Axcelis (ACLS) 8-K Axcelis Announces Financial Results for Second Quarter 2014

Exhibit 99.1

News Release

AXCELIS ANNOUNCES FINANCIAL RESULTS FOR SECOND QUARTER 2014

First Purion H™ High Current Implanter Shipped

BEVERLY, Mass. — August 4, 2014—Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the second quarter ended June 30, 2014. Highlights for the quarter were:

·The first Purion H™ high current implanter was shipped to a leading Asia-Pacific chipmaker, where it will join Purion XE™ and Purion M™ systems already in place. This customer now has all three members of the Purion product family and will be the first to truly see the benefit of the ‘Power of Purion’.

·Received the third order for the innovative Purion M™ medium current implanter from a large foundry after a successful evaluation.

·Achieved “Ranked 1st” Awards in the Annual VLSIresearch Customer Satisfaction Survey. Customers voted Axcelis #1 in THE BEST Suppliers of Fab Equipment, #1 in Implant Equipment, and the #1 10 BEST Focused Supplier.

The Company reported second quarter revenue of $41.2 million, compared to $60.8 million for the first quarter of 2014. Loss from operations for the quarter was $6.1 million, compared to operating income of $0.3 million for the first quarter of 2014. Net loss for the quarter was $6.9 million, or $(0.06) per share. This compares to net income for the first quarter of 2014 of $0.2 million, or $0.00 per share. Cash and cash equivalents were $35.6 million at June 30, 2014 compared with $43.0 million at March 31, 2014.

Chairman and CEO Mary Puma said, “Momentum for Purion products continues as customers recognize advantages in precision, purity and productivity the platform provides for advanced planar and 3D processes. The current industry pause gives Purion products additional time to be evaluated and adopted. When spending resumes, Axcelis will be better positioned to sell the full family of Purion products.”

Kevin Brewer, executive vice president and CFO added, “In light of market conditions, we have implemented a series of cost cutting actions that in the third quarter bring our quarterly breakeven to under $50M and our operating cash breakeven to under $42M. We will continue to make investments in Purion platform development and product penetrations, and customer satisfaction, that will deliver top line growth.”

Second Quarter 2014 Conference Call

The Company will host a conference call today at 5:00 pm ET to discuss results for the second quarter 2014. The call will be available to interested listeners via an audio webcast that can be accessed through the Investors page of Axcelis’ website at www.axcelis.com, or by dialing 1.888.680.0879 (1.617.213.4856 outside North America).  Participants calling into the conference call will be requested to provide the company name, Axcelis Technologies, and pass code: 57721554. Webcast replays will be available for 30 days following the call.

Safe Harbor Statement

The conference call will 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 (Nasdaq: ACLS), headquartered in Beverly, Mass., 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 systems, one of the most critical and enabling steps in the IC manufacturing process. Learn more about Axcelis at 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 endedJune 30,						Six months endedJune 30,
	2014			2013			2014			2013
Revenue:
Product	$	34,795		$	40,769		$	89,810		$	75,220
Services	6,355			6,732			12,180			13,006
Total revenue	41,150			47,501			101,990			88,226
Cost of revenue:
Product	21,021			25,457			54,823			47,638
Services	5,645			5,307			10,943			10,910
Total cost of revenue	26,666			30,764			65,766			58,548
Gross profit	14,484			16,737			36,224			29,678
Operating expenses:
Research and development	8,845			8,503			18,102			17,709
Sales and marketing	5,037			5,594			10,513			10,796
General and administrative	6,494			6,412			12,975			13,001
Gain on sale of dry strip assets and intellectual property	—			(799		)	—			(1,167		)
Restructuring charges	160			421			360			2,222
Total operating expenses	20,536			20,131			41,950			42,561
Loss from operations	(6,052		)	(3,394		)	(5,726		)	(12,883		)
Other income (expense):
Interest income	2			3			4			6
Interest expense	(257		)	(51		)	(508		)	(115		)
Other, net	(362		)	(314		)	(70		)	580
Total other income (expense)	(617		)	(362		)	(574		)	471
Loss before income taxes	(6,669		)	(3,756		)	(6,300		)	(12,412		)
Income taxes	231			263			426			596
Net loss	$	(6,900	)	$	(4,019	)	$	(6,726	)	$	(13,008	)
Net loss per share
Basic and Diluted	$	(0.06	)	$	(0.04	)	$	(0.06	)	$	(0.12	)
Shares used in computing net loss per share:
Basic and diluted weighted average common shares	111,212			108,409			110,932			108,319

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)

	June 30, 2014			December 31, 2013
ASSETS
Current assets:
Cash and cash equivalents	$	35,588		$	46,290
Accounts receivable, net	32,067			36,587
Inventories, net	106,650			95,789
Prepaid expenses and other current assets	7,572			6,242
Total current assets	181,877			184,908
Property, plant and equipment, net	31,340			32,006
Long-term restricted cash	825			825
Other assets	12,539			15,810
Total assets	$	226,581		$	233,549
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	17,379		$	19,451
Accrued compensation	3,975			4,845
Warranty	1,326			1,316
Income taxes	430			417
Deferred revenue	4,227			4,387
Current portion of long-term debt	1,054			471
Other current liabilities	3,681			4,573
Total current liabilities	32,072			35,460
Long-term debt	13,946			14,529
Long-term deferred revenue	101			322
Other long-term liabilities	7,136			7,236
Total liabilities	53,255			57,547
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; 111,643 shares issued and 111,523 shares outstanding at June 30, 2014; 110,225 shares issued and 110,105 shares outstanding at December 31, 2013	112			110
Additional paid-in capital	514,946			510,992
Treasury stock, at cost, 120 shares at June 30, 2014 and December 31, 2013	(1,218		)	(1,218		)
Accumulated deficit	(346,347		)	(339,621		)
Accumulated other comprehensive income	5,833			5,739
Total stockholders’ equity	173,326			176,002
Total liabilities and stockholders’ equity	$	226,581		$	233,549

Axcelis Technologies, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	Six months ended
	June 30,
	2014			2013
Cash flows from operating activities
Net loss	$	(6,726	)	$	(13,008	)
Adjustments to reconcile net loss to net cash used for operating activities:
Depreciation and amortization	2,299			2,719
Gain on sale of dry strip assets and intellectual property	—			(1,167		)
Deferred taxes	334			52
Stock-based compensation expense	2,182			1,644
Provision for excess and obsolete inventory	244			2,370
Changes in operating assets & liabilities:
Accounts receivable	4,493			(5,587		)
Inventories	(10,917		)	431
Prepaid expenses and other current assets	(1,334		)	(1,049		)
Accounts payable and other current liabilities	(3,860		)	5,642
Deferred revenue	(377		)	(891		)
Income taxes	13			(48		)
Other assets and liabilities	1,794			(1,905		)
Net cash used for operating activities	(11,855		)	(10,797		)
Cash flows from investing activities
Proceeds from sale of dry strip assets and intellectual property	—			1,200
Purchases of property, plant, and equipment	(567		)	(336		)
Decrease in restricted cash	—			2
Net cash (used for) provided by investing activities	(567		)	866
Cash flows from financing activities
Proceeds from exercise of stock options	1,583			206
Proceeds from Employee Stock Purchase Plan	227			197
Net cash provided by financing activities	1,810			403
Effect of exchange rate changes on cash and cash equivalents	(90		)	(819		)
Net decrease in cash and cash equivalents	(10,702		)	(10,347		)
Cash and cash equivalents at beginning of period	46,290			44,986
Cash and cash equivalents at end of period	$	35,588		$	34,639