Sterling Capital outlines recommendations in letter to Axcelis

By Lisa Kerner

Charlotte, N.C., Nov. 30 - Axcelis Technologies Inc. investor Sterling Capital, in its Nov. 19 letter to the company's chairman and chief executive officer, Mary Puma, recommended Axcelis move forward on the following actions:

• Refinance the existing 2009 convertible notes;

• Explore a sale-leaseback agreement for the Beverly property; and

• Begin the process to explore strategic alternatives for Axcelis.

Sterling believes "a weakening semiconductor capital equipment market and aggressive marketing tactics by a well-funded competitor may work to create a challenging 2008," according to a schedule 13D filing with the Securities and Exchange Commission.

The investor owns about 12 million shares, or 11%, of the Beverly, Mass., company, which makes semiconductor manufacturing equipment.

It was previously reported that Sterling Capital met with Axcelis management on Nov. 15 to discuss the progress of the Optima HD, the company's strategy to maintain market share, planned cost reductions and personnel changes.

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