Axcelis Announces Financial Results for Fourth Quarter and Full Year 2024

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Feb 10, 2025, 16:01 ET

Q4 Highlights:

Revenue of $252.4 million
Operating Margin of 21.6%
Diluted earnings per share of $1.54

BEVERLY, Mass., Feb. 10, 2025 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the fourth quarter and full year ended December 31, 2024.

For the full year 2024, the Company reported revenue of $1.02 billion, compared with $1.13 billion for the full year 2023. Systems revenue for the year was $782.6 million, compared to $883.6 million in 2023. Operating profit was $210.8 million in 2024, compared to $265.8 million in 2023. Net income for the year was $201 million with diluted earnings per share of $6.15, compared to net income of $246.3 million and diluted earnings per share of $7.43 in 2023. Gross margin for the year was 44.7%, compared to 43.5% in 2023.

The Company reported fourth quarter revenue of $252.4 million, compared to $256.6 million for the third quarter of 2024. Gross margin for the quarter was 46.0%, compared to 42.9% in the third quarter. Operating profit for the quarter was $54.5 million, compared to $46.9 million for the third quarter. Net income for the quarter was $50 million, or $1.54 per diluted share, compared to $48.6 million, or $1.49 per diluted share in the third quarter.

President and CEO Russell Low commented, "Axcelis exited the year on a strong note, with fourth quarter revenue and profitability exceeding our expectations. As we look ahead to 2025, we anticipate a near term cyclical digestion period, as customers absorb the robust investments they've made into mature node capacity over the past few years – particularly in China. We are focused on capturing the long-term growth opportunities that lie ahead by investing in product innovation, managing our costs, and working closely with customers on their technology roadmaps – all of which will put us in an even stronger position for the next upturn."

Executive Vice President and Chief Financial Officer Jamie Coogan said, "We are pleased with our financial execution in 2024. Despite a decline in revenue, we were able to deliver higher gross margins, generate solid free cash flow, return capital to shareholders via buyback, and exit the year with a stronger balance sheet that allows us to invest during this cyclical digestion period and drive long term value creation."

Business Outlook
For the first quarter ending March 31, 2025, Axcelis expects revenues of approximately $185 million, and earnings per diluted share of approximately $0.38.

Fourth Quarter and Full Year 2024 Conference Call
The Company will host a call to discuss the results for the fourth quarter and full year 2024 on Tuesday, February 11, 2025, at 8:30 a.m. ET. The call will be available via 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/BIb4b94bbc1cf744869eeb20b9a9be88a7
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.

CONTACTS:

Investor Relations Contact:
David Ryzhik
Senior Vice President, Investor Relations and Corporate Strategy
Telephone: (978) 787-2352
Email: [email protected]

Press/Media Relations Contact: 
Maureen Hart
Senior Director, Corporate & Marketing Communications
Telephone: (978) 787-4266
Email: [email protected]

Axcelis Technologies, Inc. Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited)

	Three months ended				Twelve months ended
		December 31,			December 31,
	2024		2023		2024		2023
Revenue:
Product	$	241,254	$	300,603	$	976,881	$	1,095,650
Services		11,163		9,685		40,984		34,954
Total revenue		252,417		310,288		1,017,865		1,130,604
Cost of revenue:
Product		125,402		163,801		524,451		608,112
Services		10,792		8,591		38,760		31,191
Total cost of revenue		136,194		172,392		563,211		639,303
Gross profit		116,223		137,896		454,654		491,301
Operating expenses:
Research and development		27,654		24,911		105,497		96, 907
Sales and marketing		16,563		16,659		68,046		62,805
General and administrative		17,475		17,275		70,317		65,794
Total operating expenses		61,692		58,845		243,860		225,506
Income from operations		54,531		79,051		210,794		265,795
Other income (expense):
Interest income		6,277		5,375		24,403		18,199
Interest expense		(1,444)		(1,320)		(5,462)		(5,347)
Other, net		(719)		4,300		539		(48)
Total other income		4,114		8,355		19,480		12,804
Income before income taxes		58,645		87,406		230,274		278,599
Income tax provision		8,689		16,350		29,282		32,336
Net income	$	49,956	$	71,056	$	200,992	$	246,263
Net income per share:
Basic	$	1.54	$	2.17	$	6.17	$	7.52
Diluted	$	1.54	$	2.15	$	6.15	$	7.43
Shares used in computing net income per share:
Basic weighted average shares of common stock		32,424		32,708		32,552		32,758
Diluted weighted average shares of common stock		32,514		33,031		32,704		33,165

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

	December 31,		December 31,
	2024		2023
ASSETS
Current assets:
Cash and cash equivalents	$	123,512	$	167,297
Short-term investments		447,831		338,851
Accounts receivable, net		203,149		217,964
Inventories, net		282,225		306,482
Prepaid income taxes		6,420		—
Prepaid expenses and other current assets		60,471		49,397
Total current assets		1,123,608		1,079,991
Property, plant and equipment, net		53,784		53,971
Operating lease assets		29,621		30,716
Finance lease assets, net		15,346		16,632
Long-term restricted cash		7,552		6,654
Deferred income taxes		68,277		53,428
Other assets		50,593		40,575
Total assets	$	1,348,781	$	1,281,967
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	46,928	$	54,400
Accrued compensation		25,536		31,445
Warranty		13,022		14,098
Income taxes		—		6,164
Deferred revenue		94,673		164,677
Current portion of finance lease obligation		1,345		1,511
Other current liabilities		26,018		12,834
Total current liabilities		207,522		285,129
Long-term finance lease obligation		42,329		43,674
Long-term deferred revenue		43,501		46,208
Other long-term liabilities		42,639		42,074
Total liabilities		335,991		417,085

Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 32,365 shares issued and outstanding at December 31, 2024; 32,685 shares issued and outstanding at December 31, 2023		32		33
Additional paid-in capital		548,654		547,189
Retained earnings		470,318		319,506
Accumulated other comprehensive loss		(6,214)		(1,846)
Total stockholders' equity		1,012,790		864,882
Total liabilities and stockholders' equity	$	1,348,781	$	1,281,967

Axcelis Technologies, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)

	Three months ended					Twelve months ended
	December 31,					December 31,
	2024		2023			2024		2023
Cash flows from operating activities
Net income	$	49,956	$	71,056	$	200,992	$	246,263
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		4,267		3,581		15,809		13,069
Stock-based compensation expense		5,380		5,239		20,951		18,269
Other		(442)		(14,565)		(11,532)		(23,503)
Change in operating assets and liabilities, net		(46,381)		264		(85,402)		(97,229)
Net cash provided by operating activities		12,780		65,575		140,818		156,869

Cash flows from investing activities
Expenditures for property, plant and equipment and capitalized software		(4,658)		(10,153)		(12,181)		(20,656)
Other changes in investing activities, net		13,779		(16,526)		(96,545)		(80,202)
Net cash provided by (used in) investing activities		9,121		(26,679)		(108,726)		(100,858)

Cash flows from financing activities
Repurchase of common stock		(15,131)		(15,001)		(60,489)		(52,499)
Other changes from financing activities, net		588		(22)		(10,703)		(15,769)
Net cash used in financing activities		(14,543)		(15,023)		(71,192)		(68,268)

Effect of exchange rate changes on cash and cash equivalents		(3,013)		1,128		(3,787)		(139)
Net increase (decrease) in cash, cash equivalents and restricted cash		4,345		25,001		(42,887)		(12,396)
Cash, cash equivalents and restricted cash at end of period	$	131,064	$	173,951	$	131,064	$	173,951