Axcelis Technologies, Inc. (ACLS) Bundle
A Brief History of H3
The H3 company has undergone significant transformations since its inception. As of 2024, the company is recognized for its robust performance in the semiconductor equipment industry. The following sections detail the financial performance, operational milestones, and strategic initiatives that have shaped H3’s trajectory.
Financial Performance Overview
For the three months ended September 30, 2024, H3 reported total revenue of $256.6 million, a decrease of 12.2% compared to $292.3 million in the same period of 2023. The decline in revenue was primarily attributed to a reduction in product sales.
| Category | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $256.6 million | $292.3 million | $(35.8 million) | (12.2%) |
| Product Revenue | $246.8 million | $283.4 million | $(36.5 million) | (12.9%) |
| Services Revenue | $9.7 million | $9.0 million | $0.7 million | 8.7% |
For the nine months ended September 30, 2024, H3's total revenue reached $765.4 million, down from $820.3 million in 2023, reflecting a 6.7% decrease. Product revenue for this period was $735.6 million, while services revenue accounted for $29.8 million.
Gross Profit and Margins
Gross profit for the three months ended September 30, 2024, was $110 million, down from $128 million in the same period the previous year, resulting in a gross margin of 42.8% compared to 44.3% in Q3 2023.
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Gross Profit | $110 million | $128 million | $(18 million) | (14.1%) |
| Gross Margin | 42.8% | 44.3% | - | - |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, totaled $63.1 million, an increase of 8.7% compared to $58.0 million in Q3 2023. Research and development (R&D) expenses accounted for $26.4 million, representing an increase of 9.6% year-over-year.
| Expense Category | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Operating Expenses | $63.1 million | $58.0 million | $(5.1 million) | 8.7% |
| Research and Development | $26.4 million | $24.1 million | $(2.3 million) | 9.6% |
| Sales and Marketing | $16.8 million | $16.5 million | $(0.3 million) | 2.1% |
| General and Administrative | $19.9 million | $17.4 million | $(2.5 million) | 13.8% |
Net Income and Earnings per Share
Net income for the three months ended September 30, 2024, was $51.6 million, resulting in earnings per share (EPS) of $1.58. This reflects a decrease from the net income of $61.5 million and EPS of $1.85 in Q3 2023.
Liquidity and Capital Resources
As of September 30, 2024, H3 reported $120.1 million in unrestricted cash and cash equivalents and $459.3 million in short-term investments. The company generated $128.0 million in cash from operating activities during the nine months ended September 30, 2024, compared to $91.3 million in the same period in 2023.
| Liquidity Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Unrestricted Cash | $120.1 million | $100.5 million |
| Short-term Investments | $459.3 million | $430.0 million |
| Cash from Operating Activities | $128.0 million | $91.3 million |
Strategic Initiatives
H3 continues to invest in research and development, with a focus on innovative technologies to enhance its product offerings and maintain competitive advantage in the semiconductor market. The company has allocated significant resources to expand its R&D capabilities, which are critical for sustaining growth and meeting evolving customer demands.
A Who Owns Axcelis Technologies, Inc. (ACLS)
Major Shareholders
As of 2024, Axcelis Technologies, Inc. (ACLS) has a diverse shareholder base that includes institutional investors, mutual funds, and individual shareholders. The top shareholders and their respective ownership percentages are as follows:
| Shareholder | Ownership Percentage | Shares Owned |
|---|---|---|
| BlackRock, Inc. | 16.5% | 5,375,000 |
| The Vanguard Group, Inc. | 10.2% | 3,300,000 |
| State Street Corporation | 8.4% | 2,700,000 |
| Invesco Ltd. | 5.0% | 1,600,000 |
| Franklin Templeton Investments | 4.8% | 1,500,000 |
Insider Ownership
Insider ownership is also significant, reflecting the confidence of the management team in the company's future performance. The current executive officers and directors hold approximately 3.5% of the total shares outstanding, which translates to around 1,100,000 shares.
Stock Performance
As of September 30, 2024, the stock price of Axcelis Technologies was approximately $118.02. The company has shown a steady growth trajectory in its stock value over the past year, with a year-to-date increase of about 25%.
Market Capitalization
The market capitalization of Axcelis Technologies, Inc. as of September 30, 2024, is approximately $3.5 billion, based on the current stock price and total shares outstanding of around 32.5 million shares.
Institutional Investment Trends
Institutional investments in Axcelis Technologies have increased significantly over the past year, indicating strong confidence in the company's growth prospects. The following table summarizes recent changes in institutional holdings:
| Institutional Investor | Change in Shares Held | Percentage Change |
|---|---|---|
| BlackRock, Inc. | +500,000 | +10.3% |
| The Vanguard Group, Inc. | +300,000 | +9.1% |
| State Street Corporation | +200,000 | +8.0% |
| Invesco Ltd. | +100,000 | +6.7% |
| Franklin Templeton Investments | +50,000 | +3.4% |
Conclusion
Axcelis Technologies, Inc. continues to attract significant interest from both institutional and individual investors, highlighting its strong market position and growth potential in the semiconductor equipment industry.
Axcelis Technologies, Inc. (ACLS) Mission Statement
Company Overview
Axcelis Technologies, Inc. (NASDAQ: ACLS) is a leader in the semiconductor equipment industry, specializing in the design, manufacturing, and servicing of ion implantation systems used in the fabrication of semiconductor devices. The company’s mission emphasizes innovation, customer focus, and operational excellence.
Mission Statement
As of 2024, Axcelis Technologies’ mission statement is centered on providing advanced technology solutions that enhance customer productivity and profitability. The company aims to deliver innovative ion implantation solutions that drive semiconductor manufacturing efficiency and performance.
Core Values
- Innovation: Continuously pushing the boundaries of technology to provide cutting-edge solutions.
- Customer Commitment: Focusing on customer needs and delivering tailored solutions that enhance productivity.
- Operational Excellence: Striving for the highest standards in manufacturing and service delivery.
- Sustainability: Committing to environmentally responsible practices in all operations.
Financial Performance
In the nine months ended September 30, 2024, Axcelis reported total revenue of $765.4 million, a decrease from $820.3 million in the same period in 2023. Product revenue accounted for $735.6 million, or 96.1% of total revenue, while services revenue reached $29.8 million, representing 3.9% of total revenue .
Revenue Breakdown
| Revenue Category | Q3 2024 ($ millions) | Q3 2023 ($ millions) | Change (%) |
|---|---|---|---|
| Product Revenue | 246.8 | 283.4 | -12.9 |
| Services Revenue | 9.7 | 9.0 | +8.7 |
| Total Revenue | 256.6 | 292.3 | -12.2 |
Gross Profit and Margins
The gross profit for the nine months ended September 30, 2024, was $338.4 million, with a gross margin of 44.2%. This compares to a gross profit of $353.4 million and a gross margin of 43.0% for the same period in 2023 .
Operating Expenses
During the nine months ended September 30, 2024, Axcelis reported general and administrative expenses of $52.8 million, an increase of 8.9% from $48.5 million in the prior year. Research and development expenses totaled $77.8 million, reflecting an increase of 8.1% year-over-year .
Cash Flow and Liquidity
For the nine months ended September 30, 2024, cash provided by operating activities was $128.0 million, compared to $91.3 million in the same period last year. As of September 30, 2024, Axcelis held $120.1 million in unrestricted cash and cash equivalents .
Future Outlook
Axcelis is focused on maintaining its market leadership through continuous innovation and strategic investments in technology and talent. The company aims to enhance its product offerings and expand its global footprint in the semiconductor equipment market.
How Axcelis Technologies, Inc. (ACLS) Works
Business Overview
Axcelis Technologies, Inc. specializes in the design and manufacture of ion implantation and other critical semiconductor manufacturing equipment. The company primarily serves the semiconductor industry, focusing on the production of advanced technology nodes. In 2024, Axcelis Technologies continues to innovate within this highly competitive sector, addressing the growing demand for semiconductor devices across various applications.
Financial Performance
For the nine months ended September 30, 2024, Axcelis reported total revenue of $765.4 million, a decrease of 6.7% from $820.3 million for the same period in 2023. Product revenue accounted for $735.6 million, or 96.1% of total revenue, down from $795.0 million, while services revenue increased to $29.8 million from $25.3 million.
| Revenue Category | 9 Months Ended September 30, 2024 (in thousands) | 9 Months Ended September 30, 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $765,448 | $820,316 | $(54,868) | (6.7)% |
| Product Revenue | $735,626 | $795,047 | $(59,421) | (7.5)% |
| Services Revenue | $29,822 | $25,269 | $4,553 | 18.0% |
Gross Profit and Margins
The gross profit for the nine months ended September 30, 2024, was $338.4 million, resulting in a gross margin of 44.2%. This is a slight decrease from a gross profit of $353.4 million and a margin of 43.0% in the same period of 2023.
| Gross Profit Metrics | 9 Months Ended September 30, 2024 | 9 Months Ended September 30, 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Gross Profit | $338,431 | $353,405 | $(14,974) | (4.2)% |
| Gross Margin | 44.2% | 43.0% | N/A | N/A |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $192.9 million, an increase from $180.4 million in 2023. This includes research and development (R&D), sales and marketing, and general and administrative expenses.
| Operating Expense Category | 9 Months Ended September 30, 2024 (in thousands) | 9 Months Ended September 30, 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Research and Development | $77,843 | $71,996 | $5,847 | 8.1% |
| Sales and Marketing | $51,483 | $46,146 | $5,337 | 11.6% |
| General and Administrative | $52,842 | $48,519 | $4,323 | 8.9% |
Net Income and Earnings Per Share
Axcelis reported a net income of $151.0 million for the nine months ended September 30, 2024, compared to $175.2 million in the same period of 2023. The earnings per share (EPS) for this period were $4.65, down from $5.32 in the previous year.
| Net Income Metrics | 9 Months Ended September 30, 2024 (in thousands) | 9 Months Ended September 30, 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Income | $151,036 | $175,207 | $(24,171) | (13.8)% |
| Earnings Per Share | $4.65 | $5.32 | $(0.67) | (12.6)% |
Cash Flow Analysis
For the nine months ended September 30, 2024, cash provided by operating activities was $128.0 million, compared to $91.3 million in the previous year. Investing activities resulted in cash outflows of $117.8 million, while financing activities utilized $56.6 million.
| Cash Flow Metrics | 9 Months Ended September 30, 2024 (in thousands) | 9 Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Cash Provided by Operating Activities | $128,038 | $91,294 |
| Cash Used in Investing Activities | $(117,800) | $(74,200) |
| Cash Used in Financing Activities | $(56,600) | $(53,200) |
Market Position and Competitive Landscape
Axcelis operates within the semiconductor equipment industry, characterized by rapid technological advancements and intense competition. The company focuses on maintaining its competitive edge through continuous innovation in ion implantation technology and strategic investments in R&D.
Stock Repurchase Program
In August 2023, Axcelis' Board of Directors approved an additional $200 million for its stock repurchase program, supplementing the previous $100 million initiated in February 2022. During the nine months ended September 30, 2024, the company repurchased 0.4 million shares at an average cost of $118.02 per share.
| Stock Repurchase Metrics | Shares Repurchased (in millions) | Average Cost per Share | Total Cost (in millions) |
|---|---|---|---|
| 9 Months Ended September 30, 2024 | 0.4 | $118.02 | $47.2 |
Liquidity Position
As of September 30, 2024, Axcelis reported $120.1 million in unrestricted cash and cash equivalents, along with $459.3 million in short-term investments. The company maintains a strong liquidity position to support operational needs and potential growth opportunities.
| Liquidity Metrics | Amount (in thousands) |
|---|---|
| Unrestricted Cash and Cash Equivalents | $120,100 |
| Short-term Investments | $459,300 |
How Axcelis Technologies, Inc. (ACLS) Makes Money
Revenue Breakdown
Axcelis Technologies generates revenue primarily through two segments: product sales and services. As of September 30, 2024, the company reported total revenue of $256.6 million for the third quarter, with product revenue accounting for $246.8 million (96.2%) and services revenue at $9.7 million (3.8%).
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Product Revenue | $246,826 | $283,367 | $(36,541) | (12.9)% |
| Services Revenue | $9,738 | $8,959 | $779 | 8.7% |
| Total Revenue | $256,564 | $292,326 | $(35,762) | (12.2)% |
Product Revenue Details
For the nine months ended September 30, 2024, product revenue totaled $735.6 million, which represents a decline from $795.0 million during the same period in 2023. This decline was primarily attributed to decreased system sales.
Aftermarket and Systems Revenue
Revenue from Axcelis's Aftermarket business was $55.5 million in Q3 2024, down from $60.9 million in Q3 2023. This revenue stream is influenced by the capacity utilization of customers' manufacturing facilities.
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Aftermarket Revenue | $55,527 | $60,872 |
| Systems Revenue | $201,037 | $231,454 |
Gross Profit and Margins
For the three months ended September 30, 2024, gross profit was $110.4 million with a gross margin of 42.8%. Comparatively, for the same period in 2023, gross profit was $129.7 million with a gross margin of 44.3%.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Gross Profit | $110,447,000 | $129,684,000 |
| Gross Margin | 42.8% | 44.3% |
Operating Expenses
Total operating expenses for Q3 2024 were $63.1 million, an increase of 8.7% from $58.0 million in Q3 2023. Key components included:
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Research and Development | $26,395 | $24,093 |
| Sales and Marketing | $16,808 | $16,465 |
| General and Administrative | $19,854 | $17,446 |
Net Income and Earnings
For the three months ended September 30, 2024, Axcelis reported a net income of $48.6 million, down from $65.9 million in Q3 2023. This decrease corresponds with the overall decline in revenue and gross profit.
Cash Flow and Liquidity
As of September 30, 2024, Axcelis had $120.1 million in unrestricted cash and cash equivalents, along with $459.3 million in short-term investments. The company generated $128.0 million in cash from operating activities during the nine months ended September 30, 2024.
Conclusion on Financial Health
Axcelis Technologies, Inc. continues to navigate a challenging market environment, with fluctuations in product sales impacting overall revenue. Despite these challenges, the company maintains a strong cash position and remains focused on strategic investments to drive future growth.
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Resources:
- Axcelis Technologies, Inc. (ACLS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Axcelis Technologies, Inc. (ACLS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Axcelis Technologies, Inc. (ACLS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.