Exhibit 99.1
News Release |
AXCELIS ANNOUNCES FINANCIAL RESULTS FOR THIRD QUARTER 2013
BEVERLY, Mass. — November 6, 2013—Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the quarter ended September 30, 2013. Highlights for the quarter were:
· System sales were $20.2 million, a 22% increase over the second quarter of 2013, and a 59% increase over the first quarter.
· System bookings were up 60% and System backlog was up 35% from the second quarter 2013.
· The Company recognized revenue on its first Purion M medium current implanter.
The Company reported third quarter revenue of $48.8 million, compared to $47.5 million for the second quarter of 2013. Operating loss for the quarter was $2.8 million, compared to $3.4 million for the second quarter. Net loss for the quarter was $4.8 million, or ($0.04) per share. This compares to a net loss for the second quarter of 2013 of $4.0 million, or ($0.04) per share. Cash, cash equivalents and restricted cash were $50.7 million at September 30, 2013 compared with $34.7 million at June 30, 2013.
Chairman and CEO Mary Puma said, “The Purion platform continues to gain traction, our balance sheet is healthy, and Axcelis is well positioned to capitalize on the industry upturn. We expect to return to profitability in the fourth quarter. We also expect that during the current upturn we will return to our last quarterly peak revenues and maintain profitability through the cycle.”
Third Quarter 2013 Conference Call
The Company will host a conference call today at 5:00 pm ET to discuss results for the third quarter of 2013. An audio webcast will be available on the Investor page of Axcelis’ website at www.axcelis.com, or by dialing 1.888.680.0878 (1.617.213.4855 outside North America). Participants calling into the conference call will be requested to provide the passcode: 47494360. A replay of the webcast will be available for 30 days following the conference call.
Safe Harbor Statement
This press release and the conference call contain 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, 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, has been providing innovative, high-productivity solutions for the semiconductor industry for over 35 years. Axcelis is dedicated to developing enabling process applications through the design, manufacture and complete life cycle support of ion implantation, one of the most critical and enabling steps in the IC manufacturing process. The Company’s Internet address is: www.axcelis.com.
Company Contacts
Investor Relations:
Doug Lawson
978.787.9552
Editorial/Media:
Maureen Hart
978.787.4266
Axcelis Technologies, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
|
| Three months ended |
| Nine months ended |
| ||||||||
|
| September 30, |
| September 30, |
| ||||||||
|
| 2013 |
| 2012 |
| 2013 |
| 2012 |
| ||||
Revenue |
|
|
|
|
|
|
|
|
| ||||
Product |
| $ | 42,934 |
| $ | 37,093 |
| $ | 118,151 |
| $ | 136,096 |
|
Services |
| 5,897 |
| 7,547 |
| 18,907 |
| 22,664 |
| ||||
Total revenue |
| 48,831 |
| 44,640 |
| 137,058 |
| 158,760 |
| ||||
Cost of revenue |
|
|
|
|
|
|
|
|
| ||||
Product |
| 27,339 |
| 24,809 |
| 74,976 |
| 84,692 |
| ||||
Services |
| 4,516 |
| 5,464 |
| 15,427 |
| 16,377 |
| ||||
Total cost of revenue |
| 31,855 |
| 30,273 |
| 90,403 |
| 101,069 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Gross profit |
| 16,976 |
| 14,367 |
| 46,655 |
| 57,691 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Operating expenses |
|
|
|
|
|
|
|
|
| ||||
Research and development |
| 8,148 |
| 9,851 |
| 25,857 |
| 31,999 |
| ||||
Sales and marketing |
| 5,330 |
| 5,470 |
| 16,128 |
| 18,284 |
| ||||
General and administrative |
| 6,164 |
| 6,325 |
| 19,165 |
| 20,611 |
| ||||
Gain on sale of dry strip assets and intellectual property |
| — |
| — |
| (1,167 | ) | — |
| ||||
Restructuring charges |
| 112 |
| 578 |
| 2,334 |
| 3,612 |
| ||||
Total operating expenses |
| 19,754 |
| 22,224 |
| 62,317 |
| 74,506 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Loss from operations |
| (2,778 | ) | (7,857 | ) | (15,662 | ) | (16,815 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Other income (expense) |
|
|
|
|
|
|
|
|
| ||||
Interest income |
| 3 |
| 9 |
| 8 |
| 27 |
| ||||
Interest expense |
| (193 | ) | — |
| (308 | ) | — |
| ||||
Other, net |
| (1,252 | ) | (627 | ) | (671 | ) | (999 | ) | ||||
Total other income (expense) |
| (1,442 | ) | (618 | ) | (971 | ) | (972 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Loss before income taxes |
| (4,220 | ) | (8,475 | ) | (16,633 | ) | (17,787 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Income taxes |
| 530 |
| 243 |
| 1,125 |
| 1,429 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net loss |
| $ | (4,750 | ) | $ | (8,718 | ) | $ | (17,758 | ) | $ | (19,216 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Net loss per share |
|
|
|
|
|
|
|
|
| ||||
Basic and Diluted |
| $ | (0.04 | ) | $ | (0.08 | ) | $ | (0.16 | ) | $ | (0.18 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Shares used in computing net loss per share |
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Basic and diluted weighted average common shares |
| 109,074 |
| 107,855 |
| 108,573 |
| 107,521 |
|
Axcelis Technologies, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
|
| September 30, |
| December 31, |
| ||
ASSETS |
|
|
|
|
| ||
Current assets |
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 48,317 |
| $ | 44,986 |
|
Accounts receivable, net |
| 29,321 |
| 24,843 |
| ||
Inventories, net |
| 94,316 |
| 100,234 |
| ||
Restricted cash |
| 1,583 |
| 106 |
| ||
Prepaid expenses and other current assets |
| 5,066 |
| 5,056 |
| ||
Total current assets |
| 178,603 |
| 175,225 |
| ||
|
|
|
|
|
| ||
Property, plant and equipment, net |
| 32,311 |
| 34,413 |
| ||
Restricted cash, long-term |
| 825 |
| — |
| ||
Other assets |
| 15,542 |
| 12,520 |
| ||
Total assets |
| $ | 227,281 |
| $ | 222,158 |
|
|
|
|
|
|
| ||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
| ||
Current liabilities |
|
|
|
|
| ||
Accounts payable |
| $ | 16,075 |
| $ | 10,166 |
|
Accrued compensation |
| 7,309 |
| 7,283 |
| ||
Warranty |
| 1,461 |
| 1,700 |
| ||
Income taxes |
| 262 |
| 278 |
| ||
Deferred revenue |
| 3,911 |
| 6,423 |
| ||
Current portion of long-term debt |
| 185 |
| — |
| ||
Other current liabilities |
| 4,250 |
| 3,932 |
| ||
Total current liabilities |
| 33,453 |
| 29,782 |
| ||
|
|
|
|
|
| ||
Long-term debt |
| 14,815 |
| — |
| ||
Long-term deferred revenue |
| 154 |
| 456 |
| ||
Other long-term liabilities |
| 6,129 |
| 5,844 |
| ||
Total liabilities |
| 54,551 |
| 36,082 |
| ||
|
|
|
|
|
| ||
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; 109,586 shares issued and 109,466 shares outstanding at September 30, 2013;108,293 shares issued and 108,173 shares outstanding at December 31, 2012 |
| 110 |
| 108 |
| ||
Additional paid-in capital |
| 508,976 |
| 504,643 |
| ||
Treasury stock, at cost, 120 shares at September 30, 2013 and December 31, 2012 |
| (1,218 | ) | (1,218 | ) | ||
Accumulated deficit |
| (340,235 | ) | (322,477 | ) | ||
Accumulated other comprehensive income |
| 5,097 |
| 5,020 |
| ||
Total stockholders’ equity |
| 172,730 |
| 186,076 |
| ||
Total liabilities and stockholders’ equity |
| $ | 227,281 |
| $ | 222,158 |
|
Axcelis Technologies, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
|
| Nine months ended |
| ||||
|
| September 30, |
| ||||
|
| 2013 |
| 2012 |
| ||
Cash flows from operating activities |
|
|
|
|
| ||
Net loss |
| $ | (17,758 | ) | $ | (19,216 | ) |
Adjustments to reconcile net loss to net cash used for operating activities: |
|
|
|
|
| ||
Depreciation and amortization |
| 3,948 |
| 5,419 |
| ||
Gain on sale of dry strip assets and intellectual property |
| (1,167 | ) | — |
| ||
Deferred taxes |
| 272 |
| 998 |
| ||
Stock-based compensation expense |
| 3,105 |
| 3,411 |
| ||
Provision for excess inventory |
| 2,451 |
| 678 |
| ||
Changes in operating assets & liabilities |
|
|
|
|
| ||
Accounts receivable |
| (4,359 | ) | 10,143 |
| ||
Inventories |
| 3,455 |
| (3,496 | ) | ||
Prepaid expenses and other current assets |
| (429 | ) | 4,490 |
| ||
Accounts payable and other current liabilities |
| 6,276 |
| (11,601 | ) | ||
Deferred revenue |
| (2,816 | ) | (5,089 | ) | ||
Income taxes |
| (14 | ) | (135 | ) | ||
Other assets and liabilities |
| (3,813 | ) | 3,025 |
| ||
Net cash used for operating activities |
| (10,849 | ) | (11,373 | ) | ||
|
|
|
|
|
| ||
Cash flows from investing activities |
|
|
|
|
| ||
Proceeds from sale of dry strip assets and intellectual property |
| 1,200 |
| — |
| ||
Expenditures for property, plant, and equipment |
| (484 | ) | (536 | ) | ||
(Increase) decrease in restricted cash |
| (1,477 | ) | 1 |
| ||
Net cash used for investing activities |
| (761 | ) | (535 | ) | ||
|
|
|
|
|
| ||
Cash flows from financing activities |
|
|
|
|
| ||
Increase in restricted cash |
| (825 | ) | — |
| ||
Financing fees and other expenses |
| (473 | ) | — |
| ||
Proceeds from exercise of stock options |
| 1,113 |
| 863 |
| ||
Proceeds from Employee Stock Purchase Plan |
| 197 |
| 179 |
| ||
Proceeds from issuance of Term Loan |
| 15,000 |
| — |
| ||
Net cash provided by financing activities |
| 15,012 |
| 1,042 |
| ||
Effect of exchange rate changes on cash |
| (71 | ) | (791 | ) | ||
Net increase (decrease) in cash and cash equivalents |
| 3,331 |
| (11,657 | ) | ||
Cash and cash equivalents at beginning of period |
| 44,986 |
| 46,877 |
| ||
Cash and cash equivalents at end of period |
| $ | 48,317 |
| $ | 35,220 |
|