Axcelis Announces Financial Results For Second Quarter 2018
BEVERLY, Mass., Aug. 2, 2018 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the second quarter ended June 30, 2018.
The Company reported second quarter revenue of $119.3 million, compared to $122.2 million for the first quarter of 2018. Operating profit for the quarter was $19.3 million, compared to $18.5 million for the first quarter. Net income for the quarter was $14.7 million, or $0.43 per diluted share, compared to net income for the first quarter of 2018 of $13.9 million, or $0.41 per diluted share. Cash, cash equivalents and restricted cash were $154.9 million at June 30, 2018, compared to $148.5 million on March 31, 2018.
"We're very pleased with our financial performance in the second quarter driven by solid revenue and earnings growth. Our gross margin initiatives continue to deliver improvements, yielding results above guidance. Demand for our products remains strong across our diverse customer base, and the industry continues to be in a robust, sustained cycle fueled by growth in IoT and big data," said President and CEO Mary Puma. "We are still targeting our $450 million business model in 2018, and anticipate 2019 to be another solid year for equipment CAPEX."
Business Outlook
For the third quarter ending September 30, 2018, Axcelis expects revenues of between $95 and $100 million. Gross margin in the third quarter is expected to be around 40%. Third quarter operating profit is forecasted to be approximately $8-10 million. Earnings per share is expected to be between $0.15 and $0.20.
Second Quarter 2018 Conference Call
The Company will host a conference call today at 5:00 pm ET to discuss the Company's results for the second quarter. 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 pass code: 2690966. 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 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 Six months ended
June 30, June 30,
-------- --------
2018 2017 2018 2017
---- ---- ---- ----
Revenue:
Product $112,521 $96,539 $228,543 $178,517
Services 6,812 6,251 12,975 11,166
Total revenue 119,333 102,790 241,518 189,683
Cost of Revenue:
Product 63,913 57,689 132,287 104,486
Services 6,420 6,039 13,075 11,421
Total cost of revenue 70,333 63,728 145,362 115,907
------ ------ ------- -------
Gross profit 49,000 39,062 96,156 73,776
Operating expenses:
Research and development 12,553 11,256 24,786 21,151
Sales and marketing 8,912 7,485 17,323 14,534
General and administrative 8,268 7,791 16,278 14,848
Total operating expenses 29,733 26,532 58,387 50,533
------ ------ ------ ------
Income from operations 19,267 12,530 37,769 23,243
Other (expense) income:
Interest income 515 111 925 180
Interest expense (1,127) (1,336) (2,464) (2,447)
Other, net (1,016) 16 (1,118) (138)
Total other expense (1,628) (1,209) (2,657) (2,405)
------ ------ ------ ------
Income before income taxes 17,639 11,321 35,112 20,838
Income tax provision (benefit) 2,970 (2,611) 6,528 (2,600)
----- ------ ----- ------
Net income $14,669 $13,932 $28,584 $23,438
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Net income per share:
Basic $0.46 $0.46 $0.89 $0.78
===== ===== ===== =====
Diluted $0.43 $0.42 $0.84 $0.72
===== ===== ===== =====
Shares used in computing net income per share:
Basic weighted average common shares 32,214 30,589 32,154 30,183
====== ====== ====== ======
Diluted weighted average common
shares 33,942 33,168 34,048 32,779
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Axcelis Technologies, Inc.
Consolidated Balance Sheets
(In thousands, except per share amounts)
(Unaudited)
June 30, December 31,
2018 2017
---- ----
ASSETS
Current assets:
Cash and cash equivalents $147,297 $133,407
Short-term restricted cash 730 750
Accounts receivable, net 74,429 75,302
Inventories, net 129,554 120,544
Prepaid expenses & other assets 10,925 9,772
Total current assets 362,935 339,775
Property, plant and equipment, net 36,312 36,168
Restricted cash 6,915 6,723
Deferred income taxes 77,005 83,148
Other assets 25,264 22,404
------ ------
Total assets $508,431 $488,218
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LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $32,633 $32,642
Accrued compensation 12,727 20,955
Warranty 4,698 4,112
Income taxes 163 273
Deferred revenue 11,927 16,181
Other current liabilities 4,542 5,124
Total current liabilities 66,690 79,287
Sales leaseback obligation 47,735 47,714
Long-term deferred revenue 3,248 1,964
Other long-term liabilities 5,144 5,643
----- -----
Total liabilities 122,817 134,608
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 32,331 shares
issued and 32 32
outstanding at June 30, 2018; 32,048 shares issued and outstanding at
December 31,
2017
Additional paid-in capital 559,207 556,147
Accumulated deficit (174,561) (204,745)
Accumulated other comprehensive income 936 2,176
Total stockholders' equity 385,614 353,610
------- -------
Total liabilities and stockholders' equity $508,431 $488,218
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SOURCE Axcelis Technologies, Inc.
