Axcelis Technologies Inc (ACLS) Reports Q3 2023 Earnings, Revenue Surges 27.5% YoY

GuruFocus Research
3 min read
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In this article:

  • Axcelis Technologies Inc (NASDAQ:ACLS) reported Q3 2023 earnings on November 1, 2023, with a revenue of $292.3 million, a 27.5% increase from Q3 2022.

  • The company's net income for Q3 2023 stood at $65.9 million, a significant increase from $40.3 million in Q3 2022.

  • ACLS expects Q4 2023 revenues to be approximately $295 million, with a forecasted operating profit of approximately $73 million.

  • The company anticipates achieving revenue of greater than $1.1 billion in 2023.

On November 1, 2023, Axcelis Technologies Inc (NASDAQ:ACLS) announced its financial results for the third quarter of 2023. The company reported a robust financial performance driven by strong demand for the Purion product family, particularly in the silicon carbide power market.

Financial Performance

The company's Q3 2023 revenue was $292.3 million, a 27.5% increase from $229.2 million in Q3 2022. The net income for the quarter stood at $65.9 million, significantly higher than the $40.3 million reported in the same period last year. The company's gross profit for Q3 2023 was $129.7 million, compared to $103.3 million in Q3 2022.

Executive Commentary

President and CEO Russell Low commented on the results, stating,

Axcelis delivered strong third quarter financial performance due to robust demand for the Purion product family, especially in the silicon carbide power market. Axcelis is the only company with a product line that can deliver complete recipe coverage for all power device applications."

He further added that this positions Axcelis to benefit from high growth in this market and expects to achieve revenue of greater than $1.1 billion in 2023.

James Coogan, Executive Vice President and Chief Financial Officer, expressed satisfaction with the Q3 2023 financial results. He said,

We are very pleased with our third quarter 2023 financial results. Revenue, EPS and gross margins all finished well above guidance. Axcelis has had the rare opportunity to grow revenue 20% year over year as well as improve profitability during a significant industry downturn."

Business Outlook

For the fourth quarter ending December 31, 2023, Axcelis expects revenues of approximately $295 million. The gross margin in the fourth quarter is expected to be approximately 45%. Fourth quarter operating profit is forecast to be approximately $73 million with earnings per diluted share of approximately $2.00. For the full year, the Company expects to achieve revenue of greater than $1.1 billion and to achieve full year gross margins of approximately 43.6%.

Financial Statements Summary

The company's consolidated balance sheet as of September 30, 2023, shows total assets of $1.2 billion, up from $1.01 billion at the end of 2022. The total liabilities stood at $400.7 million, while the total stockholders' equity was $800.9 million.

The consolidated statement of operations shows a total revenue of $820.3 million for the nine months ended September 30, 2023, up from $653.9 million for the same period in 2022. The net income for the nine months ended September 30, 2023, was $175.2 million, a significant increase from $126.1 million in the same period last year.

Explore the complete 8-K earnings release (here) from Axcelis Technologies Inc for further details.

This article first appeared on GuruFocus.

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