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) |
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| Three months ended |
| Nine months ended |
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| September 30, |
| September 30, |
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| 2023 |
| 2022 |
| 2023 |
| 2022 |
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Revenue: |
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Product |
| $ | 283,367 |
| $ | 221,540 |
| $ | 795,047 |
| $ | 631,998 |
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Services |
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| 8,959 |
|
| 7,635 |
|
| 25,269 |
|
| 21,949 |
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Total revenue |
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| 292,326 |
|
| 229,175 |
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| 820,316 |
|
| 653,947 |
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Cost of revenue: |
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Product |
|
| 154,798 |
|
| 118,992 |
|
| 444,311 |
|
| 342,387 |
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Services |
|
| 7,844 |
|
| 6,862 |
|
| 22,600 |
|
| 19,291 |
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Total cost of revenue |
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| 162,642 |
|
| 125,854 |
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| 466,911 |
|
| 361,678 |
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Gross profit |
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| 129,684 |
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| 103,321 |
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| 353,405 |
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| 292,269 |
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Operating expenses: |
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Research and development |
|
| 24,093 |
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| 20,563 |
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| 71,996 |
|
| 56,267 |
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Sales and marketing |
|
| 16,465 |
|
| 14,573 |
|
| 46,146 |
|
| 38,567 |
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General and administrative |
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| 17,446 |
|
| 14,983 |
|
| 48,519 |
|
| 41,163 |
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Total operating expenses |
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| 58,004 |
|
| 50,119 |
|
| 166,661 |
|
| 135,997 |
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Income from operations |
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| 71,680 |
|
| 53,202 |
|
| 186,744 |
|
| 156,272 |
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Other income (expense): |
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Interest income |
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| 4,580 |
|
| 1,111 |
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| 12,824 |
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| 1,558 |
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Interest expense |
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| (1,325) |
|
| (1,333) |
|
| (4,027) |
|
| (4,101) |
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Other, net |
|
| (1,260) |
|
| (7,971) |
|
| (4,348) |
|
| (14,640) |
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Total other income (expense) |
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| 1,995 |
|
| (8,193) |
|
| 4,449 |
|
| (17,183) |
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Income before income taxes |
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| 73,675 |
|
| 45,009 |
|
| 191,193 |
|
| 139,089 |
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Income tax provision |
|
| 7,744 |
|
| 4,726 |
|
| 15,986 |
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| 13,002 |
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Net income |
| $ | 65,931 |
| $ | 40,283 |
| $ | 175,207 |
| $ | 126,087 |
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Net income per share: |
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Basic |
| $ | 2.01 |
| $ | 1.22 |
| $ | 5.35 |
| $ | 3.81 |
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Diluted |
| $ | 1.99 |
| $ | 1.21 |
| $ | 5.28 |
| $ | 3.75 |
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Shares used in computing net income per share: |
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Basic weighted average shares of common stock |
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| 32,807 |
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| 33,011 |
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| 32,775 |
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| 33,116 |
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Diluted weighted average shares of common stock |
|
| 33,159 |
|
| 33,389 |
|
| 33,208 |
|
| 33,638 |
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Axcelis Technologies, Inc. Consolidated Balance Sheets (In thousands, except per share amounts) (Unaudited) |
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| September 30, |
| December 31, |
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| 2023 |
| 2022 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
| $ | 142,300 |
| $ | 185,595 |
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Short-term investments |
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| 318,710 |
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| 246,571 |
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Accounts receivable, net |
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| 192,327 |
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| 169,773 |
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Inventories, net |
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| 312,223 |
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| 242,406 |
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Prepaid expenses and other current assets |
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| 49,481 |
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| 33,300 |
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Total current assets |
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| 1,015,041 |
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| 877,645 |
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Property, plant and equipment, net |
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| 47,169 |
|
| 39,664 |
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Operating lease assets |
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| 31,082 |
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| 12,146 |
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Finance lease assets, net |
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| 16,981 |
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| 17,942 |
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Long-term restricted cash |
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| 6,650 |
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| 752 |
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Deferred income taxes |
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| 44,323 |
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| 31,701 |
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Other assets |
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| 40,448 |
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| 33,791 |
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Total assets |
| $ | 1,201,694 |
| $ | 1,013,641 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable |
| $ | 60,061 |
| $ | 62,346 |
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Accrued compensation |
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| 26,535 |
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| 35,540 |
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Warranty |
|
| 11,464 |
|
| 8,299 |
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Income taxes |
|
| 582 |
|
| 4,304 |
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Deferred revenue |
|
| 148,299 |
|
| 123,471 |
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Current portion of finance lease obligation |
|
| 1,438 |
|
| 1,229 |
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Other current liabilities |
|
| 12,799 |
|
| 12,943 |
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Total current liabilities |
|
| 261,178 |
|
| 248,132 |
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Long-term finance lease obligation |
|
| 44,070 |
|
| 45,185 |
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Long-term deferred revenue |
|
| 53,730 |
|
| 31,306 |
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Other long-term liabilities |
|
| 41,745 |
|
| 21,762 |
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Total liabilities |
|
| 400,723 |
|
| 346,385 |
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Stockholders' equity: |
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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 |
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| 33 |
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| 33 |
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Additional paid-in capital |
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| 543,577 |
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| 550,299 |
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Retained earnings |
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| 261,521 |
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| 118,892 |
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Accumulated other comprehensive loss |
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| (4,160) |
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| (1,968) |
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Total stockholders' equity |
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| 800,971 |
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| 667,256 |
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Total liabilities and stockholders' equity |
| $ | 1,201,694 |
| $ | 1,013,641 |
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SOURCE Axcelis Technologies, Inc.