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]

Financial Performance - Axcelis Technologies reported third quarter revenue of $256.6 million, slightly up from $256.5 million in the previous quarter [1] - The operating margin for the quarter was 18.3%, with a gross margin of 42.9%, down from 43.8% in the second quarter [1] - Net income for the quarter was $48.6 million, translating to diluted earnings per share of $1.49, compared to $50.9 million and $1.55 per diluted share in the second quarter [1][12] Management Commentary - President and CEO Russell Low stated that the company executed well in the third quarter, with results aligning with expectations, and highlighted strong customer engagement and long-term growth opportunities in silicon carbide and memory markets [2] - CFO Jamie Coogan expressed satisfaction with the financial performance and emphasized strong cash generation and disciplined cost management, positioning the company for future growth [2] Business Outlook - For the fourth quarter ending December 31, 2024, Axcelis expects revenues of approximately $245 million and earnings per diluted share of approximately $1.25 [3] Backlog Correction - The company identified an error in the calculation of backlog, with the corrected backlog as of June 30, 2024, being $879 million, down from a previously reported $994 million; the backlog as of September 30, 2024, was $758 million [4]

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 ...

Core Viewpoint - Axcelis Technologies, Inc. is set to release its financial results for the third quarter of 2024 on November 6, 2024, and will host a call to discuss these results on November 7, 2024 [1] 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]

Core Insights - Significant spending on artificial intelligence (AI) infrastructure is expected from major technology companies, leading to substantial opportunities for chip manufacturers [1][2] Group 1: Major Technology Companies' Spending - Microsoft plans to spend $55.7 billion on capital expenditures (capex) for AI data center infrastructure in fiscal 2024 [1] - Amazon's capex for AI in the first half of 2024 is $30.5 billion [1] - Alphabet allocated $25 billion for AI capex in the first half of 2024 [1] - Meta Platforms intends to spend between $37 billion and $40 billion on AI capex for the entirety of 2024 [1] - Oracle's AI capex for fiscal 2024 is $6.9 billion [1] Group 2: Chip Companies and Their Prospects - Nvidia is the leader in data center GPUs, with its H100 GPU setting industry benchmarks and new Blackwell architecture expected to enhance performance significantly [3][4] - Micron Technology's HBM3E memory chips are in high demand, with a 93% year-over-year revenue increase to $7.7 billion in fiscal 2024 [5][6] - Axcelis Technologies is positioned to benefit from the growing demand for power devices and memory chips, with a potential record revenue of $1.3 billion in 2025 [7][8] - Broadcom's AI semiconductor business has seen substantial growth, with a projected total revenue of $51.5 billion for fiscal 2024, including $12 billion from AI [9][10] - Advanced Micro Devices (AMD) is competing in the data center segment with its MI300 GPUs and plans to release the faster MI350 next year, while also leading in AI chips for personal computing [11][12]

Group 1 - Academy Sports and Outdoors, Inc. (ASO) operates as a sporting goods and outdoor recreational products retailer, with a Zacks Consensus Estimate for its current year earnings revised downward by 4.8% over the last 60 days [1] - American Vanguard Corporation (AVD) is a specialty chemicals company, experiencing a significant downward revision of 177.3% in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Axcelis Technologies, Inc. (ACLS) serves as an equipment supplier to the semiconductor industry, with its current year earnings estimate revised downward by 8.2% in the past 60 days [1]

Company Participation - Axcelis Technologies, Inc. will participate in the International Conference on Silicon Carbide and Related Materials (ICSCRM 2024) from September 29 to October 4, 2024, at the Raleigh Convention Center in North Carolina [1] - Management will be available for one-on-one meetings during the event [1] Industry Insights - The President and CEO of Axcelis, Dr. Russell Low, highlighted the significance of ICSCRM 2024 as a key technology forum in the power market [1] - Axcelis' Purion™ Power Series is recognized as a technology leader in the market, attributed to its differentiated features and process control [1] - The ion implantation process is critical in the manufacturing of Silicon Carbide devices, a market projected to grow at a 25% CAGR from 2023 to 2029 according to Yole [1]