8-K
AXCELIS TECHNOLOGIES INC (ACLS)
UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section
13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 6, 2024
Axcelis Technologies, Inc.
(Exact name of registrant as specified in its charter)
| Delaware | 000-30941 | 34-1818596 |
|---|---|---|
| (State or other jurisdiction | (Commission | (IRS Employer |
| of incorporation) | File Number) | Identification No.) |
| 108 Cherry Hill Drive, Beverly, Massachusetts | 01915 | |
| --- | --- | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code:
(978) 787-4000
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):
| ¨ | Written<br>communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ¨ | Soliciting<br>material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ¨ | Pre-commencement<br>communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ¨ | Pre-commencement<br>communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Securities registered pursuant to Section 12(b) of the Act:
| Title<br> of each class | Trading<br> Symbol(s) | Name<br> of each exchange on which registered |
|---|---|---|
| Common Stock, par value $0.001 per share | ACLS | NASDAQ Global Select Market |
Item 2.02 Results of Operations and Financial Condition
On November 6, 2024, Axcelis Technologies, Inc. (the “Company”) issued a press release regarding its financial results for its quarter ended September 30, 2024. The Company’s press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference herein.
Item 7.01 Regulation FD Disclosure.
During the preparation of the Company’s financial statements for the quarter ended September 30, 2024, the Company’s internal financial team identified an error in the calculation of backlog in prior periods, beginning in 2019 through the second quarter of 2024, as reported in previously filed Form 10-Ks and as discussed from time to time in quarterly earnings calls. Attached as Exhibit 99.2 to this Current Report on Form 8-K and incorporated by reference herein is a chart showing the backlog amounts reported in the Company’s Form 10-Ks for the years ended 2019, 2020, 2021, 2022 and 2023, and as provided for the first two quarters of 2024, as originally reported and as corrected.
Item 9.01 Financial Statements and Exhibits.
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release dated November 6, 2024. Filed herewith |
| 99.2 | Historical Backlog Correction dated November 6, 2024. Filed herewith |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: November 6, 2024 | Axcelis Technologies, Inc. | |
|---|---|---|
| By: | /s/ James Coogan | |
| James Coogan | ||
| Executive Vice President | ||
| and Chief Financial Officer |
3
Exhibit 99.1
| NEWS RELEASE |
|---|
Axcelis AnnouncesFinancial Results for Third Quarter 2024
| · | Revenue of $256.6 million |
|---|---|
| · | Operating margin of 18.3% |
| · | Diluted earnings per share of $1.49 |
BEVERLY, Mass. — Nov. 6, 2024—Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the third quarter ended September 30, 2024. The Company reported third quarter revenue of $256.6 million, compared to $256.5 million for the second quarter of 2024. Gross margin for the quarter was 42.9%, compared to 43.8% in the second quarter. Operating profit for the quarter was $46.9 million, compared to $52.8 million for the second quarter. Net income for the quarter was $48.6 million, or $1.49 per diluted share, compared to $50.9 million, or $1.55 per diluted share in the second quarter.
President and CEO Russell Low commented, "Axcelis executed well in the third quarter with results relatively in-line with our expectations. While we anticipate a near term digestion of mature node capacity through the first half of 2025, customer engagement is strong and our long-term growth opportunity remains squarely intact highlighted by attractive secular growth in silicon carbide, a cyclical recovery in our memory and general mature markets, market share gains in advanced logic and regional penetration of the Japan market.”
Executive Vice President and Chief Financial Officer Jamie Coogan said, “We are pleased with the financial performance delivered by our team thus far in 2024. Our cash generation remains strong, we are engaging with customers across a number of key growth opportunities, and we are investing in our product roadmaps while maintaining discipline in our overall cost structure. All of this, when coupled with our strong balance sheet, put us in position to capture the growth opportunities that lie ahead and drive long-term value creation for shareholders.”
BusinessOutlook
For the fourth quarter ending December 31, 2024, Axcelis expects revenues of approximately $245 million, and earnings per diluted share of approximately $1.25.
Correctionof Historical Backlog
During the preparation of the Company’s third quarter financial statements, the Axcelis internal financial team identified an error in the calculation of backlog, beginning in 2019 through the second quarter of 2024. For example, corrected backlog as of June 30, 2024 was $879 million, compared to previously reported backlog of $994 million. Backlog as of September 30, 2024 was $758 million.
| NEWS RELEASE |
|---|
The corrected historical figures for 2019 through the second quarter of 2024 have been posted to the Investor section of the Axcelis website at investor.axcelis.com.
Third Quarter 2024 Conference Call
The Company will host a call to discuss the results for the third quarter 2024 on Thursday, Nov. 7, 2024, at 8:30 a.m. ET. The call will be available via webcast that can be accessed through the Investors page of Axcelis' website at www.axcelis.com, or by registering as a Participant here: https://register.vevent.com/register/BI64036dd04ee74de4bea3e1ba939fae67
Webcast replays will be available for 30 days following the call.
SafeHarbor Statement
This press release and the conference call contain forward-looking statements under the Private Securities Litigation Reform Act safe harbor provisions. These statements, which include our expectations for spending in our industry and guidance for future financial performance, are based on management’s current expectations and should be viewed with caution. They are subject to various risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are outside the control of the Company, including that customer decisions to place orders or our product shipments may not occur when we expect, that orders may not be converted to revenue in any particular quarter, or at all, whether demand will continue for the semiconductor equipment we produce or, if not, whether we can successfully meet changing market requirements, and whether we will be able to maintain continuity of business relationships with and purchases by major customers. Increased competitive pressure on sales and pricing, increases in material and other production costs that cannot be recouped in product pricing and instability caused by changing global economic, political or financial conditions could also cause actual results to differ materially from those in our forward-looking statements. These risks and other risk factors relating to Axcelis are described more fully in the most recent Form 10-K filed by Axcelis and in other documents filed from time to time with the Securities and Exchange Commission.
About Axcelis:
Axcelis (Nasdaq: ACLS), headquartered in Beverly, Mass., has been providing innovative, high-productivity solutions for the semiconductor industry for over 45 years. Axcelis is dedicated to developing enabling process applications through the design, manufacture and complete life cycle support of ion implantation systems, one of the most critical and enabling steps in the IC manufacturing process. Learn more about Axcelis at www.axcelis.com.
| NEWS RELEASE |
|---|
CONTACTS:
Investor Relations Contact:
David Ryzhik
Senior Vice President, Investor Relations and Corporate Strategy
Telephone: (978) 787-2352
Email: David.Ryzhik@axcelis.com
Press/MediaRelations Contact:
Maureen Hart
Senior Director, Corporate & Marketing Communications
Telephone: (978) 787-4266
Email: Maureen.Hart@axcelis.com
| NEWS RELEASE |
|---|
Axcelis Technologies, Inc.
ConsolidatedStatements of Operations
(In thousands,except per share amounts)
(Unaudited)
| Three months ended | Nine months ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | September 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenue: | ||||||||||||
| Product | $ | 246,826 | $ | 283,367 | $ | 735,626 | $ | 795,047 | ||||
| Services | 9,738 | 8,959 | 29,822 | 25,269 | ||||||||
| Total revenue | 256,564 | 292,326 | 765,448 | 820,316 | ||||||||
| Cost of revenue: | ||||||||||||
| Product | 136,379 | 154,798 | 399,049 | 444,311 | ||||||||
| Services | 10,215 | 7,844 | 27,968 | 22,600 | ||||||||
| Total cost of revenue | 146,594 | 162,642 | 427,017 | 466,911 | ||||||||
| Gross profit | 109,970 | 129,684 | 338,431 | 353,405 | ||||||||
| Operating expenses: | ||||||||||||
| Research and development | 26,395 | 24,093 | 77,843 | 71,996 | ||||||||
| Sales and marketing | 16,808 | 16,465 | 51,483 | 46,146 | ||||||||
| General and administrative | 19,854 | 17,446 | 52,842 | 48,519 | ||||||||
| Total operating expenses | 63,057 | 58,004 | 182,168 | 166,661 | ||||||||
| Income from operations | 46,913 | 71,680 | 156,263 | 186,744 | ||||||||
| Other income (expense): | ||||||||||||
| Interest income | 6,560 | 4,580 | 18,126 | 12,824 | ||||||||
| Interest expense | (1,333 | ) | (1,325 | ) | (4,017 | ) | (4,027 | ) | ||||
| Other, net | 3,225 | (1,260 | ) | 1,257 | (4,348 | ) | ||||||
| Total other income | 8,452 | 1,995 | 15,366 | 4,449 | ||||||||
| Income before income taxes | 55,365 | 73,675 | 171,629 | 191,193 | ||||||||
| Income tax provision | 6,789 | 7,744 | 20,593 | 15,986 | ||||||||
| Net income | $ | 48,576 | $ | 65,931 | $ | 151,036 | $ | 175,207 | ||||
| Net income per share: | ||||||||||||
| Basic | $ | 1.49 | $ | 2.01 | $ | 4.63 | $ | 5.35 | ||||
| Diluted | $ | 1.49 | $ | 1.99 | $ | 4.61 | $ | 5.28 | ||||
| Shares used in computing net income per share: | ||||||||||||
| Basic weighted average shares of common stock | 32,550 | 32,807 | 32,595 | 32,775 | ||||||||
| Diluted weighted average shares of common stock | 32,675 | 33,159 | 32,780 | 33,208 | ||||||||
| NEWS RELEASE | ||||||||||||
| --- |
Axcelis Technologies, Inc.
ConsolidatedBalance Sheets
(In thousands,except per share amounts)
(Unaudited)
| December 31, | |||||
|---|---|---|---|---|---|
| 2023 | |||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | 120,066 | $ | 167,297 | ||
| Short-term investments | 459,341 | 338,851 | |||
| Accounts receivable, net | 183,543 | 217,964 | |||
| Inventories, net | 290,954 | 306,482 | |||
| Prepaid income taxes | 10,748 | — | |||
| Prepaid expenses and other current assets | 57,441 | 49,397 | |||
| Total current assets | 1,122,093 | 1,079,991 | |||
| Property, plant and equipment, net | 54,454 | 53,971 | |||
| Operating lease assets | 30,391 | 30,716 | |||
| Finance lease assets, net | 15,668 | 16,632 | |||
| Long-term restricted cash | 6,653 | 6,654 | |||
| Deferred income taxes | 58,938 | 53,428 | |||
| Other assets | 49,928 | 40,575 | |||
| Total assets | 1,338,125 | $ | 1,281,967 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | 54,047 | $ | 54,400 | ||
| Accrued compensation | 23,070 | 31,445 | |||
| Warranty | 14,547 | 14,098 | |||
| Income taxes | — | 6,164 | |||
| Deferred revenue | 138,682 | 164,677 | |||
| Current portion of finance lease obligation | 1,399 | 1,511 | |||
| Other current liabilities | 20,519 | 12,834 | |||
| Total current liabilities | 252,264 | 285,129 | |||
| Long-term finance lease obligation | 42,671 | 43,674 | |||
| Long-term deferred revenue | 25,344 | 46,208 | |||
| Other long-term liabilities | 42,252 | 42,074 | |||
| Total liabilities | 362,531 | 417,085 | |||
| Stockholders’ equity: | |||||
| Common stock, 0.001 par value, 75,000 shares authorized; 32,504 shares issued and outstanding at September 30, 2024; 32,685 shares issued and outstanding at December 31, 2023 | 33 | 33 | |||
| Additional paid-in capital | 545,350 | 547,189 | |||
| Retained earnings | 432,429 | 319,506 | |||
| Accumulated other comprehensive loss | (2,218 | ) | (1,846 | ) | |
| Total stockholders’ equity | 975,594 | 864,882 | |||
| Total liabilities and stockholders’ equity | 1,338,125 | $ | 1,281,967 |
All values are in US Dollars.
Exhibit 99.2
HISTORICAL BACKLOG CORRECTION NOVEMBER 6, 2024
2 CORRECTED HISTORICAL BACKLOG (2019 - Q2 2024) June 30, March 31, As of December 31, 2024 2024 2023 2022 2021 2020 2019 (in millions) $879 $973 $1,061 $1,020 $415 $111 $84 Corrected Backlog $994 $1,121 $1,212 $1,125 $461 $116 $99 Previously Reported Backlog $(115) $(149) $(151) $(105) $(46) $(5) $(15) Variance