EX-99.2 4 a09-9354_2ex99d2.htm EX-99.2

Exhibit 99.2

 

UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS

 

On March 30, 2009, Axcelis Technologies, Inc. (“the Company” or “Axcelis”) announced the completion of the sale of its 50% interest in SEN Corporation, an SHI and Axcelis Company (“SEN”) to Sumitomo Heavy Industries, Ltd. (“SHI”).  The unaudited pro forma combined balance sheet includes the historical balance sheet of Axcelis as of December 31, 2008, giving effect to the sale of the Company’s equity investment in SEN and the repayment of outstanding convertible notes, collectively the “SEN transaction” as if it was consummated on December 31, 2008.  The unaudited pro forma combined statement of operations includes the historical statement of operations of Axcelis for the year ended December 31, 2008, giving effect to the SEN transaction as if it had occurred on January 1, 2008.  The historical consolidated financial information has been adjusted to give effect to pro forma events that are (1) directly attributable to the SEN transaction, (2) factually supportable, and (3) with respect to the statement of operations, expected to have a continuing impact on the combined results of operations.

 

These unaudited pro forma combined financial statements should be read in conjunction with the historical audited consolidated financial statements and accompany notes of Axcelis, which have been incorporated by reference into this Current Report.  The unaudited pro forma condensed combined financial statements are not necessarily indicative of the operating results or financial position that would have occurred if the sale had been completed at the dates indicated.

 


 

Axcelis Technologies, Inc.

Unaudited Pro Forma Combined Statement of Operations

(In thousands, except per share amounts)

 

 

 

For the Year Ended December 31, 2008

 

 

 

Company
Historical (1)

 

Pro Forma
Adjustments

 

Company Pro
Forma Combined

 

Revenue

 

 

 

 

 

 

 

Product

 

$

194,275

 

$

—

 

$

194,275

 

Service

 

51,880

 

—

 

51,880

 

Royalties from SEN

 

4,059

 

(4,059

)(b)

—

 

 

 

250,214

 

(4,059

)

246,155

 

Cost of revenue

 

 

 

 

 

 

 

Product

 

161,310

 

—

 

161,310

 

Service

 

26,289

 

—

 

26,289

 

 

 

187,599

 

—

 

187,599

 

 

 

 

 

 

 

 

 

Gross profit

 

62,615

 

(4,059

)

58,556

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

Research and development

 

63,262

 

—

 

63,262

 

Sales and marketing

 

44,573

 

—

 

44,573

 

General and administrative

 

43,056

 

—

 

43,056

 

Impairment of goodwill

 

42,115

 

—

 

42,115

 

Impairment of intangibles and long-lived assets

 

46,949

 

—

 

46,949

 

Amortization of intangible assets

 

2,624

 

—

 

2,624

 

Restructuring charges

 

6,873

 

—

 

6,873

 

 

 

249,452

 

—

 

249,452

 

 

 

 

 

 

 

 

 

Loss from operations

 

(186,837

)

(4,059

)

(190,896

)

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

Equity income (loss) of SEN

 

(3,667

)

3,667

(b)

—

 

Interest income

 

1,614

 

—

 

1,614

 

Interest expense

 

(6,744

)

6,475

(a)

(269

)

Other, net

 

(169

)

—

 

(169

)

 

 

(8,966

)

10,142

 

1,176

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

(195,803

)

6,083

 

(189,720

)

 

 

 

 

 

 

 

 

Income taxes

 

861

 

—

 

861

 

 

 

 

 

 

 

 

 

Net loss

 

$

(196,664

)

$

6,083

 

$

(190,581

)

 

 

 

 

 

 

 

 

Basic and diluted net loss per share

 

$

(1.91

)

$

0.06

 

$

(1.86

)

 

 

 

 

 

 

 

 

Shares used in computing net loss per share

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Basic and diluted

 

102,739

 

102,739

 

102,739

 

 

(1) As reported in Axcelis’ audited financial statements on Form 10-K for the year ended December 31, 2008.

 

2


 

Axcelis Technologies, Inc.

Unaudited Pro Forma Combined Balance Sheet

(In thousands)

 

 

 

For the Year Ended December 31, 2008

 

 

 

Company
Historical (1)

 

Pro Forma
Adjustments

 

Company Pro
Forma Combined

 

ASSETS

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

37,694

 

$

37,667

(c)

$

75,361

 

Restricted cash

 

8,654

 

—

 

8,654

 

Accounts receivable, net

 

27,486

 

—

 

27,486

 

Inventories, net

 

150,113

 

—

 

150,113

 

Prepaid expenses and other current assets

 

17,231

 

—

 

17,231

 

Total current assets

 

241,178

 

37,667

 

278,845

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

44,432

 

—

 

44,432

 

Investment in SEN

 

156,677

 

(156,677

)(d)

—

 

Other assets

 

12,894

 

—

 

12,894

 

 

 

$

455,181

 

$

(119,010

)

$

336,171

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Accounts payable

 

$

8,066

 

$

—

 

$

8,066

 

Accrued compensation

 

15,841

 

—

 

15,841

 

Warranty

 

3,137

 

—

 

3,137

 

Income taxes

 

337

 

—

 

337

 

Deferred revenue

 

12,508

 

—

 

12,508

 

Other current liabilities

 

6,897

 

(1,470

)(a)

5,427

 

Current portion of convertible subordinated debt

 

83,210

 

(83,210

)(a)

—

 

Total current liabilities

 

129,996

 

(84,680

)

45,316

 

 

 

 

 

 

 

 

 

Long-term deferred revenue

 

1,872

 

—

 

1,872

 

Other long-term liabilities

 

3,936

 

—

 

3,936

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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; 103,400 shares issued and 103,280 shares outstanding at December 31, 2008

 

103

 

—

 

103

 

Additional paid-in capital

 

483,546

 

—

 

483,546

 

Treasury stock, at cost, 120 shares at December 31, 2008

 

(1,218

)

—

 

(1,218

)

Accumulated deficit

 

(198,479

)

(1,985

)(e)

(200,464

)

Accumulated other comprehensive income

 

35,425

 

(32,345

)(d)

3,080

 

 

 

319,377

 

(34,330

)

285,047

 

 

 

$

455,181

 

$

(119,010

)

$

336,171

 

 

(1) As reported in Axcelis’ audited financial statements on Form 10-K for the year ended December 31, 2008.

 

3


 

NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS

 

1.               Basis of Presentation

 

On March 30, 2009, Axcelis Technologies, Inc. (“the Company” or “Axcelis”) announced the completion of its the sale of its 50% interest in SEN Corporation, an SHI and Axcelis Company (“SEN”) to Sumitomo Heavy Industries, Ltd. (“SHI”).  The accompanying unaudited pro forma combined financial statements present the pro forma position as if the transaction was consummated on December 31, 2008. The results of the combined company are presented as if the trasaction occurred on January 1, 2008 based upon the historical financial statements of Axcelis, after giving effect to the sale of the Company’s equity investment in SEN, the repayment of the Company’s 4.25% Convertible Senior Subordinated Notes, collectively the “SEN transaction”, and the adjustments described in these notes.

 

As of March 30, 2009, the sale of the Company’s investment in SEN resulted in an actual gain of approximately $1.2 million. This gain includes net proceeds of $122.3 million and cumulative foreign translation gain of $23.5 million, previously recorded in other comprehensive income, reduced by the carrying value of the investment on the date of sale of $144.6 million.

 

2.               Pro forma Adjustments

 

Pro forma adjustments reflect only those adjustments which are supportable and directly attributable to the Company’s sale of its investment in SEN and do not include the impact of contingencies. 

 

(a)          To reflect the re-payment of the Company’s 4.25% Convertible Senior Subordinated Notes of $83.2 million, eliminate $1.5 million of accrued interest, and eliminate $6.5 million of related interest expense.

 

(b)         To eliminate $3.7 million of equity loss from the investment in SEN and $4.1 million of royalty income from SEN included in the historical statement of operations for the year ended December 31, 2008.

 

(c)          To record net proceeds from the SEN transaction of $37.7 million, after advisor fees and other expenses, repayment of the Company’s 4.25% Convertible Senior Subordinated Notes of $83.2 million and accrued interest of $1.5 million.

 

(d)         To eliminate the Company’s $156.7 million investment in SEN, $124.3 million of equity related to the investment in SEN, and $32.3 million of other comprehensive income related to the cumulative foreign translation gain resulting from the investment in SEN.

 

(e)          Adjustments to the accumulated deficit consist of the following:

 

 

 

December 31, 2008

 

 

 

(in millions)

 

 

 

 

 

Elimination of equity related to investment in SEN

 

$

(124.3

)

Net proceeds from the SEN transaction

 

122.3

 

Adjustment to the accumulated deficit, net

 

$

(2.0

)

 

4