AXCELIS ANNOUNCES FINANCIAL RESULTS FOR SECOND QUARTER 2022

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Aug 03, 2022, 16:01 ET

System Bookings and Backlog Continue to Hit Record Levels

BEVERLY, Mass., Aug. 3, 2022 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the second quarter 2022.

Highlights for the second quarter are as follows:

The Company reported second quarter revenue of $221.2 million, compared to $203.6 million for the first quarter of 2022.
Operating profit for the quarter was $54.1 million, compared to $48.9 million for the first quarter.
Net income for the quarter was $44.2 million, or $1.32 per diluted share, compared to $41.6 million, or $1.22 per diluted share in the first quarter.
Gross margin for the quarter was 44.8%, compared to 44.1% in the first quarter.
Record systems backlog of $869.5 million and bookings of $432.8 million in the second quarter.
Cash, cash equivalents and restricted cash were $287.9 million on June 30, 2022, compared to $297.9 million on March 31, 2022. This is net of $12.5 million of repurchased shares in the second quarter.

President and CEO Mary Puma commented, "Axcelis delivered outstanding second quarter financial performance well above our guidance due to robust demand and our strong execution. It is an exciting time for Axcelis with significant growth in the ion implant TAM, solid customer demand for our products and long term growth prospects in the power device market. System bookings and shipments continue to hit record levels. As a result, Axcelis now expects to achieve revenue of greater than $875 million in 2022."

Business Outlook
For the third quarter ending September 30, 2022, Axcelis expects revenues of $220 - $228 million. Gross margin in the third quarter is expected to be approximately 42%. Third quarter operating profit is forecast to be between $44.5 - $47.5 million with earnings per diluted share between $1.10 - $1.15. For the full year, the Company expects to achieve revenue of greater than $875 million with gross margins of approximately 42.5%.

Second Quarter 2022 Conference Call
The Company will host a call to discuss the results for the second quarter 2022 on Thursday, August 4, 2022 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/BI9300aa06c3a84686ae778970f11de3e8

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				Six months ended
		June 30,			June 30,
	2022		2021		2022		2021
Revenue:
Product	$	213,926	$	140,156	$	410,458	$	266,765
Services		7,251		7,118		14,314		13,285
Total revenue		221,177		147,274		424,772		280,050
Cost of revenue:
Product		115,754		76,688		223,395		147,022
Services		6,242		6,572		12,429		12,579
Total cost of revenue		121,996		83,260		235,824		159,601
Gross profit		99,181		64,014		188,948		120,449
Operating expenses:
Research and development		18,731		16,623		35,704		32,308
Sales and marketing		12,703		12,177		23,994		22,564
General and administrative		13,602		11,217		26,180		21,230
Total operating expenses		45,036		40,017		85,878		76,102
Income from operations		54,145		23,997		103,070		44,347
Other (expense) income:
Interest income		352		40		447		73
Interest expense		(1,250)		(1,274)		(2,768)		(2,303)
Other, net		(5,051)		(15)		(6,669)		(1,168)
Total other expense		(5,949)		(1,249)		(8,990)		(3,398)
Income before income taxes		48,196		22,748		94,080		40,949
Income tax provision		4,007		3,842		8,276		5,563
Net income	$	44,189	$	18,906	$	85,804	$	35,386
Net income per share:
Basic	$	1.34	$	0.56	$	2.59	$	1.05
Diluted	$	1.32	$	0.55	$	2.54	$	1.03
Shares used in computing net income per share:
Basic weighted average common shares		33,096		33,677		33,170		33,696
Diluted weighted average common shares		33,562		34,311		33,770		34,473

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

	June 30,		December 31,
	2022		2021
ASSETS
Current assets:
Cash and cash equivalents	$	287,167	$	294,923
Accounts receivable, net		146,120		104,410
Inventories, net		213,063		194,984
Prepaid expenses and other current assets		33,378		24,929
Total current assets		679,728		619,246
Property, plant and equipment, net		35,572		34,972
Operating lease assets		10,879		9,242
Finance lease assets, net		18,590		19,238
Long-term restricted cash		753		757
Deferred income taxes		33,715		35,454
Other assets		32,499		34,331
Total assets	$	811,736	$	753,240
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	49,410	$	38,025
Accrued compensation		17,150		30,732
Warranty		8,348		6,424
Income taxes		321		887
Deferred revenue		62,685		60,454
Current portion of finance lease obligation		1,101		979
Other current liabilities		13,955		12,639
Total current liabilities		152,970		150,140
Long-term finance lease obligation		45,822		46,415
Long-term deferred revenue		8,864		7,982
Other long-term liabilities		17,153		9,744
Total liabilities		224,809		214,281

Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 33,094 shares issued and outstanding at June 30, 2022; 33,240 shares issued and outstanding at December 31, 2021		33		33
Additional paid-in capital		549,401		559,883
Retained earnings (accumulated deficit)		39,582		(22,722)
Accumulated other comprehensive (loss) income		(2,089)		1,765
Total stockholders' equity		586,927		538,959
Total liabilities and stockholders' equity	$	811,736	$	753,240