Axcelis Announces Financial Results for Third Quarter 2024
-- Revenue of $256.6 million
-- Operating margin of 18.3%
-- Diluted earnings per share of $1.49
BEVERLY, Mass., Nov. 6, 2024 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the third quarter ended September 30, 2024. The Company reported third quarter revenue of $256.6 million, compared to $256.5 million for the second quarter of 2024. Gross margin for the quarter was 42.9%, compared to 43.8% in the second quarter. Operating profit for the quarter was $46.9 million, compared to $52.8 million for the second quarter. Net income for the quarter was $48.6 million, or $1.49 per diluted share, compared to $50.9 million, or $1.55 per diluted share in the second quarter.
President and CEO Russell Low commented, "Axcelis executed well in the third quarter with results relatively in-line with our expectations. While we anticipate a near term digestion of mature node capacity through the first half of 2025, customer engagement is strong and our long-term growth opportunity remains squarely intact highlighted by attractive secular growth in silicon carbide, a cyclical recovery in our memory and general mature markets, market share gains in advanced logic and regional penetration of the Japan market."
Executive Vice President and Chief Financial Officer Jamie Coogan said, "We are pleased with the financial performance delivered by our team thus far in 2024. Our cash generation remains strong, we are engaging with customers across a number of key growth opportunities, and we are investing in our product roadmaps while maintaining discipline in our overall cost structure. All of this, when coupled with our strong balance sheet, put us in position to capture the growth opportunities that lie ahead and drive long-term value creation for shareholders."
Business Outlook
For the fourth quarter ending December 31, 2024, Axcelis expects revenues of approximately $245 million, and earnings per diluted share of approximately $1.25.
Correction of Historical Backlog
During the preparation of the Company's third quarter financial statements, the Axcelis internal financial team identified an error in the calculation of backlog, beginning in 2019 through the second quarter of 2024. For example, corrected backlog as of June 30, 2024 was $879 million, compared to previously reported backlog of $994 million. Backlog as of September 30, 2024 was $758 million.
The corrected historical figures for 2019 through the second quarter of 2024 have been posted to the Investor section of the Axcelis website at investor.axcelis.com.
Third Quarter 2024 Conference Call
The Company will host a call to discuss the results for the third quarter 2024 on Thursday, Nov. 7, 2024, at 8:30 a.m. ET. The call will be available via 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/BI64036dd04ee74de4bea3e1ba939fae67
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 Nine months ended
September 30, September 30,
2024 2023 2024 2023
Revenue:
Product $
246,826 $
283,367 $
735,626 $
795,047
Services 9,738 8,959 29,822 25,269
Total revenue 256,564 292,326 765,448 820,316
Cost of revenue:
Product 136,379 154,798 399,049 444,311
Services 10,215 7,844 27,968 22,600
Total cost of revenue 146,594 162,642 427,017 466,911
Gross profit 109,970 129,684 338,431 353,405
Operating expenses:
Research and development 26,395 24,093 77,843 71,996
Sales and marketing 16,808 16,465 51,483 46,146
General and administrative 19,854 17,446 52,842 48,519
Total operating expenses 63,057 58,004 182,168 166,661
Income from operations 46,913 71,680 156,263 186,744
Other income (expense):
Interest income 6,560 4,580 18,126 12,824
Interest expense (1,333) (1,325) (4,017) (4,027)
Other, net 3,225 (1,260) 1,257 (4,348)
Total other income 8,452 1,995 15,366 4,449
Income before income taxes 55,365 73,675 171,629 191,193
Income tax provision 6,789 7,744 20,593 15,986
Net income $
48,576 $
65,931 $
151,036 $
175,207
Net income per share:
Basic $
1.49 $
2.01 $
4.63 $
5.35
Diluted $
1.49 $
1.99 $
4.61 $
5.28
Shares used in computing net income per share:
Basic weighted average shares of common stock 32,550 32,807 32,595 32,775
Diluted weighted average shares of common stock 32,675 33,159 32,780 33,208
Axcelis Technologies, Inc.
Consolidated Balance Sheets
(In thousands, except per share amounts)
(Unaudited)
September 30, December 31,
2024 2023
ASSETS
Current assets:
Cash and cash equivalents $
120,066 $
167,297
Short-term investments 459,341 338,851
Accounts receivable, net 183,543 217,964
Inventories, net 290,954 306,482
Prepaid income taxes 10,748
Prepaid expenses and other current assets 57,441 49,397
Total current assets 1,122,093 1,079,991
Property, plant and equipment, net 54,454 53,971
Operating lease assets 30,391 30,716
Finance lease assets, net 15,668 16,632
Long-term restricted cash 6,653 6,654
Deferred income taxes 58,938 53,428
Other assets 49,928 40,575
Total assets $
1,338,125 $
1,281,967
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $
54,047 $
54,400
Accrued compensation 23,070 31,445
Warranty 14,547 14,098
Income taxes 6,164
Deferred revenue 138,682 164,677
Current portion of finance lease obligation 1,399 1,511
Other current liabilities 20,519 12,834
Total current liabilities 252,264 285,129
Long-term finance lease obligation 42,671 43,674
Long-term deferred revenue 25,344 46,208
Other long-term liabilities 42,252 42,074
Total liabilities 362,531 417,085
Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 32,504 shares issued and outstanding 33 33
at September 30, 2024; 32,685 shares issued and outstanding at December 31, 2023
Additional paid-in capital 545,350 547,189
Retained earnings 432,429 319,506
Accumulated other comprehensive loss (2,218) (1,846)
Total stockholders' equity 975,594 864,882
Total liabilities and stockholders' equity $
1,338,125 $
1,281,967
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SOURCE Axcelis Technologies, Inc.
