Axcelis Updates And Increases Q4 2020 Guidance

Rhea-AI Summary

Axcelis Technologies (Nasdaq: ACLS) updated its fourth quarter 2020 financial guidance, expecting revenue of approximately $120 million, exceeding previous guidance of $110 million. Gross margin is projected at 43%, improved from 41%, with earnings per share rising to $0.32 from $0.21. The company also announced a $100 million share repurchase program for 2021, indicating strong confidence in operational prospects. Upcoming financial results will be disclosed on February 10, 2021, with a conference call scheduled for February 11, 2021.

Positive

• Revenue guidance raised to approximately $120 million from $110 million.
• Gross margin increased to 43%, up from previous guidance of 41%.
• Earnings per diluted share expected to rise to $0.32 from $0.21.
• New $100 million share repurchase program approved, reflecting management confidence.

Negative

• None.

BEVERLY, Mass., Jan. 12, 2021 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS), a leading supplier of enabling ion implantation solutions for the semiconductor industry, today provided updated financial guidance for the fourth quarter of 2020. The Company expects revenue for the fourth quarter of 2020 to be approximately $120 million, above the $110 million prior guidance. Gross margin of approximately 43% is up from the previous gross margin guidance of 41%. As a result, the Company expects earnings per diluted share of approximately $0.32, up from the previous guidance of approximately $0.21. Cash will be greater than $200 million.  Strong performance by our CS&I business contributed to the strong revenue and gross margin.

President and CEO Mary Puma commented, "We expect 2020 to exceed expectations and that 2021 will be another strong year, with the mature process technology market continuing to grow and the memory market expected to recover. This positions us well to achieve our $550 and $650 million dollar target models."

Kevin Brewer, executive vice president and chief financial officer said, "The Axcelis Board of Directors has authorized a new $100 million share repurchase program effective for 2021. This new program emphasizes the confidence that management and the board of directors have in Axcelis' operational strength and prospects for the future."

Share Repurchase Program
Repurchases of the Company's common stock will be made from time to time under the SEC's Rule 10b-18, subject to market conditions. These shares may be purchased in the open market or through privately negotiated transactions. The Company may from time to time enter into Rule 10b5-1 trading plans to facilitate the repurchase of its common stock pursuant to its share repurchase program. The Company has no obligation to repurchase shares under the authorization. The Company may suspend or discontinue the repurchase program at any time.

Fourth Quarter and Full Year 2020 Conference Call
Axcelis Technologies will release financial results for the fourth quarter and full year 2020 on Wednesday, February 10, 2021 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 2020 on Thursday, February 11, 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: 3582149. Webcast replays will be available for 30 days following the call.

Safe Harbor Statement
This press release contains forward-looking statements under the SEC safe harbor provisions. These statements, which include our 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, many of which are outside the control of the Company, including the timing of orders and shipments, the conversion of orders to revenue in any particular quarter, or at all, the continuing demand for semiconductor equipment, relative market growth, continuity of business relationships with and purchases by major customers, competitive pressure on sales and pricing, increases in material and other production costs that cannot be recouped in product pricing and global economic, political and financial conditions. 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.

CONTACTS:

Maureen Hart (editorial/media) 978.787.4266
Doug Lawson (investor relations) 978.787.9552

View original content to download multimedia:http://www.prnewswire.com/news-releases/axcelis-updates-and-increases-q4-2020-guidance-301206846.html

SOURCE Axcelis Technologies, Inc.

FAQ

What is Axcelis Technologies' updated revenue guidance for Q4 2020?

Axcelis Technologies expects revenue for Q4 2020 to be approximately $120 million, above the prior guidance of $110 million.

What is the projected gross margin for Axcelis in Q4 2020?

The projected gross margin for Axcelis in Q4 2020 is approximately 43%, up from the previous guidance of 41%.

What earnings per share does Axcelis anticipate for Q4 2020?

Axcelis anticipates earnings per diluted share of approximately $0.32 for Q4 2020, increased from the previous estimate of $0.21.

When will Axcelis release its Q4 2020 financial results?

Axcelis will release its financial results for Q4 2020 on February 10, 2021.

What is the significance of Axcelis' new share repurchase program?

The new $100 million share repurchase program approved by the Axcelis Board reflects confidence in the company's operational strength and future prospects.