Good day, ladies and gentlemen, and welcome to the Axcelis Technologies Second Quarter 2012 Conference Call. My name is Tony, and I will be your coordinator for today. [Operator Instructions] I would now like to turn the presentation over to your host for today's call, Amy Rasimas, Director of Investor Relations of Axcelis Technologies. Please proceed, ma'am.

Thank you, Tony. This is Amy Rasimas, Director of Investor Relations. Welcome to our conference call to discuss our second quarter results. With me today is Mary Puma, Chairman and CEO; Jay Zager, Executive Vice President and CFO; and Doug Lawson, Senior Vice President of Strategic Initiatives. If you have not seen a copy of our press release issued earlier today, it is available on our website. Playback service will also be available on our website as described in our press release. Please note that comments made today about our expectations for future revenues, profits and other results are forward-looking statements under the SEC's Safe Harbor provision. These forward-looking statements are based on management's current expectations and are subject to the risks inherent in our business. These risks are described in detail in our Form 10-K annual report and other SEC filings, which we urge you to review. Our actual results may differ materially from our current expectations. We do not assume any obligation to update these forward-looking statements. I'd now like to turn the call over to Mary Puma.

Thank you, Amy. Axcelis managed well through what turned out to be a more difficult quarter than anticipated. Like others in the industry, our second quarter started off with much promise, showing signs of an industry recovery. Very late in the quarter, as global economic conditions stalled, we, along with our peers, found ourselves facing much more challenging industry condition. Cautious customers slowed their build plans and held back on placing planned orders -- actions that impacted both our equipment and aftermarket business. Despite this, we were able to deliver break-even profitability with a slight miss in revenue guidance. As many of our peers have reported, Q3 is shaping up to be a difficult quarter, although meetings at SEMICON West and several recent trips to Asia and Europe confirm that the longer-term outlook for the industry is positive. Our goal is to leverage future market strength. And as such, we remained focused on positioning our products for top line growth. At the same time, we recognize the need to continue to reduce our quarterly break-even revenue level and fortify our cash position. Jay will get into more detail on this in a few minutes. Our plan in 2012 is to continue to extend the reach of the Optima HDx beyond memory and into logic and foundry. The natural extension will be a key driver of improved market share in the future. Evaluations for the Optima HDx at logic and foundry customers are proceeding. We continue to demonstrate competitive advantages with our cost-effective damage engineering solution and our superior extended Eterna ELS3 source lifetime for carbon and germanium. In fact, in the field the ELS3 source exceeded its spec, clocking in over 500 hours of uninterrupted carbon implants. This resulted in more than a 100% advantage over the competition. Together, the…

Thank you, Mary, and good afternoon, everyone. As Mary indicated, Q2 started out to be a solid quarter for Axcelis, but business held off toward the end of the quarter with a significant slowdown occurring in the last 2 weeks of June. As a result, revenue for the quarter came in at $59.1 million, slightly below the low end of our guidance. And due to the timing of shipments, our cash balance of $33.9 million was also lower than we had expected. Despite the lower revenues, we were able to generate break-even earnings, significantly better than our guidance. Q2 consolidated sales of $59.1 million reflect a sequential improvement of 7.5%. System sales in the quarter were $26.2 million, while sales for our aftermarket business, which we call GSS, were $32.9 million. Both system sales and GSS sales had modest growth over Q1. And system shipments were $26.8 million, a 43% sequential improvements. Within these shipment totals, ion implant shipments were $24.9 million, or about 93% of the total. And shipments for our cleaning and curing systems, which reflect primarily our dry strip business, were $1.9 million, or about 7% of the total. For the first 6 months of the year, implant shipments were about 81% of total shipments, more in line with our historic ratios. In the quarter, about 2/3 of our shipments were to memory customers, and about 1/3 of our shipments were to logic and foundry customers. This was the same profile that we saw in the first quarter. Sales to our top 10 customers accounted for approximately 90% of our total sales, with 3 customers exceeding 10%. Systems bookings for the quarter were $18.3 million, down about 22% sequentially. Our book-to-bill ratio was 0.68, compared with 1.26 in the first quarter. And we exited the quarter with…

Thank you, Jay. We believe that we have a strong roadmap to drive top line growth, improve profitability and generate cash. Continuing on this path will drive customer penetrations and market share gains and result in enhanced shareholder value. With that, I'd like to open it up for questions.

[Operator Instructions] Your first question comes from the line of John Cangelosi [ph] of Exelis [ph].

I have a question. How much of your business do you do in Europe? Do you do any business in Europe?

In terms of our system sales, most of our system sales tend to be over in the Asia Pacific area. However, we have, over the years, had a very strong implant business end in Europe, and as a result, a good portion of our GSS aftermarket business still takes place in Europe.

If you take a look at Q2, though, about 20% of our bookings came out of Europe and about 30% of our shipments. So it's mixed, but it really varies quarter over quarter. So I think, basically, what you're asking us, are we exposed to what's going on right now in Europe? And based on the reaction and discussions we've had with our customers, our customers are much more influenced by the global economy and what's happening in the global economy in the semiconductor industry versus any of the immediate things that are happening on the continent.

Right. And I have another question. Do you see or foresee any more restructuring expenses coming in the last half of this year?

Well, we continue -- we've said this before -- we continue to review where we are, what market conditions are, where the company's financial performance lies. And we have always said that, should market continue -- conditions continue to deteriorate, that we will continue to look at our operating expenses and take actions. And in fact, that is what drove the additional restructuring that we took in, in Q3. So it's just simply a matter of monitoring and then making decisions about what the right thing to do is for the business.

Your next question comes from the line of Christian Schwab of Craig-Hallum Capital Group.

Jay, who are the top 3 customers? And what percentages were they? Do you have that handy?

We don't list the specific customers. They were all above 10% and they are generally in the 10% to 20% range.

Great. And then, I guess my last question. Do you think the company's at a position to maybe seek strategic alternatives? We've kind of struggled for a number of years now not to get back to profitability and maybe the organization may be attractive to somebody else. I mean, your stock, I mean, you could -- your aftermarket revenues, if you will, call it $140 million to $150 million, are quite profitable, sustainable business that -- I mean, most companies don't trade well below product and support. Are we at that type of point yet? Or is that something we need to look at down the road depending on how the top line looks?

So Christian, we all know that consolidation is accelerating in the industry, and the Axcelis management team and our Board believes that it's critical that we gain additional scale as we move forward. As you know, our primary goal at this point in time is to drive the business to be the best that it can be. We're growing top line growth. We're improving gross margins. We're reducing our operating expenses. We're driving very hard for profitability and to generate cash. And we believe that taking all of those actions will allow us to be a very profitable company and a candidate potentially to gain the scale, to become part, potentially, of another company. So I think we just wait and watch and we continue to do what we're doing now. As I said, I think we've got a very strong roadmap to drive that top line growth and profitability. And we'll just keep marching down that path and see where it takes us.

Ladies and gentlemen, this concludes the Q&A portion of the call. I would now turn the call back over to Mary Puma, who will make a few closing remarks.

I'd like to thank you all for joining us today, and we look forward to seeing many of you at the Craig-Hallum Alpha Select Conference in New York, which is scheduled for September 27. Thank you, again.

This concludes the presentation. Thank you for your participation in today's conference. You may now disconnect and have a great week.