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.
Financial Results Exceed Guidance Driven by
Strong Purion Demand and Strength in Power Devices
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
|
|
|
|
|
|
|
|
|
|
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SOURCE Axcelis Technologies, Inc.