BEVERLY, Mass., Jan. 31, 2008 (PRIME NEWSWIRE) -- Axcelis Technologies, Inc. (Nasdaq:ACLS) today announced financial results for the fourth quarter and full year ended December 31, 2007. The Company reported fourth quarter revenues of $89.6 million, compared to $107.6 million for the third quarter of 2007. Net loss for the fourth quarter was $10.6 million, or $0.10 per share, of which $0.02 was attributable to restructuring charges. This compares to a net loss for the third quarter of 2007 of $8.2 million, or $0.08 per share. In the corresponding quarter for the previous year, the Company reported revenues of $123.3 million, and net income of $15.6 million, or $0.15 per share.
For the full year 2007, the Company reported revenues of $404.8 million compared with $461.7 million in 2006. Net loss for the year was $11.4 million, or $0.11 per share, of which $4.7 million ($0.05 per share) was attributable to a write-down of goodwill and $2.5 million ($0.02 per share) was attributable to restructuring charges. In 2006, the Company reported net income of $40.8 million, or $0.40 per share.
Commenting on the Company's performance, Chairman and CEO Mary Puma said, "The past year was clearly a challenging one for Axcelis, particularly given the downturn in the semiconductor industry. While market conditions are expected to continue to be weak in 2008, we are well positioned to compete with our complete platform of Optima single wafer implanters. Optima HDs are in volume manufacturing at customer fabs and we are encouraged by the production and process advantages our customers are reporting. We expect these successes to continue and translate into opportunities for capacity orders."
Fourth Quarter Detail
Shipments and Margins
Shipments, including aftermarket business, before provision for deferred revenue for the fourth quarter totaled $89.2 million. Geographically, Axcelis' systems shipments were to: Asia, 70%; North America, 18%; and Europe, 12%. The ion implantation business accounted for 80% of total shipments in the fourth quarter. Gross margin for the fourth quarter was 35.4%.
Orders and Backlog
Orders (new systems bookings and aftermarket) received for the fourth quarter totaled $85.9 million. New systems bookings, excluding aftermarket, amounted to $43.9 million. Backlog plus deferred systems revenue at quarter end was $60.7 million. Backlog consists of systems orders (aftermarket orders are excluded) that are generally scheduled to ship within six months.
Balance Sheet
Cash, cash equivalents and marketable securities were $100.9 million at December 31, 2007. The Company ended the quarter with working capital of $284.7 million.
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 fourth quarter totaled $51.7 million.
Business Outlook
Axcelis' financial outlook for the first quarter of 2008 includes revenues in the range of $80 million to $95 million. The Company also forecasts a first quarter loss per share in the range of $0.04 to $0.08 per share. Axcelis assumes no responsibility to update guidance. Axcelis will only confirm or update guidance via a press release.
Fourth Quarter 2007 Conference Call
The Company will be hosting a conference call today, Thursday, January 31, 2008, beginning at 5:00 pm ET. The purpose of the call is to discuss fourth quarter and year end results for 2007 and to provide guidance for the first quarter of 2008.
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 1-800-479-1628 (1-719-457-2729 outside North America). Participants calling into the conference call will be requested to provide the company name: Axcelis Technologies, the conference leader: David Snyder, and pass code: #1116422. A webcast replay will be available from 8:00 pm ET on January 31, 2008 until 5:00 pm ET March 1, 2008.
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 Statements of Operations
In thousands, except per share amounts
(Unaudited)
Three months ended Twelve Months ended
December 31, December 31,
-------------------- --------------------
2007 2006 2007 2006
--------- --------- --------- ---------
Revenue $ 89,649 $ 123,339 $ 404,800 $ 461,717
Cost of Revenue 57,896 72,075 251,939 270,203
Gross profit 31,753 51,264 152,861 191,514
Operating expenses
Research & development 17,930 18,384 72,044 72,384
Sales and marketing 11,479 11,617 49,974 45,536
General and administrative 10,680 12,362 41,718 46,620
Impairment of Goodwill -- -- 4,658 --
Amortization of intangible
assets 656 656 2,624 2,551
Restructuring charges 2,506 535 2,506 682
--------- --------- --------- ---------
43,251 43,554 173,524 167,773
--------- --------- --------- ---------
Income (loss) from
operations (11,498) 7,710 (20,663) 23,741
Other income (expense)
Equity income of SEN 2,077 8,532 10,416 19,266
Interest income 1,195 2,567 5,019 8,383
Interest expense (1,605) (2,428) (6,427) (9,085)
Other-net (659) (359) (153) 478
--------- --------- --------- ---------
1,008 8,312 8,855 19,042
--------- --------- --------- ---------
Income (loss) before income
taxes (10,490) 16,022 (11,808) 42,783
Income taxes (credits) 127 461 (410) 2,013
--------- --------- --------- ---------
Net income (loss) $ (10,617) $ 15,561 $ (11,398) $ 40,770
========= ========= ========= =========
Net income (loss) per share
Basic $ (0.10) $ 0.15 $ (0.11) $ 0.40
Diluted $ (0.10) $ 0.15 $ (0.11) $ 0.40
Shares used in computing
net income (loss) per
share
Basic 102,247 101,221 101,891 101,058
Diluted 102,247 101,874 101,891 101,361
Axcelis Technologies, Inc.
Consolidated Balance Sheets
In thousands
(Unaudited)
December 31, December 31,
2007 2006
------------ ------------
Assets
Current assets
Cash and cash equivalents $ 83,877 $ 140,451
Marketable securities -- 63,200
Restricted cash 17,018 11,019
Accounts receivable, net 76,067 73,635
Inventories, net 169,278 160,107
Prepaid expenses and other current assets 32,442 26,639
------------ ------------
Total current assets 378,682 475,051
Property, plant and equipment, net 68,101 66,678
Investment in SEN 132,911 126,688
Goodwill 42,115 46,773
Intangible assets 10,925 13,549
Restricted cash, long-term portion -- 1,137
Other assets 37,195 24,117
------------ ------------
$ 669,929 $ 753,993
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Liabilities and stockholders' equity
Current liabilities
Accounts payable $ 27,054 $ 37,312
Accrued compensation 17,003 26,996
Warranty 5,011 5,229
Income taxes 531 3,906
Deferred revenue 35,827 28,811
Current portion of convertible
subordinated debt -- 74,217
Other current liabilities 8,577 13,670
------------ ------------
Total current liabilities 94,003 190,141
Convertible subordinated debt 79,923 76,887
Long-term deferred revenue 4,704 5,054
Other long-term liabilities 5,293 4,349
Stockholders' equity
Preferred Stock -- --
Common stock 103 101
Additional paid-in capital 478,725 469,967
Treasury stock (1,218) (1,218)
Retained earnings (deficit) (1,814) 9,583
Accumulated other comprehensive income
(loss) 10,210 (871)
------------ ------------
486,006 477,562
------------ ------------
$ 669,929 $ 753,993
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