Axcelis Announces Consolidation of Manufacturing Operations; Company Reaffirms Fourth Quarter Revenue and Earnings Guidance.Business/Technology Editors BEVERLY, Mass.--(BUSINESS WIRE)--Nov. 13, 2001 Axcelis (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ACLS ACLS abbr. advanced cardiac life support ) today said it will consolidate its domestic manufacturing facilities. As part of this consolidation, its Rockville, MD, equipment production will be moved to Beverly, MA. The Company's Rockville, MD, location will continue as the Axcelis marketing and technology center of excellence for Curing and Cleaning Systems. Total effective headcount will be reduced 20% from December 2000 levels with these actions. "Today's actions are designed to increase our operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. , while enabling us to continue to support our critical new product programs for the transition to 300mm technology," said Brian Bachman, vice chairman and chief executive officer of Axcelis Technologies Axcelis Technologies, Inc. NASDAQ: ACLS engages in the design, manufacture, and servicing of capital equipment for the semiconductor manufacturing industry worldwide. , Inc. "We are committed to using this period to strengthen our market position with investments in new product development." Bachman said the actions will begin immediately and continue through the third quarter of 2002. He said the company will provide transitional assistance, severance payments, a benefits continuation program and comprehensive outplacement out·place·ment n. The process of facilitating a terminated employee's search for a new job by provision of professional services, such as counseling, paid for by the former employer. service to all affected employees. The company also reaffirmed its revenue and earnings guidance for the fourth quarter. Worldwide (including SEN) and net revenues are projected to be $60-70 million and $40-50 million, respectively, for the fourth quarter, with a corresponding net loss (before goodwill and intangible amortization) of 15 to 20 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . Since January, the company has been proactively managing its business in response to industry conditions and instituted a number of cost saving measures including executive pay freezes, workforce reductions, temporary plant shutdowns and voluntary furloughs. The company has reduced its recurring quarterly selling, general and administrative expense by 26% since the start of the year. About Axcelis Technologies, Inc. Axcelis Technologies, Inc., headquartered in Beverly, Massachusetts Beverly is a city in Essex County, Massachusetts, United States. The population was 39,862 at the 2000 census. A resort, residential and manufacturing community, Beverly includes Beverly Farms and Prides Crossing. , provides innovative, high-productivity manufacturing solutions for the semiconductor industry. Axcelis is dedicated to the design and manufacture of high current, medium current and high-energy ion implantation equipment; rapid thermal processing Rapid Thermal Processing (or RTP) refers to a semiconductor manufacturing process which heats silicon wafers to high temperatures (up to 1200 C or greater) on a timescale of several seconds or less. systems; and cleaning and curing systems. Axcelis Technologies has key technology centers in Beverly, Massachusetts, and Rockville, Maryland as well as in Toyo, Japan through its joint venture, Sumitomo Eaton Nova. The company's Internet address is: www.axcelis.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement This document contains forward-looking statements under the SEC safe harbor provisions. These statements are based on management's current expectations and should be viewed with caution. They are subject to various risks and uncertainties, many of which are outside the control of the Company, including our ability to implement successfully our profit plans, the continuing demand for semiconductor equipment, relative market growth, continuity of business relationships with and purchases by major customers, competitive pressure on sales and pricing, increases in material and other production costs that cannot be recouped in product pricing and global economic, political and financial conditions. These risks and other risk factors relating to Axcelis are described more fully in the most recent Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed by Axcelis and in other documents filed from time to time with the Securities and Exchange Commission. |
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