Axcelis(US:ACLS)2021-08-05 16:00Revenue and Growth - Total revenue for the three months ended June 30, 2021, was $147.3 million, representing a 19.8% increase compared to $122.97 million for the same period in 2020[83] - Product revenue for the six months ended June 30, 2021, was $266.8 million, accounting for 95.3% of total revenue, up 16.3% from $229.3 million in the same period in 2020[85] - Ion implant products and services generated $142.9 million in revenue for the three months ended June 30, 2021, which is 97.0% of total revenue, compared to $118.7 million or 96.6% for the same period in 2020[89] - Services revenue for the three months ended June 30, 2021, was $7.1 million, a 23.3% increase from $5.8 million in the same period in 2020[85] - Aftermarket revenue for the six months ended June 30, 2021, was $98.9 million, up from $82.8 million in the same period in 2020[91] Profitability and Margins - The gross profit margin for the three months ended June 30, 2021, was 43.4%, compared to 42.2% for the same period in 2020[82] - Product gross profit for the three months ended June 30, 2021, was $63.5 million, a 22.8% increase from $51.7 million in the same period of 2020[93] - Total gross profit for the three months ended June 30, 2021, was $64.0 million, reflecting a 23.3% increase compared to $51.9 million in the prior year[93] - Gross margin from product revenue was 45.3% for the three months ended June 30, 2021, compared to 44.1% for the same period in 2020[93] - Gross margin from services revenue was 7.7% for the three months ended June 30, 2021, up from 3.9% in the same period of 2020[94] - The company reported a total gross margin of 43.4% for the three months ended June 30, 2021, compared to 42.2% in the same period of 2020[93] Expenses - Research and development expenses for the three months ended June 30, 2021, were $16.6 million, up 3.6% from $16.0 million in the same period of 2020[99] - Sales and marketing expenses for the three months ended June 30, 2021, increased by 29.0% to $12.2 million from $9.4 million in the prior year[102] - General and administrative expenses for the three months ended June 30, 2021, were $11.2 million, an increase of 11.7% from $10.0 million in the same period of 2020[104] - Total operating expenses for the three months ended June 30, 2021, were $40.0 million, representing 27.2% of revenue, compared to $35.5 million or 28.9% of revenue in the same period of 2020[96] Tax and Deferred Assets - Income tax expense for the three months ended June 30, 2021, was $3.8 million, an increase of $1.5 million (69.2%) compared to $2.3 million for the same period in 2020, primarily due to a $7.2 million increase in pretax income[110] - For the six months ended June 30, 2021, income tax expense was $5.6 million, up $2.3 million (68.0%) from $3.3 million in the same period of 2020, driven by a $13.1 million increase in pretax income[110] - As of June 30, 2021, the company had $51.4 million in net deferred tax assets related to net operating loss carryforwards and tax credit carryforwards[111] - The company has a $9.1 million valuation allowance against certain tax credits and state net operating losses due to realization uncertainty[111] Cash and Liquidity - The company reported $219.7 million in unrestricted cash and cash equivalents as of June 30, 2021, indicating a strong liquidity position to support business operations and potential investments[112] - Cash generated from operating activities for the six months ended June 30, 2021, was $45.9 million, down from $56.6 million in the same period of 2020[115] - Financing activities for the six months ended June 30, 2021, resulted in a cash usage of $28.3 million, including $25.0 million for stock repurchases[116] - The company has a revolving credit facility of up to $40.0 million, with no borrowings made as of June 30, 2021, and a letter of credit for $5.9 million reducing available funds[118] - The company believes its existing cash, cash equivalents, and financing capacity will be sufficient to meet anticipated cash requirements in the short and long term[119] Market and Operational Insights - The company’s ten largest customers accounted for 71.1% of total revenue for the six months ended June 30, 2021[76] - Deferred revenue increased to $35.5 million as of June 30, 2021, from $23.1 million at the end of 2020, primarily due to customer prepayments for systems[84] - The company is expanding manufacturing capacity in South Korea, expected to come online by year-end 2021[76] - The rapid electrification of the automotive industry is driving demand for power devices and image sensors, contributing to sustainable growth for the company's Purion product extensions[77] - Other expense for the three months ended June 30, 2021, was $1.2 million, compared to $0.8 million in the same period of 2020, primarily due to increased foreign currency exchange losses[109] - There have been no material changes to the quantitative information about market risk as of June 30, 2021[122]