Axcelis Announces Financial Results for Second Quarter 2023

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Aug 02, 2023, 16:01 ET

Financial Results Exceed Guidance Driven by Strong Purion Demand and Strength in Power Devices

BEVERLY, Mass., Aug. 2, 2023 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the second quarter of 2023.

Highlights include:

The Company reported second quarter revenue of $274.0 million, compared to $254.0 million for the first quarter of 2023.
Operating profit for the quarter was $63.7 million, compared to $51.4 million for the first quarter.
Net income for the quarter was $61.6 million, or $1.86 per diluted share, compared to $47.7 million, or $1.43 per diluted share in the first quarter.
Gross margin for the quarter was 43.7%, compared to 40.9% in the first quarter.
Second quarter ended with systems backlog of $1.23 billion on quarterly bookings of $193 million.

President and CEO Russell Low commented, "Axcelis delivered strong second quarter financial performance as a result of significant demand for the Purion product family, especially in the silicon carbide power market. Axcelis is the only company with a product line capable of covering all implant recipes in the mature process technology markets. We now believe it is possible to achieve $1.3 billion in revenue in the next one or two years, depending on market conditions."

Executive Vice President and Chief Financial Officer Kevin Brewer said, "We are very pleased with our second quarter 2023 financial results which finished well above guidance due to solid execution and continuing strong demand for Purion. We are upwardly revising expectations for 2023 revenue to greater than $1.1 billion, representing year over year growth of approximately 20%."

Business Outlook
For the third quarter ending September 30, 2023, Axcelis expects revenues of approximately $280 million. Gross margin in the third quarter is expected to be approximately 44%. Third quarter operating profit is forecast to be approximately $64 million with earnings per diluted share of approximately $1.72. For the full year, the Company expects to achieve revenue greater than $1.1 billion and to achieve full year gross margins of approximately 44% as shown in the $1.1 billion model.

Second Quarter 2023 Conference Call
The Company will host a call to discuss the results for the second quarter on Thursday, August 3, 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/BI9757e7e7d17f4188872f4146e314ba26. 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 revenues, gross margin, operating profit and other guidance for our future financial performance and spending in our industry, 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				Six months ended
		June 30,				June 30,
	2023		2022		2023		2022
Revenue:
Product	$	265,673	$	213,926	$	511,680	$	410,458
Services		8,297		7,251		16,310		14,314
Total revenue		273,970		221,177		527,990		424,772
Cost of revenue:
Product		146,741		115,754		289,512		223,395
Services		7,526		6,242		14,756		12,429
Total cost of revenue		154,267		121,996		304,268		235,824
Gross profit		119,703		99,181		223,722		188,948
Operating expenses:
Research and development		24,130		18,731		47,903		35,704
Sales and marketing		15,537		12,703		29,681		23,994
General and administrative		16,328		13,602		31,073		26,180
Total operating expenses		55,995		45,036		108,657		85,878
Income from operations		63,708		54,145		115,065		103,070
Other income (expense):
Interest income		4,307		352		8,243		447
Interest expense		(1,349)		(1,250)		(2,702)		(2,768)
Other, net		(2,050)		(5,051)		(3,088)		(6,669)
Total other income (expense)		908		(5,949)		2,453		(8,990)
Income before income taxes		64,616		48,196		117,518		94,080
Income tax provision		3,037		4,007		8,242		8,276
Net income	$	61,579	$	44,189	$	109,276	$	85,804
Net income per share:
Basic	$	1.88	$	1.34	$	3.34	$	2.59
Diluted	$	1.86	$	1.32	$	3.29	$	2.54
Shares used in computing net income per share:
Basic weighted average shares of common stock		32,775		33,096		32,759		33,170
Diluted weighted average shares of common stock		33,189		33,562		33,237		33,770

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

	June 30,		December 31,
	2023		2022
ASSETS
Current assets:
Cash and cash equivalents	$	132,504	$	185,595
Short-term investments		320,360		246,571
Accounts receivable, net		159,199		169,773
Inventories, net		299,841		242,406
Prepaid expenses and other current assets		38,265		33,300
Total current assets		950,169		877,645
Property, plant and equipment, net		43,156		39,664
Operating lease assets		31,998		12,146
Finance lease assets, net		17,305		17,942
Long-term restricted cash		6,652		752
Deferred income taxes		38,944		31,701
Other assets		33,494		33,791
Total assets	$	1,121,718	$	1,013,641
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	60,504	$	62,346
Accrued compensation		17,216		35,540
Warranty		10,867		8,299
Income taxes		6,598		4,304
Deferred revenue		138,890		123,471
Current portion of finance lease obligation		1,367		1,229
Other current liabilities		13,018		12,943
Total current liabilities		248,460		248,132
Long-term finance lease obligation		44,455		45,185
Long-term deferred revenue		43,650		31,306
Other long-term liabilities		41,116		21,762
Total liabilities		377,681		346,385

Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 32,836 shares issued and outstanding at June 30, 2023; 32,775 shares issued and outstanding at December 31, 2022		33		33
Additional paid-in capital		540,120		550,299
Retained earnings		206,813		118,892
Accumulated other comprehensive loss		(2,929)		(1,968)
Total stockholders' equity		744,037		667,256
Total liabilities and stockholders' equity	$	1,121,718	$	1,013,641