BEVERLY, Mass., Nov. 4, 2008 (GLOBE NEWSWIRE) -- Axcelis Technologies, Inc. (Nasdaq:ACLS) today announced financial results for the third quarter ended September 30, 2008. The Company reported third quarter revenues of $46.5 million, compared to $76.9 million for the second quarter of 2008. Net loss for the third quarter was $24.7 million, or $0.24 per share. This compares to a net loss for the second quarter of 2008 of $19.4 million, or $0.19 per share. In the corresponding quarter for the previous year, the Company reported revenues of $107.6 million, and net loss of $8.2 million, or $0.08 per share.
Commenting on the Company's performance, Chairman and CEO Mary Puma said, "In light of the continuing decline in wafer fab spending Axcelis remains focused on improving financial results, increasing liquidity and continuing to penetrate with our flagship Optima and Integra products." Puma continued, "We recently implemented a comprehensive restructuring plan, which combined with prior actions, has reduced Axcelis' global workforce by 31.5% since year end 2007. Realized cost savings, coupled with our ongoing efforts to refinance our debt will position Axcelis to weather this downturn and emerge a stronger business."
Third Quarter Detail
Shipments and Margins
Shipments for the third quarter, including aftermarket business, before provision for deferred revenue totaled $9.6 million. Geographically, Axcelis' systems shipments were to: Asia, 53%; North America, 40%; and Europe, 7%. The ion implantation business accounted for 85% of total systems shipments in the third quarter. Gross margin for the third quarter was 36.9%.
Orders and Backlog
Orders received for the third quarter (new systems bookings and aftermarket) totaled $49.5 million. New systems bookings, excluding aftermarket, amounted to $12.8 million. Backlog plus deferred systems revenue at quarter end was $37.0 million. Backlog consists of systems orders (aftermarket orders are excluded) that are generally scheduled to ship within six months.
Aftermarket Business
The Company's revenues include sales of spare parts and product upgrades as well as complete systems. We refer to the business of selling spare parts and product upgrades, combined with the sale of maintenance labor and service contracts and service hours as the "Aftermarket" business. Our Aftermarket business remains relatively stable despite the significant decrease in fab utilization and continues to generate margins that are accretive to the business as a whole. Revenue from our aftermarket business was $36.8 million for the three month period ended September 30, 2008, compared to $38.3 million for the second quarter of 2008 and $43.2 million for the corresponding period of the preceding year.
SEN Corporation, an SHI and Axcelis Company ("SEN")
Axcelis owns 50% of SEN, a Japanese company that is licensed by Axcelis to manufacture and sell certain implant products in Japan. SEN's revenue for the third quarter totaled $38.0 million. Revenues in Japan are also challenged by weak market conditions, reducing SEN's contribution to the Company.
Business Outlook
Axcelis' financial outlook for the fourth quarter of 2008 includes revenues in the range of $45 million to $60 million. The Company also forecasts a fourth quarter loss per share in the range of $0.24 to $0.28, including the effect of restructuring charges of $0.03 to $0.04 per share. The Axcelis share of SEN net loss is projected to be in the range of $1 to $2 million. Royalties from SEN are projected in the range of $0.5 million to $1 million. Operating expenses for the quarter are forecast to be approximately at $36 million. Axcelis assumes no responsibility to update guidance. Axcelis will only confirm or update guidance via a press release.
Safe Harbor Statement
This document contains 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, our ability to implement successfully our profit plans, 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.
Axcelis Technologies, Inc.
Consolidated Balance Sheets
In thousands
(Unaudited)
September 30, December 31,
2008 2007
------------ ------------
Assets
Current assets
Cash and cash equivalents $ 49,727 $ 83,877
Restricted cash 12,641 17,018
Accounts receivable, net 36,571 76,067
Inventories, net 177,012 169,278
Prepaid expenses and other current
assets 19,216 32,442
------------ ------------
Total current assets 295,167 378,682
Property, plant and equipment, net 63,997 68,101
Investment in SEN 136,131 132,911
Goodwill 42,115 42,115
Intangible assets 8,957 10,925
Other assets 33,374 37,195
------------ ------------
$ 579,741 $ 669,929
============ ============
Liabilities and stockholders' equity
Current liabilities
Accounts payable $ 12,589 $ 27,054
Accrued compensation 14,925 17,003
Warranty 3,166 5,011
Income taxes 754 531
Deferred revenue 15,107 35,827
Other current liabilities 5,294 8,577
Current portion of convertible
subordinated debt 82,364 --
------------ ------------
Total current liabilities 134,199 94,003
Convertible subordinated debt -- 79,923
Long-term deferred revenue 3,308 4,704
Other long-term liabilities 4,858 5,293
Stockholders' equity
Preferred Stock -- --
Common stock 103 103
Additional paid-in capital 482,725 478,726
Treasury stock (1,218) (1,218)
Accumulated deficit (57,033) (1,815)
Accumulated other comprehensive income 12,799 10,210
------------ ------------
437,376 486,006
------------ ------------
$ 579,741 $ 669,929
============ ============
Axcelis Technologies, Inc.
Consolidated Statements of Operations
In thousands, except per share amounts
(unaudited)
Three Months ended Nine Months ended
September 30, September 30,
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
Revenue 46,454 107,553 208,237 315,152
Cost of Revenue 29,295 71,284 134,772 194,043
Gross Profit 17,159 36,269 73,465 121,109
Operating Expense
Research and development 15,873 18,288 49,680 54,114
Sales and marketing 12,381 12,411 36,760 38,495
General and administrative 10,562 10,367 31,254 31,037
Impairment of goodwill -- 4,658 -- 4,658
Amortization of intangible
assets 656 656 1,968 1,968
Restructuring charges 444 -- 3,512 --
-------- -------- -------- --------
39,916 46,380 123,174 130,272
-------- -------- -------- --------
Loss from operations (22,757) (10,111) (49,709) (9,163)
Other Income Expense
Equity income (loss) of SEN (968) 1,767 (1,100) 8,340
Interest income 319 1,224 1,400 3,824
Interest expense (1,724) (1,587) (5,005) (4,822)
Other-net 763 254 314 505
-------- -------- -------- --------
(1,610) 1,658 (4,391) 7,847
-------- -------- -------- --------
Loss before income taxes (24,367) (8,453) (54,100) (1,316)
Income taxes (credits) 374 (256) 1,118 (536)
-------- -------- -------- --------
Net loss $(24,741) $ (8,197) $(55,218) $ (780)
======== ======== ======== ========
Net loss per share
Basic $ (0.24) $ (0.08) $ (0.54) $ (0.01)
Diluted (0.24) (0.08) (0.54) (0.01)
Shares used in computing net
loss per share
Basic 103,002 102,206 102,635 101,772
Diluted 103,002 102,206 102,635 101,772