Form 8-K - Current report

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): November 6, 2024

 

Axcelis Technologies, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware		000-30941		34-1818596
(State or other jurisdiction		(Commission		(IRS Employer
of incorporation)		File Number)		Identification No.)

 

108 Cherry Hill Drive, Beverly, Massachusetts		01915
(Address of principal executive offices)		(Zip Code)

 

Registrant’s telephone number, including area code: [phone]

 

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	ACLS	NASDAQ Global Select Market

 

 

 

 

 

Item 2.02 Results of Operations and Financial Condition

 

On November 6, 2024, Axcelis Technologies, Inc. (the “Company”) issued a press release regarding its financial results for its quarter ended September 30, 2024. The Company’s press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference herein.

 

Item 7.01 Regulation FD Disclosure.

 

During the preparation of the Company’s financial statements for the quarter ended September 30, 2024, the Company’s internal financial team identified an error in the calculation of backlog in prior periods, beginning in 2019 through the second quarter of 2024, as reported in previously filed Form 10-Ks and as discussed from time to time in quarterly earnings calls. Attached as Exhibit 99.2 to this Current Report on Form 8-K and incorporated by reference herein is a chart showing the backlog amounts reported in the Company’s Form 10-Ks for the years ended 2019, 2020, 2021, 2022 and 2023, and as provided for the first two quarters of 2024, as originally reported and as corrected.

 

Item 9.01   Financial Statements and Exhibits.

 

Exhibit No.		Description
99.1		Press Release dated November 6, 2024. Filed herewith
99.2		Historical Backlog Correction dated November 6, 2024. Filed herewith
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

2

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: November 6, 2024	Axcelis Technologies, Inc.
	By:	/s/ James Coogan
		James Coogan
		Executive Vice President
		and Chief Financial Officer

 

3

 

Exhibit 99.1

 

NEWS RELEASE

 

Axcelis Announces Financial Results for Third Quarter 2024

 

	·	Revenue of $256.6 million
	·	Operating margin of 18.3%
	·	Diluted earnings per share of $1.49

 

BEVERLY, Mass. — Nov. 6, 2024—Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the third quarter ended September 30, 2024. The Company reported third quarter revenue of $256.6 million, compared to $256.5 million for the second quarter of 2024. Gross margin for the quarter was 42.9%, compared to 43.8% in the second quarter. Operating profit for the quarter was $46.9 million, compared to $52.8 million for the second quarter. Net income for the quarter was $48.6 million, or $1.49 per diluted share, compared to $50.9 million, or $1.55 per diluted share in the second quarter.

 

President and CEO Russell Low commented, "Axcelis executed well in the third quarter with results relatively in-line with our expectations. While we anticipate a near term digestion of mature node capacity through the first half of 2025, customer engagement is strong and our long-term growth opportunity remains squarely intact highlighted by attractive secular growth in silicon carbide, a cyclical recovery in our memory and general mature markets, market share gains in advanced logic and regional penetration of the Japan market.”

 

Executive Vice President and Chief Financial Officer Jamie Coogan said, “We are pleased with the financial performance delivered by our team thus far in 2024. Our cash generation remains strong, we are engaging with customers across a number of key growth opportunities, and we are investing in our product roadmaps while maintaining discipline in our overall cost structure. All of this, when coupled with our strong balance sheet, put us in position to capture the growth opportunities that lie ahead and drive long-term value creation for shareholders.”

 

Business Outlook

 

For the fourth quarter ending December 31, 2024, Axcelis expects revenues of approximately $245 million, and earnings per diluted share of approximately $1.25.

 

Correction of Historical Backlog

 

During the preparation of the Company’s third quarter financial statements, the Axcelis internal financial team identified an error in the calculation of backlog, beginning in 2019 through the second quarter of 2024. For example, corrected backlog as of June 30, 2024 was $879 million, compared to previously reported backlog of $994 million. Backlog as of September 30, 2024 was $758 million.

 

 

 

 

NEWS RELEASE

 

The corrected historical figures for 2019 through the second quarter of 2024 have been posted to the Investor section of the Axcelis website at investor.axcelis.com.

 

Third Quarter 2024 Conference Call

 

The Company will host a call to discuss the results for the third quarter 2024 on Thursday, Nov. 7, 2024, at 8:30 a.m. ET. The call will be available via 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/BI64036dd04ee74de4bea3e1ba939fae67

 

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 45 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.

 

 

 

 

NEWS RELEASE

 

CONTACTS:

 

Investor Relations Contact: 

David Ryzhik 

Senior Vice President, Investor Relations and Corporate Strategy 

Telephone: [phone] 

Email: [e-mail]

 

Press/Media Relations Contact:  

Maureen Hart 

Senior Director, Corporate & Marketing Communications 

Telephone: [phone] 

Email: [e-mail]

 

 

 

 

NEWS RELEASE

 

Axcelis Technologies, Inc. 

Consolidated Statements of Operations 

(In thousands, except per share amounts) 

(Unaudited)

 

		Three months ended								Nine months ended
		September 30,								September 30,
		2024				2023				2024				2023
Revenue:
Product		$	246,826			$	283,367			$	735,626			$	795,047
Services			9,738				8,959				29,822				25,269
Total revenue			256,564				292,326				765,448				820,316
Cost of revenue:
Product			136,379				154,798				399,049				444,311
Services			10,215				7,844				27,968				22,600
Total cost of revenue			146,594				162,642				427,017				466,911
Gross profit			109,970				129,684				338,431				353,405
Operating expenses:
Research and development			26,395				24,093				77,843				71,996
Sales and marketing			16,808				16,465				51,483				46,146
General and administrative			19,854				17,446				52,842				48,519
Total operating expenses			63,057				58,004				182,168				166,661
Income from operations			46,913				71,680				156,263				186,744
Other income (expense):
Interest income			6,560				4,580				18,126				12,824
Interest expense			(1,333	)			(1,325	)			(4,017	)			(4,027	)
Other, net			3,225				(1,260	)			1,257				(4,348	)
Total other income			8,452				1,995				15,366				4,449
Income before income taxes			55,365				73,675				171,629				191,193
Income tax provision			6,789				7,744				20,593				15,986
Net income		$	48,576			$	65,931			$	151,036			$	175,207
Net income per share:
Basic		$	1.49			$	2.01			$	4.63			$	5.35
Diluted		$	1.49			$	1.99			$	4.61			$	5.28
Shares used in computing net income per share:
Basic weighted average shares of common stock			32,550				32,807				32,595				32,775
Diluted weighted average shares of common stock			32,675				33,159				32,780				33,208

 

 

 

 

NEWS RELEASE

 

Axcelis Technologies, Inc. 

Consolidated Balance Sheets 

(In thousands, except per share amounts) 

(Unaudited)

 

		September 30,				December 31,
		2024				2023
ASSETS
Current assets:
Cash and cash equivalents		$	120,066			$	167,297
Short-term investments			459,341				338,851
Accounts receivable, net			183,543				217,964
Inventories, net			290,954				306,482
Prepaid income taxes			10,748				—
Prepaid expenses and other current assets			57,441				49,397
Total current assets			1,122,093				1,079,991
Property, plant and equipment, net			54,454				53,971
Operating lease assets			30,391				30,716
Finance lease assets, net			15,668				16,632
Long-term restricted cash			6,653				6,654
Deferred income taxes			58,938				53,428
Other assets			49,928				40,575
Total assets		$	1,338,125			$	1,281,967
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	54,047			$	54,400
Accrued compensation			23,070				31,445
Warranty			14,547				14,098
Income taxes			—				6,164
Deferred revenue			138,682				164,677
Current portion of finance lease obligation			1,399				1,511
Other current liabilities			20,519				12,834
Total current liabilities			252,264				285,129
Long-term finance lease obligation			42,671				43,674
Long-term deferred revenue			25,344				46,208
Other long-term liabilities			42,252				42,074
Total liabilities			362,531				417,085
Stockholders’ equity:
Common stock, $0.001 par value, 75,000 shares authorized; 32,504 shares issued and outstanding at September 30, 2024; 32,685 shares issued and outstanding at December 31, 2023			33				33
Additional paid-in capital			545,350				547,189
Retained earnings			432,429				319,506
Accumulated other comprehensive loss			(2,218	)			(1,846	)
Total stockholders’ equity			975,594				864,882
Total liabilities and stockholders’ equity		$	1,338,125			$	1,281,967

 

 

 

 

 

Exhibit 99.2

 

HISTORICAL BACKLOG CORRECTION NOVEMBER 6, 2024

 

 

2 CORRECTED HISTORICAL BACKLOG (2019 - Q2 2024) June 30, March 31, As of December 31, 2024 2024 2023 2022 2021 2020 2019 (in millions) $879 $973 $1,061 $1,020 $415 $111 $84 Corrected Backlog $994 $1,121 $1,212 $1,125 $461 $116 $99 Previously Reported Backlog $(115) $(149) $(151) $(105) $(46) $(5) $(15) Variance

 

 

Cover	Nov. 06, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 06, 2024
Entity File Number	000-30941
Entity Registrant Name	Axcelis Technologies, Inc.
Entity Central Index Key	0001113232
Entity Tax Identification Number	34-1818596
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	108 Cherry Hill Drive
Entity Address, City or Town	Beverly
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01915
City Area Code	978
Local Phone Number	787-4000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	ACLS
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false

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