EX-99.1 2 a07-27941_1ex99d1.htm EX-99.1

Exhibit 99.1

 

Company Contact:

 

Investor Contact:

 

Agency Contact:

David Snyder

 

Stephen Bassett

 

Heather Smith

Axcelis Technologies, Inc.

 

Axcelis Technologies, Inc.

 

Loomis Group

Tel: +1 (978) 787 4273

 

Tel: +1 (978) 787 4000

 

Tel: +1 (617) 309 8005

Fax: +1 (978) 787 4275

 

Fax: +1 (978) 787 9133

 

Fax: +1 (617) 638 0033

david.snyder@axcelis.com

 

investor.relations@axcelis.com

 

smithh@loomisgroup.com

 

 

AXCELIS ANNOUNCES FINANCIAL RESULTS FOR THIRD QUARTER 2007

 

BEVERLY, Mass. — November 1, 2007 — Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the third quarter ended September 30, 2007. The Company reported revenues of $107.6 million, compared to $110.1 million for the second quarter of 2007. Net loss for the third quarter was $8.2 million or $0.08 per share, of which $0.05 is attributable to a charge for impairment of goodwill relating to the discontinuance of future development of RTP and curing products.  This compares to net income for the second quarter of $4.7 million or $0.05 per share. In the corresponding quarter for the previous year, the Company reported revenues of $122.8 million and net income of $12.5 million, or $0.12 per share.

 

“Increasing weakness in the semiconductor market has caused a more significant softening in our base business than we had anticipated.  During the third quarter, we experienced a push out of several shipments, driven mainly by changes in the timing of memory projects,” commented Chairman and CEO Mary Puma. “As we previously announced, we are streamlining operations to focus on our core implant and dry strip product lines.  We have implemented other significant cost-out actions, including a reduction in force and an extended holiday shutdown, that will reduce our operating expenses by approximately 10%.”

 

Puma continued, “Despite the ongoing softness in the industry, our customers continue to validate the production and process advantages of the Optima HD.  We received a follow-on order this quarter for an Optima HD for high volume manufacturing where we demonstrated these advantages in head-to-head competition.  Our customers are conveying to us that the Optima HD will capture a measurable split of their future high dose business.”

 

Third Quarter Detail

 

Shipments and Margins

Shipments, including aftermarket business, before provision for deferred revenue for the third quarter totaled $103.4 million. Geographically, Axcelis’ systems shipments for the quarter were to: Asia, 66%; North America, 12%; and Europe, 22%. The ion implantation business accounted for 70% of total shipments in the third quarter. Gross margin for the third quarter was approximately 34%.

 

Orders and Backlog

Orders (new systems bookings and aftermarket) received for the third quarter totaled $76.2 million. New systems bookings, excluding aftermarket, amounted to $33.0 million. Backlog plus deferred systems revenue at quarter end was $63.5 million. Backlog consists of systems orders (aftermarket orders are excluded) that are generally scheduled to ship within six months.

 

 



 

SEN Corporation, an SHI and Axcelis Company (“SEN”)

Axcelis owns 50% of SEN, a Japanese company that is licensed to make and sell certain Axcelis ion implanters in Japan. SEN’s revenue for the third quarter totaled $49.7 million.

 

Business Outlook

Axcelis’ financial outlook for the fourth quarter of 2007 includes revenues in the range of $80 million to $95 million. The Company also forecasts a fourth quarter loss per share in the range of $0.07 to $0.13 of which $0.02 is attributed to the restructuring of the business.  Axcelis assumes no responsibility to update guidance. Axcelis will only confirm or update guidance via a press release.

 

Third Quarter 2007 Conference Call

The Company will be hosting a conference call today, Thursday, November 1, 2007, beginning at 5:00 pm ET. The purpose of the call is to discuss third quarter results and to provide guidance for the fourth quarter of 2007.

 

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: Stephen Bassett, and pass code: #3354400. A webcast replay will be available from 8:00 pm ET on November 1, 2007 until 5:00 pm ET December 1, 2007.

 

Safe Harbor Statement

This document contains forward-looking statements under the SEC safe harbor provisions. These statements, which include our guidance for future financial performance, are based on management’s current expectations and should be viewed with caution. They are subject to various risks and uncertainties, many of which are outside the control of the Company, including the timing of orders and shipments, 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 and cleaning systems. Axcelis also licenses its 50% owned joint venture, SEN Corporation, an SHI and Axcelis Company, to manufacture and sell certain implant products in Japan. 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,

 

 

 

2007

 

2006

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

107,553

 

$

122,817

 

$

315,152

 

$

338,378

 

 

 

 

 

 

 

 

 

 

 

Cost of Revenue

 

71,284

 

69,551

 

194,043

 

198,128

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

36,269

 

53,266

 

121,109

 

140,250

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

Research and development

 

18,288

 

17,597

 

54,114

 

54,000

 

Sales and marketing

 

12,411

 

11,743

 

38,495

 

33,919

 

General and administrative

 

10,367

 

11,986

 

31,037

 

34,258

 

Impairment of goodwill

 

4,658

 

 

4,658

 

 

Amortization of intangible assets

 

656

 

656

 

1,968

 

1,895

 

Restructuring charges

 

 

53

 

 

147

 

 

 

46,380

 

42,035

 

130,272

 

124,219

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

(10,111

)

11,231

 

(9,163

)

16,031

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

 

 

Equity income of SEN

 

1,767

 

2,372

 

8,340

 

10,734

 

Interest income

 

1,224

 

2,250

 

3,824

 

5,816

 

Interest expense

 

(1,587

)

(2,570

)

(4,822

)

(6,657

)

Other-net

 

254

 

153

 

505

 

837

 

 

 

1,658

 

2,205

 

7,847

 

10,730

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

(8,453

)

13,436

 

(1,316

)

26,761

 

 

 

 

 

 

 

 

 

 

 

Income taxes (credits)

 

(256

)

916

 

(536

)

1,552

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(8,197

)

$

12,520

 

$

(780

)

$

25,209

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.08

)

$

0.12

 

$

(0.01

)

$

0.25

 

Diluted

 

$

(0.08

)

$

0.12

 

$

(0.01

)

$

0.25

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing net income (loss) per share

 

 

 

 

 

 

 

 

 

Basic

 

 

102,206

 

 

101,165

 

 

101,772

 

 

101,003

 

Diluted

 

 

102,206

 

 

101,612

 

 

101,772

 

 

101,205

 

 



 

Axcelis Technologies, Inc.

Consolidated Balance Sheets

In thousands

(Unaudited)

 

 

 

September 30,

 

December 31,

 

 

 

2007

 

2006

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

$

83,152

 

$

140,451

 

Marketable securities

 

 

63,200

 

Restricted cash

 

16,656

 

11,019

 

Accounts receivable, net

 

76,191

 

73,635

 

Inventories, net

 

175,547

 

160,107

 

Prepaid expenses and other current assets

 

30,361

 

26,639

 

Total current assets

 

381,907

 

475,051

 

 

 

 

 

 

 

Property, plant and equipment, net

 

68,492

 

66,678

 

Investment in SEN

 

126,971

 

126,688

 

Goodwill

 

42,115

 

46,773

 

Intangible assets

 

11,581

 

13,549

 

Restricted cash, long-term portion

 

 

1,137

 

Other assets

 

34,327

 

24,117

 

 

 

$

665,393

 

$

753,993

 

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

 

$

21,891

 

$

37,312

 

Accrued compensation

 

14,285

 

26,996

 

Warranty

 

4,989

 

5,229

 

Income taxes

 

672

 

3,906

 

Deferred revenue

 

35,228

 

28,811

 

Current portion of convertible subordinated debt

 

 

74,217

 

Other current liabilities

 

7,727

 

13,670

 

Total current liabilities

 

84,792

 

190,141

 

 

 

 

 

 

 

Convertible subordinated debt

 

79,142

 

76,887

 

Long-term deferred revenue

 

5,082

 

5,054

 

Other long-term liabilities

 

6,667

 

4,349

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

Preferred Stock

 

 

 

Common stock

 

102

 

101

 

Additional paid-in capital

 

476,549

 

469,967

 

Treasury stock

 

(1,218

)

(1,218

)

Retained earnings

 

8,803

 

9,583

 

Accumulated other comprehensive income (loss)

 

5,474

 

(871

)

 

 

489,710

 

477,562

 

 

 

$

665,393

 

$

753,993