Axcelis Announces Financial Results for Fourth Quarter and Full Year 2023

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Feb 07, 2024, 16:01 ET

Record Revenue for 2023, Achieving Year-Over-Year Growth of 23%

BEVERLY, Mass., Feb. 7, 2024 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the fourth quarter and full year ended December 31, 2023.

Highlights include:

Record full year revenue, operating profit and EPS, enabling the Company to surpass its $1.1 billion revenue model.
Continued strong growth from the Purion Power Series™ product line.
Significant increase in Purion™ installed base drove record CS&I revenue.
Year-end systems backlog of $1.2 billion.

For the full year 2023, the Company reported revenue of $1.13 billion, compared with $920 million for the full year 2022, an increase of 23% and a company record. Systems revenue for the year was $883.6 million, compared to $692.1 million in 2022, an increase of 28%, also a company record. Operating profit was $265.8 million in 2023, compared to $212.4 million in 2022, a 25% increase and a company record. Net income for the year was $246.3 million with diluted earnings per share of $7.43, compared to net income of $183.1 million and diluted earnings per share of $5.46 in 2022, resulting in a 35% net income year over year increase. Gross margin for the year was 43.5%, compared to 43.7% in 2022.

The Company reported fourth quarter revenue of $310.3 million, compared to $292.3 million for the third quarter of 2023. Operating profit for the quarter was $79.1 million, compared to $71.7 million for the third quarter. Net income for the quarter was $71.1 million, or $2.15 per diluted share, compared to $65.9 million, or $1.99 per diluted share in the third quarter. Gross margin for the quarter was 44.4%, unchanged from the third quarter. The fourth quarter ended with bookings of $235.5 million and a systems backlog of $1.2 billion.

President and CEO Russell Low commented, "2023 was another outstanding year for Axcelis. As a result of strong execution by the Axcelis team and robust demand for the Purion Power Series product family, we achieved 23% year-over-year revenue growth during an industry downturn. We have developed a large and diverse customer base in the power market, and we continue to win business from new customers as well as expand our product footprint with existing customers. We believe that the mature process technology and memory segments, two markets in which Axcelis is well-positioned, will recover in the second half of the year, enabling strong growth in 2025."

Executive Vice President and Chief Financial Officer Jamie Coogan said, "We are extremely pleased with our 2023 results, and excited about our future growth. Our revenue and earnings per share finished above our revised guidance, and we ended the quarter with robust cash flow and a strong balance sheet. As we look to 2024, we will continue to make investments in R&D while managing expenses, setting us up to achieve our $1.3 billion revenue model in 2025."

Business Outlook
For the first quarter ending March 31, 2024, Axcelis expects revenues of approximately $242 million. First quarter operating profit is forecast to be approximately $45 million with earnings per diluted share of around $1.22. Gross margin in the first quarter is expected to be approximately 43.5%, and for the full year we expect it to improve year over year but could fluctuate quarter to quarter. We expect full year 2024 revenue to be similar to 2023, with revenue weighted toward the second half.

Fourth Quarter and Full Year 2023 Conference Call
The Company will release financial results for the fourth quarter and full year 2023 on Wednesday, February 7, 2024, 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 2023 on Thursday, February 8, 2024, 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://edge.media-server.com/mmc/p/su3u4oev. 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.

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,
	2023		2022		2023		2022
Revenue:
Product	$	300,603	$	258,584	$	1,095,650	$	890,582
Services		9,685		7,467		34,954		29,416
Total revenue		310,288		266,051		1,130,604		919,998
Cost of revenue:
Product		163,801		149,717		608,112		492,104
Services		8,591		6,813		31,191		26,104
Total cost of revenue		172,392		156,530		639,303		518,208
Gross profit		137,896		109,521		491,301		401,790
Operating expenses:
Research and development		24,911		22,089		96,907		78,356
Sales and marketing		16,659		15,032		62,805		53,599
General and administrative		17,275		16,311		65,794		57,474
Total operating expenses		58,845		53,432		225,506		189,429
Income from operations		79,051		56,089		265,795		212,361
Other income (expense):
Interest income		5,375		2,993		18,199		4,551
Interest expense		(1,320)		(1,475)		(5,347)		(5,576)
Other, net		4,300		8,189		(48)		(6,451)
Total other income (expense)		8,355		9,707		12,804		(7,476)
Income before income taxes		87,406		65,796		278,599		204,885
Income tax provision		16,350		8,804		32,336		21,806
Net income	$	71,056	$	56,992	$	246,263	$	183,079
Net income per share:
Basic	$	2.17	$	1.74	$	7.52	$	5.54
Diluted	$	2.15	$	1.71	$	7.43	$	5.46
Shares used in computing net income per share:
Basic weighted average shares of common stock		32,708		32,823		32,758		33,043
Diluted weighted average shares of common stock		33,031		33,262		33,165		33,542

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

	December 31,		December 31,
	2023		2022
ASSETS
Current assets:
Cash and cash equivalents	$	167,297	$	185,595
Short-term investments		338,851		246,571
Accounts receivable, net		217,964		169,773
Inventories, net		306,482		242,406
Prepaid expenses and other current assets		49,397		33,300
Total current assets		1,079,991		877,645
Property, plant and equipment, net		53,971		39,664
Operating lease assets		30,716		12,146
Finance lease assets, net		16,632		17,942
Long-term restricted cash		6,654		752
Deferred income taxes		53,428		31,701
Other assets		40,575		33,791
Total assets	$	1,281,967	$	1,013,641
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	54,400	$	62,346
Accrued compensation		31,445		35,540
Warranty		14,098		8,299
Income taxes		6,164		4,304
Deferred revenue		164,677		123,471
Current portion of finance lease obligation		1,511		1,229
Other current liabilities		12,834		12,943
Total current liabilities		285,129		248,132
Long-term finance lease obligation		43,674		45,185
Long-term deferred revenue		46,208		31,306
Other long-term liabilities		42,074		21,762
Total liabilities		417,085		346,385

Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 32,685 shares issued and outstanding at December 31, 2023; 32,775 shares issued and outstanding at December 31, 2022		33		33
Additional paid-in capital		547,189		550,299
Retained earnings		319,506		118,892
Accumulated other comprehensive loss		(1,846)		(1,968)
Total stockholders' equity		864,882		667,256
Total liabilities and stockholders' equity	$	1,281,967	$	1,013,641