Axcelis Announces Financial Results for the First Quarter of 2005.BEVERLY Beverly, city (1990 pop. 38,195), Essex co., NE Mass., on Massachusetts Bay; inc. as a city 1894. Its chief manufactures are electronic and scientific equipment, consumer goods, and chemicals. , Mass. -- Axcelis Technologies Axcelis Technologies, Inc. NASDAQ: ACLS engages in the design, manufacture, and servicing of capital equipment for the semiconductor manufacturing industry worldwide. , Inc. (Nasdaq: ACLS ACLS abbr. advanced cardiac life support ) today announced financial results for its first quarter ended March 31, 2005. The Company reported net revenues of $100.0 million, compared to $94.5 million for the fourth quarter of 2004. Worldwide revenues for the first quarter, including revenues of the Company's 50% owned joint venture in Japan, Sumitomo Eaton Eaton may refer to: Buildings
tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, which included restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and related costs of $2.9 million, or $0.03 per diluted share. This compared to $7.0 million, or $0.07 per diluted share, in the fourth quarter of 2004. Gross margin for the first quarter of 2005 was 41.8%. Mary Mary, the mother of Jesus Mary, in the Bible, mother of Jesus. Christian tradition reckons her the principal saint, naming her variously the Blessed Virgin Mary, Our Lady, and Mother of God (Gr., theotokos). Her name is the Hebrew Miriam. Puma, president and chief executive officer, said, "Given Axcelis' lower worldwide revenue and restructuring related costs in the first quarter, our results reflect the progress we have made during the past year in enhancing 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. and lowering the Company's breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations point. As we begin the second quarter, we continue to implement actions to improve our operational performance and sustain profitability through the cycle. "On the product front, we are proud to be recognized once again as the market share leader in ion implantation Ion implantation A process that utilizes accelerated ions to penetrate a solid surface. The implanted ions can be used to modify the surface composition, structure, or property of the solid material. in 2004 according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Gartner (Gartner, Inc., Stamford, CT, www.gartner.com) The largest information technology consulting firm that specializes in research and analysis. Founded in 1979 by Gideon Gartner, it has grown through acquisitions, including Dataquest in 1995 and Techrepublic in 2000. Dataquest (Dataquest Inc., San Jose, CA, www.dataquest.com) A major market research and analysis firm in the information field. Dataquest offers market intelligence on more than 25 topics and provides conferences, annual subscriptions and custom research. . We are also very pleased with the strides we have made with our next generation implant implant /im·plant/ (im-plant´) to insert or to graft (tissue, or inert or radioactive material) into intact tissues or a body cavity. platform, the Optima(TM). We have already shipped the first Optima MD, and another Optima MD will ship to a second customer later this quarter. As the industry moves into 65nm production we expect that Axcelis will be the only company to have implant products optimized for both established and emerging markets." Axcelis believes that the information regarding the aggregate revenues of SEN, a 50% owned unconsolidated subsidiary of Axcelis, combined with Axcelis' own revenues for the quarter, is useful to investors. SEN's ion implant products are covered by a license from Axcelis and therefore the combined revenue of the two companies indicates the full market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" of Axcelis' technology. First Quarter Detail Shipments Shipments for the first quarter on a worldwide basis, including SEN, totaled $169.4 million with net shipments, excluding SEN, totaling $99.8 million. Worldwide shipments were up 12.6% from the fourth quarter of 2004 and net shipments were up 10.5%. Geographically, systems shipments were to: Asia 73%, Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). 10% and
North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. 17%.
Service revenue (service labor, spare parts Spare parts, also referred to as Service Parts is a term used to indicate extra parts available and in proximity to the mechanical item, such as a automobile, boat, engine, for which they might be used. Spare parts are also called “spares. and consumables) was $38.4 million for the quarter, down 8.3% from the fourth quarter of 2004. The ion implantation business (excluding SEN) accounted for 76.3% of total shipments in the first quarter while the other products (RTP (1) (Rapid Transport Protocol) The protocol used in IBM's High Performance Routing (HPR) system. (2) (Realtime Transport Protocol) An IP protocol that supports real time transmission of voice and video. , Dry Strip and Curing) accounted for 23.7%. Orders and Backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. Orders (new systems bookings and service excluding SEN) received for the first quarter totaled $82.5 million, compared to $87.4 million for the fourth quarter of 2004. New system bookings, excluding service, amounted to $44.1 million compared to $45.5 million for the preceding quarter. Worldwide orders, including SEN, were $140.0 million, compared to $122.7 million for the fourth quarter of 2004. Backlog plus deferred systems revenue for the quarter ended at $102.2 million, a decrease of 13.7% since the end of the fourth quarter of 2004. Reported backlog consists of systems only (i.e., excluding service contracts) that are generally scheduled to ship within six months. Balance Sheet Axcelis ended the quarter with $185.0 million in cash, cash equivalents and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments. The Company's cash position decreased by $8.3 million during the first quarter due largely to seasonal annual expenses. Second Quarter Outlook Axcelis' financial outlook for the second quarter of 2005 assumes no material change in the semiconductor spending environment. Worldwide revenues are expected to be $178 million to $193 million, a 20 % increase over first quarter levels. Net revenues (excluding SEN) in the second quarter are expected to be in a range of $85 million to $95 million. The Company anticipates gross margins in the low 40s and that net income will be in the range of breakeven to $4 million ($0.00 to $0.04 per diluted share). The Company expects to consume approximately $10 million of cash during the second quarter. Axcelis assumes no responsibility to update guidance. Axcelis will only confirm or update guidance via a press release. First Quarter 2005 Conference Call The Company will be hosting a conference call today, Wednesday Wednesday: see week. , May 4, 2005, beginning at 5:00 pm ET. The purpose of the call is to discuss first-quarter 2005 results and to provide guidance for the second quarter of 2005. The call will be available to interested listeners via an audio web cast that can be accessed through Axcelis' home page at or by dialing 1-800-474-8920 (1-719-457-2727 outside North America). Participants calling into the conference call will be requested to provide the company name: Axcelis Technologies, the conference leader: James Kawski, and pass code: Axcelis Q1. A telephone replay will be available from 8:00 pm ET on May 4, 2005 until 11:59 pm ET on May 11, 2005. Dial 1-888-203-1112 (1-719-457-0820 outside North America), and enter conference ID code #2363642. A web cast replay will be available from 8:00 pm ET on May 5, 2005 until 5:00 pm ET June 5, 2005. 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 the conversion of orders to revenue in any particular quarter, or at all, 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 relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc 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. 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 solutions for the semiconductor industry. Axcelis is dedicated to developing enabling process applications through the design, manufacture and complete life cycle support of ion implantation, 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. , and cleaning and curing systems. Axcelis Technologies has key product development centers in Beverly, Massachusetts, as well as in Toyo, Japan through its joint venture, SEN. The company's Internet address There are two kinds of addresses that are widely used on the Internet. One is a person's e-mail address, and the other is the address of a Web site, which is known as a URL. Following is an explanation of Internet e-mail addresses only. For more on URLs, see URL and Internet domain name. is: www.axcelis.com.
Axcelis Technologies, Inc.
Consolidated Balance Sheets
In thousands
March 31, December 31,
2005 2004
----------- ------------
Assets
Current assets
Cash, cash equivalents and short-term
investments $178,625 $187,012
Restricted cash 3,805 3,498
Accounts receivable, net 79,491 83,767
Inventories 111,910 116,330
Other current assets 23,185 14,986
----------- ------------
Total current assets 397,016 405,593
Property, plant & equipment, net 73,332 75,275
Investment in Sumitomo Eaton Nova Corporation 106,514 109,095
Goodwill 46,773 46,773
Intangible assets 17,059 17,671
Restricted cash, long-term portion 2,583 2,841
Other assets 31,633 31,628
----------- ------------
$674,910 $688,876
=========== ============
Liabilities and stockholders' equity
Current liabilities
Accounts payable $23,222 $24,278
Accrued compensation 17,039 27,030
Warranty 9,615 9,218
Income taxes 3,346 4,530
Deferred revenue 35,765 34,050
Other current liabilities 6,543 8,289
----------- ------------
Total current liabilities 95,530 107,395
Long-term debt 125,000 125,000
Long-term deferred revenue 7,796 7,697
Other long-term liabilities 5,289 5,297
Stockholders' equity
Common stock 100 100
Additional paid-in capital 458,615 457,335
Deferred compensation (536) (566)
Treasury stock - at cost (1,218) (1,218)
Retained earnings deficit (25,434) (27,332)
Accumulated other comprehensive income 9,768 15,168
----------- ------------
441,295 443,487
----------- ------------
$674,910 $688,876
=========== ============
Axcelis Technologies, Inc.
Consolidated Statements of Operations
In thousands, except per share amounts
Three months
ended
March 31,
-----------------
2005 2004
-------- --------
Revenue
Systems $59,693 $91,756
Services 38,441 39,091
Royalties 1,902 3,377
-------- --------
100,036 134,224
Cost of Revenue 58,239 84,048
-------- --------
Gross profit 41,797 50,176
Operating expenses
Research & development 15,867 15,437
Selling 11,870 11,599
General and administrative 11,183 11,095
Amortization of intangible assets 612 612
Restructuring charges 1,799 -
-------- --------
41,331 38,743
-------- --------
Income from operations 466 11,433
Other income (expense)
Equity income of Sumitomo
Eaton Nova Corporation 2,339 5,569
Interest income 1,010 296
Interest expense (1,654) (1,672)
Other-net (14) (591)
-------- --------
1,681 3,602
-------- --------
Income before income taxes 2,147 15,035
Income taxes 249 1,454
-------- --------
Net income $1,898 $13,581
======== ========
Basic net income per share $0.02 $0.14
Diluted net income per share $0.02 $0.13
Shares used in computing:
Basic net income per share 100,138 99,208
Diluted net income per share 100,929 101,479
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