Axcelis Announces Financial Results for Second Quarter 2023

August 2, 2023 at 4:01 PM EDT

Financial Results Exceed Guidance Driven by Strong Purion Demand and Strength in Power Devices

BEVERLY, Mass., Aug. 2, 2023 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the second quarter of 2023.

Highlights include:

  • The Company reported second quarter revenue of $274.0 million, compared to $254.0 million for the first quarter of 2023.
  • Operating profit for the quarter was $63.7 million, compared to $51.4 million for the first quarter.
  • Net income for the quarter was $61.6 million, or $1.86 per diluted share, compared to $47.7 million, or $1.43 per diluted share in the first quarter.
  • Gross margin for the quarter was 43.7%, compared to 40.9% in the first quarter.
  • Second quarter ended with systems backlog of $1.23 billion on quarterly bookings of $193 million.
Financial Results Exceed Guidance Driven by Strong Purion Demand and Strength in Power Devices

President and CEO Russell Low commented, "Axcelis delivered strong second quarter financial performance as a result of significant demand for the Purion product family, especially in the silicon carbide power market. Axcelis is the only company with a product line capable of covering all implant recipes in the mature process technology markets. We now believe it is possible to achieve $1.3 billion in revenue in the next one or two years, depending on market conditions."

Executive Vice President and Chief Financial Officer Kevin Brewer said, "We are very pleased with our second quarter 2023 financial results which finished well above guidance due to solid execution and continuing strong demand for Purion. We are upwardly revising expectations for 2023 revenue to greater than $1.1 billion, representing year over year growth of approximately 20%."

Business Outlook
For the third quarter ending September 30, 2023, Axcelis expects revenues of approximately $280 million. Gross margin in the third quarter is expected to be approximately 44%. Third quarter operating profit is forecast to be approximately $64 million with earnings per diluted share of approximately $1.72. For the full year, the Company expects to achieve revenue greater than $1.1 billion and to achieve full year gross margins of approximately 44% as shown in the $1.1 billion model.

Second Quarter 2023 Conference Call
The Company will host a call to discuss the results for the second quarter on Thursday, August 3, 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/BI9757e7e7d17f4188872f4146e314ba26. 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 


Six months ended





June 30,


June 30,




2023

2022

2023

2022

Revenue:












Product

$

265,673

$

213,926

$

511,680

$

410,458

Services

8,297

7,251

16,310

14,314

Total revenue

273,970

221,177

527,990

424,772

Cost of revenue:












Product

146,741

115,754

289,512

223,395

Services

7,526

6,242

14,756

12,429

Total cost of revenue

154,267

121,996

304,268

235,824

Gross profit

119,703

99,181

223,722

188,948

Operating expenses:












Research and development

24,130

18,731

47,903

35,704

Sales and marketing

15,537

12,703

29,681

23,994

General and administrative

16,328

13,602

31,073

26,180

Total operating expenses

55,995

45,036

108,657

85,878

Income from operations

63,708

54,145

115,065

103,070

Other income (expense):












Interest income

4,307

352

8,243

447

Interest expense

(1,349)

(1,250)

(2,702)

(2,768)

Other, net

(2,050)

(5,051)

(3,088)

(6,669)

Total other income (expense)

908

(5,949)

2,453

(8,990)

Income before income taxes

64,616

48,196

117,518

94,080

Income tax provision

3,037

4,007

8,242

8,276

Net income

$

61,579

$

44,189

$

109,276

$

85,804

Net income per share:












Basic

$

1.88

$

1.34

$

3.34

$

2.59

Diluted

$

1.86

$

1.32

$

3.29

$

2.54

Shares used in computing net income per share:












Basic weighted average shares of common stock

32,775

33,096

32,759

33,170

Diluted weighted average shares of common stock

33,189

33,562

33,237

33,770

 

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)










June 30,


December 31,




2023

2022

ASSETS

Current assets:






Cash and cash equivalents

$

132,504

$

185,595

Short-term investments

320,360

246,571

Accounts receivable, net

159,199

169,773

Inventories, net

299,841

242,406

Prepaid expenses and other current assets

38,265

33,300

Total current assets

950,169

877,645

Property, plant and equipment, net

43,156

39,664

Operating lease assets

31,998

12,146

Finance lease assets, net

17,305

17,942

Long-term restricted cash

6,652

752

Deferred income taxes

38,944

31,701

Other assets

33,494

33,791

Total assets

$

1,121,718

$

1,013,641

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:






Accounts payable

$

60,504

$

62,346

Accrued compensation

17,216

35,540

Warranty

10,867

8,299

Income taxes

6,598

4,304

Deferred revenue

138,890

123,471

Current portion of finance lease obligation

1,367

1,229

Other current liabilities

13,018

12,943

Total current liabilities

248,460

248,132

Long-term finance lease obligation

44,455

45,185

Long-term deferred revenue

43,650

31,306

Other long-term liabilities

41,116

21,762

Total liabilities

377,681

346,385








Stockholders' equity:






Common stock, $0.001 par value, 75,000 shares authorized; 32,836 shares issued and
outstanding at June 30, 2023; 32,775 shares issued and outstanding at December 31, 2022

33

33

Additional paid-in capital

540,120

550,299

Retained earnings

206,813

118,892

Accumulated other comprehensive loss

(2,929)

(1,968)

Total stockholders' equity

744,037

667,256

Total liabilities and stockholders' equity

$

1,121,718

$

1,013,641








 

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SOURCE Axcelis Technologies, Inc.