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Axcelis Technologies Reports Financial Results for 2024

Axcelis Technologies, Inc. (Nasdaq: ACLS) has revealed its financial results for the fourth quarter and the entire year ending December 31, 2024. The company showed resilience in a challenging market with notable metrics across both revenue and profitability.

Key Highlights from the Fourth Quarter

In Q4, Axcelis generated revenues of $252.4 million, marking a slight decrease from $256.6 million in Q3 2024. The gross margin showed improvement, rising to 46.0% compared to 42.9% in the previous quarter. Operating profit for the quarter was reported at $54.5 million, an increase from $46.9 million in Q3. The diluted earnings per share stood at $1.54, up from $1.49.

Full-Year Overview

For the full year 2024, Axcelis reported a total revenue of $1.02 billion, a decline from $1.13 billion in 2023. The revenue from systems was $782.6 million, down from $883.6 million the previous year. The operating profits also faced a decline, coming in at $210.8 million, compared to $265.8 million in 2023. However, the net income saw a significant drop from $246.3 million in the previous year to $201 million in 2024, leading to diluted earnings per share of $6.15 down from $7.43.

Despite these declines, the gross margin for 2024 improved to 44.7%, up from 43.5% in 2023, indicating better control over costs and efficiency in operations.

Leadership Insights

Russell Low, President and CEO of Axcelis, expressed satisfaction with the company's performance, emphasizing that the last quarter exceeded their expectations. Looking ahead, he noted that the company anticipates a near-term cyclical digestion period, particularly in the Chinese market, given the robust investments made into mature node capacity in recent years. Low reassured stakeholders that the company remains focused on long-term growth through product innovation, cost management, and aligning closely with customer technology roadmaps.

Jamie Coogan, Executive Vice President and CFO, highlighted the company’s adeptness at managing operations amidst financial challenges. He stated that despite the revenue decline, Axcelis succeeded in enhancing gross margins and generating solid free cash flow. They also notably returned capital to shareholders via buybacks, which is an encouraging sign for investors.

Outlook for 2025

As Axcelis sets its sight on 2025, the company has provided an initial forecast for the first quarter ending March 31, indicating anticipated revenues of approximately $185 million and earnings per diluted share around $0.38. This reflects their cautious optimism about navigating the upcoming market conditions.

Conference Call Details

To discuss these results further, Axcelis will host a conference call on February 11, 2025, at 8:30 a.m. ET. This session will be accessible via a webcast available on their investor relations page.

Conclusion

Axcelis Technologies has showcased its ability to withstand market pressures, achieving solid performance indicators amidst challenging circumstances. Through strategic planning and resource management, the company is well-positioned to capture long-term growth opportunities in the semiconductor sector. Investors and stakeholders are encouraged to stay tuned for the upcoming conference call for more insights into the company's strategic direction and financial projections for the next year.