Axcelis Announces Financial Results For Third Quarter 2021

Rhea-AI Summary

Axcelis Technologies, Inc. (Nasdaq: ACLS) reported strong financial results for Q3 2021, achieving revenue of $176.7 million, up from $147.3 million in Q2. The record system revenue of $126.2 million reflects growth in the implant systems segment. Net income rose to $27.5 million or $0.81 per diluted share, compared to $18.9 million or $0.55 in the previous quarter. The company anticipates approximately $190 million in revenue for Q4, with a gross margin expectation of 41.5%.

Positive

• Q3 2021 revenue of $176.7 million, up 19.99% from Q2.
• Record implant systems revenue of $126.2 million.
• Net income increased to $27.5 million ($0.81 per diluted share).
• Anticipated Q4 revenue of approximately $190 million.

Negative

• Gross margin decreased slightly to 43.3% from 43.5% in Q2.
• Expected Q4 gross margin decrease to approximately 41.5%.

BEVERLY, Mass., Nov. 3, 2021 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS), a leading supplier of enabling ion implantation solutions for the semiconductor industry, today announced financial results for the third quarter ended September 30, 2021.

Axcelis announced financial results for Q3 2021. The Company reports record Implant Systems Revenue and Backlog.

Highlights for the third quarter are as follows:

• The Company reported third quarter revenue of $176.7 million, compared to $147.3 million for the second quarter of 2021. This includes quarterly system revenues of $126.2 million dollars, an implant systems record, compared to $100.1 million in the second quarter.
• Operating profit for the quarter was $36.4 million, compared to $24 million for the second quarter.
• Net income for the quarter was $27.5 million, or $0.81 per diluted share, compared to net income of $18.9 million, or $0.55 per diluted share for the second quarter.
• Gross margin for the quarter was 43.3%, compared to 43.5% in the second quarter.
• Shipped full family of Purion SiC Power Series™ implanters to leading power device chipmakers located in Asia and Europe.
• Shipped multiple Purion™ high current and high energy implanters to a leading memory device manufacturer located in Asia.

President and CEO Mary Puma commented, "Axcelis delivered very strong third quarter financial performance driven by record implant systems revenue and solid gross margins. The mature and specialty markets, especially the implant-intensive power device segment, are generating significant market expansion. Axcelis is capitalizing on the strength of these segments with market leading Purion product extensions specifically designed to meet these customers' requirements. The Company is well positioned for long-term, sustainable growth."

Business Outlook
For the fourth quarter ending December 31, 2021, Axcelis expects revenues to be approximately $190 million. Gross margin in the fourth quarter is expected to be approximately 41.5%. Fourth quarter operating profit is forecasted to be approximately $37 million with earnings per diluted share of approximately $0.84. The Company also expects to exceed $640 million in revenue for the full year 2021.

Third Quarter 2021 Conference Call
The Company will host a call to discuss the results for the third quarter on Thursday, November 4, 2021 at 8:30 am 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 dialing 866.588.8911 (707.294.1561 outside North America). Participants calling into the conference call will be requested to provide the company name, Axcelis Technologies, and Audience Passcode: 4426677. 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,
		2021			2020			2021			2020
Revenue:
Product		$	169,151		$	104,799		$	435,916		$	334,126
Services			7,543			5,606			20,828			18,235
Total revenue			176,694			110,405			456,744			352,361
Cost of revenue:
Product			93,201			56,427			240,223			189,118
Services			6,981			5,817			19,560			17,634
Total cost of revenue			100,182			62,244			259,783			206,752
Gross profit			76,512			48,161			196,961			145,609
Operating expenses:
Research and development			16,707			14,867			49,015			45,513
Sales and marketing			11,415			9,763			33,979			27,404
General and administrative			11,996			9,649			33,226			28,726
Total operating expenses			40,118			34,279			116,220			101,643
Income from operations			36,394			13,882			80,741			43,966
Other (expense) income:
Interest income			51			106			124			658
Interest expense			(1,269)			(1,296)			(3,572)			(3,898)
Other, net			(963)			900			(2,131)			701
Total other expense			(2,181)			(290)			(5,579)			(2,539)
Income before income taxes			34,213			13,592			75,162			41,427
Income tax provision			6,698			2,807			12,261			6,119
Net income		$	27,515		$	10,785		$	62,901		$	35,308
Net income per share:
Basic		$	0.82		$	0.32		$	1.87		$	1.06
Diluted		$	0.81		$	0.32		$	1.83		$	1.04
Shares used in computing net income per share:
Basic weighted average common shares			33,537			33,477			33,643			33,159
Diluted weighted average common shares			34,089			34,174			34,339			34,070

 

Axcelis Technologies, Inc.
Consolidated Balance Sheets
(In thousands, except per share amounts)
(Unaudited)
		September 30,			December 31,
		2021			2020
ASSETS
Current assets:
Cash and cash equivalents		$	271,085		$	203,479
Accounts receivable, net			78,257			86,865
Inventories, net			196,812			161,076
Prepaid expenses and other current assets			23,990			19,371
Total current assets			570,144			470,791
Property, plant and equipment, net			32,921			29,840
Operating lease assets			8,106			4,542
Finance lease assets, net			19,563			20,544
Long-term restricted cash			756			753
Deferred income taxes			44,206			57,851
Other assets			35,282			40,303
Total assets		$	710,978		$	624,624
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	35,499		$	24,013
Accrued compensation			23,548			24,562
Warranty			5,741			4,280
Income taxes			623			654
Deferred revenue			54,502			21,221
Current portion of finance lease obligation			921			756
Other current liabilities			16,361			8,945
Total current liabilities			137,195			84,431
Long-term finance lease obligation			46,672			47,393
Long-term deferred revenue			3,738			1,837
Other long-term liabilities			11,694			9,361
Total liabilities			199,299			143,022
Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 33,406 shares issued and outstanding at September 30, 2021; 33,633 shares issued and outstanding at December 31, 2020			33			34
Additional paid-in capital			559,913			570,102
Accumulated deficit			(50,017)			(91,969)
Accumulated other comprehensive income			1,750			3,435
Total stockholders' equity			511,679			481,602
Total liabilities and stockholders' equity		$	710,978		$	624,624

 

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SOURCE Axcelis Technologies, Inc.

FAQ

What were Axcelis Technologies' Q3 2021 earnings results?

Axcelis reported Q3 2021 revenue of $176.7 million and net income of $27.5 million, or $0.81 per diluted share.

What is the revenue outlook for Q4 2021 for ACLS?

The company expects revenues of approximately $190 million for Q4 2021.

How did Axcelis' gross margin change from Q2 to Q3 2021?

Gross margin slightly decreased from 43.5% in Q2 to 43.3% in Q3 2021.

What is the full-year revenue forecast for Axcelis Technologies in 2021?

Axcelis expects to exceed $640 million in revenue for the full year 2021.