Company Performance - Axcelis Technologies (ACLS) has returned 16.3% year-to-date, outperforming the average gain of 12.4% in the Computer and Technology sector [4] - The Zacks Consensus Estimate for ACLS' full-year earnings has increased by 31.2% in the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [4] - Axcelis Technologies holds a Zacks Rank of 1 (Strong Buy), suggesting strong potential for future performance [3] Industry Context - Axcelis Technologies is part of the Electronics - Manufacturing Machinery industry, which currently ranks 102 in the Zacks Industry Rank and has seen an average loss of 11.7% year-to-date [6] - In contrast, F5 Networks, another outperforming stock in the Computer and Technology sector, is part of the Internet - Software industry, which has gained 19.5% since the beginning of the year [7] - The Computer and Technology sector as a whole is ranked 4 among 16 different groups in the Zacks Sector Rank [2]

BEVERLY, Mass., Aug. 25, 2025 /PRNewswire/ -- Axcelis Technologies, Inc. (NASDAQ: ACLS), a leading supplier of enabling ion implantation solutions for the semiconductor industry, announced the company's plans to participate in the following upcoming investor conferences in September: The Benchmark 2025 Tech, Media & Telecom Conference on Thursday, September 4th at the New York Athletic Club. The Citi 2025 Global TMT Conference on Friday, September 5th at the New York Hilton Midtown. The B. Riley Securities ...

Core Insights - Axcelis Technologies Inc. has initiated a Joint Development Program with GE Aerospace to develop production-worthy 6.5 to 10kV superjunction power devices, emphasizing the significance of Silicon Carbide (SiC) in advanced power electronics for various industries [1][11] - The collaboration is part of the Commercial Leap Ahead for Wide Bandgap Semiconductors (CLAWS) Hub, led by North Carolina State University [5] Company Developments - Axcelis' Purion XEmax high-energy implanter is noted for its high beam currents and broad energy range, enabling the development of SiC devices that can endure extreme conditions [3][11] - Customer Solutions & Innovation (CS&I) contributed approximately 30% to total revenues in the first half of 2025, indicating a focus on enhancing customer experience and value [6][7][11] - The company is actively engaging with customers on technology roadmaps, particularly in advanced logic and SiC applications, and is investing in R&D for new technologies [8] Industry Context - SiC wide bandgap semiconductors are positioned to outperform traditional Silicon devices in terms of voltage, temperature, and frequency, making them crucial for aerospace, defense, and emerging technologies like AI and autonomous vehicles [2] - GE Aerospace has a robust IP portfolio in SiC technologies, focusing on applications in extreme environments such as hypersonic flight and electric propulsion [4]

BEVERLY, Mass., Aug. 20, 2025 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS), a leading supplier of enabling ion implantation solutions for the semiconductor industry, announced a Joint Development Program (JDP) with GE Aerospace focused on the development of production-worthy 6.5 to 10kV superjunction power devices. Processes will be developed on Axcelis' Purion XEmax™ high energy implanter, which provides the industry's highest beam currents over the broadest energy range — up to 15MeV. This JD ...

Core Viewpoint - Axcelis Technologies (ACLS) shows potential as a strong investment opportunity due to significant upward revisions in earnings estimates, indicating a positive earnings outlook and potential for continued stock price growth [1][2]. Earnings Estimate Revisions - Analysts have become increasingly optimistic about Axcelis' earnings prospects, as reflected in the upward trend of estimate revisions, which historically correlates with stock price movements [2]. - The current quarter's earnings estimate is projected at $1.01 per share, representing a year-over-year decline of 32.2%. However, the Zacks Consensus Estimate has increased by 46.61% over the last 30 days, with two estimates moving higher and no negative revisions [6]. - For the full year, the earnings estimate stands at $4.13 per share, also reflecting a year-over-year decline of 32.9%. The consensus estimate has risen by 31.16% recently, with four estimates moving higher and no negative revisions [7][8]. Zacks Rank and Performance - Axcelis has achieved a Zacks Rank 1 (Strong Buy), indicating strong potential for outperformance based on the positive estimate revisions. Historically, Zacks 1 Ranked stocks have generated an average annual return of +25% since 2008 [3][9]. - The stock has gained 6.1% over the past four weeks, driven by favorable estimate revisions and positive earnings growth prospects, suggesting it may be a timely addition to investment portfolios [10].

Company Overview - Allegro MicroSystems, Inc. (ALGM) is part of the Computer and Technology sector, which consists of 605 individual stocks and holds a Zacks Sector Rank of 6 [2] - The company currently has a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimates and revisions [3] Performance Analysis - ALGM has achieved a year-to-date return of approximately 40.5%, significantly outperforming the average gain of 12.7% in the Computer and Technology sector [4] - Within the Electronics - Semiconductors industry, which includes 44 companies, ALGM is ranked 165 and has outperformed the industry's average gain of 19% this year [6] Comparative Analysis - Another notable stock in the Computer and Technology sector is Axcelis Technologies (ACLS), which has returned 13.8% year-to-date and has a Zacks Rank of 1 (Strong Buy) [5] - The Electronics - Manufacturing Machinery industry, to which Axcelis belongs, has seen a decline of 22.4% year-to-date, contrasting with the performance of ALGM [7]

Core Viewpoint - Axcelis Technologies (ACLS) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Company Performance and Outlook - The upgrade reflects an improvement in Axcelis's underlying business, suggesting that investors may respond positively by driving the stock price higher [4]. - Axcelis is projected to earn $3.59 per share for the fiscal year ending December 2025, with no year-over-year change, but the Zacks Consensus Estimate has increased by 11.2% over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - Axcelis's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [9].

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Axcelis Technologies reported a Q2 2025 year-over-year decline in revenue and net income, with total assets at $1.32 billion and H1 operating cash flow at $79.5 million Consolidated Statements of Operations Highlights (Q2 & H1 2025 vs 2024) (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $194,544 | $256,512 | $387,107 | $508,883 | | **Gross Profit** | $87,343 | $112,409 | $176,111 | $228,460 | | **Income from Operations** | $28,965 | $52,810 | $58,124 | $109,349 | | **Net Income** | $31,376 | $50,866 | $59,955 | $102,460 | | **Diluted EPS** | $0.98 | $1.55 | $1.87 | $3.12 | Consolidated Balance Sheet Highlights (as of June 30, 2025) (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Current Assets** | | | | Cash and cash equivalents | $173,649 | $123,512 | | Short-term investments | $376,193 | $447,831 | | Accounts receivable, net | $138,841 | $203,149 | | Inventories, net | $310,768 | $282,225 | | **Total Assets** | **$1,323,486** | **$1,348,781** | | **Current Liabilities** | $177,107 | $207,522 | | **Total Liabilities** | $301,103 | $335,991 | | **Total Stockholders' Equity** | $1,022,383 | $1,012,790 | Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30) (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $79,522 | $82,290 | | **Net cash provided by (used in) investing activities** | $35,856 | $(61,294) | | **Net cash used in financing activities** | $(67,097) | $(40,656) | | **Net increase (decrease) in cash** | $50,216 | $(22,134) | - The company operates as a single business segment, producing ion implantation equipment for the semiconductor industry, and provides aftermarket services and support globally[21](index=21&type=chunk)[76](index=76&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) System sales declined in H1 2025 due to moderated customer investments, offset by improved gross margin and strong liquidity of over $580 million [Overview](index=29&type=section&id=Overview) - System sales in the first half of 2025 were down year-over-year as customers moderated investments in mature process node technologies[84](index=84&type=chunk) - The mature process segment constituted **92%** of shipped systems revenue, with power devices making up **47%** of total systems revenue[84](index=84&type=chunk) - The company's ten largest customers accounted for **55.5%** of total revenue for the first six months of 2025, indicating significant customer concentration[83](index=83&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Revenue Breakdown (Q2 2025 vs Q2 2024) (in thousands) | Revenue Type | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Product** | $183,402 | $245,380 | $(61,978) | (25.3)% | | **Services** | $11,142 | $11,132 | $10 | 0.1% | | **Total Revenue** | **$194,544** | **$256,512** | **$(61,968)** | **(24.2)%** | - The decrease in product revenue for Q2 and H1 2025 was primarily driven by a decline in system sales[91](index=91&type=chunk)[93](index=93&type=chunk) Gross Profit and Margin (Q2 2025 vs Q2 2024) | Category | Q2 2025 Gross Profit (in thousands) | Q2 2025 Gross Margin | Q2 2024 Gross Profit (in thousands) | Q2 2024 Gross Margin | | :--- | :--- | :--- | :--- | :--- | | **Product** | $87,940 | 47.9% | $110,621 | 45.1% | | **Services** | $(597) | (5.4)% | $1,788 | 16.1% | | **Total** | **$87,343** | **44.9%** | **$112,409** | **43.9%** | - Product gross margin increased in Q2 2025 to **47.9%** from **45.1%** in Q2 2024, primarily due to improved margins on Purion systems and a favorable mix of parts and upgrades. Conversely, services gross margin decreased significantly due to changes in the mix of service contracts[99](index=99&type=chunk)[100](index=100&type=chunk) Operating Expenses (Q2 2025 vs Q2 2024) (in thousands) | Expense Category | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Research and development** | $27,064 | $25,786 | $1,278 | 5.0% | | **Sales and marketing** | $15,003 | $17,230 | $(2,227) | (12.9)% | | **General and administrative** | $16,311 | $16,583 | $(272) | (1.6)% | | **Total Operating Expenses** | **$58,378** | **$59,599** | **$(1,221)** | **(2.0)%** | - The effective tax rate for Q2 2025 was **10.3%**, down from **11.2%** in Q2 2024. The decrease in income tax provision was primarily due to lower pre-tax income and an increased Foreign Derived Intangible Income deduction[68](index=68&type=chunk)[119](index=119&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity Position as of June 30, 2025 (in thousands) | Category | Amount (in thousands) | | :--- | :--- | | Unrestricted cash and cash equivalents | $173,649 | | Short-term investments | $376,193 | | Long-term investments | $31,114 | | **Total Cash & Investments** | **$580,956** | - The company generated **$79.5 million** in cash from operating activities during the first six months of 2025, compared to **$82.3 million** in the same period of 2024[123](index=123&type=chunk) - Financing activities used **$67.1 million** in cash in H1 2025, primarily driven by **$63.5 million** used for common stock repurchases[125](index=125&type=chunk) - Management believes existing cash and cash equivalents are sufficient to satisfy anticipated short- and long-term cash requirements[127](index=127&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that as of June 30, 2025, there have been no material changes to the quantitative and qualitative disclosures about market risk previously reported in its 2024 Form 10-K - There have been no material changes to the market risk disclosures from the company's 2024 Form 10-K[129](index=129&type=chunk) [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[130](index=130&type=chunk) - There were no material changes in the company's internal control over financial reporting during the second quarter of 2025[131](index=131&type=chunk) [PART II - OTHER INFORMATION](index=44&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any litigation that it believes would have a material adverse effect on its business operations - The company reports no material legal proceedings that would adversely affect its business[134](index=134&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to the risk factors from the 2024 Form 10-K were reported as of June 30, 2025[135](index=135&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities,%20Use%20of%20Proceeds,%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company continued its share repurchase program in Q2 2025, repurchasing 826,000 shares after an additional $100 million authorization, leaving $167 million available - In March 2025, the Board of Directors approved an additional **$100 million** for the company's share repurchase program[72](index=72&type=chunk)[136](index=136&type=chunk) Share Repurchase Activity (Q2 2025) (in thousands) | Period | Total Shares Purchased (thousands) | Average Price Paid per Share | Approximate Dollar Value Remaining ($ thousands) | | :--- | :--- | :--- | :--- | | April 2025 | 360 | $46.42 | $195,124 | | May 2025 | 297 | $57.87 | $177,921 | | June 2025 | 169 | $64.34 | $167,031 | | **Total Q2** | **826** | **N/A** | **$167,031** |

Financial Data and Key Metrics Changes - The company reported revenue of $195 million and non-GAAP earnings per diluted share of $1.13, both exceeding expectations [7][22] - Bookings in the second quarter were $96 million, reflecting a book-to-bill ratio of 0.8 times, slightly down sequentially [7][25] - GAAP gross margins were 44.9%, exceeding the outlook of 41.7%, while non-GAAP gross margins were 45.2% compared to an expected 42% [25] - The company generated approximately $38 million in free cash flow in the second quarter [27] Business Line Data and Key Metrics Changes - System revenue was $134 million, and CS&I revenue was $61 million, both slightly above expectations [22] - Shipments in the power business for silicon carbide applications were relatively flat quarter-over-quarter, with continued firm demand in China for 150mm and 200mm applications [10][12] - Revenue from other power applications grew sequentially, primarily due to growth in China [15] Market Data and Key Metrics Changes - China accounted for 65% of total shipped system sales, up from 37% in the prior quarter [22] - The U.S. contributed 19% to system sales, while Korea declined to 8% [22] - The company anticipates second-half revenue in China to be similar to the first half due to customers digesting previous investments [22] Company Strategy and Development Direction - The company is focusing on innovation and deep engagement with customers on their technology roadmaps [19] - The strategy includes a shift towards advanced logic and memory applications, with a focus on next-generation implant applications [17][18] - The company is managing costs prudently while ensuring resources for growth, reflected in a first-half adjusted EBITDA margin of approximately 20% [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainty and cyclical digestion in 2025 but expressed confidence in the company's ability to navigate the downturn [31] - The company expects modest revenue improvement in 2025, driven by pockets of demand in the power market [14] - Management remains optimistic about long-term growth opportunities, particularly in silicon carbide and advanced logic markets [12][14] Other Important Information - The company repurchased approximately $45 million in shares during the second quarter, with $168 million remaining in share repurchase authorization [28][66] - The company is monitoring the tariff environment and believes it is well-positioned to respond to changes [29] Q&A Session Summary Question: Initial indications of wafer start growth in memory market for 2026 - Management indicated that while they are not forecasting for 2026 yet, they expect new capacity to come online in 2025 and early 2026, which could lead to increased demand for implanters [34][35] Question: Outlook for the general mature marketplace - Management believes revenue for 2025 will be slightly up, but not due to general mature markets, which are currently in a digestion period [36] Question: Silicon carbide customers using current period for R&D - Management confirmed that customers are indeed acquiring tools for R&D, which may lead to increased demand for volume production in the future [39][40] Question: Drivers behind strong performance in CS&I - The strong performance in CS&I was attributed to upgrades and related activities rather than tariff pull-ins [62] Question: State of competition in China - Management noted that competition in China is still immature, with new companies struggling to meet the high standards required for advanced tools [72][74] Question: Backlog composition and timing - The backlog reported consists solely of systems-related orders, with projected shipments extending into 2026 [75]

Financial Data and Key Metrics Changes - The company reported revenue of $195 million and non-GAAP earnings per diluted share of $1.13, both exceeding expectations [6][22] - Bookings in the second quarter were $96 million, reflecting a book-to-bill ratio of 0.8 times, slightly down sequentially [6][25] - GAAP gross margins were 44.9%, exceeding the outlook of 41.7%, while non-GAAP gross margins were 45.2% compared to an expected 42% [25][26] - The company generated approximately $38 million in free cash flow in the second quarter [28] Business Line Data and Key Metrics Changes - System revenue was $134 million, and CS and I revenue was $61 million, both slightly above expectations [22] - Shipments in the power business remained flat quarter-over-quarter, with a focus on silicon carbide applications [8][14] - Revenue from other power applications grew sequentially, primarily due to growth in China [14] - Advanced logic remains an underpenetrated market, with a forward order received in the second quarter [15] Market Data and Key Metrics Changes - China accounted for 65% of total shipped system sales, up from 37% in the prior quarter [22] - The U.S. contributed 19% to system sales, while Korea declined to 8% [22] - The company anticipates that second-half revenue in China will be similar to the first half due to customers digesting previous investments [22] Company Strategy and Development Direction - The company is focused on innovation and deep engagement with customers on their technology roadmaps [19] - CS and I revenue made up approximately 30% of total revenue, reflecting the strength of the installed base [20] - The company is managing its cost structure prudently while ensuring resources for growth [21] Management's Comments on Operating Environment and Future Outlook - Management noted macroeconomic uncertainty and cyclical digestion in 2025 but expressed confidence in the company's ability to navigate these challenges [19][32] - The company expects modest improvement in revenue in 2025, driven by pockets of demand [13] - The outlook for the third quarter includes expected revenue of approximately $200 million and non-GAAP diluted earnings per share of about $1 [30] Other Important Information - The company repurchased approximately $45 million in shares during the second quarter, with $168 million remaining in share repurchase authorization [29][68] - The company continues to monitor the tariff environment and believes it is well-positioned to respond to changes [30] Q&A Session Summary Question: Initial indications of wafer start growth in memory market for 2026 - Management indicated that while they are not forecasting for 2026 yet, they expect to see new capacity come online in 2025 and early 2026 [36][37] Question: Outlook for the general mature marketplace - Management believes revenue for 2025 will be slightly up, but not due to general mature, which is currently in a digestion period [38] Question: Silicon carbide customers using current period for R&D - Management confirmed that customers are indeed acquiring tools for R&D, which may lead to increased demand for volume production in the future [41][42] Question: Drivers behind strong performance in CS and I - Management attributed the strong performance to upgrades and related activities rather than tariff pull-ins [64][66] Question: Competition in China - Management noted that competition in China is still immature and closely monitored, with no significant threats outside of China [72][75] Question: Backlog composition and timing - The backlog consists solely of systems-related orders and is expected to carry into 2026 [77] Question: Reconciliation of strong China EV sales with flat sales projection - Management explained that while EV sales are strong, the capacity built in 2024 is leading to a focus on productivity and efficiency rather than new capacity additions [82][84]