Axcelis Technologies, Inc. Announces Second Quarter Results
BEVERLY, Mass., Jul 17, 2000 (BUSINESS WIRE) -- Axcelis Technologies, Inc.
(Nasdaq:ACLS) today announced results for the second quarter ended June 30, 2000
with record net sales of $165.8 million up 68% from $98.8 million for the second
quarter of 1999 and up 16% from $143.1 million for the first quarter of 2000.
Net income of $21.6 million, or $0.27 per share, was recorded for the second
quarter of 2000, an increase of 247%, when compared to the second quarter 1999
net income of $6.2 million or $0.08 per share.
Net sales for the six months ended June 30, 2000 were a record $308.9 million,
an increase of 96% from $157.9 million for the first six months of 1999. Net
income of $40.4 million, or $0.51 per share, was posted for the six month period
ended June 30, 2000. This compares with a net loss of $4.2 million or $0.05 per
share recorded in the same period in 1999.
Axcelis Technologies, Inc., headquartered in Beverly, MA., is a leading producer
of ion implantation equipment used in the fabrication of semiconductors. Axcelis
also produces dry strip, photostabilization, and rapid thermal processing
equipment used in semiconductor manufacturing, and provides extensive
aftermarket service and support, including spare parts, equipment upgrades,
maintenance services and customer training.
Axcelis Technologies, Inc.
Comparative Financial Summary
Three Months Ended
June 30
-------------------
(Thousands except for per share data) 2000 1999
---- ----
Net sales $165,844 $ 98,814
Income (loss) before income taxes 31,487 8,418
Net income (loss) 21,571 6,212
Basic & diluted net income (loss) per share $ .27 $ .08
Shares used in computing basic & diluted
net income (loss) per share 80,000 80,000
See accompanying notes.
Axcelis Technologies, Inc.
Comparative Financial Summary
Six Months Ended
June 30
-------------------
(Thousands except for per share data) 2000 1999
---- ----
Net sales $308,895 $157,938
Income (loss) before income taxes 58,600 (5,643)
Net income (loss) 40,433 (4,163)
Basic & diluted net income (loss) per share $ .51 $ (.05)
Shares used in computing basic & diluted
net income (loss) per share 80,000 80,000
See accompanying notes.
Axcelis Technologies, Inc.
Statements of Combined Operations
Three Months Ended
June 30
------------------
(Thousands except for per share data) 2000 1999
---- ----
Net sales $165,844 $ 98,814
Cost of products sold 92,576 57,302
-------- --------
Gross profit 73,268 41,512
Other costs & expenses
Research & development 17,377 12,549
Selling 13,420 8,485
General & administrative 14,595 9,751
Amortization of goodwill & intangible assets 2,320 2,320
-------- --------
Income (loss) from operations 25,556 8,407
Other income (expense)
Royalty income 3,949 1,760
Equity income (loss) of Sumitomo Eaton
Nova Corporation 3,316 (1,302)
Other income (expense) - net (1,334) (447)
-------- --------
Income (loss) before income taxes 31,487 8,418
Income taxes (credit) 9,916 2,206
-------- --------
Net income (loss) $ 21,571 $ 6,212
-------- --------
-------- --------
Basic & diluted net income (loss) per share $ .27 $ .08
Shares used in computing basic & diluted
net income (loss) per share 80,000 80,000
See accompanying notes.
Axcelis Technologies, Inc.
Statements of Combined Operations
Six Months Ended
June 30
------------------
(Thousands except for per share data) 2000 1999
---- ----
Net sales $308,895 $157,938
Cost of products sold 174,153 95,658
-------- --------
Gross profit 134,742 62,280
Other costs & expenses
Research & development 33,502 24,732
Selling 25,018 17,572
General & administrative 27,625 19,363
Amortization of goodwill & intangible assets 4,640 4,640
-------- --------
Income (loss) from operations 43,957 (4,027)
Other income (expense)
Royalty income 7,772 2,725
Equity income (loss) of Sumitomo Eaton
Nova Corporation 6,656 (3,749)
Other income (expense) - net 215 (592)
-------- --------
Income (loss) before income taxes 58,600 (5,643)
Income taxes (credit) 18,167 (1,480)
-------- --------
Net income (loss) $ 40,433 $ (4,163)
-------- --------
-------- --------
Basic & diluted net income (loss) per share $ .51 $ (.05)
Shares used in computing basic & diluted
net income (loss) per share 80,000 80,000
See accompanying notes.
Axcelis Technologies, Inc.
Condensed Combined Balance Sheets
June 30, December 31,
(Thousands) 2000 1999
---- ----
ASSETS
Current assets
Cash & short-term investments $ 41,914 $ 3,530
Receivable from Eaton Corporation 21,748 11,241
Accounts receivable 117,719 101,335
Inventories 109,875 83,326
Deferred income taxes & other current assets 40,529 36,060
-------- --------
331,785 235,492
Property, plant & equipment 62,560 73,809
Investment in Sumitomo Eaton Nova Corporation 32,126 22,210
Goodwill, intangible & other long-term assets 86,159 91,324
-------- --------
$512,630 $422,835
-------- --------
-------- --------
LIABILITIES & SHAREHOLDER'S EQUITY
Current liabilities
Accounts payable & other current
liabilities $ 58,224 $ 47,165
Warranty reserve 27,199 18,568
Dividend payable to Eaton Corporation 300,000
-------- --------
385,423 65,733
Deferred income taxes & other long-term
liabilities 14,118 14,806
Shareholder's equity 113,089 342,296
-------- --------
$512,630 $422,835
-------- --------
-------- --------
See accompanying notes.
Axcelis Technologies, Inc.
Notes to the Second Quarter 2000 Earnings Release
Initial Public Offering of Axcelis Technologies, Inc.
-----------------------------------------------------
On July 10, 2000, Axcelis completed an initial public offering (IPO) for the
sale of 15,500,000 shares of common stock at $22 per share. The net proceeds
from the IPO were $317.5 million and the number of outstanding shares of common
stock increased to 95,500,000. The net proceeds from the IPO, together with cash
from other sources, will be used to pay a previously declared $300 million
dividend to Eaton Corporation (Eaton). Prior to the IPO, Eaton owned 100% of the
80,000,000 shares of outstanding Axcelis common stock. As a result of the IPO,
Eaton now owns approximately 83.8% of the outstanding shares of Axcelis common
stock.
Eaton currently plans to consummate the divestiture of the Axcelis common stock
to its shareholders approximately six months following the completion of this
offering by distributing all of its shares of common stock in a tax-free
transaction to Eaton shareholders. Eaton may accomplish this divestiture through
a split-off, a spin-off or some combination of both transactions. Eaton will, in
its sole discretion, determine the timing, structure and terms of the
divestiture of the remaining shares of Axcelis common stock that it owns. The
planned divestiture by Eaton is subject to receiving a private letter ruling
from the Internal Revenue Service that the divestiture will be tax-free to Eaton
and its shareholders and that Eaton's contribution of assets to Axcelis in
connection with the separation from Eaton will qualify as a tax-free
reorganization for U.S. federal income tax purposes. Eaton recently filed the
private letter ruling request.
Net Income (Loss) per Share ---------------------------
Basic and diluted net income (loss) per share amounts are calculated based on
80,000,000 shares of common stock that were outstanding prior to the IPO, as
described above.
In future periods, basic net income (loss) per share will be calculated based on
the weighted average number of shares of common stock outstanding during the
period. This average will include the 15,500,000 shares of common stock sold in
the IPO and may include an additional 1,550,000 shares of common stock that the
underwriters of the IPO have the option to purchase for up to 30 days after the
IPO. Diluted net income (loss) per share will be calculated based on the
weighted average number of shares of common stock outstanding as described
previously, plus the dilutive effect of stock options, calculated using the
treasury stock method.
CONTACT: Renald M. Romain, 216/523-4728
William C. Hartman, 216/523-4501
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