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Axcelis Technologies, Inc. announced financial results for the fourth quarter and full year ended December 31, 2023.
Highlights include:
- Record full year revenue, operating profit and EPS, enabling the Company to surpass its $1.1 billion revenue model.
- Continued strong growth from the Purion Power Series™ product line.
- Significant increase in Purion™ installed base drove record CS&I revenue.
- Year-end systems backlog of $1.2 billion.
For the full year 2023, the Company reported revenue of $1.13 billion, compared with $920 million for the full year 2022, an increase of 23% and a company record. Systems revenue for the year was $883.6 million, compared to $692.1 million in 2022, an increase of 28%, also a company record.
Operating profit was $265.8 million in 2023, compared to $212.4 million in 2022, a 25% increase and a company record. Net income for the year was $246.3 million with diluted earnings per share of $7.43, compared to net income of $183.1 million and diluted earnings per share of $5.46 in 2022, resulting in a 35% net income year over year increase. Gross margin for the year was 43.5%, compared to 43.7% in 2022.
The Company reported fourth quarter revenue of $310.3 million, compared to $292.3 million for the third quarter of 2023. Operating profit for the quarter was $79.1 million, compared to $71.7 million for the third quarter. Net income for the quarter was $71.1 million, or $2.15 per diluted share, compared to $65.9 million, or $1.99 per diluted share in the third quarter. Gross margin for the quarter was 44.4%, unchanged from the third quarter. The fourth quarter ended with bookings of $235.5 million and a systems backlog of $1.2 billion.
President and CEO Russell Low commented, “2023 was another outstanding year for Axcelis. As a result of strong execution by the Axcelis team and robust demand for the Purion Power Series product family, we achieved 23% year-over-year revenue growth during an industry downturn. We have developed a large and diverse customer base in the power market, and we continue to win business from new customers as well as expand our product footprint with existing customers. We believe that the mature process technology and memory segments, two markets in which Axcelis is well-positioned, will recover in the second half of the year, enabling strong growth in 2025.”
Executive Vice President and Chief Financial Officer Jamie Coogan said, “We are extremely pleased with our 2023 results, and excited about our future growth. Our revenue and earnings per share finished above our revised guidance, and we ended the quarter with robust cash flow and a strong balance sheet. As we look to 2024, we will continue to make investments in R&D while managing expenses, setting us up to achieve our $1.3 billion revenue model in 2025.”
For the first quarter ending March 31, 2024, Axcelis expects revenues of approximately $242 million. First quarter operating profit is forecast to be approximately $45 million with earnings per diluted share of around $1.22. Gross margin in the first quarter is expected to be approximately 43.5%, and for the full year we expect it to improve year over year but could fluctuate quarter to quarter. We expect full year 2024 revenue to be similar to 2023, with revenue weighted toward the second half.
Original – Axcelis Technologies
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Axcelis Technologies, Inc. announced shipment of multiple Purion H SiC Power Series™ and the Purion M SiC Power Series™ ion implanter systems to leading power device chipmakers in Europe and Asia, and the closure of an Purion H200 SiC Power Series™ evaluation tool in Europe. Shipments include both evaluation and revenue systems and will be used in high volume production of power devices supporting automotive industry electric vehicle (EV) applications.
President and CEO of Axcelis Technologies Russell Low commented, “The power device market continues to grow rapidly and is a major driver of our growth globally. We are pleased to continue to support our customers’ fab capacity expansion and also excited about the opportunity to support our new customers with our market leading Purion Power Series ion implanters.”
Axcelis is the only implant supplier in the industry to offer a comprehensive solution to our power device manufacturing customers. The Purion Power Series™ family is uniquely suited to excel at power device applications due to its innovative platform that offers the flexibility to handle multiple wafer sizes (150mm, 200mm and 300mm), various substrate types (SiC, Si IGBT, GaN, and GaAs wafers) at various implant temperatures (cold, room temperature, warm and hot).
This is accomplished while delivering the industry’s highest throughput and capital efficiency. The Purion Power Series™ covers the full ion implant market space with the Purion H Purion Power Series™ for high current applications, the Purion H200 Power Series™ for high current medium energy applications, Purion M Power Series™ for medium current applications and the Purion XE Power Series™ for high energy applications.
Original – Axcelis Technologies
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Axcelis Technologies, Inc. announced the grand opening of the Company’s new Axcelis Logistics Center, located at 105 Sam Fonzo Drive, Beverly, MA. The Company celebrated this milestone event with a ribbon-cutting ceremony led by President and CEO Russell Low.
The new Axcelis Logistics Center is a state-of-the-art facility designed to optimize Axcelis’ logistics and warehouse operations and provide flex capacity for the Company’s manufacturing operations to support the Company’s growth. The facility, which measures 101,800 square feet, was designed from the ground up to incorporate the latest technologies such as AI-driven autonomous mobile robots (AMRs) and other innovative enterprise-level warehouse automation to provide significant efficiency and improve material handling and flow to the Company’s operations.
The new center is designed to be energy efficient and employee friendly. It features EV charging stations, utilizes US EPA Energy Star rated heating, ventilation and air conditioning equipment and has all LED lighting with advanced motion sensors.
President and CEO Russell Low, commented, “The ribbon cutting represents the culmination of a vision ready to be set in full motion. Our investment in this new facility will allow us to support the Company’s expanding global customer base. We will continue to invest in our employees and infrastructure to ensure we have the necessary skills and capacity required to achieve our $1.3B financial model. We are also excited to provide significant employment opportunities across a wide variety of functions here in Beverly and across the globe. We look forward to continuing to play a vibrant role in our local communities and supply chain.”
The Company plans to seek a 25% tax credit under the U.S. Chips and Science Act relating to its capital investment in the new facility. The CHIPS and Science Act aims to bolster U.S. chip manufacturing to make American semiconductor supply chains more resilient and support national security and access to key technologies.
Original – Axcelis Technologies
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Axcelis Technologies, Inc. announced financial results for the third quarter of 2023.
Highlights include:
- The Company reported third quarter revenue of $292.3 million, compared to $274.0 million for the second quarter of 2023.
- Operating profit for the quarter was $71.7 million, compared to $63.7 million for the second quarter.
- Net income for the quarter was $65.9 million, or $1.99 per diluted share, compared to $61.6 million, or $1.86 per diluted share in the second quarter.
- Gross margin for the quarter was 44.4%, compared to 43.7% in the second quarter.
- Third quarter ended with systems backlog of $1.2 billion on quarterly bookings of $198 million.
President and CEO Russell Low commented, “Axcelis delivered strong third quarter financial performance due to robust demand for the Purion product family, especially in the silicon carbide power market. Axcelis is the only company with a product line that can deliver complete recipe coverage for all power device applications. We are the technology leader and the supplier of choice providing the best device manufacturing capabilities. This uniquely positions Axcelis to benefit from high growth in this market. Axcelis expects to achieve revenue of greater than $1.1 billion in 2023.”
Executive Vice President and Chief Financial Officer James Coogan said, “We are very pleased with our third quarter 2023 financial results. Revenue, EPS and gross margins all finished well above guidance. Axcelis has had the rare opportunity to grow revenue 20% year over year as well as improve profitability during a significant industry downturn. This is a result of strong product positioning and continued strong execution in a challenging environment.”
Original – Axcelis Technologies
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Axcelis Technologies, Inc. announced the shipment of the Company’s Purion EXE SiC Power Series™ 200mm high energy implanter to a leading SiC power device chipmaker located in Japan. The system will be used in high volume production of SiC power devices for use in automotive applications.
Executive Vice President of Marketing and Applications, Greg Redinbo, commented, “The power device market is one of the fastest growing segments in IC manufacturing, due in part to the robust growth in the electric vehicles market. The power device market is at a critical inflection point as chipmakers transition from 150mm to 200mm SiC wafers.
The Purion Power Series family is uniquely suited to excel at these applications due to its innovative platform that offers the flexibility to handle multiple wafer sizes, various substrate types and operate at various implant temperatures. We look forward to continuing to expand the Purion platform footprint in Japan and supporting our customers’ goals to increase their manufacturing capacity.”
Original – Axcelis Technologies
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Axcelis Technologies, Inc. announced a shipment of the Purion Dragon™ high current implanter to a world-leading research and innovation center in nanoelectronics and digital technologies located in Europe. The system will be used in technology development for advanced logic devices. The system shipped in the third quarter of 2023.
Executive Vice President, Marketing and Applications, Greg Redinbo, commented, “We’re pleased to support growth in the advanced logic market with a new customer focused on R&D for sub 3 nanometer logic device development. This is the second Purion Dragon placed in an advanced logic R&D environment.
We designed the Purion Dragon specifically to address chipmakers’ most challenging ion implantation applications by delivering the highest levels of process control with significant productivity gains for high current applications. The Purion Dragon features a unique high current implanter architecture, featuring innovative orthogonal beam optics, and is designed to address critical implant steps for advanced memory and logic applications.”
Original – Axcelis Technologies
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Axcelis Technologies, Inc. announced that its Board of Directors has authorized additional funding of $200 million for the Company’s share repurchase program. The purchases are funded from available working capital.
“We are pleased to announce our Board’s approval of additional funding for our share repurchase program,” stated President and CEO Russell Low. “From 2019 through the second quarter of this year, we have returned over $157 million of cash to shareholders via stock repurchases. The additional funding will maintain our program when the Board’s prior funding is exhausted later this year. The strength of our business model and significant cash flow generation enable us to continue investing for the long term, while also returning cash to our shareholders.”
Repurchases of the Company’s common stock will be made from time to time under the SEC’s Rule 10b-18, subject to market conditions. These shares may be purchased in the open market or through privately negotiated transactions. The Company may from time to time enter into Rule 10b5-1 trading plans to facilitate the repurchase of its common stock pursuant to its share repurchase program. The Company has no obligation to repurchase shares under the authorization. The Company may suspend or discontinue the repurchase program at any time.
Original – Axcelis Technologies
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The Board of Directors of Axcelis Technologies, Inc. named James Coogan to succeed Kevin Brewer as Executive Vice President and Chief Financial Officer. Mr. Coogan will join the Company in October 2023. At that time, Mr. Brewer will assume the title of Executive Vice President, Finance and Operations. He will continue to manage the Company’s manufacturing operations and will support the transition of the Company’s finance function to Mr. Coogan. Mr. Brewer plans to retire at year-end 2023 and will remain as a Senior Advisor through 2024.
Mr. Coogan brings more than 20 years of finance, accounting, and investor relations experience across multiple industries, most recently in aerospace and defense. Mr. Coogan joins Axcelis after serving as Senior Vice President, Chief Financial Officer at Kaman Corporation, a leading provider of aerospace and defense products. During his 15 years with Kaman, he held various management positions including Vice President, Investor Relations and Corporate Development, Assistant Vice President, External Reporting and SEC Compliance, and Director, External Reporting and SEC Compliance.
After starting his career at PwC, he held several financial management roles at Ann Taylor Stores Corporation and Mohegan Tribal Gaming Authority before joining Kaman. He holds a Master of Business Administration from Yale School of Management, a Master of Science in Accounting from the University of Connecticut and a Bachelor of Science in Business Administration, Accounting from the University of Connecticut.
Mr. Brewer has had a 24 year career at Axcelis. He came to Axcelis through Eaton Corporation and held numerous executive level positions in the Company including CFO and EVP of Global Operations for the past 10 plus years. Prior to joining Eaton, Mr. Brewer held numerous senior level positions at Raytheon Companies Aircraft, Electronic Systems and Missile systems Divisions.
“We are immensely grateful for the contributions and legacy Kevin has left on this Company. His knowledge and experience during a unique time in Axcelis’ history enabled us to strengthen the Company and position it for a very bright future,” said Executive Chairperson Mary Puma. “Through his leadership, the Company has increased operational efficiencies, strengthened the supply chain, improved financial performance and increased the Company’s pace of profitable growth.”
President and CEO Russell Low stated, “I also want to express my gratitude to Kevin for his contributions and leadership. After an extensive search, we are delighted to announce that Jamie will be joining Axcelis as our new CFO. He is a seasoned executive with a proven track record and his wealth of knowledge and experience will be of great benefit as we continue to focus on the tremendous growth opportunities ahead for Axcelis. We are confident that Jamie will help the team continue to deliver the growth and profitability that investors have come to expect from Axcelis.”
Kevin Brewer commented, “I have been planning this transition in coordination with the Board and believe now is the right time to transition the Finance function. I will continue to oversee Manufacturing Operations through year end, at which time I will move into the Senior Advisor role, supporting both functions as needed through 2024. I am grateful for the honor and privilege to serve as CFO during this pivotal time in the Company’s history. I want to thank the entire Axcelis team for their hard work and unwavering commitment to lead us here. I also want to thank our customers, suppliers and shareholders who have supported Axcelis over the years.”
James Coogan stated, “I am thrilled to join Axcelis during such an exciting time and I look forward to partnering with the leadership team and the Board to build on the Company’s success and drive further growth and long-term shareholder returns.”
Original – Axcelis Technologies
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Axcelis Technologies, Inc. announced a shipment of a Purion H200™ SiC ion implant system to Wolfspeed. The evaluation system will be used to support the production of power devices for electric vehicle (EV) applications.
President and CEO Dr. Russell Low of Axcelis commented, “The power device market continues to grow rapidly and is a key driver of our growth globally. We are pleased to continue to support Wolfspeed’s fab capacity expansion and are also excited about the potential of this new opportunity focused on high current implant applications in silicon carbide power devices.”
“The popularity of electric vehicles is only steepening, and Wolfspeed is focused on scaling our capacity to meet the surge in demand for our silicon carbide devices. We partnered with Axcelis due to their expertise, highly differentiated features, and process control capabilities that are essential for power device applications,” said Missy Stigall, Wolfspeed senior vice president of global fab operations. “Together, we will work to ease supply chain constraints as more and more EVs utilizing Wolfspeed’s silicon carbide technology are introduced to the market.”
Wolfspeed is currently engaged in a $6.5 billion capacity expansion effort to dramatically increase production. This includes the John Palmour Manufacturing Center for Silicon Carbide, the world’s largest Silicon Carbide crystal growth facility currently under construction in North Carolina, and the final build-out of the company’s Mohawk Valley Fab in New York. Earlier this year the company also announced its plans to build a highly automated, cutting-edge 200mm wafer fabrication facility in Saarland, Germany.
Original – Axcelis Technologies
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Axcelis Technologies, Inc., a leading supplier of enabling ion implantation solutions for the semiconductor industry, announced the shipment of its 500th Purion™ ion implanter system. The shipment went to a leading semiconductor device maker located in North America.
President and CEO Mary Puma commented, “This 500th Purion shipment validates our market leadership and strong customer partnerships. We look forward to extending this leadership within our broad and diverse global customer base as they continue to expand their manufacturing capacity. This large and growing Purion installed base provides a solid foundation for our Customer Solutions & Innovation aftermarket business.”
Executive Vice President of Marketing and Applications Greg Redinbo stated, “The Purion ion implanter platform provides a winning combination of highly differentiated, enabling technology and productivity, designed to solve customers’ high value, high impact, ion implantation challenges. The advanced Purion Product Extensions have quickly established Purion as the leader in image sensor and power device manufacturing, making Axcelis the only company with a complete family of implant products for both the Si IGBT and SiC power device market segments.”
Original – Axcelis Technologies
