Axcelis (ACLS) 8-K Axcelis Announces Financial Results for Second Quarter 2018

Exhibit 99.1

News Release

AXCELIS ANNOUNCES FINANCIAL RESULTS FOR SECOND QUARTER 2018

Company Reports Accelerated Gross Margin Performance and Remains Confident in Future Growth

BEVERLY, Mass. — August 2, 2018—Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the second quarter ended June 30, 2018.

The Company reported second quarter revenue of $119.3 million, compared to $122.2 million for the first quarter of 2018. Operating profit for the quarter was $19.3 million, compared to $18.5 million for the first quarter. Net income for the quarter was $14.7 million, or $0.43 per diluted share, compared to net income for the first quarter of 2018 of $13.9 million, or $0.41 per diluted share. Cash, cash equivalents and restricted cash were $154.9 million at June 30, 2018, compared to $148.5 million on March 31, 2018.

“We’re very pleased with our financial performance in the second quarter driven by solid revenue and earnings growth. Our gross margin initiatives continue to deliver improvements, yielding results above guidance. Demand for our products remains strong across our diverse customer base, and the industry continues to be in a robust, sustained cycle fueled by growth in IoT and big data,” said President and CEO Mary Puma. “We are still targeting our $450 million business model in 2018, and anticipate 2019 to be another solid year for equipment CAPEX.”

Business Outlook

For the third quarter ending September 30, 2018, Axcelis expects revenues of between $95 and $100 million. Gross margin in the third quarter is expected to be around 40%. Third quarter operating profit is forecasted to be approximately $8-10 million. Earnings per share is expected to be between $0.15 and $0.20.

Second Quarter 2018 Conference Call

The Company will host a conference call today at 5:00 pm ET to discuss the Company’s results for the second quarter. 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 866.588.8911 (707.294.1561 outside North America). Participants calling into the conference call will be requested to provide the company name, Axcelis Technologies, and pass code: 2690966. Webcast replays will be available for 30 days following the call.

Safe Harbor Statement

This press release and the conference call contain forward-looking statements under the Private Securities

Litigation Reform Act safe harbor provisions. These statements, which include our expectations for spending in our industry and 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 that could cause actual results to differ materially from those in the forward-looking statements, many of which are outside the control of the Company, including that customer decisions to place orders or our product shipments may not occur when we expect, that orders may not be converted to revenue in any particular quarter, or at all, whether demand will continue for the semiconductor equipment we produce or, if not, whether we can successfully meet changing market requirements, and whether we will be able to maintain continuity of business relationships with and purchases by major customers. Increased competitive pressure on sales and pricing, increases in material and other production costs that cannot be recouped in product pricing and instability caused by changing global economic, political or financial conditions could also cause actual results to differ materially from those in our forward-looking statements. 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 40 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 ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
Revenue:
Product	$	112,521		$	96,539		$	228,543		$	178,517
Services	6,812			6,251			12,975			11,166
Total revenue	119,333			102,790			241,518			189,683
Cost of Revenue:
Product	63,913			57,689			132,287			104,486
Services	6,420			6,039			13,075			11,421
Total cost of revenue	70,333			63,728			145,362			115,907
Gross profit	49,000			39,062			96,156			73,776
Operating expenses:
Research and development	12,553			11,256			24,786			21,151
Sales and marketing	8,912			7,485			17,323			14,534
General and administrative	8,268			7,791			16,278			14,848
Total operating expenses	29,733			26,532			58,387			50,533
Income from operations	19,267			12,530			37,769			23,243
Other (expense) income:
Interest income	515			111			925			180
Interest expense	(1,127		)	(1,336		)	(2,464		)	(2,447		)
Other, net	(1,016		)	16			(1,118		)	(138		)
Total other expense	(1,628		)	(1,209		)	(2,657		)	(2,405		)
Income before income taxes	17,639			11,321			35,112			20,838
Income tax provision (benefit)	2,970			(2,611		)	6,528			(2,600		)
Net income	$	14,669		$	13,932		$	28,584		$	23,438
Net income per share:
Basic	$	0.46		$	0.46		$	0.89		$	0.78
Diluted	$	0.43		$	0.42		$	0.84		$	0.72
Shares used in computing net income per share:
Basic weighted average common shares	32,214			30,589			32,154			30,183
Diluted weighted average common shares	33,942			33,168			34,048			32,779

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)

	June 30,			December 31,
	2018			2017
ASSETS
Current assets:
Cash and cash equivalents	$	147,297		$	133,407
Short-term restricted cash	730			750
Accounts receivable, net	74,429			75,302
Inventories, net	129,554			120,544
Prepaid expenses & other assets	10,925			9,772
Total current assets	362,935			339,775
Property, plant and equipment, net	36,312			36,168
Restricted cash	6,915			6,723
Deferred income taxes	77,005			83,148
Other assets	25,264			22,404
Total assets	$	508,431		$	488,218
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	$	32,633		$	32,642
Accrued compensation	12,727			20,955
Warranty	4,698			4,112
Income taxes	163			273
Deferred revenue	11,927			16,181
Other current liabilities	4,542			5,124
Total current liabilities	66,690			79,287
Sales leaseback obligation	47,735			47,714
Long-term deferred revenue	3,248			1,964
Other long-term liabilities	5,144			5,643
Total liabilities	122,817			134,608
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.001 par value, 75,000 shares authorized; 32,331 shares issued and outstanding at June 30, 2018; 32,048 shares issued and outstanding at December 31, 2017	32			32
Additional paid-in capital	559,207			556,147
Accumulated deficit	(174,561		)	(204,745		)
Accumulated other comprehensive income	936			2,176
Total stockholders’ equity	385,614			353,610
Total liabilities and stockholders’ equity	$	508,431		$	488,218