Axcelis Announces Financial Results for Fourth Quarter and Full Year 2023
Record Revenue for 2023, Achieving Year-Over-Year Growth of 23%
BEVERLY, Mass., Feb. 7, 2024 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the fourth quarter and full year ended December 31, 2023.
Highlights include:
Record full year revenue, operating profit and EPS, enabling the Company to surpass its $1.1 billion revenue model.
Continued strong growth from the Purion Power Series™ product line.
Significant increase in Purion™ installed base drove record CS&I revenue.
Year-end systems backlog of $1.2 billion.
For the full year 2023, the Company reported revenue of $1.13 billion, compared with $920 million for the full year 2022, an increase of 23% and a company record. Systems revenue for the year was $883.6 million, compared to $692.1 million in 2022, an increase of 28%, also a company record. Operating profit was $265.8 million in 2023, compared to $212.4 million in 2022, a 25% increase and a company record. Net income for the year was $246.3 million with diluted earnings per share of $7.43, compared to net income of $183.1 million and diluted earnings per share of $5.46 in 2022, resulting in a 35% net income year over year increase. Gross margin for the year was 43.5%, compared to 43.7% in 2022.
The Company reported fourth quarter revenue of $310.3 million, compared to $292.3 million for the third quarter of 2023. Operating profit for the quarter was $79.1 million, compared to $71.7 million for the third quarter. Net income for the quarter was $71.1 million, or $2.15 per diluted share, compared to $65.9 million, or $1.99 per diluted share in the third quarter. Gross margin for the quarter was 44.4%, unchanged from the third quarter. The fourth quarter ended with bookings of $235.5 million and a systems backlog of $1.2 billion.
President and CEO Russell Low commented, "2023 was another outstanding year for Axcelis. As a result of strong execution by the Axcelis team and robust demand for the Purion Power Series product family, we achieved 23% year-over-year revenue growth during an industry downturn. We have developed a large and diverse customer base in the power market, and we continue to win business from new customers as well as expand our product footprint with existing customers. We believe that the mature process technology and memory segments, two markets in which Axcelis is well-positioned, will recover in the second half of the year, enabling strong growth in 2025."
Executive Vice President and Chief Financial Officer Jamie Coogan said, "We are extremely pleased with our 2023 results, and excited about our future growth. Our revenue and earnings per share finished above our revised guidance, and we ended the quarter with robust cash flow and a strong balance sheet. As we look to 2024, we will continue to make investments in R&D while managing expenses, setting us up to achieve our $1.3 billion revenue model in 2025."
Business Outlook For the first quarter ending March 31, 2024, Axcelis expects revenues of approximately $242 million. First quarter operating profit is forecast to be approximately $45 million with earnings per diluted share of around $1.22. Gross margin in the first quarter is expected to be approximately 43.5%, and for the full year we expect it to improve year over year but could fluctuate quarter to quarter. We expect full year 2024 revenue to be similar to 2023, with revenue weighted toward the second half.
Fourth Quarter and Full Year 2023 Conference Call The Company will release financial results for the fourth quarter and full year 2023 on Wednesday, February 7, 2024, at 4:00 p.m. Eastern Time (ET). The Company will host a call to discuss the results for the fourth quarter and full year 2023 on Thursday, February 8, 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://edge.media-server.com/mmc/p/su3u4oev. 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
Axcelis Technologies, Inc. Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited)
Three months ended
Twelve months ended
December 31,
December 31,
2023
2022
2023
2022
Revenue:
Product
$
300,603
$
258,584
$
1,095,650
$
890,582
Services
9,685
7,467
34,954
29,416
Total revenue
310,288
266,051
1,130,604
919,998
Cost of revenue:
Product
163,801
149,717
608,112
492,104
Services
8,591
6,813
31,191
26,104
Total cost of revenue
172,392
156,530
639,303
518,208
Gross profit
137,896
109,521
491,301
401,790
Operating expenses:
Research and development
24,911
22,089
96,907
78,356
Sales and marketing
16,659
15,032
62,805
53,599
General and administrative
17,275
16,311
65,794
57,474
Total operating expenses
58,845
53,432
225,506
189,429
Income from operations
79,051
56,089
265,795
212,361
Other income (expense):
Interest income
5,375
2,993
18,199
4,551
Interest expense
(1,320)
(1,475)
(5,347)
(5,576)
Other, net
4,300
8,189
(48)
(6,451)
Total other income (expense)
8,355
9,707
12,804
(7,476)
Income before income taxes
87,406
65,796
278,599
204,885
Income tax provision
16,350
8,804
32,336
21,806
Net income
$
71,056
$
56,992
$
246,263
$
183,079
Net income per share:
Basic
$
2.17
$
1.74
$
7.52
$
5.54
Diluted
$
2.15
$
1.71
$
7.43
$
5.46
Shares used in computing net income per share:
Basic weighted average shares of common stock
32,708
32,823
32,758
33,043
Diluted weighted average shares of common stock
33,031
33,262
33,165
33,542
Axcelis Technologies, Inc. Consolidated Balance Sheets (In thousands, except per share amounts)
December 31,
December 31,
2023
2022
ASSETS
Current assets:
Cash and cash equivalents
$
167,297
$
185,595
Short-term investments
338,851
246,571
Accounts receivable, net
217,964
169,773
Inventories, net
306,482
242,406
Prepaid expenses and other current assets
49,397
33,300
Total current assets
1,079,991
877,645
Property, plant and equipment, net
53,971
39,664
Operating lease assets
30,716
12,146
Finance lease assets, net
16,632
17,942
Long-term restricted cash
6,654
752
Deferred income taxes
53,428
31,701
Other assets
40,575
33,791
Total assets
$
1,281,967
$
1,013,641
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
54,400
$
62,346
Accrued compensation
31,445
35,540
Warranty
14,098
8,299
Income taxes
6,164
4,304
Deferred revenue
164,677
123,471
Current portion of finance lease obligation
1,511
1,229
Other current liabilities
12,834
12,943
Total current liabilities
285,129
248,132
Long-term finance lease obligation
43,674
45,185
Long-term deferred revenue
46,208
31,306
Other long-term liabilities
42,074
21,762
Total liabilities
417,085
346,385
Stockholders' equity:
Common stock, $0.001 par value, 75,000 shares authorized; 32,685 shares issued and outstanding at December 31, 2023; 32,775 shares issued and outstanding at December 31, 2022