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Axcelis Technologies, Inc. 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.”
For the first quarter ending March 31, 2025, Axcelis expects revenues of approximately $185 million, and earnings per diluted share of approximately $0.38.
Original – Axcelis Technologies
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onsemi announced its fourth quarter and fiscal year 2024 results with the following highlights:
- Fourth quarter revenue of $1,722.5 million
- Fourth quarter GAAP gross margin and non-GAAP gross margin of 45.2% and 45.3%, respectively
- Fourth quarter GAAP operating margin and non-GAAP operating margin of 23.7% and 26.7%, respectively
- Fourth quarter GAAP diluted earnings per share of $0.88 and non-GAAP diluted earnings per share of $0.95, respectively
- Full year 2024 free cash flow of $1.2 billion, a 3X increase year-over-year
“As we continue to navigate this market downturn, our actions over the last four years have proven we are a structurally different company that is well-equipped to navigate prolonged volatility,” said Hassane El-Khoury, president and CEO, onsemi. “While 2025 remains uncertain, we remain committed to our long-term strategy. We will maintain our financial discipline, streamline our operations and continue to deliver high-value, differentiated intelligent power and sensing solutions that position onsemi to emerge even stronger.”
Original – onsemi
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Power Integrations announced financial results for the quarter and year ended December 31, 2024. Net revenues for the fourth quarter were $105.2 million, down nine percent from the prior quarter and up 18 percent from the fourth quarter of 2023. GAAP net income for the fourth quarter was $9.1 million or $0.16 per diluted share compared to $0.25 per diluted share in the prior quarter and $0.25 per diluted share in the fourth quarter of 2023. Cash flow from operations for the fourth quarter was $14.7 million.
In addition to its GAAP results, the company provided non-GAAP measures that exclude stock-based compensation, amortization of acquisition-related intangible assets and the related tax effects. Non-GAAP net income for the fourth quarter of 2024 was $17.2 million or $0.30 per diluted share compared to $0.40 per diluted share in the prior quarter and $0.22 per diluted share in the fourth quarter of 2023. A reconciliation of GAAP to non-GAAP financial results is included with the tables accompanying this press release.
For the full year, net revenues were $419.0 million, compared to $444.5 million in the prior year. Full-year GAAP net income was $32.2 million or $0.56 per diluted share, compared to $0.97 per diluted share in the prior year. Non-GAAP net income was $1.16 per diluted share, compared to $1.29 per diluted share in the prior year. Cash flow from operations for the full year was $81.2 million.
Commented Balu Balakrishnan, chairman and CEO of Power Integrations: “Fourth-quarter revenues were up 18 percent year-over-year, and we expect another double-digit increase in the first quarter. While the demand outlook is cloudy, especially in light of uncertainty around trade policy, we expect growth in a variety of end-markets in 2025, including renewable energy, high-voltage DC transmission, metering, automotive, appliances and more. Products featuring our proprietary PowiGaN™ technology should contribute significant growth this year as adoption accelerates across a broad set of high-voltage power-conversion applications.”
Additional Highlights
- Power Integrations paid a dividend of $0.21 per share on December 31, 2024. A dividend of $0.21 per share will be paid on March 31, 2025, to stockholders of record as of February 28, 2025.
- The company utilized $1.9 million for share repurchases during the fourth quarter, leaving $48.1 million remaining on its repurchase authorization as of December 31.
Financial Outlook
The company issued the following forecast for the first quarter of 2025:
- Revenues are expected to be flat compared to the fourth quarter of 2024, plus or minus five percent.
- GAAP gross margin is expected to be between 55 percent and 55.5 percent, and non-GAAP gross margin is expected to be between 55.5 percent and 56 percent. The difference between GAAP and non-GAAP is primarily attributable to stock-based compensation, with a smaller impact from amortization of acquisition-related intangible assets.
- GAAP operating expenses are expected to be approximately $54 million; non-GAAP operating expenses are expected to be approximately $45 million. Non-GAAP operating expenses are expected to exclude approximately $9 million of stock-based compensation.
Original – Power Integrations
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Microchip Technology Incorporated reported results for the three months ended December 31, 2024.
- Net sales of $1.026 billion, down 11.8% sequentially and down 41.9% from the year ago quarter. Our updated guidance provided on December 2, 2024 was net sales of $1.025 billion.
- On a GAAP basis: gross profit of 54.7%; operating income of $30.9 million and 3.0% of net sales; net loss of $53.6 million; and loss of $0.10 per diluted share. Guidance provided on November 5, 2024 was for GAAP earnings (loss) per share of $(0.04) to $0.03 per diluted share.
- On a Non-GAAP basis: gross profit of 55.4%; operating income of $210.7 million and 20.5% of net sales; net income of $107.3 million; and EPS of $0.20 per diluted share. Updated guidance provided on December 2, 2024 was for Non-GAAP EPS of $0.25 per diluted share.
- Returned approximately $244.6 million to stockholders in the December quarter through dividends.
- Quarterly dividend declared for the March quarter of 45.5 cents per share, an increase of 1.1% from the year ago quarter.
Net sales for the third quarter of fiscal 2025 were $1.026 billion, down 41.9% from net sales of $1.766 billion in the prior year’s third fiscal quarter.
GAAP net loss for the third quarter of fiscal 2025 was $53.6 million, or $0.10 per diluted share, down from GAAP net income of $419.2 million, or $0.77 per diluted share, in the prior year’s third fiscal quarter. For the third quarters of fiscal 2025 and fiscal 2024, GAAP results were adversely impacted by amortization of acquired intangible assets associated with previous acquisitions.
Non-GAAP net income for the third quarter of fiscal 2025 was $107.3 million, or $0.20 per diluted share, down from non-GAAP net income of $592.7 million, or $1.08 per diluted share, in the prior year’s third fiscal quarter. For the third quarters of fiscal 2025 and fiscal 2024, non-GAAP results exclude the effect of share-based compensation, expenses related to our acquisition activities (including intangible asset amortization, severance, and other restructuring costs, and legal and other general and administrative expenses associated with acquisitions including legal fees and expenses for litigation and investigations related to Microsemi acquisition), professional services associated with certain legal matters, and losses on the settlement of debt.
For the third quarters of fiscal 2025 and fiscal 2024, our non-GAAP income tax expense is presented based on projected cash taxes for the applicable fiscal year, excluding transition tax payments under the Tax Cuts and Jobs Act. A reconciliation of our non-GAAP and GAAP results is included in this press release.
Microchip announced that its Board of Directors declared a quarterly cash dividend on its common stock of 45.5 cents per share, up 1.1% from the year ago quarter. The quarterly dividend is payable on March 7, 2025 to stockholders of record on February 24, 2025.
“Our December quarter performance reflects the need for the decisive steps we are taking to realign our business, as revenue declined to $1.026 billion and inventory levels reached 266 days,” said Steve Sanghi, Microchip’s CEO and President. “Since returning as CEO in November, we have already initiated several key actions, including restructuring our manufacturing footprint, adjusting our channel strategy and intensifying our customer engagement. Our initial assessment indicates clear areas for operational enhancement, and we are taking a methodical yet urgent approach to evaluating all aspects of our business and implementing necessary changes to strengthen our competitive position.”
Eric Bjornholt, Microchip’s Chief Financial Officer, said, “We are executing on multiple operational initiatives to enhance our financial performance. Our focus remains on returning to premium profitability levels that have historically differentiated Microchip, supported by our diversified business model. While navigating the current cycle, we continue to focus on inventory management while maintaining our commitment to shareholder returns.”
Rich Simoncic, Microchip’s Chief Operating Officer, said, “Our comprehensive technology platform is driving innovation across critical markets, with our new RISC-V processors and expanded connectivity solutions demonstrating strong momentum in industrial, automotive, and aerospace applications. By delivering advanced AI capabilities, enhanced networking, and robust security technologies, we believe we are well-positioned to meet the evolving needs of our customers in increasingly complex technological environments.”
Mr. Sanghi concluded, “While we have seen substantial inventory destocking at our customers and channel partners, we believe the correction cycle is still not completed. Our March quarter bookings are running at a higher rate than December, though overall levels remain low. With net sales guidance of $920.0 million to $1.000 billion for our March quarter, we maintain a cautious but focused approach and look forward to providing a comprehensive update during our business update call on March 3, 2025.”
Original – Microchip Technology
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Renesas Electronics Corporation has announced its consolidated financial results for the year ending December 31, 2024. The company reported a revenue of 1,348.5 billion yen, marking an 8.2% decrease from the previous year.
The decline in revenue was primarily attributed to a downturn in the Industrial, Infrastructure, and IoT sectors, driven by weakening demand. Despite this, the Automotive Business segment experienced growth, benefiting from yen depreciation and channel inventory expansion.
Gross profit for the year stood at 749.8 billion yen, a decrease from the prior year. This reduction was due to lower revenue, decreased factory utilization, and a less favorable product mix. Additionally, increased research and development expenses contributed to a decline in operating profit, which fell by 167.8 billion yen to 223.0 billion yen. Consequently, profit attributable to owners of the parent company decreased by 118.0 billion yen, totaling 219.1 billion yen for the year.
In the fourth quarter of 2024, Renesas reported revenue of 292.6 billion yen. The company achieved a non-GAAP gross margin of 54.9% and a non-GAAP operating margin of 25.8% during this period.
Looking ahead, Renesas has provided consolidated forecasts for the first quarter of 2025. The company anticipates non-GAAP revenue to range between 301.5 billion yen and 316.5 billion yen. The non-GAAP gross margin is projected at 54.0%, with a non-GAAP operating margin of 24.0%.
Renesas continues to navigate the challenges posed by fluctuating market demands, focusing on its core strengths in the semiconductor industry to drive future growth.
Original – Renesas Electronics
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Coherent announced financial results for its fiscal second quarter ended December 31, 2024.
Revenue for the second quarter of fiscal 2025 was $1.43 billion, with GAAP gross margin of 35.5% and GAAP net income of $0.44 per diluted share. On a non-GAAP basis, gross margin was 38.2% with net income per diluted share of $0.95.
Jim Anderson, CEO, said, “We delivered strong growth in the December quarter on both a sequential and year-over-year basis, resulting in record revenue, driven by another quarter of strong AI-related Data Center demand as well as growth in our Telecom business. We also drove significant improvement in gross margin and operating margin. I would like to thank my Coherent teammates for their strong execution.”
Sherri Luther, CFO, said, “I am pleased by our profitability, cash generation and debt reduction in the second quarter. Revenue growth and margin expansion drove significant sequential and year-over-year increases in our GAAP and Non-GAAP EPS. We also paid down $132 million of our outstanding debt.”
Original – Coherent
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Vishay Intertechnology, Inc. announced results for the fiscal fourth quarter and year ended December 31, 2024.
Highlights
- 4Q 2024 revenues of $714.7 million
- 4Q 2024 GAAP loss per share of ($0.49); adjusted EPS of $0.00
- 4Q 2024 book-to-bill of 1.01, with book-to-bill of 0.99 for semiconductors and 1.03 for passive components
- Backlog at quarter end was 4.4 months
- Returned a total of $26.2 million to stockholders in Q4 2024; $105.1 million for the year
- FY 2024 capex of $320.1 million
“Our fourth quarter results came in as expected, slightly below the third quarter. Nevertheless, we saw many promising indicators including a positive book-to-bill for the first time in nine quarters, strong order intake for smart grid infrastructure projects, and initial shipments for A.I. servers,” said Joel Smejkal, President and CEO.
“For 2025, we are well positioned to support a market upturn as capacity, print position, and customer engagements have been key priorities under Vishay 3.0. All of our strategic levers are in play as we continue to execute our five-year plan to position Vishay to take advantage of the megatrends of e-mobility and sustainability.”
For the first quarter of 2025, management expects revenues in the range of $710 million +/- $20 million and a gross profit margin in the range of 19.0% +/- 50 basis points, including the negative impact of approximately of 175-200 basis points related to Newport.
Original – Vishay Intertechnology
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Soitec announced consolidated revenue of 226 million Euros for the third quarter of FY’25 (ended December 29th, 2024), down 6% on a reported basis compared to the third quarter of FY’24. This reflects a 10% decline at constant exchange rates and perimeter, a positive currency impact of 5% and a negative scope effect of 1%.
Pierre Barnabé, Soitec’s CEO, commented: “After a very strong sequential rebound in the second quarter, we maintained the third-quarter revenue at a fairly similar level. The good performance of the Mobile Communications division was driven by sustained momentum in POI, and a seasonal tailwind in RF-SOI sales. Despite seasonal restocking in the second half of the fiscal year, the customers continue to optimize RF-SOI inventory levels based on seasonality and market conditions, which will keep driving fluctuations over the next few quarters. At the same time, we are strengthening our position as a leader, notably with the introduction of new innovative 300mm products. The Automotive and Industrial division continues to be impacted by a weak automotive market. In Edge & Cloud AI, the momentum remains strong, supported by significant investments in cloud infrastructure across the industry to accelerate AI computing power, as well as increasing demand at the edge for lower energy consumption and processing costs.
Due to worsening conditions in the Automotive and Consumer markets, a couple of customers have requested to put some delivery requests on hold. As a consequence, we are adjusting our guidance for fiscal year 2025, with annual revenue expected to decrease by high single digit year-on-year. We are managing our EBITDA margin to be between 32% and 34%.
With the lack of visibility on our end markets for now, it is also too early to provide specific guidance for fiscal year 2026. Given current market conditions, we expect at this stage quite limited growth for fiscal year 2026.
Our fundamentals remain solid and will allow us to accelerate as end markets recover. We continue to enhance our technology leadership, to strengthen our SOI positioning with both existing and new customers, and to deploy our expansion into compound semiconductors with the acceleration of POI volumes and a fifth customer in qualification on SmartSiCTM.”
Original – Soitec
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Siltronic AG has achieved its annual guidance for 2024 at the upper end of expectations based on preliminary, unaudited figures. The company reported preliminary sales of EUR 1,413 million, a decline of about 7 percent compared to the previous year (2023: EUR 1,514 million). The target for the reporting year was a high single-digit percentage decrease in sales.
The main reason for the year-over-year decline was weaker demand from the semiconductor industry due to continued high inventory levels, particularly at chip manufacturers. Despite the ongoing demand weakness for the second consecutive financial year, Siltronic recorded only a slight decrease in sales prices. As a result, a preliminary EBITDA of EUR 364 million (2023: EUR 434 million) and thus a continued solid EBITDA margin of 26 percent (2023: 29 percent) was achieved. This margin was also at the upper end of the guided range of 24 to 26 percent.
“Despite a challenging market environment, we achieved our guidance and demonstrated our resilience with an EBITDA margin of 26 percent, thanks to targeted cost reduction measures. For the year 2025, we anticipate that the growth in the end-markets, primarily driven by AI, will not yet be reflected in our wafer demand due to the persistently elevated inventory levels in the value chain. Therefore, we expect H1 2025 to be significantly weaker than H2 2024,” commented Dr. Michael Heckmeier, CEO of Siltronic AG.
Compared to the previous year, cost of sales decreased at an underproportional level to sales due to lower fixed cost dilution and higher depreciation. As expected, earnings before interest and taxes (EBIT) were significantly lower year-over-year at EUR 125 million (2023: EUR 231 million). The preliminary EBIT margin was 9 percent compared to 15 percent in 2023.
Net cash flow improved due to lower capex
In the year under review, capex including intangible assets was significantly reduced to EUR 523 million (2023: EUR 1,316 million). The majority of investments continued to relate to the new 300 mm wafer fab in Singapore, which was commissioned at the beginning of 2024 and will now be ramped over several years.
Due to the ongoing demand weakness and the still elevated project-related investments, the preliminary net cash flow for 2024 remained negative at EUR -297 million, but improved significantly compared to the previous year (2023: EUR -664 million). As a result, net financial debt increased to EUR 733 million as of December 31, 2024 (2023: EUR 356 million). This includes the dividend payment of EUR 36 million for 2023.
Business performance in Q4 2024
Preliminary Q4 2024 sales of EUR 361 million were slightly higher than Q3 (EUR 357 million), supported by a stronger US dollar. Preliminary EBITDA for Q4 2024 of EUR 93 million exceeded the previous quarter’s level (Q3 2024: EUR 89 million), mainly due to the improved FX result. The preliminary EBITDA margin was 26 percent (Q3 2024: 25 percent). With a planned slight increase in depreciation, the preliminary EBIT in Q4 2024 amounted to EUR 27 million (Q3 2024: EUR 29 million). Preliminary net cash flow for Q4 improved significantly to EUR 21 million (Q3 2024: EUR -65 million). This improvement is mainly due to better operating cash flow and timing differences between payment dates and the accounting of capex. Preliminary capex for Q4 amounted to EUR 116 million (Q3 2024: EUR 94 million).
Guidance for the financial year 2025
Despite the forecast for continued end market growth in the current financial year, inventory levels at chip manufacturers and their customers are only slowly decreasing. This continues to delay the expected wafer demand recovery. The Executive Board therefore expects demand to remain subdued and no sales growth in 2025. Assuming unchanged exchange rates, sales are expected to be in the region of the previous year. According to current estimates, the first six months of 2025 will be the most affected, as customer volume shifts from long-term contracts will also partly occur from the first to the second half of 2025.
The sales guidance takes into account the announced closure of wafer production for diameters up to 150 mm in Burghausen, which is now scheduled for July 31, 2025. This will have a slightly negative impact on sales and a negligible impact on earnings compared to the previous year.
The EBITDA margin is expected to be in the range of 22 to 27 percent. The cost of ramping the new fab will be partially offset by savings in energy and other areas.
At this point, Siltronic’s visibility remains very limited. A more detailed guidance is expected to be provided with the publication of the Annual Report on March 6, 2025.
Mid-term ambition delayed due to postponed demand recovery
The demand recovery assumed in the mid-term ambition (published at the Capital Markets Day in 2023) did not materialize in 2024, and the current financial year also continues to be characterized by subdued growth prospects. As a result, the mid-term ambition of generating sales of more than EUR 2.2 billion and an EBITDA margin in the high 30’s by 2028 will likely not be realized until a later point in time.
Despite these developments, Siltronic is convinced of its medium-term growth potential. Key drivers of this growth are megatrends such as Artificial Intelligence, Digitalization, and Electromobility which will lead to a strong increase in demand for semiconductors and thus also for wafers.
Dividend proposal of EUR 0.20 per share
Due to the continued demand recovery delay, the Executive Board proposes to the Annual General Meeting on May 12, 2025, a reduction of the dividend to EUR 0.20 per share for the financial year 2024. Based on the preliminary figures, this corresponds to a payout ratio of approximately 10 percent of the consolidated net income attributable to Siltronic shareholders.
“The freed-up funds will flow into our future investments to increase the long-term value of Siltronic. Despite the ongoing demand weakness, it is important to us that our shareholders continue to participate in the company’s success,” said Claudia Schmitt, CFO of Siltronic AG.
Original – Siltronic
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Infineon Technologies AG reported results for the first quarter of the 2025 fiscal year (period ended 31 December 2024).
“Infineon has held up well in a weak market environment, closing its first quarter slightly ahead of expectations,” says Jochen Hanebeck, CEO of Infineon. “Against a continued uncertain economic backdrop, our business trajectory in this fiscal year is following the pattern we expected: Following the expected inventory reduction, we continue to anticipate that the recovery in demand will be gradual for the current fiscal year. The positive stand-out is the move towards increased use of artificial intelligence, which is driving demand for our leading power supply solutions for AI data centers. This is a prime example of our long-term growth drivers, digitalization and decarbonization.”
- Q1 FY 2025: Revenue €3.424 billion, Segment Result €573 million, Segment Result Margin 16.7 percent
- Outlook for Q2 FY 2025: Based on an assumed exchange rate of US$1.05 to the euro, revenue of around €3.6 billion expected. On this basis, Segment Result Margin forecast to be in the mid-teens percentage range
- Outlook for FY 2025: Based on an assumed exchange rate of US$1.05 to the euro (previously US$1.10), revenue is now expected to be flat to slightly up (previously: to decline slightly) compared with the prior year. The adjusted gross margin should be around 40 percent and the Segment Result Margin in the mid-to-high-teens percentage range. Investments of approximately €2.5 billion planned. Free Cash Flow adjusted for investments in frontend buildings should be around €1.7 billion and reported Free Cash Flow around €900 million
Original – Infineon Technologies
