AXCELIS TECHNOLOGIES INC SEC 10-Q Report

Axcelis Technologies Inc., a leading provider of innovative, high-productivity solutions for the semiconductor industry, has released its Form 10-Q report for the second quarter of 2025. The report highlights the company's financial performance and operational activities during the period, providing insights into its revenue streams, profitability, and strategic initiatives.

Financial Highlights

• Total Revenue: $194.5 million, a decrease of 24.2% compared to the same period in 2024, primarily due to a decline in system sales.
• Gross Profit: $87.3 million, representing a gross margin of 44.9%, up from 43.9% in the prior year period, driven by improved margins on Purion systems and a favorable mix of parts and upgrades.
• Income from Operations: $29.0 million, down from $52.8 million in the prior year period, impacted by lower revenue.
• Net Income: $31.4 million, a decrease from $50.9 million in the prior year period, primarily due to decreased revenue and increased operating expenses.
• Net Income Per Share (Basic): $0.99, compared to $1.56 in the prior year period.
• Net Income Per Share (Diluted): $0.98, compared to $1.55 in the prior year period.

Business Highlights

• Revenue Segments: The company divides its revenue into two main categories: Systems and Aftermarket. For the three months ended June 30, 2025, Systems revenue was $133.2 million, and Aftermarket revenue was $61.3 million.
• Geographical Performance: Revenue is allocated to geographic markets based on the location of product shipments and service performance. The Asia Pacific region accounted for the majority of revenue at $145.6 million, followed by North America at $34.2 million, and Europe at $14.7 million.
• Customer Segments: The mature process segment represented 92% of shipped systems revenue, with power device shipments comprising 47% of total systems revenue. The general mature segment, including image sensor applications, represented 45% of systems revenue.
• Operational Challenges: The company experienced a decrease in system sales, which impacted product revenue. This was attributed to customers moderating the pace of investments into mature process node technologies.
• Future Outlook: The company is monitoring the geopolitical environment, particularly trade and tariffs, which have not yet had a meaningful impact on financial results. The company is also considering both organic and inorganic opportunities to drive future growth.
• Research and Development: The company increased its research and development expenses by 5.0% for the three months ended June 30, 2025, focusing on developing innovative technology and enhancing existing products.
• Sales and Marketing: Sales and marketing expenses decreased by 12.9% for the three months ended June 30, 2025, primarily due to reduced expatriate expenses and tool evaluation costs.
• General and Administrative: General and administrative expenses decreased slightly by 1.6% for the three months ended June 30, 2025, due to lower project and consulting expenses and travel costs.

SEC Filing: AXCELIS TECHNOLOGIES INC [ ACLS ] - 10-Q - Aug. 05, 2025