Axcelis Announces Financial Results For First Quarter 2020

BEVERLY, Mass., May 5, 2020 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the first quarter ended March 31, 2020.

The Company reported first quarter revenue of $119 million, compared to $107.7 million for the fourth quarter of 2019. Operating profit for the quarter was $13.7 million, compared to $13.2 million for the fourth quarter. Net income for the quarter was $11.2 million, or $0.33 per diluted share, compared to net income for the fourth quarter of $9.7 million, or $0.29 per diluted share. Gross margin for the quarter was 38.3%, compared to 41.1% in the fourth quarter. Cash, cash equivalents and restricted cash were $181.4 million on March 31, 2020, compared to $146.5 million on December 31, 2019.

President and CEO Mary Puma commented, "We are very pleased with our strong first quarter performance. As a result of everyone's extraordinary efforts, we delivered an excellent financial quarter by continuing to meet our customers' expectations. While there is limited visibility to near-term macroeconomic conditions, customer demand for our Purion platform remains strong. Axcelis has a highly differentiated product line, a broad and diverse customer base, a robust balance sheet and a dedicated team of employees. These strengths will propel us through this difficult period and lead us to market leadership in ion implantation."

First Quarter 2020 Conference Call
The Company will host a call to discuss the results for the first quarter 2020 on Wednesday, May 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, 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: 1738978. 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

Company Contacts

Investor Relations:
Doug Lawson

Maureen Hart

            Axcelis Technologies, Inc.

           Consolidated Statements of Operations

           (In thousands, except per share amounts)


                                                          Three months ended

            March 31,

                                                                        2020                            2019


     Product                                                                         $
            112,133      $

     Services                                                                                    6,858              7,280

     Total revenue                                                                             118,991             91,477

     Cost of revenue:

     Product                                                                                    67,172             47,338

     Services                                                                                    6,270              6,633

     Total cost of revenue                                                                      73,442             53,971

     Gross profit                                                                               45,549             37,506

     Operating expenses:

     Research and development                                                                   14,606             13,685

     Sales and marketing                                                                         8,204              8,918

     General and administrative                                                                  9,036              7,807

     Total operating expenses                                                                   31,846             30,410

     Income from operations                                                                     13,703              7,096

     Other (expense) income:

     Interest income                                                                               482                841

     Interest expense                                                                          (1,303)           (1,230)

     Other, net                                                                                  (620)             (173)

     Total other expense                                                                       (1,441)             (562)

     Income before income taxes                                                                 12,262              6,534

     Income tax provision                                                                        1,041                472

     Net income                                                                       $
            11,221       $

     Net income per share:

     Basic                                                                              $
            0.34        $

     Diluted                                                                            $
            0.33        $

      Shares used in computing net income
       per share:

      Basic weighted average common
       shares                                                                                    32,872             32,683

      Diluted weighted average common
       shares                                                                                    34,057             34,224

            Axcelis Technologies, Inc.

            Consolidated Balance Sheets

         (In thousands, except per share amounts)


                                                                                                                                                                                           March 31,               December 31,

                                                                                                                                                                                                2020                        2019


              Current assets:

              Cash and cash equivalents                                                                                                                                                             $
        174,745               $

              Accounts receivable, net                                                                                                                                                                     64,238                       83,753

              Inventories, net                                                                                                                                                                            136,068                      140,364

              Prepaid expenses and other current assets                                                                                                                                                    16,621                       11,681

              Total current assets                                                                                                                                                                        391,672                      375,679

              Property, plant and equipment, net                                                                                                                                                           26,363                       25,328

              Operating lease assets                                                                                                                                                                        5,583                        5,849

              Finance lease assets, net                                                                                                                                                                    21,528                       21,880

              Long-term restricted cash                                                                                                                                                                     6,671                        6,653

              Deferred income taxes                                                                                                                                                                        66,607                       68,060

              Other assets                                                                                                                                                                                 44,149                       44,645

              Total assets                                                                                                                                                                          $
        562,573               $


              Current liabilities:

              Accounts payable                                                                                                                                                                       $
        26,089                $

              Accrued compensation                                                                                                                                                                          9,237                        7,631

              Warranty                                                                                                                                                                                      3,431                        2,759

              Income taxes                                                                                                                                                                                    344                          294

              Deferred revenue                                                                                                                                                                             28,892                       24,601

              Current portion of finance lease obligation                                                                                                                                                     573                          399

              Other current liabilities                                                                                                                                                                     6,807                        7,639

              Total current liabilities                                                                                                                                                                    75,373                       68,664

              Long-term finance lease obligation                                                                                                                                                           47,976                       48,149

              Long-term deferred revenue                                                                                                                                                                    5,214                        4,650

              Other long-term liabilities                                                                                                                                                                   6,838                        7,204

              Total liabilities                                                                                                                                                                           135,401                      128,667

              Stockholders' equity:

              Common stock, $0.001 par value, 75,000 shares authorized; 32,837 shares issued                                                                                                                   33                           33
    and outstanding at March 31, 2020; 32,585 shares issued and outstanding at December 31, 2019

              Additional paid-in capital                                                                                                                                                                  559,182                      559,878

              Accumulated deficit                                                                                                                                                                       (130,730)                   (140,226)

              Accumulated other comprehensive loss                                                                                                                                                        (1,313)                       (258)

              Total stockholders' equity                                                                                                                                                                  427,172                      419,427

              Total liabilities and stockholders' equity                                                                                                                                            $
        562,573               $

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