Axcelis Technologies ACLS reported first-quarter 2024 non-GAAP earnings per share (EPS) of $1.57, which surpassed the Zacks Consensus Estimate of $1.26. The bottom line increased 9.8% year over year.
Revenues in the quarter totaled $252.4 million, beating the Zacks Consensus Estimate by 4%. Healthy shipments to China, coupled with impetus in the implant-intensive power device segment, notably silicon carbide, are driving top-line growth. The company is also making strides in capturing new global customers and expanding its presence with existing ones, powered by its cutting-edge Purion Power Series product line.
However, total revenues declined 0.7% on year-over-year basis.
Total product revenues (contributed 100% to total revenues) in the reported quarter amounted to $243.4 million, down 1.1% year over year. Total service revenues (3.5%) amounted to $8.9 million, up 11.7%.
System revenue generated $195.4 million in the reported quarter. Of first-quarter 2024 shipped system revenues, 99% came from mature process technology. The aggregate power device segment accounted for 55% of first-quarter shipped system revenues.
Of first-quarter power shipment revenues, PurionPower Series Silicon Carbide systems contributed 76%.
Customer Solutions & Innovation (CS&I) revenues amounted to $56.9 million in the quarter under discussion. CS&I unit includes contracts, time & material, repairs, spares & consumables, upgrades and used tools.
Axcelis Technologies, Inc. Price, Consensus and EPS Surprise 
Axcelis Technologies, Inc. price-consensus-eps-surprise-chart | Axcelis Technologies, Inc. Quote
Other Details
Non-GAAP gross margin was 46% compared with 40.9% a year ago.
Operating profit summed up to $56.5 million, up 10% year over year.
Total operating expenses for the period were $59.5 million, up 13% year over year.
Balance Sheet
As of Mar 31, 2024, ACLS had total cash, cash equivalents and short-term investments of $530.2 million compared with $506.1 million as of Dec 31, 2023.
Other long-term liabilities as of Mar 31, 2024, were $41.2 million compared with $42 million as of Dec 31, 2023.
Outlook
For the second quarter of 2024, ACLS estimates revenues of approximately $245 million and earnings per share of $1.30. Gross margin is projected to be 43.5% while operating profit is anticipated to be $47 million. Operating profit is expected to be $47 million.
Zacks Rank
ACLS currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Upcoming Releases
Arista Networks, Inc. ANET is slated to announce first-quarter 2024 results on May 7, after the market close. The stock, sporting a Zacks Rank #1 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 17.5% and delivered an earnings surprise of 13.3%, on average, in the trailing four quarters.
Airgain, Inc. AIRG is slated to report first-quarter 2024 results on May 8, after the closing bell. It currently carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 35%.
Headquartered in San Diego, CA, Airgain offers integrated wireless solutions in the form of antenna products. These products are equipped to solve critical connectivity needs in both the design process and the operating environment across the enterprise, automotive and consumer markets. Ideal for original equipment and design manufacturers, vertical markets, chipset vendors, service providers, value-added resellers and software developers worldwide, the customizable antennas from Airgain serve both indoor and outdoor connectivity issues.
Turtle Beach Corporation HEAR is slated to report first-quarter 2024 results on May 7, after the closing bell. It develops and markets gaming headset solutions for various platforms, including video game and entertainment consoles, handheld consoles, personal computers, tablets and mobile devices under the Turtle Beach brand. It has a Zacks Rank #2.
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Axcelis Technologies, Inc. (ACLS) : Free Stock Analysis Report
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