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Axcelisâ?? need to reduce operating costs and improve liquidity leads to restructuring plans
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Axcelis Technologies, Inc. announced a two-sided restructuring plan that will allow the company to reduce operating costs and improve liquidity while continuing to break into new markets with its Optima and Integra product lines.
The first part of the restructuring plan will cut around 200 positions, approximately 14% of its employees worldwide. This, in conjunction with other cost out initiatives, is anticipated to save $40 million annually. Axcelis predicts to record restructuring charges in between $3 and $4 million during the fourth quarter of 2008.
The second part of the plan will be the refinancing of Axcelis’ long-term debt. The refinancing is planned to repay convertible debt due in January 2009 as well as obtain sufficient liquidity to finance ongoing operations in a lingering downturn of the semiconductor market. Refinancing plans are expected to close in the fourth quarter of 2008.
Mary Puma, Chairman and CEO, commented, “This restructuring, while difficult, was driven by the continued slowdown in the semiconductor market. Axcelis is committed to delivering improved financial results and these actions allow us to better align operating costs with near term revenue expectations. They do not affect our commitment to investment in ion implantation and dry strip technologies or customer service. We expect Axcelis to be well positioned to capitalize on opportunities once the market rebounds."