Benzinga | Nov 5, 2020 04:11PM EST

Axcelis Sees Q4 2020 Revenue Of $110M, Gross Margins Around 41%, EPS Of $0.21

BEVERLY, Mass., Nov. 5, 2020 /PRNewswire/ -- Axcelis Technologies, Inc. (NASDAQ:ACLS) today announced financial results for the third quarter ended September 30, 2020.

The Company reported third quarter revenue of $110.4 million, compared to $123 million for the second quarter of 2020. Operating profit for the quarter was $13.9 million, compared to $16.4 million for the second quarter. Net income for the quarter was $10.8 million, or $0.32 per diluted share, compared to net income for the second quarter of $13.3 million, or $0.39 per diluted share. Gross margin for the quarter was 43.6%, compared to 42.2% in the second quarter. Cash, cash equivalents and restricted cash were $212.7 million on September 30, 2020, compared to $197 million on June 30, 2020.

President and CEO Mary Puma commented, "We are pleased with our third quarter performance, which met or exceeded guidance and consensus. The Company delivered strong earnings driven by robust gross margins. We continue to expand our large and diverse customer base in key market segments, with new penetrations of the Purion H and new Purion product extensions. We are exiting 2020 with good momentum, positioning us well to capitalize on the expectation that 2021 will be a strong investment year and for the achievement of our $550 and $650 million dollar target models over the next several years."

Business Outlook

For the fourth quarter ending December 31, 2020, Axcelis expects revenues to be approximately $110 million with gross margin around 41%. Fourth quarter operating profit is forecasted to be approximately $10 million with earnings per diluted share of approximately $0.21.

Third Quarter 2020 Conference Call

The Company will host a call to discuss the results for the third quarter 2020 on Friday, November 6, 2020 at 8:30 am ET. The call will be available to interested listeners via an audio webcast that can be accessed through the Investors page of Axcelis' website at www.axcelis.com. If you would like to ask a question, the dial in number is 866.588.8911 (707.294.1561 outside North America). Participants calling into the conference call will be requested to provide the company name, Axcelis Technologies, and Conference ID: 1999553. Please dial in at least 15 minutes in advance to ensure a timely connection to the call. Webcast replays will be available for 30 days following the call.

Safe Harbor Statement

This press release and the conference call contain forward-looking statements under the Private Securities Litigation Reform Act safe harbor provisions. These statements, which include our expectations for spending in our industry and 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 that could cause actual results to differ materially from those in the forward-looking statements, many of which are outside the control of the Company, including that customer decisions to place orders or our product shipments may not occur when we expect, that orders may not be converted to revenue in any particular quarter, or at all, whether demand will continue for the semiconductor equipment we produce or, if not, whether we can successfully meet changing market requirements, and whether we will be able to maintain continuity of business relationships with and purchases by major customers. Increased competitive pressure on sales and pricing, increases in material and other production costs that cannot be recouped in product pricing and instability caused by changing global economic, political or financial conditions could also cause actual results to differ materially from those in our forward-looking statements. 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 (NASDAQ:ACLS), headquartered in Beverly, Mass., has been providing innovative, high-productivity solutions for the semiconductor industry for over 40 years. Axcelis is dedicated to developing enabling process applications through the design, manufacture and complete life cycle support of ion implantation systems, one of the most critical and enabling steps in the IC manufacturing process. Learn more about Axcelis at www.axcelis.com.

Company Contacts

Investor Relations:

Doug Lawson

978.787.9552

Editorial/Media:

Maureen Hart

978.787.4266



Axcelis Technologies, Inc. Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited)





Three months ended Nine months ended

September 30, September 30,

2020 2019 2020 2019

Revenue:

Product $104,799 $64,290 $334,126 $217,201

Services 5,606 5,163 18,235 18,034

Total revenue 110,405 69,453 352,361 235,235

Cost of revenue:

Product 56,427 33,587 189,118 118,105

Services 5,817 5,285 17,634 17,294

Total cost of revenue 62,244 38,872 206,752 135,399

Gross profit 48,161 30,581 145,609 99,836

Operating expenses:

Research and development 14,867 12,930 45,513 40,335

Sales and marketing 9,763 8,057 27,404 25,411

General and administrative 9,649 7,707 28,726 23,097

Total operating expenses 34,279 28,694 101,643 88,843

Income from operations 13,882 1,887 43,966 10,993

Other (expense) income:

Interest income 106 687 658 2,373

Interest expense (1,296) (1,308) (3,898) (3,849)

Other, net 900 (890) 701 (1,252)

Total other expense (290) (1,511) (2,539) (2,728)

Income before income taxes 13,592 376 41,427 8,265

Income tax provision 2,807 (328) 6,119 943 (benefit)

Net income $10,785 $704 $35,308 $7,322

Net income per share:

Basic $0.32 $0.02 $1.06 $0.22

Diluted $0.32 $0.02 $1.04 $0.22

Shares used in computing net income per share:

Basic weighted average 33,477 32,344 33,159 32,584 common shares

Diluted weighted average 34,174 33,323 34,070 33,821 common shares



Axcelis Technologies, Inc. Consolidated Balance Sheets (In thousands, except per share amounts) (Unaudited)





September December 30, 31,

2020 2019

ASSETS

Current assets:

Cash and cash equivalents $211,967 $139,881

Accounts receivable, net 45,161 83,753

Inventories, net 159,658 140,364

Prepaid expenses and other current assets 18,982 11,681

Total current assets 435,768 375,679

Property, plant and equipment, net 29,199 25,328

Operating lease assets 4,655 5,849

Finance lease assets, net 20,872 21,880

Long-term restricted cash 750 6,653

Deferred income taxes 58,247 68,060

Other assets 41,165 44,645

Total assets $590,656 $548,094

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable $24,260 $25,341

Accrued compensation 18,856 7,631

Warranty 4,151 2,759

Income taxes 328 294

Deferred revenue 13,118 24,601

Current portion of finance lease obligation 705 399

Other current liabilities 7,965 7,639

Total current liabilities 69,383 68,664

Long-term finance lease obligation 47,593 48,149

Long-term deferred revenue 3,851 4,650

Other long-term liabilities 9,166 7,204

Total liabilities 129,993 128,667



Stockholders' equity:

Common stock, $0.001 par value, 75,000 shares authorized; 33,491 shares issued and outstanding at September 30, 2020; 32,585 33 33 shares issued and outstanding at December 31, 2019

Additional paid-in capital 566,195 559,878

Accumulated deficit (106,643) (140,226)

Accumulated other comprehensive income (loss) 1,078 (258)

Total stockholders' equity 460,663 419,427

Total liabilities and stockholders' equity $590,656 $548,094





View original content to download multimedia: http://www.prnewswire.com/news-releases/axcelis-announces-financial-results-for-third-quarter-2020-301167369.html

SOURCE Axcelis Technologies, Inc.