Axcelis Announces Financial Results for First Quarter 2024

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May 01, 2024, 16:01 ET

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