How Bad Is Semi Equip Demand? Ask Axcelis

So, I thought those FSI International (FSII) results reported on Tuesday were pretty bad. But in some ways, things at Axcelis (ACLS), another forgotten semiconductor company, appear even worse.

Axcelis reported revenue for fourth quarter - that’s right, it posted Q4 results on the last day of Q1 - of $42 million, down 53% from $89.6 million a year earlier. ACLS posted a loss for the quarter of $141.4 million, including a range of special charges; the company posted a gross margin of -26%.

And here’s where it gets really ugly. Shipments in the quarter were $37.3 million; orders were just $27.4 million. And new systems orders were a glittery $100,000.

But weirdly enough, the stock looks cheap. Axcelis this week closed the sale of its 50% stake in SEN Corp. to Sumitomo Heavy Industries, generating $122.3 million in net proceeds; after paying down $86.4 million on its senior notes, on which it had been in default, AXCLS received $35.9 million in cash. At December 31, before the deal closed, ACLS had $37.7 million in cash and equivalents. And the company’s market cap is just $39.2 million. You can make a pretty good case that Axcelis holders would be better off if the company shut down and handed out the remaining cash to investors.

ACLS on Tuesday fell 3 cents, or 7.3%, to 38 cents.