Axcelis Announces Financial Results For Fourth Quarter And Full Year 2020

February 10, 2021 at 4:01 PM EST
Full Year 2020 Operating Income Increased 140% on a 38% Increase in Revenue

BEVERLY, Mass., Feb. 10, 2021 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the fourth quarter and full year ended December 31, 2020.

The Company reported fourth quarter revenue of $122.2 million, compared to $110.4 million for the third quarter of 2020. Operating profit for the quarter was $14.1 million, compared to $13.9 million for the third quarter. Net income for the quarter was $14.7 million, or $0.43 per diluted share, compared to net income for the third quarter of $10.8 million, or $0.32 per diluted share. EPS was favorably impacted by a previously unrecognized tax benefit of $0.11 per diluted share. Gross margin for the quarter was 43.4%, compared to 43.6% in the third quarter. Cash, cash equivalents and restricted cash were $204.2 million on December 31, 2020, compared to $212.7 million on September 30, 2020.

For the full year 2020, the Company reported revenue of $474.6 million, compared with $343.0 million for the full year 2019. Systems revenue for the year was $293.6 million, compared to $202.6 million in 2019. Operating profit was $58.0 million in 2020, compared to $24.2 million in 2019. Net income for the year was $50.0 million with diluted earnings per share of $1.46. This compares to 2019 net income of $17.0 million and earnings per diluted share of $0.50.

President and CEO Mary Puma commented, "After extraordinary revenue and earnings results in 2020, we are planning for another year of growth at Axcelis. The semiconductor market is forecast to show strength across all markets and the expanded Purion product family, specifically targeted at these markets, is poised for further growth."

Executive Vice President and Chief Financial Officer Kevin Brewer said, "Axcelis delivered exceptional fourth quarter and full year 2020 financial performance. The Company achieved its highest annual revenue in the last 15 years due to the strength of the market and the competitive Purion product line. For the full year 2020, operating profit increased 140% on a 38% increase in revenue, highlighting the significant leverage in our business model."

Business Outlook
For the first quarter ending March 31, 2021, Axcelis expects revenues ranging from $118 to $138 million. Gross margin in the first quarter is expected to be approximately 40%. First quarter operating profit is forecasted to be in the range of $11-19 million with earnings per diluted share in the range of $0.22-0.42. The high end of our revenue range assumes the issuances of required U.S. Government export licenses in the first quarter.

Fourth Quarter and Full Year 2020 Conference Call
The Company will host a call to discuss the results for the fourth quarter and full year 2020 on Thursday, February 11, 2021 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, or by dialing 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 Audience Passcode: 3582149. 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 


Twelve months ended



December 31,


December 31,


2020

2019

2020

2019

Revenue:










Product

$

115,777

$

102,304

$

449,903

$

319,505

Services

6,422

5,419

24,657

23,453

Total revenue

122,199

107,723

474,560

342,958

Cost of revenue:










Product

63,272

57,627

252,390

175,732

Services

5,952

5,780

23,586

23,074

Total cost of revenue

69,224

63,407

275,976

198,806

Gross profit

52,975

44,316

198,584

144,152

Operating expenses:










Research and development

16,320

13,596

61,833

53,931

Sales and marketing

11,342

8,879

38,746

34,290

General and administrative

11,238

8,629

39,964

31,726

Total operating expenses

38,900

31,104

140,543

119,947

Income from operations

14,075

13,212

58,041

24,205

Other income (expense):










Interest income

80

582

738

2,955

Interest expense

(1,313)

(1,306)

(5,211)

(5,155)

Other, net

1,617

169

2,318

(1,083)

Total other income (expense)

384

(555)

(2,155)

(3,283)

Income before income taxes

14,459

12,657

55,886

20,922

Income tax (benefit) provision


(215)

2,945

5,904

3,888

Net income

$

14,674

$

9,712

$

49,982

$

17,034

Net income per share:










Basic

$

0.44

$

0.30

$

1.50

$

0.52

Diluted

$

0.43

$

0.29

$

1.46

$

0.50

Shares used in computing net income per share:










Basic weighted average common shares

33,548

32,485

33,257

32,559

Diluted weighted average common shares

34,318

33,848

34,128

33,828

 

 

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)







December 31,


December 31,


2020

2019

ASSETS




Current assets:




Cash and cash equivalents

$

203,479

$

139,881

Accounts receivable, net

86,865

83,753

Inventories, net

161,076

140,364

Prepaid expenses and other current assets

19,371

11,681

Total current assets

470,791

375,679

Property, plant and equipment, net

29,840

25,328

Operating lease assets

4,542

5,849

Finance lease assets, net

20,544

21,880

Long-term restricted cash

753

6,653

Deferred income taxes

57,851

68,060

Other assets

40,303

44,645

Total assets

$

624,624

$

548,094

LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$

24,013

$

25,341

Accrued compensation

24,562

7,631

Warranty

4,280

2,759

Income taxes

654

294

Deferred revenue

21,221

24,601

Current portion of finance lease obligation

756

399

Other current liabilities

8,945

7,639

Total current liabilities

84,431

68,664

Long-term finance lease obligation

47,393

48,149

Long-term deferred revenue

1,837

4,650

Other long-term liabilities

9,361

7,204

Total liabilities

143,022

128,667






Stockholders' equity:




Common stock, $0.001 par value, 75,000 shares authorized; 33,633 shares
issued and outstanding at December 31, 2020; 32,585 shares issued and
outstanding at December 31, 2019

34

33

Additional paid-in capital

570,102

559,878

Accumulated deficit

(91,969)

(140,226)

Accumulated other comprehensive income (loss)

3,435

(258)

Total stockholders' equity

481,602

419,427

Total liabilities and stockholders' equity

$

624,624

$

548,094






 

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SOURCE Axcelis Technologies, Inc.