BEVERLY, Mass., Aug. 8, 2008 (PRIME NEWSWIRE) -- Axcelis Technologies, Inc. (Nasdaq:ACLS) today announced financial results for the second quarter ended June 30, 2008. The Company reported second quarter revenues of $76.9 million, compared to $84.9 million for the first quarter of 2008. Net loss for the second quarter was $19.4 million, or $0.19 per share. This compares to a net loss for the first quarter of 2008 of $11.1 million, or $0.11 per share. This net loss is greater than our guidance due to restructuring charges of $3.0 million, or $0.03 per share, as well as income contributions from SEN of $1.0 million, or $0.01 per share, less than SEN originally forecast. In the corresponding quarter for the previous year, the Company reported revenues of $110.1 million, and net income of $4.7 million, or $0.05 per share.
Commenting on the Company's performance, Chairman and CEO Mary Puma said, "Revenues remain challenged by weak market conditions. We continue to reduce costs and optimize processes, and as a result implemented a significant restructuring during the quarter. At the same time, we remain focused on new product development and customer support. Recently, we shipped three additional Optima HDs as well as our first Optima XE single wafer high energy system. In addition, we launched the new Integra RS multi-chamber dry strip system and have already shipped two tools for use in memory manufacturing and 32/22nm development."
Puma continued, "In light of our confidentiality agreement with Sumitomo Heavy Industries (SHI) and TPG Capital, the Company will not comment on discussions with SHI. The Company does not plan to hold a quarterly earnings call this quarter."
Second Quarter Detail
Shipments and Margins
Shipments for the second quarter, including aftermarket business, before provision for deferred revenue totaled $67.9 million. Geographically, Axcelis' systems shipments were to: Asia, 46%; North America, 21%; and Europe, 33%. The ion implantation business accounted for 93% of total systems shipments in the second quarter. Gross margin for the second quarter was 35.2%.
Orders and Backlog
Orders received for the second quarter (new systems bookings and aftermarket) totaled $62.6 million. New systems bookings, excluding aftermarket, amounted to $24.3 million. Backlog plus deferred systems revenue at quarter end was $33.0 million. Backlog consists of systems orders (aftermarket orders are excluded) that are generally scheduled to ship within six months.
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 second quarter totaled $48.6 million. Revenues in Japan are also challenged by weak market conditions.
Business Outlook
Axcelis' financial outlook for the third quarter of 2008 includes revenues in the range of $47 million to $57 million. The Company also forecasts a third quarter loss per share in the range of $0.21 to $0.25. 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 Statements of Operations
In thousands, except per share amounts
(Unaudited)
Three Months ended Six Months ended
June 30, June 30,
------------------- -------------------
2008 2007 2008 2007
-------- -------- -------- --------
Revenue $ 76,889 $110,073 $161,783 $207,599
Cost of revenue 49,799 66,483 105,477 122,759
Gross profit 27,090 43,590 56,306 84,840
Operating expenses
Research and development 16,954 17,598 33,807 35,826
Sales and marketing 12,475 13,146 24,380 26,084
General and administrative 10,878 10,194 20,692 20,670
Amortization of intangible
assets 656 656 1,312 1,312
Restructuring charges 3,017 -- 3,068 --
-------- -------- -------- --------
43,980 41,594 83,259 83,892
-------- -------- -------- --------
Income (loss) from
operations (16,890) 1,996 (26,953) 948
Other income (expense)
Equity income (loss) of SEN (133) 1,905 (132) 6,573
Interest income 391 1,146 1,081 2,600
Interest expense (1,680) (1,566) (3,281) (3,235)
Other-net (767) 275 (449) 251
-------- -------- -------- --------
(2,189) 1,760 (2,781) 6,189
-------- -------- -------- --------
Income (loss) before
income taxes (19,079) 3,756 (29,734) 7,137
Income taxes (credits) 318 (988) 744 (280)
-------- -------- -------- --------
Net income (loss) $(19,397) $ 4,744 $(30,478) $ 7,417
======== ======== ======== ========
Net income (loss) per
share
Basic $ (0.19) $ 0.05 $ (0.30) $ 0.07
Diluted (0.19) 0.05 (0.30) 0.07
Shares used in computing
net income (loss) per
share
Basic 102,450 101,609 102,449 101,551
Diluted 102,450 102,503 102,449 102,463
Axcelis Technologies, Inc.
Consolidated Balance Sheets
In thousands
(Unaudited)
June 30, December 31,
2008 2007
--------- ---------
Assets
Current assets
Cash and cash equivalents $ 59,651 $ 83,877
Restricted cash 14,821 17,018
Accounts receivable, net 51,233 76,067
Inventories, net 178,855 169,278
Prepaid expenses and other current assets 17,551 32,442
--------- ---------
Total current assets 322,111 378,682
Property, plant and equipment, net 66,352 68,101
Investment in SEN 140,044 132,911
Goodwill 42,115 42,115
Intangible assets 9,613 10,925
Other assets 35,313 37,195
--------- ---------
$ 615,548 $ 669,929
========= =========
Liabilities and stockholders' equity
Current liabilities
Accounts payable $ 15,636 $ 27,054
Accrued compensation 16,426 17,003
Warranty 3,931 5,011
Income taxes 757 531
Deferred revenue 14,518 35,827
Other current liabilities 6,579 8,577
Current portion of convertible
subordinated debt 81,534 --
--------- ---------
Total current liabilities 139,381 94,003
Convertible subordinated debt -- 79,923
Long-term deferred revenue 3,291 4,704
Other long-term liabilities 5,290 5,293
Stockholders' equity
Preferred Stock -- --
Common stock 103 103
Additional paid-in capital 481,596 478,726
Treasury stock (1,218) (1,218)
Accumulated deficit (32,293) (1,815)
Accumulated other comprehensive income 19,398 10,210
--------- ---------
467,586 486,006
--------- ---------
$ 615,548 $ 669,929
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