Axcelis Announces Financial Results for Fourth Quarter and Full Year 2024

Rhea-AI Summary

Axcelis Technologies (NASDAQ: ACLS) reported Q4 2024 financial results with revenue of $252.4 million and diluted EPS of $1.54. The company's full-year 2024 performance showed revenue of $1.02 billion, down from $1.13 billion in 2023. Systems revenue decreased to $782.6 million from $883.6 million in 2023.

Despite revenue decline, gross margin improved to 44.7% in 2024 from 43.5% in 2023. Net income for 2024 was $201 million with diluted EPS of $6.15, compared to $246.3 million and $7.43 EPS in 2023. For Q1 2025, Axcelis expects revenues of approximately $185 million and diluted EPS of $0.38.

Management anticipates a near-term cyclical digestion period as customers absorb mature node capacity investments, particularly in China. The company plans to focus on product innovation, cost management, and customer collaboration to position for future growth.

Positive

• Q4 gross margin improved to 46.0% from 42.9% in Q3 2024
• Q4 operating profit increased to $54.5M from $46.9M in Q3 2024
• Full-year gross margin improved to 44.7% from 43.5% in 2023

Negative

• Full-year revenue declined 9.7% to $1.02B from $1.13B in 2023
• Systems revenue decreased 11.4% to $782.6M from $883.6M in 2023
• Net income dropped 18.4% to $201M from $246.3M in 2023
• Q1 2025 guidance shows significant sequential decline to $185M revenue
• Expected Q1 2025 EPS of $0.38 represents substantial decrease from Q4's $1.54

Q4 Highlights:

• Revenue of $252.4 million
• Operating Margin of 21.6%
• Diluted earnings per share of $1.54

BEVERLY, Mass., Feb. 10, 2025 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the fourth quarter and full year ended December 31, 2024.

For the full year 2024, the Company reported revenue of $1.02 billion, compared with $1.13 billion for the full year 2023. Systems revenue for the year was $782.6 million, compared to $883.6 million in 2023. Operating profit was $210.8 million in 2024, compared to $265.8 million in 2023. Net income for the year was $201 million with diluted earnings per share of $6.15, compared to net income of $246.3 million and diluted earnings per share of $7.43 in 2023. Gross margin for the year was 44.7%, compared to 43.5% in 2023.

The Company reported fourth quarter revenue of $252.4 million, compared to $256.6 million for the third quarter of 2024. Gross margin for the quarter was 46.0%, compared to 42.9% in the third quarter. Operating profit for the quarter was $54.5 million, compared to $46.9 million for the third quarter. Net income for the quarter was $50 million, or $1.54 per diluted share, compared to $48.6 million, or $1.49 per diluted share in the third quarter.

President and CEO Russell Low commented, "Axcelis exited the year on a strong note, with fourth quarter revenue and profitability exceeding our expectations. As we look ahead to 2025, we anticipate a near term cyclical digestion period, as customers absorb the robust investments they've made into mature node capacity over the past few years – particularly in China. We are focused on capturing the long-term growth opportunities that lie ahead by investing in product innovation, managing our costs, and working closely with customers on their technology roadmaps – all of which will put us in an even stronger position for the next upturn." 

Executive Vice President and Chief Financial Officer Jamie Coogan said, "We are pleased with our financial execution in 2024. Despite a decline in revenue, we were able to deliver higher gross margins, generate solid free cash flow, return capital to shareholders via buyback, and exit the year with a stronger balance sheet that allows us to invest during this cyclical digestion period and drive long term value creation."

Business Outlook
For the first quarter ending March 31, 2025, Axcelis expects revenues of approximately $185 million, and earnings per diluted share of approximately $0.38.

Fourth Quarter and Full Year 2024 Conference Call
The Company will host a call to discuss the results for the fourth quarter and full year 2024 on Tuesday, February 11, 2025, 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.vevent.com/register/BIb4b94bbc1cf744869eeb20b9a9be88a7
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						Twelve months ended
			December 31,					December 31,
		2024			2023			2024			2023
Revenue:
Product		$	241,254		$	300,603		$	976,881		$	1,095,650
Services			11,163			9,685			40,984			34,954
Total revenue			252,417			310,288			1,017,865			1,130,604
Cost of revenue:
Product			125,402			163,801			524,451			608,112
Services			10,792			8,591			38,760			31,191
Total cost of revenue			136,194			172,392			563,211			639,303
Gross profit			116,223			137,896			454,654			491,301
Operating expenses:
Research and development			27,654			24,911			105,497			96, 907
Sales and marketing			16,563			16,659			68,046			62,805
General and administrative			17,475			17,275			70,317			65,794
Total operating expenses			61,692			58,845			243,860			225,506
Income from operations			54,531			79,051			210,794			265,795
Other income (expense):
Interest income			6,277			5,375			24,403			18,199
Interest expense			(1,444)			(1,320)			(5,462)			(5,347)
Other, net			(719)			4,300			539			(48)
Total other income			4,114			8,355			19,480			12,804
Income before income taxes			58,645			87,406			230,274			278,599
Income tax provision			8,689			16,350			29,282			32,336
Net income		$	49,956		$	71,056		$	200,992		$	246,263
Net income per share:
Basic		$	1.54		$	2.17		$	6.17		$	7.52
Diluted		$	1.54		$	2.15		$	6.15		$	7.43
Shares used in computing net income per share:
Basic weighted average shares of common stock			32,424			32,708			32,552			32,758
Diluted weighted average shares of common stock			32,514			33,031			32,704			33,165

 

Axcelis Technologies, Inc. Consolidated Balance Sheets (In thousands, except per share amounts) (Unaudited)
		December 31,			December 31,
		2024			2023
ASSETS
Current assets:
Cash and cash equivalents		$	123,512		$	167,297
Short-term investments			447,831			338,851
Accounts receivable, net			203,149			217,964
Inventories, net			282,225			306,482
Prepaid income taxes			6,420			—
Prepaid expenses and other current assets			60,471			49,397
Total current assets			1,123,608			1,079,991
Property, plant and equipment, net			53,784			53,971
Operating lease assets			29,621			30,716
Finance lease assets, net			15,346			16,632
Long-term restricted cash			7,552			6,654
Deferred income taxes			68,277			53,428
Other assets			50,593			40,575
Total assets		$	1,348,781		$	1,281,967
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	46,928		$	54,400
Accrued compensation			25,536			31,445
Warranty			13,022			14,098
Income taxes			—			6,164
Deferred revenue			94,673			164,677
Current portion of finance lease obligation			1,345			1,511
Other current liabilities			26,018			12,834
Total current liabilities			207,522			285,129
Long-term finance lease obligation			42,329			43,674
Long-term deferred revenue			43,501			46,208
Other long-term liabilities			42,639			42,074
Total liabilities			335,991			417,085
Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 32,365 shares issued and outstanding at December 31, 2024; 32,685 shares issued and outstanding at December 31, 2023			32			33
Additional paid-in capital			548,654			547,189
Retained earnings			470,318			319,506
Accumulated other comprehensive loss			(6,214)			(1,846)
Total stockholders' equity			1,012,790			864,882
Total liabilities and stockholders' equity		$	1,348,781		$	1,281,967

 

Axcelis Technologies, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)
		Three months ended							Twelve months ended
		December 31,							December 31,
		2024			2023				2024			2023
Cash flows from operating activities
Net income		$	49,956		$	71,056		$	200,992		$	246,263
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			4,267			3,581			15,809			13,069
Stock-based compensation expense			5,380			5,239			20,951			18,269
Other			(442)			(14,565)			(11,532)			(23,503)
Change in operating assets and liabilities, net			(46,381)			264			(85,402)			(97,229)
Net cash provided by operating activities			12,780			65,575			140,818			156,869
Cash flows from investing activities
Expenditures for property, plant and equipment and capitalized software			(4,658)			(10,153)			(12,181)			(20,656)
Other changes in investing activities, net			13,779			(16,526)			(96,545)			(80,202)
Net cash provided by (used in) investing activities			9,121			(26,679)			(108,726)			(100,858)
Cash flows from financing activities
Repurchase of common stock			(15,131)			(15,001)			(60,489)			(52,499)
Other changes from financing activities, net			588			(22)			(10,703)			(15,769)
Net cash used in financing activities			(14,543)			(15,023)			(71,192)			(68,268)
Effect of exchange rate changes on cash and cash equivalents			(3,013)			1,128			(3,787)			(139)
Net increase (decrease) in cash, cash equivalents and restricted cash			4,345			25,001			(42,887)			(12,396)
Cash, cash equivalents and restricted cash at end of period		$	131,064		$	173,951		$	131,064		$	173,951

 

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SOURCE Axcelis Technologies, Inc.

FAQ

What were Axcelis (ACLS) Q4 2024 earnings per share?

Axcelis reported Q4 2024 diluted earnings per share of $1.54, up from $1.49 in Q3 2024.

How much revenue did ACLS generate in full-year 2024?

Axcelis generated total revenue of $1.02 billion for the full year 2024, compared to $1.13 billion in 2023.

What is ACLS's revenue guidance for Q1 2025?

Axcelis expects revenues of approximately $185 million for Q1 2025.

How did Axcelis's gross margin perform in 2024 vs 2023?

Axcelis's gross margin improved to 44.7% in 2024 from 43.5% in 2023.

What was ACLS's systems revenue for 2024?

Axcelis's systems revenue was $782.6 million in 2024, down from $883.6 million in 2023.