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Achieved Record Annual Revenue, Gross Margin and EPS
BEVERLY, Mass., Feb. 8, 2023 /PRNewswire/ --Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the fourth quarter and full year ended December 31, 2022.
Highlights include:
For the full year 2022, the Company reported revenue of $920 million, compared with $662.4 million for the full year 2021, an increase of 39% and a company record. Systems revenue for the year was $692.1 million, compared to $454.6 million in 2021, an increase of 52%, also a company record. Operating profit was $212.4 million in 2022, compared to $127.3 million in 2021, a 67% increase and a company record. Net income for the year was $183.1 million with diluted earnings per share of $5.46, compared to net income of $98.7 million and diluted earnings per share of $2.88 in 2021, resulting in a 86% net income year over year increase. Gross margin for the year was 43.7%, a 50 basis point improvement compared to 43.2% in 2021 and a company record.
The Company reported fourth quarter revenue of $266.1 million, compared to $229.2 million for the third quarter of 2022. Operating profit for the quarter was $56.1 million, compared to $53.2 million for the third quarter. Net income for the quarter was $57.0 million, or $1.71 per diluted share, compared to $40.3 million, or $1.21 per diluted share in the third quarter. Gross margin for the quarter was 41.2%, compared to 45.1% in the third quarter. Fourth quarter ended with bookings of $211.5 million and record systems backlog of $1.1 billion. Cash, cash equivalents and short-term investments were $432.2 million on December 31, 2022, compared to $342.1 million on September 30, 2022. This is net of $12.5 million of repurchased shares in the fourth quarter.
President and CEO Mary Puma commented, "2022 was another outstanding year for Axcelis. As a result of strong execution by the Axcelis team and robust demand for the Purion product family, we delivered record quarterly and annual revenues, and we surpassed our $850M revenue model. For the full year 2023 Axcelis revenues are expected to exceed $1 billion dollars and we are introducing a new long-term implant only model with revenue of $1.3 billion dollars that we believe is achievable within the next 2 to 3 years."
Executive Vice President and Chief Financial Officer Kevin Brewer said, "We are extremely pleased with our 2022 results, and very excited about our projected growth. As a result of the success of Purion and tight control of our cost structure, Axcelis' profitability has improved significantly and we expect further gains in 2023 and beyond."
Business OutlookFor the first quarter ending March 31, 2023, Axcelis expects revenues of approximately $240 million. Gross margin in the first quarter is expected to be approximately 41.5%. First quarter operating profit is forecast to be approximately $48 million with earnings per diluted share of around $1.25. For the full year, the Company expects to achieve revenue of greater than $1 billion. Assuming expected improvements in supply chain costs and product mix occur in the second half of the year, we would expect to achieve full year gross margins of approximately 44% as shown in the $1B model.
Fourth Quarter and Full Year 2022 Conference CallThe Company will host a call to discuss the results for the fourth quarter and full year 2022 on Thursday, February 9, 2023, at 8:30 a.m. ET. The call will be available to interested listeners via an audio 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/BI2c9198cd02354e0fb92ddec100489c61. 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 Form 10-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 40 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.
Company Contacts
Investor Relations:Doug Lawson978.787.9552
Editorial/Media:Maureen Hart978.787.4266
Axcelis Technologies, Inc. | |||||||||||||
Consolidated Statements of Operations | |||||||||||||
(In thousands, except per share amounts) | |||||||||||||
(Unaudited) | |||||||||||||
Three months ended | Twelve months ended | ||||||||||||
December 31, | December 31, | ||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||
Revenue: | |||||||||||||
Product | $ | 258,584 | $ | 198,529 | $ | 890,582 | $ | 634,445 | |||||
Services | 7,467 | 7,155 | 29,416 | 27,983 | |||||||||
Total revenue | 266,051 | 205,684 | 919,998 | 662,428 | |||||||||
Cost of revenue: | |||||||||||||
Product | 149,717 | 109,335 | 492,104 | 349,558 | |||||||||
Services | 6,813 | 6,865 | 26,104 | 26,425 | |||||||||
Total cost of revenue | 156,530 | 116,200 | 518,208 | 375,983 | |||||||||
Gross profit | 109,521 | 89,484 | 401,790 | 286,445 | |||||||||
Operating expenses: | |||||||||||||
Research and development | 22,089 | 16,416 | 78,356 | 65,431 | |||||||||
Sales and marketing | 15,032 | 13,569 | 53,599 | 47,548 | |||||||||
General and administrative | 16,311 | 12,915 | 57,474 | 46,141 | |||||||||
Total operating expenses | 53,432 | 42,900 | 189,429 | 159,120 | |||||||||
Income from operations | 56,089 | 46,584 | 212,361 | 127,325 | |||||||||
Other income (expense): | |||||||||||||
Interest income | 2,993 | 85 | 4,551 | 209 | |||||||||
Interest expense | (1,475) | (1,263) | (5,576) | (4,835) | |||||||||
Other, net | 8,189 | (140) | (6,451) | (2,271) | |||||||||
Total other income (expense) | 9,707 | (1,318) | (7,476) | (6,897) | |||||||||
Income before income taxes | 65,796 | 45,266 | 204,885 | 120,428 | |||||||||
Income tax provision | 8,804 | 9,517 | 21,806 | 21,778 | |||||||||
Net income | $ | 56,992 | $ | 35,749 | $ | 183,079 | $ | 98,650 | |||||
Net income per share: | |||||||||||||
Basic | $ | 1.74 | $ | 1.07 | $ | 5.54 | $ | 2.94 | |||||
Diluted | $ | 1.71 | $ | 1.05 | $ | 5.46 | $ | 2.88 | |||||
Shares used in computing net income per share: | |||||||||||||
Basic weighted average common shares | 32,823 | 33,295 | 33,043 | 33,555 | |||||||||
Diluted weighted average common shares | 33,262 | 34,011 | 33,542 | 34,268 | |||||||||
Axcelis Technologies, Inc. | |||||||
Consolidated Balance Sheets | |||||||
(In thousands, except per share amounts) | |||||||
(Unaudited) | |||||||
December 31, | December 31, | ||||||
2022 | 2021 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 185,595 | $ | 294,923 | |||
Short-term investments | 246,571 | — | |||||
Accounts receivable, net | 169,773 | 104,410 | |||||
Inventories, net | 242,406 | 194,984 | |||||
Prepaid expenses and other current assets | 33,300 | 24,929 | |||||
Total current assets | 877,645 | 619,246 | |||||
Property, plant and equipment, net | 39,664 | 34,972 | |||||
Operating lease assets | 12,146 | 9,242 | |||||
Finance lease assets, net | 17,942 | 19,238 | |||||
Long-term restricted cash | 752 | 757 | |||||
Deferred income taxes | 31,701 | 35,454 | |||||
Other assets | 33,791 | 34,331 | |||||
Total assets | $ | 1,013,641 | $ | 753,240 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 62,346 | $ | 38,025 | |||
Accrued compensation | 35,540 | 30,732 | |||||
Warranty | 8,299 | 6,424 | |||||
Income taxes | 4,304 | 887 | |||||
Deferred revenue | 123,471 | 60,454 | |||||
Current portion of finance lease obligation | 1,229 | 979 | |||||
Other current liabilities | 12,943 | 12,639 | |||||
Total current liabilities | 248,132 | 150,140 | |||||
Long-term finance lease obligation | 45,185 | 46,415 | |||||
Long-term deferred revenue | 31,306 | 7,982 | |||||
Other long-term liabilities | 21,762 | 9,744 | |||||
Total liabilities | 346,385 | 214,281 | |||||
Stockholders' equity: | |||||||
Common stock, $0.001 par value, 75,000 shares authorized; 32,775 shares issued andoutstanding at December 31, 2022; 33,240 shares issued and outstanding at December 31, 2021 | 33 | 33 | |||||
Additional paid-in capital | 550,299 | 559,883 | |||||
Retained earnings (accumulated deficit) | 118,892 | (22,722) | |||||
Accumulated other comprehensive (loss) income | (1,968) | 1,765 | |||||
Total stockholders' equity | 667,256 | 538,959 | |||||
Total liabilities and stockholders' equity | $ | 1,013,641 | $ | 753,240 | |||
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SOURCE Axcelis Technologies, Inc.
