Axcelis Announces Financial Results for Fourth Quarter and Full Year 2022

Rhea-AI Summary

Axcelis Technologies reported a record annual revenue of $920 million for 2022, a 39% increase from $662.4 million in 2021. The company's gross margin improved to 43.7% while net income rose to $183.1 million, or $5.46 per diluted share, reflecting an 86% year-over-year increase. For Q4 2022, revenue was $266.1 million, with a gross margin of 41.2%. Looking ahead, Axcelis expects first-quarter revenue of approximately $240 million and over $1 billion for the full year 2023. The company also introduced a new revenue model projecting $1.3 billion in the next 2-3 years.

Positive

• Full year 2022 revenue increased by 39% to $920 million.
• Operating profit for 2022 reached a record $212.4 million, up 67%.
• Net income for 2022 rose 86% to $183.1 million.
• Record backlog of over $1.1 billion at year-end.

Negative

• Gross margin for Q4 2022 decreased to 41.2% from 45.1% in Q3.
• First quarter operating profit forecasted at only $48 million.

Achieved Record Annual Revenue, Gross Margin and EPS

BEVERLY, Mass., Feb. 8, 2023 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the fourth quarter and full year ended December 31, 2022.

Highlights include:

• Record full year revenue, gross margin and EPS, enabling the Company to surpass its $850M revenue model
• The power device market segment accounted for 39% of our 2022 shipped systems revenue, driven by strong growth of the Purion Power Series™ product line
• Year ending record backlog of greater than $1.1B

Axcelis Achieved Record Annual Revenue, Gross Margin and EPS 

For the full year 2022, the Company reported revenue of $920 million, compared with $662.4 million for the full year 2021, an increase of 39% and a company record. Systems revenue for the year was $692.1 million, compared to $454.6 million in 2021, an increase of 52%, also a company record. Operating profit was $212.4 million in 2022, compared to $127.3 million in 2021, a 67% increase and a company record. Net income for the year was $183.1 million with diluted earnings per share of $5.46, compared to net income of $98.7 million and diluted earnings per share of $2.88 in 2021, resulting in a 86% net income year over year increase. Gross margin for the year was 43.7%, a 50 basis point improvement compared to 43.2% in 2021 and a company record.

The Company reported fourth quarter revenue of $266.1 million, compared to $229.2 million for the third quarter of 2022. Operating profit for the quarter was $56.1 million, compared to $53.2 million for the third quarter. Net income for the quarter was $57.0 million, or $1.71 per diluted share, compared to $40.3 million, or $1.21 per diluted share in the third quarter. Gross margin for the quarter was 41.2%, compared to 45.1% in the third quarter. Fourth quarter ended with bookings of $211.5 million and record systems backlog of $1.1 billion. Cash, cash equivalents and short-term investments were $432.2 million on December 31, 2022, compared to $342.1 million on September 30, 2022. This is net of $12.5 million of repurchased shares in the fourth quarter.

President and CEO Mary Puma commented, "2022 was another outstanding year for Axcelis. As a result of strong execution by the Axcelis team and robust demand for the Purion product family, we delivered record quarterly and annual revenues, and we surpassed our $850M revenue model. For the full year 2023 Axcelis revenues are expected to exceed $1 billion dollars and we are introducing a new long-term implant only model with revenue of $1.3 billion dollars that we believe is achievable within the next 2 to 3 years."

Executive Vice President and Chief Financial Officer Kevin Brewer said, "We are extremely pleased with our 2022 results, and very excited about our projected growth. As a result of the success of Purion and tight control of our cost structure, Axcelis' profitability has improved significantly and we expect further gains in 2023 and beyond."

Business Outlook
For the first quarter ending March 31, 2023, Axcelis expects revenues of approximately $240 million. Gross margin in the first quarter is expected to be approximately 41.5%. First quarter operating profit is forecast to be approximately $48 million with earnings per diluted share of around $1.25. For the full year, the Company expects to achieve revenue of greater than $1 billion. Assuming expected improvements in supply chain costs and product mix occur in the second half of the year, we would expect to achieve full year gross margins of approximately 44% as shown in the $1B model.   

Fourth Quarter and Full Year 2022 Conference Call
The Company will host a call to discuss the results for the fourth quarter and full year 2022 on Thursday, February 9, 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/BI2c9198cd02354e0fb92ddec100489c61. 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						Twelve months ended
			December 31,					December 31,
		2022			2021			2022			2021
Revenue:
Product		$	258,584		$	198,529		$	890,582		$	634,445
Services			7,467			7,155			29,416			27,983
Total revenue			266,051			205,684			919,998			662,428
Cost of revenue:
Product			149,717			109,335			492,104			349,558
Services			6,813			6,865			26,104			26,425
Total cost of revenue			156,530			116,200			518,208			375,983
Gross profit			109,521			89,484			401,790			286,445
Operating expenses:
Research and development			22,089			16,416			78,356			65,431
Sales and marketing			15,032			13,569			53,599			47,548
General and administrative			16,311			12,915			57,474			46,141
Total operating expenses			53,432			42,900			189,429			159,120
Income from operations			56,089			46,584			212,361			127,325
Other income (expense):
Interest income			2,993			85			4,551			209
Interest expense			(1,475)			(1,263)			(5,576)			(4,835)
Other, net			8,189			(140)			(6,451)			(2,271)
Total other income (expense)			9,707			(1,318)			(7,476)			(6,897)
Income before income taxes			65,796			45,266			204,885			120,428
Income tax provision			8,804			9,517			21,806			21,778
Net income		$	56,992		$	35,749		$	183,079		$	98,650
Net income per share:
Basic		$	1.74		$	1.07		$	5.54		$	2.94
Diluted		$	1.71		$	1.05		$	5.46		$	2.88
Shares used in computing net income per share:
Basic weighted average common shares			32,823			33,295			33,043			33,555
Diluted weighted average common shares			33,262			34,011			33,542			34,268

 

Axcelis Technologies, Inc.
Consolidated Balance Sheets
(In thousands, except per share amounts)
(Unaudited)
		December 31,			December 31,
		2022			2021
ASSETS
Current assets:
Cash and cash equivalents		$	185,595		$	294,923
Short-term investments			246,571			—
Accounts receivable, net			169,773			104,410
Inventories, net			242,406			194,984
Prepaid expenses and other current assets			33,300			24,929
Total current assets			877,645			619,246
Property, plant and equipment, net			39,664			34,972
Operating lease assets			12,146			9,242
Finance lease assets, net			17,942			19,238
Long-term restricted cash			752			757
Deferred income taxes			31,701			35,454
Other assets			33,791			34,331
Total assets		$	1,013,641		$	753,240
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	62,346		$	38,025
Accrued compensation			35,540			30,732
Warranty			8,299			6,424
Income taxes			4,304			887
Deferred revenue			123,471			60,454
Current portion of finance lease obligation			1,229			979
Other current liabilities			12,943			12,639
Total current liabilities			248,132			150,140
Long-term finance lease obligation			45,185			46,415
Long-term deferred revenue			31,306			7,982
Other long-term liabilities			21,762			9,744
Total liabilities			346,385			214,281
Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 32,775 shares issued and outstanding at December 31, 2022; 33,240 shares issued and outstanding at December 31, 2021			33			33
Additional paid-in capital			550,299			559,883
Retained earnings (accumulated deficit)			118,892			(22,722)
Accumulated other comprehensive (loss) income			(1,968)			1,765
Total stockholders' equity			667,256			538,959
Total liabilities and stockholders' equity		$	1,013,641		$	753,240

 

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SOURCE Axcelis Technologies, Inc.

FAQ

What are Axcelis Technologies' earnings results for Q4 2022?

Axcelis reported Q4 2022 revenue of $266.1 million, with a net income of $57 million, or $1.71 per diluted share.

What is the revenue outlook for Axcelis in 2023?

Axcelis expects revenues to exceed $1 billion in 2023.

How did Axcelis perform financially in 2022?

In 2022, Axcelis achieved a record revenue of $920 million, a gross margin of 43.7%, and net income of $183.1 million.

What is Axcelis' projected gross margin for 2023?

Axcelis anticipates a full year gross margin of approximately 44% in 2023.

When will Axcelis discuss its financial results?

Axcelis will host a conference call on February 9, 2023, at 8:30 a.m. ET to discuss its results.