BEVERLY, Mass., Aug. 3,
2017 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS)
today announced financial results for the second quarter ended
June 30, 2017.
The Company reported second quarter revenue of $102.8 million, compared to $86.9 million for the first quarter of 2017.
Operating profit for the quarter was $12.5
million, compared to $10.7
million in the first quarter. Net income for the quarter was
$13.9 million, or $0.42 per diluted share, compared to net income
for the first quarter of 2017 of $9.5
million, or $0.29 per diluted
share. Total cash was $115.4 million
at June 30, 2017, compared to
$76.2 million on March 31, 2017.
In 2017, the Company adopted Accounting Standard Update No.
2016-09 (ASU 2016-09), which addresses accounting for equity
compensation expense and related tax effects. In the second
quarter, this new standard had a $2.8
million positive impact on our net income and a $0.09 positive impact on earnings per share. This
accounting change has no impact on the Company's operating results
or cash flow. Excluding the effect of ASU 2016-09, net income for
the quarter would have been $11.1
million, or $0.33 per diluted
share.
President and CEO Mary Puma
commented, "The Purion platform continued to gain momentum during
the quarter, driving robust financial performance and market share
gains. The industry remains in a period of strong growth with
increased spending in memory and IoT. We're very pleased that 2017
will be a strong year for Axcelis. With greater visibility into the
second half, we now anticipate total 2017 revenues of approximately
$380 million with market share
between 26 and 28 percent, at the high end of our previous
estimates."
Business Outlook
For the third quarter ending September 30,
2017, Axcelis expects revenues of approximately $95 million. Gross margin in the third quarter is
expected to be approximately 38%. Third quarter operating profit is
forecasted to be approximately $10-12
million with earnings per diluted share of $0.27-0.31, prior to any tax effect of ASU
2016-09. Total cash for the quarter is expected to be around
$120 million.
Second Quarter 2017 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 of 2017. The call will be available to
interested listeners via an audio webcast on 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: 44383784. Webcast replays will be
available for 30 days following the call.
Use of Non-GAAP Financial Results
Adjusting net income
to exclude the effects of income tax benefits and provisions of ASU
2016-09 is a non-GAAP financial measure. Since the Company is not a
cash income tax payer in the US and ASU 2016-09 has had a
significant impact on our reported net income in the second
quarter, management will use adjusted net income and adjusted net
income per diluted share to assist in our understanding of the
Company's operating and financial performance. The Company believes
the presentation of these non-GAAP results is useful to investors
for analyzing business trends and comparing performance to prior
periods, along with enhancing investors' ability to view the
Company's results from management's perspective. The
presentation of supplemental non-GAAP information is not meant to
be considered in isolation or as a substitute for results prepared
and presented in accordance with GAAP.
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
expectations for increased 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, 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
ended
June
30,
|
|
Six months
ended
June
30,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
$
|
96,539
|
|
$
|
58,859
|
|
$
|
178,517
|
|
$
|
121,034
|
|
Services
|
|
6,251
|
|
|
5,592
|
|
|
11,166
|
|
|
10,938
|
|
|
Total
revenue
|
|
102,790
|
|
|
64,451
|
|
|
189,683
|
|
|
131,972
|
Cost of
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
57,689
|
|
|
34,638
|
|
|
104,486
|
|
|
74,902
|
|
Services
|
|
6,039
|
|
|
4,682
|
|
|
11,421
|
|
|
8,523
|
|
|
Total cost of
revenue
|
|
63,728
|
|
|
39,320
|
|
|
115,907
|
|
|
83,425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
39,062
|
|
|
25,131
|
|
|
73,776
|
|
|
48,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
11,256
|
|
|
8,478
|
|
|
21,151
|
|
|
17,114
|
|
Sales and
marketing
|
|
7,485
|
|
|
5,790
|
|
|
14,534
|
|
|
11,750
|
|
General and
administrative
|
|
7,791
|
|
|
6,232
|
|
|
14,848
|
|
|
12,274
|
|
Restructuring
charges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
282
|
|
|
Total operating
expenses
|
|
26,532
|
|
|
20,500
|
|
|
50,533
|
|
|
41,420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
12,530
|
|
|
4,631
|
|
|
23,243
|
|
|
7,127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense)
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
111
|
|
|
54
|
|
|
180
|
|
|
108
|
|
Interest
expense
|
|
(1,336)
|
|
|
(1,338)
|
|
|
(2,447)
|
|
|
(2,385)
|
|
Other, net
|
|
16
|
|
|
(238)
|
|
|
(138)
|
|
|
(297)
|
|
|
Total other
expense
|
|
(1,209)
|
|
|
(1,522)
|
|
|
(2,405)
|
|
|
(2,574)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
11,321
|
|
|
3,109
|
|
|
20,838
|
|
|
4,553
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit)
provision
|
|
(2,611)
|
|
|
172
|
|
|
(2,600)
|
|
|
(332)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
13,932
|
|
$
|
2,937
|
|
$
|
23,438
|
|
$
|
4,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.46
|
|
$
|
0.10
|
|
$
|
0.78
|
|
$
|
0.17
|
|
|
Diluted
|
$
|
0.42
|
|
$
|
0.10
|
|
$
|
0.72
|
|
$
|
0.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average common shares
|
|
30,589
|
|
|
29,097
|
|
|
30,183
|
|
|
29,066
|
|
|
Diluted weighted
average common shares
|
|
33,168
|
|
|
30,701
|
|
|
32,779
|
|
|
30,607
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Axcelis
Technologies, Inc. Consolidated Balance
Sheets (In thousands,
except per share amounts) (Unaudited)
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
108,558
|
|
$
|
70,791
|
|
Accounts receivable,
net
|
|
|
48,561
|
|
|
50,573
|
|
Inventories,
net
|
|
|
122,574
|
|
|
113,853
|
|
Prepaid expenses and
other assets
|
|
|
36,639
|
|
|
29,310
|
|
Property, plant and
equipment, net
|
|
|
31,617
|
|
|
30,840
|
|
Restricted
cash
|
|
|
6,793
|
|
|
6,864
|
|
|
Total assets
|
|
$
|
354,742
|
|
$
|
302,231
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
27,606
|
|
$
|
24,996
|
|
Accrued
compensation
|
|
|
12,170
|
|
|
5,142
|
|
Warranty
|
|
|
3,872
|
|
|
2,668
|
|
Income taxes
|
|
|
255
|
|
|
240
|
|
Deferred
revenue
|
|
|
14,902
|
|
|
11,009
|
|
Sale leaseback
obligation
|
|
|
47,692
|
|
|
47,586
|
|
Other
liabilities
|
|
|
9,807
|
|
|
9,135
|
|
|
Total
liabilities
|
|
|
116,304
|
|
|
100,776
|
|
|
|
|
|
|
|
|
|
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, 75,000 shares authorized;
31,180 shares issued and outstanding at June 30, 2017;
29,518
shares issued and outstanding at December 31, 2016
|
|
31
|
|
|
30
|
|
Additional paid-in
capital
|
|
|
546,491
|
|
|
535,408
|
|
Accumulated
deficit
|
|
|
(308,266)
|
|
|
(331,704)
|
|
Accumulated other
comprehensive income (loss)
|
|
|
182
|
|
|
(2,279)
|
|
|
Total stockholders'
equity
|
|
|
238,438
|
|
|
201,455
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
354,742
|
|
$
|
302,231
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Axcelis Technologies, Inc.