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): February 10, 2025
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 February 10, 2025, Axcelis Technologies, Inc. (the “Company”) issued a press release regarding its financial results for its quarter and year ended December 31, 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 9.01 Financial Statements and Exhibits.
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release dated February 10, 2025. 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: February 10, 2025 | Axcelis Technologies, Inc. | |
|---|---|---|
| By: | /s/ James Coogan | |
| James Coogan | ||
| Executive Vice President | ||
| and Chief Financial Officer |
3
Exhibit 99.1
Axcelis AnnouncesFinancial Results for Fourth Quarter and Full Year 2024
Q4 Highlights:
| · | Revenue of $252.4 million |
|---|---|
| · | Operating Margin of 21.6% |
| · | Diluted earnings per share of $1.54 |
BEVERLY, Mass.— Feb. 10, 2025—Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the fourth quarter and full year ended December 31, 2024.
For the full year 2024, the Company reported revenue of $1.02 billion, compared with $1.13 billion for the full year 2023. Systems revenue for the year was $782.6 million, compared to $883.6 million in 2023. Operating profit was $210.8 million in 2024, compared to $265.8 million in 2023. Net income for the year was $201 million with diluted earnings per share of $6.15, compared to net income of $246.3 million and diluted earnings per share of $7.43 in 2023. Gross margin for the year was 44.7%, compared to 43.5% in 2023.
The Company reported fourth quarter revenue of $252.4 million, compared to $256.6 million for the third quarter of 2024. Gross margin for the quarter was 46.0%, compared to 42.9% in the third quarter. Operating profit for the quarter was $54.5 million, compared to $46.9 million for the third quarter. Net income for the quarter was $50 million, or $1.54 per diluted share, compared to $48.6 million, or $1.49 per diluted share in the third quarter.
President and CEO Russell Low commented, “Axcelis exited the year on a strong note, with fourth quarter revenue and profitability exceeding our expectations. As we look ahead to 2025, we anticipate a near term cyclical digestion period, as customers absorb the robust investments they’ve made into mature node capacity over the past few years – particularly in China. We are focused on capturing the long-term growth opportunities that lie ahead by investing in product innovation, managing our costs, and working closely with customers on their technology roadmaps – all of which will put us in an even stronger position for the next upturn.”
Executive Vice President and Chief Financial Officer Jamie Coogan said, “We are pleased with our financial execution in 2024. Despite a decline in revenue, we were able to deliver higher gross margins, generate solid free cash flow, return capital to shareholders via buyback, and exit the year with a stronger balance sheet that allows us to invest during this cyclical digestion period and drive long term value creation.”
BusinessOutlook
For the first quarter ending March 31, 2025, Axcelis expects revenues of approximately $185 million, and earnings per diluted share of approximately $0.38.
Fourth Quarter and Full Year 2024Conference Call
The Company will host a call to discuss the results for the fourth quarter and full year 2024 on Tuesday, February 11, 2025, 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/BIb4b94bbc1cf744869eeb20b9a9be88a7
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.
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
Axcelis Technologies, Inc.
ConsolidatedStatements of Operations
(In thousands,except per share amounts)
(Unaudited)
| Three months ended | Twelve months ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Revenue: | ||||||||||||
| Product | $ | 241,254 | $ | 300,603 | $ | 976,881 | $ | 1,095,650 | ||||
| Services | 11,163 | 9,685 | 40,984 | 34,954 | ||||||||
| Total revenue | 252,417 | 310,288 | 1,017,865 | 1,130,604 | ||||||||
| Cost of revenue: | ||||||||||||
| Product | 125,402 | 163,801 | 524,451 | 608,112 | ||||||||
| Services | 10,792 | 8,591 | 38,760 | 31,191 | ||||||||
| Total cost of revenue | 136,194 | 172,392 | 563,211 | 639,303 | ||||||||
| Gross profit | 116,223 | 137,896 | 454,654 | 491,301 | ||||||||
| Operating expenses: | ||||||||||||
| Research and development | 27,654 | 24,911 | 105,497 | 96, 907 | ||||||||
| Sales and marketing | 16,563 | 16,659 | 68,046 | 62,805 | ||||||||
| General and administrative | 17,475 | 17,275 | 70,317 | 65,794 | ||||||||
| Total operating expenses | 61,692 | 58,845 | 243,860 | 225,506 | ||||||||
| Income from operations | 54,531 | 79,051 | 210,794 | 265,795 | ||||||||
| Other income (expense): | ||||||||||||
| Interest income | 6,277 | 5,375 | 24,403 | 18,199 | ||||||||
| Interest expense | (1,444 | ) | (1,320 | ) | (5,462 | ) | (5,347 | ) | ||||
| Other, net | (719 | ) | 4,300 | 539 | (48 | ) | ||||||
| Total other income | 4,114 | 8,355 | 19,480 | 12,804 | ||||||||
| Income before income taxes | 58,645 | 87,406 | 230,274 | 278,599 | ||||||||
| Income tax provision | 8,689 | 16,350 | 29,282 | 32,336 | ||||||||
| Net income | $ | 49,956 | $ | 71,056 | $ | 200,992 | $ | 246,263 | ||||
| Net income per share: | ||||||||||||
| Basic | $ | 1.54 | $ | 2.17 | $ | 6.17 | $ | 7.52 | ||||
| Diluted | $ | 1.54 | $ | 2.15 | $ | 6.15 | $ | 7.43 | ||||
| Shares used in computing net income per share: | ||||||||||||
| Basic weighted average shares of common stock | 32,424 | 32,708 | 32,552 | 32,758 | ||||||||
| Diluted weighted average shares of common stock | 32,514 | 33,031 | 32,704 | 33,165 |
Axcelis Technologies, Inc.
ConsolidatedBalance Sheets
(In thousands,except per share amounts)
(Unaudited)
| December 31, | |||||
|---|---|---|---|---|---|
| 2023 | |||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | 123,512 | $ | 167,297 | ||
| Short-term investments | 447,831 | 338,851 | |||
| Accounts receivable, net | 203,149 | 217,964 | |||
| Inventories, net | 282,225 | 306,482 | |||
| Prepaid income taxes | 6,420 | — | |||
| Prepaid expenses and other current assets | 60,471 | 49,397 | |||
| Total current assets | 1,123,608 | 1,079,991 | |||
| Property, plant and equipment, net | 53,784 | 53,971 | |||
| Operating lease assets | 29,621 | 30,716 | |||
| Finance lease assets, net | 15,346 | 16,632 | |||
| Long-term restricted cash | 7,552 | 6,654 | |||
| Deferred income taxes | 68,277 | 53,428 | |||
| Other assets | 50,593 | 40,575 | |||
| Total assets | 1,348,781 | $ | 1,281,967 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | 46,928 | $ | 54,400 | ||
| Accrued compensation | 25,536 | 31,445 | |||
| Warranty | 13,022 | 14,098 | |||
| Income taxes | — | 6,164 | |||
| Deferred revenue | 94,673 | 164,677 | |||
| Current portion of finance lease obligation | 1,345 | 1,511 | |||
| Other current liabilities | 26,018 | 12,834 | |||
| Total current liabilities | 207,522 | 285,129 | |||
| Long-term finance lease obligation | 42,329 | 43,674 | |||
| Long-term deferred revenue | 43,501 | 46,208 | |||
| Other long-term liabilities | 42,639 | 42,074 | |||
| Total liabilities | 335,991 | 417,085 | |||
| Stockholders’ equity: | |||||
| Common stock, 0.001 par value, 75,000 shares authorized; 32,365 shares issued and outstanding at December 31, 2024; 32,685 shares issued and outstanding at December 31, 2023 | 32 | 33 | |||
| Additional paid-in capital | 548,654 | 547,189 | |||
| Retained earnings | 470,318 | 319,506 | |||
| Accumulated other comprehensive loss | (6,214 | ) | (1,846 | ) | |
| Total stockholders’ equity | 1,012,790 | 864,882 | |||
| Total liabilities and stockholders’ equity | 1,348,781 | $ | 1,281,967 |
All values are in US Dollars.
Axcelis Technologies, Inc.
Condensed ConsolidatedStatements of Cash Flows
(In thousands)
(Unaudited)
| Three months ended | Twelve months ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Cash flows from operating activities | ||||||||||||
| Net income | $ | 49,956 | $ | 71,056 | $ | 200,992 | $ | 246,263 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
| Depreciation and amortization | 4,267 | 3,581 | 15,809 | 13,069 | ||||||||
| Stock-based compensation expense | 5,380 | 5,239 | 20,951 | 18,269 | ||||||||
| Other | (442 | ) | (14,565 | ) | (11,532 | ) | (23,503 | ) | ||||
| Change in operating assets and liabilities, net | (46,381 | ) | 264 | (85,402 | ) | (97,229 | ) | |||||
| Net cash provided by operating activities | 12,780 | 65,575 | 140,818 | 156,869 | ||||||||
| Cash flows from investing activities | ||||||||||||
| Expenditures for property, plant and equipment and capitalized software | (4,658 | ) | (10,153 | ) | (12,181 | ) | (20,656 | ) | ||||
| Other changes in investing activities, net | 13,779 | (16,526 | ) | (96,545 | ) | (80,202 | ) | |||||
| Net cash provided by (used in)<br> investing activities | 9,121 | (26,679 | ) | (108,726 | ) | (100,858 | ) | |||||
| Cash flows from financing activities | ||||||||||||
| Repurchase of common stock | (15,131 | ) | (15,001 | ) | (60,489 | ) | (52,499 | ) | ||||
| Other changes from financing activities, net | 588 | (22 | ) | (10,703 | ) | (15,769 | ) | |||||
| Net cash used in financing activities | (14,543 | ) | (15,023 | ) | (71,192 | ) | (68,268 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (3,013 | ) | 1,128 | (3,787 | ) | (139 | ) | |||||
| Net increase<br> (decrease) in cash, cash equivalents and restricted cash | 4,345 | 25,001 | (42,887 | ) | (12,396 | ) | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 131,064 | $ | 173,951 | $ | 131,064 | $ | 173,951 |