Axcelis Announces Financial Results for First Quarter 2024

May 1, 2024 at 4:01 PM EDT

Revenue, Gross Margin and EPS Beat Guidance 

BEVERLY, Mass., May 1, 2024 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the first quarter ended March 31, 2024.

The Company reported first quarter revenue of $252.4 million, compared to $310.3 million for the fourth quarter of 2023. Gross margin for the quarter was 46%, compared to 44.4% in the fourth quarter. Operating profit for the quarter was $56.5 million, compared to $79.1 million for the fourth quarter. Net income for the quarter was $51.6 million, or $1.57 per diluted share, compared to $71.1 million, or $2.15 per diluted share in the fourth quarter.

President and CEO Russell Low commented, "Axcelis is off to a good start in 2024. The Company delivered strong financial results in the first quarter, as a result of continued execution by the Axcelis team combined with strength in the implant intensive power device segment and robust shipments to China. The power device segment, particularly silicon carbide, continues to drive our business. We continue to win business from new customers globally as well as expand our product footprint with existing customers, with our highly differentiated and enabling Purion™ Power Series product line."

Executive Vice President and Chief Financial Officer Jamie Coogan said, "We are pleased with our first quarter results and look forward to a solid 2024. Our revenue, gross margin and earnings per share finished above our guidance for the period, and we ended the quarter with robust cash flow and a strong balance sheet. We are monitoring the recovery in our memory and general mature markets and continue to expect revenue levels in the second half to increase over our anticipated revenues in the first half of the year."

Business Outlook
For the second quarter ending June 30, 2024, Axcelis expects revenues of approximately $245 million. Gross margin in the second quarter is expected to be approximately 43.5%, as we anticipate closing several evaluations in the period, which typically carry lower gross margins. For the full year we expect gross margins to improve year over year. Second quarter operating profit is forecast to be approximately $47 million with earnings per diluted share of around $1.30.

First Quarter 2024 Conference Call
The Company will host a call to discuss the results for the first quarter 2024 on Thursday, May 2, 2024, 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/BI3597bb3b60b345b3a930f23a61948ca3. 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 spending in our industry and guidance for future financial performance, 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,




2024

2023

Revenue:






Product

$

243,418

$

246,007

Services

8,954

8,013

Total revenue

252,372

254,020

Cost of revenue:






Product

127,912

142,771

Services

8,409

7,230

Total cost of revenue

136,321

150,001

Gross profit

116,051

104,019

Operating expenses:






Research and development

25,662

23,773

Sales and marketing

17,445

14,144

General and administrative

16,405

14,745

Total operating expenses

59,512

52,662

Income from operations

56,539

51,357

Other income (expense):






Interest income

5,516

3,936

Interest expense

(1,346)

(1,353)

Other, net

(1,710)

(1,038)

Total other income

2,460

1,545

Income before income taxes

58,999

52,902

Income tax provision

7,404

5,205

Net income

$

51,595

$

47,697

Net income per share:






Basic

$

1.58

$

1.46

Diluted

$

1.57

$

1.43

Shares used in computing net income per share:






Basic weighted average shares of common stock

32,638

32,744

Diluted weighted average shares of common stock

32,926

33,293

 

Axcelis Technologies, Inc.
Consolidated Balance Sheets
(In thousands, except per share amounts)
(Unaudited)



March 31,


December 31,




2024

2023

ASSETS

Current assets:






Cash and cash equivalents

$

133,963

$

167,297

Short-term investments

396,228

338,851

Accounts receivable, net

208,544

217,964

Inventories, net

312,170

306,482

Prepaid expenses and other current assets

54,544

49,397

Total current assets

1,105,449

1,079,991

Property, plant and equipment, net

53,032

53,971

Operating lease assets

29,557

30,716

Finance lease assets, net

16,310

16,632

Long-term restricted cash

6,652

6,654

Deferred income taxes

54,525

53,428

Other assets

41,094

40,575

Total assets

$

1,306,619

$

1,281,967

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:






Accounts payable

$

39,853

$

54,400

Accrued compensation

16,413

31,445

Warranty

14,355

14,098

Income taxes

26,850

6,164

Deferred revenue

164,700

164,677

Current portion of finance lease obligation

1,503

1,511

Other current liabilities

12,894

12,834

Total current liabilities

276,568

285,129

Long-term finance lease obligation

43,328

43,674

Long-term deferred revenue

43,718

46,208

Other long-term liabilities

41,262

42,074

Total liabilities

404,876

417,085

Commitments and contingencies








Stockholders' equity:






Common stock, $0.001 par value, 75,000 shares authorized; 32,605 shares issued and
outstanding at March 31, 2024; 32,685 shares issued and outstanding at December 31, 2023

33

33

Additional paid-in capital

546,979

547,189

Retained earnings

358,303

319,506

Accumulated other comprehensive loss

(3,572)

(1,846)

Total stockholders' equity

901,743

864,882

Total liabilities and stockholders' equity

$

1,306,619

$

1,281,967

 

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SOURCE Axcelis Technologies, Inc.