Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-30941 AXCELIS TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) Delaware 34-1818596 (S ...

Financial Data and Key Metrics Changes - Revenue for Q1 2024 was $252.4 million, exceeding forecasts, with earnings per diluted share at $1.57, a 10% increase from $1.43 in the same period last year [6][18] - Gross margin improved by over 500 basis points, primarily due to product mix, despite higher selling costs, R&D, and taxes [6][19] - Systems bookings totaled $107 million, with a systems backlog of $1.1 billion at the end of the quarter [18] Business Line Data and Key Metrics Changes - Systems revenue was $195.4 million, while CS&I revenue was $56.9 million, reflecting flat system volume and a modest decline in CS&I compared to the prior year [18] - Mature nodes accounted for 99% of shipped systems revenue, with power devices leading at 55% of total systems revenue [9][10] - In the power segment, silicon carbide and silicon IGBTs represented 76% and 24% of the revenue recognized, respectively [10] Market Data and Key Metrics Changes - Geographically, China represented 59% of sales, followed by the U.S. at 17%, Japan at 7%, Europe at 4%, Korea at 4%, and the rest of the world at 9% [9] - The company expects China to represent 40% to 60% of quarterly systems revenue moving forward [11] Company Strategy and Development Direction - The company aims to extend its lead in the power market and establish a position in advanced logic through focused R&D and marketing efforts [7][14] - Investments are being made in joint development engagements and evaluation systems to grow market share [7][21] - The company is focused on improving operational efficiency and gross margins, with a retirement incentive program expected to yield cost savings in the second half of the year [20] Management's Comments on Operating Environment and Future Outlook - Management anticipates a stronger second half of 2024, driven by recovery in mature markets and continued strength in the power segment [17][68] - The timing of the recovery in memory markets is expected to be later than previously anticipated, with NAND recovery not expected until 2025 [11][68] - Management remains optimistic about long-term growth driven by trends in electric vehicles, AI, and IoT [14][16] Other Important Information - The company ended Q1 with $530.2 million in available cash and generated $42.2 million from operations [23] - A share repurchase program has returned over $200 million to shareholders since 2019 [23] Q&A Session Summary Question: Insights on near-term order dynamics and second half sales potential - Management noted a $1 billion run rate in the first half and expects a stronger second half, supported by a $1.1 billion backlog and improved quoting activity [28][29] Question: Impact of gross margin optimization initiatives - The early retirement incentive program is expected to cost approximately $1.5 million, with benefits accruing in the second half of 2024 [31] Question: DRAM recovery timeline and market drivers - Management acknowledged a slower DRAM recovery but noted strong demand for high-bandwidth memory and plans for future capacity expansions [36][39] Question: Trends in silicon carbide and other markets - Management confirmed continued strength in silicon carbide, with expectations for a recovery in general mature markets driven by consumer spending [47][52] Question: Long-term growth drivers and market conditions - Management highlighted the importance of power devices and the expected recovery in memory markets as key drivers for achieving long-term growth targets [72][74]

Axcelis Technologies (ACLS) reported first-quarter 2024 non-GAAP earnings per share (EPS) of $1.57, which surpassed the Zacks Consensus Estimate of $1.26. The bottom line increased 9.8% year over year.Revenues in the quarter totaled $252.4 million, beating the Zacks Consensus Estimate by 4%. Healthy shipments to China, coupled with impetus in the implant-intensive power device segment, notably silicon carbide, are driving top-line growth. The company is also making strides in capturing new global customers ...

Investor Presentation May 1, 2024 11 Safe Harbor Statement This presentation and discussion contain forward-looking statements, including our expectations for the future market ...

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 w ...

Revenue, Gross Margin and EPS Beat Guidance  BEVERLY, Mass., May 1, 2024 /PRNewswire/ -- 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. N ...

Axcelis Technologies Inc (ACLS) is slated to report first-quarter 2024 results on May 1.ACLS anticipates first-quarter revenues of approximately $242 million. Earnings per share (EPS) for the quarter are projected to be approximately $1.22.The Zacks Consensus Estimate for first-quarter revenues is pegged at $242.6 million, which suggests a decline of 4.5% from a year ago. The consensus mark for EPS is pegged at $1.26, indicating a decrease of 11.9% from the prior-year levels.ACLS’ earnings beat the Zacks Co ...

Core Viewpoint - The semiconductor sector is experiencing a cyclical downturn, but there is potential for strong earnings growth in 2025, driven by AI demand and a recovery in the broader market [2][18]. Semiconductor Sector Overview - The semiconductor industry is cyclical, with many subsectors not benefiting from the current AI-driven demand, leading to revenue contraction and stagnating share prices [2]. - The Invesco PHLX Semiconductor ETF (NASDAQ: SOXQ) is analyzed for its balance of AI-driven companies and those expected to recover in 2025, potentially driving EPS growth over 30% [2]. ETF Performance - SOXQ, a newer ETF launched in mid-2021, competes with established ETFs like SMH and SOXX, which are significantly larger in assets under management (AUM) [3]. - SOXQ has shown a better balance in stock weights compared to its competitors, despite its short history [3]. Index Methodology - SOXQ utilizes the Philadelphia Semiconductor Index, selecting 30 top US-listed companies and weighing them by market capitalization with specific limits for the top three companies [5][6]. - This methodology provides adequate diversification and concentration across the sector, with SOXQ and SOXX exhibiting similar index traits [5]. Portfolio Upside Potential - The ETF's 30 stocks have a consensus price appreciation potential of 21%, with small-cap names like Axcelis Tech and Wolfspeed showing over 50% upside potential [10]. - The average upside across the ETF's holdings is 24%, indicating high analyst expectations [10]. Revenue Growth and Net Margins - The ETF is projected to see over 18% revenue growth, driven by key players like Nvidia and Broadcom, with a solid outlook for 2025 [12]. - Approximately 30% of the companies in the ETF are expected to experience revenue declines in 2024 before rebounding in 2025 [12]. EPS Growth - The consensus EPS growth rate for the ETF portfolio is over 25% for the YE24-25 period, with significant acceleration expected in 2025 [14]. - Key contributors to this growth include Nvidia, AMD, and Intel, which are anticipated to support the sector during the downturn [14]. Valuation Metrics - SOXQ is relatively cheap with a PEG ratio of 1.2x based on consensus EPS growth, compared to higher ratios for the NASDAQ and S&P 500 [16]. - The weighted price-to-earnings (P/E) ratio for the ETF is 29x for YE24, decreasing to 21x for YE25 estimates, indicating a favorable valuation [16]. Conclusion - SOXQ is rated as a strong buy, with expectations of a cyclical recovery in the semiconductor sector and continued AI-driven demand benefiting the ETF's composition [18].

Axcelis Technologies (ACLS) ended the recent trading session at $97.24, demonstrating a +1.95% swing from the preceding day's closing price. This change outpaced the S&P 500's 1.2% gain on the day. At the same time, the Dow added 0.69%, and the tech-heavy Nasdaq gained 1.59%.Prior to today's trading, shares of the semiconductor services company had lost 11.49% over the past month. This has lagged the Computer and Technology sector's loss of 6.83% and the S&P 500's loss of 4.16% in that time.The upcoming ear ...

The most recent trading session ended with Axcelis Technologies (ACLS) standing at $95.38, reflecting a +0.62% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.87%. Elsewhere, the Dow saw an upswing of 0.67%, while the tech-heavy Nasdaq appreciated by 1.11%.Heading into today, shares of the semiconductor services company had lost 15.86% over the past month, lagging the Computer and Technology sector's loss of 5.98% and the S&P 500's loss of 3. ...