Axcelis Announces Second Quarter Results; Performance In-line With Company's Quarterly Guidance Despite Industry Downturn.Business/Technology Editors BEVERLY, Mass.--(BUSINESS WIRE)--July 25, 2001 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 results for its second quarter ended June 30, 2001. Worldwide sales, including SEN, Axcelis' unconsolidated joint venture in Japan were $153.4 million, down 32% sequentially from the first quarter of 2001, and down 33% from the second quarter of last year. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight (excluding SEN) for the quarter were $102.0 million, down 33% sequentially from the first quarter of 2001 and down 38% from the second quarter of last year. Net loss for the second quarter of 2001 was $2.2 million, compared to net income of $21.6 million in the second quarter of 2000. Net loss per share for the second quarter of 2001 was $0.02 compared to earnings per share of $0.27 in the second quarter of 2000. Excluding amortization of goodwill and intangibles, the company broke even on a per share basis in the second quarter of 2001 compared to earning $0.30 per share in the second quarter of 2000. Brian Bachman, vice chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. said, "Despite the cyclical downturn that the industry is experiencing, our results are consistent again with the guidance that we provided the investment community in our most recent quarterly conference call. Earlier this year, we instituted comprehensive cost control measures that led to a 12% decrease in SG&A expense in the second quarter compared to the previous quarter. In addition, our cash position remains strong at $128.4 million, and we continue to focus on asset velocity initiatives as a means of further strengthening our balance sheet. "We anticipate that our revenues will continue to be impacted in the short term. Industry overcapacity o·ver·ca·pac·i·ty n. Too great a capacity for production of commodities or delivery of services in relation to actual need: the problem of overcapacity in many large industries. has led to reduced demand for semiconductor capital equipment and has caused many chip manufacturers to decrease their capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. . These industry dynamics, coupled with uncertain macro-economic demand, provide limited near-term visibility for an industry recovery. Our current projection for third quarter worldwide, including SEN, and net revenues is in the range of $110-$120 million and $65-$70 million respectively, with corresponding net losses (before goodwill and intangible amortization) of $0.15 to $0.20 per share. "Longer term, we remain very optimistic about the prospects for our business as our operational flexibility and technological innovation allows us to respond quickly to shifting customer demand. We have recently launched several second generation 300mm tools, and this week we announced a multi-system order for our high current, high energy and 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. systems, indicating their initial success. We have also announced advanced process-enabling joint development projects with Dow Corning Dow Corning is a multinational corporation headquartered in Midland, Michigan, USA. Dow Corning specializes in silicon and silicone-based technology, offering more than 7,000 products and services. Dow Corning is equally owned by The Dow Chemical Company and Corning, Inc. Corp., ASM (1) (Association for Systems Management) An international membership organization based in Cleveland, Ohio. Founded in 1947 and disbanded in 1996, it sponsored conferences in all phases of administrative systems and management. and SEZ SEZ Special Economic Zone SEZ Stream Environment Zone SEZ Mahe Island, Seychelles - Mahe Island Seychelles International (Airport Code) to position us as a leader in advanced 0.1 micron technologies. We continue to invest in research and development through the downturn, and to pursue our strategy of providing a sequential set of process tools, applications and services with a focus on delivering leading edge technology and lean manufacturing Lean manufacturing is the production of goods using less of everything compared to mass production: less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product. ." 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 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 manufacturing solutions for the semiconductor industry. Axcelis is dedicated to the design and manufacture of high current, medium current and high energy 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. 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 photostabilization and photoresist stripping equipment. Axcelis Technologies has manufacturing facilities in Beverly and Rockville, Maryland Rockville is the county seat of Montgomery County, Maryland, United States. According to the 2006 census update, the city had a total population of 59,114, making it the second largest city in Maryland. , as well as in Toyo, Japan through its joint venture, Sumitomo Eaton Nova. 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: . 2nd Quarter Earnings Conference Call Please join us for our 2nd quarter earnings conference call on July 25th, 5:00 pm EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . A webcast of the call can be accessed at our website: www.axcelis.com. The dial in numbers in numbered parts; as, a book published in numbers. See also: Number for the teleconference are as follows: Domestic: 888-588-7932; outside 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. : 706-634-7442. You will be asked to provide the company name, Axcelis Technologies; the conference leader, Mark Namaroff; and the pass code, Axcelis 2Q. A telephone replay will also be available from 8:00 pm EDT on July 25, 2001 until midnight August 1, 2001. Dial 1-800-642-1687 (1-706-645-9291 outside North America). Please enter conference ID code # 36125. A webcast replay will also be available from 8:00 pm EDT on July 25, 2001 until 5:00 pm EDT August 24, 2001.
Consolidated Balance Sheets
In thousands
June 30, 2001 December 31, 2000
Assets
Current assets:
Cash and cash equivalents $ 128,396 $ 168,157
Accounts receivable 107,964 150,482
Inventories 115,345 122,036
Deferred income taxes &
other current assets 27,307 26,851
Total current assets 379,012 467,526
Property, plant &
equipment, net 87,955 75,653
Investment in Sumitomo
Eaton Nova Corporation 49,372 44,915
Goodwill 41,130 42,977
Intangible assets 17,472 20,418
Other assets 29,205 20,842
Total assets $ 604,146 $ 672,331
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 29,930 $ 46,855
Payable to Eaton
Corporation - 25,818
Accrued compensation 12,855 17,686
Warranty reserve 30,048 33,324
Income taxes payable 2,320 31,153
Other current liabilities 21,529 15,342
Total current liabilities 96,682 170,178
Deferred income taxes 7,493 7,391
Other long-term liabilities 3,391 3,393
Stockholders' equity
Common stock 97 97
Additional paid-in capital 438,107 437,472
Treasury stock - at cost (743) -
Retained earnings 72,722 58,682
Accumulated other
comprehensive income (loss) (13,603) (4,882)
Total stockholders' equity $ 496,580 $ 491,369
Total liabilities and
stockholders' equity $ 604,146 $ 672,331
Consolidated Statements of Operations
In thousands, except per share amounts
Three months ended Six months ended
June 30, June 30,
2001 2000 2001 2000
Net sales $ 102,002 $ 165,844 $ 254,151 $ 308,895
Cost of
products sold 62,902 92,576 151,703 174,153
Gross profit 39,100 73,268 102,448 134,742
Operating expenses:
Research &
development 18,789 17,377 38,051 33,502
Selling 13,429 13,420 26,809 25,018
General &
administrative 14,068 14,595 31,779 27,625
Amortization of
goodwill &
intangible
assets 2,320 2,320 4,640 4,640
Income (loss)
from operations (9,506) 25,556 1,169 43,957
Other income (expense):
Royalty income 1,781 3,949 4,581 7,772
Equity income
of Sumitomo
Eaton Nova
Corporation 3,567 3,316 10,199 6,656
Interest Income 1,424 947 3,801 1,439
Other income
(expense) - net (253) (2,281) (248) (1,224)
Income before
income taxes (2,987) 31,487 19,502 58,600
Income taxes (837) 9,916 5,461 18,167
Net income (loss) $ (2,150) $ 21,571 $ 14,041 $ 40,433
Basic net income
(loss) per share $ (0.02) $ 0.27 $ 0.14 $ 0.51
Diluted net income
(loss) per share $ (0.02) $ 0.27 $ 0.14 $ 0.51
Shares used
in computing:
Basic net income
(loss) per share 97,056 80,000 97,053 80,000
Diluted net income
(loss) per share 97,056 80,000 97,965 80,000
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