Form 8-K - Current report

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): July 31, 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 communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨	Pre-commencement 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 of each class	Trading Symbol(s)	Name 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 July 31, 2024, Axcelis Technologies, Inc. (the “Company”) issued a press release regarding its financial results for its quarter ended June 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 9.01 Financial Statements and Exhibits.

Exhibit No.		Description

99.1		Press Release dated July 31, 2024. Filed herewith.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

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: July 31, 2024	Axcelis Technologies, Inc.

	By:	/s/ James Coogan
		James Coogan
		Executive Vice President
		and Chief Financial Officer

Exhibit 99.1

News Release

Axcelis Announces Financial Results for Second Quarter 2024

Revenue of $256.5 million

Operating margin of 20.6%

Diluted earnings per share of $1.55

BEVERLY, Mass. — July 31, 2024—Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the second quarter ended June 30, 2024. The Company reported second quarter revenue of $256.5 million, compared to $252.4 million for the first quarter of 2024. Gross margin for the quarter was 43.8%, compared to 46.0% in the first quarter. Operating profit for the quarter was $52.8 million, compared to $56.5 million for the first quarter. Net income for the quarter was $50.9 million, or $1.55 per diluted share, compared to $51.6 million, or $1.57 per diluted share in the first quarter.

President and CEO Russell Low commented, “Axcelis delivered strong financial results in the second quarter, exceeding our expectations. This was driven by better-than-expected conversion of evaluation units into revenue as well as continued robust demand in our Power segment - particularly silicon carbide, which continues to be a key growth driver for Axcelis. We are well positioned to execute on our long term strategy. As we look to the second half of the year, we expect revenue to be slightly better than the first half with momentum expected to build into 2025.”

Executive Vice President and Chief Financial Officer Jamie Coogan said, “We are very pleased with our second quarter results. Revenue, operating margin and earnings per share exceeded our guidance for the period, and we delivered another quarter of healthy cash flow. Our product positioning and our disciplined cost structure provide a solid foundation on which to grow revenue and profitability as our markets recover.”

Business Outlook

For the third quarter ending September 30, 2024, Axcelis expects revenues of approximately $255 million, and earnings per diluted share of approximately $1.43.

Second Quarter 2024 Conference Call

The Company will host a call to discuss the results for the second quarter 2024 on Thursday, August 1, 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/BIc2d772b56d7b46c0a39772ba7468e5a0

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

News Release

Safe Harbor 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/Media Relations Contact: 

Maureen Hart

Senior Director, Corporate & Marketing Communications

Telephone: (978) 787-4266

Email: Maureen.Hart@axcelis.com

News Release

Axcelis Technologies, Inc.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

	Three months ended						Six months ended
	June 30,						June 30,
	2024			2023			2024			2023
Revenue:
Product	$	245,380		$	265,673		$	488,798		$	511,680
Services		11,132			8,297			20,085			16,310
Total revenue		256,512			273,970			508,883			527,990
Cost of revenue:
Product		134,759			146,741			262,670			289,512
Services		9,344			7,526			17,753			14,756
Total cost of revenue		144,103			154,267			280,423			304,268
Gross profit		112,409			119,703			228,460			223,722
Operating expenses:
Research and development		25,786			24,130			51,448			47,903
Sales and marketing		17,230			15,537			34,675			29,681
General and administrative		16,583			16,328			32,988			31,073
Total operating expenses		59,599			55,995			119,111			108,657
Income from operations		52,810			63,708			109,349			115,065
Other income (expense):
Interest income		6,051			4,307			11,566			8,243
Interest expense		(1,339	)		(1,349	)		(2,684	)		(2,702	)
Other, net		(257	)		(2,050	)		(1,968	)		(3,088	)
Total other income		4,455			908			6,914			2,453
Income before income taxes		57,265			64,616			116,263			117,518
Income tax provision		6,399			3,037			13,803			8,242
Net income	$	50,866		$	61,579		$	102,460		$	109,276
Net income per share:
Basic	$	1.56		$	1.88		$	3.14		$	3.34
Diluted	$	1.55		$	1.86		$	3.12		$	3.29
Shares used in computing net income per share:
Basic weighted average shares of common stock		32,598			32,775			32,618			32,759
Diluted weighted average shares of common stock		32,771			33,189			32,848			33,237

News Release

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)

	June 30,			December 31,
	2024			2023
ASSETS
Current assets:
Cash and cash equivalents	$	145,166		$	167,297
Short-term investments		403,143			338,851
Accounts receivable, net		188,080			217,964
Inventories, net		283,090			306,482
Prepaid income taxes		4,107			-
Prepaid expenses and other current assets		54,741			49,397
Total current assets		1,078,327			1,079,991
Property, plant and equipment, net		52,417			53,971
Operating lease assets		28,918			30,716
Finance lease assets, net		15,989			16,632
Long-term restricted cash		6,651			6,654
Deferred income taxes		55,441			53,428
Other assets		50,662			40,575
Total assets	$	1,288,405		$	1,281,967
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	45,782		$	54,400
Accrued compensation		16,069			31,445
Warranty		14,502			14,098
Income taxes		-			6,164
Deferred revenue		148,390			164,677
Current portion of finance lease obligation		1,452			1,511
Other current liabilities		17,984			12,834
Total current liabilities		244,179			285,129
Long-term finance lease obligation		43,004			43,674
Long-term deferred revenue		25,621			46,208
Other long-term liabilities		40,653			42,074
Total liabilities		353,457			417,085

Stockholders’ equity:
Common stock, $0.001 par value, 75,000 shares authorized; 32,617 shares issued and outstanding at June 30, 2024; 32,685 shares issued and outstanding at December 31, 2023		33			33
Additional paid-in capital		542,677			547,189
Retained earnings		396,718			319,506
Accumulated other comprehensive loss		(4,480	)		(1,846	)
Total stockholders’ equity		934,948			864,882
Total liabilities and stockholders’ equity	$	1,288,405		$	1,281,967

Cover	Jul. 31, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 31, 2024
Entity File Number	000-30941
Entity Registrant Name	Axcelis Technologies, Inc.
Entity Central Index Key	0001113232
Entity Tax Identification Number	34-1818596
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	108 Cherry Hill Drive
Entity Address, City or Town	Beverly
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01915
City Area Code	978
Local Phone Number	787-4000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	ACLS
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false