Exhibit 99.1
News Release
Axcelis Announces Financial Results for First Quarter 2024
Revenue, Gross Margin and EPS Beat Guidance
BEVERLY, Mass. — May 1, 2024—Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the first quarter ended March 31, 2024.
The Company reported first quarter revenue of $252.4 million, compared to $310.3 million for the fourth quarter of 2023. Gross margin for the quarter was 46%, compared to 44.4% in the fourth quarter. Operating profit for the quarter was $56.5 million, compared to $79.1 million for the fourth quarter. Net income for the quarter was $51.6 million, or $1.57 per diluted share, compared to $71.1 million, or $2.15 per diluted share in the fourth quarter.
President and CEO Russell Low commented, “Axcelis is off to a good start in 2024. The Company delivered strong financial results in the first quarter, as a result of continued execution by the Axcelis team combined with strength in the implant intensive power device segment and robust shipments to China. The power device segment, particularly silicon carbide, continues to drive our business. We continue to win business from new customers globally as well as expand our product footprint with existing customers, with our highly differentiated and enabling Purion™ Power Series product line.”
Executive Vice President and Chief Financial Officer Jamie Coogan said, “We are pleased with our first quarter results and look forward to a solid 2024. Our revenue, gross margin and earnings per share finished above our guidance for the period, and we ended the quarter with robust cash flow and a strong balance sheet. We are monitoring the recovery in our memory and general mature markets and continue to expect revenue levels in the second half to increase over our anticipated revenues in the first half of the year.”
Business Outlook
For the second quarter ending June 30, 2024, Axcelis expects revenues of approximately $245 million. Gross margin in the second
quarter is expected to be approximately 43.5%, as we anticipate closing several evaluations in the period, which typically carry
lower gross margins. For the full year we expect margins to improve year over year. Second quarter operating profit is forecast to be
approximately $47 million with earnings per diluted share of around $1.30.
News Release
First Quarter 2024 Conference Call
The Company will host a call to discuss the results for the first
quarter 2024 on Thursday, May 2, 2024, 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/BI3597bb3b60b345b3a930f23a61948ca3. 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.
Company Contacts
Investor Relations:
Doug Lawson
978.787.9552
Editorial/Media:
Maureen Hart
978.787.4266
News Release
Axcelis Technologies, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
| Three months ended | ||||||||
| March 31, | ||||||||
| 2024 | 2023 | |||||||
| Revenue: | ||||||||
| Product | $ | 243,418 | $ | 246,007 | ||||
| Services | 8,954 | 8,013 | ||||||
| Total revenue | 252,372 | 254,020 | ||||||
| Cost of revenue: | ||||||||
| Product | 127,912 | 142,771 | ||||||
| Services | 8,409 | 7,230 | ||||||
| Total cost of revenue | 136,321 | 150,001 | ||||||
| Gross profit | 116,051 | 104,019 | ||||||
| Operating expenses: | ||||||||
| Research and development | 25,662 | 23,773 | ||||||
| Sales and marketing | 17,445 | 14,144 | ||||||
| General and administrative | 16,405 | 14,745 | ||||||
| Total operating expenses | 59,512 | 52,662 | ||||||
| Income from operations | 56,539 | 51,357 | ||||||
| Other income (expense): | ||||||||
| Interest income | 5,516 | 3,936 | ||||||
| Interest expense | (1,346 | ) | (1,353 | ) | ||||
| Other, net | (1,710 | ) | (1,038 | ) | ||||
| Total other income | 2,460 | 1,545 | ||||||
| Income before income taxes | 58,999 | 52,902 | ||||||
| Income tax provision | 7,404 | 5,205 | ||||||
| Net income | $ | 51,595 | $ | 47,697 | ||||
| Net income per share: | ||||||||
| Basic | $ | 1.58 | $ | 1.46 | ||||
| Diluted | $ | 1.57 | $ | 1.43 | ||||
| Shares used in computing net income per share: | ||||||||
| Basic weighted average shares of common stock | 32,638 | 32,744 | ||||||
| Diluted weighted average shares of common stock | 32,926 | 33,293 | ||||||
News Release
Axcelis Technologies, Inc.
Consolidated Balance Sheets
(In thousands, except per share amounts)
(Unaudited)
| March 31, | December 31, | |||||||
| 2024 | 2023 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 133,963 | $ | 167,297 | ||||
| Short-term investments | 396,228 | 338,851 | ||||||
| Accounts receivable, net | 208,544 | 217,964 | ||||||
| Inventories, net | 312,170 | 306,482 | ||||||
| Prepaid expenses and other current assets | 54,544 | 49,397 | ||||||
| Total current assets | 1,105,449 | 1,079,991 | ||||||
| Property, plant and equipment, net | 53,032 | 53,971 | ||||||
| Operating lease assets | 29,557 | 30,716 | ||||||
| Finance lease assets, net | 16,310 | 16,632 | ||||||
| Long-term restricted cash | 6,652 | 6,654 | ||||||
| Deferred income taxes | 54,525 | 53,428 | ||||||
| Other assets | 41,094 | 40,575 | ||||||
| Total assets | $ | 1,306,619 | $ | 1,281,967 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 39,853 | $ | 54,400 | ||||
| Accrued compensation | 16,413 | 31,445 | ||||||
| Warranty | 14,355 | 14,098 | ||||||
| Income taxes | 26,850 | 6,164 | ||||||
| Deferred revenue | 164,700 | 164,677 | ||||||
| Current portion of finance lease obligation | 1,503 | 1,511 | ||||||
| Other current liabilities | 12,894 | 12,834 | ||||||
| Total current liabilities | 276,568 | 285,129 | ||||||
| Long-term finance lease obligation | 43,328 | 43,674 | ||||||
| Long-term deferred revenue | 43,718 | 46,208 | ||||||
| Other long-term liabilities | 41,262 | 42,074 | ||||||
| Total liabilities | 404,876 | 417,085 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Common stock, $0.001 par value, 75,000 shares authorized; 32,605 shares issued and outstanding at March 31, 2024; 32,685 shares issued and outstanding at December 31, 2023 | 33 | 33 | ||||||
| Additional paid-in capital | 546,979 | 547,189 | ||||||
| Retained earnings | 358,303 | 319,506 | ||||||
| Accumulated other comprehensive loss | (3,572 | ) | (1,846 | ) | ||||
| Total stockholders’ equity | 901,743 | 864,882 | ||||||
| Total liabilities and stockholders’ equity | $ | 1,306,619 | $ | 1,281,967 | ||||