Axcelis Technologies Inc. Reports Operating Results (10-Q)
Axcelis Technologies is a leading producer of ion implantation equipment used in the fabrication of semiconductors. The company also produces dry strip photostabilization and rapid thermal processing equipment which is used in semiconductor manufacturing primarily before and after the ion implantation process. In addition the company provides extensive aftermarket service and support including spare parts equipmentupgrades maintenance services and customer training. Axcelis Technologies Inc. has a market cap of $47.56 million; its shares were traded at around $0.46 with and P/S ratio of 0.19. Highlight of Business Operations: Research and development expense was $9.5 million in the three months ended March 31, 2009, a decrease of $7.4 million, or 43.8%, compared with $16.9 million in the three months ended March 31, 2008. The decrease was due to decreased payroll costs ($2.8 million), decreased consulting costs ($0.8 million), decreased project material costs ($1.0 million), decreased development asset amortization and depreciation costs ($2.3 million) and decreased other miscellaneous expenses ($0.5 million).
Sales and marketing expense was $6.9 million in the three months ended March 31, 2009, a decrease of $5.0 million, or 42%, compared with $11.9 million for the three months ended March 31, 2008. The decrease was due to decreased payroll costs ($2.6 million), decreased professional fee expenses ($0.5 million), decreased supplies and marketing service expenses ($0.4 million), decreased travel costs ($0.6 million), decreased freight costs ($0.3 million), decreased training, supplies, and other costs ($0.4 million) and decreased other miscellaneous expenses ($0.2 million).
General and administrative expense was $10.7 million for the three months ended March 31, 2009, an increase of $0.9 million, compared with $9.8 million in the three months ended March 31, 2008. The increase was due to increased professional fee expenses ($2.2 million) offset by decreased payroll costs ($0.9 million), decreased amortization expense ($0.2 million) and decreased other miscellaneous expenses ($0.2 million).
The sale of the Company's investment in SEN resulted in a gain of approximately $1.1 million. This gain includes net proceeds of $122.3 million and cumulative foreign translation gain of $23.5 million, previously recorded in other comprehensive income, reduced by the carrying value of the investment on the date of sale of $144.6 million.
During the three months ended March 31, 2009, we experienced negative cash flows from operations. Cash used for operations was predominately driven by the net loss from operations attributable to the depressed semiconductor equipment market and the resultant decline in revenues. Cash and cash equivalents at March 31, 2009 were $71.2 million, compared to $37.7 million at December 31, 2008. The $33.5 million increase in cash and cash equivalents is primarily attributable to the net cash proceeds from the sale of our investment in SEN, offset by cash used in operations.
On March 30, 2009, pursuant to the Share Purchase Agreement with SHI and SEN, we sold all of our common shares in SEN to SHI for proceeds of $132.8 million before advisor fees and other expenses of $10.5 million, of which $7.1 million was recorded in other current liabilities as of March 31,
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