Region Information

Business Segment and Geographic Region Information

Note 17. Business Segment and Geographic Region Information

        The Company operates in one business segment, which is the manufacture of capital equipment for the semiconductor manufacturing industry. The principal market for semiconductor manufacturing equipment is semiconductor manufacturers. Substantially all sales are made directly by the Company to its customers located in the United States, Europe and Asia Pacific.

        The Company's ion implantation systems product line includes high current, medium current and high energy implanters. Other products include legacy dry strip equipment, curing systems, and thermal processing systems. In addition to new equipment, the Company provides post-sales equipment service and support, including spare parts, equipment upgrades, used equipment, maintenance services and customer training.

        Revenue by product lines is as follows:

	Years ended December 31,
	2014		2013		2012
	(in thousands)
Ion implantation systems, services, and royalties	$	183,148	$	164,030	$	156,090
Other systems and services		19,903		31,602		47,295
	$	203,051	$	195,632	$	203,385

        Revenue and long-lived assets by geographic region, based on the physical location of the operation recording the sale or the asset, are as follows:

	Revenue		Long-Lived Assets
	(in thousands)
2014
United States	$	126,255	$	40,001
Europe		29,140		—
Asia Pacific		47,656		299
	$	203,051	$	40,300
2013
United States	$	116,969	$	44,424
Europe		27,933		—
Asia Pacific		50,730		480
	$	195,632	$	44,904
2012
United States	$	132,159	$	43,440
Europe		27,636		—
Asia Pacific		43,590		752
	$	203,385	$	44,192

        Long-lived assets consist of property, plant and equipment, net and assets manufactured for internal use. Operations in Europe and Asia Pacific consist of sales and service organizations.

        International revenue, which includes export sales from U.S. manufacturing facilities to foreign customers and sales by foreign subsidiaries and branches, was $162.4 million (80.0% of total revenue), $149.4 million (76.4% of total revenue) and $142.8 million (70.2% of total revenue) in 2014, 2013 and 2012, respectively.

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Restricted Cash (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Restricted Cash
Restricted cash	$ 825
Long-term restricted cash		$ 825

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Business Segment and Geographic Region Information (Tables)

12 Months Ended

Dec. 31, 2014

Business Segment and Geographic Region Information

Schedule of revenue by product lines

	Years ended December 31,
	2014		2013		2012
	(in thousands)
Ion implantation systems, services, and royalties	$	183,148	$	164,030	$	156,090
Other systems and services		19,903		31,602		47,295
	$	203,051	$	195,632	$	203,385

Schedule of revenue and long-lived assets by geographic region

	Revenue		Long-Lived Assets
	(in thousands)
2014
United States	$	126,255	$	40,001
Europe		29,140		—
Asia Pacific		47,656		299
	$	203,051	$	40,300
2013
United States	$	116,969	$	44,424
Europe		27,933		—
Asia Pacific		50,730		480
	$	195,632	$	44,904
2012
United States	$	132,159	$	43,440
Europe		27,636		—
Asia Pacific		43,590		752
	$	203,385	$	44,192

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Product Warranty (Tables)

12 Months Ended

Dec. 31, 2014

Product Warranty

Schedule of product warranty liability

	Years Ended December 31,
	2014			2013			2012
	(in thousands)
Balance at January 1 (beginning of year)	$	1,428		$	1,801		$	3,697
Warranties issued during the period		1,743			2,240			3,042
Settlements made during the period		(2,096	)		(1,515	)		(3,010	)
Changes in estimate of liability for pre-existing warranties during the period		451			(1,098	)		(1,928	)
Balance at December 31 (end of year)	$	1,526		$	1,428		$	1,801
Amount classified as current	$	1,352		$	1,316		$	1,700
Amount classified within other long-term liabilities		174			112			101
Total warranty liability	$	1,526		$	1,428		$	1,801

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Inventories, net (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2014	Jun. 30, 2014
Inventories, net
Raw materials	$ 65,723,000	$ 56,942,000
Work in process	22,358,000	27,462,000
Finished goods (completed systems)	15,982,000	11,385,000
Inventories, net	104,063,000	95,789,000
Inventories, net additional information
Inventory reserves	800,000			800,000	200,000
Charges to cost of sales due to below normal production capacity	1,000,000	600,000	2,600,000
Charges to cost of sales due to lower of cost or market value	800,000	700,000	500,000
Inventory reserves
Inventories, net additional information
Decrease in inventory reserves	2,452,000	10,913,000	4,819,000
Decrease in inventory reserves due to obsolescence and excess inventory	1,300,000
Reduction in reserve due to sales of previously fully reserved inventory	1,100,000
Provision charge to reserve	1,003,000	2,562,000	14,492,000
Inventory reserves	$ 23,600,000	$ 25,100,000

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Income Taxes (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income (loss) before income taxes
United States	$ (11,987,000)	$ (18,998,000)	$ (37,682,000)
Foreign	1,820,000	2,894,000	5,294,000
Loss before income taxes	(10,167,000)	(16,104,000)	(32,388,000)
Current:
State	59,000	84,000	82,000
Foreign	780,000	641,000	738,000
Total current	839,000	725,000	820,000
Deferred:
Foreign	260,000	315,000	826,000
Total deferred	260,000	315,000	826,000
Income tax provision	1,099,000	1,040,000	1,646,000
Reconciliations of income taxes at the United States Federal statutory rate to the effective income tax rate
Income tax benefit at the United States statutory rate	(3,558,000)	(5,636,000)	(11,336,000)
State income taxes	38,000	55,000	53,000
Unrecognized tax benefits	184,000	(293,000)	(832,000)
Effect of change in valuation allowance	(6,835,000)	5,975,000	12,662,000
Foreign income tax rate differentials	259,000	(1,244,000)	(788,000)
Unremitted earnings of foreign subsidiaries	(758,000)	961,000
Foreign dividend			383,000
Stock options	686,000	450,000	1,298,000
Deemed distribution from foreign subsidiaries	607,000	316,000	149,000
Discrete items, net	9,143,000
Other, net	1,333,000	456,000	57,000
Income tax provision	1,099,000	1,040,000	1,646,000
Significant components of current deferred income taxes
Accrued compensation	65,000	43,000
Inventories	9,808,000	16,540,000
Warranty	486,000	591,000
Other	1,620,000	2,671,000
Deferred taxes, gross	11,979,000	19,845,000
Valuation allowance	(10,975,000)	(18,059,000)
Deferred taxes, net	1,004,000	1,786,000
Significant components of long-term deferred income taxes
Federal net operating loss carryforwards	105,119,000	104,370,000
State net operating loss carryforwards	2,210,000	2,250,000
Foreign net operating loss carryforwards	1,280,000	1,421,000
Unremitted earnings of foreign subsidiaries	(8,800,000)	(9,661,000)
Intangible assets	383,000	532,000
Property, plant and equipment	4,548,000	4,796,000
Stock compensation	5,198,000	4,896,000
Warranty		(56,000)
Other	(2,328,000)	(2,406,000)
Deferred taxes, gross	129,572,000	129,499,000
Valuation allowance	(128,982,000)	(129,409,000)
Deferred taxes, net	590,000	90,000
Deferred tax assets	141,600,000
United States
Tax credit carryforwards
Tax credit carryforwards	16,669,000	17,814,000
State
Tax credit carryforwards
Tax credit carryforwards	$ 5,293,000	$ 5,543,000

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Stock Award Plans and Stock Based Compensation (Details) (USD $)	12 Months Ended			32 Months Ended	36 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2014	Dec. 31, 2014	May 02, 2012
Stock award plans and stock-based compensation
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001		0.001	0.001	$ 0.001
Stock-Based Compensation Expense
Forfeiture rate (as a percent)	5.00%	5.00%	5.00%
Stock-based compensation expense (in dollars)	$ 4,800,000	$ 4,300,000	$ 3,900,000
Restricted stock and restricted stock units
Shares/units
Outstanding at the beginning of the period (in shares)	23,000
Granted (in shares)	90,000
Vested (in shares)	(10,000)
Outstanding at the end of the period (in shares)	103,000			103,000	103,000
Weighted-Average Grant Date Fair Value per Share
Outstanding at the beginning of the period (in dollars per share)	$ 1.39
Granted (in dollars per share)	$ 2.17
Vested (in dollars per share)	$ 1.45
Outstanding at the end of the period (in dollars per share)	$ 2.07			2.07	2.07
Stock Options
Estimated weighted-average assumptions
Weighted-average expected volatility (as a percent)		98.10%
Weighted-average expected term		4 years 8 months 12 days
Risk-free interest rate, minimum (as a percent)	1.19%	0.70%	0.45%
Risk-free interest rate, maximum (as a percent)	1.67%	1.40%	1.37%
Expected dividend yield (as a percent)	0.00%	0.00%	0.00%
Options
Outstanding at the beginning of the period (in shares)	22,299,000
Granted (in shares)	3,976,000
Exercised (in shares)	(2,418,000)
Canceled (in shares)	(991,000)
Expired (in shares)	(1,162,000)
Outstanding at the end of the period (in shares)	21,704,000	22,299,000		21,704,000	21,704,000
Exercisable (in shares)	12,461,000			12,461,000	12,461,000
Options Vested or Expected to Vest at the end of the period (in shares)	21,102,000			21,102,000	21,102,000
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 1.89
Granted (in dollars per share)	$ 1.81
Exercised (in dollars per share)	$ 1.20
Canceled (in dollars per share)	$ 1.64
Expired (in dollars per share)	$ 8.28
Outstanding at the end of the period (in dollars per share)	$ 1.62	$ 1.89		1.62	1.62
Exercisable at the end of the period (in dollars per share)	$ 1.55			1.55	1.55
Options Vested or Expected to Vest at the end of the period (in dollars per share)	$ 1.61			1.61	1.61
Weighted Average Remaining Contractual Term
Outstanding at the end of the period	5 years 4 months 28 days
Exercisable at the end of the period	5 years 1 month 2 days
Options Vested or Expected to Vest at the end of the period	5 years 5 months 19 days
Aggregate Intrinsic Value
Outstanding at the end of the period (in dollars)	22,238,000			22,238,000	22,238,000
Exercisable at the end of the period (in dollars)	14,347,000			14,347,000	14,347,000
Options Vested or Expected to Vest at the end of the period (in dollars)	13,448,000			13,448,000	13,448,000
Additional disclosure
Total intrinsic value of options exercised (in dollars)	2,400,000	1,400,000	900,000
Total fair value of stock options vested (in dollars)	4,700,000	3,800,000	4,100,000
Total forfeiture adjusted unrecognized compensation cost (in dollars)	8,500,000			8,500,000	8,500,000
Weighted-average period over which unrecognized compensation cost is expected to be recognized	2 years 7 months 13 days
Stock Options | Minimum
Estimated weighted-average assumptions
Weighted-average expected volatility (as a percent)	60.59%		97.80%
Weighted-average expected term	3 years 9 months		3 years 9 months 18 days
Stock Options | Maximum
Estimated weighted-average assumptions
Weighted-average expected volatility (as a percent)	98.40%		113.55%
Weighted-average expected term	4 years 8 months 16 days		6 years 1 month 6 days
Stock Options | Employees
Stock award plans and stock-based compensation
Vesting period	4 years
Period after termination to exercise awards that were vested	90 days
Period after termination to retiring employees to exercise vested awards	1 year
Stock Options | Non-employee members of Board of Directors
Stock award plans and stock-based compensation
Vesting period	6 months
Restricted Stock
Shares/units
Granted (in shares)	0
Vested (in shares)	0
2000 Stock Plan
Stock award plans and stock-based compensation
Awards granted (in shares)				0
Number of shares of common stock available for future grant	0			0	0
2000 Stock Plan | Stock Options
Stock award plans and stock-based compensation
Expiration period	10 years
Employee stock purchase plan
Stock award plans and stock-based compensation
Number of shares of common stock available for future grant	1,600,000			1,600,000	1,600,000
Employee Stock Purchase Plan
Purchase price as a percentage of the market value of a common stock on the day the stock is purchased	85.00%
Offering period over which compensation expense is amortized	6 months
Number of shares purchased under the plan	200,000	200,000	300,000
Stock-Based Compensation Expense
Stock-based compensation expense (in dollars)	$ 100,000	$ 100,000	$ 100,000
Employee stock purchase plan | Maximum
Employee Stock Purchase Plan
Payroll deductions as a percentage of employee's salary	10.00%
2012 Equity Incentive Plan
Stock award plans and stock-based compensation
Number of shares of common stock originally reserved for future grant						7,100,000
Number of shares of common stock available for future grant	2,800,000			2,800,000	2,800,000
Estimated weighted-average assumptions
Weighted-average expected term	7 years
2012 Equity Incentive Plan | Stock Options
Stock award plans and stock-based compensation
Expiration period	7 years
2012 Equity Incentive Plan | Restricted Stock
Shares/units
Granted (in shares)					0

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Summary of Significant Accounting Policies (Details 3) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Revenue recognition
Maximum deferral period from shipment for recognition of systems revenue and related costs									12 months
Anti dilutive shares excluded from calculation of net loss per share									4,663,421	3,547,578	1,563,417
Net loss per share
Net loss attributable to common stockholders (in dollars)	$ 164	$ (4,704)	$ (6,900)	$ 174	$ 614	$ (4,750)	$ (4,019)	$ (8,988)	$ (11,266)	$ (17,144)	$ (34,034)
Weighted average common shares outstanding used in computing basic net loss per share									111,450,000	108,869,000	107,619,000
Weighted average common shares outstanding used in computing diluted net loss per share									111,450,000	108,869,000	107,619,000
Net loss per share
Basic (in dollars per share)									$ (0.10)	$ (0.16)	$ (0.32)
Diluted (in dollars per share)									$ (0.10)	$ (0.16)	$ (0.32)

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Nature of Business

12 Months Ended

Dec. 31, 2014

Nature of Business

Nature of Business

Note 1. Nature of Business

        Axcelis Technologies, Inc. ("Axcelis" or the "Company") was incorporated in Delaware in 1995, and is a worldwide producer of ion implantation and other processing equipment used in the fabrication of semiconductor chips in the United States, Europe and Asia. In addition, the Company provides extensive aftermarket service and support, including spare parts, equipment upgrades, used equipment and maintenance services to the semiconductor industry.

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Stockholders' Equity (Details) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Stockholders' Equity
Number of shares of preferred stock that the entity is authorized to issue	30,000	30,000
Preferred stock, shares outstanding	0	0

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Taxes

Schedule of loss before income taxes

	Years ended December 31,
	2014			2013			2012
	(in thousands)
United States	$	(11,987	)	$	(18,998	)	$	(37,682	)
Foreign		1,820			2,894			5,294
Loss before income taxes	$	(10,167	)	$	(16,104	)	$	(32,388	)

Schedule of provision for income taxes

	Years ended December 31,
	2014		2013		2012
	(in thousands)
Current:
United States
Federal	$	—	$	—	$	—
State		59		84		82
Foreign		780		641		738
Total current		839		725		820
Deferred:
Foreign		260		315		826
Total deferred		260		315		826
Income tax provision	$	1,099	$	1,040	$	1,646

Schedule of reconciliations of income taxes at the United States Federal statutory rate to the effective income tax rate

	Years ended December 31,
	2014			2013			2012
	(in thousands)
Income tax benefit at the United States statutory rate	$	(3,558	)	$	(5,636	)	$	(11,336	)
State income taxes		38			55			53
Unrecognized tax benefits		184			(293	)		(832	)
Effect of change in valuation allowance		(6,835	)		5,975			12,662
Foreign income tax rate differentials		259			(1,244	)		(788	)
Unremitted earnings of foreign subsidiaries		(758	)		961			—
Foreign dividend		—			—			383
Stock options		686			450			1,298
Deemed distribution from foreign subsidiaries		607			316			149
Discrete items, net		9,143			—			—
Other, net		1,333			456			57
Income tax provision	$	1,099		$	1,040		$	1,646

Schedule of significant components of current and long-term deferred income taxes

	As of December 31,
	2014						2013
	Current			Long Term			Current			Long Term
	(in thousands)
Federal net operating loss carryforwards	$	—		$	105,119		$	—		$	104,370
State net operating loss carryforwards		—			2,210			—			2,250
Foreign net operating loss carryforwards		—			1,280			—			1,421
Federal tax credit carryforwards		—			16,669			—			17,814
State tax credit carryforwards		—			5,293			—			5,543
Unremitted earnings of foreign subsidiaries		—			(8,800	)		—			(9,661	)
Intangible assets		—			383			—			532
Property, plant and equipment		—			4,548			—			4,796
Accrued compensation		65			—			43			—
Inventories		9,808			—			16,540			—
Stock compensation		—			5,198			—			4,896
Warranty		486			—			591			(56	)
Other		1,620			(2,328	)		2,671			(2,406	)
Deferred taxes, gross		11,979			129,572			19,845			129,499
Valuation allowance		(10,975	)		(128,982	)		(18,059	)		(129,409	)
Deferred taxes, net	$	1,004		$	590		$	1,786		$	90

Schedule of reconciliation of the beginning and ending balance of unrecognized tax benefits

	2014		2013
	(in thousands)
Balance at beginning of year	$	7,645	$	7,719
Increases in unrecognized tax benefits as a result of tax positions taken during a prior period		92		324
Decreases in unrecognized tax benefits related to settlements with tax authorities		—		—
Increases in unrecognized tax benefits as a result of tax positions taken during the current period		223		—
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations		—		(398	)
Balance at end of year	$	7,960	$	7,645
Recorded as other long-term liability	$	2,328	$	2,343
Recorded as a decrease in deferred tax assets and offsetting valuation allowance		5,632		5,302
	$	7,960	$	7,645

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Schedule II-Valuation and Qualifying Account

12 Months Ended

Dec. 31, 2014

Schedule II-Valuation and Qualifying Accounts

Schedule II-Valuation and Qualifying Accounts

Schedule II—Valuation and Qualifying Accounts
Axcelis Technologies, Inc.
(In thousands)

	Balance at Beginning of Period		Charged to Costs and Expenses		Deductions(**)			Other(*)			Balance at End of Period
Year Ended December 31, 2014
Allowance for doubtful accounts and returns	$	404	$	—	$	—		$	(14	)	$	390
Reserve for excess and obsolete inventory(**)		25,091		1,003		(2,452	)		—			23,642
Year Ended December 31, 2013
Allowance for doubtful accounts and returns	$	305	$	96	$	—		$	3		$	404
Reserve for excess and obsolete inventory(**)		33,601		2,562		(10,913	)		(159	)		25,091
Year Ended December 31, 2012
Allowance for doubtful accounts and returns	$	411	$	—	$	(112	)	$	6		$	305
Reserve for excess and obsolete inventory		22,778		14,492		(4,819	)		1,150			33,601

(*)	Represents foreign currency translation adjustments.
(**)	Deductions include the disposal and sale of fully reserved inventory.

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Subsequent Events

12 Months Ended

Dec. 31, 2014

Subsequent Events.

Subsequent Events

Note 20. Subsequent Events

Sale of Corporate Headquarters

        On January 30, 2015, the Company sold its corporate headquarters to Beverly Property Owner LLC, an affiliate of Middleton Partners, based in Northbrook, Illinois, for the purchase price of $49 million. As part of the sale, the Company also entered into a 22-year lease agreement with Beverly Properties where the Company will pay annual rent of $4.7 million for the first year, with increasing annual rent payments thereafter. In conjunction with the sale, the Company paid off the outstanding Term Loan of $14.5 million and all accrued interest as well as a 2.0% prepayment penalty. The Company posted a security deposit of $5.9 million in the form of an irrevocable letter of credit at the time of the closing.

        The Company expects that the transaction will be accounted for as a financing arrangement. As such, at the inception of the arrangement, the Company expects to record a financing obligation in the amount of $49.0 million and the property will be defined as an asset to remain on its books. The Company netted $33.1 million from the proceeds of the sale leaseback transaction.

Executive Separation Pay Agreements

        On March 5, 2015, the Company entered into Executive Separation Pay Agreements with each of its executive officers other than Ms. Puma, which provide for twelve month's separation pay in the event of a termination without cause. A form of the Executive Separation Pay Agreement is filed as an Exhibit to this Form 10-K.

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Restructuring Charges (Details) (USD $)	3 Months Ended					12 Months Ended			3 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Mar. 31, 2015
Changes in restructuring liability
Severance and related costs	$ 2,300,000	$ 100,000	$ 200,000	$ 400,000	$ 1,800,000	$ 2,621,000	$ 2,334,000	$ 4,169,000
Severance
Restructuring charges
Stock option modification						100,000
Changes in restructuring liability
Balance at the beginning of the period			43,000		659,000	43,000	659,000	171,000
Severance and related costs						2,565,000	2,334,000	4,169,000
Cash payments						(2,127,000)	(2,950,000)	(3,551,000)
Non-cash items								(130,000)
Balance at the end of the period						481,000	43,000	659,000
Severance | Forecast
Changes in restructuring liability
Cash payments									$ (500,000)

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Quarterly Results of Operations (unaudited) (Tables)

12 Months Ended

Dec. 31, 2014

Quarterly Results of Operations (unaudited)

Schedule of quarterly results of operations

	Dec. 31, 2014(1)		Sept. 30, 2014(2)			June 30, 2014(3)			March 31, 2014(4)		Dec. 31, 2013(5)		Sept. 30, 2013(6)			June 30, 2013(7)			March 31, 2013(8)
	(in thousands, except per share data)
Revenue	$	62,530	$	38,531		$	41,150		$	60,840	$	58,574	$	48,831		$	47,501		$	40,726
Gross profit		18,796		15,144			14,484			21,740		21,280		16,976			16,737			12,943
Net income (loss)		164		(4,704	)		(6,900	)		174		614		(4,750	)		(4,019	)		(8,988	)
Net income (loss) per share basic and diluted	$	0.00	$	(0.04	)	$	(0.06	)	$	0.00	$	0.01	$	(0.04	)	$	(0.04	)	$	(0.08	)

(1)	Net income includes a $0.8 million charge to inventory reserves.
(2)	Net loss includes a $0.8 million charge to inventory reserves and a $2.3 million restructuring charge.
(3)	Net loss includes a $0.2 million charge to inventory reserves and a $0.1 million restructuring charge.
(4)	Net income includes a $0.2 million restructuring charge.
(5)	Net income includes $0.4 million of income related to the expiration of an uncertain tax position in a foreign jurisdiction.
(6)	Net loss includes $0.4 million related to the write off of certain deferred tax assets in foreign jurisdictions.
(7)	Net loss includes $0.4 million in restructuring charges, and $0.8 million from the gain on sale of dry strip assets and intellectual property.
(8)	Gross profit and net loss includes a $2.1 million charge to excess and obsolete inventory. Net loss includes $1.8 million in restructuring charges, and $0.4 million from the gain on sale of dry strip assets and intellectual property.

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2014

Summary of Significant Accounting Policies

Basis of Presentation

(a)   Basis of Presentation

        The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned, controlled subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

        Events occurring subsequent to December 31, 2014 have been evaluated for potential recognition or disclosure in the consolidated financial statements.

Use of Estimates

(b)   Use of Estimates

        The preparation of these consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. On an ongoing basis, the Company evaluates its estimates and judgments, including those related to revenue recognition, the realizable value of inventories, valuing share-based compensation instruments and valuation allowances for deferred tax assets. Actual amounts could differ from these estimates. Changes in estimates are recorded in the period in which they become known.

Foreign Currency

(c)   Foreign Currency

        The Company has determined the functional currency for substantially all operations outside the United States is the local currency. Financial statements for these operations are translated into United States dollars at year-end rates as to assets and liabilities and average exchange rates during the year as to revenue and expenses. The resulting translation adjustments are recorded in stockholders' equity as an element of accumulated other comprehensive income (loss). Foreign currency transaction gains and losses are included in other income (expense) in the Consolidated Statements of Operations.

        For the year ended December 31, 2014 the Company realized $1.8 million of foreign exchange gains. For the year ended December 31, 2013 and 2012, the Company realized $0.3 million and $0.9 million of foreign exchange losses, respectively.

Cash and Cash Equivalents

(d)   Cash and Cash Equivalents

        Cash and cash equivalents consist of cash on hand and highly liquid investments with original maturities of ninety days or less. Cash equivalents consist primarily of money market securities and certificates of deposit. Cash equivalents are carried on the balance sheet at fair market value.

Inventories

(e)   Inventories

        Inventories are carried at lower of cost, determined using the first-in, first-out ("FIFO") method, or market. The Company periodically reviews its inventories and makes provisions as necessary for estimated obsolescence or damaged goods to ensure values approximate lower of cost or market. The amount of such markdowns is equal to the difference between cost of inventory and the estimated market value based upon assumptions about future demands, selling prices, and market conditions.

        The Company records an allowance for estimated excess inventory. The allowance is determined using management's assumptions of materials usage, based on estimates of demand and market conditions. If actual market conditions become less favorable than those projected by management, additional inventory write-downs may be required.

Property, Plant and Equipment

(f)    Property, Plant and Equipment

        Property and equipment are stated at cost, less accumulated depreciation and amortization.

        Depreciation and amortization are recorded using the straight-line method over the estimated useful lives of the related assets as follows:

Asset Classification	Estimated Useful Life
Buildings	40 years
Machinery and equipment	3 to 10 years

        Repairs and maintenance costs are expensed as incurred. Expenditures for renewals and betterments are capitalized.

Impairment of Long-Lived Assets

(g)   Impairment of Long-Lived Assets

        The Company records impairment losses on long-lived assets when events and circumstances indicate that these assets might not be recoverable. Recoverability is measured by a comparison of the assets' carrying amount to their expected future undiscounted net cash flows. If such assets are considered to be impaired, the impairment is measured based on the amount by which the carrying value exceeds its fair value.

        The Company completed a test for recoverability due to indicators of impairment present during interim periods in 2014, 2013 and 2012 respectively. Results of tests for recoverability performed indicated that the carrying value of the asset group was recoverable for all periods presented.

        The Company did not record an impairment charge for the years ended December 31, 2014, 2013, or 2012.

        Future actual performance could be materially different from our current forecasts, which could impact future estimates of undiscounted cash flows and may result in the impairment of the carrying amount of the long-lived assets in the future. This could be caused by strategic decisions made in response to economic and competitive conditions, the impact of the economic environment on our customer base, or a material adverse change in the Company's relationships with significant customers. The Company performs an impairment analysis when circumstances or events warrant.

Concentration of Risk and Off-Balance Sheet Risk

(h)   Concentration of Risk and Off-Balance Sheet Risk

        Financial instruments that potentially subject the Company to concentrations of credit risk are principally cash equivalents and accounts receivable. The Company's cash equivalents are principally maintained in an investment grade money-market fund.

        The Company has no significant off-balance-sheet risk such as foreign exchange contracts, option contracts or other foreign hedging arrangements.

        The Company's exposure to market risk for changes in interest rates relates primarily to cash equivalents. The primary objective of the Company's investment activities is to preserve principal while maximizing yields without significantly increasing risk. This is accomplished by investing in marketable high investment grade securities. The Company does not use derivative financial instruments to manage its investment portfolio and does not expect operating results or cash flows to be affected to any significant degree by any change in market interest rates.

        The Company performs ongoing credit evaluations of its customers' financial condition and generally requires no collateral to secure accounts receivable. For selected overseas sales, the Company requires customers to obtain letters of credit before product is shipped. The Company maintains an allowance for doubtful accounts based on its assessment of the collectability of accounts receivable. The Company reviews the allowance for doubtful accounts monthly. The Company does not have any off-balance sheet credit exposure related to its customers.

        The Company's customers consist of semiconductor manufacturers located throughout the world and net sales to its ten largest customers accounted for 68.1%, 69.1% and 70.6% of revenue in 2014, 2013 and 2012, respectively.

        For the year ended December 31, 2014, the Company had two customers representing 17.4% and 12.3% of total revenue, respectively. For the years ended December 2013 and 2012, the Company had one customer representing 15.5% and 18.2% of total revenue, respectively, for each of the periods presented.

        As of December 31, 2014, the Company had two customers account for 21.7% and 20.4% of consolidated accounts receivable, respectively. As of December 31, 2013, the Company had three customers account for 23.2%, 14.2% and 13.6% of consolidated accounts receivable, respectively.

        Some of the components and sub-assemblies included in the Company's products are obtained either from a sole source or a limited group of suppliers. Disruption to the Company's supply source, resulting either from depressed economic conditions or other factors, could affect its ability to deliver products to its customers.

Revenue Recognition

(i)    Revenue Recognition

        The Company's revenue recognition policy involves significant judgment by management. As described below, the Company considers a broad array of facts and circumstances in determining when to recognize revenue, including contractual obligations to the customer, the complexity of the customer's post-delivery acceptance provisions, payment history, customer creditworthiness and the installation process. In the future, if the post-delivery acceptance provisions and installation process become more complex or result in a materially lower rate of acceptance, the Company may have to revise its revenue recognition policy, which could delay the timing of revenue recognition.

        The Company's system sales transactions are made up of multiple elements, including the system itself and elements that are not delivered simultaneously with the system. These undelivered elements might include a combination of installation services, extended warranty and support and spare parts, all of which are covered generally by a single sales price.

        The Company's system revenue arrangements with multiple elements are divided into separate units of accounting if specified criteria are met, including whether the delivered element has stand-alone value to the customer. If the criteria are met, then the consideration received is allocated among the separate units based on their relative selling price, and the revenue is recognized separately for each of the separate units.

        The Company determines selling price for each unit of accounting (element) using vendor specific objective evidence (VSOE) or third-party evidence (TPE), if they exist, otherwise, the Company uses best estimated selling price (BESP). The Company generally expects that it will not be able to establish TPE due to the nature of its products, and, as such, the Company typically will determine selling price using VSOE or BESP.

        Where required, the Company determines BESP for an individual element based on consideration of both market and Company-specific factors, including the selling price and profit margin for similar products, the cost to produce the deliverable and the anticipated margin on that deliverable and the characteristics of the varying markets in which the deliverable is sold.

        Systems are not sold separately and VSOE or TPE is not available for the systems element. Therefore the selling price associated with systems is based on BESP. The allocated value for installation in the arrangement includes the greater of (i) the relative selling price of the installation or (ii) the portion of the sales price that will not be received until the installation is completed (the "retention"). The selling price of installation is based upon the fair value of the service performed, including labor, which is based upon the estimated time to complete the installation at hourly rates, and material components, both of which are sold separately. The selling price of all other elements (extended warranty for support, spare parts and labor) is based upon the price charged when these elements are sold separately, or VSOE.

        Product revenue for products which have demonstrated market acceptance, is generally recognized upon shipment provided title and risk of loss has passed to the customer, evidence of an arrangement exists, prices are contractually fixed or determinable, collectability is reasonably assured through historical collection results and regular credit evaluations, and there are no uncertainties regarding customer acceptance. Revenue from installation services is recognized at the time acceptance has occurred, as defined in the sales documentation or, for certain customers, when both acceptance has occurred and retention payment has been received. Revenue for other elements is recognized at the time products are shipped or the related services are performed.

        The Company generally recognizes revenue for systems which have demonstrated market acceptance at the time of shipment because the customer's post-delivery acceptance provisions and installation process have been established to be routine, commercially inconsequential and perfunctory. The Company believes the risk of failure to complete a system installation is remote.

        For initial shipments of systems with new technologies or in the small number of instances where the Company is unsure of meeting the customer's specifications or obtaining customer acceptance upon shipment of the system, it will defer the recognition of systems revenue and related costs until written customer acceptance of the system is obtained. This deferral period is generally within twelve months of shipment.

        Revenue related to maintenance and service contracts is recognized ratably over the duration of the contracts, or based on parts usage, where appropriate. Revenue related to service hours is recognized when the services are performed.

        Product revenue includes revenue from system sales, sales of spare parts, the spare parts component of maintenance and service contracts and product upgrades. Services revenue includes the labor component of maintenance and service contract amounts charged for on-site service personnel.

        Axcelis reports revenue net of any taxes collected from customers and remitted to governmental authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority.

Shipping and Handling Costs

(j)    Shipping and Handling Costs

        Shipping and handling costs are included in cost of revenue.

Stock-Based Compensation

(k)   Stock-Based Compensation

        The Company generally recognizes compensation expense for all share-based payments to employees and directors, including grants of employee stock options, based on the grant-date fair value of those share-based payments using the Black-Scholes option pricing model, adjusted for expected forfeitures. Other valuation models may be utilized in the limited circumstances where awards with market-based vesting considerations, such as the price of the Company's common stock, are granted. Stock-based compensation expense is recognized ratably over the requisite service period.

        See Note 13 for additional information relating to stock-based compensation.

Income Taxes

(l)    Income Taxes

        The Company records income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards.

        The Company's consolidated financial statements contain certain deferred tax assets which have arisen primarily as a result of operating losses, as well as other temporary differences between financial and tax accounting. The Company establishes a valuation allowance if the likelihood of realization of the deferred tax assets is reduced based on an evaluation of objective verifiable evidence. Significant management judgment is required in determining the Company's provision for income taxes, the Company's deferred tax assets and liabilities and any valuation allowance recorded against those net deferred tax assets. The Company evaluates the weight of all available evidence to determine whether it is more likely than not that some portion or all of the net deferred income tax assets will not be realized.

        Income taxes include the largest amount of tax benefit for an uncertain tax position that is more likely than not to be sustained upon audit based on the technical merits of the tax position. Settlements with tax authorities, the expiration of statutes of limitations for particular tax positions, or obtaining new information on particular tax positions may cause a change to the effective tax rate. The Company recognizes accrued interest related to unrecognized tax benefits as interest expense and penalties as operating expense in the consolidated statements of operations.

Computation of Net Loss per Share

(m)  Computation of Net Loss per Share

        Basic earnings per share is computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. The computation of diluted earnings per share is similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued, calculated using the treasury stock method.

        The Company incurred net losses for the years ended December 31, 2014, 2013 and 2012, and has excluded 4,663,421, 3,547,578 and 1,563,417 of incremental shares, respectively, attributable to outstanding stock options, restricted stock and restricted stock units from the calculation of net loss per share because the effect would have been anti-dilutive.

        The components of net loss per share are as follows:

	Years Ended December 31,
	2014			2013			2012
	(in thousands, except per share data)
Net loss available to common stockholders	$	(11,266	)	$	(17,144	)	$	(34,034	)
Weighted average common shares outstanding used in computing basic net loss per share		111,450			108,869			107,619
Incremental shares		—			—			—
Weighted average common shares outstanding used in computing diluted net loss per share		111,450			108,869			107,619
Net loss per share
Basic	$	(0.10	)	$	(0.16	)	$	(0.32	)
Diluted	$	(0.10	)	$	(0.16	)	$	(0.32	)

Accumulated Other Comprehensive Income

(n)   Accumulated Other Comprehensive Income

        The following table presents the changes in accumulated other comprehensive income, net of tax, by component for the year ended December 31, 2014:

	Foreign currency			Defined benefit pension plan			Total
	(in thousands)
Balance at December 31, 2013	$	6,070		$	(331	)	$	5,739
Other comprehensive loss		(4,150	)		(313	)		(4,463	)
Balance at December 31, 2014	$	1,920		$	(644	)	$	1,276

Recent Accounting Guidance

(o)   Recent Accounting Guidance

Accounting Standards or Updates Recently Adopted

        On January 1, 2014, the Company adopted Accounting Standards Update (ASU) No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exist. ASU 2013-11 amended the presentation requirements of ASC 740, Income Taxes, and requires that a liability related to an unrecognized tax benefit be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, similar tax loss, or a tax credit carryforward. To the extent the tax benefit is not available at the reporting date under the governing tax law or if the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented as a liability and not combined with deferred tax assets. The ASU became effective for annual periods, and interim periods within those years, beginning after December 15, 2013, which is fiscal 2014 for the Company. The amendments are to be applied to all unrecognized tax benefits that exist as of the effective date and may be applied retrospectively to each prior reporting period presented. The adoption of this standard did not have a material impact on our consolidated financial statements.

Accounting Standards or Updates Not Yet Effective

        In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, "Revenue from Contracts with Customers," which provides guidance for revenue recognition. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The new guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company is currently assessing the potential impact of ASU No. 2014-09 on its consolidated financial statements.

        In August 2014, the FASB issued ASU No. 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern." ASU 2014-15 introduces an explicit requirement for management to assess if there is substantial doubt about an entity's ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. In connection with each annual and interim period, management must assess if there is substantial doubt about an entity's ability to continue as a going concern within one year after the issuance date. Disclosures are required if conditions give rise to substantial doubt. ASU 2014-15 is effective for all entities in the first annual period ending after December 15, 2016. The Company expects to comply with this standard once effective.

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2014

Summary of Significant Accounting Policies

Schedule of estimated useful lives of the related assets

Asset Classification	Estimated Useful Life
Buildings	40 years
Machinery and equipment	3 to 10 years

Schedule of components of net loss per share

	Years Ended December 31,
	2014			2013			2012
	(in thousands, except per share data)
Net loss available to common stockholders	$	(11,266	)	$	(17,144	)	$	(34,034	)
Weighted average common shares outstanding used in computing basic net loss per share		111,450			108,869			107,619
Incremental shares		—			—			—
Weighted average common shares outstanding used in computing diluted net loss per share		111,450			108,869			107,619
Net loss per share
Basic	$	(0.10	)	$	(0.16	)	$	(0.32	)
Diluted	$	(0.10	)	$	(0.16	)	$	(0.32	)

Schedule of changes in accumulated other comprehensive income, net of tax

	Foreign currency			Defined benefit pension plan			Total
	(in thousands)
Balance at December 31, 2013	$	6,070		$	(331	)	$	5,739
Other comprehensive loss		(4,150	)		(313	)		(4,463	)
Balance at December 31, 2014	$	1,920		$	(644	)	$	1,276

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities
Net loss	$ (11,266)	$ (17,144)	$ (34,034)
Adjustments to reconcile net loss to net cash used for operating activities:
Depreciation and amortization	4,589	5,075	6,877
Gain on sale of dry strip assets and intellectual property		(1,167)	(7,904)
Deferred taxes	1,266	(1,465)	826
Other			186
Stock-based compensation expense	4,812	4,337	3,976
Provision for inventory reserves	1,817	2,562	14,492
Changes in operating assets & liabilities
Accounts receivable	(7,069)	(11,528)	10,478
Inventories	(12,280)	2,209	5,903
Prepaid expenses and other current assets	(1,384)	125	4,386
Accounts payable and other current liabilities	772	7,308	(13,490)
Deferred revenue	2,577	(2,181)	(5,396)
Income taxes	(212)	133	(225)
Other assets and liabilities	333	(3,306)	3,328
Net cash used for operating activities	(16,045)	(15,042)	(10,597)
Cash flows from investing activities
Proceeds from sale of dry strip assets and intellectual property		1,200	8,716
Expenditures for property, plant, and equipment	(896)	(821)	(591)
Decrease (increase) in restricted cash		106	(2)
Net cash (used for) provided by investing activities	(896)	485	8,123
Cash flows from financing activities
Increase in restricted cash		(825)
Financing fees and other expenses	(115)	(560)
Proceeds from exercise of stock options	2,895	1,669	968
Proceeds from Employee Stock Purchase Plan	446	436	331
Proceeds from issuance of Term Loan		15,000
Principal payments on Term Loan	(470)
Net cash provided by financing activities	2,756	15,720	1,299
Effect of exchange rate changes on cash	(1,352)	141	(716)
Net (decrease) increase in cash and cash equivalents	(15,537)	1,304	(1,891)
Cash and cash equivalents at beginning of period	46,290	44,986	46,877
Cash and cash equivalents at end of period	30,753	46,290	44,986
Cash paid for:
Income taxes	931	737	848
Interest paid	$ 832	$ 409

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Accounts Receivable, net (Tables)

12 Months Ended

Dec. 31, 2014

Accounts Receivable, net

Schedule of components of accounts receivable

	December 31,
	2014			2013
	(in thousands)
Trade receivables	$	43,184		$	36,991
Allowance for doubtful accounts		(390	)		(404	)
	$	42,794		$	36,587

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value Measurements

Schedule of assets measured at fair value

	December 31, 2014 Fair Value Measurements
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash equivalents:
Money market funds	$	7,004	$	—	$	—	$	7,004
Liabilities
Term Loan	$	—	$	14,530	$	—	$	14,530

	December 31, 2013 Fair Value Measurements
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash equivalents:
Money market funds	$	10,504	$	—	$	—	$	10,504
Liabilities
Term Loan	$	—	$	15,000	$	—	$	15,000

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Property, Plant and Equipment, net (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Property, plant and equipment, net
Gross	$ 87,497,000	$ 87,206,000
Accumulated depreciation	(57,033,000)	(55,200,000)
Net	30,464,000	32,006,000
Depreciation expense	2,400,000	3,200,000	3,300,000
Land and buildings
Property, plant and equipment, net
Gross	78,757,000	79,076,000
Machinery and equipment
Property, plant and equipment, net
Gross	8,370,000	7,774,000
Construction in process
Property, plant and equipment, net
Gross	$ 370,000	$ 356,000

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Subsequent Event (Details) (USD $) In Millions, unless otherwise specified	0 Months Ended
	Mar. 05, 2015	Jan. 30, 2015
Subsequent events
Period of separation pay in event of termination without cause	12 months
Term Loan
Subsequent events
Repayment of debt		$ 14.5
Early termination fee on amounts prepaid (as a percent)		2.00%
Subsequent event | Sale and leaseback | Beverly Property Owner LLC | Buildings
Subsequent events
Purchase price		49.0
Lease term		22 years
Lease payment, first year		4.7
Security deposit in the form of irrevocable letter of credit		5.9
Financing obligation		49.0
Net proceeds from sale leaseback transaction		$ 33.1

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Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Revenue
Product	$ 179,246	$ 169,587	$ 174,309
Services	23,805	26,045	29,076
Total revenue	203,051	195,632	203,385
Cost of revenue
Product	113,285	106,678	123,593
Services	19,602	21,019	21,621
Total cost of revenue	132,887	127,697	145,214
Gross profit	70,164	67,935	58,171
Operating expenses
Research and development	33,533	34,756	40,401
Sales and marketing	20,713	21,159	25,889
General and administrative	23,958	25,471	26,554
Gain on sale of dry strip assets and intellectual property		(1,167)	(7,904)
Restructuring charges	2,621	2,334	4,169
Total operating expenses	80,825	82,553	89,109
Loss from operations	(10,661)	(14,618)	(30,938)
Other income (expense)
Interest income	32	44	45
Interest expense	(1,069)	(457)
Other, net	1,531	(1,073)	(1,495)
Total other income (expense)	494	(1,486)	(1,450)
Loss before income taxes	(10,167)	(16,104)	(32,388)
Income tax provision	1,099	1,040	1,646
Net loss	$ (11,266)	$ (17,144)	$ (34,034)
Net loss per share
Basic (in dollars per share)	$ (0.10)	$ (0.16)	$ (0.32)
Diluted (in dollars per share)	$ (0.10)	$ (0.16)	$ (0.32)
Shares used in computing net loss per share
Basic (in shares)	111,450	108,869	107,619
Diluted (in shares)	111,450	108,869	107,619

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Summary of Significant Accounting Policies (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Foreign Currency
Foreign exchange gains (losses) realized	$ 1.8	$ (0.3)	$ (0.9)
Buildings
Property, plant and equipment, net
Useful life	40 years
Machinery and equipment | Minimum
Property, plant and equipment, net
Useful life	3 years
Machinery and equipment | Maximum
Property, plant and equipment, net
Useful life	10 years

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	30,000	30,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	300,000	300,000
Common stock, shares issued	112,849	110,225
Common stock, shares outstanding	112,729	110,105
Treasury stock, shares	120	120

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Employee Benefit Plans (Details)	12 Months Ended
	Dec. 31, 2014
Regular employees
Defined Contribution Plan
Maximum contribution per employee under the Axcelis Long-Term Investment Plan (as a percent)	35.00%
Highly compensated employees
Defined Contribution Plan
Maximum contribution per employee under the Axcelis Long-Term Investment Plan (as a percent)	16.00%

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Assets Manufactured for Internal Use (Tables)

12 Months Ended

Dec. 31, 2014

Assets Manufactured for Internal Use

Schedule of components of assets manufactured for internal use

	December 31,
	2014			2013
	(in thousands)
Internal use assets	$	24,309		$	23,409
Construction in process		3,465			5,263
Total cost		27,774			28,672
Accumulated depreciation		(17,927	)		(15,774	)
Assets manufactured for internal use, net	$	9,847		$	12,898

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Business Segment and Geographic Region Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014 item	Dec. 31, 2013	Dec. 31, 2012
Business Segment and Geographic Region Information
Number of business segments									1
Revenue by product lines
Revenue	$ 62,530	$ 38,531	$ 41,150	$ 60,840	$ 58,574	$ 48,831	$ 47,501	$ 40,726	$ 203,051	$ 195,632	$ 203,385
Ion implantation systems, services, and royalties
Revenue by product lines
Revenue									183,148	164,030	156,090
Other systems and services
Revenue by product lines
Revenue									$ 19,903	$ 31,602	$ 47,295

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Stockholders' Equity

12 Months Ended

Dec. 31, 2014

Stockholders' Equity

Stockholders' Equity

Note 14.  Stockholders' Equity

Preferred Stock

        The Company may issue up to 30 million shares of preferred stock in one or more series. The Board of Directors is authorized to fix the rights and terms for any series of preferred stock without additional shareholder approval. As of December 31, 2014 and 2013, there were no outstanding shares of preferred stock.

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Restructuring Charges (Tables)

12 Months Ended

Dec. 31, 2014

Restructuring Charges.

Schedule of changes in restructuring liability

	Severance
	(In thousands)
Balance at December 31, 2011	$	171
Severance and related costs		4,169
Cash payments		(3,551	)
Non-cash items		(130	)
Balance at December 31, 2012	$	659
Severance and related costs		2,334
Cash payments		(2,950	)
Balance at December 31, 2013	$	43
Severance and related costs		2,565
Cash payments		(2,127	)
Balance at December 31, 2014	$	481

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies

Commitments and Contingencies

Note 16. Commitments and Contingencies

(a)    Lease Commitments

        The Company leases manufacturing and office facilities and certain equipment under operating leases that expire through 2020. Rental expense was $3.7 million, $4.0 million and $4.3 million under operating leases for the years ended December 31, 2014, 2013 and 2012, respectively. Future minimum lease commitments on non-cancelable operating leases for the year ended December 31, 2014 are as follows:

	Operating Leases
	(in thousands)
2015	$	2,543
2016		1,280
2017		607
2018		259
2019		222
Thereafter		222
	$	5,133

(b)    Purchase Commitments

        The Company has non-cancelable contracts and purchase orders for inventory of $34.3 million at December 31, 2014.

(c)    Litigation

        The Company is not presently a party to any litigation that it believes might have a material adverse effect on its business operations. The Company is, from time to time, a party to litigation that arises in the normal course of its business operations.

(d)    Indemnifications

        The Company's system sales agreements typically include provisions under which the Company agrees to take certain actions, provide certain remedies and defend its customers against third-party claims of intellectual property infringement under specified conditions and to indemnify customers against any damage and costs awarded in connection with such claims. The Company has not incurred any material costs as a result of such indemnifications and has not accrued any liabilities related to such obligations in the accompanying consolidated financial statements.

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Income Taxes (Details 2) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014
Income Taxes
Deferred tax assets, net of valuation allowance	0
United States
Valuation allowance
Period of cumulative loss position	3 years
Percentage of valuation allowance	100.00%

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Consolidated Statements of Stockholders' Equity (USD $) In Thousands, unless otherwise specified	Common Stock	Additional Paid-in Capital	Treasury Stock	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Total
Balance at Dec. 31, 2011	$ 107	$ 499,332	$ (1,218)	$ (288,443)	$ 4,777	$ 214,555
Balance (in shares) at Dec. 31, 2011	106,809
Increase (Decrease) in Stockholders' Equity
Net loss				(34,034)		(34,034)
Foreign currency translation adjustments					642	642
Change in pension obligation					(399)	(399)
Exercise of stock options	1	967				968
Exercise of stock options (in shares)	1,148
Issuance of shares under Employee Stock Purchase Plan		390				390
Issuance of shares under Employee Stock Purchase Plan (in shares)	306
Issuance of restricted common shares		(22)				(22)
Issuance of restricted common shares (in shares)	30
Stock-based compensation expense		3,976				3,976
Balance at Dec. 31, 2012	108	504,643	(1,218)	(322,477)	5,020	186,076
Balance (in shares) at Dec. 31, 2012	108,293
Increase (Decrease) in Stockholders' Equity
Net loss				(17,144)		(17,144)
Foreign currency translation adjustments					695	695
Change in pension obligation					24	24
Exercise of stock options	2	1,667				1,669
Exercise of stock options (in shares)	1,511
Issuance of shares under Employee Stock Purchase Plan		436				436
Issuance of shares under Employee Stock Purchase Plan (in shares)	206
Issuance of restricted common shares		(26)				(26)
Issuance of restricted common shares (in shares)	215
Stock-based compensation expense		4,272				4,272
Balance at Dec. 31, 2013	110	510,992	(1,218)	(339,621)	5,739	176,002
Balance (in shares) at Dec. 31, 2013	110,225
Increase (Decrease) in Stockholders' Equity
Net loss				(11,266)		(11,266)
Foreign currency translation adjustments					(4,150)	(4,150)
Change in pension obligation					(313)	(313)
Exercise of stock options	3	2,892				2,895
Exercise of stock options (in shares)	2,418
Issuance of shares under Employee Stock Purchase Plan		446				446
Issuance of shares under Employee Stock Purchase Plan (in shares)	199
Issuance of restricted common shares		(7)				(7)
Issuance of restricted common shares (in shares)	7
Stock-based compensation expense		4,745				4,745
Balance at Dec. 31, 2014	$ 113	$ 519,068	$ (1,218)	$ (350,887)	$ 1,276	$ 168,352
Balance (in shares) at Dec. 31, 2014	112,849

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Consolidated Statements of Comprehensive Loss (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Consolidated Statements of Comprehensive Loss
Net loss	$ (11,266)	$ (17,144)	$ (34,034)
Other comprehensive (loss) income:
Foreign currency translation adjustments	(4,150)	695	642
Actuarial net (loss) gain from pension plan, net of benefit (taxes) of $140, ($15) and $178	(313)	24	(399)
Total other comprehensive (loss) income	(4,463)	719	243
Comprehensive loss	$ (15,729)	$ (16,425)	$ (33,791)

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Restructuring Charges

12 Months Ended

Dec. 31, 2014

Restructuring Charges.

Restructuring Charges

Note 9.  Restructuring Charges

        In 2014, the Company had severance and other costs related to a reduction in force of $2.6 million, which included stock option modification costs of $0.1 million recorded within additional paid-in capital in the consolidated balance sheets. The liability at December 31, 2014 of $0.5 million is expected to be paid primarily in the first quarter of 2015.

        The Company's restructuring liability for the years ended December 31, 2014, 2013 and 2012 are as follows:

	Severance
	(In thousands)
Balance at December 31, 2011	$	171
Severance and related costs		4,169
Cash payments		(3,551	)
Non-cash items		(130	)
Balance at December 31, 2012	$	659
Severance and related costs		2,334
Cash payments		(2,950	)
Balance at December 31, 2013	$	43
Severance and related costs		2,565
Cash payments		(2,127	)
Balance at December 31, 2014	$	481

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Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2014	Mar. 06, 2015	Jun. 30, 2014
Document and Entity Information
Entity Registrant Name	AXCELIS TECHNOLOGIES INC
Entity Central Index Key	0001113232
Document Type	10-K/A
Document Period End Date	Dec. 31, 2014
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 219,360,386
Entity Common Stock, Shares Outstanding		113,466,753
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY

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Product Warranty

12 Months Ended

Dec. 31, 2014

Product Warranty

Product Warranty

Note 10.  Product Warranty

        The Company generally offers a one year warranty for all of its systems, the terms and conditions of which vary depending upon the product sold. For all systems sold, the Company accrues a liability for the estimated cost of standard warranty at the time of system shipment and defers the portion of systems revenue attributable to the fair value of non-standard warranty. Costs for non-standard warranty are expensed as incurred. Factors that affect the Company's warranty liability include the number of installed units, historical and anticipated product failure rates, material usage and service labor costs. The Company periodically assesses the adequacy of its recorded liability and adjusts the amount as necessary.

        The changes in the Company's product warranty liability are as follows:

	Years Ended December 31,
	2014			2013			2012
	(in thousands)
Balance at January 1 (beginning of year)	$	1,428		$	1,801		$	3,697
Warranties issued during the period		1,743			2,240			3,042
Settlements made during the period		(2,096	)		(1,515	)		(3,010	)
Changes in estimate of liability for pre-existing warranties during the period		451			(1,098	)		(1,928	)
Balance at December 31 (end of year)	$	1,526		$	1,428		$	1,801
Amount classified as current	$	1,352		$	1,316		$	1,700
Amount classified within other long-term liabilities		174			112			101
Total warranty liability	$	1,526		$	1,428		$	1,801

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Consolidated Statements of Comprehensive Loss (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Consolidated Statements of Comprehensive Loss
Actuarial net (loss) gain from pension plan, benefit (taxes)	$ 140	$ (15)	$ 178

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Restricted Cash

12 Months Ended

Dec. 31, 2014

Restricted Cash

Restricted Cash

Note 4.  Restricted Cash

        The restricted cash of $0.8 million at December 31, 2014 and 2013 was established in connection with the Company's outstanding Term Loan. At December 31, 2014, this interest reserve amount was reclassified as a current asset due to the reclassification of the related debt to a current liability in relation to the Company's non-compliance with certain covenant requirements (See Note 11). The interest reserve escrow amount was released upon the payment in full of the outstanding balance of the Term Loan (See Note 20).

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Gain on Sale of Dry Strip Assets and Intellectual Property

12 Months Ended

Dec. 31, 2014

Gain on Sale of Dry Strip Assets and Intellectual Property

Gain on Sale of Dry Strip Assets and Intellectual Property

Note 3.  Gain on Sale of Dry Strip Assets and Intellectual Property

        On December 3, 2012, the Company sold its dry strip system assets and intellectual property to Lam. The purchase price was $10.7 million, of which $2.0 million was contingent upon reaching certain milestones.

        Lam granted the Company a worldwide, non-exclusive, non-transferable, royalty free license to use the intellectual property rights sold by the Company under the Asset Purchase Agreement. The perpetual license allowed the Company to make and sell 300mm dry strip wafer processing equipment for semiconductor applications through September 2013, make and sell 200mm products through December 2015 and to support the Company's installed base of all dry strip equipment on a perpetual basis. As a result of this continuing involvement, the transaction has been recorded in continuing operations.

        The $1.2 million gain on sale of dry strip assets and intellectual property for the year ended December 31, 2013 relates to the achievement of certain milestones met during 2013. No further milestones were met.

        During 2012, the $7.9 million gain on sale of dry strip assets and intellectual property was comprised of the $8.7 million proceeds received for the sale, offset by approximately $0.8 million of product and material costs related to the lab system and other components purchased by Lam during 2012.

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Fair Value Measurements

12 Months Ended

Dec. 31, 2014

Fair Value Measurements

Fair Value Measurements

Note 15.  Fair Value Measurements

        Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

(a)    Fair Value Hierarchy

        The accounting guidance for fair value measurement requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows:

        Level 1—applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

        Level 2—applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

        Level 3—applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

(b)    Assets Measured at Fair Value

        The Company's money market funds are included in cash and cash equivalents in the Consolidated Balance Sheets, and are considered a level 1 investment as they are valued at quoted market prices in active markets. The Company's Term Loan is carried at amortized cost which approximates fair value based on current market pricing of similar debt instruments and is categorized as level 2 within the fair value hierarchy. The following table sets forth Company's assets which are measured at fair value by level within the fair value hierarchy.

	December 31, 2014 Fair Value Measurements
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash equivalents:
Money market funds	$	7,004	$	—	$	—	$	7,004
Liabilities
Term Loan	$	—	$	14,530	$	—	$	14,530

	December 31, 2013 Fair Value Measurements
	Level 1		Level 2		Level 3		Total
	(in thousands)
Assets
Cash equivalents:
Money market funds	$	10,504	$	—	$	—	$	10,504
Liabilities
Term Loan	$	—	$	15,000	$	—	$	15,000

(c)    Other Financial Instruments

        The carrying amounts reflected in the consolidated balance sheets for cash and cash equivalents (which are comprised primarily of deposit accounts), accounts receivable, prepaid expenses and other current and non-current assets, restricted cash, accounts payable and accrued expenses approximate fair value due to their short-term maturities.

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Financing Arrangements

12 Months Ended

Dec. 31, 2014

Financing Arrangements

Financing Arrangements

Note 11.  Financing Arrangements

Term Loan

        During the third quarter of 2013, the Company entered into a Business Loan Agreement with Northern Bank & Trust Company ("the Bank"), which provides for a three year term loan of $15.0 million secured by the Company's real estate in Beverly, Massachusetts. $0.8 million of the loan proceeds are held in a restricted interest reserve escrow account as shown under cash flows from financing activities in our Consolidated Statements of Cash Flows. See Note 4 above for further discussion. The Bank will also maintain a reserve on the Company's loan account with the Bank for quarterly real estate taxes on the mortgaged property. The loan bears interest at 5.5% per annum, with payments of principal beginning August 5, 2014. Interest is payable monthly. All outstanding principal and interest is due and payable on July 5, 2016. The Company is also subject to a 2% fee on amounts prepaid between July 5, 2014 and July 5, 2015 and a 1% fee on amounts prepaid between July 5, 2015 and July 5, 2016.

        The Company's Term Loan contains certain customary covenants which limit the Company's ability, with certain exceptions, to dispose of assets, engage in a new line of business, make material changes to our executive management team, effect a change of control, acquire another business, incur additional indebtedness, incur liens, pay dividends and make other distributions, and make investments. Furthermore, under the Term Loan, the Company is required to comply with certain financial covenants, including a Debt Service Ratio, Net Worth, and Liquidity covenants. The Business Loan Agreement was amended in May 2014 to defer to September 30, 2014 the effectiveness of a covenant establishing a minimum ratio of net income to debt service expense, waiving the Company's non-compliance with that covenant at March 31, 2014. In August 2014, the Business Loan Agreement was further amended to defer to December 31, 2014 the covenant establishing a minimum ratio of net income to debt service expense. As of December 31, 2014, the Company was not in compliance with certain covenant requirements of the Term Loan. The Company was in the process of obtaining a waiver regarding its non-compliance with the covenant requirements, however, the waiver was no longer required as the Term Loan was satisfied in full prior to the filing of this Form 10-K with proceeds received by the Company relating to the sale leaseback transaction as described in Note 20. As such the outstanding balance of the Term Loan of $14.5 million and interest reserve escrow (restricted cash) of $0.8 million, were classified within current liabilities and assets, respectively, as of December 31, 2014.

Credit Facility

        The Company has a revolving credit facility with Silicon Valley Bank ("SVB") dated October 31, 2013. Under this revolving credit facility, the Company has the ability to borrow up to $10.0 million on a revolving basis during its two year term. The Company's ability to borrow under this line of credit is limited to 80% of the then current amount of qualified accounts receivable. On August 1, 2014, the Company and SVB entered into a Waiver and Amendment Agreement in which SVB waived the Company's non-compliance with the minimum adjusted net income covenant in the Loan Agreement at June 30, 2014 and amended the covenant for future periods. On February 2, 2015, the Company and SVB entered into a Second Amendment to the Loan and Security Agreement, whereby the minimum adjusted net income covenant for the period ending December 31, 2014 was removed. As of December 31, 2014, the Company was in compliance with all covenants related to the credit facility, as amended.

        At December 31, 2014, the Company's available borrowing capacity under the credit facility was $8.9 million. As of December 31, 2014, the Company had not drawn down on the line of credit, although a portion of the availability is being used to support an outstanding letter of credit in the amount of $1.1 million in lieu of cash collateralization. In February 2015, our available borrowing capacity was reduced by $5.9 million, the amount of a letter of credit issued to our landlord for our Beverly, Massachusetts headquarter building (see Note 20).

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Property, Plant and Equipment, net

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment, net

Property, Plant and Equipment, net

Note 7.  Property, Plant and Equipment, net

        The components of property, plant and equipment are as follows:

	December 31,
	2014			2013
	(in thousands)
Land and buildings	$	78,757		$	79,076
Machinery and equipment		8,370			7,774
Construction in process		370			356
Total cost		87,497			87,206
Accumulated depreciation		(57,033	)		(55,200	)
Property, plant and equipment, net	$	30,464		$	32,006

        Depreciation expense was $2.4 million, $3.2 million and $3.3 million, for the years ended December 31, 2014, 2013 and 2012, respectively.

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Employee Benefit Plans (Details 2) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Classification of liabilities in the Consolidated Balance Sheets
Current liabilities	$ 837,000	$ 638,000
Total liabilities	4,160,000	4,054,000
Plan expenses	700,000	600,000	600,000
Accrued compensation
Classification of liabilities in the Consolidated Balance Sheets
Current liabilities	837,000	638,000
Other long-term liabilities
Classification of liabilities in the Consolidated Balance Sheets
Long-term liabilities	$ 3,323,000	$ 3,416,000

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Accounts Receivable, net

12 Months Ended

Dec. 31, 2014

Accounts Receivable, net

Accounts Receivable, net

Note 5.  Accounts Receivable, net

        The components of accounts receivable are as follows:

	December 31,
	2014			2013
	(in thousands)
Trade receivables	$	43,184		$	36,991
Allowance for doubtful accounts		(390	)		(404	)
	$	42,794		$	36,587

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Inventories, net

12 Months Ended

Dec. 31, 2014

Inventories, net

Inventories, net

Note 6.  Inventories, net

        The components of inventories are as follows:

	December 31,
	2014		2013
	(in thousands)
Raw materials	$	65,723	$	56,942
Work in process		22,358		27,462
Finished goods		15,982		11,385
	$	104,063	$	95,789

        When recorded, inventory reserves are intended to reduce the carrying value of inventories to their net realizable value. The Company establishes inventory reserves when conditions exist that indicate inventory may be in excess of anticipated demand or is obsolete based upon assumptions about future demand for the Company's products or market conditions. The Company regularly evaluates the ability to realize the value of inventories based on a combination of factors including the following: forecasted sales or usage, estimated product end of life dates, estimated current and future market value and new product introductions. Purchasing and usage alternatives are also explored to mitigate inventory exposure. In 2014, the Company recorded an overall decrease of $1.4 million in the inventory reserves, which consisted of disposals due to obsolescence and excess inventory of $1.3 million and a $1.1 million reduction in reserve for sales of previously fully reserved inventory, partially offset by a provision charge to the reserve of $1.0 million. As of December 31, 2014 and 2013, inventories are stated net of inventory reserves of $23.6 million and $25.1 million respectively.

        During 2014, the Company recorded a charge to cost of sales of $1.0 million due to production levels below normal capacity and $0.8 million to reflect the lower of cost or market value associated with evaluation units in the field. During 2013, the Company recorded charges to cost of sales of $0.6 million and $0.7 million due to production levels below normal capacity and lower of cost or market, respectively. During 2012, the Company recorded charges to cost of sales of $2.6 million and $0.5 million due to production levels below normal capacity and lower of cost or market, respectively.

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Assets Manufactured for Internal Use

12 Months Ended

Dec. 31, 2014

Assets Manufactured for Internal Use

Assets Manufactured for Internal Use

Note 8.  Assets Manufactured for Internal Use

        The components of assets manufactured for internal use, included in amounts reported as other assets, are as follows:

	December 31,
	2014			2013
	(in thousands)
Internal use assets	$	24,309		$	23,409
Construction in process		3,465			5,263
Total cost		27,774			28,672
Accumulated depreciation		(17,927	)		(15,774	)
Assets manufactured for internal use, net	$	9,847		$	12,898

        These products are used in-house for research and development, training, and customer demonstration purposes.

        Effective October 1, 2013, the Company changed its estimate of the useful life of its assets manufactured for internal use (which are amortized on a straight-line basis) from five years to ten years. This change in estimate resulted from the evaluation of the life cycle of our assets manufactured for internal use and the conclusion, that based on recent experience these products consistently have a longer life than previously estimated. The change in useful life has been accounted for as a change in accounting estimate, and was effective on new assets manufactured for internal use, on a prospective basis beginning October 1, 2013.

        As a result of the change in the estimated life of assets manufactured for internal use, profit before tax and net profit were approximately $0.3 million and $0.1 million higher for the full year ended December 31, 2014 and 2013, respectively. The change in estimated useful life of assets did not have an impact on the earnings per share disclosed in the Consolidated Statements of Operations.

        Depreciation expense was $2.2 million, $1.8 million and $3.4 million, for the years ended December 31, 2014, 2013 and 2012, respectively.

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Commitments and Contingencies (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Lease Commitments
Rental expense under operating leases	$ 3,700,000	$ 4,000,000	$ 4,300,000
Future minimum lease commitments on non-cancelable operating leases
2015	2,543,000
2016	1,280,000
2017	607,000
2018	259,000
2019	222,000
Thereafter	222,000
Total	5,133,000
Purchase Commitments
Non-cancelable contracts and purchase orders for inventory	$ 34,300,000

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Business Segment and Geographic Region Information (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Revenue and long-lived assets by geographic region
Revenue	$ 62,530	$ 38,531	$ 41,150	$ 60,840	$ 58,574	$ 48,831	$ 47,501	$ 40,726	$ 203,051	$ 195,632	$ 203,385
Long-Lived Assets	40,300				44,904				40,300	44,904	44,192
United States.
Revenue and long-lived assets by geographic region
Revenue									126,255	116,969	132,159
Long-Lived Assets	40,001				44,424				40,001	44,424	43,440
Europe
Revenue and long-lived assets by geographic region
Revenue									29,140	27,933	27,636
Asia Pacific
Revenue and long-lived assets by geographic region
Revenue									47,656	50,730	43,590
Long-Lived Assets	299				480				299	480	752
International | Revenue | Geographic concentration risk
Revenue and long-lived assets by geographic region
Revenue									$ 162,400	$ 149,400	$ 142,800
Percentage of revenue									80.00%	76.40%	70.20%

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Fair Value Measurements (Details) (Recurring, USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Total | Term Loan
Fair Value Measurements
Term loan	$ 14,530	$ 15,000
Total | Money market funds
Fair Value Measurements
Money market funds	7,004	10,504
Level 1 | Money market funds
Fair Value Measurements
Money market funds	7,004	10,504
Level 2 | Term Loan
Fair Value Measurements
Term loan	$ 14,530	$ 15,000

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Property, Plant and Equipment, net (Tables)

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment, net

Schedule of components of property, plant and equipment

	December 31,
	2014			2013
	(in thousands)
Land and buildings	$	78,757		$	79,076
Machinery and equipment		8,370			7,774
Construction in process		370			356
Total cost		87,497			87,206
Accumulated depreciation		(57,033	)		(55,200	)
Property, plant and equipment, net	$	30,464		$	32,006

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Accounts Receivable, net (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Accounts Receivable, net
Trade receivables	$ 43,184	$ 36,991
Allowance for doubtful accounts	(390)	(404)
Accounts receivable, net	$ 42,794	$ 36,587

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Stock Award Plans and Stock Based Compensation

12 Months Ended

Dec. 31, 2014

Stock Award Plans and Stock Based Compensation

Stock Award Plans and Stock Based Compensation

Note 13.  Stock Award Plans and Stock Based Compensation

(a)    Equity Incentive Plans

        The Company maintains the Axcelis Technologies, Inc. 2012 Equity Incentive Plan (the "2012 Equity Plan"), which became effective on May 2, 2012. Our 2000 Stock Plan (the "2000 Stock Plan") expired on May 1, 2012 and no new grants may be made under that plan after that date. However, awards granted under the 2000 Stock Plan prior to the expiration remain outstanding and subject to the terms of the 2000 Stock Plan.

        The 2012 Equity Plan reserves 7.1 million shares of common stock, $0.001 par value for grant and permits the issuance of options, stock appreciation rights, restricted stock, restricted stock units, stock equivalents and awards of shares of common stock that are not subject to restrictions or forfeiture to selected employees, directors and consultants of the Company. Shares that are not issued under an award (because such award expires, is terminated unexercised or is forfeited) that were outstanding under the 2000 Stock Plan as of the May 2, 2012 increase the reserve of shares available for grant under the 2012 Equity Plan.

        The term of stock options granted under these plans is specified in the award agreements. Unless a lesser term is otherwise specified by the Company's Compensation Committee of the Board of Directors, awards under the 2012 Equity Plan will expire seven years from the date of grant. In general, all awards issued under the 2000 Stock Plan expire ten years from the date of grant. Under the terms of these stock plans, the exercise price of a stock option may not be less than the fair market value of a share of the Company's common stock on the date of grant. Under the 2012 Equity Plan, fair market value is defined as the last reported sale price of a share of the common stock on a national securities exchange as of any applicable date, as long as the Company's shares are traded on such exchange.

        Stock options granted to employees generally vest over a period of four years, while stock options granted to non-employee members of the Company's Board of Directors generally vest over a period of 6 months and, once vested, are not affected by the director's termination of service to the Company. In limited circumstances, the Company may grant stock option awards with market-based vesting conditions, such as the Company's common stock price. Termination of service by an employee will cause options to cease vesting as of the date of termination, and in most cases, employees will have 90 days after termination to exercise options that were vested as of the termination of employment. In general, retiring employees will have one year after termination of employment to exercise vested options. The Company settles stock option exercises with newly issued common shares.

        Restricted stock units granted to employees during 2014, 2013 and 2012 had both time-based vesting provisions and market-based vesting provisions. Generally, unvested restricted stock unit awards expire upon termination of service to the Company. The Company settles restricted stock units upon vesting with newly issued common shares. No restricted stock was granted under either stock plan during the three year period ended December 31, 2014.

        As of December 31, 2014, there were 2.8 million shares available for grant under the 2012 Equity Plan. No shares are available for grant under the 2000 Stock Plan.

        As of December 31, 2014, there were 21.7 million options outstanding under the 2012 Equity Plan and the 2000 Stock Plan, collectively, and less than 0.1 million unvested restricted stock units outstanding under the 2000 Stock Plan.

(b)    Employee Stock Purchase Plan

        The Employee Stock Purchase Plan (the "Purchase Plan") provides effectively all of the Company's employees the opportunity to purchase common stock of the Company at less than market prices. Purchases are made through payroll deductions of up to 10% of the employee's salary as elected by the participant, subject to certain caps set forth in the Purchase Plan. Employees may purchase its common stock at 85% of the market value of the Company's common stock on the day the stock is purchased.

        The Purchase Plan is considered compensatory and as such, compensation expense has been recognized based on the benefit of the discounted stock price, amortized to compensation expense over each offering period of six months. Compensation expense relating to the Purchase Plan was $0.1 million for each of the years ended December 31, 2014, 2013 and 2012.

        As of December 31, 2014, there were a total of 1.6 million shares reserved for issuance and available for purchase under the Purchase Plan. There were 0.2 million, 0.2 million and 0.3 million shares purchased under the Purchase Plan for the years ended December 31, 2014, 2013 and 2012 respectively.

(c)    Valuation of Stock Options

        For the purpose of valuing stock options with service conditions, the Company uses the Black-Scholes option pricing model to calculate the grant-date fair value of an award.

        The fair values of options granted were calculated using the following estimated weighted-average assumptions:

	Years ended December 31,
	2014		2013		2012
Weighted-average expected volatility	60.59-98.40	%	98.1	%	97.8%-113.55	%
Weighted-average expected term	3.75-4.71 years		4.7 years		3.8-6.1 years
Risk-free interest rate	1.19%-1.67	%	0.7%-1.4	%	0.45%-1.37	%
Expected dividend yield	0	%	0	%	0	%

        Expected volatility—The Company is responsible for estimating volatility and has considered a number of factors when estimating volatility. The Company's method of estimating expected volatility for all stock options granted relies on a combination of historical and implied volatility. The Company believes that this blended volatility results in a more accurate estimate of the grant-date fair value of employee stock options because it more appropriately reflects the market's current expectations of future volatility.

        Expected term—The Company calculated the weighted average expected term for stock options granted prior to July 1, 2012, using a forward looking lattice model of the Company's stock price incorporating a suboptimal exercise factor and a projected post-vest forfeiture rate. For stock options granted after July 1, 2012 to employees and to non-employee members of the Company's Board of Directors, the Company used the simplified method for estimating the expected life of "plain vanilla" options because it did not have sufficient exercise history. The Company expects that it will use a lattice model once sufficient exercise history has been established. The change in the contractual life from 10 years to 7 years reflects the fact that options granted after May 1, 2012 were granted under the 2012 Equity Incentive Plan, which limits option terms to seven years.

        Risk-free interest rate—The yield on zero-coupon U.S. Treasury securities for a period that is commensurate with the expected term assumption is used as the risk-free interest rate.

        Expected dividend yield—Expected dividend yield was not considered in the option pricing formula since the Company does not pay dividends and has no current plans to do so in the future.

        In limited circumstances, the Company also issues stock option grants with vesting based on market conditions, such as the Company's common stock price, or a combination of time or market conditions. The fair values and derived service periods for all grants that have vesting based on market conditions are estimated using the Monte Carlo valuation method. For each stock option grant with vesting based on a combination of time or market conditions, where vesting will occur if either condition is met, the related compensation costs are recognized over the shorter of the explicit service period or the derived service period.

(d)    Summary of Share-Based Compensation Expense

        The Company estimates the fair value of stock options with time-based conditions using the Black-Scholes valuation model and estimates the fair value of stock options with market-based vesting conditions, such as the price of the Company's common stock, using the Monte Carlo valuation model. The fair value of the Company's restricted stock and restricted stock units is calculated based upon the fair market value of the Company's stock at the date of grant.

        The Company uses the straight-line attribution method to recognize expense for stock-based awards such that the expense associated with awards is evenly recognized throughout the period.

        The amount of stock-based compensation recognized is based on the value of the portion of the awards that are ultimately expected to vest. The Company estimates forfeitures at the time of grant and revises them, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The term "forfeitures" is distinct from "cancellations" or "expirations" and represents only the unvested portion of the surrendered stock-based award. Based on a historical analysis, a forfeiture rate of 5% per year, including executive officer awards, was applied to stock-based awards for the years ended December 31, 2014, 2013 and 2012.

        The Company recognized stock-based compensation expense of $4.8 million, $4.3 million and $3.9 million for the years ended December 31, 2014, 2013 and 2012, respectively. The Company presents the expenses related to stock-based compensation in the same expense line items as cash compensation paid to each of its employees. For the years ended 2014, 2013 and 2012, the Company primarily used stock options in its annual equity compensation program.

        The benefits of tax deductions in excess of recognized compensation cost is reported as a financing cash flow, rather than as an operating cash flow. Because the Company does not recognize the benefit of tax deductions in excess of recognized compensation cost due to its cumulative net operating loss position, this had no impact on the Company's consolidated statement of cash flows as of and for the years ended December 31, 2014, 2013 or 2012.

(e)    Stock Option Awards

        The following table summarizes the stock option activity for the year ended December 31, 2014:

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
	(in thousands)					(years)		(in thousands)
Outstanding at December 31, 2013		22,299		$	1.89
Granted		3,976			1.81
Exercised		(2,418	)		1.20
Canceled		(991	)		1.64
Expired		(1,162	)		8.28
Outstanding at December 31, 2014		21,704		$	1.62		5.41	$	22,238
Exercisable at December 31, 2014		12,461		$	1.55		5.09	$	14,347
Options Vested or Expected to Vest at December 31, 2014(1)		21,102		$	1.61		5.47	$	13,448

(1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest is calculated by applying an estimated forfeiture rate to the unvested options.

        The total intrinsic value, which is defined as the difference between the market price at exercise and the price paid by the employee to exercise the options, for options exercised during the years ended December 31, 2014, 2013 and 2012 was $2.4 million, $1.4 million and $0.9 million, respectively.

        The total fair value of stock options vested during the years ended December 31, 2014, 2013 and 2012 were $4.7 million, $3.8 million and $4.1 million respectively. As of December 31, 2014, there was $8.5 million of total forfeiture-adjusted unrecognized compensation cost related to non-vested stock options granted under the 2012 Equity Incentive Plan and the 2000 Stock Plan. That cost is expected to be recognized over a weighted-average period of 2.62 years.

(f)    Restricted Stock and Restricted Stock Units

        Restricted stock units ("RSUs") represent the Company's unfunded and unsecured promise to issue shares of the common stock at a future date, subject to the terms of the RSU Award Agreement and either the 2012 Equity Incentive Plan or the 2000 Stock Plan. The purpose of these awards is to assist in attracting and retaining highly competent employees and directors and to act as an incentive in motivating selected employees and directors to achieve long-term corporate objectives. RSU awards granted in 2014, 2013 and 2012 included both time vested awards and market vested awards for employees and executive officers. No restricted stock awards were granted, or vested, during the period. The fair value of a restricted stock unit and restricted stock award is charged to expense ratably over the applicable service period.

        Changes in the Company's non-vested restricted stock units for the year ended December 31, 2014 is as follows:

	Shares/units			Weighted-Average Grant Date Fair Value per Share
	(in thousands)
Outstanding at December 31, 2013		23		$	1.39
Granted		90			2.17
Vested		(10	)		1.45
Forfeited		—			—
Outstanding at December 31, 2014		103		$	2.07

        Some restricted stock units provide for a net share settlement program to offset the personal income tax obligations of the employee's restricted stock unit vesting. Vesting activity above reflects shares vested before net share settlement. The total forfeiture adjusted unrecognized compensation cost related to market-based restricted stock units that had not vested as of December 31, 2014 was not significant.

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Income Taxes

12 Months Ended

Dec. 31, 2014

Income Taxes

Income Taxes

Note 18. Income Taxes

        Loss before income taxes is as follows:

	Years ended December 31,
	2014			2013			2012
	(in thousands)
United States	$	(11,987	)	$	(18,998	)	$	(37,682	)
Foreign		1,820			2,894			5,294
Loss before income taxes	$	(10,167	)	$	(16,104	)	$	(32,388	)

        Provision for income taxes is as follows:

	Years ended December 31,
	2014		2013		2012
	(in thousands)
Current:
United States
Federal	$	—	$	—	$	—
State		59		84		82
Foreign		780		641		738
Total current		839		725		820
Deferred:
Foreign		260		315		826
Total deferred		260		315		826
Income tax provision	$	1,099	$	1,040	$	1,646

        Reconciliations of income taxes at the United States Federal statutory rate to the effective income tax rate are as follows:

	Years ended December 31,
	2014			2013			2012
	(in thousands)
Income tax benefit at the United States statutory rate	$	(3,558	)	$	(5,636	)	$	(11,336	)
State income taxes		38			55			53
Unrecognized tax benefits		184			(293	)		(832	)
Effect of change in valuation allowance		(6,835	)		5,975			12,662
Foreign income tax rate differentials		259			(1,244	)		(788	)
Unremitted earnings of foreign subsidiaries		(758	)		961			—
Foreign dividend		—			—			383
Stock options		686			450			1,298
Deemed distribution from foreign subsidiaries		607			316			149
Discrete items, net		9,143			—			—
Other, net		1,333			456			57
Income tax provision	$	1,099		$	1,040		$	1,646

        Significant components of current and long-term deferred income taxes are as follows:

	As of December 31,
	2014						2013
	Current			Long Term			Current			Long Term
	(in thousands)
Federal net operating loss carryforwards	$	—		$	105,119		$	—		$	104,370
State net operating loss carryforwards		—			2,210			—			2,250
Foreign net operating loss carryforwards		—			1,280			—			1,421
Federal tax credit carryforwards		—			16,669			—			17,814
State tax credit carryforwards		—			5,293			—			5,543
Unremitted earnings of foreign subsidiaries		—			(8,800	)		—			(9,661	)
Intangible assets		—			383			—			532
Property, plant and equipment		—			4,548			—			4,796
Accrued compensation		65			—			43			—
Inventories		9,808			—			16,540			—
Stock compensation		—			5,198			—			4,896
Warranty		486			—			591			(56	)
Other		1,620			(2,328	)		2,671			(2,406	)
Deferred taxes, gross		11,979			129,572			19,845			129,499
Valuation allowance		(10,975	)		(128,982	)		(18,059	)		(129,409	)
Deferred taxes, net	$	1,004		$	590		$	1,786		$	90

        At December 31, 2014, the Company had $141.6 million of deferred tax assets worldwide relating to net operating loss carryforwards, tax credit carryforwards and other temporary differences, which are available to reduce income taxes in future years. A valuation allowance must be established when it is "more likely than not" that all or a portion of deferred tax assets will not be realized. A review of all available positive and negative evidence needs to be considered, including a company's performance, the market environment in which the company operates, length of carryback and carryforward periods, existing sales backlog, and projections of future operating results. Where there are cumulative losses in recent years there is a strong presumption that a valuation allowance is needed. This presumption can be overcome in very limited circumstances.

        The Company is in a three year cumulative loss position in the United States. As a result, the Company maintains a 100% valuation allowance to reduce the carrying value of these related deferred tax assets to zero. The Company will continue to maintain a full valuation allowance for those tax assets until sustainable future levels of profitability are evident. Changes in the valuation allowance in 2014 and 2013 were attributable to changes in the composition of temporary differences and changes in net operating loss carryforwards. The remaining net deferred tax asset on the consolidated balance sheet represents the balances related to the activities of the foreign subsidiaries.

        At December 31, 2014, the Company has federal and state net operating loss carryforwards of $346.9 million and foreign net operating loss carryforwards of $4.3 million, expiring principally between 2015 and 2034.

        The Company has research and development and other tax credit carryforwards of $18.1 million at December 31, 2014 that can be used to reduce future federal and state income tax liabilities. These tax credit carryforwards expire principally between 2015 and 2028. In addition, the Company has foreign tax credit carryforwards of $3.9 million at December 31, 2014 that are available to reduce future U.S. income tax liabilities subject to certain limitations. These foreign tax credit carryforwards expire between 2015 and 2016.

        It is Company policy to provide taxes for the total anticipated tax impact of the undistributed earnings of our wholly-owned foreign subsidiaries, as such earnings are not expected to be reinvested indefinitely. The Company anticipates that U.S. tax resulting from remitting such earnings will be off-set by net operating loss or credit carryforwards to the extent available. In addition, the Company does not anticipate incurring a foreign withholding tax on remitting such earnings since it does not intend to remit the earnings as dividends.

        The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. The Company and most foreign subsidiaries are subject to income tax examinations by tax authorities for all years dating back to 2004. The Company's policy is to recognize interest related to unrecognized tax benefits as interest expense and penalties as operating expenses. The Company believes that it has appropriate support for the income tax positions taken and to be taken on its tax returns and that its accruals for tax liabilities are adequate for all open years based on an assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter.

        At December 31, 2014, the Company had unrecognized tax benefits related to uncertain tax positions of approximately $8.0 million, of which approximately $5.6 million reduced the Company's deferred tax assets and the offsetting valuation allowance and $2.3 million was recorded in other long-term liabilities. The Company does not expect any significant changes in unrecognized tax benefits in 2015. The Company recognized $0.2 million in interest and penalty expense related to unrecognized tax benefits for each of the years-ended December 31, 2014, 2013 and 2012, respectively.

        A reconciliation of the beginning and ending balance of unrecognized tax benefits are as follows:

	2014		2013
	(in thousands)
Balance at beginning of year	$	7,645	$	7,719
Increases in unrecognized tax benefits as a result of tax positions taken during a prior period		92		324
Decreases in unrecognized tax benefits related to settlements with tax authorities		—		—
Increases in unrecognized tax benefits as a result of tax positions taken during the current period		223		—
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations		—		(398	)
Balance at end of year	$	7,960	$	7,645
Recorded as other long-term liability	$	2,328	$	2,343
Recorded as a decrease in deferred tax assets and offsetting valuation allowance		5,632		5,302
	$	7,960	$	7,645

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Gain on Sale of Dry Strip Assets and Intellectual Property (Details) (USD $)	0 Months Ended	3 Months Ended		12 Months Ended
	Dec. 03, 2012	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 03, 2012
Sale of assets
Gain on sale of dry strip assets and intellectual property				$ 1,167,000	$ 7,904,000
Proceeds from sale of dry strip assets and intellectual property				1,200,000	8,716,000
Dry strip assets and intellectual property
Sale of assets
Purchase price	10,700,000
Contingent purchase price	2,000,000					2,000,000
Gain on sale of dry strip assets and intellectual property		800,000	400,000	1,200,000	7,900,000
Proceeds from sale of dry strip assets and intellectual property					8,700,000
Offset Against Proceeds from Sale of Assets					$ 800,000
Period Through September 2013 | Dry strip assets and intellectual property
Sale of assets
Size of dry strip wafer equipment and products, Company license to make and sell (in millimeters)	300
Period Through December 2015 | Dry strip assets and intellectual property
Sale of assets
Size of dry strip wafer equipment and products, Company license to make and sell (in millimeters)	200

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies

Schedule of future minimum lease commitments on non-cancelable operating leases

	Operating Leases
	(in thousands)
2015	$	2,543
2016		1,280
2017		607
2018		259
2019		222
Thereafter		222
	$	5,133

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Current assets
Cash and cash equivalents	$ 30,753	$ 46,290
Restricted cash	825
Accounts receivable, net	42,794	36,587
Inventories, net	104,063	95,789
Prepaid expenses and other current assets	6,700	6,242
Total current assets	185,135	184,908
Property, plant and equipment, net	30,464	32,006
Long-term restricted cash		825
Other assets	12,055	15,810
Total assets	227,654	233,549
Current liabilities
Accounts payable	21,605	19,451
Accrued compensation	4,232	4,845
Warranty	1,352	1,316
Income taxes	196	417
Deferred revenue	6,782	4,387
Current portion of long-term debt	14,530	471
Other current liabilities	3,401	4,573
Total current liabilities	52,098	35,460
Long-term debt		14,529
Long-term deferred revenue	449	322
Other long-term liabilities	6,755	7,236
Total liabilities	59,302	57,547
Commitments and contingencies (Note 16)
Stockholders' equity
Preferred stock, $0.001 par value, 30,000 shares authorized; none issued or outstanding
Common stock, $0.001 par value, 300,000 shares authorized; 112,849 shares issued and 112,729 shares outstanding at December 31, 2014; 110,225 shares issued and 110,105 shares outstanding at December 31, 2013	113	110
Additional paid-in capital	519,068	510,992
Treasury stock, at cost, 120 shares at December 31, 2014 and 2013	(1,218)	(1,218)
Accumulated deficit	(350,887)	(339,621)
Accumulated other comprehensive income	1,276	5,739
Total stockholders' equity	168,352	176,002
Total liabilities and stockholders' equity	$ 227,654	$ 233,549

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2014

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Note 2. Summary of Significant Accounting Policies

        The accompanying consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the footnotes.

(a)   Basis of Presentation

        The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned, controlled subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

        Events occurring subsequent to December 31, 2014 have been evaluated for potential recognition or disclosure in the consolidated financial statements.

(b)   Use of Estimates

        The preparation of these consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. On an ongoing basis, the Company evaluates its estimates and judgments, including those related to revenue recognition, the realizable value of inventories, valuing share-based compensation instruments and valuation allowances for deferred tax assets. Actual amounts could differ from these estimates. Changes in estimates are recorded in the period in which they become known.

(c)   Foreign Currency

        The Company has determined the functional currency for substantially all operations outside the United States is the local currency. Financial statements for these operations are translated into United States dollars at year-end rates as to assets and liabilities and average exchange rates during the year as to revenue and expenses. The resulting translation adjustments are recorded in stockholders' equity as an element of accumulated other comprehensive income (loss). Foreign currency transaction gains and losses are included in other income (expense) in the Consolidated Statements of Operations.

        For the year ended December 31, 2014 the Company realized $1.8 million of foreign exchange gains. For the year ended December 31, 2013 and 2012, the Company realized $0.3 million and $0.9 million of foreign exchange losses, respectively.

(d)   Cash and Cash Equivalents

        Cash and cash equivalents consist of cash on hand and highly liquid investments with original maturities of ninety days or less. Cash equivalents consist primarily of money market securities and certificates of deposit. Cash equivalents are carried on the balance sheet at fair market value.

(e)   Inventories

        Inventories are carried at lower of cost, determined using the first-in, first-out ("FIFO") method, or market. The Company periodically reviews its inventories and makes provisions as necessary for estimated obsolescence or damaged goods to ensure values approximate lower of cost or market. The amount of such markdowns is equal to the difference between cost of inventory and the estimated market value based upon assumptions about future demands, selling prices, and market conditions.

        The Company records an allowance for estimated excess inventory. The allowance is determined using management's assumptions of materials usage, based on estimates of demand and market conditions. If actual market conditions become less favorable than those projected by management, additional inventory write-downs may be required.

(f)    Property, Plant and Equipment

        Property and equipment are stated at cost, less accumulated depreciation and amortization.

        Depreciation and amortization are recorded using the straight-line method over the estimated useful lives of the related assets as follows:

Asset Classification	Estimated Useful Life
Buildings	40 years
Machinery and equipment	3 to 10 years

        Repairs and maintenance costs are expensed as incurred. Expenditures for renewals and betterments are capitalized.

(g)   Impairment of Long-Lived Assets

        The Company records impairment losses on long-lived assets when events and circumstances indicate that these assets might not be recoverable. Recoverability is measured by a comparison of the assets' carrying amount to their expected future undiscounted net cash flows. If such assets are considered to be impaired, the impairment is measured based on the amount by which the carrying value exceeds its fair value.

        The Company completed a test for recoverability due to indicators of impairment present during interim periods in 2014, 2013 and 2012 respectively. Results of tests for recoverability performed indicated that the carrying value of the asset group was recoverable for all periods presented.

        The Company did not record an impairment charge for the years ended December 31, 2014, 2013, or 2012.

        Future actual performance could be materially different from our current forecasts, which could impact future estimates of undiscounted cash flows and may result in the impairment of the carrying amount of the long-lived assets in the future. This could be caused by strategic decisions made in response to economic and competitive conditions, the impact of the economic environment on our customer base, or a material adverse change in the Company's relationships with significant customers. The Company performs an impairment analysis when circumstances or events warrant.

(h)   Concentration of Risk and Off-Balance Sheet Risk

        Financial instruments that potentially subject the Company to concentrations of credit risk are principally cash equivalents and accounts receivable. The Company's cash equivalents are principally maintained in an investment grade money-market fund.

        The Company has no significant off-balance-sheet risk such as foreign exchange contracts, option contracts or other foreign hedging arrangements.

        The Company's exposure to market risk for changes in interest rates relates primarily to cash equivalents. The primary objective of the Company's investment activities is to preserve principal while maximizing yields without significantly increasing risk. This is accomplished by investing in marketable high investment grade securities. The Company does not use derivative financial instruments to manage its investment portfolio and does not expect operating results or cash flows to be affected to any significant degree by any change in market interest rates.

        The Company performs ongoing credit evaluations of its customers' financial condition and generally requires no collateral to secure accounts receivable. For selected overseas sales, the Company requires customers to obtain letters of credit before product is shipped. The Company maintains an allowance for doubtful accounts based on its assessment of the collectability of accounts receivable. The Company reviews the allowance for doubtful accounts monthly. The Company does not have any off-balance sheet credit exposure related to its customers.

        The Company's customers consist of semiconductor manufacturers located throughout the world and net sales to its ten largest customers accounted for 68.1%, 69.1% and 70.6% of revenue in 2014, 2013 and 2012, respectively.

        For the year ended December 31, 2014, the Company had two customers representing 17.4% and 12.3% of total revenue, respectively. For the years ended December 2013 and 2012, the Company had one customer representing 15.5% and 18.2% of total revenue, respectively, for each of the periods presented.

        As of December 31, 2014, the Company had two customers account for 21.7% and 20.4% of consolidated accounts receivable, respectively. As of December 31, 2013, the Company had three customers account for 23.2%, 14.2% and 13.6% of consolidated accounts receivable, respectively.

        Some of the components and sub-assemblies included in the Company's products are obtained either from a sole source or a limited group of suppliers. Disruption to the Company's supply source, resulting either from depressed economic conditions or other factors, could affect its ability to deliver products to its customers.

(i)    Revenue Recognition

        The Company's revenue recognition policy involves significant judgment by management. As described below, the Company considers a broad array of facts and circumstances in determining when to recognize revenue, including contractual obligations to the customer, the complexity of the customer's post-delivery acceptance provisions, payment history, customer creditworthiness and the installation process. In the future, if the post-delivery acceptance provisions and installation process become more complex or result in a materially lower rate of acceptance, the Company may have to revise its revenue recognition policy, which could delay the timing of revenue recognition.

        The Company's system sales transactions are made up of multiple elements, including the system itself and elements that are not delivered simultaneously with the system. These undelivered elements might include a combination of installation services, extended warranty and support and spare parts, all of which are covered generally by a single sales price.

        The Company's system revenue arrangements with multiple elements are divided into separate units of accounting if specified criteria are met, including whether the delivered element has stand-alone value to the customer. If the criteria are met, then the consideration received is allocated among the separate units based on their relative selling price, and the revenue is recognized separately for each of the separate units.

        The Company determines selling price for each unit of accounting (element) using vendor specific objective evidence (VSOE) or third-party evidence (TPE), if they exist, otherwise, the Company uses best estimated selling price (BESP). The Company generally expects that it will not be able to establish TPE due to the nature of its products, and, as such, the Company typically will determine selling price using VSOE or BESP.

        Where required, the Company determines BESP for an individual element based on consideration of both market and Company-specific factors, including the selling price and profit margin for similar products, the cost to produce the deliverable and the anticipated margin on that deliverable and the characteristics of the varying markets in which the deliverable is sold.

        Systems are not sold separately and VSOE or TPE is not available for the systems element. Therefore the selling price associated with systems is based on BESP. The allocated value for installation in the arrangement includes the greater of (i) the relative selling price of the installation or (ii) the portion of the sales price that will not be received until the installation is completed (the "retention"). The selling price of installation is based upon the fair value of the service performed, including labor, which is based upon the estimated time to complete the installation at hourly rates, and material components, both of which are sold separately. The selling price of all other elements (extended warranty for support, spare parts and labor) is based upon the price charged when these elements are sold separately, or VSOE.

        Product revenue for products which have demonstrated market acceptance, is generally recognized upon shipment provided title and risk of loss has passed to the customer, evidence of an arrangement exists, prices are contractually fixed or determinable, collectability is reasonably assured through historical collection results and regular credit evaluations, and there are no uncertainties regarding customer acceptance. Revenue from installation services is recognized at the time acceptance has occurred, as defined in the sales documentation or, for certain customers, when both acceptance has occurred and retention payment has been received. Revenue for other elements is recognized at the time products are shipped or the related services are performed.

        The Company generally recognizes revenue for systems which have demonstrated market acceptance at the time of shipment because the customer's post-delivery acceptance provisions and installation process have been established to be routine, commercially inconsequential and perfunctory. The Company believes the risk of failure to complete a system installation is remote.

        For initial shipments of systems with new technologies or in the small number of instances where the Company is unsure of meeting the customer's specifications or obtaining customer acceptance upon shipment of the system, it will defer the recognition of systems revenue and related costs until written customer acceptance of the system is obtained. This deferral period is generally within twelve months of shipment.

        Revenue related to maintenance and service contracts is recognized ratably over the duration of the contracts, or based on parts usage, where appropriate. Revenue related to service hours is recognized when the services are performed.

        Product revenue includes revenue from system sales, sales of spare parts, the spare parts component of maintenance and service contracts and product upgrades. Services revenue includes the labor component of maintenance and service contract amounts charged for on-site service personnel.

        Axcelis reports revenue net of any taxes collected from customers and remitted to governmental authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority.

(j)    Shipping and Handling Costs

        Shipping and handling costs are included in cost of revenue.

(k)   Stock-Based Compensation

        The Company generally recognizes compensation expense for all share-based payments to employees and directors, including grants of employee stock options, based on the grant-date fair value of those share-based payments using the Black-Scholes option pricing model, adjusted for expected forfeitures. Other valuation models may be utilized in the limited circumstances where awards with market-based vesting considerations, such as the price of the Company's common stock, are granted. Stock-based compensation expense is recognized ratably over the requisite service period.

        See Note 13 for additional information relating to stock-based compensation.

(l)    Income Taxes

        The Company records income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards.

        The Company's consolidated financial statements contain certain deferred tax assets which have arisen primarily as a result of operating losses, as well as other temporary differences between financial and tax accounting. The Company establishes a valuation allowance if the likelihood of realization of the deferred tax assets is reduced based on an evaluation of objective verifiable evidence. Significant management judgment is required in determining the Company's provision for income taxes, the Company's deferred tax assets and liabilities and any valuation allowance recorded against those net deferred tax assets. The Company evaluates the weight of all available evidence to determine whether it is more likely than not that some portion or all of the net deferred income tax assets will not be realized.

        Income taxes include the largest amount of tax benefit for an uncertain tax position that is more likely than not to be sustained upon audit based on the technical merits of the tax position. Settlements with tax authorities, the expiration of statutes of limitations for particular tax positions, or obtaining new information on particular tax positions may cause a change to the effective tax rate. The Company recognizes accrued interest related to unrecognized tax benefits as interest expense and penalties as operating expense in the consolidated statements of operations.

(m)  Computation of Net Loss per Share

        Basic earnings per share is computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. The computation of diluted earnings per share is similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued, calculated using the treasury stock method.

        The Company incurred net losses for the years ended December 31, 2014, 2013 and 2012, and has excluded 4,663,421, 3,547,578 and 1,563,417 of incremental shares, respectively, attributable to outstanding stock options, restricted stock and restricted stock units from the calculation of net loss per share because the effect would have been anti-dilutive.

        The components of net loss per share are as follows:

	Years Ended December 31,
	2014			2013			2012
	(in thousands, except per share data)
Net loss available to common stockholders	$	(11,266	)	$	(17,144	)	$	(34,034	)
Weighted average common shares outstanding used in computing basic net loss per share		111,450			108,869			107,619
Incremental shares		—			—			—
Weighted average common shares outstanding used in computing diluted net loss per share		111,450			108,869			107,619
Net loss per share
Basic	$	(0.10	)	$	(0.16	)	$	(0.32	)
Diluted	$	(0.10	)	$	(0.16	)	$	(0.32	)

(n)   Accumulated Other Comprehensive Income

        The following table presents the changes in accumulated other comprehensive income, net of tax, by component for the year ended December 31, 2014:

	Foreign currency			Defined benefit pension plan			Total
	(in thousands)
Balance at December 31, 2013	$	6,070		$	(331	)	$	5,739
Other comprehensive loss		(4,150	)		(313	)		(4,463	)
Balance at December 31, 2014	$	1,920		$	(644	)	$	1,276

(o)   Recent Accounting Guidance

Accounting Standards or Updates Recently Adopted

        On January 1, 2014, the Company adopted Accounting Standards Update (ASU) No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exist. ASU 2013-11 amended the presentation requirements of ASC 740, Income Taxes, and requires that a liability related to an unrecognized tax benefit be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, similar tax loss, or a tax credit carryforward. To the extent the tax benefit is not available at the reporting date under the governing tax law or if the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented as a liability and not combined with deferred tax assets. The ASU became effective for annual periods, and interim periods within those years, beginning after December 15, 2013, which is fiscal 2014 for the Company. The amendments are to be applied to all unrecognized tax benefits that exist as of the effective date and may be applied retrospectively to each prior reporting period presented. The adoption of this standard did not have a material impact on our consolidated financial statements.

Accounting Standards or Updates Not Yet Effective

        In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, "Revenue from Contracts with Customers," which provides guidance for revenue recognition. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The new guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company is currently assessing the potential impact of ASU No. 2014-09 on its consolidated financial statements.

        In August 2014, the FASB issued ASU No. 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern." ASU 2014-15 introduces an explicit requirement for management to assess if there is substantial doubt about an entity's ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. In connection with each annual and interim period, management must assess if there is substantial doubt about an entity's ability to continue as a going concern within one year after the issuance date. Disclosures are required if conditions give rise to substantial doubt. ASU 2014-15 is effective for all entities in the first annual period ending after December 15, 2016. The Company expects to comply with this standard once effective.

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Financing Arrangements (Details) (USD $)	3 Months Ended	0 Months Ended
	Sep. 30, 2013	Oct. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Jan. 30, 2015	Feb. 28, 2015
Financing Arrangements
Loan proceeds held in restricted interest reserve escrow account				$ 825,000
Outstanding balance classified within current liabilities			14,530,000	471,000
Interest reserve escrow			825,000
Term Loan
Financing Arrangements
Term	3 years
Amount of borrowings	15,000,000
Loan proceeds held in restricted interest reserve escrow account	800,000
Interest rate per annum (as a percent)			5.50%
Early termination fee on amounts prepaid (as a percent)					2.00%
Outstanding balance classified within current liabilities			14,500,000
Term Loan | Between July 5, 2014 and July 5, 2015
Financing Arrangements
Early termination fee on amounts prepaid (as a percent)			2.00%
Term Loan | Between July 5, 2015 and July 5, 2016
Financing Arrangements
Early termination fee on amounts prepaid (as a percent)			1.00%
Revolving credit facility
Financing Arrangements
Term		2 years
Maximum borrowing capacity under the credit facility		10,000,000
Available borrowing capacity under the credit facility			8,900,000
Revolving credit facility | Subsequent event
Financing Arrangements
Reduction amount in available borrowing capacity under the credit facility						5,900,000
Revolving credit facility | Letter of credit
Financing Arrangements
Borrowings against credit facility			$ 1,100,000
Revolving credit facility | Maximum
Financing Arrangements
Limitation on ability to borrow expressed as a percentage of the then current amount of qualified accounts receivable		80.00%

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Income Taxes (Details 3) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014
Federal and state
Operating loss carryforwards
Net operating loss carryforwards	$ 346.9
Foreign
Operating loss carryforwards
Net operating loss carryforwards	$ 4.3

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Quarterly Results of Operations (unaudited)

12 Months Ended

Dec. 31, 2014

Quarterly Results of Operations (unaudited)

Quarterly Results of Operations (unaudited)

Note 19. Quarterly Results of Operations (unaudited)

	Dec. 31, 2014(1)		Sept. 30, 2014(2)			June 30, 2014(3)			March 31, 2014(4)		Dec. 31, 2013(5)		Sept. 30, 2013(6)			June 30, 2013(7)			March 31, 2013(8)
	(in thousands, except per share data)
Revenue	$	62,530	$	38,531		$	41,150		$	60,840	$	58,574	$	48,831		$	47,501		$	40,726
Gross profit		18,796		15,144			14,484			21,740		21,280		16,976			16,737			12,943
Net income (loss)		164		(4,704	)		(6,900	)		174		614		(4,750	)		(4,019	)		(8,988	)
Net income (loss) per share basic and diluted	$	0.00	$	(0.04	)	$	(0.06	)	$	0.00	$	0.01	$	(0.04	)	$	(0.04	)	$	(0.08	)

(1)	Net income includes a $0.8 million charge to inventory reserves.
(2)	Net loss includes a $0.8 million charge to inventory reserves and a $2.3 million restructuring charge.
(3)	Net loss includes a $0.2 million charge to inventory reserves and a $0.1 million restructuring charge.
(4)	Net income includes a $0.2 million restructuring charge.
(5)	Net income includes $0.4 million of income related to the expiration of an uncertain tax position in a foreign jurisdiction.
(6)	Net loss includes $0.4 million related to the write off of certain deferred tax assets in foreign jurisdictions.
(7)	Net loss includes $0.4 million in restructuring charges, and $0.8 million from the gain on sale of dry strip assets and intellectual property.
(8)	Gross profit and net loss includes a $2.1 million charge to excess and obsolete inventory. Net loss includes $1.8 million in restructuring charges, and $0.4 million from the gain on sale of dry strip assets and intellectual property.

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Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2014

Employee Benefit Plans

Schedule of classification of liabilities in Consolidated Balance Sheets

	Year Ended December 31,
	2014		2013
	(in thousands)
Current:
Accrued compensation	$	837	$	638
Total current liabilities	$	837	$	638
Long-term:
Other long-term liabilities		3,323		3,416
Total liabilities	$	4,160	$	4,054

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Employee Benefit Plans

12 Months Ended

Dec. 31, 2014

Employee Benefit Plans

Employee Benefit Plans

Note 12.  Employee Benefit Plans

(a)    Defined Contribution Plan

        The Company maintains the Axcelis Long-Term Investment Plan, a defined contribution plan. All regular employees are eligible to participate and may contribute up to 35% of their compensation on a before-tax basis subject to Internal Revenue Service ("IRS") limitations. Highly compensated employees may contribute up to 16% of their compensation on a before-tax basis subject to IRS limitations. The Company did not match contributions for any of the periods presented.

(b)    Other Compensation Plans

        The Company operates in foreign jurisdictions that require lump sum benefits, payable based on statutory regulations, for voluntary or involuntary termination. Where required, an annual actuarial valuation of the benefit plans is obtained.

        The Company has recorded an unfunded liability of $4.2 million and $4.1 million at December 31, 2014 and 2013, respectively, for costs associated with these compensation plans in foreign jurisdictions. The following table presents the classification of these liabilities in the Consolidated Balance Sheets:

	Year Ended December 31,
	2014		2013
	(in thousands)
Current:
Accrued compensation	$	837	$	638
Total current liabilities	$	837	$	638
Long-term:
Other long-term liabilities		3,323		3,416
Total liabilities	$	4,160	$	4,054

        The expense recorded in connection with these plans was $0.7 million, $0.6 million and $0.6 million during the years ended December 31, 2014, 2013 and 2012, respectively.