Axcelis(US:ACLS)2025-05-06 21:17Revenue Performance - For the three months ended March 31, 2025, total revenue decreased to $192.6 million, down 23.7% from $252.4 million in the same period of 2024[84]. - Product revenue was $182.8 million, representing 94.9% of total revenue, a decrease of 24.9% compared to $243.4 million in the prior year[85]. - Services revenue increased to $9.7 million, or 5.1% of total revenue, up 8.8% from $9.0 million in the same period of 2024[87]. - Systems revenue for the three months ended March 31, 2025, was $137.6 million, down from $195.5 million in the same period of 2024[88]. - The company’s ten largest customers accounted for 67.3% of total revenue for the three months ended March 31, 2025[78]. Profitability and Expenses - Gross profit margin for the three months ended March 31, 2025, was 46.1%, slightly up from 46.0% in the prior year[90]. - Research and development expenses rose to $27.1 million, accounting for 14.1% of revenue, an increase of 5.7% from $25.7 million in the same period of 2024[96]. - Operating expenses totaled $59.6 million, representing 31.0% of revenue, compared to 23.6% in the prior year[93]. - General and administrative expenses increased to $17.4 million for the three months ended March 31, 2025, up by $1.0 million or 5.8% from $16.4 million in the same period of 2024[100]. - Other income rose to $3.9 million for the three months ended March 31, 2025, compared to $2.5 million in the prior year, reflecting a $1.5 million increase primarily due to a decrease in net foreign exchange losses[102]. Taxation - The income tax provision decreased to $4.5 million for the three months ended March 31, 2025, down by $2.9 million or 39.2% from $7.4 million in the same period of 2024[103]. - The effective tax rate (ETR) for the three months ended March 31, 2025 was 13.6%, compared to 12.5% for the same period in 2024, primarily due to a decrease in pre-tax book income[104]. Cash Flow and Liquidity - As of March 31, 2025, the company had $184.0 million in unrestricted cash and cash equivalents and $403.1 million in short-term investments, indicating strong liquidity[105]. - Cash generated from operating activities was $39.8 million for the three months ended March 31, 2025, compared to $42.2 million in the same period of 2024[107]. - Investing activities generated cash of $40.5 million for the three months ended March 31, 2025, with $297.9 million related to maturities and sales of short-term investments[109]. - Financing activities resulted in cash usage of $20.1 million for the three months ended March 31, 2025, including $18.2 million for stock repurchases[110]. - The company believes its existing cash and cash equivalents will be sufficient to meet anticipated cash requirements for both the short- and long-term[111]. Market Environment - The geopolitical environment surrounding trade and tariffs did not have a meaningful impact on financial results during the reporting period[80]. - There have been no material changes to the quantitative information about market risk as of March 31, 2025[113].