Axcelis Announces Financial Results for Second Quarter 2023

Financial Results Exceed Guidance Driven by Strong Purion Demand and Strength in Power Devices

BEVERLY, Mass., Aug. 2, 2023 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the second quarter of 2023.

Highlights include:

• The Company reported second quarter revenue of $274.0 million, compared to $254.0 million for the first quarter of 2023.
• Operating profit for the quarter was $63.7 million, compared to $51.4 million for the first quarter.
• Net income for the quarter was $61.6 million, or $1.86 per diluted share, compared to $47.7 million, or $1.43 per diluted share in the first quarter.
• Gross margin for the quarter was 43.7%, compared to 40.9% in the first quarter.
• Second quarter ended with systems backlog of $1.23 billion on quarterly bookings of $193 million.

Financial Results Exceed Guidance Driven by Strong Purion Demand and Strength in Power Devices

President and CEO Russell Low commented, "Axcelis delivered strong second quarter financial performance as a result of significant demand for the Purion product family, especially in the silicon carbide power market. Axcelis is the only company with a product line capable of covering all implant recipes in the mature process technology markets. We now believe it is possible to achieve $1.3 billion in revenue in the next one or two years, depending on market conditions."

Executive Vice President and Chief Financial Officer Kevin Brewer said, "We are very pleased with our second quarter 2023 financial results which finished well above guidance due to solid execution and continuing strong demand for Purion. We are upwardly revising expectations for 2023 revenue to greater than $1.1 billion, representing year over year growth of approximately 20%."

Business Outlook
For the third quarter ending September 30, 2023, Axcelis expects revenues of approximately $280 million. Gross margin in the third quarter is expected to be approximately 44%. Third quarter operating profit is forecast to be approximately $64 million with earnings per diluted share of approximately $1.72. For the full year, the Company expects to achieve revenue greater than $1.1 billion and to achieve full year gross margins of approximately 44% as shown in the $1.1 billion model.

Second Quarter 2023 Conference Call
The Company will host a call to discuss the results for the second quarter on Thursday, August 3, 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/BI9757e7e7d17f4188872f4146e314ba26. 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 revenues, gross margin, operating profit and other guidance for our future financial performance and spending in our industry, 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.

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						Six months ended
			June 30,						June 30,
		2023			2022			2023			2022
Revenue:
Product		$	265,673		$	213,926		$	511,680		$	410,458
Services			8,297			7,251			16,310			14,314
Total revenue			273,970			221,177			527,990			424,772
Cost of revenue:
Product			146,741			115,754			289,512			223,395
Services			7,526			6,242			14,756			12,429
Total cost of revenue			154,267			121,996			304,268			235,824
Gross profit			119,703			99,181			223,722			188,948
Operating expenses:
Research and development			24,130			18,731			47,903			35,704
Sales and marketing			15,537			12,703			29,681			23,994
General and administrative			16,328			13,602			31,073			26,180
Total operating expenses			55,995			45,036			108,657			85,878
Income from operations			63,708			54,145			115,065			103,070
Other income (expense):
Interest income			4,307			352			8,243			447
Interest expense			(1,349)			(1,250)			(2,702)			(2,768)
Other, net			(2,050)			(5,051)			(3,088)			(6,669)
Total other income (expense)			908			(5,949)			2,453			(8,990)
Income before income taxes			64,616			48,196			117,518			94,080
Income tax provision			3,037			4,007			8,242			8,276
Net income		$	61,579		$	44,189		$	109,276		$	85,804
Net income per share:
Basic		$	1.88		$	1.34		$	3.34		$	2.59
Diluted		$	1.86		$	1.32		$	3.29		$	2.54
Shares used in computing net income per share:
Basic weighted average shares of common stock			32,775			33,096			32,759			33,170
Diluted weighted average shares of common stock			33,189			33,562			33,237			33,770

 

Axcelis Technologies, Inc. Consolidated Balance Sheets (In thousands, except per share amounts) (Unaudited)
		June 30,			December 31,
		2023			2022
ASSETS
Current assets:
Cash and cash equivalents		$	132,504		$	185,595
Short-term investments			320,360			246,571
Accounts receivable, net			159,199			169,773
Inventories, net			299,841			242,406
Prepaid expenses and other current assets			38,265			33,300
Total current assets			950,169			877,645
Property, plant and equipment, net			43,156			39,664
Operating lease assets			31,998			12,146
Finance lease assets, net			17,305			17,942
Long-term restricted cash			6,652			752
Deferred income taxes			38,944			31,701
Other assets			33,494			33,791
Total assets		$	1,121,718		$	1,013,641
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	60,504		$	62,346
Accrued compensation			17,216			35,540
Warranty			10,867			8,299
Income taxes			6,598			4,304
Deferred revenue			138,890			123,471
Current portion of finance lease obligation			1,367			1,229
Other current liabilities			13,018			12,943
Total current liabilities			248,460			248,132
Long-term finance lease obligation			44,455			45,185
Long-term deferred revenue			43,650			31,306
Other long-term liabilities			41,116			21,762
Total liabilities			377,681			346,385
Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 32,836 shares issued and outstanding at June 30, 2023; 32,775 shares issued and outstanding at December 31, 2022			33			33
Additional paid-in capital			540,120			550,299
Retained earnings			206,813			118,892
Accumulated other comprehensive loss			(2,929)			(1,968)
Total stockholders' equity			744,037			667,256
Total liabilities and stockholders' equity		$	1,121,718		$	1,013,641

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/axcelis-announces-financial-results-for-second-quarter-2023-301891866.html

SOURCE Axcelis Technologies, Inc.