#USA #financial results #Axcelis Technologies #Semiconductor Industry #Beverly

Axcelis Technologies Reports Q1 2025 Financial Results

On May 6, 2025, Axcelis Technologies, Inc. (Nasdaq: ACLS) unveiled its financial performance for the first quarter ending March 31, 2025. The company reported impressive revenue figures and profit margins despite facing a slower pace of customer investments and a more volatile economic environment.

Financial Highlights

Axcelis recorded revenues of $192.6 million, indicating a decrease from the $252.4 million reported during the same quarter last year. However, the gross margins remained robust at 46.1% according to GAAP standards, while the non-GAAP gross margin was recorded at 46.4%. The operating margin stood at 15.1% for GAAP and 18.3% non-GAAP, demonstrating solid execution amidst external challenges.

The diluted earnings per share (EPS) also reflected a notable shift, with GAAP EPS at $0.88 and non-GAAP EPS at $1.04, showcasing the company's ability to balance profitability with ongoing investments in innovation. President and CEO Russell Low emphasized the commitment to maintaining agility in their operations, which positions Axcelis well to navigate the current macroeconomic conditions.

Strategic Insights

In his commentary, Low highlighted that despite the moderation in customer investments, Axcelis executed strongly, showcasing a resilient approach in the face of economic uncertainty. The firm's well-optimized global manufacturing and supply chain systems have allowed it to maintain a solid foundation, addressing customer demands effectively.

Executive Vice President and Chief Financial Officer Jamie Coogan noted the robust cash flow and strong margins as indicators of their operational resilience. The company exited the quarter with a solid cash position, devoid of debt, while strategically repurchasing shares and continuing investment into the business. This positions Axcelis favorably for future growth.

Detailed Financial Performance

Q1 Financial Overview

• - Revenue: $192,563 (Q1 2024: $252,372)
• - GAAP Gross Margin: 46.1% (Q1 2024: 46.0%)
• - Non-GAAP Gross Margin: 46.4% (Q1 2024: 46.1%)
• - GAAP Operating Margin: 15.1% (Q1 2024: 22.4%)
• - Net Income: $28,579 (Q1 2024: $51,595)
• - Diluted EPS: $0.88 (Q1 2024: $1.57)

The adjusted EBITDA for the quarter stood at $39.5 million, down from $64.5 million a year ago, reflecting the impact of the challenging financial climate. However, non-GAAP net income figures also reflected a similar trend, recording $33.8 million compared to $55.2 million in the previous year.

Looking Ahead

Looking to the second quarter ending June 30, 2025, Axcelis anticipates revenues around $185 million, with expectations for GAAP earnings per share approximating $0.57 and non-GAAP EPS of about $0.73. The company remains committed to capitalizing on innovation and maintaining an efficient operational model to ensure growth in the coming quarters.

Conclusion

The Q1 results from Axcelis Technologies indicate a company that, while facing external economic hurdles, remains capable of driving profitability and sustaining investment in growth initiatives. With a solid cash position and a strategy focused on agility and innovation, Axcelis continues to be a key player in the semiconductor industry, dedicated to addressing both current and future demands.

Call to Action

To further discuss their financial results and outlook, Axcelis will be conducting a conference call at 8:30 AM ET. Interested parties can access the call through the Investors section of the Axcelis website.

For further information about Axcelis, please visit www.axcelis.com.