Axcelis Announces Financial Results for Third Quarter 2024
Rhea-AI Summary
Axcelis Technologies (NASDAQ: ACLS) reported Q3 2024 financial results with revenue of $256.6 million, slightly up from $256.5 million in Q2. Operating profit decreased to $46.9 million from $52.8 million, while net income fell to $48.6 million ($1.49 per diluted share) from $50.9 million ($1.55 per share). Gross margin declined to 42.9% from 43.8%. The company expects Q4 2024 revenues of approximately $245 million with EPS of $1.25. Additionally, Axcelis corrected historical backlog figures, with Q2 2024 backlog revised to $879 million from previously reported $994 million. Q3 2024 backlog stands at $758 million.
Positive
- Revenue remained stable at $256.6M quarter-over-quarter
- Maintained strong gross margin of 42.9%
- Healthy operating margin at 18.3%
- Strong cash generation reported by management
Negative
- Operating profit decreased by 11.2% QoQ from $52.8M to $46.9M
- Net income declined from $50.9M to $48.6M QoQ
- Q4 guidance indicates revenue decline to $245M
- Backlog correction revealed lower figures than previously reported
- Management expects slowdown in mature node capacity through H1 2025
News Market Reaction 1 Alert
On the day this news was published, ACLS declined 0.97%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Revenue of
$256.6 million - Operating margin of
18.3% - Diluted earnings per share of
$1.49
President and CEO Russell Low commented, "Axcelis executed well in the third quarter with results relatively in-line with our expectations. While we anticipate a near term digestion of mature node capacity through the first half of 2025, customer engagement is strong and our long-term growth opportunity remains squarely intact highlighted by attractive secular growth in silicon carbide, a cyclical recovery in our memory and general mature markets, market share gains in advanced logic and regional penetration of the
Executive Vice President and Chief Financial Officer Jamie Coogan said, "We are pleased with the financial performance delivered by our team thus far in 2024. Our cash generation remains strong, we are engaging with customers across a number of key growth opportunities, and we are investing in our product roadmaps while maintaining discipline in our overall cost structure. All of this, when coupled with our strong balance sheet, put us in position to capture the growth opportunities that lie ahead and drive long-term value creation for shareholders."
Business Outlook
For the fourth quarter ending December 31, 2024, Axcelis expects revenues of approximately
Correction of Historical Backlog
During the preparation of the Company's third quarter financial statements, the Axcelis internal financial team identified an error in the calculation of backlog, beginning in 2019 through the second quarter of 2024. For example, corrected backlog as of June 30, 2024 was
The corrected historical figures for 2019 through the second quarter of 2024 have been posted to the Investor section of the Axcelis website at investor.axcelis.com.
Third Quarter 2024 Conference Call
The Company will host a call to discuss the results for the third quarter 2024 on Thursday, Nov. 7, 2024, 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/BI64036dd04ee74de4bea3e1ba939fae67
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
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 | Nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||
Revenue: | |||||||||||||
Product | $ | 246,826 | $ | 283,367 | $ | 735,626 | $ | 795,047 | |||||
Services | 9,738 | 8,959 | 29,822 | 25,269 | |||||||||
Total revenue | 256,564 | 292,326 | 765,448 | 820,316 | |||||||||
Cost of revenue: | |||||||||||||
Product | 136,379 | 154,798 | 399,049 | 444,311 | |||||||||
Services | 10,215 | 7,844 | 27,968 | 22,600 | |||||||||
Total cost of revenue | 146,594 | 162,642 | 427,017 | 466,911 | |||||||||
Gross profit | 109,970 | 129,684 | 338,431 | 353,405 | |||||||||
Operating expenses: | |||||||||||||
Research and development | 26,395 | 24,093 | 77,843 | 71,996 | |||||||||
Sales and marketing | 16,808 | 16,465 | 51,483 | 46,146 | |||||||||
General and administrative | 19,854 | 17,446 | 52,842 | 48,519 | |||||||||
Total operating expenses | 63,057 | 58,004 | 182,168 | 166,661 | |||||||||
Income from operations | 46,913 | 71,680 | 156,263 | 186,744 | |||||||||
Other income (expense): | |||||||||||||
Interest income | 6,560 | 4,580 | 18,126 | 12,824 | |||||||||
Interest expense | (1,333) | (1,325) | (4,017) | (4,027) | |||||||||
Other, net | 3,225 | (1,260) | 1,257 | (4,348) | |||||||||
Total other income | 8,452 | 1,995 | 15,366 | 4,449 | |||||||||
Income before income taxes | 55,365 | 73,675 | 171,629 | 191,193 | |||||||||
Income tax provision | 6,789 | 7,744 | 20,593 | 15,986 | |||||||||
Net income | $ | 48,576 | $ | 65,931 | $ | 151,036 | $ | 175,207 | |||||
Net income per share: | |||||||||||||
Basic | $ | 1.49 | $ | 2.01 | $ | 4.63 | $ | 5.35 | |||||
Diluted | $ | 1.49 | $ | 1.99 | $ | 4.61 | $ | 5.28 | |||||
Shares used in computing net income per share: | |||||||||||||
Basic weighted average shares of common stock | 32,550 | 32,807 | 32,595 | 32,775 | |||||||||
Diluted weighted average shares of common stock | 32,675 | 33,159 | 32,780 | 33,208 | |||||||||
Axcelis Technologies, Inc. Consolidated Balance Sheets (In thousands, except per share amounts) (Unaudited) | |||||||
September 30, | December 31, | ||||||
2024 | 2023 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 120,066 | $ | 167,297 | |||
Short-term investments | 459,341 | 338,851 | |||||
Accounts receivable, net | 183,543 | 217,964 | |||||
Inventories, net | 290,954 | 306,482 | |||||
Prepaid income taxes | 10,748 | — | |||||
Prepaid expenses and other current assets | 57,441 | 49,397 | |||||
Total current assets | 1,122,093 | 1,079,991 | |||||
Property, plant and equipment, net | 54,454 | 53,971 | |||||
Operating lease assets | 30,391 | 30,716 | |||||
Finance lease assets, net | 15,668 | 16,632 | |||||
Long-term restricted cash | 6,653 | 6,654 | |||||
Deferred income taxes | 58,938 | 53,428 | |||||
Other assets | 49,928 | 40,575 | |||||
Total assets | $ | 1,338,125 | $ | 1,281,967 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 54,047 | $ | 54,400 | |||
Accrued compensation | 23,070 | 31,445 | |||||
Warranty | 14,547 | 14,098 | |||||
Income taxes | — | 6,164 | |||||
Deferred revenue | 138,682 | 164,677 | |||||
Current portion of finance lease obligation | 1,399 | 1,511 | |||||
Other current liabilities | 20,519 | 12,834 | |||||
Total current liabilities | 252,264 | 285,129 | |||||
Long-term finance lease obligation | 42,671 | 43,674 | |||||
Long-term deferred revenue | 25,344 | 46,208 | |||||
Other long-term liabilities | 42,252 | 42,074 | |||||
Total liabilities | 362,531 | 417,085 | |||||
Stockholders' equity: | |||||||
Common stock, | 33 | 33 | |||||
Additional paid-in capital | 545,350 | 547,189 | |||||
Retained earnings | 432,429 | 319,506 | |||||
Accumulated other comprehensive loss | (2,218) | (1,846) | |||||
Total stockholders' equity | 975,594 | 864,882 | |||||
Total liabilities and stockholders' equity | $ | 1,338,125 | $ | 1,281,967 | |||
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SOURCE Axcelis Technologies, Inc.
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