Axcelis Announces Financial Results for First Quarter 2010

Company Reports 25% Increase in Revenues and 45% Increase in Shipments


BEVERLY, Mass., May 4, 2010 (GLOBE NEWSWIRE) -- Axcelis Technologies, Inc. (Nasdaq:ACLS) today announced financial results for the quarter ended March 31, 2010.

The Company reported first quarter revenue of $48.5 million, compared to $38.7 million for the fourth quarter of 2009, a 25% increase. Net loss for the first quarter was $11.1 million, or $0.11 per share. This compares to a net loss for the fourth quarter of 2009 of $10.0 million, or $0.10 per share. Cash and cash equivalents, including restricted cash, were $41.6 million at March 31, 2010. The company used $10.2 million in cash during the quarter. The Company ended the quarter with working capital of $157.3 million.

Commenting on the Company's performance, Mary Puma, chairman and CEO, stated, "Our business continues to strengthen as demand for our customers' products increases and additional manufacturing capacity is required. As a result, we are experiencing robust growth in both new system orders and aftermarket sales. During the quarter we secured significant penetrations in high current implant and cleaning at logic, memory and foundry chip manufacturers, and we expect this traction to continue as customers recognize the competitive advantages our technology provides. We are confident that this will translate into improving financial performance throughout 2010, including a return to profitability and positive cash flow generation."

First Quarter 2010 Conference Call

The Company will host a conference call today at 5:00 pm ET to discuss results for the first quarter 2010. The call will be available to interested listeners via an audio webcast that can be accessed through Axcelis' home page at www.axcelis.com, or by dialing 1-888-713-4218 (1- 617-213-4870 outside North America). Participants calling into the conference call will be requested to provide the company name, Axcelis Technologies and pass code: 58143672. Webcast and telephone replays will be available from 8 pm ET on May 4, 2010 until 11:59 pm on July 29, 2010. Dial 1- 888-286-8010 (617-801-6888 outside North America), and enter conference ID code# 48979281.

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

Axcelis Technologies, Inc. (Nasdaq:ACLS) 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 support of ion implantation and cleaning systems. The company's Internet address is: www.axcelis.com.

Axcelis Technologies, Inc.
Consolidated Statements of Operations
In thousands, except per share amounts
(Unaudited)
   
  Three months ended
  March 31,
  2010 2009
Revenue    
Product  $ 40,278  $ 17,734
Service 8,222 7,784
Royalties, primarily from SEN  --  210
  48,500 25,728
Cost of revenue    
Product 30,320 18,232
Service 5,173 4,489
  35,493 22,721
     
Gross profit 13,007 3,007
Operating expenses    
 Research and development 9,133 9,535
 Sales and marketing 6,604 6,879
 General and administrative 7,700 10,670
 Restructuring charges  --   984
   23,437  28,068
     
Loss from operations (10,430) (25,061)
     
Other income (expense)    
 Gain on sale of SEN  --  1,080
 Equity loss of SEN  --  (3,238)
 Interest income 29 63
 Interest expense  --  (1,676)
 Other, net (407) (205)
  (378) (3,976)
     
Loss before income taxes (10,808) (29,037)
     
Income taxes  293 118
     
Net loss  $ (11,101)  $ (29,155)
     
Net loss per share    
Basic and diluted net loss per share   $ (0.11)  $ (0.28)
     
Shares used in computing basic and diluted net loss per share    
Weighted average common shares   104,116  103,284
     
Axcelis Technologies, Inc.
Consolidated Balance Sheets
In thousands
(Unaudited)
    March 31, December 31,
    2010 2009
ASSETS      
Current assets      
Cash and cash equivalents    $ 34,801  $ 45,020
Restricted cash    6,843  4,918
Accounts receivable, net     34,293  19,094
Inventories, net    105,205  114,558
Prepaid expenses and other current assets    10,474  10,016
Total current assets    191,616  193,606
       
Property, plant and equipment, net  40,226  40,868
Long-term restricted cash    --  2,245
Other assets    12,700  13,884
     $ 244,542  $ 250,603
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
Current liabilities      
Accounts payable    $ 12,822  $ 9,680
Accrued compensation     10,627  9,267
Warranty     730  638
Income taxes     1,099  1,499
Deferred revenue    5,295  5,127
Other current liabilities    3,760  3,546
Total current liabilities    34,333  29,757
       
Long-term deferred revenue    910  563
Other long-term liabilities    3,781  3,884
       
Stockholders' equity      
Preferred stock    --   -- 
Common stock    104  104
Additional paid-in capital    489,308  488,321
Treasury stock    (1,218)  (1,218)
Accumulated deficit    (287,048)  (275,947)
Accumulated other comprehensive income  4,372  5,139
     205,518  216,399
     $ 244,542  $ 250,603
       
     
Axcelis Technologies, Inc.
Consolidated Statements of Cash Flow
In thousands
(Unaudited)
  Three months ended
  March 31,
  2010 2009
Cash flows from operating activities    
Net loss  $ (11,101)  $ (29,155)
Adjustments to reconcile net loss to net cash used for
operating activities
   
Undistributed loss of SEN  --   3,238
Depreciation and amortization  1,937  1,861
Gain on sale of SEN  --   (1,080)
Deferred Taxes  167  -- 
Accretion of premium on convertible debt  --   133
Stock-based compensation expense  817  858
Provision for excess inventory  758  4,727
Changes in operating assets & liabilities    
Accounts receivable  (15,425)  6,228
Inventories  8,252  2,973
Prepaid expenses and other current assets  (362)  1,615
Accounts payable & other current liabilities  4,922  (3,297)
Deferred revenue  526  11
Income taxes  (408)  76
Other assets and liabilities  54  (270)
Net cash used for operating activities  (9,863)  (12,082)
Cash flows from investing activities    
Expenditures for property, plant, and equipment  (263)  (213)
Decrease in restricted cash  319  -- 
Proceeds from sale of SEN  --   129,377
Net cash provided by investing activities  56  129,164
Cash flows from financing activities    
Repayment of convertible debt   --   (83,344)
Financing fees and other expenses  (431)  -- 
Proceeds from exercise of stock options  32  -- 
Proceeds from Employee Stock Purchase Plan  169  182
Net cash used for financing activities  (230)  (83,162)
Effect of exchange rate changes on cash  (182)  (371)
Net increase (decrease) in cash and cash equivalents  (10,219)  33,549
Cash and cash equivalents at beginning of period  45,020  37,694
Cash and cash equivalents at end of period  $ 34,801  $ 71,243
     


            

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