Q4 Highlights:
Revenue of $252.4 millionOperating 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.
