Axcelis Technologies Reports Decline in Financial Performance for Q3 and Nine Months of 2024

Axcelis Technologies, Inc. reported a decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, total revenue was $256.6 million, a decrease of 12.2% from $292.3 million in the prior year. Gross profit also fell to $110.0 million, down from $129.7 million, resulting in a gross margin of 42.8%, compared to 44.3% in Q3 2023. Income from operations decreased to $46.9 million, down from $71.7 million, while net income dropped to $48.6 million, compared to $65.9 million in the same quarter of 2023. This translated to a net income per share of $1.49, down from $2.01.

For the nine months ended September 30, 2024, total revenue was $765.4 million, down from $820.3 million in the same period in 2023. Gross profit for this period was $338.4 million, compared to $353.4 million in the prior year. Net income for the nine months was $151.0 million, a decrease from $175.2 million, resulting in a net income per share of $4.63, down from $5.35.

The decline in revenue was attributed primarily to a decrease in system sales, particularly in the mature process segment, which accounted for 98% of shipped systems revenue. Product revenue for Q3 2024 was $246.8 million, down from $283.4 million, while service revenue increased slightly to $9.7 million from $9.0 million. Geographically, revenue from North America decreased significantly, while Asia Pacific saw an increase.

Operating expenses rose, with total operating expenses for Q3 2024 at $63.1 million, an increase of 8.7% from the previous year. Research and development expenses also increased by 9.6% to $26.4 million. The company recorded a bad debt expense of $3.4 million for the three-month period, significantly higher than the $0.7 million recorded in the same period of 2023.

As of September 30, 2024, Axcelis reported total current assets of $1.1 billion, an increase from $1.08 billion at the end of 2023. Cash and cash equivalents decreased to $120.1 million from $167.3 million, while total liabilities decreased to $362.5 million from $417.1 million. The company’s stockholders’ equity increased to $975.6 million from $864.9 million.

In terms of strategic developments, Axcelis has continued its stock repurchase program, repurchasing 0.4 million shares at an average cost of $118.02 per share during the nine months ended September 30, 2024. Additionally, Lynnette C. Fallon, the Executive Vice President, plans to retire in early 2025 but will remain as a senior advisor.