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Axcelis Technologies Inc. Reports Operating Results (10-Q)

May 04, 2012 | About:
10qk

10qk

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Axcelis Technologies Inc. (ACLS) filed Quarterly Report for the period ended 2012-03-31.

Axcelis Tech has a market cap of $153.8 million; its shares were traded at around $1.255 with a P/E ratio of 23.9 and P/S ratio of 0.5.

Highlight of Business Operations:

For the three months ended March 31, 2012, two customers accounted for approximately 24.6% and 14.4% of consolidated revenue. For the three months ended March 31, 2011, three customers accounted for approximately 19.2%, 14.6% and 12.2% of consolidated revenue.

Service revenue, which includes the labor component of maintenance and service contracts and fees for service hours provided by on-site service personnel, was $7.5 million, or 13.6% of revenue for the three months ended March 31, 2012, compared with $6.6 million, or 7.0% of revenue, for the three months ended March 31, 2011. Service revenue is affected by the expansion of the installed base of off-warranty systems and can fluctuate from period to period based on capacity utilization at customers manufacturing facilities. The increase in service revenue for the three months ended March 31, 2012 compared to the comparable period one year ago was due to a higher service value component for supporting service contracts and time and material engagements.

Included in total revenue of $55.0 million is revenue from sales of ion implantation products and service which accounted for $40.4 million, or 73.5% of total revenue in the three months ended March 31, 2012, compared with $64.4 million, or 69.3%, of total revenue for the three months ended March 31, 2011. The dollar decrease was due to the factors discussed above for product revenues.

The Companys product revenues include sales of spare parts and product upgrades as well as complete systems. We refer to the business of selling spare parts and product upgrades, combined with the sale of maintenance labor and service contracts and service hours, as the aftermarket business. Included in total revenue of $55.0 million is revenue from our aftermarket business of $32.1 million for the three months ended March 31, 2012, compared to $38.3 million for the three months ended March 31, 2011. Aftermarket revenue generally increases with expansion of the installed base of systems but can fluctuate period to period based on capacity utilization at customers manufacturing facilities which affects the sale of spare parts and demand for equipment service. The decrease of $6.2 million in aftermarket revenue for the three months ended March 31, 2012 compared to March 31, 2011 was primarily due to a 21.1% decrease in spare parts and upgrade revenue which is directly related lower tool utilization at our customers fabrication facilities and decreased upgrade installations which allow our customers to maximize the technological and throughput capabilities of our tools.

Sales and marketing expense was $6.6 million in the three months ended March 31, 2012, a decrease of $1.2 million, or 15.4%, compared with $7.8 million for the three months ended March 31, 2011. The decrease was due to decreased payroll costs ($0.5 million) and decreased commission expense ($0.6 million) due to lower systems sales volume.

Read the The complete Report

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