Axcelis Announces Financial Results for Fourth Quarter and Full Year 2023

February 7, 2024 at 4:01 PM EST

Record Revenue for 2023, Achieving Year-Over-Year Growth of 23%

BEVERLY, Mass., Feb. 7, 2024 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the fourth quarter and full year ended December 31, 2023.

Highlights include:

  • Record full year revenue, operating profit and EPS, enabling the Company to surpass its $1.1 billion revenue model.
  • Continued strong growth from the Purion Power Series™ product line.
  • Significant increase in Purion™ installed base drove record CS&I revenue.
  • Year-end systems backlog of $1.2 billion.

For the full year 2023, the Company reported revenue of $1.13 billion, compared with $920 million for the full year 2022, an increase of 23% and a company record. Systems revenue for the year was $883.6 million, compared to $692.1 million in 2022, an increase of 28%, also a company record. Operating profit was $265.8 million in 2023, compared to $212.4 million in 2022, a 25% increase and a company record. Net income for the year was $246.3 million with diluted earnings per share of $7.43, compared to net income of $183.1 million and diluted earnings per share of $5.46 in 2022, resulting in a 35% net income year over year increase. Gross margin for the year was 43.5%, compared to 43.7% in 2022.

The Company reported fourth quarter revenue of $310.3 million, compared to $292.3 million for the third quarter of 2023. Operating profit for the quarter was $79.1 million, compared to $71.7 million for the third quarter. Net income for the quarter was $71.1 million, or $2.15 per diluted share, compared to $65.9 million, or $1.99 per diluted share in the third quarter. Gross margin for the quarter was 44.4%, unchanged from the third quarter. The fourth quarter ended with bookings of $235.5 million and a systems backlog of $1.2 billion.

President and CEO Russell Low commented, "2023 was another outstanding year for Axcelis. As a result of strong execution by the Axcelis team and robust demand for the Purion Power Series product family, we achieved 23% year-over-year revenue growth during an industry downturn. We have developed a large and diverse customer base in the power market, and we continue to win business from new customers as well as expand our product footprint with existing customers. We believe that the mature process technology and memory segments, two markets in which Axcelis is well-positioned, will recover in the second half of the year, enabling strong growth in 2025."

Executive Vice President and Chief Financial Officer Jamie Coogan said, "We are extremely pleased with our 2023 results, and excited about our future growth. Our revenue and earnings per share finished above our revised guidance, and we ended the quarter with robust cash flow and a strong balance sheet. As we look to 2024, we will continue to make investments in R&D while managing expenses, setting us up to achieve our $1.3 billion revenue model in 2025."

Business Outlook
For the first quarter ending March 31, 2024, Axcelis expects revenues of approximately $242 million. First quarter operating profit is forecast to be approximately $45 million with earnings per diluted share of around $1.22. Gross margin in the first quarter is expected to be approximately 43.5%, and for the full year we expect it to improve year over year but could fluctuate quarter to quarter. We expect full year 2024 revenue to be similar to 2023, with revenue weighted toward the second half.

Fourth Quarter and Full Year 2023 Conference Call
The Company will release financial results for the fourth quarter and full year 2023 on Wednesday, February 7, 2024, at 4:00 p.m. Eastern Time (ET). The Company will host a call to discuss the results for the fourth quarter and full year 2023 on Thursday, February 8, 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/BI430db415064f4a1abe28d7f87ebcf2d2. 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 

 

Twelve months ended

 
     

December 31,

 

December 31,

 
   

2023

  

2022

  

2023

  

2022

  

Revenue:

                          

Product

  

$

300,603

  

$

258,584

  

$

1,095,650

  

$

890,582

  

Services

    

9,685

    

7,467

    

34,954

    

29,416

  

Total revenue

    

310,288

    

266,051

    

1,130,604

    

919,998

  

Cost of revenue:

                          

Product

    

163,801

    

149,717

    

608,112

    

492,104

  

Services

    

8,591

    

6,813

    

31,191

    

26,104

  

Total cost of revenue

    

172,392

    

156,530

    

639,303

    

518,208

  

Gross profit

    

137,896

    

109,521

    

491,301

    

401,790

  

Operating expenses:

                          

Research and development

    

24,911

    

22,089

    

96,907

    

78,356

  

Sales and marketing

    

16,659

    

15,032

    

62,805

    

53,599

  

General and administrative

    

17,275

    

16,311

    

65,794

    

57,474

  

Total operating expenses

    

58,845

    

53,432

    

225,506

    

189,429

  

Income from operations

    

79,051

    

56,089

    

265,795

    

212,361

  

Other income (expense):

                          

Interest income

    

5,375

    

2,993

    

18,199

    

4,551

  

Interest expense

    

(1,320)

    

(1,475)

    

(5,347)

    

(5,576)

  

Other, net

    

4,300

    

8,189

    

(48)

    

(6,451)

  

Total other income (expense)

    

8,355

    

9,707

    

12,804

    

(7,476)

  

Income before income taxes

    

87,406

    

65,796

    

278,599

    

204,885

  

Income tax provision

    

16,350

    

8,804

    

32,336

    

21,806

  

Net income

  

$

71,056

  

$

56,992

  

$

246,263

  

$

183,079

  

Net income per share:

                          

Basic

  

$

2.17

  

$

1.74

  

$

7.52

  

$

5.54

  

Diluted

  

$

2.15

  

$

1.71

  

$

7.43

  

$

5.46

  

Shares used in computing net income per share:

                          

Basic weighted average shares of common stock

    

32,708

    

32,823

    

32,758

    

33,043

  

Diluted weighted average shares of common stock

    

33,031

    

33,262

    

33,165

    

33,542

  

 

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

December 31,

 

December 31,

 
   

2023

  

2022

  

ASSETS

  

Current assets:

              

Cash and cash equivalents

  

$

167,297

  

$

185,595

  

Short-term investments

    

338,851

    

246,571

  

Accounts receivable, net

    

217,964

    

169,773

  

Inventories, net

    

306,482

    

242,406

  

Prepaid expenses and other current assets

    

49,397

    

33,300

  

Total current assets

    

1,079,991

    

877,645

  

Property, plant and equipment, net

    

53,971

    

39,664

  

Operating lease assets

    

30,716

    

12,146

  

Finance lease assets, net

    

16,632

    

17,942

  

Long-term restricted cash

    

6,654

    

752

  

Deferred income taxes

    

53,428

    

31,701

  

Other assets

    

40,575

    

33,791

  

Total assets

  

$

1,281,967

  

$

1,013,641

  

LIABILITIES AND STOCKHOLDERS' EQUITY

  

Current liabilities:

              

Accounts payable

  

$

54,400

  

$

62,346

  

Accrued compensation

    

31,445

    

35,540

  

Warranty

    

14,098

    

8,299

  

Income taxes

    

6,164

    

4,304

  

Deferred revenue

    

164,677

    

123,471

  

Current portion of finance lease obligation

    

1,511

    

1,229

  

Other current liabilities

    

12,834

    

12,943

  

Total current liabilities

    

285,129

    

248,132

  

Long-term finance lease obligation

    

43,674

    

45,185

  

Long-term deferred revenue

    

46,208

    

31,306

  

Other long-term liabilities

    

42,074

    

21,762

  

Total liabilities

    

417,085

    

346,385

  
               

Stockholders' equity:

              

Common stock, $0.001 par value, 75,000 shares authorized; 32,685 shares issued
and outstanding at December 31, 2023; 32,775 shares issued and outstanding at December 31, 2022

    

33

    

33

  

Additional paid-in capital

    

547,189

    

550,299

  

Retained earnings

    

319,506

    

118,892

  

Accumulated other comprehensive loss

    

(1,846)

    

(1,968)

  

Total stockholders' equity

    

864,882

    

667,256

  

Total liabilities and stockholders' equity

  

$

1,281,967

  

$

1,013,641

  

 

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SOURCE Axcelis Technologies, Inc.