Axcelis Announces Financial Results for Second Quarter 2010

Company Reports Strong Growth in Revenues, Cash and System Orders


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.

Axcelis Technologies, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
         
  Three months ended
June 30,
Six months ended
June 30,
  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
 
Axcelis Technologies, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
     
  June 30,
2010
December 31,
2009
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
 
Axcelis Technologies, Inc.
Consolidated Statements of Cash Flow
(In thousands)
(Unaudited)
     
  Six months ended
June 30,
  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


            

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