EX-99.1 3 a05-18980_1ex99d1.htm EXHIBIT 99

Exhibit 99.1

 

Media Contact:

 

Investor Contact:

 

Agency Contact:

Maureen Hart

 

James L. Kawski

 

Heather Smith

Axcelis Technologies, Inc.

 

Axcelis Technologies, Inc.

 

The Loomis Group Inc.

Tel: (978) 787-4266

 

Tel: (978) 787-4268

 

Tel: (617) 638-0022

Fax: (978) 787-4275

 

Fax: (978) 787-9133

 

Fax: (617) 638-0033

maureen.hart@axcelis.com

 

investor.relations@axcelis.com

 

smithh@loomisgroup.com

 

AXCELIS ANNOUNCES FINANCIAL RESULTS FOR THE

THIRD QUARTER OF 2005

 

BEVERLY, Mass. — October 26, 2005 – Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for its third quarter ended September 30, 2005.  The Company reported revenues of $87.4 million, compared to $92.2 million for the second quarter of 2005. Worldwide revenues for the third quarter, including revenues of the Company’s 50% owned joint venture in Japan, were $126.3 million, compared to $191.4 million for the preceding quarter. Net loss for the third quarter was $5.2 million, or $0.05 per share, which included restructuring and related costs of $2.9 million, or $0.03 per share. Net income for the second quarter of 2005 was $0.7 million, or $0.01 per diluted share.

 

Commenting on the Company’s performance, Chairman and CEO Mary Puma said, “Axcelis met its guidance for the third quarter amid market conditions that have remained weak. During the quarter, we focused on aggressively managing our operating expenses and penetrating the market with our new Optima single wafer platform.”

 

“We gained several new customers for the Optima MD, our new single wafer mid dose tool. In addition, we have received our first customer commitment for multiple shipments of our new single wafer high dose tool, the Optima HD.  The Optima platform is gaining rapid market acceptance worldwide, as customers recognize that it offers the highest productivity, the most flexibility, the best process performance and the greatest extendibility. We are confident that Axcelis, along with SEN in Japan, will make considerable progress in penetrating the market with this new single wafer technology in 2006.”

 

Axcelis believes that reporting the combined revenues of SEN, a 50% owned unconsolidated subsidiary of Axcelis, with Axcelis’ own revenues, is useful to investors.  SEN’s ion implant products are covered by a license from Axcelis and therefore the combined revenue of the two companies indicates the full market penetration of Axcelis’ technology.

 

Third Quarter Detail

 

Shipments and Margins

Shipments for the third quarter on a worldwide basis, including SEN, totaled $143.0 million with shipments, excluding SEN, totaling $88.9 million. Worldwide shipments, including SEN, were

 


 

down 11.1% from the second quarter of 2005 and Axcelis shipments, excluding SEN, were down 3.7%.

 

Geographically, Axcelis systems shipments, excluding SEN, were to:  Asia 61%, North America 17% and Europe 22%.

 

Service revenue (service labor, spare parts and consumables), excluding SEN, was $39.3 million for the quarter, up 0.8% from the second quarter of 2005.

 

The ion implantation business (excluding SEN) accounted for 77% of total shipments in the third quarter while other products (RTP, Dry Strip and Curing) accounted for 23%.

 

Gross margin for the third quarter was 40.9%.

 

Orders and Backlog

Orders (new systems bookings and service excluding SEN) received for the third quarter totaled $68.9 million, compared to $89.8 million for the second quarter of 2005. New system bookings, excluding service, amounted to $29.6 million compared to $50.8 million for the preceding quarter. Worldwide orders, including SEN, were $118.3 million, compared to $148.7 million for the second quarter of 2005.

 

Backlog plus deferred systems revenue at quarter end was $80.2 million, a decrease of 22.7% since the end of the second quarter of 2005. Reported backlog consists of systems only (i.e., excluding service contracts) that are generally scheduled to ship within six months.

 

Balance Sheet

Cash, cash equivalents and short-term investments decreased by $4.7 million to $184.2 million during the third quarter.

 

Business Outlook

Axcelis’ financial outlook for the fourth quarter of 2005 assumes no material change in the semiconductor spending environment.  Worldwide revenues, including SEN, are expected to be $145 million to $160 million. Net revenues (excluding SEN) in the fourth quarter are expected to be in a range of $85 million to $95 million. The Company anticipates gross margins in the 37% - 40% range and a net loss in the range of $3 million to $7 million ($0.03 to $0.07 loss per share), which includes restructuring and related costs of approximately $2.0 million, or $0.02 per share.

 

Axcelis assumes no responsibility to update guidance. Axcelis will only confirm or update guidance via a press release.

 

Third Quarter 2005 Conference Call

The Company will be hosting a conference call today, Wednesday, October 26, 2005, beginning at 5:00 pm ET.  The purpose of the call is to discuss third quarter 2005 results and to provide guidance for the fourth quarter of 2005.  The call will be available to interested listeners via an audio webcast that can be accessed through Axcelis’ home page at www.axcelis.com, or by dialing 1-800-479-1628 (1-719-457-2729 outside North America).  Participants calling into the conference

 


 

call will be requested to provide the company name: Axcelis Technologies, the conference leader: James Kawski, and pass code: #5904795.  A telephone replay will be available from 8:00 pm ET on October 26, 2005 until 11:59 pm ET on November 2, 2005.  Dial 1-888-203-1112 (1-719-457-0820 outside North America), and enter conference ID code #5904795.  A webcast replay will be available from 8:00 pm ET on October 26, 2005 until 5:00 pm ET November 26, 2005.

 

Safe Harbor Statement

This document contains forward-looking statements under the SEC safe harbor provisions.  These statements, which include those relating to the company developing new products, building its position in the ion inplant market, and its guidance for the fourth quarter of 2005, are based on management’s current expectations and should be viewed with caution. They are subject to various risks and uncertainties, many of which are outside the control of the Company, including the conversion of orders to revenue in any particular quarter, or at all, our ability to implement successfully our profit plans, the continuing demand for semiconductor equipment, relative market growth, continuity of business relationships with and purchases by major customers, competitive pressure on sales and pricing, increases in material and other production costs that cannot be recouped in product pricing and global economic, political and financial conditions. These risks and other risk factors relating to Axcelis are described more fully in the most recent Form 10-K filed by Axcelis and in other documents filed from time to time with the Securities and Exchange Commission.

 

About Axcelis Technologies, Inc.

Axcelis Technologies, Inc., headquartered in Beverly, Massachusetts, provides innovative, high-productivity solutions for the semiconductor industry. Axcelis is dedicated to developing enabling process applications through the design, manufacture and complete life cycle support of ion implantation, rapid thermal processing, and cleaning and curing systems. Axcelis Technologies has key product development centers in Beverly, Massachusetts, as well as in Toyo, Japan through its joint venture, SEN. The company’s Internet address is: www.axcelis.com.

 


 

Axcelis Technologies, Inc.

Consolidated Statements of Operations

In thousands, except per share amounts

(Unaudited)

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

 

2005

 

2004

 

2005

 

2004

 

Revenue

 

 

 

 

 

 

 

 

 

Systems

 

$

47,083

 

$

79,402

 

$

155,723

 

$

277,992

 

Services

 

39,280

 

44,827

 

116,724

 

125,097

 

Royalties, primarily from Sumitomo Eaton Nova Corporation

 

1,019

 

3,667

 

7,149

 

10,380

 

 

 

87,382

 

127,896

 

279,596

 

413,469

 

Costs of Revenue

 

51,679

 

73,817

 

163,156

 

240,814

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

35,703

 

54,079

 

116,440

 

172,655

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

Research & development

 

17,755

 

16,645

 

51,165

 

48,009

 

Selling

 

10,691

 

12,248

 

34,565

 

36,683

 

General and administrative

 

11,994

 

11,943

 

34,996

 

34,645

 

Amortization of intangible assets

 

612

 

612

 

1,836

 

1,836

 

Restructuring charges

 

1,545

 

—

 

5,427

 

—

 

 

 

42,597

 

41,448

 

127,989

 

121,173

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

(6,894

)

12,631

 

(11,549

)

51,482

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

 

 

Equity income of Sumitomo

 

 

 

 

 

 

 

 

 

Eaton Nova Corporation

 

1,395

 

9,065

 

11,360

 

22,212

 

Interest income

 

1,505

 

571

 

3,799

 

1,205

 

Interest expense

 

(1,661

)

(1,643

)

(4,971

)

(5,017

)

Other-net

 

435

 

(445

)

(2

)

(1,091

)

 

 

1,674

 

7,548

 

10,186

 

17,309

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

(5,220

)

20,179

 

(1,363

)

68,791

 

 

 

 

 

 

 

 

 

 

 

Income taxes (credit)

 

(53

)

1,097

 

1,157

 

1,657

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(5,167

)

$

19,082

 

$

(2,520

)

$

67,134

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.05

)

$

0.19

 

$

(0.03

)

$

0.68

 

Diluted

 

$

(0.05

)

$

0.19

 

$

(0.03

)

$

0.66

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing basic and diluted net income (loss) per share

 

 

 

 

 

 

 

 

 

Basic

 

100,428

 

99,797

 

100,256

 

99,432

 

Diluted

 

100,428

 

101,007

 

100,256

 

101,271

 

 


 

Axcelis Technologies, Inc.

Consolidated Balance Sheets

In thousands

(Unaudited)

 

 

 

September 30,

 

December 31,

 

 

 

2005

 

2004

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

$

85,806

 

$

108,295

 

Short-term investments

 

87,688

 

78,703

 

Restricted cash

 

8,149

 

3,498

 

Accounts receivable, net

 

65,914

 

83,767

 

Inventories

 

108,296

 

116,330

 

Other current assets

 

38,829

 

14,986

 

Total current assets

 

394,682

 

405,579

 

 

 

 

 

 

 

Property, plant & equipment, net

 

72,633

 

75,275

 

Investment in Sumitomo Eaton Nova Corporation

 

108,817

 

109,095

 

Goodwill

 

46,773

 

46,773

 

Intangible assets

 

15,835

 

17,671

 

Restricted cash, long-term portion

 

2,562

 

2,841

 

Other assets

 

21,744

 

31,628

 

 

 

$

663,046

 

$

688,862

 

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

 

$

22,957

 

$

24,278

 

Accrued compensation

 

16,721

 

27,030

 

Warranty

 

8,321

 

9,218

 

Income taxes

 

2,627

 

4,530

 

Deferred revenue

 

33,682

 

34,050

 

Other current liabilities

 

8,449

 

8,289

 

Total current liabilities

 

92,757

 

107,395

 

 

 

 

 

 

 

Long-term debt

 

125,000

 

125,000

 

Long-term deferred revenue

 

8,880

 

7,697

 

Other long-term liabilities

 

5,530

 

5,297

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

Preferred Stock

 

—

 

—

 

Common stock

 

101

 

100

 

Additional paid-in capital

 

466,496

 

457,335

 

Deferred compensation

 

(5,974

)

(566

)

Treasury stock

 

(1,218

)

(1,218

)

Accumulated deficit

 

(29,852

)

(27,332

)

Accumulated other comprehensive income

 

1,326

 

15,154

 

 

 

430,879

 

443,473

 

 

 

$

663,046

 

$

688,862