Axcelis Announces Financial Results for First Quarter 2025

Rhea-AI Summary

Axcelis Technologies (NASDAQ: ACLS) reported Q1 2025 financial results with revenue of $192.6 million, showing a decline from $252.4 million in Q1 2024. The company maintained strong margins with a GAAP gross margin of 46.1% and non-GAAP gross margin of 46.4%. Net income decreased to $28.6 million ($0.88 per diluted share) from $51.6 million ($1.57 per diluted share) year-over-year. For Q2 2025, Axcelis projects revenue of approximately $185 million with GAAP EPS of $0.57 and non-GAAP EPS of $0.73, indicating continued market challenges. Despite the revenue decline, the company maintains a strong financial position with no debt and continues share repurchases while investing in innovation.

Positive

• Strong gross margins maintained at 46.1% GAAP and 46.4% non-GAAP
• Robust cash position with no debt
• Ongoing share repurchase program
• Optimized global manufacturing and supply chain footprint

Negative

• Revenue declined 23.7% YoY from $252.4M to $192.6M
• Net income dropped 44.6% YoY from $51.6M to $28.6M
• Operating margin decreased from 22.4% to 15.1%
• Q2 2025 guidance suggests further revenue decline to $185M

Insights

Financial Analyst

Axcelis reports significant revenue and earnings decline with continued weakness forecasted for Q2, despite maintaining stable gross margins.

Axcelis Technologies' Q1 2025 results reveal substantial financial deterioration compared to the same period last year. The company reported $192.6 million in revenue, marking a 24% year-over-year decline from $252.4 million. What's particularly concerning is that this downward trajectory appears to be continuing, with Q2 guidance projecting further weakness at approximately $185 million in revenue.

The earnings picture shows similar deterioration. GAAP diluted EPS fell to $0.88 from $1.57 in Q1 2024, representing a 44% drop. Non-GAAP EPS similarly declined to $1.04 from $1.68. The projected Q2 GAAP EPS of $0.57 indicates continuing sequential decline in profitability.

Despite these negative top and bottom-line trends, Axcelis has maintained relatively stable gross margins at 46.1%, compared to 46.0% a year ago. This suggests effective cost management and operational discipline despite lower volumes. Operating margins, however, contracted significantly from 22.4% to 15.1%, reflecting the impact of reduced revenue on overall profitability.

The company's balance sheet remains strong with no debt and sufficient cash for share repurchases. While this financial flexibility provides some buffer against current headwinds, it doesn't offset the fundamental decline in business performance. Management attributes these challenges to "moderation in customer investments" and "uncertain broader economic backdrop," suggesting these headwinds may persist in the near term.

Semiconductor Equipment Specialist

Semiconductor capital spending slowdown impacts Axcelis with significant revenue decline, though company maintains operational resilience through supply chain optimization.

The 24% year-over-year revenue decline at Axcelis reflects a significant pullback in semiconductor capital equipment spending. As a leading ion implantation equipment supplier, Axcelis serves as an important barometer for fab investment trends, and these results confirm a meaningful deceleration in capacity expansion plans among semiconductor manufacturers.

What's particularly notable is management's emphasis on their "agile global manufacturing and supply chain footprint" that they've "optimized over the past few years." This supply chain resilience has enabled Axcelis to maintain gross margin performance at 46.1% despite the substantial volume reduction, which is impressive in the notoriously fixed-cost heavy semiconductor equipment sector.

The reference to navigating a "dynamic macroeconomic and global trade environment" highlights the ongoing challenges posed by semiconductor equipment export controls and trade tensions. Axcelis appears to have diversified its manufacturing and supply chain capabilities to address these constraints, which provides crucial operational flexibility.

Despite the current investment slowdown, management's continued commitment to innovation investment suggests they're positioning for the next upturn while weathering current market conditions. The sequential decline in revenue forecasted for Q2 ($185 million) indicates this downturn hasn't yet reached its trough, and customers remain cautious with capital spending plans.

This moderation in customer investments follows several years of aggressive capacity expansion in semiconductor manufacturing, particularly in mature process nodes where Axcelis equipment is heavily utilized. The company's ability to maintain relatively stable margins during this contraction phase indicates operational discipline, but the significant drop in operating income shows the limitations of cost management when facing such substantial revenue declines.

Q1 Highlights:

• Revenue of $192.6 million
• GAAP Gross Margin of 46.1%, and Non-GAAP Gross Margin of 46.4%
• GAAP Operating Margin of 15.1% and Non-GAAP Operating Margin of 18.3%
• GAAP Diluted earnings per share of $0.88, and Non-GAAP Diluted earnings per share of $1.04

BEVERLY, Mass., May 6, 2025 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the first quarter ended March 31, 2025.

President and CEO Russell Low commented, "We executed well in the first quarter, delivering strong profitability despite a moderation in customer investments and a more uncertain broader economic backdrop. Axcelis is well positioned to navigate a dynamic macroeconomic and global trade environment with an agile global manufacturing and supply chain footprint that we have optimized over the past few years. This provides a solid platform for us to meet our customers' needs while continuing to invest in innovation to capture the long-term growth opportunities that lie ahead."

Executive Vice President and Chief Financial Officer Jamie Coogan said, "We delivered strong margins and cash flow in the first quarter, reflecting solid execution and the resilience of our operating model. We exited the quarter with a robust cash position and no debt, and are repurchasing shares in an opportunistic but disciplined manner, while continuing to invest in our business."

Results Summary
(In thousands, except per share amounts and percentages)
		Three months ended March 31,
		2025			2024
Revenue	$	192,563		$	252,372
Gross margin		46.1 %			46.0 %
Operating margin		15.1 %			22.4 %
Net income	$	28,579		$	51,595
Diluted earnings per share	$	0.88		$	1.57
Non-GAAP Results
Non-GAAP gross margin		46.4 %			46.1 %
Non-GAAP operating margin		18.3 %			24.1 %
Adjusted EBITDA	$	39,520		$	64,545
Non-GAAP net income	$	33,784		$	55,234
Non-GAAP diluted earnings per share	$	1.04		$	1.68

Business Outlook
For the second quarter ending June 30, 2025, Axcelis expects revenues of approximately $185 million. GAAP earnings per diluted share of approximately $0.57, and non-GAAP earnings per share of approximately $0.73.

Please refer to Second Quarter Outlook under the "Notes on our Non-GAAP Financial Information" section of this document for detail relating to the computation of non-GAAP earnings per diluted share as well as the Safe Harbor Statement section of this document.

First Quarter 2025 Conference Call
The Company will host a call today to discuss the results at 8:30 a.m. ET. The call will be available via 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-conf.media-server.com/register/BI454c6816ae884406ade486cc1372dc9f 
Webcast replays will be available for 30 days following the call.

Use of Non-GAAP Financial Results
This press release includes financial measures that are not presented in accordance with U.S. generally accepted accounting principles ("Non-GAAP financial measures"). These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP income tax provision, Adjusted EBITDA, non-GAAP net income, and non-GAAP diluted earnings per share, and reflect adjustments for the impact of share-based compensation expense and certain items related to restructuring and severance charges and any associated adjustments.

Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this release.

For further information regarding these non-GAAP financial measures, please refer to the tables presenting reconciliations of our non-GAAP results to our GAAP results and the "Notes on Our Non-GAAP Financial Information" at the end of this press release.

Safe Harbor Statement
This press release contains, and the conference call will 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, including with respect to the imposition of tariffs on our products or components of our products, 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 March 31,
	2025				2024
Revenue:
Product	$	182,824		$	243,418
Services		9,739			8,954
Total revenue		192,563			252,372
Cost of revenue:
Product		94,500			127,912
Services		9,295			8,409
Total cost of revenue		103,795			136,321
Gross profit		88,768			116,051
Operating expenses:
Research and development		27,128			25,662
Sales and marketing		15,124			17,445
General and administrative		17,357			16,405
Total operating expenses		59,609			59,512
Income from operations		29,159			56,539
Other income (expense):
Interest income		5,601			5,516
Interest expense		(1,367)			(1,346)
Other, net		(309)			(1,710)
Total other income		3,925			2,460
Income before income taxes		33,084			58,999
Income tax provision		4,505			7,404
Net income	$	28,579		$	51,595
Net income per share:
Basic	$	0.89		$	1.58
Diluted	$	0.88		$	1.57
Shares used in computing net income per share:
Basic weighted average shares of common stock		32,258			32,638
Diluted weighted average shares of common stock		32,335			32,926

 

Axcelis Technologies, Inc.
Consolidated Balance Sheets
(In thousands, except per share amounts)
(Unaudited)
		March 31,			December 31,
		2025			2024
ASSETS
Current assets:
Cash and cash equivalents		$	183,957		$	123,512
Short-term investments			403,102			447,831
Accounts receivable, net			164,949			203,149
Inventories, net			295,850			282,225
Prepaid income taxes			6,615			6,420
Prepaid expenses and other current assets			59,463			60,471
Total current assets			1,113,936			1,123,608
Property, plant and equipment, net			57,034			53,784
Operating lease assets			28,767			29,621
Finance lease assets, net			15,025			15,346
Long-term restricted cash			7,553			7,552
Deferred income taxes			69,334			68,277
Other assets			48,969			50,593
Total assets		$	1,340,618		$	1,348,781
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	38,985		$	46,928
Accrued compensation			14,796			25,536
Warranty			11,882			13,022
Deferred revenue			110,456			94,673
Current portion of finance lease obligation			1,370			1,345
Other current liabilities			22,881			26,018
Total current liabilities			200,370			207,522
Long-term finance lease obligation			41,958			42,329
Long-term deferred revenue			28,868			43,501
Other long-term liabilities			42,184			42,639
Total liabilities			313,380			335,991
Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 32,129 shares issued and outstanding at March 31, 2025; 32,365 shares issued and outstanding at December 31, 2024			32			32
Additional paid-in capital			547,020			548,654
Retained earnings			485,673			470,318
Accumulated other comprehensive loss			(5,487)			(6,214)
Total stockholders' equity			1,027,238			1,012,790
Total liabilities and stockholders' equity		$	1,340,618		$	1,348,781

 

Axcelis Technologies, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
	Three months ended March 31,
		2025								2024
Cash flows from operating activities
Net income	$	28,579					$			51,595
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		4,309								3,775
Stock-based compensation expense		4,903								4,690
Other		(1,682)								3,143
Change in operating assets and liabilities, net		3,686								(20,980)
Net cash provided by operating activities		39,795								42,223
Cash flows from investing activities
Expenditures for property, plant and equipment and capitalized software		(4,960)								(1,620)
Other changes in investing activities, net		45,429								(54,071)
Net cash provided by (used in) investing activities		40,469								(55,691)
Cash flows from financing activities
Repurchase of common stock		(18,178)								(14,999)
Other changes from financing activities, net		(1,932)								(3,056)
Net cash used in financing activities		(20,110)								(18,055)
Effect of exchange rate changes on cash and cash equivalents		292								(1,813)
Net increase (decrease) in cash, cash equivalents and restricted cash		60,446								(33,336)
Cash, cash equivalents and restricted cash at beginning of period		131,064								173,951
Cash, cash equivalents and restricted cash at end of period	$	191,510					$			140,615

Notes on Our Non-GAAP Financial Information

Management uses non-GAAP gross profit, gross margin, operating income, operating margin, income tax provision, net income, diluted earnings per share, and Adjusted EBITDA to evaluate the Company's operating and financial performance and for planning purposes. Axcelis believes these measures enhance an overall understanding of its performance and investors' ability to review the Company's business from the same perspective as the Company's management. 

There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies, and may exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP.

Totals presented may not sum and percentages may not recalculate using figures presented due to rounding.

Axcelis Technologies, Inc.
Schedule Reconciling Selected Non-GAAP Financial Measures
(In thousands, except per share amounts and percentages)
	Three months ended March 31,
		2025			2024
GAAP gross profit	$	88,768		$	116,051
Restructuring1		226			—
Stock-based compensation		353			290
Non-GAAP gross profit	$	89,347		$	116,341
Non-GAAP gross margin		46.4 %			46.1 %
Operating expenses	$	59,609		$	59,512
Bad debt expense		—			459
Restructuring		(923)			—
Stock-based compensation		(4,550)			(4,400)
Non-GAAP operating expenses	$	54,136		$	55,571
GAAP operating income	$	29,159		$	56,539
Bad debt expense		—			(459)
Restructuring1		1,149			—
Stock-based compensation		4,903			4,690
Non-GAAP operating income	$	35,211		$	60,770
Non-GAAP operating margin		18.3 %			24.1 %
GAAP income tax provision	$	4,505		$	7,404
Income tax effect of non-GAAP adjustments2		847			592
Non-GAAP income tax provision	$	5,352		$	7,996
GAAP net income	$	28,579		$	51,595
Bad debt expense		—			(459)
Restructuring1		1,149			—
Stock-based compensation		4,903			4,690
Income tax effect of non-GAAP adjustments2		(847)			(592)
Non-GAAP net income	$	33,784		$	55,234
GAAP diluted EPS	$	0.88		$	1.57
Bad debt expense		—			(0.01)
Restructuring1		0.04			—
Stock-based compensation		0.15			0.14
Income tax effect of non-GAAP adjustments2		(0.03)			(0.02)
Non-GAAP diluted EPS	$	1.04		$	1.68

Note 1: Restructuring and other costs primarily related to early retirement programs and severance costs, due to global cost-saving initiatives.

Note 2: Impact of taxes from non-GAAP adjustments, uses adjusted tax rate of 14%.

 

Axcelis Technologies, Inc.  Reconciliation of Net Income to Adjusted EBITDA (In thousands, except percentages)
	Three months ended March 31,
		2025			2024
Net income	$	28,579		$	51,595
Other (income)/expense		(3,925)			(2,460)
Income tax provision		4,505			7,404
Depreciation & amortization		4,309			3,775
Subtotal		33,468			60,314
Bad debt expense		—			(459)
Restructuring1		1,149			—
Stock-based compensation		4,903			4,690
Adjusted EBITDA	$	39,520		$	64,545
Adjusted EBITDA margin		20.5 %			25.6 %

Note 1: Restructuring and other costs primarily related to early retirement programs and severance costs, due to global cost-saving initiatives.

 

Axcelis Technologies, Inc.
Second Quarter Outlook
GAAP to Non-GAAP Diluted Earnings Per Share
	Three months ended June 30, 2025
GAAP diluted EPS	$	0.57
Stock-based compensation		0.18
Income tax effect of non-GAAP adjustments1		(0.03)
Non-GAAP diluted EPS	$	0.73

Note 1: Impact of taxes from non-GAAP adjustments, uses adjusted tax rate of 14%.

Figures may not sum due to rounding.

 

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SOURCE Axcelis Technologies, Inc.

FAQ

What were Axcelis (ACLS) Q1 2025 earnings per share?

Axcelis reported GAAP earnings of $0.88 per diluted share and non-GAAP earnings of $1.04 per diluted share in Q1 2025.

How much revenue did Axcelis (ACLS) generate in Q1 2025?

Axcelis generated revenue of $192.6 million in Q1 2025, down from $252.4 million in Q1 2024.

What is Axcelis (ACLS) guidance for Q2 2025?

Axcelis expects Q2 2025 revenues of approximately $185 million, with GAAP EPS of $0.57 and non-GAAP EPS of $0.73.

What was Axcelis (ACLS) operating margin in Q1 2025?

Axcelis reported a GAAP operating margin of 15.1% and a non-GAAP operating margin of 18.3% in Q1 2025.

How much did Axcelis (ACLS) net income decline in Q1 2025?

Axcelis net income declined 44.6% year-over-year, from $51.6 million in Q1 2024 to $28.6 million in Q1 2025.