BEVERLY, Mass., Oct. 22, 2008 (GLOBE NEWSWIRE) -- Axcelis Technologies, Inc. (Nasdaq:ACLS), a leading supplier of ion implantation and cleaning systems, today announced a two-pronged restructuring plan that allows the Company to reduce operating costs and improve liquidity while continuing to penetrate new markets with its Optima and Integra product lines.
-- As part of the first component of the restructuring plan, Axcelis
is reducing its workforce by approximately 200 positions, or
roughly 14% of its employees worldwide. This along with other
cost out initiatives is expected to result in savings of $40
million annually. Axcelis expects to record restructuring charges
in the range of $3 million to $4 million during the fourth quarter
of 2008.
-- The second component of the plan includes the refinancing of
Axcelis' long term debt. The refinancing is intended to repay
convertible debt that comes due in January 2009 as well as to
secure sufficient liquidity to finance ongoing operations to
weather a prolonged downturn in the semiconductor market.
Refinancing plans are moving forward with a group of interested banks, and are expected to close in the fourth quarter of 2008.
Commenting on the company's plan, Chairman and CEO Mary Puma said, "We are pleased to have our refinancing plans well underway and intend to complete this transaction shortly. This restructuring, while difficult, was driven by the continued slowdown in the semiconductor market. Axcelis is committed to delivering improved financial results and these actions allow us to better align operating costs with near term revenue expectations. They do not affect our commitment to investment in ion implantation and dry strip technologies or customer service. We expect Axcelis to be well positioned to capitalize on opportunities once the market rebounds."
Safe Harbor Statement
This document contains forward-looking statements under the SEC safe harbor provisions. These statements, which include our estimations of the financial benefits of the restructuring and our success in refinancing our long term debt, 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 amount and timing of expenses associated with the restructuring, the willingness of interested creditors to complete the planned refinancing on terms acceptable to the Company or at all, and 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 Technologies, Inc.
Axcelis Technologies, Inc., 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 cycle support of ion implantation and cleaning systems. Axcelis also licenses its 50% owned joint venture, SEN Corporation, an SHI and Axcelis Company, to manufacture and sell certain implant products in Japan. The company's Internet address is: www.axcelis.com.