Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| Q4 earnings per share of $2.15 was driven by higher than expected revenues and gross margin, as well as lower overall operating expenses |
| And finally, Axcelis has strong long-term customer relationships and a fundamental culture desire to win by making our customers successful |
| So, as you're aware, our install base has grown really rapidly, particularly in terms of Purion and that has a very strong platform |
| Looking at our geographic mix, China continued to provide strength, especially in the power device segment |
| So we have good confidence based on the market trends and based on our customers and what they're saying and based on the Axcelis position and the Purion product family right now |
| In 2024 the systems revenue profile will be very similar to 2023, with power continuing to be an area of strength for Axcelis |
| There's a lot of really good long-term trends for this industry right now that make 2025 and into 2026 look like they could be very good years |
| We expect, as we've said, that to really start off in the second half of this year and gain significant momentum as we go into 2025 |
| This uniquely positions Axcelis to benefit from high growth in the mature process technology markets |
| As a result, we have seen a significant increase in the adoption and great success with the Purion H200 and Purion XE silicon carbide systems |
| We are considered the technology leader and the supplier of choice, providing the best product family and manufacturing capabilities |
| This, combined with continued strength in the power segment is expected to drive Axcelis to our $1.3 billion revenue model in 2025 |
| Driving into 2025, where we expect it to be a very good year for DRAM |
| Ultimately, this results in shipping evaluation systems to customers and joint development engagements that help us grow our market share |
| So we're seeing strong bookings and continued strong quote activity from China |
| When I look at the margins going back to '22 to '23, you had really nice revenue growth, very de minimis margin expansion, and yet you're projecting pretty healthy margin expansion over the next year |
| In Japan we have seen initial success in the power market due to the strength of the Purion Power Series and we are engaged with multiple Japanese customers in additional market segments |
| Douglas Lawson Yes, and Tom, on that point we had very, as you noted in the call, we had very strong bookings in the fourth quarter of this year relative to our systems revenue and our backlog again we maintain that backlog above $1.2 billion for the full year |
| We do have solid business in power, especially in China |
| The implant intensive power device segment enabled Axcelis to achieve 23% year-over-year revenue growth during a significant industry downturn |
| Our strong systems backlog and the expected recovery of these markets sets us up to achieve our $1.3 billion revenue target in 2025 |
| We are expecting a good year across all markets in 2025 |
| We are pleased with our financial results for the fourth quarter and for the full year 2023, especially with the 23% year-over-year revenue growth during this industry downturn |
| As the mature markets grow in the second half, then we'll benefit from the increased TAM there as well |
| Power is expected to remain solid throughout the year with the mature markets and memory recovering in the second half |
| The team has done a fantastic job of putting in place some initiatives here to, one, lower our cost of goods sold for the systems and try to drive some greater efficiency without necessarily having to raise prices for some of these products, given the competitive environment |
| Looking at our fourth quarter, revenue and earnings per share finished above our revised guidance due to solid execution and continued demand for Purion, especially in the silicon carbide power market |
| Axcelis achieved record revenue of $1.13 billion in 2023 and is targeting revenue of $1.3 billion in 2025 |
| Axcelis delivered record revenue for the fourth quarter of $310.3 million and $1.13 billion for the full year 2023 |
| Despite softness in the general mature and memory markets, bookings and quoting activity for systems in the power segment remained solid and continued to support our revenue expectations |
| Statement |
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| The last year's number seems to be a little bit below that |
| The Chinese EV market getting lots of press in terms of it is slowing its growth rate |
| I think it's the general mature has softened significantly |
| NAND is not expected to recover until 2025, when DRAM and NAND are forecast to have a strong year |
| I'm just curious why your first half will be weaker given what Wolfspeed was indicating would appear to be very strong design, and I think 75% of them are from automotive |
| But now they've said now they're going to look into mature node legacy chip production, because as China's meaningfully increased production of mature chips, it's leading to a possible competitive situation for U.S |
| I guess the first one, I just want to put a finer point, Russell, it sounds like to a previous question, when you preannounced positively three weeks ago that you had insight that Q1 would be weaker |
| So, I would say that it's a very difficult technology to replicate |
| Just a housekeeping issue |
| One thing I'd say that does insulate us a little bit is that these are highly complex technical products and the software is a huge component of it |
| As we get into the second half, we expect the mature markets to recover really tied to the economy more than anything, as consumer, automotive and industrial start to return |
| I just want to make sure, is that the case that you knew that sort of the Q1 one would be off by 15% or did you see any push outs over the last three weeks? And then I have a follow up |
| Absent, normal salary appreciation and other types of cost changes that would flow through our process, largely speaking, you're going to see that number as a percentage of sales come down as the volumes increase over the back half of the year |
| And then on the big DRAM memory recovery in 2025, we've seen that every leading memory manufacturer significantly reduce production capacity and utilization of the equipment on hand |
| The increase as a percentage of revenue is a result of the lower sales volume in the first quarter and the incremental investments we've made to support the higher revenue loads we anticipate in the future |
| But the two people in Korea lost $15 billion making memory in 2023 |
| The average utilization for fabs in China is below 50% |
| Throughout the rest of the world it slowed a little bit over the course of the last quarter, but as you comment, many of our customers are talking about that picking back up as the automakers start to settle on their exact product plans |
| People have been trying without too much success to date |
| And so, we see a lot of new customers in addition to the larger silicon carbide customers in China, and so there's quite a bit of activity despite your comment on lower utilization |
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