Axcelis Announces Financial Results for Fourth Quarter and Full Year 2008


BEVERLY, Mass., March 31, 2009 (GLOBE NEWSWIRE) -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the fourth quarter and full year ended December 31, 2008. The Company reported fourth quarter revenue of $42.0 million, compared to $46.5 million for the third quarter of 2008. Net loss for the fourth quarter was $141.4 million, or $1.37 per share, which includes charges for restructuring of $3.4 million ($0.03 per share), impairment of intangible and long-lived assets of $46.9 million ($0.46 per share), impairment of goodwill of $42.1 million ($0.41 per share), and excess inventory of $23.2 million ($0.23 per share). This compares to a net loss for the third quarter of 2008 of $24.7 million, or $0.24 per share. In the corresponding quarter for the previous year, the Company reported revenues of $89.6 million, and net loss of $10.6 million, or $0.10 per share, which includes a charge for restructuring of $2.5 million ($.02 per share.)

For the full year 2008, the Company reported revenue of $250.2 million compared with $404.8 million in 2007. Net loss for the year was $196.7 million, or $1.91 per share, which includes charges for restructuring of $6.9 million ($0.07 per share), impairment of intangible and long-lived assets of $46.9 million ($0.46 per share), impairment of goodwill of $42.1 million ($0.41 per share), and excess inventory of $24.6 million ($0.24 per share.) In 2007, the Company reported a net loss of $11.4 million, or $0.11 per share which includes charges for restructuring of $2.5 million ($0.03 per share) and impairment of goodwill of $4.7 million ($0.05 per share).

Separately, as previously reported, on March 30, 2009, Axcelis completed the sale of its 50% interest in SEN Corporation to Sumitomo Heavy Industries, Ltd. (SHI). The Company received net proceeds from the sale of approximately $122.3 million after advisor fees and other expenses and will recognize a gain on the sale of approximately $1.2 million in the first quarter of 2009.

Fourth Quarter Detail

Shipments

Shipments, including aftermarket business, before provision for deferred revenue for the fourth quarter totaled $37.3 million. Geographically, Axcelis' systems shipments were to: North America, 22%; and Europe, 78%. The ion implantation business accounted for 80% of total shipments in the fourth quarter.

Orders and Backlog

Orders (new systems bookings and aftermarket) received for the fourth quarter totaled $27.4 million. New systems bookings, excluding aftermarket, amounted to $0.1 million. Backlog plus deferred systems revenue at quarter end was $20.7 million. Backlog consists of systems orders (aftermarket orders are excluded) that are generally scheduled to ship within six months.

Balance Sheet

Cash and cash equivalents were $37.7 million at December 31, 2008. The Company ended the quarter with working capital of $111.2 million.

About Axcelis Technologies, Inc.

Axcelis Technologies, Inc., headquartered in Beverly, Massachusetts, 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 and cleaning systems. The company's Internet address is: www.axcelis.com.



                       Axcelis Technologies, Inc.
                 Consolidated Statements of Operations
                 In thousands, except per share amounts
                              (Unaudited)


                            Three Months ended   Twelve Months ended
                               December 31,           December 31,
                           --------------------  --------------------
                              2008       2007       2008       2007
                           ---------  ---------  ---------  ---------

 Revenue                      41,977     89,649    250,214    404,800

 Cost of revenue              52,827     57,896    187,599    251,939

 Gross profit                (10,850)    31,753     62,615    152,861

 Operating expenses
   Research and development   13,582     17,930     63,262     72,044
   Sales and marketing         7,813     11,479     44,573     49,974
   General and
    administrative            11,802     10,680     43,056     41,718
   Impairment of goodwill     42,115         --     42,115      4,658
   Impairment of intangibles
    and long lived assets     46,949         --     46,949         --
   Amortization of
    intangible assets            656        656      2,624      2,624
   Restructuring charges       3,361      2,506      6,873      2,506
                           ---------  ---------  ---------  ---------
                             126,278     43,251    249,452    173,524
                           ---------  ---------  ---------  ---------

 Loss from operations       (137,128)   (11,498)  (186,837)   (20,663)

 Other income (expense)
   Equity income (loss)
    of SEN                    (2,567)     2,077     (3,667)    10,416
   Interest income               214      1,195      1,614      5,019
   Interest expense           (1,739)    (1,605)    (6,744)    (6,427)
   Other-net                    (483)      (659)      (169)      (153)
                           ---------  ---------  ---------  ---------
                              (4,575)     1,008     (8,966)     8,855
                           ---------  ---------  ---------  ---------

 Loss before income taxes   (141,703)   (10,490)  (195,803)   (11,808)

 Income taxes (credits)         (258)       127        861       (410)
                           ---------  ---------  ---------  ---------

 Net loss                  $(141,445) $ (10,617) $(196,664) $ (11,398)
                           =========  =========  =========  =========

 Net loss per share
   Basic                   $   (1.37) $   (0.10) $   (1.91) $   (0.11)
   Diluted                 $   (1.37) $   (0.10) $   (1.91) $   (0.11)

 Shares used in
  computing net loss
  per share
   Basic                   $ 103,052  $ 102,247  $ 102,739  $ 101,891
   Diluted                 $ 103,052  $ 102,247  $ 102,739  $ 101,891


                      Axcelis Technologies, Inc.
                      Consolidated Balance Sheets
                             In thousands
                             (Unaudited)

                                                  Dec. 31,   Dec. 31,
                                                    2008       2007
                                                 ---------  ---------

 Assets

 Current assets
   Cash and cash equivalents                     $  37,694  $  83,877
   Marketable securities                                --         --
   Restricted cash                                   8,654     17,018
   Accounts receivable, net                         27,486     76,067
   Inventories, net                                150,113    169,278
   Prepaid expenses and other current assets        17,231     32,442
                                                 ---------  ---------
 Total current assets                              241,178    378,682

 Property, plant and equipment, net                 44,432     68,101
 Investment in SEN                                 156,677    132,911
 Goodwill                                               --     42,115
 Intangible assets                                      --     10,925
 Deferred income taxes                                  --         --
 Restricted cash, long-term portion                     --         --
 Other assets                                       12,894     37,195
                                                 ---------  ---------
                                                 $ 455,181  $ 669,929
                                                 =========  =========

 Liabilities and stockholders' equity

 Current liabilities
   Accounts payable                              $   8,066  $  27,054
   Accrued compensation                             15,841     17,003
   Warranty                                          3,137      5,011
   Income taxes                                        337        531
   Deferred revenue                                 12,508     35,827
   Other current liabilities                         6,897      8,577
   Current portion of convertible
    subordinated debt                               83,210         --
                                                 ---------  ---------
 Total current liabilities                         129,996     94,003

 Convertible subordinated debt                          --     79,923
 Long-term deferred revenue                          1,872      4,704
 Other long-term liabilities                         3,936      5,293
                                                                   --
 Stockholders' equity
   Preferred Stock                                      --         --
   Common stock                                        103        103
   Additional paid-in capital                      483,546    478,726
   Treasury stock                                   (1,218)    (1,218)
   Accumulated deficit                            (198,479)    (1,815)
   Accumulated other comprehensive income           35,425     10,210
                                                 ---------  ---------
                                                   319,377    486,006
                                                 ---------  ---------
                                                 $ 455,181  $ 669,929
                                                 =========  =========


            

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