Exhibit 99.1
AXCELIS ANNOUNCES IMPROVED FINANCIAL RESULTS
FOR THIRD QUARTER 2009
BEVERLY, Mass.—November 5, 2009—Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced improved financial results for the third quarter ended September 30, 2009.
Operations
The Company reported third quarter revenue of $35.0 million, compared to $33.6 million for the second quarter of 2009. Net loss for the third quarter was $15.9 million, or $0.15 per share. This compares to a net loss for the second quarter of 2009 of $22.4 million, or $0.22 per share of which $4.1 million ($.04 per share) was attributable to restructuring charges. In the corresponding quarter for the previous year, the Company reported revenue of $46.5 million, and a net loss of $24.7 million, or $0.24 per share.
Balance Sheet
Cash and cash equivalents, including restricted cash, were $48.5 million at September 30, 2009. Cash burn ($8.5 million in the third quarter of which $2.4 million was attributable to restructuring costs) continues to decline and we expect to approach cash flow break even in the fourth quarter of 2009. The Company ended the quarter with working capital of $177.5 million. Working capital management remains a focus to enhance cash flow. During 2009 the Company has reduced inventories by $17.2 million through the sale of product on hand.
Commenting on the Company’s performance, Mary Puma, chairman and CEO, stated, “We’re pleased to report improving financial results this quarter in terms of reducing our losses and
slowing our cash burn. Actions taken to reduce operating expenses and increase efficiencies throughout the organization are having, and will continue to have, a positive effect on cash flow and profitability. In fact, we expect to approach cash breakeven in the fourth quarter, as increased fab utilization drives aftermarket business and new systems orders.” She added, ‘We’ve also made solid progress with our product portfolio through enhancements to productivity and advanced process capabilities. Consequently, we are well positioned to meet customers’ technology demands and benefit from enhanced earnings leverage moving into 2010.”
Third Quarter 2009 Conference Call
The Company will also be hosting a conference call today at 5:00 pm ET to discuss results for the third quarter of 2009. The call will be available to interested listeners via an audio webcast at Axcelis’ home page at www.axcelis.com, or by dialing 1-888-680-0892 (1-617-213-4858 outside North America). Participants calling into the conference call will be requested to provide the passcode: 99888481. Webcast and telephone replays will be available from 8 pm ET on November 5, 2009 until 11:59 pm on February 5, 2010. Dial 1-888-286-8010 (1-617-801-6888 outside North America), and enter conference ID code#71293614.
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
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 | | Nine months ended | |
| | September 30, | | September 30, | |
| | 2009 | | 2008 | | 2009 | | 2008 | |
Revenue | | | | | | | | | |
Product | | $ | 25,871 | | $ | 32,490 | | $ | 69,369 | | $ | 163,543 | |
Service | | 9,132 | | 13,163 | | 24,527 | | 41,360 | |
Royalties, primarily from SEN | | 4 | | 801 | | 389 | | 3,334 | |
| | 35,007 | | 46,454 | | 94,285 | | 208,237 | |
Cost of revenue | | | | | | | | | |
Product | | 21,681 | | 22,759 | | 62,571 | | 112,906 | |
Service | | 5,506 | | 6,536 | | 15,001 | | 21,866 | |
| | 27,187 | | 29,295 | | 77,572 | | 134,772 | |
| | | | | | | | | |
Gross profit | | 7,820 | | 17,159 | | 16,713 | | 73,465 | |
| | | | | | | | | |
Operating expenses | | | | | | | | | |
Research and development | | 7,648 | | 15,873 | | 24,935 | | 49,680 | |
Sales and marketing | | 5,700 | | 12,381 | | 18,864 | | 36,760 | |
General and administrative | | 7,874 | | 10,562 | | 27,075 | | 31,254 | |
Amortization of intangible assets | | — | | 656 | | — | | 1,968 | |
Restructuring charges | | 430 | | 444 | | 5,528 | | 3,512 | |
| | 21,652 | | 39,916 | | 76,402 | | 123,174 | |
| | | | | | | | | |
Loss from operations | | (13,832 | ) | (22,757 | ) | (59,689 | ) | (49,709 | ) |
| | | | | | | | | |
Other income (expense) | | | | | | | | | |
Gain on sale of SEN | | — | | — | | 1,080 | | — | |
Equity loss of SEN | | — | | (968 | ) | (3,238 | ) | (1,100 | ) |
Interest income | | 59 | | 319 | | 152 | | 1,400 | |
Interest expense | | — | | (1,724 | ) | (1,676 | ) | (5,005 | ) |
Other, net | | (1,681 | ) | 763 | | (3,197 | ) | 314 | |
| | (1,622 | ) | (1,610 | ) | (6,879 | ) | (4,391 | ) |
| | | | | | | | | |
Loss before income taxes | | (15,454 | ) | (24,367 | ) | (66,568 | ) | (54,100 | ) |
| | | | | | | | | |
Income taxes | | 444 | | 374 | | 864 | | 1,118 | |
| | | | | | | | | |
Net loss | | $ | (15,898 | ) | $ | (24,741 | ) | $ | (67,432 | ) | $ | (55,218 | ) |
| | | | | | | | | |
Net loss per share | | | | | | | | | |
Basic and diluted net loss per share | | $ | (0.15 | ) | $ | (0.24 | ) | $ | (0.65 | ) | $ | (0.54 | ) |
| | | | | | | | | |
Shares used in computing basic and diluted net loss per share | | | | | | | | | |
Weighted average common shares outstanding | | 103,850 | | 103,002 | | 103,475 | | 102,635 | |
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Axcelis Technologies, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
| | September 30, | | December 31, | |
| | 2009 | | 2008 | |
ASSETS | | | | | |
Current assets | | | | | |
Cash and cash equivalents | | $ | 41,244 | | $ | 37,694 | |
Restricted cash | | 7,239 | | 8,654 | |
Accounts receivable, net | | 26,632 | | 27,486 | |
Inventories, net | | 123,630 | | 150,113 | |
Prepaid expenses and other current assets | | 10,931 | | 17,231 | |
Total current assets | | 209,676 | | 241,178 | |
| | | | | |
Property, plant and equipment, net | | 41,940 | | 44,432 | |
Investment in SEN | | — | | 156,677 | |
Other assets | | 10,875 | | 12,894 | |
| | $ | 262,491 | | $ | 455,181 | |
| | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | |
Current liabilities | | | | | |
Accounts payable | | $ | 6,432 | | $ | 8,066 | |
Accrued compensation | | 10,938 | | 15,841 | |
Warranty | | 1,029 | | 3,137 | |
Income taxes | | 856 | | 337 | |
Deferred revenue | | 10,093 | | 12,508 | |
Other current liabilities | | 2,868 | | 6,897 | |
Current portion of convertible subordinated debt | | — | | 83,210 | |
Total current liabilities | | 32,216 | | 129,996 | |
| | | | | |
Long-term deferred revenue | | 659 | | 1,872 | |
Other long-term liabilities | | 3,982 | | 3,936 | |
| | | | | |
Stockholders’ equity | | | | | |
Preferred stock | | — | | — | |
Common stock | | 104 | | 103 | |
Additional paid-in capital | | 487,047 | | 483,546 | |
Treasury stock | | (1,218 | ) | (1,218 | ) |
Accumulated deficit | | (265,911 | ) | (198,479 | ) |
Accumulated other comprehensive income | | 5,612 | | 35,425 | |
| | 225,634 | | 319,377 | |
| | $ | 262,491 | | $ | 455,181 | |
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