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Sterling Capital once again urges Axcelis Technologies' board to take action
By Lisa Kerner
Charlotte, N.C., Feb. 8 - Axcelis Technologies Inc. investor Sterling Capital Management LLC continues to believe the company needs to explore alternatives to ensure the success of its Optima ion implanters as well as to enhance shareholder value.
The investor cited Axcelis' fourth-quarter results as proof that the board needs to take aggressive action.
Sterling made its comments in a Feb. 6 letter to Axcelis lead director Stephen R. Hardis as part of a schedule 13D filing with the Securities and Exchange Commission.
"Continuing to embrace the current direction can no longer be a viable option as it is obvious that fundamentals are deteriorating," the letter said.
Sterling also cited a lack of progress made in Optima acceptance with only one shipped during the quarter as well as increasing acceptance of a competitor's technology.
As a result, Sterling urged the board to immediately hire an adviser and fully explore strategic alternatives.
In November, Sterling, predicting a challenging year in 2008, asked the company to move forward on the following actions:
• Refinance the existing 2009 convertible notes;
• Explore a sale-leaseback agreement for the Beverly property; and
• Begin the process to explore strategic alternatives for Axcelis.
Sterling owns 12,231,308 million shares, or 12%, of the Beverly, Mass., company, which makes semiconductor manufacturing equipment.
It was previously reported that Sterling Capital met with Axcelis management on Nov. 15 to discuss the progress of the Optima HD, the company's strategy to maintain market share, planned cost reductions and personnel changes.
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