MIRA INFORM REPORT

Report Date :

29.11.2013

IDENTIFICATION DETAILS

Name :	AXCELIS TECHNOLOGIES INC

Registered Office :	108 Cherry Hill Drive, Beverly, MA 01915-1053

Country :	United States

Financials (as on) :	31.12.2012

Date of Incorporation :	21.12.1995

Legal Form :	Public Parent Company

Line of Business :	· designing, manufacturing and servicing ion implantation, dry strip and other processing equipment used in the fabrication of semiconductor chips. Manufacturer of Ion Implantation, Dry Strip, Thermal Processing & Curing Equipment Used in the Production of Semiconductor Chips

No. of Employees :	879

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	Slow but Correct

Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30th, 2013

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

United States

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

united StaTes ECONOMIC OVERVIEW

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $49,800. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income. Imported oil accounts for nearly 55% of US consumption. Crude oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices climbed another 50% between 2006 and 2008, and bank foreclosures more than doubled in the same period. Besides dampening the housing market, soaring oil prices caused a drop in the value of the dollar and a deterioration in the US merchandise trade deficit, which peaked at $840 billion in 2008. The sub-prime mortgage crisis, falling home prices, investment bank failures, tight credit, and the global economic downturn pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, in October 2008 the US Congress established a $700 billion Troubled Asset Relief Program (TARP). The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009 the US Congress passed and President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP. In 2012 the federal government reduced the growth of spending and the deficit shrank to 7.6% of GDP. Wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the budget deficit and public debt. Through 2011, the direct costs of the wars totaled nearly $900 billion, according to US government figures. US revenues from taxes and other sources are lower, as a percentage of GDP, than those of most other countries. In March 2010, President OBAMA signed into law the Patient Protection and Affordable Care Act, a health insurance reform that will extend coverage to an additional 32 million American citizens by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on health care - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010. In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight. In December 2012, the Federal Reserve Board announced plans to purchase $85 billion per month of mortgage-backed and Treasury securities in an effort to hold down long-term interest rates, and to keep short term rates near zero until unemployment drops to 6.5% from the December rate of 7.8%, or until inflation rises above 2.5%. Long-term problems include stagnation of wages for lower-income families, inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, energy shortages, and sizable current account and budget deficits - including significant budget shortages for state governments.

Source : CIA

Company name & address

Axcelis Technologies Inc

108 Cherry Hill Drive

Beverly, MA 01915-1053

United States

Tel: 978-787-4000

Fax: 978-787-3000

Web: www.axcelis.com

synthesis

Employees: 879

Company Type: Public Parent

Corporate Family: 23 Companies

Traded: NASDAQ: ACLS

Incorporation Date: 21-Dec-1995

Auditor: Ernst & Young LLP

Financials in: USD (Millions)

Fiscal Year End: 31-Dec-2012

Reporting Currency: US Dollar

Annual Sales: 203.4 1

Net Income: (34.0)

Total Assets: 222.2 2

Market Value: 258.0 (08-Nov-2013)

Business Description

Axcelis Technologies, Inc. (Axcelis) designs, manufactures and services ion implantation, dry strip and other processing equipment used in the fabrication of semiconductor chips. The Company sells to semiconductor chip manufacturers worldwide. The ion implantation business comprised approximately 76.7% of its revenue during the year ended December 31, 2012, with the remaining 23.3% of revenue derived from its dry strip and other processing systems. In addition to equipment, the Company provides aftermarket service and support, including spare parts, equipment upgrades, maintenance services and customer training. In December 2012, the Company sold to Lam Research Corporation (Lam) the intellectual property rights and other assets relating to its dry strip systems product line. For the nine months ended 30 September 2013, Axcelis Technologies Inc revenues decreased 14% to $137.1M. Net loss decreased 8% to $17.8M. Revenues reflect Product decrease of 13% to $118.2M, Service decrease of 17% to $18.9M. Lower net loss reflects Research and development decrease of 19% to $25.9M (expense), Sales and marketing decrease of 12% to $16.1M (expense), General and administrative decrease of 7% to $19.2M (expense).

Industry

Industry Machinery and Equipment Manufacturing

ANZSIC 2006: 2469 - Other Specialised Machinery and Equipment Manufacturing

ISIC Rev 4: 2819 - Manufacture of other general-purpose machinery

NACE Rev 2: 2829 - Manufacture of other general-purpose machinery n.e.c.

NAICS 2012: 334413 - Semiconductor and Related Device Manufacturing

UK SIC 2007: 2829 - Manufacture of other general-purpose machinery n.e.c.

US SIC 1987: 3559 - Special Industry Machinery, Not Elsewhere Classified

Key Executives

(Emails Available)

Name	Title
Mary G. Puma	Chairman of the Board, President, Chief Executive Officer
Kevin J. Brewer	Chief Financial Officer
Lynnette C. Fallon	Executive Vice President - Human Resources/Legal, General Counsel, Corporate Secretary
John E. Aldeborgh	Executive Vice President - Customer Operations
William J. Bintz	Executive Vice President - Product Development, Engineering and Marketing

Financial Summary

As of 30-Sep-2013

Key Ratios	Company	Industry
Current Ratio (MRQ)	5.34	3.16
Quick Ratio (MRQ)	2.52	1.74
Debt to Equity (MRQ)	0.09	0.29
Sales 5 Year Growth	-12.86	6.76
Net Profit Margin (TTM) %	-17.93	8.43
Return on Assets (TTM) %	-14.04	7.34
Return on Equity (TTM) %	-17.51	12.34

Stock Snapshot

Traded: NASDAQ: ACLS

As of 8-Nov-2013

Financials in: USD

Recent Price	2.37	EPS	-0.34
52 Week High	2.48	Price/Sales	1.27
52 Week Low	0.82	Price/Book	1.38
Avg. Volume (mil)	0.69	Beta	2.35
Market Value (mil)	258.01

	Price % Change	Rel S&P 500%
4 Week	2.16%	-1.73%
13 Week	28.11%	22.38%
52 Week	163.33%	104.86%
Year to Date	71.74%	38.33%

1 - Profit & Loss Item Exchange Rate: USD 1 = USD 1

2 - Balance Sheet Item Exchange Rate: USD 1 = USD 1

Corporate Overview

Location

108 Cherry Hill Drive

Beverly, MA, 01915-1053

Essex County

United States

Tel: 978-787-4000

Fax: 978-787-3000

Web: www.axcelis.com

Quote Symbol - Exchange

ACLS - NASDAQ

Sales USD(mil): 203.4

Assets USD(mil): 222.2

Employees: 879

Fiscal Year End: 31-Dec-2012

Industry: Miscellaneous Capital Goods

Incorporation Date: 21-Dec-1995

Company Type: Public Parent

Quoted Status: Quoted

Chairman of the Board, President, Chief Executive Officer:

Mary G. Puma

Industry Codes

ANZSIC 2006 Codes:

2469 - Other Specialised Machinery and Equipment Manufacturing

2429 - Other Electronic Equipment Manufacturing

2419 - Other Professional and Scientific Equipment Manufacturing

ISIC Rev 4 Codes:

2819 - Manufacture of other general-purpose machinery

2610 - Manufacture of electronic components and boards

2651 - Manufacture of measuring, testing, navigating and control equipment

NACE Rev 2 Codes:

2829 - Manufacture of other general-purpose machinery n.e.c.

2611 - Manufacture of electronic components

2651 - Manufacture of instruments and appliances for measuring, testing and navigation

NAICS 2012 Codes:

334413 - Semiconductor and Related Device Manufacturing

334515 - Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals

US SIC 1987:

3559 - Special Industry Machinery, Not Elsewhere Classified

3825 - Instruments for Measuring and Testing of Electricity and Electrical Signals

3674 - Semiconductors and Related Devices

UK SIC 2007:

2829 - Manufacture of other general-purpose machinery n.e.c.

2611 - Manufacture of electronic components

2651 - Manufacture of instruments and appliances for measuring, testing and navigation

Business Description

Axcelis Technologies, Inc. (Axcelis), incorporated on December 21, 1995, designs, manufactures and services ion implantation, dry strip and other processing equipment used in the fabrication of semiconductor chips. The Company sells to semiconductor chip manufacturers worldwide. The ion implantation business comprised approximately 76.7% of its revenue during the year ended December 31, 2012, with the remaining 23.3% of revenue derived from its dry strip and other processing systems. In addition to equipment, the Company provides aftermarket service and support, including spare parts, equipment upgrades, maintenance services and customer training. In December 2012, the Company sold to Lam Research Corporation (Lam) the intellectual property rights and other assets relating to its dry strip systems product line.

Ion Implantation Systems

Ion implantation is a principal step in the transistor formation cycle of the semiconductor manufacturing process. An ion implanter is a large, technically advanced system that injects dopants such as arsenic, boron or phosphorus into a silicon wafer. These dopants are ionized and therefore have electric charges. With an electric charge they can be manipulated, moved and accelerated with electric and magnetic fields.

Axcelis offers a line of high-energy, high-current and medium-current implanters for all application requirements. The Optima XEx combines Axcelis' production RF Linac high energy, spot beam technology with a high-speed, single wafer end station, enabling unmatched throughput. Axcelis' advanced spot beam ensures that all points across the wafer see the same beam at the same beam angle. Axcelisâ€™s single wafer product for high current applications is the Optima HDx. In 2012, Axcelis shipped its Purion M medium current ion implant system. Axcelis has recently not had a competitive offering in this market space.

Dry Strip

The Companyâ€™s dry strip machines, also called ashers, use microwave and radio frequency energy to turn process gases into plasma, which then acts to clean the surface of the wafer by removing the photoresist and unwanted residue. Axcelis has offered a full line of dry strip tools that cover the entire range of customer applications

Aftermarket Support and Services

The Company offers its customers aftermarket service and support throughout the lifecycle of the equipment it manufactures, as well as equipment the Company previously manufactured. The service and support that the Company provides include spare parts, equipment upgrades, and maintenance services. The Company provides varying levels of sales, service and applications support out of its field offices to customers located in 32 countries. Revenue generated through its service and support business represented about 61.0%, of revenue in 2012. In 2012, Ulvac Techno, a Japanese company, began providing aftermarket services and support services for its products in Japan.

The Company competes with Applied Materials, Inc., SEN, Nissin Electric Co., Ltd. and Advanced Ion Beam Technology, Inc.

More Business Descriptions

Ion Implantation, Dry Strip, Thermal Processing & Curing Equipment Used in the Production of Semiconductor Chips Mfr

Establishments primarily engaged in manufacturing special industry machinery, not elsewhere classified, such as smelting and refining equipment, cement making, clayworking, cotton ginning, glass making, hat making, incandescent lamp making, leather working, paint making, rubber working, cigar and cigarette making, tobacco working, shoe making, and stone working machinery, and industrial sewing machines, and automotive maintenance machinery and equipment.

Axcelis Technologies, Inc. (Axcelis) designs, manufactures and services ion implementation, dry strips and other processing equipments. It also offers post market services and support including equipment up gradation, spare parts, maintenance services, and customer training. The company serves to more than 20 largest semiconductor manufacturers worldwide with more than 4,000 products. It owns11 sales offices in seven countries. The company conducts its sales and marketing activities from two locations in the United States. Outside of the United States, its sales offices are located in Taiwan, South Korea, China, Germany, Singapore and Italy. As for the fiscal year 2011,the company generated 68.6% of total revenue from its ten largest customers.Axcelisâ€™s ion implantation system provides entire range of high energy, high current and medium current implanters for all application requirements. Itâ€™s wide range of implant steps are defined by dose and energy. The medium current implanters are made up of mid range energy and dose capabilities and these implanters are called as single wafer systems.The high current implanters are made up of low energy capability and high dose ranges while some of the high energy implanters are made up of high energy range capabilities and low dose. The company designes optima platform (single wafer implanters) to help the customers to gain improved productivity, technical extendability, excellent process performance and maximum application overlap.The optima products include the optima HD, the optima XE and the optima MD. The optima HD are extendable for ultra-low energy applications.This supports hydrogen and molecular implants for the application of emerging dual poly gate and silicon-on-insulator to improve device speed and performance.The optima XE unites RF Linac high energy, spot beam technology with a high-speed, state-of-the-art single wafer endstation, enabling unmatched throughput.The optima MD has its energy and dose capabilities are extendable into traditional high current and high energy spaces from traditional medium current space. For the fiscal year ended December 2011, the total revenue of $319.4m was incurred from sales of ion implantation products and related service of $237.9m, or 74.5% of total revenue, compared with $232.4m, or 84.4%, of total revenue in 2010. The companyâ€™s dry strip process prior to ion implementation process, develops photoresist called stencil. Once the processes and steps are completed, the photoresist is no longer necessary and must be removed.The process of removing photoresist and residue is called dry strip.The company offers no damage low-k dry strip solutions.Axcelis's dry strip products include Advanced Cleaning/Strip, Integra ES; Standard Cleaning/Strip, Integra RS, RapidStrip 320; and Plasma Cleaning for Small Substrates, RapidStrip 210.Axcelisâ€™s other processing systems include photo-stabilization or curing system, and thermal processing system.The photoresist stencil material spreads on the wafer must be hardened or cured. It uses proprietary ultraviolet light sources to remove or cure the photoresist during the implant processes and etch steps.The silicon wafers are to be heated often to 900 degrees or more to complete the chemical or electrical reactions.This process of heating called is rapid thermal processing (RTP). The company focuses on product research and development activities for bringing new products and services into the markets. Axcelis uses 3D, computer-aided design, finite element analysis and other computer-based modeling methods to test new designs though its research and development.It owns a manufacturing facilities of 417,000 sq. ft in Beverly, Massachusetts and ion implant and flat panel products at its 300,000 sq. ft facility through the acquisition of the SEN Corporation.The company's service and support business generated 46.2% of total revenue.It also generated 72.3% of total revenue from export sales of the U.S manufacturig facilities to foreign customers, sales by foreign subsidiaries and branches, and royalties. It incurred an expenditure of $47.2m in the for research and development activities in Rockville Maryland.Axcelis has its business operations in the US, Europe and Asia Pacific regions. For the fiscal year ended December 2011, the US contributed 73% of the total revenue of the company followed by, Asia Pacific with 16.75% and Europe with 9.81% of the company's total revenue.In January2012, the company entered into a strategic service partnership with ULVAC TECHNO, Ltd. to support Axcelis semiconductor processing systems in Japan.Â The agreement gives Axcelis customers access to ULVAC TECHNO's vast service and support network in the region, to ensure the highest levels of productivity and manufacturing efficiency.Under the agreement, ULVAC TECHNO will provide a comprehensive portfolio of service programs for Axcelis ion implantation, rapid thermal processing, curing and cleaning systems in Japan.

Axcelis Technologies, Inc. (Axcelis) is an equipment and service provider to the semiconductor manufacturing industry. Axcelis operates its business under three major principles namely, technology leadership, operational excellence and customer participation. The company operatesa in Asia Pacific, the United States, Japan and Europe regions.Its equipment manufacturing facility is in the United States, and supports its customers with a worldwide network of 30 field offices inÂ 11 countries. Axcelis is headquartered in Massachusetts, the US.The company has significant capital projects plans for 2012 and intends to invest not less than $2.5 million. Its future capital expenditures beyond 2012 depend on a number of factors such as the timing and rate of expansion of its business and its ability to generate cash to fund them.The company reported revenues of (U.S. Dollars) USD 203.39 million during the fiscal year ended December 2012, a decrease of 36.33% from 2011. The operating loss of the company was USD 30.94 million during the fiscal year 2012, as against an operating income of USD 7.13 million during 2011. The net loss of the company was USD 34.03 million during the fiscal year 2012, as against a net profit of USD 5.08 million during 2011.

Axcelis Technologies Inc. (Axcelis the Company we us or our) designs manufactures and services ion implantation dry strip and other processing equipment used in the fabrication of semiconductor chips. We sell to leading semiconductor chip manufacturers worldwide. The ion implantation business comprised approximately 74.5% of our revenue in 2011 with the remaining 25.5% of revenue derived from our dry strip and other processing systems. In addition to equipment we provide extensive aftermarket service and support including spare parts equipment upgrades maintenance services and customer training.

Axcelis Technologies, headquartered in Beverly, Mass., provides innovative, high-productivity solutions for the semiconductor industry. The company is dedicated to developing enabling process applications through the design, manufacture and complete life cycle support of ion implantation, rapid thermal processing, and cleaning and curing systems. Axcelis Technologies has key product development centers in Beverly, Mass., as well as in Toyo, Japan through its joint venture, SEN.

Product Codes

Product Code	Product Description
MAN-EL	Rapid thermal processors
MAN-EP-B	Semiconductor cleaning equipment
MAN-EP-D	Rapid thermal processors
MAN-EP-D	Ion implantation equipment
MAN-EP-R	Photoresist dry strip equipment
SUB-ES-GT	Thermal processors

Financial Data

Financials in:	USD(mil)

Revenue:	203.4
Net Income:	-34.0
Assets:	222.2
Long Term Debt:	0.0
Total Liabilities:	36.1
Working Capital:	0.2

Date of Financial Data:	31-Dec-2012

1 Year Growth

-36.3%

-17.5%

Market Data

Quote Symbol:	ACLS
Exchange:	NASDAQ
Currency:	USD
Stock Price:	2.4
Stock Price Date:	11-08-2013
52 Week Price Change %:	163.3
Market Value (mil):	258,014.7

SEDOL:	2607487
ISIN:	US0545401095

Equity and Dept Distribution:
Common Stock $.001 Par, 12/10, 300M auth., 105,906,000 issd, 120,000 Treas. @ cost $1.2M.Insiders own 1.82%. InitialPublic Offering 7/11/00, 15.5M shares @ $22 by Goldman,Sachs & Co. *12/29/00, Eaton corporation distributed its remaining 82% interest in the form of a spin-off to Eaton shareholders (80M shares).

Key Corporate Relationships

Auditor:	Ernst & Young LLP

Auditor:	Ernst & Young LLP

Additional Information
ABI Number:	429926165

Strategic Initiatives

Key Organizational Changes

Axcelis uses 3D, computer-aided design, finite element analysis and other computer-based modeling methods to test new designs though its research and development.It owns a manufacturing facilities of 417,000 sq. ft in Beverly, Massachusetts and ion implant and flat panel products at its 300,000 sq. ft facility through the acquisition of the SEN Corporation.The company's service and support business generated 46.2% of total revenue.It also generated 72.3% of total revenue from export sales of the U.S manufacturig facilities to foreign customers, sales by foreign subsidiaries and branches, and royalties. It incurred an expenditure of $47.2m in the for research and development activities in Rockville Maryland. Axcelis has its business operations in the US, Europe and Asia Pacific regions.

Credit Report as of 05/01/2013

Location
108 Cherry Hill Dr Beverly, MA 01915-1066 United States

County:	Essex
MSA:	Boston, MA

Phone:	978-787-4000
Fax:	978-787-3000
URL:	http://axcelis.com

ABI^©:	429926165

Annual Sales:	$203,385,000 (USD)
Employees:	879

Facility Size(ft²):	10,000 - 39,999
Facility Own/Lease:	Own

Business Type:	Public
Location Type:	Headquarter

Ticker:	ACLS
Exchange:	NASDAQ
Primary Line of Business:
SIC:	3559-34 - Semiconductor Manufacturing Equip (Mfrs)
NAICS:	333298 - All Other Industrial Machinery Mfg
Secondary Lines of Business:
NAICS:	334413 - Semiconductors & Related Devices Mfg
	541613 - Marketing Consulting Svcs
SICs:	3674-01 - Semiconductor Devices (Mfrs)
	8742-13 - Marketing Programs & Services
	9999-66 - Federal Government Contractors

Corporate Family	Corporate Structure News:
	Axcelis Technologies Inc
Axcelis Technologies Inc Total Corporate Family Members: 23

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
Axcelis Technologies Inc	Parent	Beverly, MA	United States	Machinery and Equipment Manufacturing	203.4	879
Sumitomo Eaton Nova Corporation	Joint Venture	Tokyo	Japan	Electromedical and Control Instruments Manufacturing		403
Axcelis Technologies Ltd.	Subsidiary	Hsin-chu	Taiwan	Machinery and Equipment Manufacturing		70
Axcelis Technologies GmbH	Subsidiary	Dresden	Germany	Machinery and Equipment Manufacturing		60
Axcelis Technologies Pte. Ltd.	Subsidiary	Singapore	Singapore	Machinery and Equipment Manufacturing		50
Axcelis Technologies, GmbH	Subsidiary	Aschheim, Bayern	Germany	Machinery and Equipment Manufacturing		45
Axcelis Technologies Ltd.	Subsidiary	Hwasong, Kyonggi-Do	Korea, Republic of	Electronics Wholesale	9.8	42
Axcelis Technologies Semiconductor Trading (Shanghai) Co.,Ltd.	Subsidiary	Shanghai, Shanghai	China	Electronics Wholesale	18.0	37
Axcelis Technologies	Branch	Fishkill, NY	United States	Semiconductor and Other Electronic Component Manufacturing	8.1	30
Axcelis Technologies	Branch	Manassas, VA	United States	Semiconductor and Other Electronic Component Manufacturing	4.7	16
Axcelis Technologies	Branch	Richardson, TX	United States	Semiconductor and Other Electronic Component Manufacturing	5.9	10
Axcelis Technologies	Branch	Chandler, AZ	United States	Semiconductor and Other Electronic Component Manufacturing	3.0	10
Axcelis Technologies	Branch	Mc Lean, VA	United States	Semiconductor and Other Electronic Component Manufacturing	2.9	10
Axcelis Technologies	Branch	Lakeville, MN	United States	Semiconductor and Other Electronic Component Manufacturing	2.8	10
Axcelis Technologies	Branch	Boise, ID	United States	Machinery and Equipment Manufacturing	2.5	10
Axcelis Technologies Ltd.	Subsidiary	Incheon	Korea, Republic of	Machinery and Equipment Manufacturing		10
Axcelis Technologies	Branch	Portland, OR	United States	Semiconductor and Other Electronic Component Manufacturing	1.9	6
Axcelis Technologies	Branch	Fremont, CA	United States	Semiconductor and Other Electronic Component Manufacturing	1.5	5
Axcelis Technologies, S.A.R.L.	Subsidiary	Saint Ismier	France	Machinery and Equipment Manufacturing	0.4	4
Axcelis Technologies	Branch	Irvine, CA	United States	Semiconductor and Other Electronic Component Manufacturing	1.5	3
Axcelis Technologies, Ltd.	Subsidiary	London	United Kingdom	Miscellaneous Professional Services
Matrix Integrated Systems Inc.	Subsidiary	Bourne End	United Kingdom
Axcelis Technologies, S.r.l.	Subsidiary	Agrate Brianza	Italy	Machinery and Equipment Manufacturing

Competitors Report

Company Name	Location	Employees	Ownership
Applied Materials, Inc.	Santa Clara, California, United States	14,500	Public
CollabRx Inc	San Francisco, California, United States	3	Public
CVD Equipment Corporation	Ronkonkoma, New York, United States	171	Public
Lam Research Corporation	Fremont, California, United States	6,600	Public
Mattson Technology, Inc.	Fremont, California, United States	323	Public
Nissin Electric Co., Ltd.	Kyoto-Shi, Japan	1,719	Public
Novellus Systems, Inc.	San Jose, California, United States	2,855	Private
PSK Inc	Hwaseong, Korea, Republic of	150	Public
SEN Corporation	Tokyo, Japan	333	Private
SPTS Technologies, Inc.	San Jose, California, United States		Private
TEL FSI, Inc.	Chaska, Minnesota, United States	354	Private
ULVAC Technologies, Inc.	Methuen, Massachusetts, United States	50	Private
Varian Semiconductor Equipment Associates, Inc.	Gloucester, Massachusetts, United States	1,462	Private

Executive report

Board of Directors

Name

Title

Function

Mary G. Puma

Chairman of the Board, President, Chief Executive Officer

Chairman

Biography:

Ms. Mary G. Puma is Chairman of the Board, President, Chief Executive Officer of Axcelis Technologies, Inc. She has been the company's President and Chief Executive Officer since January 2002 and Chairman since 2005. From May 2000 until January 2002, Ms. Puma was Company's President and Chief Operating Officer, prior to which she served as a Vice President of Axcelis from February 1999. In 1998, she became General Manager and Vice President of the Implant Systems Division of Eaton Corporation, a global diversified industrial manufacturer. In May 1996, she joined Eaton as General Manager of the Commercial Controls Division. Prior to joining Eaton, Ms. Puma spent 15 years in various marketing and general management positions for General Electric Company. Ms. Puma is a director of Nordson Corporation, North Shore Medical Center and Semiconductor Equipment and Materials International (SEMI).

Age: 55

Education:

M.I.T. Sloan School of Management, master's (Management)
MIT Sloan School, master's (Management)
MIT Sloan School, MS (Management)

Compensation/Salary:$471,530

Compensation Currency: USD

Social:

R. John Fletcher

Independent Director

Director/Board Member

Biography:

Mr. R. John Fletcher is Independent Director of Axcelis Technologies, Inc. Mr. Fletcher is Chief Executive Officer of Fletcher Spaght, Inc., a strategy consulting organization, which he founded in 1983, and Managing Director of Fletcher Spaght Ventures, a venture capital fund. Prior to founding Fletcher Spaght, Inc., Mr. Fletcher was a Manager at the Boston Consulting Group. Mr. Fletcher is also a director of The Spectranetics Corporation. During the past five years, he was also a director of AutoImmune, Inc., Panacos, Inc. and Marina Biotech, Inc.

Age: 67

Education:

Southern Illinois University, MBA
Central Michigan University, MA (International Finance)
George Washington University, BBA

Stephen R. Hardis

Lead Independent Director

Director/Board Member

Biography:

Mr. Stephen R. Hardis is Lead Independent Director of Axcelis Technologies, Inc. Mr. Hardis was the Company's Chairman of the Board until May 2006 and currently serves as Lead Director. He was Chairman and Chief Executive Officer of Eaton Corporation, a global industrial manufacturer, until July 2000. Mr. Hardis became Eaton's Chairman in January 1996 and its Chief Executive Officer in September 1995. Prior to that, he served as Eaton's Vice Chairman from 1986 and its Executive Vice Presidentâ€”Finance and Administration from 1979. Mr. Hardis is a director of Lexmark International Group, Inc., and Progressive Corporation, and during the past five years, he was also a director of Marsh & McLennan Companies, Inc., American Greetings Corporation, Nordson Corporation, and Steris Corporation.

Age: 78

Education:

Princeton University, M (International Affairs)
Cornell University, B

William C. Jennings

Independent Director

Director/Board Member

Biography:

Mr. William C. Jennings is Independent Director of Axcelis Technologies, Inc. Mr. Jennings is a retired partner of PricewaterhouseCoopers LLP, a global accounting and advisory firm, where he led the risk management and internal control consulting practice from 1992 until his retirement in 1999. Before that, Mr. Jennings served as a Senior Audit Partner at Coopers & Lybrand, as a Senior Executive Vice President at Shearson Lehman Brothers, responsible for quality assurance, internal audit and compliance, and as an Executive Vice President and Chief Financial Officer of Bankers Trust. Since retiring from PricewaterhouseCoopers, Mr. Jennings has provided independent consulting services to a number of companies. He is a director of Silgan Holdings Inc., and The Spectranetics Corporation, and during the past five years, he was also a director of Nyfix, Inc.

Age: 74

Education:

University of Florida, MBA
University of Akron, BS

Joseph P. Keithley

Independent Director

Director/Board Member

Biography:

Mr. Joseph P. Keithley is Independent Director of Axcelis Technologies, Inc. Mr. Keithley is Non-Executive Chairman of the Board of Nordson Corporation, a position he has held since February 2010. Nordson Corporation manufactures precision dispensing equipment for applying industrial liquid and powder coatings, adhesives, and sealants. Mr. Keithley has served as Chairman of the Board of Keithley Instruments, Inc., a provider of measurement solutions to the semiconductor, fiber optics, telecommunications and electronics industries from 1991 to December 2010. He also served as Keithley Instruments, Inc.'s Chief Executive Officer from November 1993 to December 2010 and as President from May 1994 to December 2010. Mr. Keithley also currently serves as a director of Materion, Inc., an integrated producer of high performance specialty engineered materials used in a variety of electrical, electronic, thermal and structural applications.

Age: 64

Patrick H. Nettles

Independent Director

Director/Board Member

Biography:

Dr. Patrick H. Nettles, Ph.D., is Independent Director of Axcelis Technologies, Inc. Mr. Nettles has served as Executive Chairman of the Board of Directors of CIENA Corporation, a manufacturer of optical networking equipment, since May 2001. Prior to that, Mr. Nettles served as Chairman of the Board of Directors and Chief Executive Officer of CIENA from October 2000, as its President, Chief Executive Officer and Director from April 1994, and as its Director and Chief Executive Officer from February 1994. Mr. Nettles is a director of Progressive Corporation.

Age: 69

Education:

California Institute of Technology, PHD
Georgia Institute of Technology, BS

H Brian Thompson

Independent Director

Director/Board Member

Biography:

Mr. H. Brian Thompson is Independent Director of Axcelis Technologies, Inc. Mr. Thompson is the Executive Chairman of Global Telecom & Technology (GTT), a global telecommunications carrier and network integrator. Mr. Thompson continues to head his own private equity investment and advisory firm, Universal Telecommunications, Inc. From December 2002 to June 2007, Mr. Thompson was Chairman of Comsat International and served as Chairman and Chief Executive Officer of Global TeleSystems Group, Inc. from March 1999 through September of 2000. Mr. Thompson was Chairman and CEO of LCI International from 1991 until its merger with Qwest Communications International Inc. in June 1998. He became Vice Chairman of the board for Qwest until his resignation in December 1998. He previously served as Executive Vice President of MCI Communications Corporation from 1981 to 1990, and prior to MCI, was a management consultant with the Washington, DC offices of McKinsey & Company for nine years, where he specialized in the management of telecommunications. He currently serves as a member of the board of directors of Pendrell Corporation, Penske Automotive Group, and Sonus Networks, Inc.

Age: 74

Education:

Harvard University, MBA
University of Massachusetts (Chemical Engineering)

Executives

Name

Title

Function

Mary G. Puma

Chairman of the Board, President, Chief Executive Officer

Chief Executive Officer

Biography:

Age: 55

Education:

M.I.T. Sloan School of Management, master's (Management)
MIT Sloan School, master's (Management)
MIT Sloan School, MS (Management)

Compensation/Salary:$471,530

Compensation Currency: USD

Social:

Perry Justesen

Director

Senior Management (General)

Social:

Kenneth King

Vice President, Sales Executive

Senior Management (General)

Robert Mahoney

Operations, Vice President

Senior Management (General)

John E. Aldeborgh

Executive Vice President - Customer Operations

Operations Executive

Biography:

Mr. John E. Aldeborgh is Executive Vice President - Customer Operations of Axcelis Technologies, Inc. He joined Axcelis in January 2013 as Company's Senior Vice President, Customer Operations. Prior to joining Axcelis, Mr. Aldeborgh served as the Chief Executive Officer and President, and as a Director, of innoPad, Inc., a privately held manufacturer of Chemical Mechanical Planarization pads, since 2006. Mr. Aldeborgh served in various marketing and sales position at Varian Semiconductor Equipment Associates Inc. from 2002 to 2005, including Vice President of Sales and Marketing. Prior to Varian, Mr. Aldeborgh served as President and Chief Operating Officer of Ebara Technologies, Inc., from 1998 to 2002. Mr. Aldeborgh also held various positions, at Genus, Inc. from 1989 to 1998, including Executive Vice President and Chief Operating Officer.

Age: 56

Education:

Babson College, M (Business Administration)
Babson College, B (Economics)

Brian Calnan

Customer Operations Manager

Operations Executive

Steven Roberge

Operations

Operations Executive

Education:

University of Massachusetts, BS (Environmental Sciences)

Social:

Dan Smoody

Manager, IT Operations

Operations Executive

Kenneth Glasser

Senior Subcontracts Administrator

Administration Executive

Lynnette C. Fallon

Executive Vice President - Human Resources/Legal, General Counsel, Corporate Secretary

Company Secretary

Biography:

Ms. Lynnette C. Fallon is Executive Vice President - Human Resources/Legal, General Counsel, Corporate Secretary of Axcelis Technologies, Inc. She has been Executive Vice President, Human Resources/Legal and General Counsel, a position she has held since May 2005. Prior to that, Ms. Fallon was Senior Vice President HR/Legal and General Counsel since 2002, and Senior Vice President and General Counsel since 2001. Ms. Fallon has also been the company's corporate Secretary since 2001. Before joining Axcelis, Ms. Fallon was a partner in the Boston law firm of Palmer & Dodge LLP since 1992, where she was head of the Business Law Department from 1997 to 2001.

Age: 53

Education:

Boston University School of Law, JD
Vassar College, AB
Vassar College, bachelor's

Compensation/Salary:$301,538

Compensation Currency: USD

Kevin J. Brewer

Chief Financial Officer

Finance Executive

Biography:

Mr. Kevin J. Brewer is Chief Financial Officer, Executive Vice President of Axcelis Technologies, Inc. He plays a central role in driving operational efficiencies, improving financial performance, and increasing the Companyâ€™s pace of profitable growth. In addition to managing the Axcelis finance organization, Mr. Brewer also oversees manufacturing, supply chain, logistics, and information technology at Axcelis. Until assuming the role of CFO, Mr. Brewer held the position of Executive Vice President, Global Operations. Prior to joining Axcelis in 1999, Mr. Brewer was Director of Operations, Business Jets, at Raytheon Aircraft Company. Brewer also held various management positions in operations and strategic planning in Raytheon Companyâ€™s Electronic Systems and Missile Systems groups. Brewer holds a BS degree in Mechanical Engineering Technology from Southeastern Massachusetts University, and a Masterâ€™s degree in Business Administration from New Hampshire College.

Age: 54

Education:

University of New Hampshire, M (Business Administration)
Massachusetts University, BS (Mechanical Engineering Technology)

Compensation/Salary:$310,962

Compensation Currency: USD

Social:

Cindy Sostak

Senior Accounts Payable Manager

Accounting Executive

Peter Frontiero

Corporate Controller

Controller

Tracey Czajak

Employment Manager

Human Resources Executive

Marie Dean

Manager, Product Training

Training Executive

Jeffrey York

Art Director

Marketing Executive

Maureen Hart

Corporate Communications Executive

Education:

Babson College, Masters (Business Administration)
Boston University, BS (Communications)

Social:

Jon Dragon

Chief Information Officer / Chief Technology Officer, Telecommunications Executive

Information Executive

Social:

Craig Halterman

VP, Chief Information Officer

Information Executive

Social:

Art Richard

Electrical Systems Engineer

Information Executive

William J. Bintz

Executive Vice President - Product Development, Engineering and Marketing

Engineering/Technical Executive

Biography:

Mr. William J. Bintz is Executive Vice President - Product Development, Engineering and Marketing of Axcelis Technologies, Inc., since 2011. Prior to that, he was the company's Senior Vice President, Marketing since September 2007, after joining Axcelis in early 2006 as Director of Marketing for curing and cleaning products and shortly thereafter becoming Vice President of Product Marketing. Prior to joining Axcelis, from 2002 Mr. Bintz was Product Director for Medium Current and High Energy Ion Implant System at Varian Semiconductor Equipment Associates, Inc. Before that, he was General Manager of the Materials Delivery Products Group at MKS Instruments, beginning in 1999, and General Manager of the Thermal Processing Systems Division at Eaton Corporation (now Axcelis) beginning in 1995.

Age: 56

Education:

Northeastern University, BS (Mechanical Engineering)
Northeastern University, MS (Electrical Engineering)
Northeastern University, BSME

Compensation/Salary:$301,538

Compensation Currency: USD

Min Chang

Engineering/Technical

Engineering/Technical Executive

Wendy Colby

System Administrator

Engineering/Technical Executive

Donald Deluca

Engineer

Engineering/Technical Executive

Roger Fish

Engineering/Technical

Engineering/Technical Executive

Rick Geraghty

Software Engineer

Engineering/Technical Executive

Chris Halloran

Supplier Quality Engineer

Engineering/Technical Executive

Social:

Cedric Hill

Senior Supplier Quality Engineer

Engineering/Technical Executive

John Jackson

Engineer

Engineering/Technical Executive

David Kwok

Unix System Administrator

Engineering/Technical Executive

Jay Middleton

Quality Assurance Engineer

Engineering/Technical Executive

Michael Mitrano

Engineering/Technical

Engineering/Technical Executive

Guerino Molinaro

Software Engineer

Engineering/Technical Executive

Philip Molloy

Manager, Software Release

Engineering/Technical Executive

Jeff Nealon

General, Technical

Engineering/Technical Executive

Janet O'Rourke

Database Administrator

Engineering/Technical Executive

Kan Ota

Engineering/Technical

Engineering/Technical Executive

Social:

Jaime Pistilli

Engineering/Technical

Engineering/Technical Executive

Robert Pratt

Engineering/Technical

Engineering/Technical Executive

Stephen Quinn

Engineering/Technical

Engineering/Technical Executive

Social:

Bill Reed

Engineering/Technical

Engineering/Technical Executive

William Reynolds

Senior Mechanical Engineer

Engineering/Technical Executive

Social:

Ralph Stump

Senior Process Engineer Materials Specialist

Engineering/Technical Executive

John Sweeny

Engineering/Technical

Engineering/Technical Executive

Joseph Valinski

Engineering/Technical

Engineering/Technical Executive

Lam Weng

Engineering/Technical

Engineering/Technical Executive

Kevin Wu

Senior Software Engi

Engineering/Technical Executive

Jincheng Zhang

Software Engineer

Engineering/Technical Executive

Marvin Farley

Vice President Product Development

Product Management Executive

Shital Patel

Product Marketing Manager

Product Management Executive

Joe Ferrara

Manager Business Development

Business Development Executive

Social:

Doug Lawson

Vice President Business Development

Business Development Executive

Norm Mcintosh

Logistics Analyst

Logistics Executive

Gary Tyacke

Facilities Manager

Facilities Executive

Jill Davis

Purchasing Agent

Purchasing Executive

Ronald Leblanc

Quality Manager

Quality Executive

Social:

Eleanor Krasco

Travel Planner

Meeting/Travel Planner

Craig Burton

Manager

Other

Jorge Carreno

Director Strategic Sourcing

Other

Social:

Orlando Escorcia

Manager

Other

Wilfred Lopez

Strategic Sourcing Manager

Other

Social:

Jim Quinnan

Manager

Other

Significant Developments

Axcelis Technologies Inc Announces Appointment Of Kevin Brewer As Chief Financial Officer Sep 16, 2013

Axcelis Technologies Inc announced the appointment of Kevin J. Brewer as Executive Vice President and Chief Financial Officer(CFO). Mr. Brewer, who has served as the Company's interim CFO since July.

Axcelis Technologies Inc Announces Retirement Of CFO Jun 20, 2013

Axcelis Technologies Inc announced that Chief Financial Officer (CFO) Jay Zager will be retiring from the company at the end of August, 2013. Effective July 1, 2013 Kevin Brewer will become Executive Vice President and Interim Chief Financial Officer, continuing his role as executive vice president, global operations. Zager will retain the title of Executive Vice President, Finance until his retirement to facilitate a transition as the company conducts an external search for a chief financial officer.

Axcelis Technologies Inc Receives Follow-on Order For Optima HDx Jun 05, 2013

Axcelis Technologies Inc announced that it has received a follow-on order for its Optima HDx high current implanter from one of the chipmakers located in the Asia Pacific region.

Axcelis Technologies Inc Issues Q2 2013 Guidance In Line With Analysts' Estimates-Conference Call May 02, 2013

Axcelis Technologies Inc announced that for the second quarter of 2013, it expects revenues to be in the $45 million to $50 million range, operating loss of approximately $3.0 million to $6.0 million and an earnings loss of approximately $0.03 to $0.05 per share. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $47 million, net income of $(5.5) million and EPS of $(0.05) for the second quarter of 2013.

Axcelis Technologies Inc Issues Q1 2013 Guidance-Conference Call Feb 04, 2013

Axcelis Technologies Inc announced that for first quarter of 2013, it expects revenue to be in the range of $40-$50 million and earnings loss per share (EPS) to be approximately $0.05-$0.07.

Axcelis Technologies Inc And Lam Research Corp Announces Strategic Collaboration Agreement On Ion Implant, Dry-Strip, And Etch Dec 04, 2012

Axcelis Technologies Inc and Lam Research Corp., announced a strategic collaboration agreement focusing on the interrelationship between ion implantation, etch processes, and photoresist strip applications, including material modification implants and high-dose implant strip (HDIS). Separately, Axcelis decided that it will exit the dry-strip business and divest dry-strip intellectual property and technology, including the advanced non-oxidizing process technology of Integra product line, to Lam Research, allowing Axcelis to focus exclusively on the ion implant market. Axcelis will continue to ship 300 mm dry-strip products through August 2013, and support the Axcelis installed base indefinitely, including all existing parts and service contracts.

Annual Income Statement

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2012	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Updated Normal 31-Dec-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified

Net Sales	203.4	319.4	275.2	133.0	250.2
Revenue	203.4	319.4	275.2	133.0	250.2
Total Revenue	203.4	319.4	275.2	133.0	250.2

Cost of Revenue	145.2	204.7	189.4	105.0	187.6
Cost of Revenue, Total	145.2	204.7	189.4	105.0	187.6
Gross Profit	58.2	114.7	85.8	28.1	62.6

Selling/General/Administrative Expense	52.4	60.4	59.7	59.3	87.6
Total Selling/General/Administrative Expenses	52.4	60.4	59.7	59.3	87.6
Research & Development	40.4	47.2	39.5	32.7	63.3
Amortization of Intangibles	-	-	0.0	0.0	2.6
Depreciation/Amortization	-	-	0.0	0.0	2.6
Restructuring Charge	4.2	0.0	0.0	5.5	6.9
Impairment-Assets Held for Use	-	-	0.0	0.0	89.1
Other Unusual Expense (Income)	-7.9	0.0	-	-	-
Unusual Expense (Income)	-3.7	0.0	0.0	5.5	95.9
Total Operating Expense	234.3	312.3	288.6	202.5	437.1

Operating Income	-30.9	7.1	-13.4	-69.4	-186.8

Interest Expense - Non-Operating	-	0.0	0.0	-1.7	-6.7
Interest Expense, Net Non-Operating	-	0.0	0.0	-1.7	-6.7
Interest Income - Non-Operating	0.0	0.0	0.1	0.2	1.6
Investment Income - Non-Operating	-	0.0	0.0	-3.2	-3.7
Interest/Investment Income - Non-Operating	0.0	0.0	0.1	-3.1	-2.1
Interest Income (Expense) - Net Non-Operating Total	0.0	0.0	0.1	-4.7	-8.8
Gain (Loss) on Sale of Assets	-	0.0	0.0	1.1	0.0
Other Non-Operating Income (Expense)	-1.5	0.3	-4.0	-3.5	-0.2
Other, Net	-1.5	0.3	-4.0	-3.5	-0.2
Income Before Tax	-32.4	7.5	-17.3	-76.6	-195.8

Total Income Tax	1.6	2.4	0.3	0.9	0.9
Income After Tax	-34.0	5.1	-17.6	-77.5	-196.7

Net Income Before Extraord Items	-34.0	5.1	-17.6	-77.5	-196.7
Net Income	-34.0	5.1	-17.6	-77.5	-196.7

Income Available to Common Excl Extraord Items	-34.0	5.1	-17.6	-77.5	-196.7

Income Available to Common Incl Extraord Items	-34.0	5.1	-17.6	-77.5	-196.7

Basic/Primary Weighted Average Shares	107.6	106.2	104.5	103.6	102.7
Basic EPS Excl Extraord Items	-0.32	0.05	-0.17	-0.75	-1.91
Basic/Primary EPS Incl Extraord Items	-0.32	0.05	-0.17	-0.75	-1.91
Dilution Adjustment	0.0	-	0.0	0.0	0.0
Diluted Net Income	-34.0	5.1	-17.6	-77.5	-196.7
Diluted Weighted Average Shares	107.6	109.1	104.5	103.6	102.7
Diluted EPS Excl Extraord Items	-0.32	0.05	-0.17	-0.75	-1.91
Diluted EPS Incl Extraord Items	-0.32	0.05	-0.17	-0.75	-1.91
Dividends per Share - Common Stock Primary Issue	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Interest Expense, Supplemental	-	0.0	0.0	1.7	6.7
Depreciation, Supplemental	6.9	8.5	3.6	3.8	8.1
Total Special Items	-3.7	0.0	0.0	4.5	95.9
Normalized Income Before Tax	-36.1	7.5	-17.3	-72.1	-99.9

Effect of Special Items on Income Taxes	-1.3	0.0	0.0	1.6	33.6
Inc Tax Ex Impact of Sp Items	0.3	2.4	0.3	2.4	34.4
Normalized Income After Tax	-36.5	5.1	-17.6	-74.6	-134.3

Normalized Inc. Avail to Com.	-36.5	5.1	-17.6	-74.6	-134.3

Basic Normalized EPS	-0.34	0.05	-0.17	-0.72	-1.31
Diluted Normalized EPS	-0.34	0.05	-0.17	-0.72	-1.31
Amort of Intangibles, Supplemental	-	-	0.0	0.0	2.6
Rental Expenses	4.3	4.6	5.2	5.7	6.9
Research & Development Exp, Supplemental	40.4	47.2	39.5	32.7	63.3
Normalized EBIT	-34.7	7.1	-13.4	-63.9	-90.9
Normalized EBITDA	-27.8	15.6	-9.8	-60.1	-80.2
Current Tax - Domestic	0.0	0.0	0.0	0.0	0.0
Current Tax - Foreign	0.7	1.6	1.5	1.5	0.5
Current Tax - Local	0.1	0.2	0.3	0.1	0.1
Current Tax - Total	0.8	1.8	1.8	1.6	0.7
Deferred Tax - Domestic	-	-	-	-	0.0
Deferred Tax - Foreign	0.8	0.6	-1.5	-0.8	0.2
Deferred Tax - Total	0.8	0.6	-1.5	-0.8	0.2
Income Tax - Total	1.6	2.4	0.3	0.9	0.9
Defined Contribution Expense - Domestic	0.0	0.0	0.0	0.0	1.6
Total Pension Expense	0.0	0.0	0.0	0.0	1.6

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
UpdateType/Date	Updated Normal 31-Dec-2012	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Auditor	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified

Cash & Equivalents	45.0	46.9	45.7	45.0	37.7
Cash and Short Term Investments	45.0	46.9	45.7	45.0	37.7
Accounts Receivable - Trade, Gross	25.1	35.5	59.2	21.5	30.0
Provision for Doubtful Accounts	-0.3	-0.4	-1.4	-2.4	-2.5
Trade Accounts Receivable - Net	24.8	35.1	57.9	19.1	27.5
Total Receivables, Net	24.8	35.1	57.9	19.1	27.5
Inventories - Finished Goods	16.0	8.6	5.2	17.2	20.1
Inventories - Work In Progress	12.3	25.6	29.8	27.7	36.0
Inventories - Raw Materials	72.0	85.8	74.6	69.7	94.0
Total Inventory	100.2	120.0	109.7	114.6	150.1
Prepaid Expenses	5.1	10.1	15.3	10.0	17.2
Restricted Cash - Current	0.1	-	0.0	4.9	8.7
Other Current Assets, Total	0.1	-	0.0	4.9	8.7
Total Current Assets	175.2	212.0	228.6	193.6	241.2

Land/Improvements	79.0	79.0	79.8	79.3	79.8
Machinery/Equipment	7.1	7.0	5.8	6.0	5.8
Construction in Progress	0.5	0.5	0.6	0.1	0.0
Property/Plant/Equipment - Gross	86.5	86.5	86.2	85.3	85.6
Accumulated Depreciation	-52.1	-49.3	-47.6	-44.4	-41.2
Property/Plant/Equipment - Net	34.4	37.2	38.6	40.9	44.4
Intangibles - Gross	-	-	-	-	49.8
Accumulated Intangible Amortization	-	-	-	-	-49.8
Intangibles, Net	-	-	-	-	0.0
LT Investment - Affiliate Companies	-	-	-	0.0	156.7
Long Term Investments	-	-	-	0.0	156.7
Restricted Cash - Long Term	0.0	0.1	0.1	2.2	0.0
Other Long Term Assets	12.5	19.9	13.5	13.9	12.9
Other Long Term Assets, Total	12.5	20.0	13.6	16.1	12.9
Total Assets	222.2	269.2	280.9	250.6	455.2

Accounts Payable	10.2	19.6	36.7	9.7	8.1
Accrued Expenses	7.3	8.3	10.6	9.3	15.8
Notes Payable/Short Term Debt	0.0	0.0	0.0	0.0	0.0
Current Portion - Long Term Debt/Capital Leases	-	-	-	0.0	83.2
Customer Advances	6.4	10.8	13.9	5.1	12.5
Income Taxes Payable	0.3	0.5	0.0	1.5	0.3
Other Current Liabilities	5.6	8.4	7.0	4.2	10.0
Other Current liabilities, Total	12.3	19.6	20.8	10.8	22.9
Total Current Liabilities	29.8	47.5	68.1	29.8	130.0

Total Long Term Debt	0.0	0.0	0.0	0.0	0.0
Total Debt	0.0	0.0	0.0	0.0	83.2

Other Long Term Liabilities	6.3	7.2	7.2	4.4	5.8
Other Liabilities, Total	6.3	7.2	7.2	4.4	5.8
Total Liabilities	36.1	54.7	75.3	34.2	135.8

Convertible Preferred Stock - Non Redeemable	0.0	0.0	0.0	0.0	0.0
Preferred Stock - Non Redeemable, Net	0.0	0.0	0.0	0.0	0.0
Common Stock	0.1	0.1	0.1	0.1	0.1
Common Stock	0.1	0.1	0.1	0.1	0.1
Additional Paid-In Capital	504.6	499.3	494.0	488.3	483.5
Retained Earnings (Accumulated Deficit)	-322.5	-288.4	-293.5	-275.9	-198.5
Treasury Stock - Common	-1.2	-1.2	-1.2	-1.2	-1.2
Translation Adjustment	-	4.9	6.3	4.8	35.0
Minimum Pension Liability Adjustment	-	-0.1	-0.1	0.4	0.4
Other Comprehensive Income	5.0	-	-	-	-
Other Equity, Total	5.0	4.8	6.2	5.1	35.4
Total Equity	186.1	214.6	205.6	216.4	319.4

Total Liabilities & Shareholdersâ€™ Equity	222.2	269.2	280.9	250.6	455.2

Shares Outstanding - Common Stock Primary Issue	108.2	106.7	105.8	104.1	103.3
Total Common Shares Outstanding	108.2	106.7	105.8	104.1	103.3
Treasury Shares - Common Stock Primary Issue	0.1	0.1	0.1	0.1	0.1
Employees	879	1,025	1,018	858	1,154
Number of Common Shareholders	5,000	5,000	5,200	5,485	5,692
Accumulated Intangible Amort, Suppl.	-	-	-	-	49.8
Deferred Revenue - Current	6.4	10.8	13.9	5.1	12.5
Deferred Revenue - Long Term	-	1.5	2.4	0.6	1.9
Total Operating Leases, Supplemental	6.1	10.1	9.6	9.8	9.2
Operating Lease Payments Due in Year 1	3.1	3.4	3.0	4.3	5.0
Operating Lease Payments Due in Year 2	1.7	2.3	1.9	1.6	2.8
Operating Lease Payments Due in Year 3	1.2	1.5	1.5	1.0	0.7
Operating Lease Payments Due in Year 4	0.2	1.2	1.3	1.0	0.3
Operating Lease Payments Due in Year 5	-	0.9	1.0	1.0	0.3
Operating Lease Pymts. Due in 2-3 Years	2.9	3.8	3.4	2.6	3.6
Operating Lease Pymts. Due in 4-5 Years	0.2	2.1	2.3	2.0	0.6
Oper. Lse. Pymts. Due in Year 6 & Beyond	0.0	0.8	0.9	1.0	0.1

Annual Cash Flows

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2012	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Updated Normal 31-Dec-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified

Net Income/Starting Line	-34.0	5.1	-17.6	-77.5	-196.7
Depreciation	6.9	8.5	7.0	7.4	20.9
Depreciation/Depletion	6.9	8.5	7.0	7.4	20.9
Amortization of Intangibles	-	-	0.0	0.0	2.6
Amortization	-	-	0.0	0.0	2.6
Deferred Taxes	0.8	0.6	-1.5	-0.8	0.2
Unusual Items	-7.9	0.0	0.0	-1.1	89.1
Equity in Net Earnings (Loss)	-	0.0	0.0	3.2	3.7
Other Non-Cash Items	18.7	5.7	6.1	14.6	34.6
Non-Cash Items	10.8	5.7	6.1	16.8	127.4
Accounts Receivable	10.5	22.7	-38.7	8.6	48.6
Inventories	5.9	-11.9	3.5	26.4	-6.9
Prepaid Expenses	4.4	3.0	-3.5	8.1	15.0
Accounts Payable	-13.5	-17.9	32.3	-11.0	-23.3
Taxes Payable	-0.2	0.5	-1.4	1.2	-0.2
Other Liabilities	-5.4	-4.0	10.6	-8.7	-26.2
Other Assets & Liabilities, Net	3.3	-8.8	-2.8	-4.5	-10.2
Changes in Working Capital	5.0	-16.4	0.1	20.1	-3.2
Cash from Operating Activities	-10.6	3.5	-5.9	-33.9	-48.7

Purchase of Fixed Assets	-0.6	-2.1	-1.4	-0.5	-3.4
Capital Expenditures	-0.6	-2.1	-1.4	-0.5	-3.4
Sale of Business	8.7	0.0	0.0	132.8	0.0
Sale/Maturity of Investment	-	-	-	0.0	0.0
Purchase of Investments	-	-	-	0.0	0.0
Other Investing Cash Flow	0.0	0.0	7.1	-9.1	9.6
Other Investing Cash Flow Items, Total	8.7	0.0	7.1	123.7	9.6
Cash from Investing Activities	8.1	-2.1	5.7	123.3	6.2

Other Financing Cash Flow	0.0	-0.2	-0.5	0.0	0.0
Financing Cash Flow Items	0.0	-0.2	-0.5	0.0	0.0
Sale/Issuance of Common	0.3	0.5	0.6	0.2	0.8
Common Stock, Net	0.3	0.5	0.6	0.2	0.8
Options Exercised	1.0	0.3	0.6	0.0	0.1
Issuance (Retirement) of Stock, Net	1.3	0.8	1.1	0.2	0.9
Long Term Debt Issued	-	-	-	-	0.0
Long Term Debt Reduction	-	0.0	0.0	-83.3	0.0
Long Term Debt, Net	-	0.0	0.0	-83.3	0.0
Issuance (Retirement) of Debt, Net	-	0.0	0.0	-83.3	0.0
Cash from Financing Activities	1.3	0.6	0.6	-83.1	0.9

Foreign Exchange Effects	-0.7	-0.9	0.4	1.1	-4.6
Net Change in Cash	-1.9	1.1	0.7	7.3	-46.2

Net Cash - Beginning Balance	46.9	45.7	45.0	37.7	83.9
Net Cash - Ending Balance	45.0	46.9	45.7	45.0	37.7
Cash Interest Paid	0.0	0.0	0.0	3.0	3.2
Cash Taxes Paid	0.8	0.5	2.3	0.7	1.1

Annual Income Statement

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2012	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Updated Normal 31-Dec-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified

Systems	174.3	287.3	242.8	98.7	194.3
Services	29.1	32.1	32.4	33.9	51.9
Royalties, primarily from SEN	-	0.0	0.0	0.4	4.1
Total Revenue	203.4	319.4	275.2	133.0	250.2

Product	123.6	181.2	168.0	84.2	161.3
Service	21.6	23.4	21.3	20.8	26.3
Research and development	40.4	47.2	39.5	32.7	63.3
Sales and marketing	25.9	29.3	27.5	25.2	44.6
General and administrative	26.6	31.2	32.1	34.1	43.1
Impairment of goodwill	-	-	0.0	0.0	42.1
Impairment of intangibles and long-lived	-	-	0.0	0.0	46.9
Amortization of Intangibles	-	-	0.0	0.0	2.6
gain on assets	-7.9	0.0	-	-	-
Restructuring charges	4.2	0.0	0.0	5.5	6.9
Total Operating Expense	234.3	312.3	288.6	202.5	437.1

Gain on sale of SEN	-	0.0	0.0	1.1	0.0
Equity loss of SEN	-	0.0	0.0	-3.2	-3.7
Interest Income	0.0	0.0	0.1	0.2	1.6
Interest Expense	-	0.0	0.0	-1.7	-6.7
Other, net	-1.5	0.3	-4.0	-3.5	-0.2
Net Income Before Taxes	-32.4	7.5	-17.3	-76.6	-195.8

Provision for Income Taxes	1.6	2.4	0.3	0.9	0.9
Net Income After Taxes	-34.0	5.1	-17.6	-77.5	-196.7

Net Income Before Extra. Items	-34.0	5.1	-17.6	-77.5	-196.7
Net Income	-34.0	5.1	-17.6	-77.5	-196.7

Income Available to Com Excl ExtraOrd	-34.0	5.1	-17.6	-77.5	-196.7

Income Available to Com Incl ExtraOrd	-34.0	5.1	-17.6	-77.5	-196.7

Basic Weighted Average Shares	107.6	106.2	104.5	103.6	102.7
Basic EPS Excluding ExtraOrdinary Items	-0.32	0.05	-0.17	-0.75	-1.91
Basic EPS Including ExtraOrdinary Items	-0.32	0.05	-0.17	-0.75	-1.91
Dilution Adjustment	0.0	-	0.0	0.0	0.0
Diluted Net Income	-34.0	5.1	-17.6	-77.5	-196.7
Diluted Weighted Average Shares	107.6	109.1	104.5	103.6	102.7
Diluted EPS Excluding ExtraOrd Items	-0.32	0.05	-0.17	-0.75	-1.91
Diluted EPS Including ExtraOrd Items	-0.32	0.05	-0.17	-0.75	-1.91
DPS-Ordinary Shares	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Normalized Income Before Taxes	-36.1	7.5	-17.3	-72.1	-99.9

Inc Tax Ex Impact of Sp Items	0.3	2.4	0.3	2.4	34.4
Normalized Income After Taxes	-36.5	5.1	-17.6	-74.6	-134.3

Normalized Inc. Avail to Com.	-36.5	5.1	-17.6	-74.6	-134.3

Basic Normalized EPS	-0.34	0.05	-0.17	-0.72	-1.31
Diluted Normalized EPS	-0.34	0.05	-0.17	-0.72	-1.31
Research & Development Exp	40.4	47.2	39.5	32.7	63.3
Interest Expense	-	0.0	0.0	1.7	6.7
Amort of Intangibles	-	-	0.0	0.0	2.6
Rental Expense	4.3	4.6	5.2	5.7	6.9
BC - Depreciation of Fixed Assets	6.9	-	-	-	-
Depreciation	-	8.5	3.6	3.8	8.1
Current Tax - Federal	0.0	-	-	-	-
Current Tax - Federal	-	0.0	0.0	0.0	0.0
Current Tax - State	0.1	-	-	-	-
Current Tax - State	-	0.2	0.3	0.1	0.1
Current Tax - Foreign	0.7	-	-	-	-
Current Tax - Foreign	-	1.6	1.5	1.5	0.5
Current Tax - Total	0.8	1.8	1.8	1.6	0.7
Deferred Tax - Federal	-	-	-	-	0.0
Deferred Tax - Foreign	0.8	-	-	-	-
Deferred Tax - Foreign	-	0.6	-1.5	-0.8	0.2
Deferred Tax - Total	0.8	0.6	-1.5	-0.8	0.2
Income Tax - Total	1.6	2.4	0.3	0.9	0.9
Defined Contribution Plan	0.0	0.0	0.0	0.0	1.6
Total Pension Expense	0.0	0.0	0.0	0.0	1.6

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
UpdateType/Date	Updated Normal 31-Dec-2012	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Auditor	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified

Cash and cash equivalents	45.0	46.9	45.7	45.0	37.7
Prepaid expenses and other current asset	5.1	10.1	15.3	10.0	17.2
Restricted Cash	0.1	-	0.0	4.9	8.7
Accounts Receivable	25.1	35.5	59.2	21.5	30.0
Doubtful Debts	-0.3	-0.4	-1.4	-2.4	-2.5
Raw Material	72.0	85.8	74.6	69.7	94.0
Work-in-Process	12.3	25.6	29.8	27.7	36.0
Finished Goods	16.0	8.6	5.2	17.2	20.1
Total Current Assets	175.2	212.0	228.6	193.6	241.2

Land/Buildings	79.0	79.0	79.8	79.3	79.8
Machinery/Eqp.	7.1	7.0	5.8	6.0	5.8
Constr. in Prog.	0.5	0.5	0.6	0.1	0.0
Depreciation	-52.1	-49.3	-47.6	-44.4	-41.2
Investment in SEN	-	-	-	0.0	156.7
Developed technology	-	-	-	-	48.0
Customer list	-	-	-	-	0.9
Software licenses	-	-	-	-	0.9
Amortization	-	-	-	-	-49.8
Long-term restricted cash	0.0	0.1	0.1	2.2	0.0
Other Assets	12.5	19.9	13.5	13.9	12.9
Total Assets	222.2	269.2	280.9	250.6	455.2

Accounts Payable	10.2	19.6	36.7	9.7	8.1
Accrued Compens.	7.3	8.3	10.6	9.3	15.8
Warranty	1.7	3.6	2.6	0.6	3.1
Income taxes	0.3	0.5	0.0	1.5	0.3
Deferred Revenue	6.4	10.8	13.9	5.1	12.5
Other current liabilities	3.9	4.8	4.4	3.5	6.9
Current portion of convertible subordina	-	-	-	0.0	83.2
Total Current Liabilities	29.8	47.5	68.1	29.8	130.0

Other long-term liabilities	5.8	5.7	4.8	3.9	3.9
Long-term deferred revenue	0.5	1.5	2.4	0.6	1.9
Total Liabilities	36.1	54.7	75.3	34.2	135.8

Preferred stock,	0.0	0.0	0.0	0.0	0.0
Common Stock	0.1	0.1	0.1	0.1	0.1
Additional paid-in capital	504.6	499.3	494.0	488.3	483.5
Treasury Stock	-1.2	-1.2	-1.2	-1.2	-1.2
Accumulated deficit	-322.5	-288.4	-293.5	-275.9	-198.5
Accumulated other comprehensive income	5.0	-	-	-	-
Foreign currency translation adjustments	-	4.9	6.3	4.8	35.0
Pension benefit adjustment	-	-0.1	-0.1	0.4	0.4
Total Equity	186.1	214.6	205.6	216.4	319.4

Total Liabilities & Shareholders' Equity	222.2	269.2	280.9	250.6	455.2

S/O-Ordinary Shares	108.2	106.7	105.8	104.1	103.3
Total Common Shares Outstanding	108.2	106.7	105.8	104.1	103.3
T/S-Ordinary Shares	0.1	0.1	0.1	0.1	0.1
Deferred Revenue - Current	6.4	10.8	13.9	5.1	12.5
Deferred Revenue - Long Term	-	1.5	2.4	0.6	1.9
Intangibles Amortization	-	-	-	-	49.8
Full-Time Employees	879	1,025	1,018	858	1,154
Number of Common Shareholders	5,000	5,000	5,200	5,485	5,692
Operating Leases Due Within 1 Year	3.1	3.4	3.0	4.3	5.0
Operating Leases Due Within 2 Years	1.7	2.3	1.9	1.6	2.8
Operating Leases Due Within 3 Years	1.2	1.5	1.5	1.0	0.7
Operating Leases Due Within 4 Years	0.2	1.2	1.3	1.0	0.3
Operating Leases Due Within 5 Years	-	0.9	1.0	1.0	0.3
Operating Leases Due After 5 Years	-	0.8	0.9	1.0	0.1
Total Operating Leases, Supplemental	6.1	10.1	9.6	9.8	9.2

Annual Cash Flows

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2012	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Updated Normal 31-Dec-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified	Unqualified

Net Income	-34.0	5.1	-17.6	-77.5	-196.7
Depreciation	6.9	8.5	7.0	7.4	20.9
Gain on sale of dry strip assets and int	-7.9	0.0	-	-	-
Deferred Taxes	0.8	0.6	-1.5	-0.8	0.2
Other	0.2	0.0	0.0	0.1	3.3
Stock Compensation	4.0	4.7	4.1	4.7	4.7
Provision for excess inventory	14.5	1.0	2.0	9.8	24.6
Accounts Receivable	10.5	22.7	-38.7	8.6	48.6
Inventories	5.9	-11.9	3.5	26.4	-6.9
Prepaid expenses and other current asset	4.4	3.0	-3.5	8.1	15.0
Payable/Other	-13.5	-17.9	32.3	-11.0	-23.3
Deferred Revenue	-5.4	-4.0	10.6	-8.7	-26.2
Taxes Payable	-0.2	0.5	-1.4	1.2	-0.2
Assets/Liabs.	3.3	-8.8	-2.8	-4.5	-10.2
Undistributed loss of SEN	-	0.0	0.0	3.2	3.7
Gain on sale of SEN	-	0.0	0.0	-1.1	0.0
Amortization of Intangibles	-	-	0.0	0.0	2.6
Impairment of goodwill	-	-	0.0	0.0	42.1
Impairment of intangibles and long lived	-	-	0.0	0.0	46.9
Cash dividend from SEN	-	-	0.0	0.0	2.0
Cash from Operating Activities	-10.6	3.5	-5.9	-33.9	-48.7

Capital Expenditures	-0.6	-2.1	-1.4	-0.5	-3.4
Restricted Cash	0.0	0.0	7.1	1.5	9.6
Proceeds from sale of dry strip assets a	8.7	0.0	0.0	132.8	0.0
Payments related to sale of SEN	-	0.0	0.0	-10.6	0.0
Purchase of marketable securities	-	-	-	0.0	0.0
Sale of Investment	-	-	-	0.0	0.0
Cash from Investing Activities	8.1	-2.1	5.7	123.3	6.2

Repayment of convertible subordinated de	-	0.0	0.0	-83.3	0.0
Financing fees and other expenses	0.0	-0.2	-0.5	0.0	0.0
Proceeds from exercise of stock options	1.0	0.3	0.6	0.0	0.1
Issue Com./Employee	0.3	0.5	0.6	0.2	0.8
Issue of Convertible Debt	-	-	-	-	0.0
Cash from Financing Activities	1.3	0.6	0.6	-83.1	0.9

Foreign Exchange Effects	-0.7	-0.9	0.4	1.1	-4.6
Net Change in Cash	-1.9	1.1	0.7	7.3	-46.2

Net Cash - Beginning Balance	46.9	45.7	45.0	37.7	83.9
Net Cash - Ending Balance	45.0	46.9	45.7	45.0	37.7
Cash Interest Paid	0.0	0.0	0.0	3.0	3.2
Cash Taxes Paid	0.8	0.5	2.3	0.7	1.1

Financial Health

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Key IndicatorsÂ USD (mil)
Â	Quarter Ending 30-Sep-2013	Quarter Ending Yr Ago	Annual Year End 31-Dec-2012	1 Year Growth	3 Year Growth	5 Year Growth
Total Revenue	48.8	9.39%	203.4	-36.33%	15.20%	-12.86%
Research & Development	8.1	-17.29%	40.4	-14.36%	7.35%	-10.92%
Operating Income	-2.8	-	-30.9	-	-	-
Income Available to Common Excl Extraord Items	-4.8	-	-34.0	-	-	-
Basic EPS Excl Extraord Items	-0.04	-	-0.32	-	-	-
Capital Expenditures	0.5	-9.70%	0.6	-72.18%	8.48%	-43.63%
Cash from Operating Activities	-10.8	-	-10.6	-	-	-
Free Cash Flow	-11.3	-	-11.2	-	-	-
Total Assets	227.3	-3.93%	222.2	-17.49%	-3.94%	-19.81%
Total Liabilities	54.6	46.80%	36.1	-34.02%	1.80%	-27.80%
Total Long Term Debt	14.8	-	0.0	-	-	-
Employees	-	-	879	-14.24%	0.81%	-11.01%
Total Common Shares Outstanding	109.5	1.47%	108.2	1.39%	1.29%	1.09%
Market Cap	231.0	103.91%	149.3	5.20%	0.57%	-20.54%

Key Ratios
Â	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Profitability
Gross Margin	28.60%	35.92%	31.19%	21.10%	25.02%
Operating Margin	-15.21%	2.23%	-4.86%	-52.20%	-74.67%
Pretax Margin	-15.92%	2.34%	-6.27%	-57.59%	-78.25%
Net Profit Margin	-16.73%	1.59%	-6.39%	-58.24%	-78.60%
Financial Strength
Current Ratio	5.88	4.47	3.36	6.51	1.86
Long Term Debt/Equity	0.00	0.00	0.00	0.00	0.00
Total Debt/Equity	0.00	0.00	0.00	0.00	0.26
Management Effectiveness
Return on Assets	-13.85%	1.85%	-6.61%	-21.95%	-34.96%
Return on Equity	-16.99%	2.42%	-8.33%	-28.92%	-48.84%
Efficiency
Receivables Turnover	6.79	6.87	7.15	5.71	4.83
Inventory Turnover	1.32	1.78	1.69	0.79	1.17
Asset Turnover	0.83	1.16	1.04	0.38	0.44

Market ValuationÂ USD (mil)
Enterprise Value	224.7	.	Price/Sales (TTM)	1.42
Enterprise Value/Revenue (TTM)	1.24	.	Price/Book (MRQ)	1.50
Market Cap as of 08-Nov-2013	258.0	.

Ratio Comparisons

Traded: NASDAQ: ACLS	Financials in: USD (actual units)
Industry: Misc. Fabricated Products	As of 08-Nov-2013
Sector: Basic Materials

	Company	Industry	Sector	S&P 500
Valuation Ratios
P/E Excluding Extraordinary (TTM)	-	27.86	24.91	19.68
P/E High Excluding Extraordinary - Last 5 Yrs	28.58	38.88	40.00	32.79
P/E Low Excluding Extraordinary - Last 5 Yrs	28.58	6.62	8.69	10.71
Beta	2.35	1.53	1.47	1.00
Price/Revenue (TTM)	1.42	1.99	2.38	2.57
Price/Book (MRQ)	1.50	2.68	3.90	3.67
Price to Tangible Book (MRQ)	1.49	6.83	5.81	5.21
Price to Cash Flow Per Share (TTM)	-	16.42	13.98	14.22
Price to Free Cash Flow Per Share (TTM)	-	29.60	37.21	26.26

Dividends
Dividend Yield	-	0.88%	1.75%	2.26%
Dividend Per Share - 5 Yr Avg	0.00	0.99	2.50	1.99
Dividend 5 Yr Growth	-	4.54%	1.06%	0.08%
Payout Ratio (TTM)	-	20.70%	29.68%	25.98%

Growth Rates (%)
Revenue (MRQ) vs Qtr 1 Yr Ago	9.39%	21.35%	20.15%	15.58%
Revenue (TTM) vs TTM 1 Yr Ago	-17.10%	19.14%	23.47%	17.69%
Revenue 5 Yr Growth	-12.86%	6.76%	7.38%	8.97%
EPS (MRQ) vs Qtr 1 Yr Ago	46.12%	33.62%	13.63%	19.49%
EPS (TTM) vs TTM 1 Yr Ago	-51.41%	124.73%	42.74%	32.55%
EPS 5 Yr Growth	-	5.77%	8.05%	9.86%
Capital Spending 5 Yr Growth	-43.63%	8.85%	9.93%	-2.04%

Financial Strength
Quick Ratio (MRQ)	2.52	1.74	1.78	1.24
Current Ratio (MRQ)	5.34	3.16	2.73	1.79
LT Debt/Equity (MRQ)	0.09	0.26	0.81	0.64
Total Debt/Equity (MRQ)	0.09	0.29	0.88	0.73
Interest Coverage (TTM)	-127.99	10.05	11.21	13.80

Profitability Ratios (%)
Gross Margin (TTM)	25.94%	26.58%	32.32%	45.21%
Gross Margin - 5 Yr Avg	29.58%	25.52%	31.54%	44.91%
EBITD Margin (TTM)	-16.82%	16.26%	22.23%	24.43%
EBITD Margin - 5 Yr Avg	-13.73%	15.46%	18.43%	22.84%
Operating Margin (TTM)	-16.39%	12.93%	16.99%	20.63%
Operating Margin - 5 Yr Avg	-24.84%	12.28%	13.64%	18.28%
Pretax Margin (TTM)	-17.19%	12.37%	15.86%	17.95%
Pretax Margin - 5 Yr Avg	-26.63%	11.83%	12.57%	17.10%
Net Profit Margin (TTM)	-17.93%	8.43%	11.55%	13.65%
Net Profit Margin - 5 Yr Avg	-27.15%	7.88%	8.64%	12.10%
Effective Tax Rate (TTM)	-	31.50%	28.04%	28.45%
Effective Tax rate - 5 Yr Avg	-	32.54%	29.65%	29.92%

Management Effectiveness (%)
Return on Assets (TTM)	-14.04%	7.34%	8.05%	8.54%
Return on Assets - 5 Yr Avg	-18.84%	8.99%	7.49%	8.40%
Return on Investment (TTM)	-16.34%	6.14%	5.86%	7.90%
Return on Investment - 5 Yr Avg	-23.50%	7.32%	5.78%	8.27%
Return on Equity (TTM)	-17.51%	12.34%	18.78%	19.72%
Return on Equity - 5 Yr Avg	-24.82%	16.56%	17.45%	20.06%

Efficiency
Revenue/Employee (TTM)	206,691.70	330,250.78	613,510.56	927,613.77
Net Income/Employee (TTM)	-37,059.16	26,934.95	82,492.56	116,121.92
Receivables Turnover (TTM)	6.69	7.02	8.71	13.25
Inventory Turnover (TTM)	1.24	4.69	8.16	14.53
Asset Turnover (TTM)	0.78	0.96	0.82	0.93

Annual Ratios

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Financial Strength
Current Ratio	5.88	4.47	3.36	6.51	1.86
Quick/Acid Test Ratio	2.34	1.73	1.52	2.15	0.50
Working Capital	145.4	164.6	160.5	163.8	111.2
Long Term Debt/Equity	0.00	0.00	0.00	0.00	0.00
Total Debt/Equity	0.00	0.00	0.00	0.00	0.26
Long Term Debt/Total Capital	0.00	0.00	0.00	0.00	0.00
Total Debt/Total Capital	0.00	0.00	0.00	0.00	0.21
Payout Ratio	0.00%	0.00%	0.00%	0.00%	0.00%
Effective Tax Rate	-	32.04%	-	-	-
Total Capital	186.1	214.6	205.6	216.4	402.6

Efficiency
Asset Turnover	0.83	1.16	1.04	0.38	0.44
Inventory Turnover	1.32	1.78	1.69	0.79	1.17
Days In Inventory	276.81	204.79	216.07	460.21	310.71
Receivables Turnover	6.79	6.87	7.15	5.71	4.83
Days Receivables Outstanding	53.76	53.11	51.05	63.91	75.53
Revenue/Employee	231,382	311,625	270,346	155,037	216,823
Operating Income/Employee	-35,197	6,958	-13,131	-80,925	-161,904
EBITDA/Employee	-27,373	15,248	-9,594	-76,497	-152,611

Profitability
Gross Margin	28.60%	35.92%	31.19%	21.10%	25.02%
Operating Margin	-15.21%	2.23%	-4.86%	-52.20%	-74.67%
EBITDA Margin	-11.83%	4.89%	-3.55%	-49.34%	-70.39%
EBIT Margin	-15.21%	2.23%	-4.86%	-52.20%	-74.67%
Pretax Margin	-15.92%	2.34%	-6.27%	-57.59%	-78.25%
Net Profit Margin	-16.73%	1.59%	-6.39%	-58.24%	-78.60%
R&D Expense/Revenue	19.86%	14.77%	14.36%	24.55%	25.28%
COGS/Revenue	71.40%	64.08%	68.81%	78.90%	74.98%
SG&A Expense/Revenue	25.79%	18.92%	21.69%	44.58%	35.02%

Management Effectiveness
Return on Assets	-13.85%	1.85%	-6.61%	-21.95%	-34.96%
Return on Equity	-16.99%	2.42%	-8.33%	-28.92%	-48.84%

Valuation
Free Cash Flow/Share	-0.10	0.01	-0.07	-0.33	-0.50
Operating Cash Flow/Share	-0.10	0.03	-0.06	-0.33	-0.47

Current Market Multiples
Market Cap/Earnings (TTM)	-7.83
Market Cap/Equity (MRQ)	1.49
Market Cap/Revenue (TTM)	1.42
Market Cap/EBIT (TTM)	-7.17
Market Cap/EBITDA (TTM)	-8.44
Enterprise Value/Earnings (TTM)	-6.82
Enterprise Value/Equity (MRQ)	1.30
Enterprise Value/Revenue (TTM)	1.24
Enterprise Value/EBIT (TTM)	-6.25
Enterprise Value/EBITDA (TTM)	-7.35

Stock Report

Stock Snapshot

Traded: NASDAQ: ACLS

As of 8-Nov-2013 US Dollars

Recent Price $2.37 EPS $-0.34

52 Week High $2.48 Price/Sales 1.27

52 Week Low $0.82 Price/Book 1.38

Avg. Volume (mil) 0.69 Beta 2.35

Market Value (mil) $258.01

Price % Change Rel S&P 500%

4 Week 2.16% -1.73%

13 Week 28.11% 22.38%

52 Week 163.33% 104.86%

Year to Date 71.74% 38.33%

2 Year Weekly End Price & Volume

Stock History

Market Cap History
	30-Sep-13	% Chg	30-Jun-13	% Chg	31-Mar-13	% Chg	31-Dec-12	% Chg	30-Sep-12	% Chg
Total Common Shares Outstanding	109	0.7	109	0.3	108	0.1	108	0.3	108	0.0
Market Cap	231.0	16.8	197.7	46.1	135.4	-9.3	149.3	31.8	113.3	-12.5

Yearly Price History
	2013	% Chg	2012	% Chg	2011	% Chg	2010	% Chg	2009	% Chg
High Price	2.48	21.6	2.04	-45.9	3.77	1.3	3.72	109.0	1.78	-70.5
Low Price	1.08	51.9	0.71	-28.9	1.00	-25.4	1.34	688.2	0.17	-52.8
Year End Price	2.37	71.7	1.38	3.8	1.33	-61.6	3.46	145.4	1.41	176.5

Monthly Price History
Price Ending Date	Open	High	Low	Close	Volume
08-Nov-13	2.15	2.42	2.14	2.37	5,033,215
31-Oct-13	2.11	2.48	2.11	2.17	14,985,768
30-Sep-13	2.00	2.38	1.92	2.11	16,947,147
30-Aug-13	2.22	2.24	1.81	1.98	12,160,365
31-Jul-13	1.82	2.24	1.75	2.18	14,979,864
28-Jun-13	1.62	1.85	1.57	1.82	17,439,506
31-May-13	1.29	1.68	1.21	1.60	14,878,206
30-Apr-13	1.25	1.33	1.12	1.30	11,367,509
28-Mar-13	1.10	1.28	1.08	1.25	9,529,561
28-Feb-13	1.36	1.39	1.11	1.14	8,928,170
31-Jan-13	1.43	1.45	1.23	1.35	7,683,661
31-Dec-12	1.00	1.43	0.97	1.38	10,464,379
30-Nov-12	0.92	1.00	0.82	0.99	3,636,969

Standard & Poor’s

United States of America Long-Term Rating Lowered To 'AA+' Due To Political Risks, Rising Debt Burden; Outlook Negative

Publication date: 05-Aug-2011 20:13:14 EST

· We have lowered our long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA' and affirmed the 'A-1+' short-term rating.

· We have also removed both the short- and long-term ratings from CreditWatch negative.

· The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics.

· More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011.

· Since then, we have changed our view of the difficulties in bridging the gulf between the political parties over fiscal policy, which makes us pessimistic about the capacity of Congress and the Administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government's debt dynamics any time soon.

· The outlook on the long-term rating is negative. We could lower the long-term rating to 'AA' within the next two years if we see that less reduction in spending than agreed to, higher interest rates, or new fiscal pressures during the period result in a higher general government debt trajectory than we currently assume in our base case.

TORONTO (Standard & Poor's) Aug. 5, 2011--Standard & Poor's Ratings Services said today that it lowered its long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA'. Standard & Poor's also said that the outlook on the long-term rating is negative. At the same time, Standard & Poor's affirmed its 'A-1+' short-term rating on the U.S. In addition, Standard & Poor's removed both ratings from CreditWatch, where they were placed on July 14, 2011, with negative implications.

The transfer and convertibility (T&C) assessment of the U.S.--our assessment of the likelihood of official interference in the ability of U.S.-based public- and private-sector issuers to secure foreign exchange for

debt service--remains 'AAA'.

We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, especially on entitlements, or on reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process. We also believe that the fiscal consolidation plan that Congress and the Administration agreed to this week falls short of the amount that we believe is necessary to stabilize the general government debt burden by the middle of the decade.

Our lowering of the rating was prompted by our view on the rising public debt burden and our perception of greater policymaking uncertainty, consistent with our criteria (see "Sovereign Government Rating Methodology and Assumptions ," June 30, 2011, especially Paragraphs 36-41). Nevertheless, we view the U.S. federal government's other economic, external, and monetary credit attributes, which form the basis for the sovereign rating, as broadly unchanged.

We have taken the ratings off CreditWatch because the Aug. 2 passage of the Budget Control Act Amendment of 2011 has removed any perceived immediate threat of payment default posed by delays to raising the government's debt ceiling. In addition, we believe that the act provides sufficient clarity to allow us to evaluate the likely course of U.S. fiscal policy for the next few years.

The political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy. Despite this year's wide-ranging debate, in our view, the differences between political parties have proven to be extraordinarily difficult to bridge, and, as we see it, the resulting agreement fell well short of the comprehensive fiscal consolidation program that some proponents had envisaged until quite recently. Republicans and Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating to the Select Committee decisions on more comprehensive measures. It appears that for now, new revenues have dropped down on the menu of policy options. In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements,

the containment of which we and most other independent observers regard as key to long-term fiscal sustainability.

Our opinion is that elected officials remain wary of tackling the structural issues required to effectively address the rising U.S. public debt burden in a manner consistent with a 'AAA' rating and with 'AAA' rated sovereign peers (see Sovereign Government Rating Methodology and Assumptions," June 30, 2011, especially Paragraphs 36-41). In our view, the difficulty in framing a consensus on fiscal policy weakens the government's ability to manage public finances and diverts attention from the debate over how to achieve more balanced and dynamic economic growth in an era of fiscal stringency and private-sector deleveraging (ibid). A new political consensus might (or might not) emerge after the 2012 elections, but we believe that by then, the government debt burden will likely be higher, the needed medium-term fiscal adjustment potentially greater, and the inflection point on the U.S. population's demographics and other age-related spending drivers closer at hand (see "Global Aging 2011: In The U.S., Going Gray Will Likely Cost Even More Green, Now," June 21, 2011).

Standard & Poor's takes no position on the mix of spending and revenue measures that Congress and the Administration might conclude is appropriate for putting the U.S.'s finances on a sustainable footing.

The act calls for as much as $2.4 trillion of reductions in expenditure growth over the 10 years through 2021. These cuts will be implemented in two steps: the $917 billion agreed to initially, followed by an additional $1.5 trillion that the newly formed Congressional Joint Select Committee on Deficit Reduction is supposed to recommend by November 2011. The act contains no measures to raise taxes or otherwise enhance revenues, though the committee could recommend them.

The act further provides that if Congress does not enact the committee's recommendations, cuts of $1.2 trillion will be implemented over the same time period. The reductions would mainly affect outlays for civilian discretionary spending, defense, and Medicare. We understand that this fall-back mechanism is designed to encourage Congress to embrace a more balanced mix of expenditure savings, as the committee might recommend.

We note that in a letter to Congress on Aug. 1, 2011, the Congressional Budget Office (CBO) estimated total budgetary savings under the act to be at least $2.1 trillion over the next 10 years relative to its baseline assumptions. In updating our own fiscal projections, with certain modifications outlined below, we have relied on the CBO's latest "Alternate Fiscal Scenario" of June 2011, updated to include the CBO assumptions contained in its Aug. 1 letter to Congress. In general, the CBO's "Alternate Fiscal Scenario" assumes a continuation of recent Congressional action overriding existing law.

We view the act's measures as a step toward fiscal consolidation. However, this is within the framework of a legislative mechanism that leaves open the details of what is finally agreed to until the end of 2011, and Congress and the Administration could modify any agreement in the future. Even assuming that at least $2.1 trillion of the spending reductions the act envisages are implemented, we maintain our view that the U.S. net general government debt burden (all levels of government combined, excluding liquid financial assets) will likely continue to grow. Under our revised base case fiscal scenario--which we consider to be consistent with a 'AA+' long-term rating and a negative outlook--we now project that net general government debt would rise from an estimated 74% of GDP by the end of 2011 to 79% in 2015 and 85% by 2021. Even the projected 2015 ratio of sovereign indebtedness is high in relation to those of peer credits and, as noted, would continue to rise under the act's revised policy settings.

Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act. Key macroeconomic assumptions in the base case scenario include trend real GDP growth of 3% and consumer price inflation near 2% annually over the decade.

Our revised upside scenario--which, other things being equal, we view as consistent with the outlook on the 'AA+' long-term rating being revised to stable--retains these same macroeconomic assumptions. In addition, it incorporates $950 billion of new revenues on the assumption that the 2001 and 2003 tax cuts for high earners lapse from 2013 onwards, as the Administration is advocating. In this scenario, we project that the net general government debt would rise from an estimated 74% of GDP by the end of 2011 to 77% in 2015 and to 78% by 2021.

Our revised downside scenario--which, other things being equal, we view as being consistent with a possible further downgrade to a 'AA' long-term rating--features less-favorable macroeconomic assumptions, as outlined below and also assumes that the second round of spending cuts (at least $1.2 trillion) that the act calls for does not occur. This scenario also assumes somewhat higher nominal interest rates for U.S. Treasuries. We still believe that the role of the U.S. dollar as the key reserve currency confers a government funding advantage, one that could change only slowly over time, and that Fed policy might lean toward continued loose monetary policy at a time of fiscal tightening. Nonetheless, it is possible that interest rates could rise if investors re-price relative risks. As a result, our alternate scenario factors in a 50 basis point (bp)-75 bp rise in 10-year bond yields relative to the base and upside cases from 2013 onwards. In this scenario, we project the net public debt burden would rise from 74% of GDP in 2011 to 90% in 2015 and to 101% by 2021.

Our revised scenarios also take into account the significant negative revisions to historical GDP data that the Bureau of Economic Analysis announced on July 29. From our perspective, the effect of these revisions underscores two related points when evaluating the likely debt trajectory of the U.S. government. First, the revisions show that the recent recession was deeper than previously assumed, so the GDP this year is lower than previously thought in both nominal and real terms. Consequently, the debt burden is slightly higher. Second, the revised data highlight the sub-par path of the current economic recovery when compared with rebounds following previous post-war recessions. We believe the sluggish pace of the current economic recovery could be consistent with the experiences of countries that have had financial crises in which the slow process of debt deleveraging in the private sector leads to a persistent drag on demand. As a result, our downside case scenario assumes relatively modest real trend GDP growth of 2.5% and inflation of near 1.5% annually going forward.

When comparing the U.S. to sovereigns with 'AAA' long-term ratings that we view as relevant peers--Canada, France, Germany, and the U.K.--we also observe, based on our base case scenarios for each, that the trajectory of the U.S.'s net public debt is diverging from the others. Including the U.S., we estimate that these five sovereigns will have net general government debt to GDP ratios this year ranging from 34% (Canada) to 80% (the U.K.), with the U.S. debt burden at 74%. By 2015, we project that their net public debt to GDP ratios will range between 30% (lowest, Canada) and 83% (highest, France), with the U.S. debt burden at 79%. However, in contrast with the U.S., we project that the net public debt burdens of these other sovereigns will begin to decline, either before or by 2015.

Standard & Poor's transfer T&C assessment of the U.S. remains 'AAA'. Our T&C assessment reflects our view of the likelihood of the sovereign restricting other public and private issuers' access to foreign exchange needed to meet debt service. Although in our view the credit standing of the U.S. government has deteriorated modestly, we see little indication that official interference of this kind is entering onto the policy agenda of either Congress or the Administration. Consequently, we continue to view this risk as being highly remote.

The outlook on the long-term rating is negative. As our downside alternate fiscal scenario illustrates, a higher public debt trajectory than we currently assume could lead us to lower the long-term rating again. On the other hand, as our upside scenario highlights, if the recommendations of the Congressional Joint Select Committee on Deficit Reduction--independently or coupled with other initiatives, such as the lapsing of the 2001 and 2003 tax cuts for high earners--lead to fiscal consolidation measures beyond the minimum mandated, and we believe they are likely to slow the deterioration of the government's debt dynamics, the long-term rating could stabilize at 'AA+'.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.39
UK Pound	1	Rs.101.80
Euro	1	Rs.84.75

INFORMATION DETAILS

Report Prepared by :

MNL

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.