Q1 Highlights:

Revenue of $192.6 million GAAP Gross Margin of 46.1%, and Non-GAAP Gross Margin of 46.4% GAAP Operating Margin of 15.1% and Non-GAAP Operating Margin of 18.3% GAAP Diluted earnings per share of $0.88, and Non-GAAP Diluted earnings per share of $1.04

BEVERLY, Mass., May 6, 2025 /PRNewswire/ -- Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the first quarter ended March 31, 2025.Axcelis (PRNewsfoto/Axcelis Technologies, Inc.)

President and CEO Russell Low commented, "We executed well in the first quarter, delivering strong profitability despite a moderation in customer investments and a more uncertain broader economic backdrop. Axcelis is well positioned to navigate a dynamic macroeconomic and global trade environment with an agile global manufacturing and supply chain footprint that we have optimized over the past few years. This provides a solid platform for us to meet our customers' needs while continuing to invest in innovation to capture the long-term growth opportunities that lie ahead."

Executive Vice President and Chief Financial Officer Jamie Coogan said, "We delivered strong margins and cash flow in the first quarter, reflecting solid execution and the resilience of our operating model. We exited the quarter with a robust cash position and no debt, and are repurchasing shares in an opportunistic but disciplined manner, while continuing to invest in our business."

Results Summary  (In thousands, except per share amounts and percentages)  Three months ended March 31, 2025   2024 Revenue $ 192,563  $ 252,372 Gross margin  46.1 %   46.0 % Operating margin  15.1 %   22.4 % Net income $ 28,579  $ 51,595 Diluted earnings per share $ 0.88  $ 1.57  Non-GAAP Results  Non-GAAP gross margin  46.4 %   46.1 % Non-GAAP operating margin  18.3 %   24.1 % Adjusted EBITDA $ 39,520  $ 64,545 Non-GAAP net income $ 33,784  $ 55,234 Non-GAAP diluted earnings per share $ 1.04  $ 1.68

Business Outlook
For the second quarter ending June 30, 2025, Axcelis expects revenues of approximately $185 million. GAAP earnings per diluted share of approximately $0.57, and non-GAAP earnings per share of approximately $0.73.

Please refer to Second Quarter Outlook under the "Notes on our Non-GAAP Financial Information" section of this document for detail relating to the computation of non-GAAP earnings per diluted share as well as the Safe Harbor Statement section of this document.

First Quarter 2025 Conference Call The Company will host a call today to discuss the results 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:

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https://register-conf.media-server.com/register/BI454c6816ae884406ade486cc1372dc9f 
Webcast replays will be available for 30 days following the call.

Use of Non-GAAP Financial Results This press release includes financial measures that are not presented in accordance with U.S. generally accepted accounting principles ("Non-GAAP financial measures"). These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP income tax provision, Adjusted EBITDA, non-GAAP net income, and non-GAAP diluted earnings per share, and reflect adjustments for the impact of share-based compensation expense and certain items related to restructuring and severance charges and any associated adjustments.

Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this release.

For further information regarding these non-GAAP financial measures, please refer to the tables presenting reconciliations of our non-GAAP results to our GAAP results and the "Notes on Our Non-GAAP Financial Information" at the end of this press release.

Safe Harbor Statement 
This press release contains, and the conference call will 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, including with respect to the imposition of tariffs on our products or components of our products, 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.

CONTACTS:

Investor Relations Contact: David Ryzhik
Senior Vice President, Investor Relations and Corporate Strategy
Telephone: (978) 787-2352
Email: [email protected]

Press/Media Relations Contact:
Maureen Hart
Senior Director, Corporate & Marketing Communications
Telephone: (978) 787-4266
Email: [email protected]

Axcelis Technologies, Inc. Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited)  Three months ended March 31, 2025  2024 Revenue:  Product $ 182,824  $ 243,418 Services  9,739   8,954 Total revenue  192,563   252,372 Cost of revenue:  Product  94,500   127,912 Services  9,295   8,409 Total cost of revenue  103,795   136,321 Gross profit  88,768   116,051 Operating expenses:  Research and development  27,128   25,662 Sales and marketing  15,124   17,445 General and administrative  17,357   16,405 Total operating expenses  59,609   59,512 Income from operations  29,159   56,539 Other income (expense):  Interest income  5,601   5,516 Interest expense  (1,367)   (1,346) Other, net  (309)   (1,710) Total other income  3,925   2,460 Income before income taxes  33,084   58,999 Income tax provision  4,505   7,404 Net income $ 28,579  $ 51,595 Net income per share:  Basic $ 0.89  $ 1.58 Diluted $ 0.88  $ 1.57 Shares used in computing net income per share:  Basic weighted average shares of common stock  32,258   32,638 Diluted weighted average shares of common stock  32,335   32,926

Axcelis Technologies, Inc. Consolidated Balance Sheets (In thousands, except per share amounts) (Unaudited)   March 31,   December 31,  2025  2024 ASSETS Current assets:  Cash and cash equivalents  $ 183,957  $ 123,512 Short-term investments   403,102   447,831 Accounts receivable, net   164,949   203,149 Inventories, net   295,850   282,225 Prepaid income taxes   6,615   6,420 Prepaid expenses and other current assets   59,463   60,471 Total current assets   1,113,936   1,123,608 Property, plant and equipment, net   57,034   53,784 Operating lease assets   28,767   29,621 Finance lease assets, net   15,025   15,346 Long-term restricted cash   7,553   7,552 Deferred income taxes   69,334   68,277 Other assets   48,969   50,593 Total assets  $ 1,340,618  $ 1,348,781 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:  Accounts payable  $ 38,985  $ 46,928 Accrued compensation   14,796   25,536 Warranty   11,882   13,022 Deferred revenue   110,456   94,673 Current portion of finance lease obligation   1,370   1,345 Other current liabilities   22,881   26,018 Total current liabilities   200,370   207,522 Long-term finance lease obligation   41,958   42,329 Long-term deferred revenue   28,868   43,501 Other long-term liabilities   42,184   42,639 Total liabilities   313,380   335,991  Stockholders' equity:  Common stock, $0.001 par value, 75,000 shares authorized; 32,129 shares issued and outstanding at March 31, 2025; 32,365 shares issued and outstanding at December 31, 2024   32   32 Additional paid-in capital   547,020   548,654 Retained earnings   485,673   470,318 Accumulated other comprehensive loss   (5,487)   (6,214) Total stockholders' equity   1,027,238   1,012,790 Total liabilities and stockholders' equity  $ 1,340,618  $ 1,348,781

Axcelis Technologies, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)   Three months ended March 31, 2025   2024 Cash flows from operating activities  Net income $ 28,579  $ 51,595 Adjustments to reconcile net income to net cash provided by operating activities:  Depreciation and amortization  4,309   3,775 Stock-based compensation expense  4,903   4,690 Other  (1,682)   3,143 Change in operating assets and liabilities, net  3,686   (20,980) Net cash provided by operating activities  39,795   42,223  Cash flows from investing activities  Expenditures for property, plant and equipment and capitalized software  (4,960)   (1,620) Other changes in investing activities, net  45,429   (54,071) Net cash provided by (used in) investing activities  40,469   (55,691)  Cash flows from financing activities  Repurchase of common stock  (18,178)   (14,999) Other changes from financing activities, net  (1,932)   (3,056) Net cash used in financing activities  (20,110)   (18,055)  Effect of exchange rate changes on cash and cash equivalents  292   (1,813) Net increase (decrease) in cash, cash equivalents and restricted cash  60,446   (33,336)  Cash, cash equivalents and restricted cash at beginning of period  131,064   173,951 Cash, cash equivalents and restricted cash at end of period $ 191,510  $ 140,615

Notes on Our Non-GAAP Financial Information

Management uses non-GAAP gross profit, gross margin, operating income, operating margin, income tax provision, net income, diluted earnings per share, and Adjusted EBITDA to evaluate the Company's operating and financial performance and for planning purposes. Axcelis believes these measures enhance an overall understanding of its performance and investors' ability to review the Company's business from the same perspective as the Company's management.

There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies, and may exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP.

Totals presented may not sum and percentages may not recalculate using figures presented due to rounding.

Axcelis Technologies, Inc.  Schedule Reconciling Selected Non-GAAP Financial Measures (In thousands, except per share amounts and percentages)  Three months ended March 31, 2025   2024 GAAP gross profit $ 88,768  $ 116,051 Restructuring1  226   — Stock-based compensation  353   290 Non-GAAP gross profit $ 89,347  $ 116,341 Non-GAAP gross margin  46.4 %   46.1 %  Operating expenses $ 59,609  $ 59,512 Bad debt expense   —   459 Restructuring   (923)   — Stock-based compensation  (4,550)   (4,400) Non-GAAP operating expenses $ 54,136  $ 55,571  GAAP operating income $ 29,159  $ 56,539 Bad debt expense  —   (459) Restructuring1  1,149   — Stock-based compensation  4,903   4,690 Non-GAAP operating income $ 35,211  $ 60,770 Non-GAAP operating margin  18.3 %   24.1 %  GAAP income tax provision $ 4,505  $ 7,404 Income tax effect of non-GAAP adjustments2  847   592 Non-GAAP income tax provision $ 5,352  $ 7,996  GAAP net income $ 28,579  $ 51,595 Bad debt expense  —   (459) Restructuring1  1,149   — Stock-based compensation  4,903   4,690 Income tax effect of non-GAAP adjustments2  (847)   (592) Non-GAAP net income $ 33,784  $ 55,234  GAAP diluted EPS $ 0.88  $ 1.57 Bad debt expense  —   (0.01) Restructuring1  0.04   — Stock-based compensation  0.15   0.14 Income tax effect of non-GAAP adjustments2  (0.03)   (0.02) Non-GAAP diluted EPS $ 1.04  $ 1.68

Note 1: Restructuring and other costs primarily related to early retirement programs and severance costs, due to global cost-saving initiatives. Note 2: Impact of taxes from non-GAAP adjustments, uses adjusted tax rate of 14%.

Axcelis Technologies, Inc.

Reconciliation of Net Income to Adjusted EBITDA

(In thousands, except percentages) Three months ended March 31, 2025   2024 Net income $ 28,579  $ 51,595 Other (income)/expense  (3,925)   (2,460) Income tax provision  4,505   7,404 Depreciation & amortization  4,309   3,775 Subtotal  33,468   60,314 Bad debt expense  —   (459) Restructuring1  1,149   — Stock-based compensation  4,903   4,690 Adjusted EBITDA $ 39,520  $ 64,545 Adjusted EBITDA margin  20.5 %   25.6 %

Note 1: Restructuring and other costs primarily related to early retirement programs and severance costs, due to global cost-saving initiatives.

Axcelis Technologies, Inc.  Second Quarter Outlook GAAP to Non-GAAP Diluted Earnings Per Share  Three months ended 
June 30, 2025 GAAP diluted EPS $ 0.57 Stock-based compensation  0.18 Income tax effect of non-GAAP adjustments1  (0.03) Non-GAAP diluted EPS $ 0.73

Note 1: Impact of taxes from non-GAAP adjustments, uses adjusted tax rate of 14%. Figures may not sum due to rounding.Cision

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SOURCE Axcelis Technologies, Inc.

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