Axcelis Announces Financial Results for Third Quarter 2023

Rhea-AI Summary

Axcelis Technologies, Inc. reported strong financial results for Q3 2023, driven by robust demand for the Purion product family in the global silicon carbide power device market. The company achieved a revenue of $292.3 million, operating profit of $71.7 million, and net income of $65.9 million. Gross margin improved to 44.4%. The quarter ended with a systems backlog of $1.2 billion.

Positive

• Axcelis Technologies reported a 6.7% increase in revenue from Q2 2023 to Q3 2023.
• Operating profit for Q3 2023 increased by 12.6% compared to Q2 2023.
• Net income for Q3 2023 increased by 6.9% compared to Q2 2023.
• Gross margin improved by 0.7% in Q3 2023 compared to Q2 2023.
• The systems backlog at the end of Q3 2023 was $1.2 billion.

Negative

• None.

Financial Results Continue to be Driven by Strong Purion Demand in the Global Silicon Carbide Power Device Market

BEVERLY, Mass., Nov. 1, 2023 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the third quarter of 2023.

Highlights include:

• The Company reported third quarter revenue of $292.3 million, compared to $274.0 million for the second quarter of 2023.
• Operating profit for the quarter was $71.7 million, compared to $63.7 million for the second quarter.
• Net income for the quarter was $65.9 million, or $1.99 per diluted share, compared to $61.6 million, or $1.86 per diluted share in the second quarter.
• Gross margin for the quarter was 44.4%, compared to 43.7% in the second quarter.
• Third quarter ended with systems backlog of $1.2 billion on quarterly bookings of $198 million.

President and CEO Russell Low commented, "Axcelis delivered strong third quarter financial performance due to robust demand for the Purion product family, especially in the silicon carbide power market. Axcelis is the only company with a product line that can deliver complete recipe coverage for all power device applications. We are the technology leader and the supplier of choice providing the best device manufacturing capabilities. This uniquely positions Axcelis to benefit from high growth in this market. Axcelis expects to achieve revenue of greater than $1.1 billion in 2023."

Executive Vice President and Chief Financial Officer James Coogan said, "We are very pleased with our third quarter 2023 financial results. Revenue, EPS and gross margins all finished well above guidance. Axcelis has had the rare opportunity to grow revenue 20% year over year as well as improve profitability during a significant industry downturn. This is a result of strong product positioning and continued strong execution in a challenging environment."

Business Outlook
For the fourth quarter ending December 31, 2023, Axcelis expects revenues of approximately $295 million. Gross margin in the fourth quarter is expected to be approximately 45%. Fourth quarter operating profit is forecast to be approximately $73 million with earnings per diluted share of approximately $2.00. For the full year, the Company expects to achieve revenue of greater than $1.1 billion and to achieve full year gross margins of approximately 43.6% as shown in the $1.1 billion model.

Third Quarter 2023 Conference Call
The Company will host a call to discuss the results for the third quarter on Thursday, November 2, 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/BI1a199f2035664eafaa3226da79b560e5. 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						Nine months ended
			September 30,					September 30,
		2023			2022			2023			2022
Revenue:
Product		$	283,367		$	221,540		$	795,047		$	631,998
Services			8,959			7,635			25,269			21,949
Total revenue			292,326			229,175			820,316			653,947
Cost of revenue:
Product			154,798			118,992			444,311			342,387
Services			7,844			6,862			22,600			19,291
Total cost of revenue			162,642			125,854			466,911			361,678
Gross profit			129,684			103,321			353,405			292,269
Operating expenses:
Research and development			24,093			20,563			71,996			56,267
Sales and marketing			16,465			14,573			46,146			38,567
General and administrative			17,446			14,983			48,519			41,163
Total operating expenses			58,004			50,119			166,661			135,997
Income from operations			71,680			53,202			186,744			156,272
Other income (expense):
Interest income			4,580			1,111			12,824			1,558
Interest expense			(1,325)			(1,333)			(4,027)			(4,101)
Other, net			(1,260)			(7,971)			(4,348)			(14,640)
Total other income (expense)			1,995			(8,193)			4,449			(17,183)
Income before income taxes			73,675			45,009			191,193			139,089
Income tax provision			7,744			4,726			15,986			13,002
Net income		$	65,931		$	40,283		$	175,207		$	126,087
Net income per share:
Basic		$	2.01		$	1.22		$	5.35		$	3.81
Diluted		$	1.99		$	1.21		$	5.28		$	3.75
Shares used in computing net income per share:
Basic weighted average shares of common stock			32,807			33,011			32,775			33,116
Diluted weighted average shares of common stock			33,159			33,389			33,208			33,638

 

Axcelis Technologies, Inc. Consolidated Balance Sheets (In thousands, except per share amounts) (Unaudited)
		September 30,			December 31,
		2023			2022
ASSETS
Current assets:
Cash and cash equivalents		$	142,300		$	185,595
Short-term investments			318,710			246,571
Accounts receivable, net			192,327			169,773
Inventories, net			312,223			242,406
Prepaid expenses and other current assets			49,481			33,300
Total current assets			1,015,041			877,645
Property, plant and equipment, net			47,169			39,664
Operating lease assets			31,082			12,146
Finance lease assets, net			16,981			17,942
Long-term restricted cash			6,650			752
Deferred income taxes			44,323			31,701
Other assets			40,448			33,791
Total assets		$	1,201,694		$	1,013,641
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	60,061		$	62,346
Accrued compensation			26,535			35,540
Warranty			11,464			8,299
Income taxes			582			4,304
Deferred revenue			148,299			123,471
Current portion of finance lease obligation			1,438			1,229
Other current liabilities			12,799			12,943
Total current liabilities			261,178			248,132
Long-term finance lease obligation			44,070			45,185
Long-term deferred revenue			53,730			31,306
Other long-term liabilities			41,745			21,762
Total liabilities			400,723			346,385
Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 32,772 shares issued and outstanding at September 30, 2023; 32,775 shares issued and outstanding at December 31, 2022			33			33
Additional paid-in capital			543,577			550,299
Retained earnings			261,521			118,892
Accumulated other comprehensive loss			(4,160)			(1,968)
Total stockholders' equity			800,971			667,256
Total liabilities and stockholders' equity		$	1,201,694		$	1,013,641

 

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SOURCE Axcelis Technologies, Inc.

FAQ

What were Axcelis Technologies' Q3 2023 revenue and net income?

Axcelis Technologies reported a revenue of $292.3 million and a net income of $65.9 million for Q3 2023.

What was the operating profit for Axcelis Technologies in Q3 2023?

Axcelis Technologies achieved an operating profit of $71.7 million in Q3 2023.

What was the gross margin for Axcelis Technologies in Q3 2023?

Axcelis Technologies had a gross margin of 44.4% in Q3 2023.

What was the systems backlog at the end of Q3 2023?

The systems backlog at the end of Q3 2023 was $1.2 billion.

What is Axcelis Technologies' business outlook for Q4 2023?

Axcelis Technologies expects revenues of approximately $295 million, a gross margin of approximately 45%, and an operating profit of approximately $73 million for Q4 2023.

What is Axcelis Technologies' full-year revenue expectation for 2023?

Axcelis Technologies expects to achieve revenue of greater than $1.1 billion in 2023.