Axcelis Announces Financial Results For Third Quarter 2020

Rhea-AI Summary

Axcelis Technologies (ACLS) reported third-quarter 2020 revenue of $110.4 million, down from $123 million in Q2 2020. Operating profit decreased to $13.9 million, while net income was $10.8 million or $0.32 per diluted share, compared to $13.3 million or $0.39 per diluted share in the previous quarter. Gross margin improved to 43.6%. Cash and equivalents rose to $212.7 million. For Q4, revenue is projected to be around $110 million with a 41% gross margin and earnings per share of $0.21.

Positive

• Gross margin improved to 43.6%, up from 42.2% in Q2.
• Strong earnings driven by robust gross margins.
• Cash and equivalents increased to $212.7 million from $197 million.

Negative

• Revenue declined from $123 million in Q2 to $110.4 million.
• Operating profit decreased from $16.4 million in Q2 to $13.9 million.
• Net income fell from $13.3 million or $0.39 per share to $10.8 million or $0.32 per share.

BEVERLY, Mass., Nov. 5, 2020 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the third quarter ended September 30, 2020.

The Company reported third quarter revenue of $110.4 million, compared to $123 million for the second quarter of 2020. Operating profit for the quarter was $13.9 million, compared to $16.4 million for the second quarter. Net income for the quarter was $10.8 million, or $0.32 per diluted share, compared to net income for the second quarter of $13.3 million, or $0.39 per diluted share. Gross margin for the quarter was 43.6%, compared to 42.2% in the second quarter. Cash, cash equivalents and restricted cash were $212.7 million on September 30, 2020, compared to $197 million on June 30, 2020.

President and CEO Mary Puma commented, "We are pleased with our third quarter performance, which met or exceeded guidance and consensus. The Company delivered strong earnings driven by robust gross margins. We continue to expand our large and diverse customer base in key market segments, with new penetrations of the Purion H and new Purion product extensions. We are exiting 2020 with good momentum, positioning us well to capitalize on the expectation that 2021 will be a strong investment year and for the achievement of our $550 and $650 million dollar target models over the next several years." 

Business Outlook
For the fourth quarter ending December 31, 2020, Axcelis expects revenues to be approximately $110 million with gross margin around 41%. Fourth quarter operating profit is forecasted to be approximately $10 million with earnings per diluted share of approximately $0.21.

Third Quarter 2020 Conference Call
The Company will host a call to discuss the results for the third quarter 2020 on Friday, November 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 www.axcelis.com. If you would like to ask a question, the dial in number is 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: 1999553. 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						Nine months ended
			September 30,					September 30,
		2020			2019			2020			2019
Revenue:
Product		$	104,799		$	64,290		$	334,126		$	217,201
Services			5,606			5,163			18,235			18,034
Total revenue			110,405			69,453			352,361			235,235
Cost of revenue:
Product			56,427			33,587			189,118			118,105
Services			5,817			5,285			17,634			17,294
Total cost of revenue			62,244			38,872			206,752			135,399
Gross profit			48,161			30,581			145,609			99,836
Operating expenses:
Research and development			14,867			12,930			45,513			40,335
Sales and marketing			9,763			8,057			27,404			25,411
General and administrative			9,649			7,707			28,726			23,097
Total operating expenses			34,279			28,694			101,643			88,843
Income from operations			13,882			1,887			43,966			10,993
Other (expense) income:
Interest income			106			687			658			2,373
Interest expense			(1,296)			(1,308)			(3,898)			(3,849)
Other, net			900			(890)			701			(1,252)
Total other expense			(290)			(1,511)			(2,539)			(2,728)
Income before income taxes			13,592			376			41,427			8,265
Income tax provision (benefit)			2,807			(328)			6,119			943
Net income		$	10,785		$	704		$	35,308		$	7,322
Net income per share:
Basic		$	0.32		$	0.02		$	1.06		$	0.22
Diluted		$	0.32		$	0.02		$	1.04		$	0.22
Shares used in computing net income per share:
Basic weighted average common shares			33,477			32,344			33,159			32,584
Diluted weighted average common shares			34,174			33,323			34,070			33,821

 

Axcelis Technologies, Inc. Consolidated Balance Sheets (In thousands, except per share amounts) (Unaudited)
		September 30,			December 31,
		2020			2019
ASSETS
Current assets:
Cash and cash equivalents		$	211,967		$	139,881
Accounts receivable, net			45,161			83,753
Inventories, net			159,658			140,364
Prepaid expenses and other current assets			18,982			11,681
Total current assets			435,768			375,679
Property, plant and equipment, net			29,199			25,328
Operating lease assets			4,655			5,849
Finance lease assets, net			20,872			21,880
Long-term restricted cash			750			6,653
Deferred income taxes			58,247			68,060
Other assets			41,165			44,645
Total assets		$	590,656		$	548,094
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	24,260		$	25,341
Accrued compensation			18,856			7,631
Warranty			4,151			2,759
Income taxes			328			294
Deferred revenue			13,118			24,601
Current portion of finance lease obligation			705			399
Other current liabilities			7,965			7,639
Total current liabilities			69,383			68,664
Long-term finance lease obligation			47,593			48,149
Long-term deferred revenue			3,851			4,650
Other long-term liabilities			9,166			7,204
Total liabilities			129,993			128,667
Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 33,491 shares issued and outstanding at September 30, 2020; 32,585 shares issued and outstanding at December 31, 2019			33			33
Additional paid-in capital			566,195			559,878
Accumulated deficit			(106,643)			(140,226)
Accumulated other comprehensive income (loss)			1,078			(258)
Total stockholders' equity			460,663			419,427
Total liabilities and stockholders' equity		$	590,656		$	548,094

 

View original content to download multimedia:http://www.prnewswire.com/news-releases/axcelis-announces-financial-results-for-third-quarter-2020-301167369.html

SOURCE Axcelis Technologies, Inc.

FAQ

What were Axcelis Technologies' Q3 2020 financial results?

Axcelis reported Q3 2020 revenue of $110.4 million, with a net income of $10.8 million, or $0.32 per diluted share.

How did Axcelis' gross margin change in Q3 2020?

The gross margin improved to 43.6% in Q3 2020, up from 42.2% in Q2.

What is Axcelis' revenue guidance for Q4 2020?

Axcelis expects revenue for Q4 2020 to be approximately $110 million.

What were the net income figures for Axcelis in Q3 2020?

In Q3 2020, Axcelis reported a net income of $10.8 million, or $0.32 per diluted share.

How does Axcelis' operating profit compare from Q2 to Q3 2020?

Operating profit decreased from $16.4 million in Q2 to $13.9 million in Q3 2020.