Axcelis Announces Financial 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

Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the fourth quarter and full year ended December 31, 2024.

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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.”

Business Outlook 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 2024 Conference 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.

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 Form10-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

Axcelis Technologies,Inc.Consolidated Statements of Operations(In thousands, except per share amounts)(Unaudited) Three months ended Twelve months ended December 31, December 31, 2024 2023 2024 2023Revenue:Product $ 241,254 $ 300,603 $ 976,881 $ 1,095,650Services 11,163 9,685 40,984 34,954Total revenue 252,417 310,288 1,017,865 1,130,604Cost of revenue:Product 125,402 163,801 524,451 608,112Services 10,792 8,591 38,760 31,191Total cost of revenue 136,194 172,392 563,211 639,303Gross profit 116,223 137,896 454,654 491,301Operating expenses:Research and development 27,654 24,911 105,497 96, 907Sales and marketing 16,563 16,659 68,046 62,805General and administrative 17,475 17,275 70,317 65,794Total operating expenses 61,692 58,845 243,860 225,506Income from operations 54,531 79,051 210,794 265,795Other income (expense):Interest income 6,277 5,375 24,403 18,199Interest 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 12,804Income before income taxes 58,645 87,406 230,274 278,599Income tax provision 8,689 16,350 29,282 32,336Net income $ 49,956 $ 71,056 $ 200,992 $ 246,263Net income per share:Basic $ 1.54 $ 2.17 $ 6.17 $ 7.52Diluted $ 1.54 $ 2.15 $ 6.15 $ 7.43Shares used in computing net income per share:Basic weighted average shares of common stock 32,424 32,708 32,552 32,758Diluted weighted average shares of common stock 32,514 33,031 32,704 33,165Axcelis Technologies,Inc.Consolidated Balance Sheets(In thousands, except per share amounts)(Unaudited) December 31, December 31, 2024 2023ASSETSCurrent assets:Cash and cash equivalents $ 123,512 $ 167,297Short-term investments 447,831 338,851Accounts receivable, net 203,149 217,964Inventories, net 282,225 306,482Prepaid income taxes 6,420 -Prepaid expenses and other current assets 60,471 49,397Total current assets 1,123,608 1,079,991Property, plant and equipment, net 53,784 53,971Operating lease assets 29,621 30,716Finance lease assets, net 15,346 16,632Long-term restricted cash 7,552 6,654Deferred income taxes 68,277 53,428Other assets 50,593 40,575Total assets $ 1,348,781 $ 1,281,967LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable $ 46,928 $ 54,400Accrued compensation 25,536 31,445Warranty 13,022 14,098Income taxes – 6,164Deferred revenue 94,673 164,677Current portion of finance lease obligation 1,345 1,511Other current liabilities 26,018 12,834Total current liabilities 207,522 285,129Long-term finance lease obligation 42,329 43,674Long-term deferred revenue 43,501 46,208Other long-term liabilities 42,639 42,074Total liabilities 335,991 417,085Stockholders' 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 33Additional paid-in capital 548,654 547,189Retained earnings 470,318 319,506Accumulated other comprehensive loss (6,214) (1,846)Total stockholders' equity 1,012,790 864,882Total liabilities and stockholders' equity $ 1,348,781 $ 1,281,967Axcelis Technologies,Inc.Condensed Consolidated Statements of Cash Flows(In thousands)(Unaudited) Three months ended Twelve months ended December 31, December 31, 2024 2023 2024 2023Cash flows from operating activitiesNet income $ 49,956 $ 71,056 $ 200,992 $ 246,263Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization 4,267 3,581 15,809 13,069Stock-based compensation expense 5,380 5,239 20,951 18,269Other (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 65,575 140,818 156,869Cash flows from investing activitiesExpenditures 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) investing activities 9,121 (26,679) (108,726) (100,858)Cash flows from financing activitiesRepurchase 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 (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

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