Axcelis Announces Financial Results for Fourth Quarter and Full Year 2023
- Record full-year revenue of $1.13 billion, up 23% from 2022
- Operating profit increased by 25% to $265.8 million
- Net income of $246.3 million and diluted earnings per share of $7.43, a 35% increase from the previous year
- Significant growth from the Purion Power Series™ product line
- Year-end systems backlog of $1.2 billion
- Confidence in strong growth for 2025
- None.
Insights
The reported revenue growth of 23% by Axcelis Technologies represents a significant achievement, particularly given the context of an industry downturn. This performance indicates a robust business model and effective execution of the company's strategic initiatives. The increase in systems revenue by 28% suggests a strong market demand for Axcelis's Purion Power Series product line, which is likely contributing to the expansion of the company's market share.
From a financial perspective, the operating profit increase of 25% and the 35% jump in net income year over year are particularly noteworthy. These figures suggest operational efficiency and effective cost management, which are critical for maintaining profitability in a competitive sector. The gross margin remaining relatively stable at over 43% across two consecutive years indicates pricing power and cost stability, which are positive indicators for future profitability.
Investors and stakeholders might be encouraged by the company's year-end systems backlog of $1.2 billion. This backlog could provide revenue visibility and a degree of certainty about future earnings, which is valuable for forecasting and strategic planning. The backlog also reflects sustained customer demand, which is a positive sign for the company's growth trajectory.
The semiconductor industry is known for its cyclical nature, with periods of rapid growth followed by downturns. Axcelis's performance, despite an industry downturn, suggests that the company has a resilient product offering and a strong competitive position. The Purion product line's success indicates that Axcelis has effectively tapped into the power semiconductor market, which is driven by demand for energy-efficient technologies.
President and CEO Russell Low's remarks about the mature process technology and memory segments recovering in the second half of the year are optimistic. If this recovery materializes, it could provide further growth opportunities for Axcelis, particularly given their established position in these markets. However, investors should monitor industry trends and forecasts to assess the likelihood of this recovery and its potential impact on the company.
It is also worth noting the strategic importance of developing a large and diverse customer base. By winning business from new customers and expanding product footprints with existing ones, Axcelis is not only diversifying its revenue streams but also reducing dependency on any single market segment, which can mitigate risks associated with market volatility.
The semiconductor industry is a critical component of the global economy and its health is often viewed as a leading indicator of broader economic trends. Axcelis's record revenue and profitability in the context of an industry downturn may reflect underlying strength in certain segments of the semiconductor market, such as power semiconductors, which are essential for a wide range of applications, including renewable energy systems and electric vehicles.
The company's performance could be seen as a microcosm of the broader economic shift towards energy efficiency and technological innovation. The sustained demand for Axcelis's products, despite a general market slump, may indicate that sectors aligned with global trends such as sustainability and tech innovation are more resilient to economic pressures.
Furthermore, the anticipated recovery in mature process technology and memory segments could signal a forthcoming upswing in the semiconductor cycle. This potential recovery would have implications for the broader tech industry and could lead to increased capital expenditures and investments in these segments. However, economic forecasts and global market conditions should be continuously evaluated to understand the external factors that may influence the industry's trajectory and Axcelis's future performance.
Record Revenue for 2023, Achieving Year-Over-Year Growth of
Highlights include:
- Record full year revenue, operating profit and EPS, enabling the Company to surpass its
$1.1 billion - Continued strong growth from the Purion Power Series™ product line.
- Significant increase in Purion™ installed base drove record CS&I revenue.
- Year-end systems backlog of
$1.2 billion
For the full year 2023, the Company reported revenue of
The Company reported fourth quarter revenue of
President and CEO Russell Low commented, "2023 was another outstanding year for Axcelis. As a result of strong execution by the Axcelis team and robust demand for the Purion Power Series product family, we achieved
Executive Vice President and Chief Financial Officer Jamie Coogan said, "We are extremely pleased with our 2023 results, and excited about our future growth. Our revenue and earnings per share finished above our revised guidance, and we ended the quarter with robust cash flow and a strong balance sheet. As we look to 2024, we will continue to make investments in R&D while managing expenses, setting us up to achieve our
Business Outlook
For the first quarter ending March 31, 2024, Axcelis expects revenues of approximately
Fourth Quarter and Full Year 2023 Conference Call
The Company will release financial results for the fourth quarter and full year 2023 on Wednesday, February 7, 2024, at 4:00 p.m. Eastern Time (ET). The Company will host a call to discuss the results for the fourth quarter and full year 2023 on Thursday, February 8, 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://edge.media-server.com/mmc/p/su3u4oev. 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
Company Contacts
Investor Relations:
Doug Lawson
978.787.9552
Editorial/Media:
Maureen Hart
978.787.4266
Axcelis Technologies, Inc. | |||||||||||||
Three months ended | Twelve months ended | ||||||||||||
December 31, | December 31, | ||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||
Revenue: | |||||||||||||
Product | $ | 300,603 | $ | 258,584 | $ | 1,095,650 | $ | 890,582 | |||||
Services | 9,685 | 7,467 | 34,954 | 29,416 | |||||||||
Total revenue | 310,288 | 266,051 | 1,130,604 | 919,998 | |||||||||
Cost of revenue: | |||||||||||||
Product | 163,801 | 149,717 | 608,112 | 492,104 | |||||||||
Services | 8,591 | 6,813 | 31,191 | 26,104 | |||||||||
Total cost of revenue | 172,392 | 156,530 | 639,303 | 518,208 | |||||||||
Gross profit | 137,896 | 109,521 | 491,301 | 401,790 | |||||||||
Operating expenses: | |||||||||||||
Research and development | 24,911 | 22,089 | 96,907 | 78,356 | |||||||||
Sales and marketing | 16,659 | 15,032 | 62,805 | 53,599 | |||||||||
General and administrative | 17,275 | 16,311 | 65,794 | 57,474 | |||||||||
Total operating expenses | 58,845 | 53,432 | 225,506 | 189,429 | |||||||||
Income from operations | 79,051 | 56,089 | 265,795 | 212,361 | |||||||||
Other income (expense): | |||||||||||||
Interest income | 5,375 | 2,993 | 18,199 | 4,551 | |||||||||
Interest expense | (1,320) | (1,475) | (5,347) | (5,576) | |||||||||
Other, net | 4,300 | 8,189 | (48) | (6,451) | |||||||||
Total other income (expense) | 8,355 | 9,707 | 12,804 | (7,476) | |||||||||
Income before income taxes | 87,406 | 65,796 | 278,599 | 204,885 | |||||||||
Income tax provision | 16,350 | 8,804 | 32,336 | 21,806 | |||||||||
Net income | $ | 71,056 | $ | 56,992 | $ | 246,263 | $ | 183,079 | |||||
Net income per share: | |||||||||||||
Basic | $ | 2.17 | $ | 1.74 | $ | 7.52 | $ | 5.54 | |||||
Diluted | $ | 2.15 | $ | 1.71 | $ | 7.43 | $ | 5.46 | |||||
Shares used in computing net income per share: | |||||||||||||
Basic weighted average shares of common stock | 32,708 | 32,823 | 32,758 | 33,043 | |||||||||
Diluted weighted average shares of common stock | 33,031 | 33,262 | 33,165 | 33,542 | |||||||||
Axcelis Technologies, Inc. | |||||||
December 31, | December 31, | ||||||
2023 | 2022 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 167,297 | $ | 185,595 | |||
Short-term investments | 338,851 | 246,571 | |||||
Accounts receivable, net | 217,964 | 169,773 | |||||
Inventories, net | 306,482 | 242,406 | |||||
Prepaid expenses and other current assets | 49,397 | 33,300 | |||||
Total current assets | 1,079,991 | 877,645 | |||||
Property, plant and equipment, net | 53,971 | 39,664 | |||||
Operating lease assets | 30,716 | 12,146 | |||||
Finance lease assets, net | 16,632 | 17,942 | |||||
Long-term restricted cash | 6,654 | 752 | |||||
Deferred income taxes | 53,428 | 31,701 | |||||
Other assets | 40,575 | 33,791 | |||||
Total assets | $ | 1,281,967 | $ | 1,013,641 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 54,400 | $ | 62,346 | |||
Accrued compensation | 31,445 | 35,540 | |||||
Warranty | 14,098 | 8,299 | |||||
Income taxes | 6,164 | 4,304 | |||||
Deferred revenue | 164,677 | 123,471 | |||||
Current portion of finance lease obligation | 1,511 | 1,229 | |||||
Other current liabilities | 12,834 | 12,943 | |||||
Total current liabilities | 285,129 | 248,132 | |||||
Long-term finance lease obligation | 43,674 | 45,185 | |||||
Long-term deferred revenue | 46,208 | 31,306 | |||||
Other long-term liabilities | 42,074 | 21,762 | |||||
Total liabilities | 417,085 | 346,385 | |||||
Stockholders' equity: | |||||||
Common stock, | 33 | 33 | |||||
Additional paid-in capital | 547,189 | 550,299 | |||||
Retained earnings | 319,506 | 118,892 | |||||
Accumulated other comprehensive loss | (1,846) | (1,968) | |||||
Total stockholders' equity | 864,882 | 667,256 | |||||
Total liabilities and stockholders' equity | $ | 1,281,967 | $ | 1,013,641 | |||
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SOURCE Axcelis Technologies, Inc.
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