Axcelis Announces Financial Results for First Quarter 2025

By PR Newswire | May 06, 2025, 7:00 AM

Q1 Highlights:

  • Revenue of $192.6 million
  • GAAP Gross Margin of 46.1%, and Non-GAAP Gross Margin of 46.4%
  • GAAP Operating Margin of 15.1% and Non-GAAP Operating Margin of 18.3%
  • GAAP Diluted earnings per share of $0.88, and Non-GAAP Diluted earnings per share of $1.04

BEVERLY, Mass., May 6, 2025 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the first quarter ended March 31, 2025.

President and CEO Russell Low commented, "We executed well in the first quarter, delivering strong profitability despite a moderation in customer investments and a more uncertain broader economic backdrop. Axcelis is well positioned to navigate a dynamic macroeconomic and global trade environment with an agile global manufacturing and supply chain footprint that we have optimized over the past few years. This provides a solid platform for us to meet our customers' needs while continuing to invest in innovation to capture the long-term growth opportunities that lie ahead."

Executive Vice President and Chief Financial Officer Jamie Coogan said, "We delivered strong margins and cash flow in the first quarter, reflecting solid execution and the resilience of our operating model. We exited the quarter with a robust cash position and no debt, and are repurchasing shares in an opportunistic but disciplined manner, while continuing to invest in our business."

Results Summary

(In thousands, except per share amounts and percentages)







Three months ended March 31,





2025





2024

  Revenue

$

192,563



$

252,372

  Gross margin



46.1 %





46.0 %

  Operating margin



15.1 %





22.4 %

  Net income

$

28,579



$

51,595

  Diluted earnings per share

$

0.88



$

1.57



Non-GAAP Results 

  Non-GAAP gross margin



46.4 %





46.1 %

  Non-GAAP operating margin



18.3 %





24.1 %

  Adjusted EBITDA

$

39,520



$

64,545

  Non-GAAP net income

$

33,784



$

55,234

  Non-GAAP diluted earnings per share

$

1.04



$

1.68













Business Outlook

For the second quarter ending June 30, 2025, Axcelis expects revenues of approximately $185 million. GAAP earnings per diluted share of approximately $0.57, and non-GAAP earnings per share of approximately $0.73.

Please refer to Second Quarter Outlook under the "Notes on our Non-GAAP Financial Information" section of this document for detail relating to the computation of non-GAAP earnings per diluted share as well as the Safe Harbor Statement section of this document.

First Quarter 2025 Conference Call

The Company will host a call today to discuss the results 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-conf.media-server.com/register/BI454c6816ae884406ade486cc1372dc9f 

Webcast replays will be available for 30 days following the call.

Use of Non-GAAP Financial Results

This press release includes financial measures that are not presented in accordance with U.S. generally accepted accounting principles ("Non-GAAP financial measures"). These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP income tax provision, Adjusted EBITDA, non-GAAP net income, and non-GAAP diluted earnings per share, and reflect adjustments for the impact of share-based compensation expense and certain items related to restructuring and severance charges and any associated adjustments.

Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this release.

For further information regarding these non-GAAP financial measures, please refer to the tables presenting reconciliations of our non-GAAP results to our GAAP results and the "Notes on Our Non-GAAP Financial Information" at the end of this press release.

Safe Harbor Statement

This press release contains, and the conference call will 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, including with respect to the imposition of tariffs on our products or components of our products, 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: [email protected]

Press/Media Relations Contact:

Maureen Hart

Senior Director, Corporate & Marketing Communications

Telephone: (978) 787-4266

Email: [email protected]

Axcelis Technologies, Inc.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)





Three months ended March 31,



2025



2024

Revenue:











Product

$

182,824



$

243,418

Services



9,739





8,954

Total revenue



192,563





252,372

Cost of revenue:











Product



94,500





127,912

Services



9,295





8,409

Total cost of revenue



103,795





136,321

Gross profit



88,768





116,051

Operating expenses:











Research and development



27,128





25,662

Sales and marketing



15,124





17,445

General and administrative



17,357





16,405

Total operating expenses



59,609





59,512

Income from operations



29,159





56,539

Other income (expense):











Interest income



5,601





5,516

Interest expense



(1,367)





(1,346)

Other, net



(309)





(1,710)

Total other income



3,925





2,460

Income before income taxes



33,084





58,999

Income tax provision



4,505





7,404

Net income

$

28,579



$

51,595

Net income per share:











Basic

$

0.89



$

1.58

Diluted

$

0.88



$

1.57

Shares used in computing net income per share:











Basic weighted average shares of common stock



32,258





32,638

Diluted weighted average shares of common stock



32,335





32,926

 

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)





















March 31,



December 31,





2025



2024

ASSETS

Current assets:













Cash and cash equivalents



$

183,957



$

123,512

Short-term investments





403,102





447,831

Accounts receivable, net





164,949





203,149

Inventories, net





295,850





282,225

Prepaid income taxes





6,615





6,420

Prepaid expenses and other current assets





59,463





60,471

Total current assets





1,113,936





1,123,608

Property, plant and equipment, net





57,034





53,784

Operating lease assets





28,767





29,621

Finance lease assets, net





15,025





15,346

Long-term restricted cash





7,553





7,552

Deferred income taxes





69,334





68,277

Other assets





48,969





50,593

Total assets



$

1,340,618



$

1,348,781

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:













Accounts payable



$

38,985



$

46,928

Accrued compensation





14,796





25,536

Warranty





11,882





13,022

Deferred revenue





110,456





94,673

Current portion of finance lease obligation





1,370





1,345

Other current liabilities





22,881





26,018

Total current liabilities





200,370





207,522

Long-term finance lease obligation





41,958





42,329

Long-term deferred revenue





28,868





43,501

Other long-term liabilities





42,184





42,639

Total liabilities





313,380





335,991















Stockholders' equity:













Common stock, $0.001 par value, 75,000 shares authorized; 32,129 shares issued and outstanding at March 31, 2025; 32,365 shares issued and outstanding at December 31, 2024





32





32

Additional paid-in capital





547,020





548,654

Retained earnings





485,673





470,318

Accumulated other comprehensive loss





(5,487)





(6,214)

Total stockholders' equity





1,027,238





1,012,790

Total liabilities and stockholders' equity



$

1,340,618



$

1,348,781















 

Axcelis Technologies, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)





















Three months ended March 31,





2025





2024

Cash flows from operating activities











Net income

$

28,579



$

51,595

Adjustments to reconcile net income to net cash provided by operating activities:











Depreciation and amortization



4,309





3,775

Stock-based compensation expense



4,903





4,690

Other



(1,682)





3,143

Change in operating assets and liabilities, net



3,686





(20,980)

Net cash provided by operating activities



39,795





42,223













Cash flows from investing activities











Expenditures for property, plant and equipment and capitalized software



(4,960)





(1,620)

Other changes in investing activities, net



45,429





(54,071)

Net cash provided by (used in) investing activities



40,469





(55,691)













Cash flows from financing activities











Repurchase of common stock



(18,178)





(14,999)

Other changes from financing activities, net



(1,932)





(3,056)

Net cash used in financing activities



(20,110)





(18,055)













Effect of exchange rate changes on cash and cash equivalents



292





(1,813)

Net increase (decrease) in cash, cash equivalents and restricted cash



60,446





(33,336)













Cash, cash equivalents and restricted cash at beginning of period



131,064





173,951

Cash, cash equivalents and restricted cash at end of period

$

191,510



$

140,615



























Notes on Our Non-GAAP Financial Information

Management uses non-GAAP gross profit, gross margin, operating income, operating margin, income tax provision, net income, diluted earnings per share, and Adjusted EBITDA to evaluate the Company's operating and financial performance and for planning purposes. Axcelis believes these measures enhance an overall understanding of its performance and investors' ability to review the Company's business from the same perspective as the Company's management. 

There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies, and may exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP.

Totals presented may not sum and percentages may not recalculate using figures presented due to rounding.

Axcelis Technologies, Inc. 

Schedule Reconciling Selected Non-GAAP Financial Measures

(In thousands, except per share amounts and percentages)





Three months ended March 31,





2025





2024

GAAP gross profit

$

88,768



$

116,051

Restructuring1



226





Stock-based compensation



353





290

Non-GAAP gross profit

$

89,347



$

116,341

Non-GAAP gross margin



46.4 %





46.1 %













Operating expenses

$

59,609



$

59,512

Bad debt expense







459

Restructuring



(923)





Stock-based compensation



(4,550)





(4,400)

Non-GAAP operating expenses

$

54,136



$

55,571













GAAP operating income

$

29,159



$

56,539

Bad debt expense







(459)

Restructuring1



1,149





Stock-based compensation



4,903





4,690

Non-GAAP operating income

$

35,211



$

60,770

Non-GAAP operating margin



18.3 %





24.1 %













GAAP income tax provision

$

4,505



$

7,404

Income tax effect of non-GAAP adjustments2



847





592

Non-GAAP income tax provision

$

5,352



$

7,996













GAAP net income

$

28,579



$

51,595

Bad debt expense







(459)

Restructuring1



1,149





Stock-based compensation



4,903





4,690

Income tax effect of non-GAAP adjustments2



(847)





(592)

Non-GAAP net income

$

33,784



$

55,234













GAAP diluted EPS

$

0.88



$

1.57

Bad debt expense







(0.01)

Restructuring1



0.04





Stock-based compensation



0.15





0.14

Income tax effect of non-GAAP adjustments2



(0.03)





(0.02)

Non-GAAP diluted EPS

$

1.04



$

1.68



Note 1: Restructuring and other costs primarily related to early retirement programs and severance costs, due to global cost-saving initiatives.

Note 2: Impact of taxes from non-GAAP adjustments, uses adjusted tax rate of 14%.

 

Axcelis Technologies, Inc. 

Reconciliation of Net Income to Adjusted EBITDA

(In thousands, except percentages)



Three months ended March 31,





2025





2024

Net income

$

28,579



$

51,595

Other (income)/expense



(3,925)





(2,460)

Income tax provision



4,505





7,404

Depreciation & amortization



4,309





3,775

Subtotal



33,468





60,314

Bad debt expense







(459)

Restructuring1



1,149





Stock-based compensation



4,903





4,690

Adjusted EBITDA

$

39,520



$

64,545

Adjusted EBITDA margin



20.5 %





25.6 %



Note 1: Restructuring and other costs primarily related to early retirement programs and severance costs, due to global cost-saving initiatives.

 

Axcelis Technologies, Inc. 

Second Quarter Outlook

GAAP to Non-GAAP Diluted Earnings Per Share





Three months ended

June 30, 2025

GAAP diluted EPS

$

0.57

Stock-based compensation



0.18

Income tax effect of non-GAAP adjustments1



(0.03)

Non-GAAP diluted EPS

$

0.73



Note 1: Impact of taxes from non-GAAP adjustments, uses adjusted tax rate of 14%.

Figures may not sum due to rounding.

 

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SOURCE Axcelis Technologies, Inc.

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