Axcelis Announces Financial Results for Third Quarter 2023

November 1, 2023 at 4:01 PM EDT

Financial Results Continue to be Driven by Strong Purion Demand in the Global Silicon Carbide Power Device Market

BEVERLY, Mass., Nov. 1, 2023 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the third quarter of 2023.

Highlights include:

  • The Company reported third quarter revenue of $292.3 million, compared to $274.0 million for the second quarter of 2023.
  • Operating profit for the quarter was $71.7 million, compared to $63.7 million for the second quarter.
  • Net income for the quarter was $65.9 million, or $1.99 per diluted share, compared to $61.6 million, or $1.86 per diluted share in the second quarter.
  • Gross margin for the quarter was 44.4%, compared to 43.7% in the second quarter.
  • Third quarter ended with systems backlog of $1.2 billion on quarterly bookings of $198 million.

President and CEO Russell Low commented, "Axcelis delivered strong third quarter financial performance due to robust demand for the Purion product family, especially in the silicon carbide power market. Axcelis is the only company with a product line that can deliver complete recipe coverage for all power device applications. We are the technology leader and the supplier of choice providing the best device manufacturing capabilities. This uniquely positions Axcelis to benefit from high growth in this market. Axcelis expects to achieve revenue of greater than $1.1 billion in 2023."

Executive Vice President and Chief Financial Officer James Coogan said, "We are very pleased with our third quarter 2023 financial results. Revenue, EPS and gross margins all finished well above guidance. Axcelis has had the rare opportunity to grow revenue 20% year over year as well as improve profitability during a significant industry downturn. This is a result of strong product positioning and continued strong execution in a challenging environment."

Business Outlook
For the fourth quarter ending December 31, 2023, Axcelis expects revenues of approximately $295 million. Gross margin in the fourth quarter is expected to be approximately 45%. Fourth quarter operating profit is forecast to be approximately $73 million with earnings per diluted share of approximately $2.00. For the full year, the Company expects to achieve revenue of greater than $1.1 billion and to achieve full year gross margins of approximately 43.6% as shown in the $1.1 billion model.

Third Quarter 2023 Conference Call
The Company will host a call to discuss the results for the third quarter on Thursday, November 2, 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/BI1a199f2035664eafaa3226da79b560e5. 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 


Nine months ended





September 30,


September 30,




2023

2022

2023

2022

Revenue:












Product

$

283,367

$

221,540

$

795,047

$

631,998

Services

8,959

7,635

25,269

21,949

Total revenue

292,326

229,175

820,316

653,947

Cost of revenue:












Product

154,798

118,992

444,311

342,387

Services

7,844

6,862

22,600

19,291

Total cost of revenue

162,642

125,854

466,911

361,678

Gross profit

129,684

103,321

353,405

292,269

Operating expenses:












Research and development

24,093

20,563

71,996

56,267

Sales and marketing

16,465

14,573

46,146

38,567

General and administrative

17,446

14,983

48,519

41,163

Total operating expenses

58,004

50,119

166,661

135,997

Income from operations

71,680

53,202

186,744

156,272

Other income (expense):












Interest income

4,580

1,111

12,824

1,558

Interest expense

(1,325)

(1,333)

(4,027)

(4,101)

Other, net

(1,260)

(7,971)

(4,348)

(14,640)

Total other income (expense)

1,995

(8,193)

4,449

(17,183)

Income before income taxes

73,675

45,009

191,193

139,089

Income tax provision

7,744

4,726

15,986

13,002

Net income

$

65,931

$

40,283

$

175,207

$

126,087

Net income per share:












Basic

$

2.01

$

1.22

$

5.35

$

3.81

Diluted

$

1.99

$

1.21

$

5.28

$

3.75

Shares used in computing net income per share:












Basic weighted average shares of common stock

32,807

33,011

32,775

33,116

Diluted weighted average shares of common stock

33,159

33,389

33,208

33,638

 

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)










September 30,


December 31,




2023

2022

ASSETS

Current assets:






Cash and cash equivalents

$

142,300

$

185,595

Short-term investments

318,710

246,571

Accounts receivable, net

192,327

169,773

Inventories, net

312,223

242,406

Prepaid expenses and other current assets

49,481

33,300

Total current assets

1,015,041

877,645

Property, plant and equipment, net

47,169

39,664

Operating lease assets

31,082

12,146

Finance lease assets, net

16,981

17,942

Long-term restricted cash

6,650

752

Deferred income taxes

44,323

31,701

Other assets

40,448

33,791

Total assets

$

1,201,694

$

1,013,641

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:






Accounts payable

$

60,061

$

62,346

Accrued compensation

26,535

35,540

Warranty

11,464

8,299

Income taxes

582

4,304

Deferred revenue

148,299

123,471

Current portion of finance lease obligation

1,438

1,229

Other current liabilities

12,799

12,943

Total current liabilities

261,178

248,132

Long-term finance lease obligation

44,070

45,185

Long-term deferred revenue

53,730

31,306

Other long-term liabilities

41,745

21,762

Total liabilities

400,723

346,385








Stockholders' equity:






Common stock, $0.001 par value, 75,000 shares authorized; 32,772 shares issued and
outstanding at September 30, 2023; 32,775 shares issued and outstanding at December 31,
2022

33

33

Additional paid-in capital

543,577

550,299

Retained earnings

261,521

118,892

Accumulated other comprehensive loss

(4,160)

(1,968)

Total stockholders' equity

800,971

667,256

Total liabilities and stockholders' equity

$

1,201,694

$

1,013,641








 

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SOURCE Axcelis Technologies, Inc.