Financial Results Continue to be Driven by
Strong Purion Demand in the Global Silicon Carbide Power
Device Market
BEVERLY,
Mass., Nov. 1, 2023 /PRNewswire/ -- Axcelis
Technologies, Inc. (Nasdaq: ACLS) today announced financial results
for the third quarter of 2023.
Highlights include:
- The Company reported third quarter revenue of $292.3 million, compared to $274.0 million for the second quarter of
2023.
- Operating profit for the quarter was $71.7 million, compared to $63.7 million for the second quarter.
- Net income for the quarter was $65.9
million, or $1.99 per diluted
share, compared to $61.6 million, or
$1.86 per diluted share in the second
quarter.
- Gross margin for the quarter was 44.4%, compared to 43.7% in
the second quarter.
- Third quarter ended with systems backlog of $1.2 billion on quarterly bookings of
$198 million.
President and CEO Russell Low
commented, "Axcelis delivered strong third quarter financial
performance due to robust demand for the Purion product family,
especially in the silicon carbide power market. Axcelis is the only
company with a product line that can deliver complete recipe
coverage for all power device applications. We are the technology
leader and the supplier of choice providing the best device
manufacturing capabilities. This uniquely positions Axcelis to
benefit from high growth in this market. Axcelis expects to achieve
revenue of greater than $1.1 billion
in 2023."
Executive Vice President and Chief Financial Officer
James Coogan said, "We are very
pleased with our third quarter 2023 financial results. Revenue, EPS
and gross margins all finished well above guidance. Axcelis has had
the rare opportunity to grow revenue 20% year over year as well as
improve profitability during a significant industry downturn. This
is a result of strong product positioning and continued strong
execution in a challenging environment."
Business Outlook
For the fourth quarter ending December 31,
2023, Axcelis expects revenues of approximately $295 million. Gross margin in the fourth quarter
is expected to be approximately 45%. Fourth quarter operating
profit is forecast to be approximately $73
million with earnings per diluted share of approximately
$2.00. For the full year, the Company
expects to achieve revenue of greater than $1.1 billion and to achieve full year gross
margins of approximately 43.6% as shown in the $1.1 billion model.
Third Quarter 2023 Conference Call
The Company will host a call to discuss the results for the third
quarter on Thursday, November 2,
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/BI1a199f2035664eafaa3226da79b560e5.
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
|
|
Nine months
ended
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
$
|
283,367
|
|
$
|
221,540
|
|
$
|
795,047
|
|
$
|
631,998
|
|
Services
|
|
|
8,959
|
|
|
7,635
|
|
|
25,269
|
|
|
21,949
|
|
Total
revenue
|
|
|
292,326
|
|
|
229,175
|
|
|
820,316
|
|
|
653,947
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
|
154,798
|
|
|
118,992
|
|
|
444,311
|
|
|
342,387
|
|
Services
|
|
|
7,844
|
|
|
6,862
|
|
|
22,600
|
|
|
19,291
|
|
Total cost of
revenue
|
|
|
162,642
|
|
|
125,854
|
|
|
466,911
|
|
|
361,678
|
|
Gross profit
|
|
|
129,684
|
|
|
103,321
|
|
|
353,405
|
|
|
292,269
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
24,093
|
|
|
20,563
|
|
|
71,996
|
|
|
56,267
|
|
Sales and
marketing
|
|
|
16,465
|
|
|
14,573
|
|
|
46,146
|
|
|
38,567
|
|
General and
administrative
|
|
|
17,446
|
|
|
14,983
|
|
|
48,519
|
|
|
41,163
|
|
Total operating
expenses
|
|
|
58,004
|
|
|
50,119
|
|
|
166,661
|
|
|
135,997
|
|
Income from
operations
|
|
|
71,680
|
|
|
53,202
|
|
|
186,744
|
|
|
156,272
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
4,580
|
|
|
1,111
|
|
|
12,824
|
|
|
1,558
|
|
Interest
expense
|
|
|
(1,325)
|
|
|
(1,333)
|
|
|
(4,027)
|
|
|
(4,101)
|
|
Other, net
|
|
|
(1,260)
|
|
|
(7,971)
|
|
|
(4,348)
|
|
|
(14,640)
|
|
Total other income
(expense)
|
|
|
1,995
|
|
|
(8,193)
|
|
|
4,449
|
|
|
(17,183)
|
|
Income before income
taxes
|
|
|
73,675
|
|
|
45,009
|
|
|
191,193
|
|
|
139,089
|
|
Income tax
provision
|
|
|
7,744
|
|
|
4,726
|
|
|
15,986
|
|
|
13,002
|
|
Net income
|
|
$
|
65,931
|
|
$
|
40,283
|
|
$
|
175,207
|
|
$
|
126,087
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
2.01
|
|
$
|
1.22
|
|
$
|
5.35
|
|
$
|
3.81
|
|
Diluted
|
|
$
|
1.99
|
|
$
|
1.21
|
|
$
|
5.28
|
|
$
|
3.75
|
|
Shares used in
computing net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average
shares of common stock
|
|
|
32,807
|
|
|
33,011
|
|
|
32,775
|
|
|
33,116
|
|
Diluted weighted
average shares of common stock
|
|
|
33,159
|
|
|
33,389
|
|
|
33,208
|
|
|
33,638
|
|
Axcelis
Technologies, Inc.
Consolidated Balance
Sheets
(In thousands,
except per share amounts)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
2023
|
|
2022
|
|
ASSETS
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
142,300
|
|
$
|
185,595
|
|
Short-term
investments
|
|
|
318,710
|
|
|
246,571
|
|
Accounts receivable,
net
|
|
|
192,327
|
|
|
169,773
|
|
Inventories,
net
|
|
|
312,223
|
|
|
242,406
|
|
Prepaid expenses and
other current assets
|
|
|
49,481
|
|
|
33,300
|
|
Total current
assets
|
|
|
1,015,041
|
|
|
877,645
|
|
Property, plant and
equipment, net
|
|
|
47,169
|
|
|
39,664
|
|
Operating lease
assets
|
|
|
31,082
|
|
|
12,146
|
|
Finance lease assets,
net
|
|
|
16,981
|
|
|
17,942
|
|
Long-term restricted
cash
|
|
|
6,650
|
|
|
752
|
|
Deferred income
taxes
|
|
|
44,323
|
|
|
31,701
|
|
Other assets
|
|
|
40,448
|
|
|
33,791
|
|
Total
assets
|
|
$
|
1,201,694
|
|
$
|
1,013,641
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
60,061
|
|
$
|
62,346
|
|
Accrued
compensation
|
|
|
26,535
|
|
|
35,540
|
|
Warranty
|
|
|
11,464
|
|
|
8,299
|
|
Income
taxes
|
|
|
582
|
|
|
4,304
|
|
Deferred
revenue
|
|
|
148,299
|
|
|
123,471
|
|
Current portion of
finance lease obligation
|
|
|
1,438
|
|
|
1,229
|
|
Other current
liabilities
|
|
|
12,799
|
|
|
12,943
|
|
Total current
liabilities
|
|
|
261,178
|
|
|
248,132
|
|
Long-term finance lease
obligation
|
|
|
44,070
|
|
|
45,185
|
|
Long-term deferred
revenue
|
|
|
53,730
|
|
|
31,306
|
|
Other long-term
liabilities
|
|
|
41,745
|
|
|
21,762
|
|
Total
liabilities
|
|
|
400,723
|
|
|
346,385
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Common stock, $0.001
par value, 75,000 shares authorized; 32,772 shares issued and
outstanding at September 30, 2023; 32,775 shares issued and
outstanding at December 31,
2022
|
|
|
33
|
|
|
33
|
|
Additional paid-in
capital
|
|
|
543,577
|
|
|
550,299
|
|
Retained
earnings
|
|
|
261,521
|
|
|
118,892
|
|
Accumulated other
comprehensive loss
|
|
|
(4,160)
|
|
|
(1,968)
|
|
Total stockholders'
equity
|
|
|
800,971
|
|
|
667,256
|
|
Total liabilities and
stockholders' equity
|
|
$
|
1,201,694
|
|
$
|
1,013,641
|
|
|
|
|
|
|
|
|
|
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SOURCE Axcelis Technologies, Inc.