Axcelis Technologies, Inc.: Axcelis Announces Financial Results for Second Quarter 2024

• Revenue of $256.5 million
• Operating margin of 20.6%
• Diluted earnings per share of $1.55

BEVERLY, Mass., July 31, 2024 /PRNewswire/ -- Axcelis Technologies, Inc. (NASDAQ: ACLS) today announced financial results for the second quarter ended June 30, 2024. The Company reported second quarter revenue of $256.5 million, compared to $252.4 million for the first quarter of 2024. Gross margin for the quarter was 43.8%, compared to 46.0% in the first quarter. Operating profit for the quarter was $52.8 million, compared to $56.5 million for the first quarter. Net income for the quarter was $50.9 million, or $1.55 per diluted share, compared to $51.6 million, or $1.57 per diluted share in the first quarter.

President and CEO Russell Low commented, "Axcelis delivered strong financial results in the second quarter, exceeding our expectations. This was driven by better-than-expected conversion of evaluation units into revenue as well as continued robust demand in our Power segment - particularly silicon carbide, which continues to be a key growth driver for Axcelis. We are well positioned to execute on our long-term strategy. As we look to the second half of the year, we expect revenue to be slightly better than the first half with momentum expected to build into 2025."

Executive Vice President and Chief Financial Officer Jamie Coogan said, "We are very pleased with our second quarter results. Revenue, operating margin and earnings per share exceeded our guidance for the period, and we delivered another quarter of healthy cash flow. Our product positioning and our disciplined cost structure provide a solid foundation on which to grow revenue and profitability as our markets recover."

Business Outlook
For the third quarter ending September 30, 2024, Axcelis expects revenues of approximately $255 million, and earnings per diluted share of approximately $1.43.

Second Quarter 2024 Conference Call
The Company will host a call to discuss the results for the second quarter 2024 on Thursday, August 1, 2024, at 8:30 a.m. ET. The call will be available via a 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/BIc2d772b56d7b46c0a39772ba7468e5a0

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: [phone]
Email: [email protected]

Press/Media Relations Contact:?
Maureen Hart
Senior Director, Corporate & Marketing Communications
Telephone: [phone]
Email: [email protected]

Axcelis Technologies, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
		Three months ended						Six months ended
			June 30,					June 30,
		2024			2023			2024			2023
Revenue:
Product		$	245,380		$	265,673		$	488,798		$	511,680
Services			11,132			8,297			20,085			16,310
Total revenue			256,512			273,970			508,883			527,990
Cost of revenue:
Product			134,759			146,741			262,670			289,512
Services			9,344			7,526			17,753			14,756
Total cost of revenue			144,103			154,267			280,423			304,268
Gross profit			112,409			119,703			228,460			223,722
Operating expenses:
Research and development			25,786			24,130			51,448			47,903
Sales and marketing			17,230			15,537			34,675			29,681
General and administrative			16,583			16,328			32,988			31,073
Total operating expenses			59,599			55,995			119,111			108,657
Income from operations			52,810			63,708			109,349			115,065
Other income (expense):
Interest income			6,051			4,307			11,566			8,243
Interest expense			(1,339)			(1,349)			(2,684)			(2,702)
Other, net			(257)			(2,050)			(1,968)			(3,088)
Total other income			4,455			908			6,914			2,453
Income before income taxes			57,265			64,616			116,263			117,518
Income tax provision			6,399			3,037			13,803			8,242
Net income		$	50,866		$	61,579		$	102,460		$	109,276
Net income per share:
Basic		$	1.56		$	1.88		$	3.14		$	3.34
Diluted		$	1.55		$	1.86		$	3.12		$	3.29
Shares used in computing net income per share:
Basic weighted average shares of common stock			32,598			32,775			32,618			32,759
Diluted weighted average shares of common stock			32,771			33,189			32,848			33,237

Axcelis Technologies, Inc.
Consolidated Balance Sheets
(In thousands, except per share amounts)
(Unaudited)
		June 30,			December 31,
		2024			2023
ASSETS
Current assets:
Cash and cash equivalents		$	145,166		$	167,297
Short-term investments			403,143			338,851
Accounts receivable, net			188,080			217,964
Inventories, net			283,090			306,482
Prepaid income taxes			4,107			-
Prepaid expenses and other current assets			54,741			49,397
Total current assets			1,078,327			1,079,991
Property, plant and equipment, net			52,417			53,971
Operating lease assets			28,918			30,716
Finance lease assets, net			15,989			16,632
Long-term restricted cash			6,651			6,654
Deferred income taxes			55,441			53,428
Other assets			50,662			40,575
Total assets		$	1,288,405		$	1,281,967
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	45,782		$	54,400
Accrued compensation			16,069			31,445
Warranty			14,502			14,098
Income taxes			-			6,164
Deferred revenue			148,390			164,677
Current portion of finance lease obligation			1,452			1,511
Other current liabilities			17,984			12,834
Total current liabilities			244,179			285,129
Long-term finance lease obligation			43,004			43,674
Long-term deferred revenue			25,621			46,208
Other long-term liabilities			40,653			42,074
Total liabilities			353,457			417,085
Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 32,617 shares issued and outstanding at June 30, 2024; 32,685 shares issued and outstanding at December 31, 2023			33			33
Additional paid-in capital			542,677			547,189
Retained earnings			396,718			319,506
Accumulated other comprehensive loss			(4,480)			(1,846)
Total stockholders' equity			934,948			864,882
Total liabilities and stockholders' equity		$	1,288,405		$	1,281,967

SOURCE Axcelis Technologies, Inc.