Axcelis Announces Financial Results for Fourth Quarter and Full Year 2022

February 8, 2023 at 4:01 PM EST

Achieved Record Annual Revenue, Gross Margin and EPS

BEVERLY, Mass., Feb. 8, 2023 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the fourth quarter and full year ended December 31, 2022.

Highlights include:

  • Record full year revenue, gross margin and EPS, enabling the Company to surpass its $850M revenue model
  • The power device market segment accounted for 39% of our 2022 shipped systems revenue, driven by strong growth of the Purion Power Series™ product line
  • Year ending record backlog of greater than $1.1B
Axcelis Achieved Record Annual Revenue, Gross Margin and EPS 

For the full year 2022, the Company reported revenue of $920 million, compared with $662.4 million for the full year 2021, an increase of 39% and a company record. Systems revenue for the year was $692.1 million, compared to $454.6 million in 2021, an increase of 52%, also a company record. Operating profit was $212.4 million in 2022, compared to $127.3 million in 2021, a 67% increase and a company record. Net income for the year was $183.1 million with diluted earnings per share of $5.46, compared to net income of $98.7 million and diluted earnings per share of $2.88 in 2021, resulting in a 86% net income year over year increase. Gross margin for the year was 43.7%, a 50 basis point improvement compared to 43.2% in 2021 and a company record.

The Company reported fourth quarter revenue of $266.1 million, compared to $229.2 million for the third quarter of 2022. Operating profit for the quarter was $56.1 million, compared to $53.2 million for the third quarter. Net income for the quarter was $57.0 million, or $1.71 per diluted share, compared to $40.3 million, or $1.21 per diluted share in the third quarter. Gross margin for the quarter was 41.2%, compared to 45.1% in the third quarter. Fourth quarter ended with bookings of $211.5 million and record systems backlog of $1.1 billion. Cash, cash equivalents and short-term investments were $432.2 million on December 31, 2022, compared to $342.1 million on September 30, 2022. This is net of $12.5 million of repurchased shares in the fourth quarter.

President and CEO Mary Puma commented, "2022 was another outstanding year for Axcelis. As a result of strong execution by the Axcelis team and robust demand for the Purion product family, we delivered record quarterly and annual revenues, and we surpassed our $850M revenue model. For the full year 2023 Axcelis revenues are expected to exceed $1 billion dollars and we are introducing a new long-term implant only model with revenue of $1.3 billion dollars that we believe is achievable within the next 2 to 3 years."

Executive Vice President and Chief Financial Officer Kevin Brewer said, "We are extremely pleased with our 2022 results, and very excited about our projected growth. As a result of the success of Purion and tight control of our cost structure, Axcelis' profitability has improved significantly and we expect further gains in 2023 and beyond."

Business Outlook
For the first quarter ending March 31, 2023, Axcelis expects revenues of approximately $240 million. Gross margin in the first quarter is expected to be approximately 41.5%. First quarter operating profit is forecast to be approximately $48 million with earnings per diluted share of around $1.25. For the full year, the Company expects to achieve revenue of greater than $1 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 $1B model.   

Fourth Quarter and Full Year 2022 Conference Call
The Company will host a call to discuss the results for the fourth quarter and full year 2022 on Thursday, February 9, 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/BI2c9198cd02354e0fb92ddec100489c61. 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 40 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 


Twelve months ended





December 31,


December 31,




2022

2021

2022

2021

Revenue:












Product

$

258,584

$

198,529

$

890,582

$

634,445

Services

7,467

7,155

29,416

27,983

Total revenue

266,051

205,684

919,998

662,428

Cost of revenue:












Product

149,717

109,335

492,104

349,558

Services

6,813

6,865

26,104

26,425

Total cost of revenue

156,530

116,200

518,208

375,983

Gross profit

109,521

89,484

401,790

286,445

Operating expenses:












Research and development

22,089

16,416

78,356

65,431

Sales and marketing

15,032

13,569

53,599

47,548

General and administrative

16,311

12,915

57,474

46,141

Total operating expenses

53,432

42,900

189,429

159,120

Income from operations

56,089

46,584

212,361

127,325

Other income (expense):












Interest income

2,993

85

4,551

209

Interest expense

(1,475)

(1,263)

(5,576)

(4,835)

Other, net

8,189

(140)

(6,451)

(2,271)

Total other income (expense)

9,707

(1,318)

(7,476)

(6,897)

Income before income taxes

65,796

45,266

204,885

120,428

Income tax provision

8,804

9,517

21,806

21,778

Net income

$

56,992

$

35,749

$

183,079

$

98,650

Net income per share:












Basic

$

1.74

$

1.07

$

5.54

$

2.94

Diluted

$

1.71

$

1.05

$

5.46

$

2.88

Shares used in computing net income per share:












Basic weighted average common shares

32,823

33,295

33,043

33,555

Diluted weighted average common shares

33,262

34,011

33,542

34,268

 

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)










December 31,


December 31,




2022

2021

ASSETS

Current assets:






Cash and cash equivalents

$

185,595

$

294,923

Short-term investments

246,571

—

Accounts receivable, net

169,773

104,410

Inventories, net

242,406

194,984

Prepaid expenses and other current assets

33,300

24,929

Total current assets

877,645

619,246

Property, plant and equipment, net

39,664

34,972

Operating lease assets

12,146

9,242

Finance lease assets, net

17,942

19,238

Long-term restricted cash

752

757

Deferred income taxes

31,701

35,454

Other assets

33,791

34,331

Total assets

$

1,013,641

$

753,240

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:






Accounts payable

$

62,346

$

38,025

Accrued compensation

35,540

30,732

Warranty

8,299

6,424

Income taxes

4,304

887

Deferred revenue

123,471

60,454

Current portion of finance lease obligation

1,229

979

Other current liabilities

12,943

12,639

Total current liabilities

248,132

150,140

Long-term finance lease obligation

45,185

46,415

Long-term deferred revenue

31,306

7,982

Other long-term liabilities

21,762

9,744

Total liabilities

346,385

214,281








Stockholders' equity:






Common stock, $0.001 par value, 75,000 shares authorized; 32,775 shares issued and
outstanding at December 31, 2022; 33,240 shares issued and outstanding at December 31, 2021

33

33

Additional paid-in capital

550,299

559,883

Retained earnings (accumulated deficit)

118,892

(22,722)

Accumulated other comprehensive (loss) income

(1,968)

1,765

Total stockholders' equity

667,256

538,959

Total liabilities and stockholders' equity

$

1,013,641

$

753,240








 

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SOURCE Axcelis Technologies, Inc.