Company Performance - Axcelis Technologies (ACLS) closed at $69.47, reflecting a +0.42% change from the previous day, underperforming the S&P 500 which gained 1.09% [1] - The company is expected to report an EPS of $1.25, a decline of 41.86% year-over-year, with revenue anticipated at $244.9 million, down 21.07% from the same quarter last year [5] - Over the past month, shares of Axcelis Technologies have decreased by 5.6%, contrasting with a 1.8% gain in the Computer and Technology sector and a 0.71% loss in the S&P 500 [9] Earnings Estimates - The Zacks Consensus Estimates for the fiscal year predict earnings of $5.86 per share and revenue of $1.01 billion, representing declines of -21.13% and -10.63% respectively from the previous year [2] - The consensus EPS projection has remained stagnant over the past 30 days, and Axcelis Technologies currently holds a Zacks Rank of 5 (Strong Sell) [3] Valuation Metrics - Axcelis Technologies has a PEG ratio of 2.16, compared to the Electronics - Manufacturing Machinery industry average of 1.61, indicating a higher valuation relative to expected earnings growth [7] - The company is trading at a Forward P/E ratio of 11.81, which is below the industry average Forward P/E of 22.66, suggesting it is undervalued compared to its peers [11] Industry Context - The Electronics - Manufacturing Machinery industry is part of the Computer and Technology sector, which has a Zacks Industry Rank of 236, placing it in the bottom 6% of over 250 industries [12]

Core Insights - Axcelis Technologies, Inc. will showcase its Purion™ and GSD Ovation™ Series of ion implanters at SEMICON Japan 2024, highlighting its role as a leading supplier in the semiconductor industry [1][2] Product Offerings - Purion Power Series™ is designed for thin silicon, TAIKO, and silicon carbide (SiC) wafer processing, supporting 150mm, 200mm, and 300mm wafers [3] - Purion H™ Series provides unmatched purity and precision with industry-leading productivity for high current applications [3] - Purion H200™ is a high current medium energy implanter tailored for IoT and power applications [3] - Purion XE™ Series is the leading high energy implant platform, featuring the Purion XEmax model with Boost Technology™ for advanced image sensor applications up to 15MeV [3] - Purion M™ Series offers low power consumption and a broad range of mid-current doses, providing flexibility for evolving implant requirements [3] - GSD Ovation™ is a cost-effective solution for extending high current and high energy batch platform capabilities, supporting wafer splitting and alternate substrates [3] Event Highlights - Axcelis will host a session on SiC Power Device Manufacturing Ion Implant Technology on December 12, focusing on the transition from 150mm to 200mm SiC wafers and the flexibility required for various wafer sizes and substrate types [4] - A Happy Hour Celebration will take place on December 12, providing an opportunity for attendees to meet the Axcelis team [4] Company Overview - Axcelis has over 45 years of experience in providing innovative, high-productivity solutions for the semiconductor industry, focusing on ion implantation systems [5]

Company Overview - Axcelis Technologies, Inc. (ACLS) is currently experiencing significant activity in the options market, particularly with the Dec 20, 2024 $195.00 Call option showing high implied volatility, indicating potential for a major price movement [1] Analyst Sentiment - The company holds a Zacks Rank of 5 (Strong Sell) within the Electronics Manufacturing Machinery industry, which is positioned in the bottom 5% of the Zacks Industry Rank [3] - Over the past 60 days, no analysts have raised their earnings estimates for the current quarter, while two analysts have lowered their estimates, resulting in a decrease in the Zacks Consensus Estimate from $1.49 per share to $1.25 per share [3] Options Market Insights - The high implied volatility surrounding Axcelis Technologies suggests that options traders anticipate a significant price movement, which could indicate an upcoming event that may lead to either a rally or a sell-off [2][4] - Seasoned options traders often seek to sell premium on options with high implied volatility, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected by expiration [4]

Revenue Performance - Total revenue for the three months ended September 30, 2024, was $256.6 million, a decrease of 12.2% compared to $292.3 million for the same period in 2023[80]. - Product revenue was $246.8 million, or 96.2% of total revenue, down from $283.4 million, or 96.9% of total revenue, for the three months ended September 30, 2023, reflecting a decrease of $36.5 million[81]. - Services revenue increased to $9.7 million, or 3.8% of total revenue, compared to $9.0 million, or 3.1% of total revenue, for the same period in 2023, marking an increase of 8.7%[82]. - Total revenue for the nine months ended September 30, 2024, was $765.4 million, a decrease of 6.7% compared to $820.3 million for the same period in 2023[80]. - Product revenue for the nine months ended September 30, 2024, was $735.6 million, or 96.1% of total revenue, down from $795.0 million, or 96.9% of total revenue, for the same period in 2023[83]. - Services revenue for the nine months ended September 30, 2024, was $29.8 million, or 3.9% of total revenue, compared to $25.3 million, or 3.1% of total revenue, for the same period in 2023[84]. Profitability Metrics - Gross profit for the three months ended September 30, 2024, was $110.4 million, a decrease of 14.1% from $128.6 million for the same period in 2023[88]. - The gross margin from product revenue was 44.7% for the three months ended September 30, 2024, down from 45.4% for the same period in 2023[89]. Operating Expenses - Operating expenses for the three months ended September 30, 2024, were $63.1 million, an increase of $5.1 million or 8.7% compared to $58.0 million for the same period in 2023[91]. - Research and development expenses were $26.4 million for the three months ended September 30, 2024, up $2.3 million or 9.6% from $24.1 million in the same period of 2023[94]. - Personnel costs represented $35.5 million or 56.3% of total operating expenses for the three months ended September 30, 2024, compared to $34.8 million or 60.0% for the same period in 2023[92]. - Sales and marketing expenses increased to $16.8 million for the three months ended September 30, 2024, a rise of $0.3 million or 2.1% from $16.5 million in the same period of 2023[97]. - General and administrative expenses were $19.9 million for the three months ended September 30, 2024, an increase of $2.4 million or 13.8% compared to $17.4 million for the same period in 2023[100]. Other Financial Metrics - Other income for the three months ended September 30, 2024, was $8.5 million, compared to $2.0 million for the same period in 2023, reflecting a $6.5 million increase[103]. - Income tax provision decreased to $6.8 million for the three months ended September 30, 2024, down $0.9 million or 12.3% from $7.7 million in the same period of 2023[104]. - Deferred revenue at September 30, 2024, was $164.0 million, down from $210.9 million at December 31, 2023[82]. - The company's ten largest customers accounted for 48.2% of total revenue for the nine months ended September 30, 2024[75]. Cash Flow and Investments - Cash generated from operating activities for the nine months ended September 30, 2024, was $128.0 million, compared to $91.3 million for the same period in 2023, representing an increase of 40.2%[109]. - Cash outflows from investing activities for the nine months ended September 30, 2024, totaled $117.8 million, compared to $74.2 million in 2023, reflecting a 58.6% increase[110]. - Capital expenditures for the nine months ended September 30, 2024, were $7.5 million, down from $10.5 million in 2023, indicating a decrease of 28.6%[110]. - Cash usage from financing activities for the nine months ended September 30, 2024, was $56.6 million, compared to $53.2 million in 2023, showing an increase of 6.4%[111]. - Common stock repurchases amounted to $45.4 million during the first nine months of 2024, up from $37.5 million in 2023, which is a 21.1% increase[111]. Cash Position and Market Risk - As of September 30, 2024, the company had $120.1 million in unrestricted cash and cash equivalents and $459.3 million in short-term investments[107]. - As of September 30, 2024, the company had a security deposit of $5.9 million related to the lease of its corporate headquarters, classified as long-term restricted cash[112]. - The company believes that its existing cash and cash equivalents will be sufficient to meet anticipated cash requirements for both the short- and long-term[112]. - There have been no material changes to the quantitative information about market risk as of September 30, 2024, compared to disclosures in the 2023 Form 10-K[114].

Financial Data and Key Metrics Changes - The company reported revenue of $257 million and earnings per diluted share of $1.49 for Q3 2024, which was largely in line with expectations [7] - Bookings in the quarter were softer than expected, with a total of $84 million and a backlog of $758 million at the end of the quarter [29][30] - Gross margin was 42.9%, slightly below the target of 43.5%, primarily due to systems mix and lower CS&I revenue [30] - Operating profit was $46.9 million, reflecting an 18.3% operating margin, impacted by a one-time charge of approximately $3.4 million [30][31] - The company generated $42 million of free cash flow in the quarter, with cash, cash equivalents, and short-term investments totaling $579 million [32] Business Line Data and Key Metrics Changes - Revenue from power markets was approximately 57% of total revenue, down from 63% in Q2 2024 [9] - Image sensor revenue was strong, driven by demand from China, particularly for smartphone applications [16] - Advanced Logic did not generate revenue in the quarter, but progress was made with evaluation systems [17] - Memory customers showed early signs of activity, with expectations for additional revenue in Q4 [18] Market Data and Key Metrics Changes - China accounted for 71% of total shipped system sales, primarily due to higher sales to the image sensor market [26] - The company expects revenue from China to decline sequentially in Q4 and the first half of 2025 as customers digest previous investments [26][27] - The silicon carbide market is projected to grow significantly, with a CAGR of 24% from 2023 to 2029 [11] Company Strategy and Development Direction - The company is focused on long-term growth opportunities in silicon carbide, memory, and advanced logic markets [22][23] - There is an emphasis on transitioning customers to trench MOSFETs and supporting the shift from 150mm to 200mm wafer capacity [12] - The company aims to penetrate the Japan market and extend its success in power to other segments [24] Management's Comments on Operating Environment and Future Outlook - Management noted continued softness in bookings and a moderation in growth expectations for key markets in 2025, particularly in China [20] - The preliminary expectation is for revenue in the first half of 2025 to be lower than in the second half of 2024 [21] - Management remains optimistic about long-term growth driven by the adoption of silicon carbide and a cyclical recovery in memory and general mature markets [22][23] Other Important Information - A correction was made to historical backlog numbers, with the backlog for Q2 2024 revised from $994 million to $879 million [27] - The company recorded a bad debt expense related to a European customer that filed for bankruptcy, impacting operating expenses [30] Q&A Session Summary Question: Order activity context and geographic basis - Management noted that softness in general mature and power markets is driving lower order activity, impacting expectations for the first half of 2025 [36][37] Question: Positives and headwinds for 2025 - Bright spots include memory, with expectations for increased activity in Q4, while headwinds include digestion periods in general mature and power markets [38][39] Question: Actions regarding Chinese components - The company actively reviews its supply chain to improve localization and reduce costs, with a strong supply base outside of China [44] Question: General mature market leverage to end markets - Each end market (consumer, industrial, automotive) drives demand, but recovery is needed for a rebound in business [46] Question: GaN opportunity and future outlook - GaN is considered a niche application compared to silicon carbide, which drives more implant steps [51] Question: Transition from 150mm to 200mm wafers - The transition is picking up speed, with many customers working on 200mm capabilities while optimizing existing 150mm processes [54][56] Question: DRAM spending recovery - The company is optimistic about DRAM due to increased utilization and upcoming new fabs, while NAND remains quiet [62][64] Question: Utilization rates of equipment - Utilization rates are generally down, with some spikes in memory due to HBM, but overall demand remains soft [85]

Q3 2024 EARNINGS PRESENTATION NOVEMBER 7, 2024 Purion 2 SAFE HARBOR STATEMENT This presentation and discussion contain forward-looking statements, including our expectations for the future market for our products, revenues, profits, and other results that are forward-looking statements under the SEC's safe harbor provision. These forward-looking statements are based on management's current expectations and are subject to the risks inherent in our business. These risks are described in detail in our Form 10- ...

Company Performance - Axcelis Technologies (ACLS) reported quarterly earnings of $1.49 per share, exceeding the Zacks Consensus Estimate of $1.43 per share, but down from $1.99 per share a year ago, representing an earnings surprise of 4.20% [1] - The company posted revenues of $256.56 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.57%, but down from $292.33 million year-over-year [2] - Over the last four quarters, Axcelis has consistently surpassed consensus EPS and revenue estimates [2] Stock Performance - Axcelis shares have declined approximately 34.1% since the beginning of the year, contrasting with the S&P 500's gain of 21.2% [3] - The current consensus EPS estimate for the upcoming quarter is $1.49 on revenues of $260.6 million, and for the current fiscal year, it is $6.05 on revenues of $1.02 billion [7] Industry Outlook - The Electronics - Manufacturing Machinery industry, to which Axcelis belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Axcelis may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] Future Expectations - The sustainability of Axcelis's stock price movement will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The estimate revisions trend for Axcelis is currently mixed, resulting in a Zacks Rank 3 (Hold), suggesting that shares are expected to perform in line with the market in the near future [6]

Revenue and Profit - Revenue for Q3 2024 was $256.6 million, with a gross margin of 42.9% and operating profit of $46.9 million[1] - Net income for Q3 2024 was $48.6 million, or $1.49 per diluted share[1] - Axcelis expects Q4 2024 revenue of approximately $245 million and diluted earnings per share of $1.25[3] - Total revenue for the nine months ended September 30, 2024 was $765.4 million, compared to $820.3 million for the same period in 2023[10] - Gross profit for the nine months ended September 30, 2024 was $338.4 million, down from $353.4 million in the same period of 2023[10] - Net income for the nine months ended September 30, 2024 was $151.0 million, compared to $175.2 million in the same period of 2023[10] Backlog - Corrected backlog as of September 30, 2024 was $758 million, down from $879 million as of June 30, 2024[4] Financial Position - Cash and cash equivalents as of September 30, 2024 were $120.1 million, down from $167.3 million as of December 31, 2023[11] - Total assets as of September 30, 2024 were $1.34 billion, up from $1.28 billion as of December 31, 2023[11] - Stockholders' equity as of September 30, 2024 was $975.6 million, up from $864.9 million as of December 31, 2023[11]

Revenue of $256.6 million Operating margin of 18.3% Diluted earnings per share of $1.49BEVERLY, Mass., Nov. 6, 2024 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the third quarter ended September 30, 2024. The Company reported third quarter revenue of $256.6 million, compared to $256.5 million for the second quarter of 2024. Gross margin for the quarter was 42.9%, compared to 43.8% in the second quarter. Operating profit for the quarter was $46.9 million, ...

Axcelis Technologies Inc (ACLS) is slated to report third-quarter 2024 results on Nov. 6.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.For the third quarter, ACLS estimates revenues of approximately $255 million. The Zacks Consensus Estimate for revenues also stands at $255.1 million, indicating a 12.7% decline from a year ago. ACLS expects earnings per share for the quarter to be $1.43. The consensus mark for EPS is also pegged at $1.43, unchanged in the past 60 days and indicati ...