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 |
|