Axcelis(US:ACLS)2025-02-28 00:30Revenue Performance - Revenue for 2024 was $1,017.9 million, a decrease of 10.0% from $1,130.6 million in 2023[160]. - Systems revenue for 2024 was $782.6 million, down from $883.6 million in 2023, reflecting a decrease in the number of Purion systems sold[160][180]. - Revenue from the top 10 customers accounted for 45.9% of total revenue in 2024, down from 51.7% in 2023[162]. - Services revenue increased by 17.3% to $41.0 million in 2024, compared to $35.0 million in 2023[182]. - Aftermarket revenue was $235.3 million in 2024, a decrease from $247.0 million in 2023[185]. Profitability Metrics - Gross margin for 2024 improved to 44.7% compared to 43.5% in 2023[160][178]. - Net income for 2024 was $201.0 million, down from $246.3 million in 2023, representing a decline of 18.4%[160]. - Product revenue gross margin increased to 46.3% for the twelve months ended December 31, 2024, up from 44.5% in 2023[187]. - Services revenue gross margin decreased to 5.4% for the twelve months ended December 31, 2024, down from 10.7% in 2023[188]. Expenses and Investments - Research and development expenses increased to 10.4% of total revenue in 2024, up from 8.6% in 2023[178]. - Research and development expenses rose to $105.5 million in 2024, an increase of $8.6 million, or 8.9%, compared to $96.9 million in 2023[191]. - Total operating expenses increased to $243.9 million in 2024, up $18.4 million, or 8.1%, from $225.5 million in 2023[189]. - Cash used in investing activities was $108.7 million in 2024, with $12.2 million allocated for capital expenditures[202]. Cash Flow and Financial Position - Cash provided by operating activities was $140.8 million in 2024, compared to $156.9 million in 2023[201]. - Cash used in financing activities was $71.2 million in 2024, compared to $68.3 million in 2023[205]. - Working capital at December 31, 2024, was $916.1 million, with no bank debt reported[201]. - The company’s investment portfolio primarily consists of cash equivalents and short-term investments as of December 31, 2024[214]. Customer and Market Insights - The company received 22 customer satisfaction awards in 2024, highlighting its commitment to customer service[163]. - The total amount of deferred revenue decreased to $138.2 million in 2024 from $210.9 million in 2023, primarily due to a decrease in system prepayments[181]. - Approximately 6.2% of the company’s revenue in 2024 was derived from local currencies in foreign operations, compared to 5.8% in 2023[215]. - Operations outside the United States accounted for approximately 9.2% of total assets in 2024, down from 9.4% in 2023[215]. Other Income and Taxation - Other income increased to $19.5 million in 2024, a rise of $6.7 million, or 52.1%, compared to $12.8 million in 2023[198]. - Income tax provision decreased to $29.3 million in 2024, down from $32.3 million in 2023, reflecting a 9.4% decline[199].