EX-99.1 2 a10-14810_1ex99d1.htm EX-99.1

Exhibit 99.1

 

GRAPHIC

 

AXCELIS ANNOUNCES FINANCIAL RESULTS

FOR SECOND QUARTER 2010

Company Reports Strong Growth in Revenues, Cash and System Orders

 

BEVERLY, Mass.— July 28, 2010—Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the quarter ended June 30, 2010.

 

The Company reported second quarter revenue of $58.2 million, compared to $48.5 million for the first quarter of 2010, a 20% increase. Net loss for the second quarter was $4.5 million, or $0.04 per share. This compares to a net loss for the first quarter of 2010 of $11.1 million, or $0.11 per share. Cash and cash equivalents, including restricted cash, were $51.9 million at June 30, 2010. The Company generated positive cash flow from operations of $12.1 million for the quarter and ended the quarter with working capital of $153.8 million.

 

“We had a much improved second quarter, posting better than expected results,” said Mary Puma, chairman and CEO. “We saw substantial increases in revenues, cash flow and orders for both capacity expansions and leading-edge process design wins from all regions of the world.  This has had a very positive effect on our financial performance; we generated positive cash flow from operations for the first half of the year and remain well on track to return to profitability.”  She continued, “We are seeing growing demand from both new and existing customers for our high current product line due to significant productivity and device performance advantages the Optima HDx system provides. We expect this to translate into market share gains in 2010 and beyond.”

 

Second Quarter 2010 Conference Call
The Company will host a conference call today at 5:00 pm ET to discuss results for the second quarter 2010.  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

 

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dialing 1-888-679-8033 (1-617-213-4846 outside North America).  Participants calling into the conference call will be requested to provide the company name, Axcelis Technologies and pass code: 30719656.  Webcast and telephone replays will be available from 8 pm ET on July 28, 2010 until 11:59 pm on October 26, 2010.  Dial 1- 888-286-8010 (1-617-801-6888 outside North America), and enter conference ID code# 41501993.

 

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
Axcelis Technologies, Inc. (Nasdaq: ACLS) 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 support of ion implantation and cleaning systems. The company’s Internet address is: www.axcelis.com.

 

Company Contacts:

Maureen Hart (editorial/media) 978.787.4266

 

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Maureen.hart@axcelis.com

 

Stephen Bassett (financial community) 978.787.4110

Stephen.bassett@axcelis.com

 

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Axcelis Technologies, Inc.

 

Consolidated Statements of Operations

 

In thousands, except per share amounts

 

(Unaudited)

 

 

 

Three months ended
June 30,

 

Six months ended
June 30,

 

 

 

2010

 

2009

 

2010

 

2009

 

Revenue

 

 

 

 

 

 

 

 

 

Product

 

$

50,693

 

$

25,764

 

$

90,971

 

$

43,498

 

Service

 

7,510

 

7,611

 

15,732

 

15,395

 

Royalties from SEN

 

—

 

175

 

—

 

385

 

 

 

58,203

 

33,550

 

106,703

 

59,278

 

Cost of revenue

 

 

 

 

 

 

 

 

 

Product

 

33,690

 

22,658

 

64,010

 

40,890

 

Service

 

4,645

 

5,006

 

9,818

 

9,495

 

 

 

38,335

 

27,664

 

73,828

 

50,385

 

Gross profit

 

19,868

 

5,886

 

32,875

 

8,893

 

Operating expenses

 

 

 

 

 

 

 

 

 

Research and development

 

9,477

 

7,752

 

18,610

 

17,287

 

Sales and marketing

 

6,606

 

6,285

 

13,210

 

13,164

 

General and administrative

 

7,464

 

8,531

 

15,164

 

19,201

 

Restructuring charges

 

—

 

4,114

 

—

 

5,098

 

 

 

23,547

 

26,682

 

46,984

 

54,750

 

Loss from operations

 

(3,679

)

(20,796

)

(14,109

)

(45,857

)

Other income (expense)

 

 

 

 

 

 

 

 

 

Gain on sale of SEN

 

—

 

—

 

—

 

1,080

 

Equity loss of SEN

 

—

 

—

 

—

 

(3,238

)

Interest income

 

25

 

30

 

54

 

93

 

Interest expense

 

—

 

—

 

—

 

(1,676

)

Other, net

 

342

 

(1,311

)

(65

)

(1,516

)

 

 

367

 

(1,281

)

(11

)

(5,257

)

Loss before income taxes

 

(3,312

)

(22,077

)

(14,120

)

(51,114

)

Income taxes

 

1,217

 

302

 

1,510

 

420

 

Net loss

 

$

(4,529

)

$

(22,379

)

$

(15,630

)

$

(51,534

)

Net loss per share

 

 

 

 

 

 

 

 

 

Basic and diluted net loss per share

 

$

(0.04

)

$

(0.22

)

$

(0.15

)

$

(0.50

)

Shares used in computing basic and diluted net loss per share

 

 

 

 

 

 

 

 

 

Weighted average common shares

 

104,170

 

103,286

 

104,143

 

103,285

 

 

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Axcelis Technologies, Inc.

 

Consolidated Balance Sheets

 

In thousands

 

(Unaudited)

 

 

 

June 30,
2010

 

December 31,
2009

 

ASSETS

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

$

47,886

 

$

45,020

 

Restricted cash

 

4,047

 

4,918

 

Accounts receivable, net

 

34,264

 

19,094

 

Inventories, net

 

97,824

 

114,558

 

Prepaid expenses and other current assets

 

14,877

 

10,016

 

Total current assets

 

198,898

 

193,606

 

Property, plant and equipment, net

 

39,521

 

40,868

 

Long-term restricted cash

 

—

 

2,245

 

Other assets

 

10,255

 

13,884

 

 

 

$

248,674

 

$

250,603

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

 

$

17,854

 

$

9,680

 

Accrued compensation

 

10,402

 

9,267

 

Warranty

 

974

 

638

 

Income taxes

 

1,367

 

1,499

 

Deferred revenue

 

10,097

 

5,127

 

Other current liabilities

 

4,424

 

3,546

 

Total current liabilities

 

45,118

 

29,757

 

Long-term deferred revenue

 

895

 

563

 

Other long-term liabilities

 

3,630

 

3,884

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

Preferred stock

 

—

 

—

 

Common stock

 

104

 

104

 

Additional paid-in capital

 

490,686

 

488,321

 

Treasury stock

 

(1,218

)

(1,218

)

Accumulated deficit

 

(291,577

)

(275,947

)

Accumulated other comprehensive income

 

1,036

 

5,139

 

 

 

199,031

 

216,399

 

 

 

$

248,674

 

$

250,603

 

 

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Axcelis Technologies, Inc.

 

Consolidated Statements of Cash Flow

 

In thousands

 

(Unaudited)

 

 

 

Six months ended
June 30,

 

 

 

2010

 

2009

 

Cash flows from operating activities

 

 

 

 

 

Net loss

 

$

(15,630

)

$

(51,534

)

Adjustments to reconcile net loss to net cash used for operating activities

 

 

 

 

 

Undistributed loss of SEN

 

—

 

3,238

 

Depreciation and amortization

 

3,711

 

3,727

 

Gain on sale of SEN

 

—

 

(1,080

)

Accretion of premium on convertible debt

 

—

 

133

 

Stock-based compensation expense

 

1,568

 

1,316

 

Provision for excess inventory

 

1,331

 

7,492

 

Changes in operating assets & liabilities

 

 

 

 

 

Accounts receivable

 

(16,011

)

4,117

 

Inventories

 

13,844

 

9,229

 

Prepaid expenses and other current assets

 

(5,051

)

5,956

 

Accounts payable & other current liabilities

 

11,502

 

(5,932

)

Deferred revenue

 

5,366

 

(5,072

)

Income taxes

 

(110

)

139

 

Other assets and liabilities

 

1,673

 

(401

)

Net cash provided by (used for) operating activities

 

2,193

 

(28,672

)

Cash flows from investing activities

 

 

 

 

 

Expenditures for property, plant, and equipment

 

(480

)

(354

)

Decrease in restricted cash

 

3,116

 

1,741

 

Proceeds from sale of SEN

 

—

 

132,847

 

Payments related to sale of SEN

 

—

 

(10,590

)

Net cash provided by investing activities

 

2,636

 

123,644

 

Cash flows from financing activities

 

 

 

 

 

Repayment of convertible debt

 

—

 

(83,344

)

Financing fees and other expenses

 

(514

)

—

 

Proceeds from exercise of stock options

 

55

 

—

 

Proceeds from Employee Stock Purchase Plan

 

206

 

65

 

Net cash used for financing activities

 

(253

)

(83,279

)

Effect of exchange rate changes on cash

 

(1,710

)

384

 

Net increase in cash and cash equivalents

 

2,866

 

12,077

 

Cash and cash equivalents at beginning of period

 

45,020

 

37,694

 

Cash and cash equivalents at end of period

 

$

47,886

 

$

49,771

 

 

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