Axcelis Technologies Inc (ACLS)

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We expect to see improvement in market conditions in Q2 and are currently projecting Q2 revenues to be in the $45 million to $50 million range. We expect that the sequential increase will come primarily from system sales. Q2 gross margins are projected to be in the mid-30% range. Q2 operating expenses should be essentially unchanged from Q1, excluding an $800,000 milestone payment that we received from Lam in April. As a result of these factors, we expect to report a Q2 operating loss of approximately $3 million to $6 million and an earnings loss of approximately $0.03 to $0.05 per share. We are projecting that our cash balance will decline in Q2 and that we will end the quarter with a cash balance in the mid-$30 million range. This reduction will be driven primarily by our projected operating losses, restructuring payments associated with the previously announced actions and continued R&D investments in our Purion platform.