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]

Company Performance - Axcelis Technologies (ACLS) ended the recent trading session at $67.93, showing a -4% change from the previous day's closing price, which is a lag compared to the S&P 500's daily loss of 0.27% [1] - Over the past month, shares of Axcelis have appreciated by 12.57%, outperforming the Computer and Technology sector's gain of 11.99% and the S&P 500's gain of 6.9% [1] Upcoming Earnings - The upcoming earnings release is expected to report an EPS of $0.73, which is a decrease of 52.9% from the prior-year quarter [2] - The Zacks Consensus Estimate for revenue is projecting net sales of $185.2 million, down 27.8% from the year-ago period [2] Full Year Projections - For the full year, the Zacks Consensus Estimates project earnings of $3.29 per share and revenue of $751.1 million, representing changes of -46.5% and -26.21%, respectively, from the prior year [3] Analyst Estimates - Recent modifications to analyst estimates for Axcelis Technologies are important as they indicate changing near-term business trends, with positive revisions signaling optimism about the business outlook [4] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Axcelis Technologies at 3 (Hold), with the consensus EPS projection remaining stagnant over the past 30 days [6] - Historically, 1 ranked stocks have generated an average annual return of +25% since 1988 [6] Valuation Metrics - Axcelis Technologies is trading at a Forward P/E ratio of 21.51, which is a discount compared to the industry average Forward P/E of 21.87 [7] - The company has a PEG ratio of 3.92, while the Electronics - Manufacturing Machinery industry had an average PEG ratio of 1.78 [7] Industry Context - The Electronics - Manufacturing Machinery industry is part of the Computer and Technology sector and currently holds a Zacks Industry Rank of 226, placing it in the bottom 9% of all 250+ industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Technical Analysis - Axcelis Technologies (ACLS) has reached a significant support level and is considered a good pick for investors from a technical perspective [1] - ACLS recently broke through the 20-day moving average, indicating a short-term bullish trend [1] - The 20-day simple moving average is a popular tool among traders, providing insights into short-term price trends and trend reversals [2] Price Movement - ACLS has moved 5.9% higher over the last four weeks, suggesting potential for further gains [5] - A positive trend is indicated when a stock's price is above the 20-day moving average, while a price below it signals a downward trend [3] Earnings Estimates - The bullish case for ACLS is strengthened by positive earnings estimate revisions, with no estimates decreasing in the past two months and three increasing [5] - The consensus estimate for ACLS has also increased, further supporting the positive outlook [5][6]