Axcelis Announces Financial Results for Third Quarter 2024

Nov 06 2024 21:01 GMT

Revenue of $256.6 million
Operating margin of 18.3%
Diluted earnings per share of $1.49

BEVERLY, Mass. , Nov. 6, 2024 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the third quarter ended September 30, 2024. The Company reported third quarter revenue of $256.6 million, compared to $256.5 million for the second quarter of 2024. Gross margin for the quarter was 42.9%, compared to 43.8% in the second quarter. Operating profit for the quarter was $46.9 million, compared to $52.8 million for the second quarter. Net income for the quarter was $48.6 million, or $1.49 per diluted share, compared to $50.9 million, or $1.55 per diluted share in the second quarter.

President and CEO Russell Low commented, "Axcelis executed well in the third quarter with results relatively in-line with our expectations. While we anticipate a near term digestion of mature node capacity through the first half of 2025, customer engagement is strong and our long-term growth opportunity remains squarely intact highlighted by attractive secular growth in silicon carbide, a cyclical recovery in our memory and general mature markets, market share gains in advanced logic and regional penetration of the Japan market."

Executive Vice President and Chief Financial Officer Jamie Coogan said, "We are pleased with the financial performance delivered by our team thus far in 2024. Our cash generation remains strong, we are engaging with customers across a number of key growth opportunities, and we are investing in our product roadmaps while maintaining discipline in our overall cost structure. All of this, when coupled with our strong balance sheet, put us in position to capture the growth opportunities that lie ahead and drive long-term value creation for shareholders."

Business Outlook
For the fourth quarter ending December 31, 2024, Axcelis expects revenues of approximately $245 million, and earnings per diluted share of approximately $1.25.

Correction of Historical Backlog
During the preparation of the Company's third quarter financial statements, the Axcelis internal financial team identified an error in the calculation of backlog, beginning in 2019 through the second quarter of 2024. For example, corrected backlog as of June 30, 2024 was $879 million, compared to previously reported backlog of $994 million. Backlog as of September 30, 2024 was $758 million.

The corrected historical figures for 2019 through the second quarter of 2024 have been posted to the Investor section of the Axcelis website at investor.axcelis.com.

Third Quarter 2024 Conference Call
The Company will host a call to discuss the results for the third quarter 2024 on Thursday, Nov. 7, 2024, 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/BI64036dd04ee74de4bea3e1ba939fae67

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: David.Ryzhik@axcelis.com

Press/Media Relations Contact:  
Maureen Hart
Senior Director, Corporate & Marketing Communications
Telephone: (978) 787-4266
Email: Maureen.Hart@axcelis.com

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

	Three months ended				Nine months ended
		September 30,			September 30,
	2024		2023		2024		2023
Revenue:
Product	$	246,826	$	283,367	$	735,626	$	795,047
Services		9,738		8,959		29,822		25,269
Total revenue		256,564		292,326		765,448		820,316
Cost of revenue:
Product		136,379		154,798		399,049		444,311
Services		10,215		7,844		27,968		22,600
Total cost of revenue		146,594		162,642		427,017		466,911
Gross profit		109,970		129,684		338,431		353,405
Operating expenses:
Research and development		26,395		24,093		77,843		71,996
Sales and marketing		16,808		16,465		51,483		46,146
General and administrative		19,854		17,446		52,842		48,519
Total operating expenses		63,057		58,004		182,168		166,661
Income from operations		46,913		71,680		156,263		186,744
Other income (expense):
Interest income		6,560		4,580		18,126		12,824
Interest expense		(1,333)		(1,325)		(4,017)		(4,027)
Other, net		3,225		(1,260)		1,257		(4,348)
Total other income		8,452		1,995		15,366		4,449
Income before income taxes		55,365		73,675		171,629		191,193
Income tax provision		6,789		7,744		20,593		15,986
Net income	$	48,576	$	65,931	$	151,036	$	175,207
Net income per share:
Basic	$	1.49	$	2.01	$	4.63	$	5.35
Diluted	$	1.49	$	1.99	$	4.61	$	5.28
Shares used in computing net income per share:
Basic weighted average shares of common stock		32,550		32,807		32,595		32,775
Diluted weighted average shares of common stock		32,675		33,159		32,780		33,208

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

	September 30,		December 31,
	2024		2023
ASSETS
Current assets:
Cash and cash equivalents	$	120,066	$	167,297
Short-term investments		459,341		338,851
Accounts receivable, net		183,543		217,964
Inventories, net		290,954		306,482
Prepaid income taxes		10,748		—
Prepaid expenses and other current assets		57,441		49,397
Total current assets		1,122,093		1,079,991
Property, plant and equipment, net		54,454		53,971
Operating lease assets		30,391		30,716
Finance lease assets, net		15,668		16,632
Long-term restricted cash		6,653		6,654
Deferred income taxes		58,938		53,428
Other assets		49,928		40,575
Total assets	$	1,338,125	$	1,281,967
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	54,047	$	54,400
Accrued compensation		23,070		31,445
Warranty		14,547		14,098
Income taxes		—		6,164
Deferred revenue		138,682		164,677
Current portion of finance lease obligation		1,399		1,511
Other current liabilities		20,519		12,834
Total current liabilities		252,264		285,129
Long-term finance lease obligation		42,671		43,674
Long-term deferred revenue		25,344		46,208
Other long-term liabilities		42,252		42,074
Total liabilities		362,531		417,085

Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 32,504 shares issued and outstanding at September 30, 2024; 32,685 shares issued and outstanding at December 31, 2023		33		33
Additional paid-in capital		545,350		547,189
Retained earnings		432,429		319,506
Accumulated other comprehensive loss		(2,218)		(1,846)
Total stockholders' equity		975,594		864,882
Total liabilities and stockholders' equity	$	1,338,125	$	1,281,967

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SOURCE Axcelis Technologies, Inc.