Axcelis Announces Financial Results for Fourth Quarter and Full Year 2022

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Feb 08, 2023, 16:01 ET

Achieved Record Annual Revenue, Gross Margin and EPS

BEVERLY, Mass., Feb. 8, 2023 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the fourth quarter and full year ended December 31, 2022.

Highlights include:

Record full year revenue, gross margin and EPS, enabling the Company to surpass its $850M revenue model
The power device market segment accounted for 39% of our 2022 shipped systems revenue, driven by strong growth of the Purion Power Series™ product line
Year ending record backlog of greater than $1.1B

For the full year 2022, the Company reported revenue of $920 million, compared with $662.4 million for the full year 2021, an increase of 39% and a company record. Systems revenue for the year was $692.1 million, compared to $454.6 million in 2021, an increase of 52%, also a company record. Operating profit was $212.4 million in 2022, compared to $127.3 million in 2021, a 67% increase and a company record. Net income for the year was $183.1 million with diluted earnings per share of $5.46, compared to net income of $98.7 million and diluted earnings per share of $2.88 in 2021, resulting in a 86% net income year over year increase. Gross margin for the year was 43.7%, a 50 basis point improvement compared to 43.2% in 2021 and a company record.

The Company reported fourth quarter revenue of $266.1 million, compared to $229.2 million for the third quarter of 2022. Operating profit for the quarter was $56.1 million, compared to $53.2 million for the third quarter. Net income for the quarter was $57.0 million, or $1.71 per diluted share, compared to $40.3 million, or $1.21 per diluted share in the third quarter. Gross margin for the quarter was 41.2%, compared to 45.1% in the third quarter. Fourth quarter ended with bookings of $211.5 million and record systems backlog of $1.1 billion. Cash, cash equivalents and short-term investments were $432.2 million on December 31, 2022, compared to $342.1 million on September 30, 2022. This is net of $12.5 million of repurchased shares in the fourth quarter.

President and CEO Mary Puma commented, "2022 was another outstanding year for Axcelis. As a result of strong execution by the Axcelis team and robust demand for the Purion product family, we delivered record quarterly and annual revenues, and we surpassed our $850M revenue model. For the full year 2023 Axcelis revenues are expected to exceed $1 billion dollars and we are introducing a new long-term implant only model with revenue of $1.3 billion dollars that we believe is achievable within the next 2 to 3 years."

Executive Vice President and Chief Financial Officer Kevin Brewer said, "We are extremely pleased with our 2022 results, and very excited about our projected growth. As a result of the success of Purion and tight control of our cost structure, Axcelis' profitability has improved significantly and we expect further gains in 2023 and beyond."

Business Outlook
For the first quarter ending March 31, 2023, Axcelis expects revenues of approximately $240 million. Gross margin in the first quarter is expected to be approximately 41.5%. First quarter operating profit is forecast to be approximately $48 million with earnings per diluted share of around $1.25. For the full year, the Company expects to achieve revenue of greater than $1 billion. Assuming expected improvements in supply chain costs and product mix occur in the second half of the year, we would expect to achieve full year gross margins of approximately 44% as shown in the $1B model.

Fourth Quarter and Full Year 2022 Conference Call
The Company will host a call to discuss the results for the fourth quarter and full year 2022 on Thursday, February 9, 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/BI2c9198cd02354e0fb92ddec100489c61. 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				Twelve months ended
		December 31,			December 31,
	2022		2021		2022		2021
Revenue:
Product	$	258,584	$	198,529	$	890,582	$	634,445
Services		7,467		7,155		29,416		27,983
Total revenue		266,051		205,684		919,998		662,428
Cost of revenue:
Product		149,717		109,335		492,104		349,558
Services		6,813		6,865		26,104		26,425
Total cost of revenue		156,530		116,200		518,208		375,983
Gross profit		109,521		89,484		401,790		286,445
Operating expenses:
Research and development		22,089		16,416		78,356		65,431
Sales and marketing		15,032		13,569		53,599		47,548
General and administrative		16,311		12,915		57,474		46,141
Total operating expenses		53,432		42,900		189,429		159,120
Income from operations		56,089		46,584		212,361		127,325
Other income (expense):
Interest income		2,993		85		4,551		209
Interest expense		(1,475)		(1,263)		(5,576)		(4,835)
Other, net		8,189		(140)		(6,451)		(2,271)
Total other income (expense)		9,707		(1,318)		(7,476)		(6,897)
Income before income taxes		65,796		45,266		204,885		120,428
Income tax provision		8,804		9,517		21,806		21,778
Net income	$	56,992	$	35,749	$	183,079	$	98,650
Net income per share:
Basic	$	1.74	$	1.07	$	5.54	$	2.94
Diluted	$	1.71	$	1.05	$	5.46	$	2.88
Shares used in computing net income per share:
Basic weighted average common shares		32,823		33,295		33,043		33,555
Diluted weighted average common shares		33,262		34,011		33,542		34,268

Axcelis Technologies, Inc.
Consolidated Balance Sheets
(In thousands, except per share amounts)
(Unaudited)

	December 31,		December 31,
	2022		2021
ASSETS
Current assets:
Cash and cash equivalents	$	185,595	$	294,923
Short-term investments		246,571		—
Accounts receivable, net		169,773		104,410
Inventories, net		242,406		194,984
Prepaid expenses and other current assets		33,300		24,929
Total current assets		877,645		619,246
Property, plant and equipment, net		39,664		34,972
Operating lease assets		12,146		9,242
Finance lease assets, net		17,942		19,238
Long-term restricted cash		752		757
Deferred income taxes		31,701		35,454
Other assets		33,791		34,331
Total assets	$	1,013,641	$	753,240
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	62,346	$	38,025
Accrued compensation		35,540		30,732
Warranty		8,299		6,424
Income taxes		4,304		887
Deferred revenue		123,471		60,454
Current portion of finance lease obligation		1,229		979
Other current liabilities		12,943		12,639
Total current liabilities		248,132		150,140
Long-term finance lease obligation		45,185		46,415
Long-term deferred revenue		31,306		7,982
Other long-term liabilities		21,762		9,744
Total liabilities		346,385		214,281

Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 32,775 shares issued and outstanding at December 31, 2022; 33,240 shares issued and outstanding at December 31, 2021		33		33
Additional paid-in capital		550,299		559,883
Retained earnings (accumulated deficit)		118,892		(22,722)
Accumulated other comprehensive (loss) income		(1,968)		1,765
Total stockholders' equity		667,256		538,959
Total liabilities and stockholders' equity	$	1,013,641	$	753,240