PR Newswire | Nov 3, 2021 04:02PM EDT

11/03 15:01 CDT

Axcelis Announces Financial Results For Third Quarter 2021The Company Reports Record Implant Systems Revenue and Backlog BEVERLY, Mass., Nov. 3, 2021

BEVERLY, Mass., Nov. 3, 2021 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS), a leading supplier of enabling ion implantation solutions for the semiconductor industry, today announced financial results for the third quarter ended September 30, 2021.

Axcelis announced financial results for Q3 2021. The Company reports record Implant Systems Revenue and Backlog. Highlights for the third quarter are as follows:

* The Company reported third quarter revenue of $176.7 million, compared to $147.3 million for the second quarter of 2021. This includes quarterly system revenues of $126.2 million dollars, an implant systems record, compared to $100.1 million in the second quarter. * Operating profit for the quarter was $36.4 million, compared to $24 million for the second quarter. * Net income for the quarter was $27.5 million, or $0.81 per diluted share, compared to net income of $18.9 million, or $0.55 per diluted share for the second quarter. * Gross margin for the quarter was 43.3%, compared to 43.5% in the second quarter. * Shipped full family of Purion SiC Power Series(tm) implanters to leading power device chipmakers located in Asia and Europe. * Shipped multiple Purion(tm) high current and high energy implanters to a leading memory device manufacturer located in Asia.

President and CEO Mary Puma commented, "Axcelis delivered very strong third quarter financial performance driven by record implant systems revenue and solid gross margins. The mature and specialty markets, especially the implant-intensive power device segment, are generating significant market expansion. Axcelis is capitalizing on the strength of these segments with market leading Purion product extensions specifically designed to meet these customers' requirements. The Company is well positioned for long-term, sustainable growth."

Business OutlookFor the fourth quarter ending December 31, 2021, Axcelis expects revenues to be approximately $190 million. Gross margin in the fourth quarter is expected to be approximately 41.5%. Fourth quarter operating profit is forecasted to be approximately $37 million with earnings per diluted share of approximately $0.84. The Company also expects to exceed $640 million in revenue for the full year 2021.

Third Quarter 2021 Conference CallThe Company will host a call to discuss the results for the third quarter on Thursday, November 4, 2021 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, or by dialing 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 Audience Passcode: 4426677. Webcast replays will be available for 30 days following the call.

Safe Harbor StatementThis 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 Lawson978.787.9552

Editorial/Media:Maureen Hart978.787.4266

Axcelis Technologies, Inc.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

Three months ended Nine months ended

September 30, September 30,

2021 2020 2021 2020

Revenue:

Product $ 169,151 $ 104,799 $ 435,916 $ 334,126

Services 7,543 5,606 20,828 18,235

Total revenue 176,694 110,405 456,744 352,361

Cost of revenue:

Product 93,201 56,427 240,223 189,118

Services 6,981 5,817 19,560 17,634

Total cost of revenue 100,182 62,244 259,783 206,752

Gross profit 76,512 48,161 196,961 145,609

Operating expenses:

Research and development 16,707 14,867 49,015 45,513

Sales and marketing 11,415 9,763 33,979 27,404

General and administrative 11,996 9,649 33,226 28,726

Total operating expenses 40,118 34,279 116,220 101,643

Income from operations 36,394 13,882 80,741 43,966

Other (expense) income:

Interest income 51 106 124 658

Interest expense (1,269) (1,296) (3,572) (3,898)

Other, net (963) 900 (2,131) 701

Total other expense (2,181) (290) (5,579) (2,539)

Income before income taxes 34,213 13,592 75,162 41,427

Income tax provision 6,698 2,807 12,261 6,119

Net income $ 27,515 $ 10,785 $ 62,901 $ 35,308

Net income per share:

Basic $ 0.82 $ 0.32 $ 1.87 $ 1.06

Diluted $ 0.81 $ 0.32 $ 1.83 $ 1.04

Shares used in computing net income per share:

Basic weighted average common shares 33,537 33,477 33,643 33,159

Diluted weighted average common shares 34,089 34,174 34,339 34,070

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)

September 30, December 31,

2021 2020

ASSETS

Current assets:

Cash and cash equivalents $ 271,085 $ 203,479

Accounts receivable, net 78,257 86,865

Inventories, net 196,812 161,076

Prepaid expenses and other current assets 23,990 19,371

Total current assets 570,144 470,791

Property, plant and equipment, net 32,921 29,840

Operating lease assets 8,106 4,542

Finance lease assets, net 19,563 20,544

Long-term restricted cash 756 753

Deferred income taxes 44,206 57,851

Other assets 35,282 40,303

Total assets $ 710,978 $ 624,624

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable $ 35,499 $ 24,013

Accrued compensation 23,548 24,562

Warranty 5,741 4,280

Income taxes 623 654

Deferred revenue 54,502 21,221

Current portion of finance lease obligation 921 756

Other current liabilities 16,361 8,945

Total current liabilities 137,195 84,431

Long-term finance lease obligation 46,672 47,393

Long-term deferred revenue 3,738 1,837

Other long-term liabilities 11,694 9,361

Total liabilities 199,299 143,022

Stockholders' equity:

Common stock, $0.001 par value, 75,000 sharesauthorized; 33,406 shares issued and outstanding 33 34at September 30, 2021; 33,633 shares issued andoutstanding at December 31, 2020

Additional paid-in capital 559,913 570,102

Accumulated deficit (50,017) (91,969)

Accumulated other comprehensive income 1,750 3,435

Total stockholders' equity 511,679 481,602

Total liabilities and stockholders' equity $ 710,978 $ 624,624

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SOURCE Axcelis Technologies, Inc.