Axcelis Announces Financial Results for Fourth Quarter and Full Year 2018
BEVERLY, Mass., Feb. 6, 2019 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the fourth quarter ended December 31, 2018.
The Company reported fourth quarter revenue of $105.7 million, compared to $95.4 million for the third quarter of 2018. Operating profit for the quarter was $11.5 million, compared to $10.7 million for the third quarter. Net income for the quarter was $8.5 million, or $0.25 per diluted share, compared to net income for the third quarter of $8.8 million, or $0.26 per diluted share. Gross margin for the quarter was 41.2%, compared to 41.8% in the third quarter. Cash, cash equivalents and restricted cash were $184.9 million on December 31, 2018, compared to $155.6 million on September 30, 2018.
For the full year 2018, the Company reported revenue of $442.6 million, compared with $410.6 million for the full year 2017. Systems revenue for the year was $280.4 million, compared to $262.7 million in 2017. Operating profit was $60 million in 2018, compared to $47.8 million in 2017. Net income for the year was $45.9 million with diluted earnings per share of $1.35. This compares to 2017 net income of $127 million and earnings per share of $3.80. 2017 results were impacted by a significant excess inventory reserve adjustment and the reversal of the valuation allowance on our deferred tax assets.
"2018 was a strong year for Axcelis, with continued growth in revenues, gross margins and cash. Despite a memory market slowdown, Axcelis kept growing by expanding Purion products to a large and diverse group of customers," commented President and CEO Mary Puma. "We are focused on additional growth by investing in technology for new market segments and extending our global Purion footprint. These actions position us well to achieve our financial and strategic long-term goals."
Business Outlook
For the first quarter ending March 31, 2019, Axcelis expects revenues in the range of $90-95 million. Gross margin in the first quarter is expected to be around 41%. First quarter operating profit is forecasted to be in the range of $6-7 million. Earnings per diluted share is expected to be in the range of $0.10-0.13.
Fourth Quarter and Full Year 2018 Conference Call
The Company will host a conference call to discuss the Company's results for the fourth quarter and full year 2018 on Thursday, February 7, 2019 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 Conference ID: 6379519. 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 Twelve months ended
December 31, December 31,
2018 2017 2018 2017
Revenue:
Product $
98,883 $
110,446 $
415,922 $
387,124
Services 6,800 5,950 26,653 23,437
Total
revenue 105,683 116,396 442,575 410,561
Cost of Revenue:
Product 55,023 72,390 236,446 234,932
Services 7,093 7,286 26,493 25,382
Total cost
of
revenue 62,116 79,676 262,939 260,314
Gross profit 43,567 36,720 179,636 150,247
Operating expenses:
Research and
development 14,245 10,917 51,876 43,071
Sales and
marketing 9,362 7,197 34,608 28,532
General and
administrative 8,438 7,842 33,193 30,802
Total
operating
expenses 32,045 25,956 119,677 102,405
Income from operations 11,522 10,764 59,959 47,842
Other (expense) income:
Interest
income 810 315 2,328 714
Interest
expense (1,323) (1,337) (5,110) (5,121)
Other, net (762) 396 (2,472) 396
Total
other
expense (1,275) (626) (5,254) (4,011)
Income before income taxes 10,247 10,138 54,705 43,831
Income tax provision (benefit) 1,784 (81,542) 8,820 (83,128)
Net income $
8,463 $
91,680 $
45,885 $
126,959
===
Net income per share:
Basic $
0.26 $
2.88 $
1.42 $
4.11
Diluted $
0.25 $
2.68 $
1.35 $
3.80
Shares used in computing net income
per share:
Basic
weighted
average
common
shares 32,467 31,801 32,286 30,886
Diluted
weighted
average
common
shares 33,886 34,198 34,002 33,436
Axcelis Technologies, Inc.
Consolidated Balance Sheets
(In thousands, except per share amounts)
(Unaudited)
December 31, December 31,
2018 2017
ASSETS
Current assets:
Cash and cash
equivalents $
177,993 $
133,407
Short-term
restricted cash 750
Accounts
receivable, net 78,727 75,302
Inventories, net 129,000 120,544
Prepaid expenses &
other assets 11,051 9,772
Total current
assets 396,771 339,775
Property, plant and equipment, net 41,149 36,168
Restricted cash 6,909 6,723
Deferred income taxes 71,939 83,148
Other assets 31,673 22,404
Total assets $
548,441 $
488,218
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Accounts payable $
35,955 $
32,642
Accrued
compensation 19,218 20,955
Warranty 4,819 4,112
Income taxes 462 273
Deferred revenue 19,513 16,181
Other current
liabilities 5,030 5,124
Total current
liabilities 84,997 79,287
Sales leaseback obligation 47,757 47,714
Long-term deferred revenue 3,071 1,964
Other long-term liabilities 4,279 5,643
Total liabilities 140,104 134,608
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par
value, 75,000 shares
authorized; 32,559 shares
issued and 33 32
outstanding at December
31, 2018; 32,048 shares
issued and outstanding at
December
31, 2017
Additional paid-
in capital 565,116 556,147
Accumulated
deficit (157,260) (204,745)
Accumulated other
comprehensive
income 448 2,176
Total stockholders' equity 408,337 353,610
Total liabilities and stockholders'
equity $
548,441 $
488,218
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SOURCE Axcelis Technologies, Inc.
