Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $252 million, with earnings per diluted share of $1.54, slightly better than expectations due to strong demand in aftermarket CS and I sales [5][19] - Full year 2024 revenue totaled $1.02 billion, consisting of $783 million in systems revenue and $235 million in CS and I revenue [19] - Gross margins for Q4 were 46%, exceeding the outlook of 42.5%, driven by stronger CS and I revenue [21] - Full year gross margins were 44.7%, a 120 basis point increase year over year despite lower revenue volume [23] Business Line Data and Key Metrics Changes - Mature node applications accounted for the majority of sales, particularly in power and general mature segments [6] - Revenue from the power market was 51% of the mix, down from 57% in Q3 2024, while silicon carbide system sales grew approximately 6% year over year [6][7] - Image sensor revenue moderated in Q4 following a large customer order in Q3, with expectations for flattish revenue in Q1 2025 [11] - Memory sales improved sequentially in Q4, particularly in DRAM, with expectations for consistent sales in Q1 2025 [12] Market Data and Key Metrics Changes - China remained the strongest region, accounting for 49% of total shipped system sales, although there was a sequential decline due to lower image sensor sales [20] - System sales to Korea improved to 11% in Q4 from 1% in Q3, mainly due to improved shipments in memory [20] - The company anticipates a decline in revenue from silicon carbide in Q1 2025 as customers undergo a digestion period, but long-term drivers remain intact [8][30] Company Strategy and Development Direction - The company is focused on capturing growth opportunities through product innovation, cost management, and customer engagement on technology roadmaps [31] - Long-term growth drivers include the increasing demand for silicon carbide in power applications and market recovery in memory and general mature segments [17][18] - The company plans to continue organic investments, execute share buybacks, and evaluate inorganic growth opportunities [25] Management's Comments on Operating Environment and Future Outlook - Management expects overall revenue in 2025 to decline year over year, with a slight uptick anticipated in the second half of the year based on backlog and customer discussions [28][36] - The company is monitoring the impact of new U.S. government restrictions on revenue from China, estimating a potential impact of $20 million to $50 million in 2025 [30] - Management remains optimistic about the long-term growth potential in silicon carbide and memory markets despite short-term challenges [17][18] Other Important Information - The company received 22 customer awards in 2024, reflecting a significant increase compared to 2023, highlighting its commitment to customer satisfaction [18] - The company will begin including image sensor revenue as part of its general mature category starting in Q1 2025 to simplify disclosures [27] Q&A Session Summary Question: Factors for a stronger second half in 2025 - Management believes the second half will be stronger based on backlog, customer conversations, and stabilized bookings [34][36] Question: Memory revenue expectations for 2025 - Management expects the majority of memory revenue in 2025 to come from DRAM, with NAND remaining muted due to capacity issues [39][41] Question: Impact of export control on revenue from China - Management revised the estimated impact of export controls to the low end of the previously guided range, based on new information received [44][45] Question: Near-term dynamics and digestion in China - Management noted that digestion in China is not solely due to oversupply but also involves technology ramping and yield optimization [50][52] Question: Silicon carbide revenue and geographic exposure - Management indicated that while silicon carbide revenue is expected to be down in 2025, it remains a robust business with diverse customer engagement [66][68]

Q4 2024 EARNINGS PRESENTATION FEBRUARY 11, 2025 Strong demand for aftermarket CS&I sales Sequential decline in Power and Image Sensor, offset by an improvement in General Mature and Memory CS&I sales the primary driver behind better-than-expected margins and EPS Bookings stabilized, and flat on a sequential basis 3 SHIPPED SYSTEMS REVENUE BY SEGMENT: Q4 & FULL YEAR 2024 p o w e r m a t u r e n o d e s p o w e r m a t u r e n o d e s Q4'24 SEGMENT 2024* 36% SILICON CARBIDE (SiC) 41% 14% SILICON IGBT 15% 34% ...

Core Insights - Axcelis Technologies (ACLS) reported quarterly earnings of $1.54 per share, exceeding the Zacks Consensus Estimate of $1.25 per share, but down from $2.15 per share a year ago, indicating an earnings surprise of 23.20% [1] - The company achieved revenues of $252.42 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.07%, but down from $310.29 million year-over-year [2] - Axcelis has consistently surpassed consensus EPS estimates over the last four quarters [2] Earnings Outlook - The immediate price movement of Axcelis shares will depend on management's commentary during the earnings call and future earnings expectations [3][4] - Current consensus EPS estimate for the upcoming quarter is $1.03 on revenues of $225.7 million, and for the current fiscal year, it is $5 on revenues of $974.65 million [7] Industry Context - The Electronics - Manufacturing Machinery industry, to which Axcelis belongs, is currently ranked in the bottom 10% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5]

Financial Performance - For the full year 2024, Axcelis reported revenue of $1.02 billion, a decrease of 9.7% compared to $1.13 billion in 2023[2] - Fourth quarter revenue was $252.4 million, down from $256.6 million in the third quarter of 2024, with a gross margin of 46.0%[3] - Operating profit for the full year 2024 was $210.8 million, compared to $265.8 million in 2023, reflecting a decline of 20.7%[2] - Net income for 2024 was $201 million, with diluted earnings per share of $6.15, down from $246.3 million and $7.43 per share in 2023[2] - Net income for Q4 2024 was $49,956 million, a decrease of 29.5% compared to $71,056 million in Q4 2023[16] Future Outlook - Axcelis expects first quarter 2025 revenues of approximately $185 million and earnings per diluted share of approximately $0.38[6] - The company plans to focus on product innovation and cost management to capture long-term growth opportunities[4] Cash and Assets - Cash and cash equivalents decreased to $123.5 million as of December 31, 2024, from $167.3 million a year earlier[14] - Total assets increased to $1.35 billion as of December 31, 2024, compared to $1.28 billion in 2023[14] - Cash, cash equivalents, and restricted cash at the end of the period stood at $131,064 million, unchanged from the previous year[16] Cash Flow and Financing - Net cash provided by operating activities for the twelve months ended December 31, 2024, was $140,818 million, down from $156,869 million in the previous year, reflecting a decrease of 10.2%[16] - Cash flows from investing activities showed a net cash used of $108,726 million for the twelve months ended December 31, 2024, compared to $100,858 million in 2023, indicating an increase in cash outflow of 7.4%[16] - The net cash used in financing activities for the twelve months ended December 31, 2024, was $71,192 million, compared to $68,268 million in 2023, indicating an increase of 2.7%[16] Shareholder Returns - The company returned capital to shareholders through buybacks, exiting the year with a stronger balance sheet[4] - The company repurchased $60,489 million of common stock in the twelve months ended December 31, 2024, compared to $52,499 million in 2023, representing an increase of 15.2%[16] Expenses - Depreciation and amortization expenses for Q4 2024 were $4,267 million, up from $3,581 million in Q4 2023, reflecting an increase of 19.2%[16] - Stock-based compensation expense for the twelve months ended December 31, 2024, was $20,951 million, an increase of 14.8% from $18,269 million in 2023[16] Operational Changes - The company experienced a significant change in operating assets and liabilities, with a net decrease of $46,381 million in Q4 2024 compared to a slight increase of $264 million in Q4 2023[16] - The effect of exchange rate changes on cash and cash equivalents resulted in a decrease of $3,013 million in Q4 2024, contrasting with an increase of $1,128 million in Q4 2023[16]

Financial Performance - For the full year 2024, the company reported revenue of $1.02 billion, a decrease from $1.13 billion in 2023. Systems revenue was $782.6 million, down from $883.6 million in 2023. Operating profit was $210.8 million compared to $265.8 million in 2023. Net income for the year was $201 million with diluted earnings per share of $6.15, down from net income of $246.3 million and diluted earnings per share of $7.43 in 2023. Gross margin improved to 44.7% from 43.5% in 2023 [2][4]. - In Q4 2024, the company reported revenue of $252.4 million, slightly down from $256.6 million in Q3 2024. Gross margin for the quarter was 46.0%, an increase from 42.9% in Q3. Operating profit for the quarter was $54.5 million, up from $46.9 million in Q3. 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 Q3 [3][8]. Management Commentary - The President and CEO highlighted that the company exited the year strongly, with Q4 revenue and profitability exceeding expectations. Looking ahead to 2025, the company anticipates a cyclical digestion period as customers adjust to previous investments, particularly in China. The focus will be on long-term growth opportunities through product innovation, cost management, and collaboration with customers on technology roadmaps [4]. - The Executive Vice President and CFO expressed satisfaction with the financial execution in 2024, noting the ability to deliver higher gross margins and solid free cash flow despite a revenue decline. The company returned capital to shareholders via buybacks and ended the year with a stronger balance sheet, positioning itself to invest during the cyclical digestion period [4]. Business Outlook - For Q1 2025, the company expects revenues of approximately $185 million and earnings per diluted share of approximately $0.38 [5].

Core Insights - Axcelis Technologies, Inc. will showcase its Purion™ platform of ion implanters at SEMICON Korea 2025, highlighting trends such as AI, advanced packaging, and sustainable semiconductor manufacturing technologies [1][2] Company Overview - Axcelis has over 45 years of experience providing innovative, high-productivity solutions for the semiconductor industry, focusing on ion implantation systems [3] Event Participation - The company will be located at Booth D622 during SEMICON Korea, emphasizing its commitment to the Korean market and the expansion of its operations with a new Asia HUB Warehouse [2] Product Offerings - The Purion™ platform is the flagship implant platform, addressing various implant requirements for existing and emerging applications [5] - The Purion Power Series™ is designed for power devices, accommodating multiple wafer sizes (150mm, 200mm, and 300mm) and various substrate types [5] - New upgrade offerings include enhancements for performance and efficiency, featuring innovative source technology and productivity packages [5]

Company Performance - Axcelis Technologies (ACLS) ended the latest trading session at $66.15, reflecting a +0.68% adjustment from the previous close, while the S&P 500 gained 0.72% [1] - The stock has experienced an 11.75% decline over the past month, underperforming the Computer and Technology sector's loss of 1.35% and the S&P 500's gain of 1.02% [1] Upcoming Earnings Report - Axcelis Technologies is set to release its earnings report on February 10, 2025, with projected earnings per share (EPS) of $1.25, indicating a 41.86% decrease from the same quarter last year [2] - Revenue is expected to be $244.9 million, reflecting a 21.07% drop compared to the year-ago quarter [2] Analyst Forecasts - Investors should monitor recent revisions to analyst forecasts for Axcelis Technologies, as these revisions often indicate short-term business trends [3] - Positive estimate revisions are viewed as a sign of optimism regarding the company's business outlook [3] Valuation Metrics - Axcelis Technologies has a Forward P/E ratio of 13.13, which is a discount compared to the industry average Forward P/E of 24.09 [6] - The company's PEG ratio stands at 2.4, while the Electronics - Manufacturing Machinery industry has an average PEG ratio of 0.95 [6] Industry Context - The Electronics - Manufacturing Machinery industry is part of the Computer and Technology sector and currently holds a Zacks Industry Rank of 206, placing it in the bottom 18% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Award Recognizes Companies Who Achieve Highest Level of Safety BEVERLY, Mass., Feb. 3, 2025 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS), a leading supplier of enabling ion implantation solutions for the semiconductor industry, has received the '2024 SK hynix CSO Safety and Health Award'. This prestigious award honors companies whose dedication and commitment in supplying products and services meet SK hynix's high standards for fab site and personal safety. The award was presented by Kim Youngs ...

Core Viewpoint - Axcelis Technologies, Inc. will release its financial results for the fourth quarter and full year 2024 on February 10, 2025, after market close [1] - A conference call to discuss these results is scheduled for February 11, 2025, at 8:30 a.m. ET, accessible via webcast [2] Company Overview - Axcelis Technologies, Inc. is a leading supplier of ion implantation solutions for the semiconductor industry, with over 45 years of experience [3] - The company focuses on developing high-productivity solutions and providing complete life cycle support for ion implantation systems, which are critical in the integrated circuit manufacturing process [3]

Company Focus - Axcelis Technologies has a niche focus on ion implant semiconductor equipment, which accounts for 98% of its revenues [1] - The company's specialization in this area positions it favorably despite the relatively small market size, which is only 1.7% of the total semiconductor equipment market [1] Industry Context - The semiconductor equipment market is a critical component of the broader technology sector, with ion implantation being a specialized segment [1] - The company's focus on ion implant technology aligns with the broader industry trends in semiconductor manufacturing [1] Investment Strategy - The analysis highlights the importance of specialized expertise in cutting-edge technologies, such as Artificial Intelligence, Cloud Computing, 5G, Autonomous & Electric Vehicles, FinTech, Augmented & Virtual Reality, and the Internet of Things [1] - These transformative fields are reshaping numerous industries and are likely to influence investment strategies in the semiconductor sector [1]