Axcelis(US:ACLS)2024-11-07 21:02Revenue 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].