Axcelis(US:ACLS)2025-11-06 20:37Revenue Performance - For the nine months ended September 30, 2025, total revenue decreased by 21.5% to $600.7 million compared to $765.4 million for the same period in 2024[104]. - Product revenue for the nine months ended September 30, 2025, was $567.4 million, a decrease of 22.9% from $735.6 million in the prior year, representing 94.5% of total revenue[109]. - Services revenue increased by 11.6% to $33.3 million for the nine months ended September 30, 2025, compared to $29.8 million for the same period in 2024, accounting for 5.5% of total revenue[110]. - The company's ten largest customers accounted for 53.7% of total revenue for the nine months ended September 30, 2025[94]. Profitability Metrics - Gross profit for the three months ended September 30, 2025, was $88.8 million, a decrease of $21.2 million or 19.2% compared to $110.0 million for the same period in 2024[114]. - The gross margin for the nine months ended September 30, 2025, was 41.5%, compared to 42.8% for the same period in 2024, indicating a decline in overall profitability[114]. - Product gross margin was 44.3% for the three months ended September 30, 2025, slightly down from 44.7% in the same period of 2024 due to a less favorable mix of system shipments[115]. - Services gross margin improved to (2.7)% for the three months ended September 30, 2025, compared to (4.9)% in the same period of 2024, attributed to changes in service contract mix[116]. Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $63.8 million, an increase of $0.7 million or 1.2% compared to $63.1 million in 2024[120]. - Research and development expenses increased to 13.1% of total revenue for the nine months ended September 30, 2025, compared to 10.2% in the prior year[103]. - Research and development expenses decreased by $1.8 million or 6.6% to $24.6 million for the three months ended September 30, 2025, primarily due to lower personnel expenses[123]. - Sales and marketing expenses decreased by $1.0 million or 5.8% to $15.8 million for the three months ended September 30, 2025, driven by lower personnel expenses[126]. - General and administrative expenses increased by $3.5 million or 17.4% to $23.3 million for the three months ended September 30, 2025, mainly due to increased merger-related professional fees[129]. Cash Flow and Investments - Cash generated from operating activities for the nine months ended September 30, 2025 was $124.9 million, compared to $128.0 million for the same period in 2024[138]. - Investing activities for the nine months ended September 30, 2025 resulted in cash generated of $37.2 million, with $506.6 million from maturities and sales of short-term investments[139]. - Financing activities for the nine months ended September 30, 2025 resulted in cash usage of $99.9 million, primarily due to $95.9 million used for stock repurchases[140]. - As of September 30, 2025, the company had $187.5 million in unrestricted cash and cash equivalents, $262.1 million in short-term investments, and $143.2 million in long-term investments[136]. - The company believes its existing cash and cash equivalents will be sufficient to meet anticipated cash requirements for both short- and long-term[142]. Other Financial Information - Deferred revenue at September 30, 2025, was $128.9 million, down from $138.2 million at December 31, 2024[107]. - The geopolitical environment surrounding trade and tariffs did not have a meaningful impact on financial results for the nine months ended September 30, 2025[97]. - The company entered into a Merger Agreement with Veeco Instruments Inc. on September 30, 2025, with the merger subject to regulatory and stockholder approvals[99]. - Other income for the three months ended September 30, 2025, was $5.1 million, a decrease of $3.3 million or 39.3% compared to $8.5 million in 2024, primarily due to lower net foreign exchange gains[132]. - Income tax provision for Q3 2025 was $4.2 million, a decrease of $2.6 million (38.7%) from $6.8 million in Q3 2024, primarily due to a decrease in pre-tax book income[135]. - The effective tax rate (ETR) for Q3 2025 was 13.8%, up from 12.3% in Q3 2024, influenced by the One Big Beautiful Bill Act[135]. - Significant commitments and contingencies as of September 30, 2025 remain consistent with previous disclosures[143]. - No material changes to market risk disclosures have occurred since the last report[144].