Axcelis Announces Financial Results for First Quarter 2023

May 3, 2023 at 4:01 PM EDT

Strength in Silicon Carbide Power Devices and Strong Purion Demand Drives Revenue Growth and Record Backlog

BEVERLY, Mass., May 3, 2023 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the first quarter of 2023.

Strength in Silicon Carbide Power Devices and Strong Purion Demand Drives Revenue Growth and Record Backlog

Highlights include:

  • The Company reported first quarter revenue of $254.0 million, compared to $266.1 million for the fourth quarter of 2022.
  • Operating profit for the quarter was $51.4 million, compared to $56.1 million for the fourth quarter.
  • Net income for the quarter was $47.7 million, or $1.43 per diluted share, compared to $57.0 million, or $1.71 per diluted share in the fourth quarter.
  • Gross margin for the quarter was 40.9%, compared to 41.2% in the fourth quarter.
  • First quarter ended with record systems backlog of $1.27 billion on quarterly bookings of $298 million.

President and CEO Mary Puma commented, "Axcelis delivered strong first quarter financial performance with a new backlog record, as a result of significant demand and solid execution by the Axcelis team. The Purion product family continues to gain share, especially in the mature process technology markets. Axcelis' high value Purion product extensions were designed to optimize power and image sensor device manufacturing, uniquely positioning Axcelis to benefit from high growth in these markets."

Executive Vice President and Chief Financial Officer Kevin Brewer said, "We are pleased with our first quarter 2023 financial results and are excited about the increased 2023 revenue expectation of greater than $1.03 billion, representing year over year growth of over 12%."

Business Outlook
For the second quarter ending June 30, 2023, Axcelis expects revenues between $255-260 million. Gross margin in the second quarter is expected to be approximately 42%. Second quarter operating profit is forecast to be approximately $55 million with earnings per diluted share between $1.44-1.48. For the full year, the Company expects to achieve revenue greater than $1.03 billion. Assuming expected improvements in supply chain costs and product mix occur in the second half of the year, we would expect to achieve full year gross margins of approximately 44% as shown in the $1.03 billion model.

First Quarter 2023 Conference Call
The Company will host a call to discuss the results for the first quarter on Thursday, May 4, 2023, at 8:30 a.m. ET. The call will be available to interested listeners via an audio webcast that can be accessed through the Investors page of Axcelis' website at www.axcelis.com, or by registering as a Participant here:  https://register.vevent.com/register/BI9e785ddb05a74fc6a117a8c7f718b6ff. Webcast replays will be available for 30 days following the call.

Safe Harbor Statement
This press release and the conference call contain forward-looking statements under the Private Securities Litigation Reform Act safe harbor provisions. These statements, which include our expectations for revenues, gross margin, operating profit and other guidance for our future financial performance and spending in our industry, are based on management's current expectations and should be viewed with caution. They are subject to various risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are outside the control of the Company, including that customer decisions to place orders or our product shipments may not occur when we expect, that orders may not be converted to revenue in any particular quarter, or at all, whether demand will continue for the semiconductor equipment we produce or, if not, whether we can successfully meet changing market requirements, and whether we will be able to maintain continuity of business relationships with and purchases by major customers. Increased competitive pressure on sales and pricing, increases in material and other production costs that cannot be recouped in product pricing and instability caused by changing global economic, political or financial conditions could also cause actual results to differ materially from those in our forward-looking statements. These risks and other risk factors relating to Axcelis are described more fully in the most recent Form 10-K filed by Axcelis and in other documents filed from time to time with the Securities and Exchange Commission.

About Axcelis:

Axcelis (Nasdaq: ACLS), headquartered in Beverly, Mass., has been providing innovative, high-productivity solutions for the semiconductor industry for over 45 years. Axcelis is dedicated to developing enabling process applications through the design, manufacture and complete life cycle support of ion implantation systems, one of the most critical and enabling steps in the IC manufacturing process. Learn more about Axcelis at www.axcelis.com.

Company Contacts

Investor Relations:
Doug Lawson
978.787.9552

Editorial/Media:
Maureen Hart
978.787.4266

 

Axcelis Technologies, Inc.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)




Three months ended




March 31,




2023

2022

Revenue:






Product

$

246,007

$

196,531

Services

8,013

7,064

Total revenue

254,020

203,595

Cost of revenue:






Product

142,771

107,642

Services

7,230

6,187

Total cost of revenue

150,001

113,829

Gross profit

104,019

89,766

Operating expenses:






Research and development

23,773

16,973

Sales and marketing

14,144

11,291

General and administrative

14,745

12,579

Total operating expenses

52,662

40,843

Income from operations

51,357

48,923

Other income (expense):






Interest income

3,936

95

Interest expense

(1,353)

(1,518)

Other, net

(1,038)

(1,617)

Total other income (expense)

1,545

(3,040)

Income before income taxes

52,902

45,883

Income tax provision

5,205

4,269

Net income

$

47,697

$

41,614

Net income per share:






Basic

$

1.46

$

1.25

Diluted

$

1.43

$

1.22

Shares used in computing net income per share:






Basic weighted average common shares

32,744

33,245

Diluted weighted average common shares

33,293

33,974

 

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)




March 31,


December 31,




2023

2022

ASSETS

Current assets:






Cash and cash equivalents

$

164,479

$

185,595

Short-term investments

280,220

246,571

Accounts receivable, net

189,597

169,773

Inventories, net

262,054

242,406

Prepaid expenses and other current assets

38,092

33,300

Total current assets

934,442

877,645

Property, plant and equipment, net

40,970

39,664

Operating lease assets

10,660

12,146

Finance lease assets, net

17,623

17,942

Long-term restricted cash

6,653

752

Deferred income taxes

35,428

31,701

Other assets

34,050

33,791

Total assets

$

1,079,826

$

1,013,641

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:






Accounts payable

$

60,473

$

62,346

Accrued compensation

14,180

35,540

Warranty

9,599

8,299

Income taxes

13,183

4,304

Deferred revenue

156,876

123,471

Current portion of finance lease obligation

1,297

1,229

Other current liabilities

12,334

12,943

Total current liabilities

267,942

248,132

Long-term finance lease obligation

44,831

45,185

Long-term deferred revenue

44,849

31,306

Other long-term liabilities

20,383

21,762

Total liabilities

378,005

346,385








Stockholders' equity:






Common stock, $0.001 par value, 75,000 shares authorized; 32,726 shares issued and
outstanding at March 31, 2023; 32,775 shares issued and outstanding at December 31, 2022

33

33

Additional paid-in capital

547,692

550,299

Retained earnings

156,014

118,892

Accumulated other comprehensive loss

(1,918)

(1,968)

Total stockholders' equity

701,821

667,256

Total liabilities and stockholders' equity

$

1,079,826

$

1,013,641








 

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SOURCE Axcelis Technologies, Inc.