Axcelis Announces Financial Results for Second Quarter 2024
-- Revenue of $256.5 million
-- Operating margin of 20.6%
-- Diluted earnings per share of $1.55
BEVERLY, Mass., July 31, 2024 /PRNewswire/ -- Axcelis Technologies, Inc. (NASDAQ: ACLS) today announced financial results for the second quarter ended June 30, 2024. The Company reported second quarter revenue of $256.5 million, compared to $252.4 million for the first quarter of 2024. Gross margin for the quarter was 43.8%, compared to 46.0% in the first quarter. Operating profit for the quarter was $52.8 million, compared to $56.5 million for the first quarter. Net income for the quarter was $50.9 million, or $1.55 per diluted share, compared to $51.6 million, or $1.57 per diluted share in the first quarter.
President and CEO Russell Low commented, "Axcelis delivered strong financial results in the second quarter, exceeding our expectations. This was driven by better-than-expected conversion of evaluation units into revenue as well as continued robust demand in our Power segment - particularly silicon carbide, which continues to be a key growth driver for Axcelis. We are well positioned to execute on our long-term strategy. As we look to the second half of the year, we expect revenue to be slightly better than the first half with momentum expected to build into 2025."
Executive Vice President and Chief Financial Officer Jamie Coogan said, "We are very pleased with our second quarter results. Revenue, operating margin and earnings per share exceeded our guidance for the period, and we delivered another quarter of healthy cash flow. Our product positioning and our disciplined cost structure provide a solid foundation on which to grow revenue and profitability as our markets recover."
Business Outlook
For the third quarter ending September 30, 2024, Axcelis expects revenues of approximately $255 million, and earnings per diluted share of approximately $1.43.
Second Quarter 2024 Conference Call
The Company will host a call to discuss the results for the second quarter 2024 on Thursday, August 1, 2024, at 8:30 a.m. ET. The call will be available via a 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/BIc2d772b56d7b46c0a39772ba7468e5a0
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 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.
CONTACTS:
Investor Relations Contact:
David Ryzhik
Senior Vice President, Investor Relations and Corporate Strategy
Telephone: (978) 787-2352
Email: David.Ryzhik@axcelis.com
Press/Media Relations Contact:?
Maureen Hart
Senior Director, Corporate & Marketing Communications
Telephone: (978) 787-4266
Email: Maureen.Hart@axcelis.com
Axcelis Technologies, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three months ended Six months ended
June 30, June 30,
2024 2023 2024 2023
Revenue:
Product $
245,380 $
265,673 $
488,798 $
511,680
Services 11,132 8,297 20,085 16,310
Total revenue 256,512 273,970 508,883 527,990
Cost of revenue:
Product 134,759 146,741 262,670 289,512
Services 9,344 7,526 17,753 14,756
Total cost of revenue 144,103 154,267 280,423 304,268
Gross profit 112,409 119,703 228,460 223,722
Operating expenses:
Research and development 25,786 24,130 51,448 47,903
Sales and marketing 17,230 15,537 34,675 29,681
General and administrative 16,583 16,328 32,988 31,073
Total operating expenses 59,599 55,995 119,111 108,657
Income from operations 52,810 63,708 109,349 115,065
Other income (expense):
Interest income 6,051 4,307 11,566 8,243
Interest expense (1,339) (1,349) (2,684) (2,702)
Other, net (257) (2,050) (1,968) (3,088)
Total other income 4,455 908 6,914 2,453
Income before income taxes 57,265 64,616 116,263 117,518
Income tax provision 6,399 3,037 13,803 8,242
Net income $
50,866 $
61,579 $
102,460 $
109,276
Net income per share:
Basic $
1.56 $
1.88 $
3.14 $
3.34
Diluted $
1.55 $
1.86 $
3.12 $
3.29
Shares used in computing net income per share:
Basic weighted average shares of common stock 32,598 32,775 32,618 32,759
Diluted weighted average shares of common stock 32,771 33,189 32,848 33,237
Axcelis Technologies, Inc.
Consolidated Balance Sheets
(In thousands, except per share amounts)
(Unaudited)
June 30, December 31,
2024 2023
ASSETS
Current assets:
Cash and cash equivalents $
145,166 $
167,297
Short-term investments 403,143 338,851
Accounts receivable, net 188,080 217,964
Inventories, net 283,090 306,482
Prepaid income taxes 4,107
Prepaid expenses and other current assets 54,741 49,397
Total current assets 1,078,327 1,079,991
Property, plant and equipment, net 52,417 53,971
Operating lease assets 28,918 30,716
Finance lease assets, net 15,989 16,632
Long-term restricted cash 6,651 6,654
Deferred income taxes 55,441 53,428
Other assets 50,662 40,575
Total assets $
1,288,405 $
1,281,967
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $
45,782 $
54,400
Accrued compensation 16,069 31,445
Warranty 14,502 14,098
Income taxes 6,164
Deferred revenue 148,390 164,677
Current portion of finance lease obligation 1,452 1,511
Other current liabilities 17,984 12,834
Total current liabilities 244,179 285,129
Long-term finance lease obligation 43,004 43,674
Long-term deferred revenue 25,621 46,208
Other long-term liabilities 40,653 42,074
Total liabilities 353,457 417,085
Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 32,617 shares issued and 33 33
outstanding at June 30, 2024; 32,685 shares issued and outstanding at December 31, 2023
Additional paid-in capital 542,677 547,189
Retained earnings 396,718 319,506
Accumulated other comprehensive loss (4,480) (1,846)
Total stockholders' equity 934,948 864,882
Total liabilities and stockholders' equity $
1,288,405 $
1,281,967
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SOURCE Axcelis Technologies, Inc.
