Axcelis Announces Financial Results For Second Quarter 2020

Rhea-AI Summary

Axcelis Technologies reported a strong second quarter for 2020, with revenue increasing to $123 million, up from $119 million in Q1. Operating profit rose to $16.4 million, and net income reached $13.3 million, or $0.39 per diluted share. The gross margin improved to 42.2%, compared to 38.3% in the previous quarter. Cash reserves increased to $197 million. For Q3 2020, Axcelis anticipates revenues around $110 million and earnings per share of approximately $0.24.

Positive

• Revenue growth of 3.4% from Q1 to Q2 2020.
• Operating profit increased to $16.4 million, a positive trend.
• Gross margin improved to 42.2%, indicating better cost management.
• Cash reserves grew to $197 million, enhancing liquidity.

Negative

• Revenue guidance for Q3 2020 projected lower at $110 million, down from $123 million.

BEVERLY, Mass., Aug. 4, 2020 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the second quarter ended June 30, 2020.

The Company reported second quarter revenue of $123 million, compared to $119 million for the first quarter of 2020. Operating profit for the quarter was $16.4 million, compared to $13.7 million for the first quarter. Net income for the quarter was $13.3 million, or $0.39 per diluted share, compared to net income for the first quarter of $11.2 million, or $0.33 per diluted share. Gross margin for the quarter was 42.2%, compared to 38.3% in the first quarter. Cash, cash equivalents and restricted cash were $197 million on June 30, 2020, compared to $181.4 million on March 31, 2020.

President and CEO Mary Puma commented, "We are very pleased with our strong second quarter performance. Customer interest in our Purion platform remains strong, as evidenced by demo activity and evaluation system placements for both our Purion base platform and our new Purion product extensions. With the most innovative implant product line available, a broad and diverse customer base, a strong balance sheet and a dedicated team of employees, Axcelis has the building blocks to navigate these uncertain times and ultimately drive growth and market leadership in ion implantation."

Business Outlook
For the third quarter ending September 30, 2020, Axcelis expects revenues to be approximately $110 million with gross margin around 42.5%. Third quarter operating profit is forecasted to be in the range of $10.5-11.5 million with earnings per diluted share of approximately $0.24.

Second Quarter 2020 Conference Call
The Company will host a call to discuss the results for the second quarter 2020 on Wednesday, August 5, 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, 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: 6153997. 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						Six months ended
			June 30,					June 30,
		2020			2019			2020			2019
Revenue:
Product		$	117,194		$	68,714		$	229,327		$	152,911
Services			5,771			5,591			12,629			12,871
Total revenue			122,965			74,305			241,956			165,782
Cost of revenue:
Product			65,519			37,188			132,691			84,518
Services			5,547			5,368			11,817			12,009
Total cost of revenue			71,066			42,556			144,508			96,527
Gross profit			51,899			31,749			97,448			69,255
Operating expenses:
Research and development			16,040			13,720			30,646			27,405
Sales and marketing			9,437			8,436			17,641			17,354
General and administrative			10,041			7,583			19,077			15,390
Total operating expenses			35,518			29,739			67,364			60,149
Income from operations			16,381			2,010			30,084			9,106
Other (expense) income:
Interest income			70			845			552			1,686
Interest expense			(1,299)			(1,311)			(2,602)			(2,541)
Other, net			421			(189)			(199)			(362)
Total other expense			(808)			(655)			(2,249)			(1,217)
Income before income taxes			15,573			1,355			27,835			7,889
Income tax provision			2,271			799			3,312			1,271
Net income		$	13,302		$	556		$	24,523		$	6,618
Net income per share:
Basic		$	0.40		$	0.02		$	0.74		$	0.20
Diluted		$	0.39		$	0.02		$	0.72		$	0.19
Shares used in computing net income per share:
Basic weighted average common shares			33,116			32,729			32,998			32,706
Diluted weighted average common shares			33,958			33,901			34,023			34,064

 

 

 

Axcelis Technologies, Inc.
Consolidated Balance Sheets
(In thousands, except per share amounts)
(Unaudited)
		June 30,			December 31,
		2020			2019
ASSETS
Current assets:
Cash and cash equivalents		$	190,340		$	139,881
Accounts receivable, net			64,909			83,753
Inventories, net			149,178			140,364
Prepaid expenses and other current assets			16,272			11,681
Total current assets			420,699			375,679
Property, plant and equipment, net			27,997			25,328
Operating lease assets			5,033			5,849
Finance lease assets, net			21,200			21,880
Long-term restricted cash			6,676			6,653
Deferred income taxes			64,615			68,060
Other assets			42,344			44,645
Total assets		$	588,564		$	548,094
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	30,270		$	25,341
Accrued compensation			14,221			7,631
Warranty			3,942			2,759
Income taxes			298			294
Deferred revenue			29,181			24,601
Current portion of finance lease obligation			654			399
Other current liabilities			8,193			7,639
Total current liabilities			86,759			68,664
Long-term finance lease obligation			47,787			48,149
Long-term deferred revenue			1,236			4,650
Other long-term liabilities			7,758			7,204
Total liabilities			143,540			128,667
Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 33,433 shares issued and outstanding at June 30, 2020; 32,585 shares issued and outstanding at December 31, 2019			33			33
Additional paid-in capital			562,839			559,878
Accumulated deficit			(117,428)			(140,226)
Accumulated other comprehensive loss			(420)			(258)
Total stockholders' equity			445,024			419,427
Total liabilities and stockholders' equity		$	588,564		$	548,094

 

 

 

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SOURCE Axcelis Technologies, Inc.

FAQ

What were Axcelis Technologies' earnings for Q2 2020?

Axcelis reported net income of $13.3 million, or $0.39 per diluted share for Q2 2020.

What is the revenue forecast for Axcelis in Q3 2020?

Axcelis expects revenues to be approximately $110 million for Q3 2020.

How did Axcelis' gross margin change in Q2 2020?

The gross margin for Axcelis improved to 42.2% in Q2 2020.

When is the conference call to discuss Q2 2020 results?

The conference call is scheduled for August 5, 2020, at 8:30 am ET.