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: (978) 787-2352

Email: David.Ryzhik@axcelis.com

Press/Media Relations Contact: 

Maureen Hart

Senior Director, Corporate & Marketing Communications

Telephone: (978) 787-4266

Email: Maureen.Hart@axcelis.com

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

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SOURCE Axcelis Technologies, Inc.

Axcelis Announces Financial Results for Second Quarter 2024