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]

Group 1 - Axcelis Technologies reported quarterly earnings of $1.13 per share, exceeding the Zacks Consensus Estimate of $0.73 per share, but down from $1.55 per share a year ago, resulting in an earnings surprise of +54.79% [1] - The company achieved revenues of $194.54 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.07%, although this is a decrease from year-ago revenues of $256.51 million [2] - Over the last four quarters, Axcelis has consistently surpassed consensus EPS and revenue estimates [2] Group 2 - The stock's immediate price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - Year-to-date, Axcelis shares have increased by about 1.5%, underperforming the S&P 500's gain of 7.6% [3] - The current consensus EPS estimate for the upcoming quarter is $0.73 on revenues of $185.8 million, and for the current fiscal year, it is $3.29 on revenues of $751.1 million [7] Group 3 - The Zacks Industry Rank indicates that the Electronics - Manufacturing Machinery sector is currently in the bottom 27% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5][6]

[Axcelis Q2 2025 Financial Results](index=1&type=section&id=Axcelis%20Q2%202025%20Financial%20Results) [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) Axcelis reported strong Q2 2025 results with $194.5 million in revenue and a non-GAAP diluted EPS of $1.13, reflecting disciplined cost control and profitability - Management highlighted strong performance driven by customer engagement, expansion in high-value applications, and momentum in the CS&I business[2](index=2&type=chunk) - The company's strong balance sheet enabled continued investment and an increased share repurchase of **$45 million**[2](index=2&type=chunk) Q2 2025 vs. Q2 2024 Performance Summary | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Revenue** | $194.5M | $256.5M | | **GAAP Gross Margin** | 44.9% | 43.8% | | **Non-GAAP Gross Margin** | 45.2% | 44.3% | | **GAAP Operating Margin** | 14.9% | 20.6% | | **Non-GAAP Operating Margin** | 17.7% | 23.3% | | **GAAP Diluted EPS** | $0.98 | $1.55 | | **Non-GAAP Diluted EPS** | $1.13 | $1.73 | | **Adjusted EBITDA** | $38.9M | $63.6M | [Q3 2025 Business Outlook](index=2&type=section&id=Business%20Outlook) For Q3 2025, Axcelis anticipates revenues of approximately $200 million, with a projected non-GAAP earnings per share of approximately $1.00 Q3 2025 Guidance | Metric | Guidance | | :--- | :--- | | **Revenues** | ~$200 million | | **GAAP Diluted EPS** | ~$0.87 | | **Non-GAAP Diluted EPS** | ~$1.00 | [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section presents detailed unaudited financial statements for the three and six months ended June 30, 2025, compared to the same periods in 2024 [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 revenue decreased to $194.5 million from $256.5 million year-over-year, leading to a decline in net income to $31.4 million Q2 2025 vs. Q2 2024 Income Statement (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Total Revenue** | $194,544 | $256,512 | | **Gross Profit** | $87,343 | $112,409 | | **Income from Operations** | $28,965 | $52,810 | | **Net Income** | $31,376 | $50,866 | | **Diluted EPS** | $0.98 | $1.55 | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets were $1.32 billion as of June 30, 2025, with increased cash and cash equivalents and a stronger stockholders' equity of $1.02 billion Balance Sheet Summary (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $173,649 | $123,512 | | **Total Current Assets** | $1,064,475 | $1,123,608 | | **Total Assets** | $1,323,486 | $1,348,781 | | **Total Liabilities** | $301,103 | $335,991 | | **Total Stockholders' Equity** | $1,022,383 | $1,012,790 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company generated $39.7 million in net operating cash flow and used $47.0 million in financing activities, driven by a $45.3 million stock repurchase Q2 2025 vs. Q2 2024 Cash Flow Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $39,727 | $40,067 | | **Net cash used in investing activities** | $(4,613) | $(5,603) | | **Net cash used in financing activities** | $(46,987) | $(22,601) | | **Repurchase of common stock** | $(45,337) | $(14,996) | [Non-GAAP Financial Measures and Reconciliations](index=7&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section provides detailed reconciliations of GAAP to non-GAAP financial measures used by management to evaluate operational performance - The company uses non-GAAP measures to provide a perspective consistent with management's evaluation of the business, primarily by adjusting for **stock-based compensation** and **restructuring costs**[8](index=8&type=chunk)[20](index=20&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=8&type=section&id=Schedule%20Reconciling%20Selected%20Non-GAAP%20Financial%20Measures) Q2 2025 GAAP net income of $31.4 million was adjusted to a non-GAAP net income of $36.0 million, primarily due to stock-based compensation add-backs Q2 2025 GAAP to Non-GAAP Reconciliation (in thousands, except EPS) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | **Gross Profit** | $87,343 | $569 | $87,912 | | **Operating Income** | $28,965 | $5,392 | $34,357 | | **Net Income** | $31,376 | $4,637 | $36,013 | | **Diluted EPS** | $0.98 | $0.15 | $1.13 | [Reconciliation of Net Income to Adjusted EBITDA](index=9&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) Adjusted EBITDA for Q2 2025 was $38.9 million, reconciled from a net income of $31.4 million by adding back taxes, D&A, and stock-based compensation Q2 2025 vs. Q2 2024 Net Income to Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net Income** | $31,376 | $50,866 | | **Adjustments (Taxes, D&A, etc.)** | $2,104 | $5,805 | | **Stock-based compensation** | $5,421 | $5,469 | | **Adjusted EBITDA** | $38,872 | $63,568 | | **Adjusted EBITDA Margin** | 20.0% | 24.8% |

Financial Performance - Q2 2025 revenue reached $194.5 million[25], exceeding expectations[7] - Non-GAAP diluted earnings per share (EPS) stood at $1.13[7] - GAAP diluted EPS was $0.98[7] - Q3 2025 revenue is projected to be approximately $200 million[29] - Q3 2025 Non-GAAP diluted earnings per share is expected to be around $1.00[29] Revenue Breakdown - Mature process technology accounted for 97% of total shipped system revenue in Q2 2025[13] - Power general mature represented 43% of total shipped system revenue in Q2 2025[14] - Silicon Carbide (SiC) power contributed 40% to shipped system revenue[11] - Other Power (IGBT, etc) made up 15% of shipped system revenue[11] - Memory accounted for 3% of shipped system revenue[11] Geographic Performance - China accounted for 55% of total revenue in Q2 2025[25] - The United States contributed 18% to total revenue in Q2 2025[25] - South Korea accounted for 13% of total revenue in Q2 2025[25]

Core Insights - Axcelis Technologies reported strong financial results for Q2 2025, despite a cyclical digestion period in many markets, highlighting customer engagement and growth in high-value applications [2][3] - The company generated significant profitability and cash flow, with increased share repurchase activity reflecting confidence in long-term fundamentals [2][3] Financial Performance - Revenue for Q2 2025 was $194.544 million, down from $256.512 million in Q2 2024, representing a decrease of approximately 24.1% [3] - Gross margin improved to 44.9% from 43.8% year-over-year, while operating margin decreased to 14.9% from 20.6% [3] - Net income for Q2 2025 was $31.376 million, compared to $50.866 million in Q2 2024, a decline of about 38.2% [3] - Diluted earnings per share (EPS) were $0.98, down from $1.55 in the same quarter last year [3] Non-GAAP Financial Results - Non-GAAP gross margin was reported at 45.2%, up from 44.3% year-over-year, while non-GAAP operating margin decreased to 17.7% from 23.3% [3] - Adjusted EBITDA for Q2 2025 was $38.872 million, down from $63.568 million in Q2 2024 [3] - Non-GAAP net income was $36.013 million, compared to $56.797 million in the prior year [3] Business Outlook - For Q3 2025, Axcelis expects revenues of approximately $200 million and GAAP diluted EPS of approximately $0.87, with non-GAAP EPS projected at approximately $1.00 [4]

Company Overview - Axcelis Technologies, Inc. is a leading supplier of ion implantation solutions for the semiconductor industry, with over 45 years of experience [1] - The company focuses on developing high-productivity solutions and providing complete life cycle support for ion implantation systems, which are critical in the integrated circuit manufacturing process [1] Upcoming Investor Conferences - Axcelis will participate in the KBCM Technology Leadership Forum on August 11th at Montage Deer Valley, Park City, UT [3] - The company will also attend the Jefferies Semiconductor, IT Hardware and Communications Technology Conference on August 26th at the Four Seasons Hotel, Chicago, IL [3] - Additionally, Axcelis is set to join the Evercore ISI 2025 Semiconductor, IT Hardware & Networking Conference on August 27th at the Omni Chicago, IL [3]

Group 1 - Navitas Semiconductor (NVTS) is collaborating with Nvidia (NVDA) on the next generation of data center architecture, specifically the 800 V HVDC architecture [1] - The focus of the new architecture is primarily on enhancing data center efficiency and performance [1] Group 2 - The author has a background in financial media and aims to identify investment opportunities in undervalued companies [1] - The analysis includes thorough research on financial statements, market trends, and upcoming events that may impact specific companies or industries [1]

Core Viewpoint - Axcelis Technologies, Inc. is set to release its financial results for the second quarter of 2025 on August 5, 2025, before market opening [1] Group 1: Financial Results Announcement - The financial results will be discussed in a call scheduled for 8:30 a.m. ET on the same day [2] - The call will be accessible via webcast on Axcelis' Investors page [2] Group 2: Company Overview - Axcelis has been a key supplier of ion implantation solutions for the semiconductor industry for over 45 years [3] - The company focuses on developing enabling process applications through the design, manufacture, and life cycle support of ion implantation systems [3]

Group 1 - The semiconductor industry is crucial for the growth of Axcelis Technologies, driven by the demand for advanced processors, memory devices, and back-end chips [1] - Increased production of semiconductor products by manufacturers is essential for meeting the rising demand in the market [1] Group 2 - The company employs long/short equity strategies and conducts deep fundamental analysis to identify undervalued stocks for long positions and overvalued stocks for short positions [1] - Detailed financial models are built using discounted cash flow (DCF), relative valuation, and scenario analysis to assess company fundamentals and growth potential [1] - The company monitors market trends, sector dynamics, and macroeconomic factors to adjust strategies and optimize portfolio performance in real time [1]