BEVERLY, Mass., July 28, 2010 (GLOBE NEWSWIRE) -- Axcelis Technologies, Inc. (Nasdaq:ACLS) today announced financial results for the quarter ended June 30, 2010.
The Company reported second quarter revenue of $58.2 million, compared to $48.5 million for the first quarter of 2010, a 20% increase. Net loss for the second quarter was $4.5 million, or $0.04 per share. This compares to a net loss for the first quarter of 2010 of $11.1 million, or $0.11 per share. Cash and cash equivalents, including restricted cash, were $51.9 million at June 30, 2010. The Company generated positive cash flow from operations of $12.1 million for the quarter and ended the quarter with working capital of $153.8 million.
"We had a much improved second quarter, posting better than expected results," said Mary Puma, chairman and CEO. "We saw substantial increases in revenues, cash flow and orders for both capacity expansions and leading-edge process design wins from all regions of the world. This has had a very positive effect on our financial performance; we generated positive cash flow from operations for the first half of the year and remain well on track to return to profitability." She continued, "We are seeing growing demand from both new and existing customers for our high current product line due to significant productivity and device performance advantages the Optima HDx system provides. We expect this to translate into market share gains in 2010 and beyond."
Second Quarter 2010 Conference Call
The Company will host a conference call today at 5:00 pm ET to discuss results for the second 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 1-888-679-8033 (1-617-213-4846 outside North America). Participants calling into the conference call will be requested to provide the company name, Axcelis Technologies and pass code: 30719656. Webcast and telephone replays will be available from 8 pm ET on July 28, 2010 until 11:59 pm on October 26, 2010. Dial 1- 888-286-8010 (1-617-801-6888 outside North America), and enter conference ID code# 41501993.
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.
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Axcelis Technologies, Inc. Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited) |
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Three months ended June 30, |
Six months ended June 30, |
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| 2010 | 2009 | 2010 | 2009 | |
| Revenue | ||||
| Product | $50,693 | $25,764 | $90,971 | $43,498 |
| Service | 7,510 | 7,611 | 15,732 | 15,395 |
| Royalties from SEN | — | 175 | — | 385 |
| 58,203 | 33,550 | 106,703 | 59,278 | |
| Cost of revenue | ||||
| Product | 33,690 | 22,658 | 64,010 | 40,890 |
| Service | 4,645 | 5,006 | 9,818 | 9,495 |
| 38,335 | 27,664 | 73,828 | 50,385 | |
| Gross profit | 19,868 | 5,886 | 32,875 | 8,893 |
| Operating expenses | ||||
| Research and development | 9,477 | 7,752 | 18,610 | 17,287 |
| Sales and marketing | 6,606 | 6,285 | 13,210 | 13,164 |
| General and administrative | 7,464 | 8,531 | 15,164 | 19,201 |
| Restructuring charges | — | 4,114 | — | 5,098 |
| 23,547 | 26,682 | 46,984 | 54,750 | |
| Loss from operations | (3,679) | (20,796) | (14,109) | (45,857) |
| Other income (expense) | ||||
| Gain on sale of SEN | — | — | — | 1,080 |
| Equity loss of SEN | — | — | — | (3,238) |
| Interest income | 25 | 30 | 54 | 93 |
| Interest expense | — | — | — | (1,676) |
| Other, net | 342 | (1,311) | (65) | (1,516) |
| 367 | (1,281) | (11) | (5,257) | |
| Loss before income taxes | (3,312) | (22,077) | (14,120) | (51,114) |
| Income taxes | 1,217 | 302 | 1,510 | 420 |
| Net loss | $(4,529) | $(22,379) | $(15,630) | $(51,534) |
| Net loss per share | ||||
| Basic and diluted net loss per share | $(0.04) | $(0.22) | $(0.15) | $(0.50) |
| Shares used in computing basic and diluted net loss per share | ||||
| Weighted average common shares | 104,170 | 103,286 | 104,143 | 103,285 |
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Axcelis Technologies, Inc. Consolidated Balance Sheets (In thousands) (Unaudited) |
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June 30, 2010 |
December 31, 2009 |
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| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | $47,886 | $45,020 |
| Restricted cash | 4,047 | 4,918 |
| Accounts receivable, net | 34,264 | 19,094 |
| Inventories, net | 97,824 | 114,558 |
| Prepaid expenses and other current assets | 14,877 | 10,016 |
| Total current assets | 198,898 | 193,606 |
| Property, plant and equipment, net | 39,521 | 40,868 |
| Long-term restricted cash | — | 2,245 |
| Other assets | 10,255 | 13,884 |
| $248,674 | $250,603 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities | ||
| Accounts payable | $17,854 | $9,680 |
| Accrued compensation | 10,402 | 9,267 |
| Warranty | 974 | 638 |
| Income taxes | 1,367 | 1,499 |
| Deferred revenue | 10,097 | 5,127 |
| Other current liabilities | 4,424 | 3,546 |
| Total current liabilities | 45,118 | 29,757 |
| Long-term deferred revenue | 895 | 563 |
| Other long-term liabilities | 3,630 | 3,884 |
| Stockholders' equity | ||
| Preferred stock | — | — |
| Common stock | 104 | 104 |
| Additional paid-in capital | 490,686 | 488,321 |
| Treasury stock | (1,218) | (1,218) |
| Accumulated deficit | (291,577) | (275,947) |
| Accumulated other comprehensive income | 1,036 | 5,139 |
| 199,031 | 216,399 | |
| $248,674 | $250,603 | |
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Axcelis Technologies, Inc. Consolidated Statements of Cash Flow (In thousands) (Unaudited) |
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Six months ended June 30, |
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| 2010 | 2009 | |
| Cash flows from operating activities | ||
| Net loss | $(15,630) | $(51,534) |
| Adjustments to reconcile net loss to net cash used for operating activities | ||
| Undistributed loss of SEN | — | 3,238 |
| Depreciation and amortization | 3,711 | 3,727 |
| Gain on sale of SEN | — | (1,080) |
| Accretion of premium on convertible debt | — | 133 |
| Stock‑based compensation expense | 1,568 | 1,316 |
| Provision for excess inventory | 1,331 | 7,492 |
| Changes in operating assets & liabilities | ||
| Accounts receivable | (16,011) | 4,117 |
| Inventories | 13,844 | 9,229 |
| Prepaid expenses and other current assets | (5,051) | 5,956 |
| Accounts payable & other current liabilities | 11,502 | (5,932) |
| Deferred revenue | 5,366 | (5,072) |
| Income taxes | (110) | 139 |
| Other assets and liabilities | 1,673 | (401) |
| Net cash provided by (used for) operating activities | 2,193 | (28,672) |
| Cash flows from investing activities | ||
| Expenditures for property, plant, and equipment | (480) | (354) |
| Decrease in restricted cash | 3,116 | 1,741 |
| Proceeds from sale of SEN | — | 132,847 |
| Payments related to sale of SEN | — | (10,590) |
| Net cash provided by investing activities | 2,636 | 123,644 |
| Cash flows from financing activities | ||
| Repayment of convertible debt | — | (83,344) |
| Financing fees and other expenses | (514) | — |
| Proceeds from exercise of stock options | 55 | — |
| Proceeds from Employee Stock Purchase Plan | 206 | 65 |
| Net cash used for financing activities | (253) | (83,279) |
| Effect of exchange rate changes on cash | (1,710) | 384 |
| Net increase in cash and cash equivalents | 2,866 | 12,077 |
| Cash and cash equivalents at beginning of period | 45,020 | 37,694 |
| Cash and cash equivalents at end of period | $47,886 | $49,771 |