Company Quick10K Filing
Axcelis
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 34 $500
10-Q 2019-11-07 Quarter: 2019-09-30
10-Q 2019-08-07 Quarter: 2019-06-30
10-Q 2019-05-08 Quarter: 2019-03-31
10-K 2019-03-11 Annual: 2018-12-31
10-Q 2018-11-02 Quarter: 2018-09-30
10-Q 2018-08-03 Quarter: 2018-06-30
10-Q 2018-05-04 Quarter: 2018-03-31
10-K 2018-03-14 Annual: 2017-12-31
10-Q 2017-11-03 Quarter: 2017-09-30
10-Q 2017-08-04 Quarter: 2017-06-30
10-Q 2017-05-05 Quarter: 2017-03-31
10-K 2017-03-14 Annual: 2016-12-31
10-Q 2016-11-03 Quarter: 2016-09-30
10-Q 2016-08-08 Quarter: 2016-06-30
10-Q 2016-05-05 Quarter: 2016-03-31
10-K 2016-03-04 Annual: 2015-12-31
10-Q 2015-11-05 Quarter: 2015-09-30
10-Q 2015-08-05 Quarter: 2015-06-30
10-Q 2015-05-06 Quarter: 2015-03-31
10-K 2015-03-11 Annual: 2014-12-31
10-Q 2014-11-06 Quarter: 2014-09-30
10-Q 2014-08-08 Quarter: 2014-06-30
10-Q 2014-05-08 Quarter: 2014-03-31
10-K 2014-03-03 Annual: 2013-12-31
10-Q 2013-11-08 Quarter: 2013-09-30
10-Q 2013-08-02 Quarter: 2013-06-30
10-Q 2013-05-06 Quarter: 2013-03-31
10-K 2013-03-01 Annual: 2012-12-31
10-Q 2012-11-05 Quarter: 2012-09-30
10-Q 2012-08-07 Quarter: 2012-06-30
10-Q 2012-05-04 Quarter: 2012-03-31
10-K 2012-02-29 Annual: 2011-12-31
10-Q 2011-11-04 Quarter: 2011-09-30
10-Q 2011-08-05 Quarter: 2011-06-30
10-Q 2011-05-06 Quarter: 2011-03-31
10-K 2011-03-14 Annual: 2010-12-31
10-Q 2010-11-05 Quarter: 2010-09-30
10-Q 2010-08-06 Quarter: 2010-06-30
10-Q 2010-05-12 Quarter: 2010-03-31
10-K 2010-03-15 Annual: 2009-12-31
8-K 2020-02-05 Earnings, Exhibits
8-K 2019-12-03 Other Events, Exhibits
8-K 2019-10-31 Earnings, Exhibits
8-K 2019-09-24 Regulation FD
8-K 2019-08-14 Officers, Other Events, Exhibits
8-K 2019-08-06 Earnings, Exhibits
8-K 2019-05-14 Officers, Shareholder Vote, Other Events
8-K 2019-05-07 Earnings, Exhibits
8-K 2019-02-06 Earnings, Exhibits
8-K 2018-11-01 Earnings, Exhibits
8-K 2018-08-02 Earnings, Exhibits
8-K 2018-05-16 Officers, Shareholder Vote, Other Events
8-K 2018-05-02 Earnings, Exhibits
8-K 2018-02-06 Earnings, Exhibits
ACLS 2019-09-30
Part 1—Financial Information
Item 1. Financial Statements.
Note 1. Nature of Business
Note 2. Stock-Based Compensation
Note 3. Leases
Note 4. Revenue
Note 5. Computation of Net Earnings per Share
Note 6. Accumulated Other Comprehensive Loss
Note 7. Cash, Cash Equivalents and Restricted Cash
Note 8. Inventories, Net
Note 9. Product Warranty
Note 10. Fair Value Measurements
Note 11. Financing Arrangements
Note 12. Income Taxes
Note 13. Concentration of Risk
Note 14. Share Repurchase
Note 15. Contingencies
Note 16. Headcount-Related Actions
Note 17. Recent Accounting Guidance
Item 2. Management’S Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part Ii—Other Information
Item 1. Legal Proceedings.
Item 1A. Risk Factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3. Defaults Upon Senior Securities.
Item 4. Mine Safety Disclosures.
Item 5. Other Information.
Item 6. Exhibits.
EX-31.1 acls-20190930ex3114e33ea.htm
EX-31.2 acls-20190930ex312b6405f.htm
EX-32.1 acls-20190930ex3216dc451.htm
EX-32.2 acls-20190930ex322a5c4e5.htm

Axcelis Earnings 2019-09-30

ACLS 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
KRNT 665 215 36 0 0 0 0 591 0%
DXPE 661 787 456 1,264 347 40 89 876 27% 9.8 5%
PI 627 160 64 140 67 -24 -19 629 48% -32.7 -15%
ERII 563 183 56 83 0 13 19 467 0% 24.1 7%
VECO 536 876 465 423 153 -179 -117 667 36% -5.7 -20%
PLUG 515 457 436 189 12 -85 -80 380 7% -4.7 -19%
ACLS 500 517 112 367 153 24 39 357 42% 9.1 5%
BGG 415 1,551 1,105 1,404 301 -54 25 588 21% 23.2 -3%
TNAV 372 297 206 221 96 -33 -27 273 43% -10.0 -11%
SENS 345 98 83 19 -15 -100 -91 343 -82% -3.8 -101%

10-Q 1 acls-20190930x10q.htm 10-Q acls_Current_Folio_10Q

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

x

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2019

 

Or

 

o

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from               to               

 

Commission file number 000-30941

 

AXCELIS TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

 

 

 

 

Delaware

 

34-1818596

(State or other jurisdiction of
incorporation or organization)

 

(IRS Employer
Identification No.)

 

108 Cherry Hill Drive

Beverly, Massachusetts 01915

(Address of principal executive offices, including zip code)

 

(978) 787-4000

(Registrant’s telephone number, including area code)

 

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☒  No ☐.

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes ☒  No ☐.

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

 

 

 

Large accelerated filer ☐

 

Accelerated filer ☒

Non-accelerated filer ☐

 

Smaller reporting company ☐

 

 

Emerging growth company  ☐

 

If an emerging growth company, indicate by check mark if registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ☐ No ☒

 

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

 

Title of each class

Trading symbol

Name of each exchange on which registered

Common Stock, $.001 par value

ACLS

Nasdaq Global Select Market

 

 

As of November  5, 2019 there were 32,421,139 shares of the registrant’s common stock outstanding.

 

 

Table of Contents

 

 

 

 

PART I - FINANCIAL INFORMATION 

 

Item 1. 

Financial Statements (Unaudited)

 

 

Consolidated Statements of Operations for the three and nine months ended September 30, 2019 and 2018

3

 

Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2019 and 2018

4

 

Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018

5

 

Consolidated Statements of Stockholders’ Equity for the three and nine months ended September 30, 2019 and 2018

6

 

Consolidated Statements of Cash Flows for the nine months ended September 30, 2019 and 2018

8

 

Notes to Consolidated Financial Statements (Unaudited)

9

Item 2. 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

19

 

Overview

19

 

Critical Accounting Estimates

19

 

Results of Operations

20

 

Liquidity and Capital Resources

26

Item 3. 

Quantitative and Qualitative Disclosures About Market Risk

28

Item 4. 

Controls and Procedures

28

PART II - OTHER INFORMATION 

29

Item 1. 

Legal Proceedings

29

Item 1A. 

Risk Factors

29

Item 2. 

Unregistered Sales of Equity Securities and Use of Proceeds

29

Item 3. 

Defaults Upon Senior Securities

29

Item 4. 

Mine Safety Disclosures

29

Item 5. 

Other Information

29

Item 6. 

Exhibits

30

 

 

2

 

   PART 1—FINANCIAL INFORMATION

 

Item 1.    Financial Statements.

 

Axcelis Technologies, Inc.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended 

 

Nine months ended

 

 

 

 

September 30,

 

September 30,

 

 

    

2019

    

2018

    

2019

    

2018

    

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

$

64,290

 

$

88,496

 

$

217,201

 

$

317,039

 

Services

 

 

5,163

 

 

6,878

 

 

18,034

 

 

19,853

 

Total revenue

 

 

69,453

 

 

95,374

 

 

235,235

 

 

336,892

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

 

33,587

 

 

49,136

 

 

118,105

 

 

181,423

 

Services

 

 

5,285

 

 

6,325

 

 

17,294

 

 

19,400

 

Total cost of revenue

 

 

38,872

 

 

55,461

 

 

135,399

 

 

200,823

 

Gross profit

 

 

30,581

 

 

39,913

 

 

99,836

 

 

136,069

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

12,930

 

 

12,845

 

 

40,335

 

 

37,631

 

Sales and marketing

 

 

8,057

 

 

7,923

 

 

25,411

 

 

25,246

 

General and administrative

 

 

7,707

 

 

8,477

 

 

23,097

 

 

24,755

 

Total operating expenses

 

 

28,694

 

 

29,245

 

 

88,843

 

 

87,632

 

Income from operations

 

 

1,887

 

 

10,668

 

 

10,993

 

 

48,437

 

Other (expense) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

687

 

 

593

 

 

2,373

 

 

1,518

 

Interest expense

 

 

(1,308)

 

 

(1,323)

 

 

(3,849)

 

 

(3,787)

 

Other, net

 

 

(890)

 

 

(592)

 

 

(1,252)

 

 

(1,710)

 

Total other expense

 

 

(1,511)

 

 

(1,322)

 

 

(2,728)

 

 

(3,979)

 

Income before income taxes

 

 

376

 

 

9,346

 

 

8,265

 

 

44,458

 

Income tax (benefit) provision

 

 

(328)

 

 

508

 

 

943

 

 

7,036

 

Net income

 

$

704

 

$

8,838

 

$

7,322

 

$

37,422

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.02

 

$

0.27

 

$

0.22

 

$

1.16

 

Diluted

 

$

0.02

 

$

0.26

 

$

0.22

 

$

1.10

 

Shares used in computing net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average common shares

 

 

32,344

 

 

32,365

 

 

32,584

 

 

32,225

 

Diluted weighted average common shares

 

 

33,323

 

 

33,973

 

 

33,821

 

 

34,032

 

 

See accompanying Notes to these Consolidated Financial Statements

 

3

 

Axcelis Technologies, Inc.

Consolidated Statements of Comprehensive Income

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended 

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

    

2019

    

2018

    

2019

    

2018

    

Net income

 

$

704

 

$

8,838

 

$

7,322

 

$

37,422

 

Other comprehensive (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

(1,132)

 

 

(284)

 

 

(1,847)

 

 

(1,584)

 

Amortization of actuarial loss and other adjustments from pension plan

 

 

29

 

 

30

 

 

89

 

 

90

 

Total other comprehensive (loss)

 

 

(1,103)

 

 

(254)

 

 

(1,758)

 

 

(1,494)

 

Comprehensive (loss) income

 

$

(399)

 

$

8,584

 

$

5,564

 

$

35,928

 

 

See accompanying Notes to these Consolidated Financial Statements

 

4

 

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

    

September 30,

    

December 31,

 

 

 

2019

 

2018

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

155,317

 

$

177,993

 

Short-term restricted cash

 

 

149

 

 

 —

 

Accounts receivable, net

 

 

49,046

 

 

78,727

 

Inventories, net

 

 

138,353

 

 

129,000

 

Prepaid expenses and other current assets

 

 

11,050

 

 

11,051

 

Total current assets

 

 

353,915

 

 

396,771

 

Property, plant and equipment, net

 

 

25,130

 

 

41,149

 

Operating lease assets

 

 

6,175

 

 

 —

 

Finance lease assets, net

 

 

22,231

 

 

 —

 

Long-term restricted cash

 

 

6,707

 

 

6,909

 

Deferred income taxes

 

 

71,121

 

 

71,939

 

Other assets

 

 

45,198

 

 

31,673

 

Total assets

 

$

530,477

 

$

548,441

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

 

$

21,320

 

$

35,955

 

Accrued compensation

 

 

6,961

 

 

19,218

 

Warranty

 

 

3,251

 

 

4,819

 

Income taxes

 

 

269

 

 

462

 

Deferred revenue

 

 

23,300

 

 

19,513

 

Current portion of finance lease obligation

 

 

252

 

 

 —

 

Other current liabilities

 

 

7,674

 

 

5,030

 

Total current liabilities

 

 

63,027

 

 

84,997

 

Finance lease obligation

 

 

48,297

 

 

47,757

 

Long-term deferred revenue

 

 

4,141

 

 

3,071

 

Other long-term liabilities

 

 

7,165

 

 

4,279

 

Total liabilities

 

 

122,630

 

 

140,104

 

Commitments and contingencies (Note 15)

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

Common stock, $0.001 par value, 75,000 shares authorized; 32,397 shares issued and outstanding at September 30, 2019; 32,558 shares issued and outstanding at December 31, 2018

 

 

32

 

 

33

 

Additional paid-in capital

 

 

559,063

 

 

565,116

 

Accumulated deficit

 

 

(149,938)

 

 

(157,260)

 

Accumulated other comprehensive (loss) income

 

 

(1,310)

 

 

448

 

Total stockholders’ equity

 

 

407,847

 

 

408,337

 

Total liabilities and stockholders’ equity

 

$

530,477

 

$

548,441

 

 

 

 

 

 

 

 

 

 

See accompanying Notes to these Consolidated Financial Statements

5

Axcelis Technologies, Inc.

Consolidated Statements of Stockholders’ Equity

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

Other

 

Total

 

 

 

 

Common Stock

 

Paid-in

 

Accumulated

 

Comprehensive

 

Stockholders’

 

 

    

 

Shares

    

Amount

    

Capital

    

Deficit

    

Income (Loss)

    

Equity

 

Balance at December 31, 2017

 

 

32,048

 

$

32

 

$

556,147

 

$

(204,745)

 

$

2,176

 

$

353,610

 

Net income

 

 

 —

 

 

 —

 

 

 —

 

 

13,915

 

 

 —

 

 

13,915

 

Adjustment to Retained Earnings upon ASC 606 Adoption

 

 

 —

 

 

 —

 

 

 —

 

 

1,600

 

 

 —

 

 

1,600

 

Foreign currency translation adjustments

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

1,021

 

 

1,021

 

Change in pension obligation

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

30

 

 

30

 

Exercise of stock options

 

 

75

 

 

 —

 

 

446

 

 

 —

 

 

 —

 

 

446

 

Issuance of restricted common shares

 

 

19

 

 

 —

 

 

(227)

 

 

 —

 

 

 —

 

 

(227)

 

Stock-based compensation expense

 

 

 —

 

 

 —

 

 

1,132

 

 

 —

 

 

 —

 

 

1,132

 

Balance at March 31, 2018

 

 

32,142

 

$

32

 

$

557,498

 

$

(189,230)

 

$

3,227

 

$

371,527

 

Net income

 

 

 —

 

 

 —

 

 

 —

 

 

14,669

 

 

 —

 

 

14,669

 

Foreign currency translation adjustments

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(2,321)

 

 

(2,321)

 

Change in pension obligation

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

30

 

 

30

 

Exercise of stock options

 

 

46

 

 

 —

 

 

376

 

 

 —

 

 

 —

 

 

376

 

Issuance of shares under Employee Stock Purchase Plan

 

 

26

 

 

 —

 

 

515

 

 

 —

 

 

 —

 

 

515

 

Issuance of restricted common shares

 

 

117

 

 

 —

 

 

(1,161)

 

 

 —

 

 

 —

 

 

(1,161)

 

Stock-based compensation expense

 

 

 —

 

 

 —

 

 

1,979

 

 

 —

 

 

 —

 

 

1,979

 

Balance at June 30, 2018

 

 

32,331

 

$

32

 

$

559,207

 

$

(174,561)

 

$

936

 

$

385,614

 

Net income

 

 

 —

 

 

 —

 

 

 —

 

 

8,838

 

 

 —

 

 

8,838

 

Foreign currency translation adjustments

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(284)

 

 

(284)

 

Change in pension obligation

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

30

 

 

30

 

Exercise of stock options

 

 

66

 

 

 —

 

 

467

 

 

 —

 

 

 —

 

 

467

 

Issuance of restricted common shares

 

 

 1

 

 

 —

 

 

(6)

 

 

 —

 

 

 —

 

 

(6)

 

Stock-based compensation expense

 

 

 —

 

 

 —

 

 

2,415

 

 

 —

 

 

 —

 

 

2,415

 

Balance at September 30, 2018

 

 

32,398

 

$

32

 

$

562,083

 

$

(165,723)

 

$

682

 

$

397,074

 

 

See accompanying Notes to these Consolidated Financial Statements

 

 

6

Axcelis Technologies, Inc.

Consolidated Statements of Stockholders’ Equity

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

Other

 

Total

 

 

 

Common Stock

 

Paid-in

 

Accumulated

 

Comprehensive

 

Stockholders’

 

    

 

Shares

    

Amount

    

Capital

    

Deficit

    

Income (Loss)

    

Equity

Balance at December 31, 2018

 

 

32,558

 

$

33

 

$

565,116

 

$

(157,260)

 

$

448

 

$

408,337

Net income

 

 

 —

 

 

 —

 

 

 —

 

 

6,062

 

 

 —

 

 

6,062

Foreign currency translation adjustments

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(495)

 

 

(495)

Change in pension obligation

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

30

 

 

30

Exercise of stock options

 

 

288

 

 

 —

 

 

1,828

 

 

 —

 

 

 —

 

 

1,828

Issuance of restricted common shares

 

 

35

 

 

 —

 

 

(281)

 

 

 —

 

 

 —

 

 

(281)

Stock-based compensation expense

 

 

 —

 

 

 —

 

 

1,672

 

 

 —

 

 

 —

 

 

1,672

Balance at March 31, 2019

 

 

32,881

 

$

33

 

$

568,335

 

$

(151,198)

 

$

(17)

 

$

417,153

Net income

 

 

 —

 

 

 —

 

 

 —

 

 

556

 

 

 —

 

 

556

Foreign currency translation adjustments

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(219)

 

 

(219)

Change in pension obligation

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

29

 

 

29

Exercise of stock options

 

 

104

 

 

 —

 

 

567

 

 

 —

 

 

 —

 

 

567

Issuance of shares under Employee Stock Purchase Plan

 

 

32

 

 

 —

 

 

479

 

 

 —

 

 

 —

 

 

479

Issuance of restricted common shares

 

 

165

 

 

 —

 

 

(1,310)

 

 

 —

 

 

 —

 

 

(1,310)

Stock-based compensation expense

 

 

 —

 

 —

 

2,246

 

 —

 

 —

 

2,246

Repurchase of common stock

 

 

(885)

 

 

(1)

 

 

(14,034)

 

 

 —

 

 

 —

 

 

(14,035)

Balance at June 30, 2019

 

 

32,297

 

$

32

 

$

556,283

 

$

(150,642)

 

$

(207)

 

$

405,466

Net income

 

 

 —

 

 

 —

 

 

 —

 

 

704

 

 

 —

 

 

704

Foreign currency translation adjustments

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(1,132)

 

 

(1,132)

Change in pension obligation

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

29

 

 

29

Exercise of stock options

 

 

97

 

 

 —

 

 

642

 

 

 —

 

 

 —

 

 

642

Issuance of restricted common shares

 

 

 3

 

 

 —

 

 

(11)

 

 

 —

 

 

 —

 

 

(11)

Stock-based compensation expense

 

 

 —

 

 

 —

 

 

2,149

 

 

 —

 

 

 —

 

 

2,149

Balance at September 30, 2019

 

 

32,397

 

$

32

 

$

559,063

 

$

(149,938)

 

$

(1,310)

 

$

407,847

 

See accompanying Notes to these Consolidated Financial Statements

 

7

Axcelis Technologies, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Nine months ended

 

 

 

September 30,

 

 

    

2019

    

2018

    

Cash flows from operating activities

 

 

 

 

 

 

 

Net income

 

$

7,322

 

$

37,422

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

 

5,583

 

 

4,208

 

Deferred income taxes

 

 

818

 

 

6,767

 

Stock-based compensation expense

 

 

6,140

 

 

5,603

 

Provision for excess and obsolete inventory

 

 

1,961

 

 

1,657

 

Changes in operating assets & liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

 

29,232

 

 

(10,222)

 

Inventories

 

 

(16,602)

 

 

(4,867)

 

Prepaid expenses and other current assets

 

 

(155)

 

 

49

 

Accounts payable and other current liabilities

 

 

(22,887)

 

 

(10,872)

 

Deferred revenue

 

 

4,864

 

 

1,245

 

Income taxes

 

 

(185)

 

 

(61)

 

Other assets and liabilities

 

 

(16,436)

 

 

(13,709)

 

Net cash (used in) provided by operating activities

 

 

(345)

 

 

17,220

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

Expenditures for property, plant and equipment and capitalized software

 

 

(11,064)

 

 

(3,852)

 

Net cash used in investing activities

 

 

(11,064)

 

 

(3,852)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

Net settlement on restricted stock grants

 

 

(1,602)

 

 

(1,393)

 

Repurchase of common stock

 

 

(14,035)

 

 

 —

 

Proceeds from Employee Stock Purchase Plan

 

 

407

 

 

437

 

Proceeds from exercise of stock options

 

 

3,039

 

 

1,289

 

Net cash (used in) provided by financing activities

 

 

(12,191)

 

 

333

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

871

 

 

1,012

 

Net (decrease) increase in cash, cash equivalents and restricted cash

 

 

(22,729)

 

 

14,713

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

184,902

 

 

140,880

 

Cash, cash equivalents and restricted cash at end of period

 

$

162,173

 

$

155,593

 

 

 

 

 

 

 

 

 

See accompanying Notes to these Consolidated Financial Statements

 

 

 

8

Axcelis Technologies, Inc.

Notes to Consolidated Financial Statements (Unaudited)

 

Note 1.  Nature of Business

 

Axcelis Technologies, Inc. (“Axcelis” or the “Company”) was incorporated in Delaware in 1995, and is a producer of ion implantation equipment used in the fabrication of semiconductor chips in the United States, Europe and Asia. In addition, we provide extensive worldwide aftermarket service and support, including spare parts, equipment upgrades, used equipment and maintenance services to the semiconductor industry. 

 

The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments which are of a normal recurring nature and considered necessary for a fair presentation of these financial statements have been included. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for other interim periods or for the year as a whole.

 

The balance sheet at December 31, 2018 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in Axcelis Technologies, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2018.

 

 

Note 2.  Stock-Based Compensation

 

We maintain the Axcelis Technologies, Inc. 2012 Equity Incentive Plan (the “2012 Equity Plan”), which became effective on May 2, 2012, and permits the issuance of options, restricted stock, restricted stock units and performance awards to selected employees, directors and consultants of the Company. Our 2000 Stock Plan (the “2000 Stock Plan”) expired on May 1, 2012 and no new grants may be made under that plan after that date.  However, unexpired awards granted under the 2000 Stock Plan remain outstanding and subject to the terms of the 2000 Stock Plan. We also maintain the Axcelis Technologies, Inc. Employee Stock Purchase Plan (the “ESPP”), an Internal Revenue Code Section 423 plan.

 

The 2012 Equity Plan and the ESPP are more fully described in Note 13 to the consolidated financial statements in our 2018 Annual Report on Form 10-K.

 

We recognized stock-based compensation expense of $2.1 million and $2.4 million for the three month periods ended September 30, 2019 and 2018, respectively. We recognized stock-based compensation expense of $6.1 million and $5.6 million for the nine month periods ended September 30, 2019 and 2018, respectively. These amounts include compensation expense related to restricted stock units (“RSUs”),  non-qualified stock options and stock to be issued to participants under the ESPP.

 

In the three month periods ended September 30, 2019 and 2018,  we issued 0.1 million shares of common stock upon stock option exercises and vesting of RSUs. In the three month periods ended September 30, 2019 and 2018,  we received proceeds of $0.6 million and $0.5 million, respectively, in connection with the exercise of stock options.

 

In the nine month periods ended September 30, 2019 and 2018,  we issued 0.7 million and 0.3 million shares of common stock, respectively, upon stock option exercises, purchases under the ESPP and vesting of RSUs. In the nine month periods ended September 30, 2019 and 2018,  we received proceeds of $3.4 million and $1.7 million, respectively, in connection with the exercise of stock options and ESPP purchases.

 

Note 3.  Leases

 

We have operating leases for office space, warehouse space, computer and office equipment and vehicles used in our business operations. We have a finance lease in relation to the 2015 sale-leaseback of our corporate headquarters in Beverly, Massachusetts. We review all contract agreements to determine if the agreement contains a lease component. An

9

agreement contains a lease component if it provides the use of a specific physical space or a specific physical item. We recognize the lease obligation on a discounted basis using the explicit or implicit discount rate stated within the agreement. We recognize a corresponding right-of-use asset, which is initially determined based upon the net present value of the associated liability and is adjusted for deferred costs and possible impairment, if any. For those lease agreements that do not indicate the applicable discount rate, we use our incremental borrowing rate. The value of the right-of-use asset is initially determined based on the net present value of the associated liability, and is adjusted for deferred costs and possible impairments, if any. We have made the following policy elections: (i) operating leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet; (ii) we recognize lease expense for operating leases on a straight-line basis over the lease term; and (iii) we account for lease components and non-lease components that are fixed payments as one component. Some of our operating leases include one or more options to renew, with renewal terms that can extend the respective lease term 1 to 3 years. The exercise of lease renewal options are at our sole discretion. For lease extensions that are reasonably certain to occur, we have included these renewal periods in our calculation of the net present value of the lease obligation and related right-of-use asset. Certain leases also include options to purchase the leased property. The depreciable life of certain assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The amounts of operating and finance lease right-of-use assets and related lease obligations recorded within our consolidated balance sheet are as follows:

 

 

 

 

 

 

 

 

 

September 30,

Leases

Classification

    

2019