AXCELIS ANNOUNCES FINANCIAL RESULTS FOR THIRD QUARTER 2022

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Nov 02, 2022, 16:01 ET

System Backlog Continues to Hit Record Levels

BEVERLY, Mass., Nov. 2, 2022 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the third quarter of 2022.

Highlights for the third quarter are as follows:

Revenue for the quarter was $229.2 million, compared to $221.2 million for the second quarter of 2022.
Operating profit for the quarter was $53.2 million, compared to $54.1 million for the second quarter.
Net income for the quarter was $40.3 million, or $1.21 per diluted share, compared to $44.2 million, or $1.32 per diluted share in the second quarter.
Gross margin for the quarter was 45.1%, compared to 44.8% in the second quarter.
Record systems backlog of $1.1 billion and bookings of $337.1 million in the third quarter.
Cash, cash equivalents and short-term investments were $342.1 million on September 30, 2022, compared to $287.2 million on June 30, 2022. This is net of $12.5 million of repurchased shares in the third quarter.

President and CEO Mary Puma commented, "We are pleased that Axcelis delivered strong third quarter financial performance well above our guidance, due to robust demand for our Purion products and strong execution by the Axcelis team. Axcelis is well positioned for growth in 2023, driven by continued strength in the highly implant intensive power market."

Business Outlook
For the fourth quarter ending December 31, 2022, Axcelis expects revenues of $232-240 million. Gross margin in the fourth quarter is expected to be approximately 40-41%. Fourth quarter operating profit is forecast to be between $41-45 million with earnings per diluted share of $1.00-1.10. For the full year, the Company expects to achieve revenue of greater than $885 million with gross margins of greater than 43%.

Third Quarter 2022 Conference Call
The Company will host a call to discuss the results for the third quarter of 2022 on Thursday, November 3, 2022, 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/BI9be1e3f05ec14c00a451864e1872d4f5. 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 40 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,
	2022		2021		2022		2021
Revenue:
Product	$	221,540	$	169,151	$	631,998	$	435,916
Services		7,635		7,543		21,949		20,828
Total revenue		229,175		176,694		653,947		456,744
Cost of revenue:
Product		118,992		93,201		342,387		240,223
Services		6,862		6,981		19,291		19,560
Total cost of revenue		125,854		100,182		361,678		259,783
Gross profit		103,321		76,512		292,269		196,961
Operating expenses:
Research and development		20,563		16,707		56,267		49,015
Sales and marketing		14,573		11,415		38,567		33,979
General and administrative		14,983		11,996		41,163		33,226
Total operating expenses		50,119		40,118		135,997		116,220
Income from operations		53,202		36,394		156,272		80,741
Other (expense) income:
Interest income		1,111		51		1,558		124
Interest expense		(1,333)		(1,269)		(4,101)		(3,572)
Other, net		(7,971)		(963)		(14,640)		(2,131)
Total other expense		(8,193)		(2,181)		(17,183)		(5,579)
Income before income taxes		45,009		34,213		139,089		75,162
Income tax provision		4,726		6,698		13,002		12,261
Net income	$	40,283	$	27,515	$	126,087	$	62,901
Net income per share:
Basic	$	1.22	$	0.82	$	3.81	$	1.87
Diluted	$	1.21	$	0.81	$	3.75	$	1.83
Shares used in computing net income per share:
Basic weighted average common shares		33,011		33,537		33,116		33,643
Diluted weighted average common shares		33,389		34,089		33,638		34,339


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

	September 30,		December 31,
	2022		2021
ASSETS
Current assets:
Cash and cash equivalents	$	308,552	$	294,923
Short-term investments		33,576		—
Accounts receivable, net		173,893		104,410
Inventories, net		226,507		194,984
Prepaid expenses and other current assets		32,614		24,929
Total current assets		775,142		619,246
Property, plant and equipment, net		38,778		34,972
Operating lease assets		11,893		9,242
Finance lease assets, net		18,265		19,238
Long-term restricted cash		749		757
Deferred income taxes		28,372		35,454
Other assets		33,062		34,331
Total assets	$	906,261	$	753,240
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	54,020	$	38,025
Accrued compensation		28,557		30,732
Warranty		8,482		6,424
Income taxes		540		887
Deferred revenue		101,169		60,454
Current portion of finance lease obligation		1,164		979
Other current liabilities		13,924		12,639
Total current liabilities		207,856		150,140
Long-term finance lease obligation		45,508		46,415
Long-term deferred revenue		21,420		7,982
Other long-term liabilities		16,587		9,744
Total liabilities		291,371		214,281

Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 32,937 shares issued and outstanding at September 30, 2022; 33,240 shares issued and outstanding at December 31, 2021		33		33
Additional paid-in capital		549,735		559,883
Retained earnings (accumulated deficit)		70,893		(22,722)
Accumulated other comprehensive (loss) income		(5,771)		1,765
Total stockholders' equity		614,890		538,959
Total liabilities and stockholders' equity	$	906,261	$	753,240