Axcelis Announces Financial Results for the Fourth Quarter and Full Year 2004.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 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 announced financial results for its fourth quarter and year ended December December: see month. 31, 2004. The Company reported net revenues of $94.5 million, compared to $127.9 million for the third quarter of 2004, and $98.6 for the corresponding quarter of the previous year. Worldwide revenues for the fourth 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, compared to $19.1 million, or $0.19 per diluted share, in the third quarter of 2004, and $3.3 million, or $0.03 per diluted share, for the fourth quarter of 2003. Gross margin for the fourth quarter of 2004 was 41.1%. For the full year 2004, worldwide revenues, including revenues of SEN, were $837.7 million, compared with $492.2 million in 2003. Net revenues, excluding SEN revenues, were $508.0 million, compared with $328.0 million in 2003. Net income for the year was $74.2 million, or $0.73 per diluted share, compared to a net loss of $113.9 million in 2003, or $1.16 per share including the effect of a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. to income tax expense of $69.7 million, or $0.70 per share. 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 stated, "We concluded a year in which we achieved several important operational and financial goals. Our 2004 financial accomplishments include improving operating efficiencies, reducing fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). , growing margins and generating cash." "In 2004 we also made significant investments in developing products that meet the emerging needs of our customers, positioning us very well for long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth. Our new products for ion implant implant /im·plant/ (im-plant´) to insert or to graft (tissue, or inert or radioactive material) into intact tissues or a body cavity. and low-k In semiconductor manufacturing, a Low-κ dielectric is a material with a small dielectric constant relative to silicon dioxide. Although the proper symbol for the dielectric constant is the Greek letter κ (kappa), in conversation such materials are referred to as being curing and cleaning continue to develop strong customer interest. This quarter we will launch a new single wafer (1) A small, thin continuous-loop magnetic tape cartridge that has been used from time to time for data storage and specialized applications. (2) The base unit of chip making. It is a slice taken from a salami-like silicon crystal ingot up to 12" (300mm) in diameter. implant platform that maximizes performance while minimizing the challenges and costs associated with scaling. Our next-generation product platforms will put us in a unique position to deliver exceptional value to our customers for 65 nanometer One billionth of a meter. Nanometers are used to measure the wavelengths of light. See angstrom and metric system. production and beyond," continued Puma. "In terms of the fourth quarter, our financial results were in line with our expectations. Compared to the fourth quarter of 2003, we appreciably ap·pre·cia·ble adj. Possible to estimate, measure, or perceive: appreciable changes in temperature. See Synonyms at perceptible. improved profitability and increased positive cash flow on lower revenue. Our fourth quarter bookings reflect weak customer demand primarily attributable to declining fab utilization. We anticipate that our first quarter bookings will show improvement, since several orders expected to book in the fourth quarter were delayed to the first quarter of 2005. Although visibility is poor, we are hopeful that this signals a bottoming of industry fundamentals," concluded Puma. 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 and year, 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. Fourth Quarter Detail Shipments Shipments for the fourth quarter on a worldwide basis, including SEN, totaled $150.4 million with net shipments, excluding SEN, totaling $90.3 million. Worldwide shipments were down 33% from the third quarter of 2004 and net shipments were down 30%. Geographically, systems shipments excluding SEN were to: Asia 66%, Europe 8% 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. 26%. 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 $41.9 million for the quarter, down 6.5% from the third quarter of 2004. The 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. business (excluding SEN) accounted for 76% of total shipments in the fourth quarter while the complementary 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 24%. 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 fourth quarter totaled $87.4 million, compared to $126.3 million for the third quarter of 2004. New system bookings, excluding service, amounted to $45.5 million compared to $81.5 million for the preceding quarter. Worldwide orders, including SEN, were $122.7 million, compared to $234.3 million for the third quarter of 2004. Geographically, net system orders without SEN were split as follows: Asia 70%, Europe 9% and North America 21%. Logic manufacturers (integrated device manufacturers See IDM. and foundries) accounted for 52% of systems orders while memory manufacturers made up 48%. Backlog plus deferred systems revenue for the quarter ended at $118.4 million, a decrease of 19.3% since the end of the third 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 year with $193.4 million in cash and cash equivalents, restricted cash 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 generated $25.8 million in cash during the fourth quarter. First Quarter Outlook Net revenues (excluding SEN) for the first quarter of 2005 are forecast in the range of $95 million to $105 million. Gross margins are projected in the range of 42% to 43%. The Company expects to earn between $0.01 and $0.05 per share. Results for the first quarter will be impacted negatively by 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 relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. costs of $2 to $3 million ($0.02 to $0.03 per share). The Company has also forecast the contribution from SEN for the quarter to decrease significantly due to the declining market in Japan. The Company expects cash outflow to approximate $15 million in the first quarter as several annual or semi annual payments for variable compensation, insurance, 401K matching, and interest become payable. Fourth Quarter 2004 Conference Call The company will be hosting a conference call today, Thursday, February 3, 2005, beginning at 5:00 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. . The purpose of the call is to discuss fourth quarter results for 2004 and to provide guidance for the first quarter of 2005. The call will be available to interested listeners via an audio webcast that can be accessed through Axcelis' home page at www.axcelis.com or by dialing 1-800-475-3716 (1-719-457-2728 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 Q4. A telephone replay will be available from 8:00 p.m. EST on February 3, 2005 until 11:59 p.m. EST on February 10, 2005. Dial 1-888-203-1112 (1-719-457-0820 outside North America), and enter conference ID code #938183. A webcast replay will be available from 8:00 p.m. EST on February 3, 2005 until 5:00 p.m. EST March 3, 2005. New Single Wafer Implant Product Announcement Conference Call To learn more about Axcelis' new single wafer product platform, please join Axcelis for a webcast at 1:00 p.m. EST on February 16, 2005. The live presentation will be accessible through Axcelis' home page at www.axcelis.com. Prior to the start of the webcast, please access the presentation feed by clicking on "Investors" and "Events" and click on the appropriate icon. For audio only and to participate in the Q&A, dial 1-800-967-7135 (1-719-457-2626 outside North America). Participants calling into the conference call will be requested to provide the company name: Axcelis Technologies and the conference leader: James Kawski. A telephone replay will be available from 8:00 p.m. EST on February 16, 2005 until 11:59 p.m. EST on February 23, 2005. Dial 1-888-203-1112 (1-719-457-0820 outside North America), and enter conference ID code #6444767. A webcast replay will be available from 8:00 p.m. EST on February 16, 2005 until 5:00 p.m. EST on March 16, 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 and our product development and product introduction targets, 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 Statements of Operations
In thousands, except per share amounts
Three months ended Twelve Months Ended
December 31, December 31,
--------------------- ---------------------
2004 2003 2004 2003
Revenue
Systems $48,529 $60,187 $326,521 $194,889
Services 41,930 35,703 167,027 127,084
Royalties 4,048 2,729 14,428 6,017
---------- ---------- ---------- ----------
94,507 98,619 507,976 327,990
Cost of Revenue 55,634 60,129 296,448 217,622
---------- ---------- ---------- ----------
Gross profit 38,873 38,490 211,528 110,368
Operating expenses
Research & development 15,200 14,908 63,209 63,284
Selling 10,910 10,612 47,593 46,202
General and
administrative 11,504 10,674 46,149 41,057
Amortization of
intangible assets 612 662 2,448 1,955
Restructuring charges 994 162 994 4,907
---------- ---------- ---------- ----------
39,220 37,018 160,393 157,405
---------- ---------- ---------- ----------
Income (loss) from
operations (347) 1,472 51,135 (47,037)
Other income (expense)
Equity income of
Sumitomo
Eaton Nova
Corporation 8,319 4,420 30,531 8,954
Interest income 827 322 2,032 1,807
Interest expense (1,656) (1,566) (6,673) (6,229)
Other-net (795) (891) (1,886) (1,836)
---------- ---------- ---------- ----------
6,695 2,285 24,004 2,696
---------- ---------- ---------- ----------
Income (loss) before
income taxes 6,348 3,757 75,139 (44,341)
Income taxes (credit) (693) 487 964 69,535
---------- ---------- ---------- ----------
Net income (loss) $7,041 $3,270 $74,175 $(113,876)
========== ========== ========== ==========
Basic net income (loss)
per share $0.07 $0.03 $0.75 $(1.16)
Diluted net income
(loss) per share $0.07 $0.03 $0.73 $(1.16)
Shares used in
computing:
Basic net income
(loss) per share 99,814 98,785 99,528 98,514
Diluted net income
(loss) per share 100,620 98,785 101,205 98,514
Axcelis Technologies, Inc.
Consolidated Balance Sheets
In thousands
December 31, December 31,
2004 2003
------------- -------------
Assets
Current assets
Cash and cash equivalents $168,495 $93,249
Restricted cash 3,498 3,800
Short-term investments 18,517 14,972
Accounts receivable, net 83,767 73,751
Inventories 116,330 123,985
Other current assets 14,986 19,554
------------- -------------
Total current assets 405,593 329,311
Property, plant & equipment, net 75,275 80,927
Investment in Sumitomo Eaton Nova
Corporation 109,095 73,327
Goodwill 46,773 46,774
Intangible assets 17,671 20,119
Restricted cash, long-term portion 2,841 2,616
Other assets 32,992 31,973
------------- -------------
$690,240 $585,047
============= =============
Liabilities and stockholders' equity
Current liabilities
Accounts payable $24,278 $35,787
Accrued compensation 27,030 15,061
Warranty 9,218 17,000
Income taxes 5,894 7,109
Deferred revenue 34,050 14,441
Other current liabilities 8,289 11,925
------------- -------------
Total current liabilities 108,759 101,323
Long-term debt 125,000 125,000
Other long-term liabilities 12,994 5,474
Stockholders' equity
Common stock 100 99
Additional paid-in capital 457,335 451,389
Deferred compensation (566) (811)
Treasury stock - at cost (1,218) (1,218)
Retained earnings deficit (27,332) (101,507)
Accumulated other comprehensive income 15,168 5,298
------------- -------------
443,487 353,250
------------- -------------
$690,240 $585,047
============= =============
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